Climate Change

Funding Inclusive Green Transition through Greenhouse Gas Pricing

Submitted by Elin Lokrantz on 4 May 2020

2015 was a special year. During a few months the political
stars aligned and made it possible for the international
community to agree on the Agenda 2030
for Sustainable Development and the Paris Agreement
to limit global warming. Now the signatories need to
find ways to implement these agreements, which not
only imply a deep decarbonization of the economy but
must also meet the Sustainable Development Goals.
In this article we discuss the importance of pricing
greenhouse gas (GHG) emissions2 to make this happen.

Carbon Pricing, Climate Change, Policy Design

Dynamics of Connectedness in Clean Energy Stocks

Submitted by César Salazar on 30 July 2020
EfD Authors:

This paper examines the dynamics of connectedness among the realized volatility indices of 16 clean energy stocks belonging to the SPGCE and the implied volatility indices of two important stock markets—the S&P 500 and the STOXX50—and two commodities markets—the crude oil and gold markets. The empirical results show a unidirectional connectedness from the implied volatility indices to the clean energy stocks. Our analysis further reveals similar volatility connectedness behaviors among companies in the same energy production subsector.

Climate Change, Energy

Network analysis: a novel approach to identify PM2.5 hotspots and their spatio-temporal impact on air quality in Santiago de Chile

Submitted by César Salazar on 30 July 2020
EfD Authors:

Air pollution, particularly PM2.5 particulate matter, is a significant issue in Santiago, the capital of Chile. Santiago’s pollution problem is exacerbated by its unique geographic location nestled against the Andes mountain range in the central valley of Chile. This paper uses network models that were developed primarily to analyze systemic risk in the financial system to identify those locations in the city that are most important for explaining PM2.5 levels.

Air Quality, Climate Change, Urban

Environmental policy instruments and corruption

Submitted by Elin Lokrantz on 27 July 2020

In this paper we discuss the choice of taxation or regulation of environmental externalities. The subject might appear to be a well-trodden path, but we believe we have a new angle on this well-established question. We think we are being quite realistic when we assume that corrupt practices lurk behind every corner, threatening to derail the good intents of any regulator.

Carbon Pricing, Climate Change