| Srl | Item |
| 1 |
ID:
179703
|
|
|
|
|
| Summary/Abstract |
The clean energy transition has long been framed in terms of its technological and economic feasibility. An increasingly salient constraint lies in its political feasibility. The transition requires vigorous public support to be completed. Yet increased consumer costs associated with the deployment of renewable electricity could make voters - and, by extension, governments - less supportive of it. As a result, overly aggressive government support for renewables could lead to its own downfall. To examine this threat, I document two stylized facts. First, the expansion of renewable electricity capacity has been followed by an increase in household electricity bills, and this has mostly happened because of energy-specific taxes. An increase of renewable electricity capacity by one within-country standard deviation raises a typical household's bill by €5.7 per MWh (95% CI: [3, 8.3]), most of which comes from an increase in non-VAT taxes (+€3.8/MWh [2.6; 5.1]). Second, these taxes have hurt popular support for aggressive renewable energy policy. An increase of non-VAT taxes by one standard deviation increases the share of people who find renewable energy too ambitious by 0.7 percentage points (95% CI: [0.1; 1.3]). Climbing costs could therefore undermine further political support toward renewable electricity deployment and threaten its contribution to greenhouse gas reductions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2 |
ID:
185234
|
|
|
|
|
| Summary/Abstract |
Despite growing concerns about the impacts of climate change, Japanese public financial institutions continued to build on long-standing partnerships in Southeast Asia through the expansion of thermal power generation. Recent Japanese investments include coal-fired power plants in Indonesia and Vietnam and natural gas supply chains in Indonesia and Bangladesh. Japan was one of the last developed countries globally to champion coal development that, even if highly efficient, comes at a cost to the environment. Overseas energy investment is at the nexus of two significant challenges of this century: the threat of climate change and great power competition. Japan, regionally proximate to China and burdened with a shrinking economy and limited energy supplies, shapes its regional foreign policy to enhance energy security, expand overseas market share, and uphold a rules-based international order. This paper discusses these primary drivers of Japan’s policy approach and highlights examples of Japan’s overseas energy investment strategies starting to shift to maintain a competitive edge as public opinion and market forces react to the increased risk perception of climate change.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|