nep-ene New Economics Papers
on Energy Economics
Issue of 2008‒05‒05
eight papers chosen by
Roger Fouquet
Imperial College, UK

  1. Stimulating Renewable Energy Technologies by Innovation policy By Simona O. Negro; Marko P. Hekkert; Ruud Smits
  2. Changing Configuration of Alternative Energy Systems By Bhuyan, Radhika; Mytelka, Lynn K.
  3. Crossroads at Mmamabula: Will the World Bank Choose the Clean Energy Path? By David Wheeler
  4. Promoting clean technologies: The energy market structure crucially matters. By Azomahou, Théophile; Boucekkine, Raouf; Nguyen-Van, Phu
  5. Oil Stock Discovery and Dutch Disease By Kirk Hamilton; John Hartwick
  6. Analysis The Structure of Production and Sectoral Relationships in Iraqi Economy During the Period (1970 -1990 By Alrubaie, falah.K.Ali
  7. How Do the BRICs Stack Up? Adding Brazil, Russia,India, and China to the Environment Component of the Commitment to Development Index By David Roodman
  8. Moving Toward A Consensus on Climate Policy: The Essential Role of Global Public Disclosure By David Wheller

  1. By: Simona O. Negro; Marko P. Hekkert; Ruud Smits
    Abstract: In this paper we analyse the dynamics of three emerging innovation systems by using the system functions approach in which the underlying key activities that contribute to the build up of an innovation system are identified. The insights gained with respect to the dynamic functional patterns specific for each emerging innovation system will allow us to identify system failures and develop policy and policy measures that start out from an innovation systems’ perspective. We will present initial ideas on the building blocks for a more systemic policy aiming to support the development of new emerging innovation systems (and in doing so break down parts of the old innovation systems).
    Keywords: Innovation policy, Technological Innovation Systems, Emerging technologies, Renewable Energy System Functions
    Date: 2008–04
  2. By: Bhuyan, Radhika (UNU-MERIT); Mytelka, Lynn K. (UNU-MERIT)
    Abstract: Recent and rampant regulatory changes for sustainable development are seeking to transform current energy systems towards cleaner and greener forms of energy sources. In this scenario, alternative energy technologies are considered the building blocks towards this transformed energy system. This chapter will show how the alternative energy market since the 1970s changed, in response to external oil price shocks and to other selective pressures and institutions. It will observe that the configuration of the market has been changing since 1970s, in terms of firm-composition, size and types of technologies considered in the green energy mix. It will further provide three explanations explaining why there are changes between firms, policies and these energy technologies. These three processes are considered important in determining technological innovation among firms in clean and green energy technologies.
    Keywords: Renewable Energy, New Technologies, Firm Competition, Technology Policy, Energy Technologies
    JEL: O19 O13 O33 N70 Q01 Q55
    Date: 2008
  3. By: David Wheeler
    Abstract: At the recent UN climate change conference in Bali, UN Secretary General Ban Ki-moon called for a revolutionary change in the world’s energy mix to minimize the risk of catastrophic global heating. This paper explores the implications for the World Bank and other donor institutions, employing proposed Bank financing of the Mmamabula coal-fired power project in Botswana as an illustrative case. Using the latest estimates of generating costs for coal-fired and low-carbon power options, I compute the CO2 accounting charges that would promote switching to the low-carbon options. In all cases, I find that that the switching charges are at the low end of the range that is compatible with safe atmospheric limits on carbon loading. Among the low-carbon options that I have considered for Botswana, solar thermal power seems to dominate carbon capture and storage. My results suggest that the World Bank and other donor institutions will adopt a transformational energy policy if they use appropriate accounting charges for carbon emissions. The Mmamabula example indicates that this approach will select low-carbon options in many cases, and grants from the Bank’s Clean Technology Fund and other sources can finance the market-cost gap between clean and fossil-fired technologies. Clean energy projects should proliferate, as donors learn about the new approach and more funds are devoted to meeting the global emissions reduction mandate.
    Keywords: World Bank, climate change, Botswana
    Date: 2008–02
  4. By: Azomahou, Théophile (UNU-MERIT); Boucekkine, Raouf (CORE, Universite Catholique de Louvain); Nguyen-Van, Phu (CNRS, Université de Cergy-Pontoise,)
    Abstract: We develop a general equilibrium vintage capital model with embodied energy-saving technological progress and an explicit energy market to study the impact of investment subsidies on investment and output. Energy and capital are assumed to be complementary in the production process. New machines are less energy consuming and scrapping is endogenous. It is shown that the impact of investment subsidies heavily depends on the structure of the energy market, the mechanism explaining this outcome relying on the tight relationship between the lifetime of capital goods and energy prices via the scrapping conditions inherent to vintage models. In particular, under a free entry structure for the energy sector, investment subsidies boost investment, while the opposite result emerges under natural monopoly if increasing returns in the energy sector are not strong enough.
    Keywords: Energy-saving, Technological change, Vintage capital, Energy market, Natural monopoly, Investment subsidies
    JEL: E22 O40 Q40
    Date: 2008
  5. By: Kirk Hamilton; John Hartwick (Queen's University)
    Abstract: We set out a model of a small open economy exporting oil and a traditional exportable in return for produced capital. The small open economy also has local production of a non-traded good. We first observe that the size of the traditional export sector declines with an exogenous increase in the country's oil stock. Strong Dutch disease (SDD) involves a net diminution in produced capital in use in the small open economy after the oil discovery shock. SDD turns on the exportable sector being relatively capital intensive.
    Keywords: Dutch disease, resource discovery, invariant earnings
    JEL: F43 Q33 Q32
    Date: 2008–03
  6. By: Alrubaie, falah.K.Ali
    Abstract: The topic of study relations sectoral oil states, specifically the relationship between the oil sector and non-oil sectors with particular emphasis on many economists and emerged from theoretical studies and applied, who adopted the hypothesis of Dutch disease, which believes that the rise in oil revenues will have negative effects on the development of sectors Non-oil, especially in the sectors of manufacturing and agriculture. Despite the economic structure characterized by the diversity of Iraq in comparison with the economies of oil-Pure rental nature, but that he shared with them in terms of governing the oil sector in path of changes in relations sectoral result of the continuing situation of imbalance in the structure of production which resulted in the expansion of the oil sector and Economic activities financed by oil revenues, and at the expense of relative neglect of the sectors of the non-oil commodity . To explication the most important developments in the relations sector in the Iraqi economy for the period (1970 -1990) study used a structural analysis, which concerned an analysis of the relative distribution rates and sectoral working relations within the framework of macro-economic system, in order to diagnose the main characteristics of the economic structure in Iraq and the evolving trends Relations in the sector in the Iraqi economy, and determine their impact on the process of structural transformation in Iraqi Economy . To achieve this objective analysis covered both GDP growth and its impact on the development and the sectoral linkages between these sectors , and its impact on the development of relations sector. Finally ,The study found that the Iraqi economy, have witnessed during the eighties of the twentieth century, the worst kinds of sectoral imbalances, which deepened the absence of proportionality between the sectors that are the sources of supply for the domestic output of non-oil commodity, and sectors that operate tributaries of domestic demand, has been reflected, more disruption Between the real production capacities generated in the national economy, reflected in the added value achieved in agriculture and manufacturing, and the large consumer of entry generated in the non-commodity activities, especially activities of public administration and defense. The analysis of the linkages overall productivity (direct and indirect) between different economic activities, the production structure in Iraq biased towards the final production links, and there is no tendency towards engaging in successive stages of production, the absence of the role of intermediary manufacturing productivity, weak effects generated by the incentive, which Explains the weakness of the multiplier effects generated by the exchange sectoral front and rear, and the high volume of leakage from the intermediate flows during the import process for the various intermediate goods production as a result of the weakness of the manufacturing sector's role in bolstering productivity and provide linkages intermediate inputs and productivity of other sectors of national economy and the absence of the role of the leader sector, who achieved high productivity and employment
    Keywords: تحليل الهيكل الإنتاجي والعلاقات القطاعية في الاقتصاد العراقي خلال الفترة (1970 -1990)
    JEL: A12
    Date: 2000–10–05
  7. By: David Roodman
    Abstract: The Commitment to Development Index (CDI) ranks 21 of the world’s richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond simple comparisons of foreign aid, the CDI ranks countries on seven themes: quantity and quality of foreign aid, openness to developing-country exports, policies that influence investment, migration policies, stewardship of the global environment, security policies and support for creation and dissemination of new technologies. This year for the first time, CGD research fellow David Roodman extended the environment component of the Index to cover four of the biggest developing countries: Brazil, Russia, India and China, a group Goldman Sachs dubbed the “BRICs.” This working paper explores the indicators that make up the environment component (global climate, sustainable fisheries, and biodiversity and global ecosystems) and explains how the BRIC countries stack up to their right-country counterparts. He finds that the BRICs score remarkably well compared to the 21 rich countries covered by the Index: when thrown in with the usual 21, they rank second, fourth, fifth, and eleventh. They generally perform well on the greenhouse gas emissions, consumption of ozone-depleting substances, and tropical timber imports. And the BRICs have joined important international environmental accords. As a group, their major weakness is low gas taxes. In addition, Amazon deforestation and heavy fossil fuel use pull Brazil and Russia, respectively, below the CDI 21 average on greenhouse emissions per capita. China’s abstention from the U.N. fisheries agreement puts it a half point below the other BRICs.
    Keywords: environment, Commitment to Development Index (CDI)
    Date: 2007–10
  8. By: David Wheller
    Abstract: Among climate scientists, there is no longer any serious debate about whether greenhouse gas emissions from human activity are altering the earth’s climate. There is also a broad consensus on two issues related to reducing emissions. First, developing countries must be full participants in global emissions control, because they will be most heavily impacted by global warming, and because they are rapidly approaching parity with developed countries in the scale of their emissions. Second, efficient emissions control will require carbon pricing via market-based instruments (charges or cap-and-trade). These points of consensus are sufficient to establish a clear way forward, despite continued disagreements over the choice of specific instrument and the appropriate carbon charge level. Since all market-based systems that regulate emissions sources require the same emissions information, the international community should immediately establish an institution mandated to collect, verify and publicly disclose information about emissions from all significant global carbon sources. Its mandate should extend to best-practice estimation and disclosure of emissions sources in countries that initially refuse to participate. This institution will serve four purposes. First, it will lay the necessary foundation for implementing any market-based system of emissions source regulation. Second, it will provide an excellent credibility test, since a country’s acceptance of full disclosure will signal its true willingness to participate in globally-efficient emissions reduction. Third, global public disclosure will itself reduce carbon emissions, by focusing stakeholder pressure on major emitters and providing reputational rewards for clean producers. Fourth, disclosure will make it very hard to cheat once market-based instruments are implemented. This will be essential for preserving the credibility of an international agreement to reduce emissions.
    Keywords: climate change
    Date: 2007–11

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