nep-ene New Economics Papers
on Energy Economics
Issue of 2006‒07‒02
five papers chosen by
Roger Fouquet
Imperial College, UK

  1. Energy Options in an HJM Framework By Hansen, Thomas Lyse; Jensen, Bjarne Astrup
  2. Price and Income Elasticities of Russian Exports By Bernardina Algieri
  3. Quasi-Fiscal Deficits and Energy Conditionality in Selected CIS Countries By Joy ten Berge; Tapio Saavalainen
  4. Infrastructure and public utilities privatization in developing countries By Picard, Pierre M.; Auriol, Emmanuelle
  5. Diffusion Paths for Micro Cogeneration Using Hydrogen in the Netherlands By Taanman, Mattijs; Groot, Arend de; Kemp, René; Verspagen, Bart

  1. By: Hansen, Thomas Lyse (Dong A/S); Jensen, Bjarne Astrup (Department of Finance, Copenhagen Business School)
    Abstract: It is a delicate matter to trade spot products and financial derivatives in energy markets. Op-posite to bond and stock markets, the underlying assets are real products and a significant part of the demand for them represents a real need for the products, which can only be substituted away with some difficulties or, in some cases, only in a prohibitively costly manner. This is particularly true in the spot market, where the demand is almost always met, but where the spot price processes can be quite different from the spot price processes conventionally used in the pricing of derivatives. This pattern of real demand is also the main reason for the existence of the well-known convenience yield in energy markets.
    Keywords: HJM; Framework; Energy options
    JEL: G00
    Date: 2005–01–05
  2. By: Bernardina Algieri
    Abstract: The paper gauges export demand elasticities for Russia using an Error Correction technique within a cointegration framework. An extended version of the Imperfect Substitutes Model has been implemented to estimate the sensitivity of Russian exports without oil components to price and to Russian and world income. Our results suggest a robust and negative long run cointegration relationship between the real effective exchange rate, defined as the weighted average of the rouble's exchange rates versus a basket of the three currencies with the largest share in the trade turnover adjusted to incorporate inflation rate differences (the ratio of the domestic price indices to the foreign price indices), and Russian exports. An increase in exports by 24 % is caused by a real depreciation by 10 %. Furthermore, a 10 % growth in world income leads to a 33 % rise in exports. Finally, exports drop by 14 % whenever a 10 % increase in domestic income occurs.
    JEL: F19 P27 C22
    Date: 2004–12–01
  3. By: Joy ten Berge; Tapio Saavalainen
    Abstract: Quasi-fiscal deficits of public utility companies are common in all member countries of the Commonwealth of Independent States (CIS). They constitute a significant impediment to efficient resource allocation and endanger macroeconomic stability. This paper presents a simple framework for measuring and monitoring such deficits and highlights their macroeconomic relevance. It reviews the progress under IMF conditionality aimed at correcting these imbalances during 1993-2003. The paper suggests that the extensive conditionality under the IMF-supported programs has yielded only limited progress in reducing the energy sector's financial imbalances. In conclusion, different policy options are discussed in light of the lessons learned.
    Keywords: Energy , Armenia , Azerbaijan , Georgia , Kyrgyz Republic , Moldova , Tajikistan , Uzbekistan , Budget deficits , Energy sector , Transition economies , Conditionality , Governance ,
    Date: 2006–02–22
  4. By: Picard, Pierre M.; Auriol, Emmanuelle
    Abstract: The paper analyzes governments ' tradeoff between fiscal benefits and consumer surplus in privatization reforms of noncompetitive industries in developing countries. Under privatization, the control rights are transferred to private interests so that public subsidies decline. This benefit for tax-payers comes at the cost of price increases for consumers. In developing countries, tight budget constraints imply that privatization may be optimal for low profitability segments. For highly profitable public utilities, the combination of allocative inefficiency and critical budgetary conditions may favor public ownership. Finally, once a market segment gives room for more than one firm, governments prefer to regulate the industry. In the absence of a credible regulatory agency, regulation is achieved through public ownership.
    Keywords: Economic Theory & Research,Public Sector Economics & Finance,Privatization,Markets and Market Access,State Owned Enterprise Reform
    Date: 2006–06–01
  5. By: Taanman, Mattijs (Dutch Research Institute For Transitions, Erasmus University Rotterdam); Groot, Arend de (ECN); Kemp, René (UNU-MERIT and TNO-STB); Verspagen, Bart (Eindhoven University of Technology and TIK, University of Oslo)
    Abstract: We estimate the diffusion of micro cogeneration systems (MiCoGen) using hydrogen produced from natural gas in the Netherlands for the 2000-2050 period on the basis of economical factors. The diffusion is important for the transition to a hydrogen economy based on renewables, with natural gas paving the way for hydrogen from renewables which. For three scenarios full diffusion takes place in the period 2020-2050. The most important factors behind the diffusion are: growing energy demand, resulting in lower hydrogen costs and higher energy costs in the reference case and lower costs of MiCoGen stemming from learning economies. The model is very ad-vanced by considering all costs components for heterogeneous users which have been calculated for the entire diffusion period. It is the first threshold diffusion model that is being applied to the diffusion of technological clusters involving new or adapted infrastructures.
    Keywords: diffusion model, hydrogen, hydrogen economy, micro cogeneration
    JEL: Q42 O13 O33
    Date: 2006

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