scholarly journals Net Economic Benefits from Shifting Consumption, Labor Elasticity, and Productivity Gains During an Accelerated Renewable Energy Transition in China

2020 ◽  
Author(s):  
Yidan Chen ◽  
Jiang Lin ◽  
David Roland-Holst ◽  
Can Wang
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Labor Supply ◽  
Energy Transition ◽  
Consumption Patterns ◽  
Energy Costs ◽  
Job Growth ◽  
Multiplier Effects ◽  
Elastic Labor Supply ◽  
Business As Usual

Abstract China is the world’s largest greenhouse gas (GHG) emitter, but declining wind and solar energy costs present opportunities to transform its electric power sector. In 2017, China launched a national emission trading scheme (ETS). Evidence to date suggests that the ETS mitigates CO2 emissions and promotes renewable energy deployment but constrains economic growth. These studies, however, do not account comprehensively for economic impacts. Ours is the first to account for three multiplier effects—shifting consumption patterns, job growth with elastic labor supply, and higher total factor productivity (TFP)—when modeling accelerated renewable electricity growth with the ETS in China. Results from a detailed economic forecasting model show low renewable energy costs interacting with the ETS to slash GHG emissions while directly stimulating incremental net positive economic growth by 2030, compared with a business-as-usual scenario that assumes slower renewable cost reductions and no ETS. Accounting for the multiplier effects reveals larger potential benefits, including up to 15.6% of additional GDP growth (over business as usual) by 2030 when shifting consumption patterns, job growth with elastic labor supply, and higher TFP are all considered. These results suggest that China should accelerate its clean energy transition, not only for the air-quality and climate benefits, but also for the broad and positive impact on innovation, employment, and economic growth.

scholarly journals Does Globalization Moderate the Effect of Economic Complexity on CO2 Emissions? Evidence From the Top 10 Energy Transition Economies

2021 ◽  
Vol 9 ◽  
Author(s):  
Kai He ◽  
Muhammad Ramzan ◽  
Abraham Ayobamiji Awosusi ◽  
Zahoor Ahmed ◽  
Mahmood Ahmad ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Transition Economies ◽  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Energy Transition ◽  
Cross Sectional ◽  
Economic Complexity ◽  
Long Run ◽  
The Government

The association between economic complexity (sophisticated economic structure) and carbon emissions has major implications for environmental sustainability. In addition, globalization can be an important tool for attaining environmental sustainability and it may also moderate the association between economic complexity and carbon emissions. Thus, this research examines the effects of economic complexity, economic growth, renewable energy, and globalization on CO2 emissions in the top 10 energy transition economies where renewable energy and globalization have greatly increased over the last 3 decades. Furthermore, this study also evaluates the joint effect of globalization and economic complexity on carbon emissions. Keeping in view the presence of slope heterogeneity and cross-sectional dependence in the data, this research utilized second-generation unit root tests (CIPS and CADF), Westerlund cointegration approach, and CS-ARDL and CCEMG long-run estimators over the period of 1990–2018. The results affirmed the presence of cointegration among the considered variable. Long-run findings revealed that globalization, renewable energy, and economic complexity decrease carbon emissions. Conversely, economic growth increases carbon emissions. Moreover, the joint impact of economic complexity and globalization stimulates environmental sustainability. Based on these findings, the government of these groups of economies should continue to expand the usage of renewable energy. They should also promote interaction with the rest of the world by adopting the policy of opening up.

scholarly journals Does Renewable Energy Consumption Successfully Promote the Green Transformation of China’s Industry?

Energies ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 229
Author(s):  
Dongri Han ◽  
Tuochen Li ◽  
Shaosong Feng ◽  
Ziyi Shi
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Threshold Model ◽  
Energy Transition ◽  
Threshold Effect ◽  
Renewable Energy Consumption ◽  
Regional Energy ◽  
Economic Output ◽  
The Impact

The trade-off between economic growth and ecological improvement has always become an important and difficult issue for many countries, especially for developing countries. Due to a long-term extensive economic growth pattern, the regional resource allocation deviates from the optimal, especially the existence of energy misallocation, which hinders the maximization of economic output. Therefore, considering the characteristics and heterogeneity of resource endowments in different regions and increasing renewable energy consumption, that is, promoting energy transition, is it capable of sustainable development under China’s actual conditions? The exploration of the issue is a core step in the research of the impact of renewable energy on industrial green transformation. Based on the panel data of 30 regions in China from 2009 to 2016, this paper constructs a threshold model from the perspective of regional energy misallocation and empirically tests the nonlinear mechanism of renewable energy consumption to promote industrial green transformation. The results show that China’s energy allocation efficiency is low, there is a certain misallocation phenomenon, and the improvement effect in recent years is not satisfactory. Further, the relationship between renewable energy consumption and industrial green transformation is not a simple linear relationship, but a double threshold effect due to regional energy misallocation. In areas with severe energy misallocation, renewable energy consumption does not have a significant boost to industrial green transformation. Finally, this paper proposes the policy enlightenment of promoting industrial green transformation from the aspects of performance evaluation, market reform, and factor flow.

scholarly journals Energy Transition Scenarios and Their Economic Impacts in the Extended Neoclassical Model of Economic Growth

2019 ◽  
Vol 11 (13) ◽  
pp. 3644 ◽  
Author(s):  
Lukáš Režný ◽  
Vladimír Bureš
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
System Dynamics ◽  
Growth Model ◽  
Fossil Fuels ◽  
Energy Transition ◽  
Energy Technology ◽  
Neoclassical Growth Model ◽  
Neoclassical Growth

Introduction: Energy return on energy invested (EROEI) of fossil fuels has been declining sharply, while modern renewable energy sources generally have even lower EROEI than fossil fuels. It has been repeatedly proven that economic growth expressed in the form of growth of real Gross Domestic Product (GDP) is closely related to intensified energy consumption and escalated usage of natural resources in general. This problem remains scarcely explored in pure economic modelling. Objectives: This study presents a novel model titled Energy Extended Neoclassical Growth Model (EENGM), which focuses on the consequences of declining quantity and quality of extractable fossil fuels and lower quality of the succeeding renewable energy technology for economic growth. Method: The Neoclassical growth model is translated into a system dynamics format and is extended by important feedback mechanisms, which are identified as important from the literature and mostly missing from the analyzed system dynamics models with a similar scope. Two scenarios assess the EENGM performance: business as usual (BAU) and the sustainability strategy (SUS). Results: Sensitivity analysis is performed for the Energy Return on Energy Invested (EROEI) parameter and results in the investment share in GDP varying between 27 and 40%, while the energy sector investment largely displaces investment in other economic sectors. The EENGM is associated with new behavior whereby the underperforming energy sector limits GDP growth and seizes most of the available investment. The adoption of the SUS strategy causes 28% lower cumulative fossil fuel aggregate consumption which still corresponds to higher than 1.5 °C global warming compared to the preindustrial levels. Conclusion: The share of consumption in the GDP of an economy undergoing energy transition can approach levels previously seen only in totally war-oriented economies. Even omitting other negative environmental feedback, the feasibility of the successful energy transition of the system in its contemporary form, with the currently available renewable energy technology, seems to be highly uncertain.

Economic Growth with Heterogeneous Households, Gender Division of Labor, and Elastic Labor Supply

2013 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Division Of Labor ◽  
Wealth Distribution ◽  
Group Model ◽  
Labor Participation ◽  
Female Labor ◽  
Gender Division Of Labor ◽  
Elastic Labor Supply ◽  
Income And Wealth Distribution

The purpose of this study is to propose a growth model with gender-heterogeneous households and an elastic labor supply. The dynamic model describes an interaction among economic growth, time, gender, income, and wealth distribution. Our investigation differs from traditional growth and distribution related studies, in that we propose an alternative approach to consumer behavior. We simulate the 3-group model to provide insights into the complexity of growth, income, and wealth distribution with a gender division of labor. Further, we are able to gain a better understanding of dynamic interactions among economic growth, income and wealth distribution, and female labor participation. For instance, our comparative dynamic analysis demonstrates that either a rise in female education or the propensity to work of any one group will increase the female labor participation within that group but that such a change has weak effects on the female labor participation within all other groups.

scholarly journals Increasing Energy Prices as a Stimulus for Entrepreneurship in Renewable Energies: Ownership Structure, Company Size and Energy Policy in Companies in Poland

Energies ◽  
2021 ◽  
Vol 14 (18) ◽  
pp. 5885
Author(s):  
Piotr Żuk ◽  
Paweł Żuk
Keyword(s):  
Renewable Energy ◽  
Ownership Structure ◽  
Energy Transition ◽  
Computer Assisted ◽  
Company Size ◽  
Energy Costs ◽  
Energy Prices ◽  
The Public ◽  
Development Policies ◽  
A Company

Can rising electricity prices be a driving force for energy transition in countries where the energy sector is d pendent on coal? The goals of the article are to determine the readiness of entrepreneurs to invest in renewable energy and indicate the variables (company size, the length of time it has operated in the market, the form of ownership and the sector of the economy represented) that influence companies’ greater interest in making savings in energy costs. The research sample in the survey carried out using the computer-assisted telephone interviewing (CATI) method included representatives of entrepreneurs from all regions of Poland. The result for all respondents was checked with the z-test (proportion test). The results obtained on a sample of 400 Polish entrepreneurs responsible for development policies in their companies explain which variables have the greatest impact on the decisions of companies in the context of investments in renewable energy: in Poland, greater interest in renewable energy can be observed in the public sector and in larger companies. The conclusion that can be drawn from this research is that the ownership structure of a company plays an important role in looking for savings by investing in renewable energy.

Governing Clean Energy Transitions in China and India

2017 ◽  
Author(s):  
Karoliina Isoaho ◽  
Alexandra Goritz ◽  
Nicolai Schulz
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Power Systems ◽  
Energy Transition ◽  
Clean Energy ◽  
Energy System ◽  
Electric Power Systems ◽  
Energy Technology ◽  
China And India ◽  
Technology Policies

China and India will have to radically transform their electric power systems in order to decouple economic growth from unsustainable resource consumption. The development and deployment of renewable energies offers a solution to this challenge. A clean energy transition, however, requires radical changes in the energy system that can only occur if a governing coalition is both willing and able to implement successful RET (renewable energy technology) policies. The authors analyse how this willingness and ability is shaped by the coalition’s power and cohesiveness, societal pressures, and the institutional configuration across levels of governance. In doing so, central drivers are identified and barriers to a clean energy transition in China and India.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

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