Surging Energy Prices In Europe In The Aftermath Of The War How To Support The Vulnerable And Speed Up The Transition Away From Fossil Fuels PDF Download

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Surging Energy Prices in Europe in the Aftermath of the War: How to Support the Vulnerable and Speed Up the Transition Away from Fossil Fuels

Surging Energy Prices in Europe in the Aftermath of the War: How to Support the Vulnerable and Speed Up the Transition Away from Fossil Fuels
Author: Mr. Anil Ari
Publisher: International Monetary Fund
Total Pages: 41
Release: 2022-07-29
Genre: Business & Economics
ISBN:

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We estimate that the recent surge in international fossil fuel prices will raise European households’ cost of living in 2022 by close to 7 percent of consumption on average. Household burdens vary significantly across and within countries, but in most cases they are regressive. Policymakers have mostly responded to the shock with broad-based price-suppressing measures, including subsidies, tax reductions, and price controls. Going forward, the policy emphasis should shift rapidly towards allowing price signals to operate more freely and providing income relief to the vulnerable. The surge in energy prices will encourage energy conservation and investments in renewable energy, but the manyfold rise in natural gas prices could lead to a persistent switch towards coal. To ensure steady progress towards carbon emissions reduction goals, authorities could use the opportunity to strengthen carbon pricing when global fossil fuel prices decline in the future. Non-price incentives for investments in energy efficiency and renewable energy should also be enhanced, as envisaged in the RePowerEU plan.


Vulnerable Households in the Energy Transition

Vulnerable Households in the Energy Transition
Author: Rossella Bardazzi
Publisher: Springer Nature
Total Pages: 269
Release: 2023-09-17
Genre: Business & Economics
ISBN: 3031356845

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This open access book explores the energy transition / energy poverty nexus in the European Union, including the implications of the transition and related policies for the household sector. Written by experts on energy economics, energy studies and related fields, it examines the impacts and costs of the energy transition (including those caused by carbon pricing) for the economy and for families in particular. Providing case studies on Germany, France, Italy, Spain and Greece, the contributing authors highlight current overlapping vulnerabilities for households, show the effects of decarbonization policies on relative prices, and discuss strategies for reducing energy poverty while also decarbonizing. Moreover, they address household and consumer vulnerabilities in connection with societal transformations such as demographic changes and the aging populations of Europe and particularly Italy. Given its scope, the book will appeal to scholars and students of energy studies, energy economics and related fields, and to anyone interested in the benefits and costs of the ongoing energy transition.


Energy Security and The Green Transition

Energy Security and The Green Transition
Author: Jaden Kim
Publisher: International Monetary Fund
Total Pages: 34
Release: 2024-01-12
Genre: Business & Economics
ISBN:

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The current energy crisis has raised important policy questions on how to strengthen short-term energy security while remaining firmly committed to the green transition, a challenge amplified by the recent consensus at COP28 to transition away from fossil fuels. This paper examines the historical determinants of the security of energy supply and analyzes the green transition implications for energy security. Looking back, we find that the diversification of energy trade partners, or the lack thereof, was the main factor that underpinned energy security dynamics within and across countries over the last two decades. Looking ahead, the green transition is expected to have a net positive effect on energy security provided investments are aligned to address new challenges posed by the increased reliance on renewables.


Consumer Finance Risk Monitor

Consumer Finance Risk Monitor
Author: OECD
Publisher: OECD Publishing
Total Pages: 108
Release: 2024-01-24
Genre:
ISBN: 926437647X

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Using original data collected from governments around the globe, the Consumer Finance Risk Monitor analyses the constantly evolving issues and risks facing consumers of financial products and services.


The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change

The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change
Author: Mr. Simon Black
Publisher: International Monetary Fund
Total Pages: 73
Release: 2023-06-23
Genre: Business & Economics
ISBN:

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To stabilize the climate, global greenhouse gas emissions must be cut by 25 to 50 percent by 2030 compared to 2019. Such an unprecedented rate of decarbonization necessitates climate mitigation policies across countries, notably carbon pricing, fossil fuel subsidy reform, renewable subsidies, feebates, emission rate regulations, and public investments. To design and implement effective, efficient, and equitable policies, governments need tools to assess economic, environmental, fiscal, and social impacts. To support this effort, the IMF and World Bank are making their joint Climate Policy Assessment Tool (CPAT) available to governments. CPAT is a transparent, flexible, and user-friendly model covering over 200 countries. It allows for the rapid quantification of impacts of climate mitigation policies, including on energy demand, prices, emissions, revenues, welfare, GDP, households and industries, local air pollution and health, and many other metrics. This paper describes the CPAT model, its data sources, key assumptions, and caveats.


Medium-term Macroeconomic Effects of Russia’s War in Ukraine and How it Affects Energy Security and Global Emission Targets

Medium-term Macroeconomic Effects of Russia’s War in Ukraine and How it Affects Energy Security and Global Emission Targets
Author: Hugo Rojas-Romagosa
Publisher: International Monetary Fund
Total Pages: 41
Release: 2024-03
Genre: Business & Economics
ISBN:

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Russia’s war in Ukraine has disrupted the supply of natural gas for many European countries, triggering an energy crisis and affecting energy security. We simulate the medium-term effects of these trade disruptions and find that most European countries have limited GDP losses but those more dependent on Russian natural gas face moderate losses. European fossil fuel consumption and emissions are reduced and after accounting for the war impacts, achieving Europe’s emission targets becomes slightly less costly. In terms of energy security, the war eliminates European energy dependency from Russian imports, but most of the natural gas and oil imports will be substituted by other suppliers. We also find that constructing a new Russian pipeline to China does not provide significant macroeconomic benefits to either country.


The 2020-2022 Inflation Surge Across Europe: A Phillips-Curve-Based Dissection

The 2020-2022 Inflation Surge Across Europe: A Phillips-Curve-Based Dissection
Author: Chikako Baba
Publisher: International Monetary Fund
Total Pages: 25
Release: 2023-02-10
Genre: Business & Economics
ISBN:

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In 2021-22, inflation in Europe soared to multidecade highs, consistently exceeding policymakers’ forecasts and surprising with its wide cross-country dispersion. This paper analyzes the key drivers of the inflation surge in Europe and its variation across countries. The analysis highlights significant differences in Phillips curve parameters across Europe’s economies. Inflation is more sensitive to domestic slack and external price pressures in emerging European economies compared to their advanced counterparts, which contributed to a greater passthrough of global commodity price shocks into domestic prices, and, consequently, to larger increases in inflation rates. Across Europe, inflation also appears to have become increasingly backward looking and more sensitive to commodity price shocks since the onset of the COVID-19 pandemic. This finding helps explain why conventional (Phillips curve) inflation models consistently underpredicted the 2021-2022 inflation surge, although it remains too early to conclude there has been a structural break in the inflation process.


The ESG Framework and the Energy Industry

The ESG Framework and the Energy Industry
Author: James Thewissen
Publisher: Springer Nature
Total Pages: 314
Release: 2024-01-13
Genre: Business & Economics
ISBN: 3031484576

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This book contributes to a better understanding of the importance of environmental, social, and governance (ESG) principles for corporate value in the energy industry. In particular, it analyzes how the energy industry is achieving this shift in response to government regulations and how it is addressing specific ESG issues. It discusses various economic incentives and market-based policies for ESG activities in the energy sector and highlights how energy firms are using environmental, social and governance initiatives to create value. In turn, the book demonstrates how ESG principles can be implemented while considering various economic and corporate issues, such as financial markets, financial risks, asset pricing, value at risk, capital structure, capital budgeting, corporate (re)structuring, corporate governance, behavioral finance, financial performance, asset pricing, cost control, financial accounting, fiscal issues, institutions, governance, and legal aspects. Accordingly, it will appeal to scholars of economics, finance, and energy policy, and to anyone interested in the implementation of ESG principles in the energy industry. This is the ninth book in a series organized by the Centre for Energy and Value Issues (CEVI). In this book, CEVI collaborates with the Hacettepe University Energy Markets Research and Application Center (Ankara, Turkey). The previous volumes in the series were: Financial Aspects in Energy (2011), Energy Economics and Financial Markets (2012), Perspectives on Energy Risk (2014), Energy Technology and Valuation Issues (2015), Energy and Finance (2016), Energy Economy, Finance and Geostrategy (2018), Financial Implications of Regulations in the Energy Industry (2020) and Applied Operations Research and Financial Modelling in Energy (2021).


Policy measures to compensate for increasing costs of energy

Policy measures to compensate for increasing costs of energy
Author: Erik Gråd
Publisher: Nordic Council of Ministers
Total Pages: 70
Release:
Genre: Political Science
ISBN: 9289378174

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Available online: https://pub.norden.org/temanord2024-517/ The Nordic region's climate change goals are challenged by significant energy price hikes from 2021 to 2023. Nordic governments implemented various price compensation measures, but their impact on social-, climate-, and environmental goals remains uncertain. The impact evaluation presented in this report highlights that the Nordic measures were characterised by diverse designs, rapid yet problematic implementation, and limited redistribution to low-income households. Several measures discouraged effective resource allocation and emission reduction. To reduce the risk of conflict between compensation measures and climate change policy it is important that measures are understood as temporary. Measures that utilise flat rate or regressive patterns for transfer of funds, and that decouple funds from current consumption, should have been more effective that most of the measures utilised.


Data for a Greener World

Data for a Greener World
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 231
Release: 2023-03-15
Genre: Business & Economics
ISBN:

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Data for a Greener World presents a structured discussion on how to measure the economic and financial dimensions of climate change. It combines economic theory and analysis with real world examples of how climate data can be constructed for different country settings, based on existing climate science and economic data. The book identifies important climate data gaps, as well as practical and innovative approaches to close many of these gaps. The book discusses how to track greenhouse gas emission by production and consumption (Chapters 1-2), which lead to physical risks (Chapters 3-4) and transition risks (Chapters 5-7) and concludes with cross-border implications of climate risks (Chapters 8-9). The book also showcases a collaboration of seven international organizations: European Central Bank, Eurostat, International Energy Agency, International Monetary Fund, Organisation for Economic Cooperation and Development, World Bank, and World Trade Organization. Chapter contributions come from leading practitioners and experts in the fields of energy and climate change issues. This volume also serves as a reference guide for the IMF's Climate Change Indicators Dashboard and future research in this area.