Air pollution results in high economic costs arising from its negative impacts on human health, especially in urban areas. Driving restriction policies such as low emission zones (LEZs) are designed to improve air quality. Indeed, empirical analyses in this Weekly Report confirm that LEZs reduce traffic-related air pollution. However, the analyses also reveal unintended adverse effects on secondary ...
Over the course of a decade, Mexico transitioned from a peak of 1.8% of GDP given as fuel subsidies in 2008 to generating positive fuel tax revenues equivalent to 1.6% of its GDP in 2018. This paper analyzes Mexico's carbon pricing experience: the mechanisms that made fossil fuel subsidies such a large burden on public finances, the strategies followed in its five-year phase-out, and the institutional ...
The purpose of this study is to identify whether an innovative company’s likelihood of facing financial constraints is different when the company possesses a public procurement contract (PP). Theory suggests that the treatment effects of public procurement, particularly when mediated by the demand-pull effect, may lower a company’s funding constraints for innovation. We test this theory and apply extended ...
The shift to climate neutrality requires new process technologies for energy-intensive industries, such as steel, chemicals, or cement. A variety of technology options exist – but they face the challenges of (i) first-of-kind costs, (ii) higher operation and investment costs, and (iii) insufficient and uncertain carbon prices, which partly stem from political uncertainty. Existing innovation policy ...
Methane is the second-largest contributor to global warming due to anthropogenic greenhouse gas emissions. Reducing anthropogenic methane emissions quickly can significantly reduce global warming within just a few decades. The oil and gas sector is responsible for almost 20% of anthropogenic methane emissions. Yet, there are hardly any policies in place that address oil and gas sector methane emissions. ...
Changing political conditions in Mexico threatens the future of clean energy inthe country. A competitive electricity market and ambitious environmental goalswere among the priorities of the previous administration, but the current administrationaims to increase revenues from the national power company and acquirecontrol of the electricity market at the expense of consumer welfare and the environment.In ...