nep-ene New Economics Papers
on Energy Economics
Issue of 2007‒07‒20
three papers chosen by
Roger Fouquet
Imperial College, UK

  1. The Influence of Temperature on Spike Probability in Day-Ahead Power Prices By Huisman, R.
  2. From Closed-Loop to Sustainable Supply Chains: The WEEE case By Quariguasi Frota Neto, J.; Walther, G.; Bloemhof-Ruwaard, J.M.; Nunen, J.A.E.E van; Spengler, T
  3. Endogenous irrigation : the impact of climate change on farmers in Africa By Kurukulasuriya, Pradeep; Mendelsohn, Robert

  1. By: Huisman, R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: It is well known that day-ahead prices in power markets exhibit spikes. These spikes are sudden increases in the day-ahead price that occur because power production is not flexible enough to respond to demand and/or supply shocks in the short term. This paper focuses on how temperature influences the probability on a spike. The paper shows that the difference between the actual and expected temperature significantly influences the probability on a spike and that the impact of temperature on spike probability depends on the season.
    Keywords: Day-ahead power price;Power production;Temperature;Spike probability;
    Date: 2007–06–08
  2. By: Quariguasi Frota Neto, J.; Walther, G.; Bloemhof-Ruwaard, J.M.; Nunen, J.A.E.E van; Spengler, T (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: The primary objective of closed-loop supply chains (CLSC) is to reap the maximum economic benefit from end-of-use products. Nevertheless, literature within this stream of research advocates that closing the loop helps to mitigate the undesirable footprint of supply chains. In this paper we assess the magnitude of such environmental gains for Electric and Electronic Equipments (EEE), based on a single environmental metric of Cumulative Energy Demand. We detail our analysis for the different phases of the CLSC, i.e. manufacturing, usage, transportation and end-of-life activities. According to our literature review, within the same group of EEE, results greatly vary. Furthermore, based on the environmental hot-spots, we propose extensions of the existing CLSC models to incorporate the CED.
    Keywords: Closed-loop supply chains (CLSC);Electric and electronic equipments (EEE);Cumulative energy demand;
    Date: 2007–05–11
  3. By: Kurukulasuriya, Pradeep; Mendelsohn, Robert
    Abstract: Previous Ricardian analyses of agriculture have either omitted irrigation or treated irrigation as though it is exogenous. In practice, it is a choice by farmers that is sensitive to climate. This paper develops a choice model of irrigation in the context of a Ricardian model of cropland. The authors examine how climate affects the decision to use irrigation and then how climate affects the net revenues of dryland and irrigated land. This Ricardian " selection " model, using a modified Heckman model, is then estimated across 8,400 farmers in Africa. The analysis explicitly models irrigation but controls for the endogeneity of irrigation. The authors find that the choice of irrigation is sensitive to both temperature and precipitation. Simulations of the welfare impacts of several climate scenarios demonstrate that a model which assumes irrigation is exogenous provides a biased estimate of the welfare effects of climate change. If dryland and irrigation are to be estimated separately in the Ricardian model, irrigation must be modeled endogenously. The results also indicate that African agriculture is sensitive to climate change. Many farmers in Africa will experience net revenue losses from warming. Irrigated farms, on the other hand, are more resilient to temperature change and, on the margin, are likely to realize slight gains in productivity. But any reduction in precipitation will be especially deleterious to dryland farmers, generally the po orest segment of the agriculture community. The results indicate that irrigation is an effective adaptation against loss of rainfall and higher temperatures provided there is sufficient water available. This will be an effective remedy in select regions of Africa with water. However, for many regions there is no available surface water, so that warming scenarios with reduced rainfall are particularly deleterious.
    Keywords: Climate Change,Environmental Economics & Policies,Water Supply and Systems,Water Resources Assessment,Global Environment Facility
    Date: 2007–07–01

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