We examine in this paper sustainability-linked bonds (SLBs) whose issuance now totals more than USD 200 bn. There is a structural design flaw in the SLB mechanism: setting a significant coupon step-up does not suit the issuer’s nor the investors’ interests, considering conditionality. This creates a no win situation for the issuer and investors alike and explains the “benign”...
The paper examines the relevant cost benefit framework for state agencies investigating the potential of local projects to mitigate climate change. We propose a new metric that incorporates into the analytical framework the dynamic interactions between the project and its continuation.
Sectors that are considered to be subject to international competition under the European Emission Trading Scheme (EU-ETS) still benefit from free allocation of European Allowances (EUAs). Herein we study one of those beneficiaries: the crude steel industry. Our findings suggest the EU-ETS has failed to provide incentives for decarbonization in this sector.
Ivar Ekeland, Wolfram Schlenker, Peter Tankov, Brian Wright
We address the long-standing challenge of adding optimal exploration to the classic Hotelling model of a non-renewable resource. We prove that a frontier of critical levels of proven reserves exists, above which exploration ceases, and below which it proceeds at infinite speed.
This article identifies supply and demand shocks in the oil and gas market using monthly data (from January 2008 to December 2021) and explores their impact on clean energy stock returns in Europe. Our results show that a negative gas supply shock positively affects clean energy stocks, while a negative shock in global oil supply does not have...
In this paper, we show that the adoption by the regulator of measures such as the automatic tariff adjustment mechanism or cost reflectivity allows the mitigation of currency and inflation risks on the evolution of installed capacity in the 54 African countries over the period 1990-2019.
This paper studies energy demand determinants and energy poverty in Morocco and assess to which extent the adoption of PV panels could help achieve a just energy transition.
The objective of this paper is to analyze the link between electrification and deforestation in Cote d'Ivoire. Our results show a positive link. Indeed, deforestation continues to gain ground in the country alongside the vast national electrification access programs ongoing since 2011.
Several researchers argue that the root cause of today’s ecological disaster is not the anthropos, but the way we have been organizing the global economy through capitalism. It follows that we would be living in the Capitalocene rather than the Anthropocene. In this article, we demonstrate that the Capitalocene concept suffers from four intrinsic flaws
