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This paper investigates monetary-fiscal interactions in resource-rich emerging economies using an estimated Dynamic Stochastic General Equilibrium model. We find evidence of an active monetary and passive fiscal policy but confirm the presence of revenue substitution; a phenomenon that alters the automatic stabilizer's role of fiscal policy. Once the response of fiscal policy to oil-related flows is muted, the revenue substitution effect is neutralized, taxes respond positively to debt, and the stagflationary impacts of negative oil price shocks are ameliorated. Our findings highlight the need for dynamic tax policies that are less sensitive to receipts from resource rent as a strategy for achieving debt sustainability and overall macroeconomic stability in resource-rich countries. [ABSTRACT FROM AUTHOR]

This article explores Europe's external migration mix, considering three policy instruments which form part of the EU's remote control of borders: (1) visa regulations managing entry and cross-border mobility, (2) readmission agreements facilitating assisted and forced return of migrants without legal right to remain, and (3) resettlement of refugees with refugee status via formalised programmes. The article explores the degree and nature of these policies co-evolution. Based on a collation of migration policy data for 31 European countries between 1990 and 2020, we disentangle spatial, temporal, and categorical policy patterns and interactions. We find strong evidence for spatial policy dependence across European countries for all three policy areas, but particularly visa policy; evidence for some categorical dependence between selected external policies within countries, but also between external policy instruments and other migration-relevant policies; and only weak or no evidence for temporal sequencing of external policy change. The external migration policy mix appears heterogenous across different European states, but also within single European states, and vis-a-vis third country states, with whom various migration-relevant and externally oriented policies are negotiated. As a result, and perhaps surprisingly, the role of specific migration-relevant policies seems to be underestimated in strategic and overarching migration policymaking. [ABSTRACT FROM AUTHOR]

China announced the launch of a national emissions trading scheme (ETS) in December 2017 for the regulation of its carbon dioxides emissions. In emissions trading, China is likely to encounter issues different from those encountered by the European Union and other developed countries. This study first identifies the contextual factors that influence the design of China's national ETS and affect its performance. After an overview of the design of China's national ETS, this study focuses on two key features: (1) ex-post adjustment of the initial allowance allocation in proportion to the actual output levels, and (2) treatment of the power sector. Finally, the study analyzes the interaction between China's national ETS and some overlapping policies such as those on air pollution control. The study's key findings are that China's ETS cannot fully achieve cost-effectiveness because of its design, the price behavior of China's ETS will be different from that of a cap-and-trade ETS, and overlapping policies such as the command-and-control regulations for energy conservation and/or air quality improvement will decrease the demand for allowances and limit the opportunity for allowance trading. These findings are based on existing theoretical studies and relevant global ETS experience. [ABSTRACT FROM AUTHOR]

We study the interactions between a CO2 emissions trading system (ETS) and renewable energy subsidies under uncertainty over electricity demand and energy costs. We develop an analytical model and a numerical model applied to the European Union electricity market in which renewable energy subsidies are justified only by CO2 abatement. We confirm that in this context, when uncertainty is small, renewable energy subsidies are not welfare-improving, but we show that when uncertainty is large enough, these subsidies increase expected welfare because they provide CO2 abatement even in the case of over-allocation, i.e. when the cap is higher than the emissions which would have occurred without the ETS. The source of uncertainty is important when comparing the various types of renewable energy subsidies. Under uncertainty over electricity demand, renewable energy costs or gas prices, a feed-in tariff brings higher expected welfare than a feed-in premium because it provides a higher subsidy when it is actually needed i.e. when the electricity price is low. Under uncertainty over coal prices, the opposite result holds true. Key policy insights Due to the possibility of over-allocation in an ETS, subsidies to renewable energies can increase expected welfare, even when climate change mitigation is the only benefit from renewables taken into account. In most cases studied, a feed-in tariff brings a higher expected welfare than a feed-in premium. The European Commission guidelines on State aid for energy, which incentivize member States to replace feed-in tariffs by feed-in premiums, should be reconsidered based on these results. [ABSTRACT FROM AUTHOR]

In this paper, we evaluate the bonus-malus schemes proposed by governmental investigation in Sweden in 2014. The objective was to reach the target of maximum 95 g/km of average emissions for new car sales by 2020. Two bonus-malus schemes along with several other policies were introduced in different scenarios as measures to reach the target. The scenarios differ in design regarding bonus-malus schemes, vehicle circulation tax, clean car premiums, company car benefits tax, and fuel tax. Both private and company car segments are targeted in these scenarios. We use a nested logit model for car type choice to predict the effects of the proposed policy scenarios on Swedish new car sales. Moreover, we introduce a methodology to predict the future of car supply. Our model results show that none of the three proposed policy scenarios is successful enough to meet the average emissions target. Furthermore, although the number of electric, plug-in hybrid, and alternative fuel cars will increase, new car sales will still be dominated by fossil-fueled cars in all scenarios. The average emissions in the scenarios containing bonus-malus schemes are not lower than that of the business-as-usual scenario. However, introducing bonus-malus schemes on its own would reduce emissions showing that interacting with other non--differentiated policies counteracts their effects. Moreover, bonus-malus schemes are predicted to give a budget surplus effect. [ABSTRACT FROM AUTHOR]

Hydropower contributes to a higher share of renewables but is also in conflict with environmental legislation aiming to protect natural habitats, wildlife and endangered species. Analysing two neighbouring European countries with similar topographical and hydromporphological characteristics, Austria and Slovenia, allows assessing to what extent a policies’ national context steers possible policy conflicts of EU legislation. The paper shows that hydropower expansion in examined countries is strongly shaped by factors such as financial concerns of investors, diverging opinions of involved stakeholders, available hydro potential and the role of hydropower in national energy strategies. Addressing issues that lead to a lower effectiveness of national policies already at the level of EU policy design or engaging countries to broadening their national energy portfolio by considering emerging technologies such as PV and wind will enable future energy and climate strategies that are more consistent with other environmental goals. [ABSTRACT FROM AUTHOR]

The EU is pioneering the development of greenhouse gas emissions trading, but there is a tension between the ‘top-down’ and ‘bottom-up’ evolution of trading schemes. While the Commission is introducing a European emissions trading scheme (EU ETS) in 2005, several member states have already introduced negotiated agreements that include trading arrangements. Typically, these national schemes have a wider scope than the proposed EU directive and allow firms to use relative rather than absolute targets. The coexistence of ‘top-down’ and ‘bottom-up’ trading schemes may create some complex problems of policy interaction. This paper explores the potential interactions between the EU ETS and the negotiated agreements in France and UK and uses these to illustrate some important generic issues. The paper first describes the proposed EU directive, outlines the UK and French policies and compares their main features to the EU ETS. It then discusses how the national and European policies may interact in practice. Four issues are highlighted, namely, double regulation, double counting of emission reductions, equivalence of effort and linking trading schemes. The paper concludes with some recommendations for the future development of UK and French climate policy. [Copyright &y& Elsevier]