Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries

The rate of climate change due to global warming has become a substantial concern and appeared as a real-world phenomenon in the recent years. However, it is imperative to know how business enterprises alter such concern. Recent studies involve a variety of firm-level factors to create a robust link between business enterprises' environmental and financial performance. However, little is known regarding the role of research and development (R&D) investment on firms' environmental performance. Using a firm-level data for the period 2004–2016 from G-6 countries, this study empirically investigates how R&D investment affects the firm environmental performance measured by energy and carbon emissions intensities. We find that R&D investment improves the firm's environmental performance consistent with the theoretical argument of natural resource-based view (NRBV). Our findings are robust to alternative econometric specifications, alternative variable specifications, and sub-samples. Our findings offer novel insights to the policymakers, business managers, and regulators.     

On the intraday dynamics of oil price and exchange rate: What can we learn from China and India?

The main aim of this paper is to investigate the volatility determinants of crude oil and foreign exchange markets and jump spillover between them. We consider currencies of two major oil-importing countries (India and China) over the sample period of January 1, 2013 to October 31, 2019. We find evidence of positive return spillover from the oil to the foreign exchange market; however, there is a lack of return spillover in the other direction. Oil jumps appear to have a negative impact on exchange rate conditional volatility, and the latter responds asymmetrically to disentangled (positive and negative) oil price jumps. We also report disentangled exchange rate jumps' significant impact on conditional oil price volatility. These results, however, are asymmetric based on the nature of jumps and alternative oil price series. Finally, we do not find evidence of co-jump between the oil and foreign exchange markets. These results have important implications for investors and policymakers.     

The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China

In this research, we aim to understand the influence of government subsidies on enterprises’ research and development (R&D) investment behavior, particularly in China’s renewable energy sector. We are also interested in examining how the attributes of enterprise ownership act as a moderating variable for the relationship between government subsidies and R&D investment behavior. Three classical panel data analysis models including the pooled ordinary least squares (OLS) model, the fixed effect model and the random effect model are employed. We find that government subsidies have a significant crowding out influence on enterprises’ R&D investment behavior and that the influence is further moderated by the attributes of enterprise ownership. Moreover, a panel threshold regression model is used to demonstrate how the influence of government subsidies on enterprises’ R&D investment behavior will change when government subsidies increase. Two thresholds, 0.6% and 10.1%, are identified. We recommend that relevant government departments should motivate enterprise R&D investment behavioral intention by increasing subsidies within a certain range. Different attributes of enterprise ownership should also be considered as part of policy reform and re-structuring relating to government subsidies.     

What did we recently learn about the evaluation of energy efficiency policies and programmes? Insights from IEPPEC 2014 in Berlin

This short communication introduces the special issue based on a selection of papers first presented at the International Energy Policy and Programme Evaluation Conference in Berlin on 9 to 11 September 2014.     

How can the integration of renewable energy and power-to-gas benefit industrial facilities? From techno-economic,policy, and environmental assessment

This paper applies a mixed integer linear programming model developed in GAMS to simulate the integration of Power-to-Gas infrastructure into an industrial manufacturer's energy system subject to the existing thermal and electrical energy demands, as well as a third hydrogen energy profile. This work is novel in that it assesses the challenges and economic incentives available to make feasible the installation of a hydrogen-based energy storage systems within the Province of Ontario from a techno-economic, policy and environmental perspectives.The energy hub analyzed in this work uses electricity from the power grid and solar PVs to meet the manufacturer's demands, while converting the excess to hydrogen gas, which is used across an array of pathways to generate revenue. ThisThis includes a blend ofof hydrogen for fuel cell vehicles (FCVs), hydrogen for forklifts, and the direct injection of hydrogen into the facility's natural gas, adding renewable content to the heating, and manufacturing processes. Our primary objective was to implement a safe design that minimizes capital and operating costs, resulting in a favorable business case for producing hydrogen, and providing ancillary grid services. However, Power-to-Gas creates a net-emission reduction that can be used not only to sell emission allowances in the provincial carboncarbon tax program for up to $30/t-CO_2eq but to assist the Company in achieving their strategic emission reduction targets.Installation of the selected Power-to-Gas system would require a total capital investment of $2,620,448 with the electrolyzers and solar panels accounting for 41% and 17% of the capital costs, respectively. The compressors will account for most of the operating costs which total $237,653 annually. Within the energy hub, 76,073 kg-H₂ has been produced per year for end-use applications. A sensitivity analysis was performed by varying both hydrogen and carbon credit price which predicted a potentialpotential CO₂ offset of 2359.7 tonne/yr with a payback period of as little as 2.8 years.     

What can we learn from North American transport energy demand restraint policies of the 1970s and 1980s and public reactions to them?

This paper offers a North American perspective on the possible reaction of the general public to regulatory instruments addressing energy consumption, and by implication, carbon emissions. Its purpose is to reflect on some of the lessons learnt from research on consumer behaviour undertaken by the author and colleagues in the wake of the oil shortages of 1973 (OPEC embargo) and 1979 (interruption of Iranian production). The paper does not, therefore, provide an extensive review of related literature. It first outlines very briefly the policy context of the past 30 years and the classes of transport energy demand restraint policies of the 1970s and 1980s. It then describes some key lessons from our research during those two decades and concludes with some speculation on their relevance to demand-side management that is motivated by concerns over greenhouse gas emissions.     

Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?

This article evaluates the status of current RES deployment, policies and barriers in the EU-27 member states and compares it to the required to meet the 2020 targets. The evaluation relies strongly on the quantitative deployment status and policy effectiveness indicators. European RES deployment and policy has progressed strongly in recent years, but the growth here has been mainly driven by effective policies in a small or medium number of top runner countries. Across Europe, the highest average policy effectiveness over six years was reached for onshore wind (4.2%), biofuels (3.6%) and biomass electricity (2.7%), while in the heat sector, all technologies score below 2%. Comparing the recent progress to the required growth for meeting the 2020 target, it appears that some countries largely exceed the interim targets of the RES Directive 2009/28/EC. Despite this, Europe will need additional policy effort to reach the 2020 target. Critical success factors include implementing effective and efficient policies that attract sufficient investments, reducing administrative and grid related barriers, especially in currently less advanced countries, upgrading the power grid infrastructure, dismantling financial barriers in the heat sector, realising sustainability standards for biomass, and lowering energy demand through increased energy efficiency efforts.     

What might be the energy demand and energy mix to reconcile the world’s pursuit of welfare and happiness with the necessity to preserve the integrity of the biosphere?

In today’s global energy mix with a share of 80% fossil energy, the growth of the world population and energy demand will lead to a conflict between stable ecosystems and global welfare. The inspection of social indexes of welfare and happiness leads to the following energy plan: high-income countries with a current annual energy demand of up to 8 tonnes of oil equivalent per capita (toe pc) have to reduce their demand to 2 toe pc, which should be sufficient without cutback in welfare. Vice versa, low-income countries increase their demand until 2 toe pc are reached. Compared to today this scenario (2 toe pc, 9 billion people by 2050) leads to an increase of the ecological footprint from today 1.3 to 2 planet Earths in today’s technologies. The only solution to provide 2 toe pc without damaging the biosphere is a reduction of the CO₂ footprint with a current share of 50%. A complete shift from fossil fuels to renewables would half the ecological footprint as needed for the desired footprint of one planet Earth. To reach this goal, one or more forms of solar power and/or nuclear power are needed, as the potential of non-solar renewables is too small.     

What’s the state of energy studies research?: A content analysis of three leading journals from 1999 to 2008

We present the results of a content analysis conducted on 2502 papers written by 5318 authors published between 1999 and 2008 in three leading energy studies journals: Energy Policy, The Energy Journal, and The Electricity Journal. Our study finds that authors were most likely to be male, based in North America, possess a background in science or engineering, and affiliated with a university or research institute. Articles were likely to be written by authors working within disciplinary boundaries and using research methods from an economics/engineering background. The US was the most written about country among papers that adopted a country focus and electricity was the most frequently discussed energy source. Energy markets and public policy instruments were the most popular focus areas. According to these findings, we identify five thematic areas whose further investigation could enhance the energy studies field and increase the policy-relevance of contemporary research.