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on Energy Economics |
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Issue of 2009‒10‒17
twenty papers chosen by Roger Fouquet Basque Climate Change Centre, Bilbao, Spain |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair on EU Energy Policy of the Robert Schuman Centre of Advanced Studies (European University Institute), the Fondazione Eni Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) organize a four-tier program for discussing the potential for a smart EU Energy Policy. The Florence workshop is then the first one in a series of four where academics will discuss the various interactions between the three objectives of the EU Energy Policy with stakeholders from governments, regulators and the industry. This workshop adressed the internal energy market design and its consequences for energy supply security and climate change policies. The workshop gathered over on day and a half 42 experts to discuss current problems and possible solutions for a smart EU Energy Policy. |
| Keywords: | Smart energy policy; 3rd EU directive; Market design; Renewable energy; gas reform |
| Date: | 2009–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422993_v1&r=ene |
| By: | Arnaud Vergnol (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Jonathan Sprooten (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Benoît Robyns (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Jacques Deuse (Tractebel - GDF Suez) |
| Abstract: | With the increased use of wind energy the power generation several Transmission System Operators (TSO) have increasing difficulties for congestion forecasting due to the unpredictable nature of the energy source. This paper proposes to enhance the congestion management using a real time supervisor. This supervisor is developed to perform automatic and dynamic re-dispatching using both wind and conventional generators. In order to reduce the production constraints to the minimum, the real time congestion management is based on an indicator of the efficiency of a re-dispatching on the power flowing in the overloaded line. This approach leads to reduced re-dispatching costs and increased network reliability. The simulation of the supervisor and the test grid is realized using by the EUROSTAG [1]. It is shown that the real-time supervisor allows maximization of renewable production during congestions while ensuring network reliability. |
| Keywords: | Power management ;Power transmission;Energy system management;Wind energy ; Variable speed drive |
| Date: | 2009–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422160_v1&r=ene |
| By: | Arnaud Vergnol (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Jonathan Sprooten (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Benoît Robyns (L2EP - Laboratoire d'électrotechnique et d'électronique de puissance (L2EP) - Université des Sciences et Technologies de Lille - Lille I - Arts et Metiers PARISTECH - Ecole Centrale de Lille - Haute Etude d'Ingénieurs); Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Jacques Deuse (Tractebel - GDF Suez) |
| Abstract: | With the increased use of wind energy for the power generation several TSO have increasing difficulties for congestion forecasting due to the unpredictable nature of the energy source. An actual method used to deal with days-ahead congestion planning is based on an order of disconnection of the generation of the type “last generation installed, first generation limited”. This paper proposes to enhance the congestion management using a real time supervisor. This supervisor is developed to perform automatic and dynamic re-dispatching using both wind and conventional generators. In order to reduce the production constraints to the minimum, the real time congestion management is based on an indicator of the efficiency of a re-dispatching on the power flowing in the overloaded line. This approach leads to reduced re-dispatching costs and increased network reliability. Actual and proposed methods are compared in the paper using Matlab/Simulink simulations of a realistic test grid. It is shown that the real-time supervisor allows maximization of renewable production during congestions while ensuring network reliability. |
| Keywords: | Congestion management; Wind farm; Power Transfer Distribution Factors (PTDF); Power system control; Active power dispatch; Variable speed wind turbines. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422544_v1&r=ene |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Philippe Dessante (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | This paper aims at understanding and assessing the main methods proposed by ETSO and EuroPEX [1] to define and allocate interconnection capacities in Europe. We model these methods and evaluate their technical and economic efficiency on a 7-node network. We find first, that, unsurprisingly, the allocation methods are all the more efficient as the Kirchhoff laws are integrated more precisely in the market clearing. Second, and more surprisingly, we find that the zonal vision of the grid considered by all these methods has important consequences on the technical and economic efficiency as it may cause the capacity limits of powerlines to be exceeded. |
| Keywords: | Electricity, Transmission Capacity Allocation, Market Coupling, ATC-based, flow-based. |
| Date: | 2009–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422222_v1&r=ene |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Jean-Michel Glachant (LdP - Loyola de Palacio Programme - European University Institute); Yannick Perez (LdP - Loyola de Palacio Programme - European University Institute); Philippe Dessante (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | This paper examines how transmission coordinates with generation to the long term in a liberalized power system. We rely on a modular analysis to separate the mechanisms of coordination between generation and transmission of electricity into distinct modules. The governance structure of transmission completes this analysis framework. We then show that in a logic of complementarity, this governance structure influences the options that TSO implements to manage effectively power flows. Although locational signals are necessary to guide the installation of new power plants, the governance structure explains that investment in network may be the only effective method of longterm coordination between generation and transmission. |
| Date: | 2009–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00423036_v1&r=ene |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Jean-Michel Glachant (LdP - Loyola de Palacio Programme - European University Institute); Yannick Perez (LdP - Loyola de Palacio Programme - European University Institute, ADIS - Analyse des Dynamiques Industrielles et Sociales - Université Paris Sud - Paris XI); Philippe Dessante (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | Cet article analyse comment s'organise la coordination à long terme entre la production et le transport dans un système électrique libéralisé. Nous nous appuyons sur un cadre d'analyse modulaire afin de séparer les mécanismes de coordination entre la production et le transport d'électricité en modules distincts. La structure de gouvernance du réseau de transport complète ce cadre d'analyse. Nous montrons alors que, dans une logique de complémentarité institutionnelle, cette structure de gouvernance influence les options de gestion des flux effectivement mises en oeuvre par les Gestionnaires de Réseaux Transport d'électricité. Bien que les signaux de localisation soient nécessaires afin de guider l'installation de nouveaux moyens de production, les contraintes de localisation des moyens de production et la structure de gouvernance du réseau expliquent alors que ces signaux sont insuffisants pour coordonner à long terme production et transport. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422149_v1&r=ene |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | Stockage des énergies renouvelables |
| Date: | 2009–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422564_v1&r=ene |
| By: | Leen Vandezande (KUL - Katholieke Universiteit Leuven - Université Catholique de Louvain); Leonardo Meeus (KUL - Katholieke Universiteit Leuven - Université Catholique de Louvain); Ronnie Belmans (KUL - Katholieke Universiteit Leuven - Université Catholique de Louvain); Marcelo Saguan (ADIS - Analyse des Dynamiques Industrielles et Sociales - Université Paris Sud - Paris XI); Jean-Michel Glachant (LdP - Loyola de Palacio Programme - European University Institute); Vincent Rious (SUPELEC-Campus Gif - SUPELEC) |
| Abstract: | Following several regional initiatives on the day-ahead and intra-day stage, integrating real-time balancing markets constitutes a logical next step in the process towards an Internal Electricity Market (IEM) in Europe. So far, realtime balancing market designs significantly differ between European countries and a coordinated approach for cross-border exchange of balancing services is non-existent. This paper aims to illustrate that the current lack of balancing market harmonisation – in combination with an increasingly integrated day-ahead and intra-day trade – can be profitably exploited by traders. More specifically, trading strategies taking advantage of structural design differences in the imbalance settlement of two countries are identified and assessed. The paper analyses detailed data of the Belgian and French power system using statistics in order to verify the profitability of different trading strategies between both countries. Some of the identified trading strategies are found to be significantly profitable; others turn out to be loss-making. On average, France was the most attractive country for traders to be long in 2008; Belgium to be short. Profitable trading strategies can usally be carried out without any expense as cross-border capacities available at the intra-day stage are currently far from being used and no value is attributed to them. However, some profitable trading activities resulting from market design imperfections may induce economic inefficiencies |
| Date: | 2009–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00422185_v1&r=ene |
| By: | Noufel Frikha (PMA - Laboratoire de Probabilités et Modèles Aléatoires - CNRS : UMR7599 - Université Pierre et Marie Curie - Paris VI - Université Denis Diderot - Paris VII); Vincent Lemaire (PMA - Laboratoire de Probabilités et Modèles Aléatoires - CNRS : UMR7599 - Université Pierre et Marie Curie - Paris VI - Université Denis Diderot - Paris VII) |
| Abstract: | The recent liberalization of the electricity and gas markets has resulted in the growth of energy exchanges and modelling problems. In this paper, we modelize jointly gas and electricity spot prices using a mean-reverting model which fits the correlations structures for the two commodities. The dynamics are based on Ornstein processes with parameterized diffusion coefficients. Moreover, using the empirical distributions of the spot prices, we derive a class of such parameterized diffusions which captures the most salient statistical properties: stationarity, spikes and heavy-tailed distributions. The associated calibration procedure is based on standard and efficient statistical tools. We calibrate the model on French market for electricity and on UK market for gas, and then simulate some trajectories which reproduce well the observed prices behavior. Finally, we illustrate the importance of the correlation structure and of the presence of spikes by measuring the risk on a power plant portfolio. |
| Keywords: | Electricity markets; spot price modelling; ergodic diffusion; saddlepoint |
| Date: | 2009–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00421289_v2&r=ene |
| By: | Vincent Rious (SUPELEC-Campus Gif - SUPELEC); Michelle Hallack (ADIS - Analyse des Dynamiques Industrielles et Sociales - Université Paris Sud - Paris XI) |
| Abstract: | The mainline of the workshop was the transmission tariffs on gas network from a European perspective. Transmission is a key issue for the European gas system for two reasons. First, transmission tariff should incentivize the efficient use of infrastructure and so facilitate the development of competition. Second, transmission tariff should also give enough return to network investors so that they upgrade the network efficently compared to their current and future uses not only for national infrastructures but also for cross-border pipelines. Three issues were especially treated in the different sessions during the workshop namely: 1° competition and efficient use of the network, 2° investment in national infrastructures, and 3° investment in cross-border infrastructures. Key conclusions and open questions from the debate among regulators, TSOs, stakeholders and academic delegates are reported here. |
| Date: | 2009–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00423002_v1&r=ene |
| By: | Luis J. Álvarez (Banco de España); Samuel Hurtado (Banco de España); Isabel Sánchez (Banco de España); Carlos Thomas (Banco de España) |
| Abstract: | This paper assesses the impact of oil price changes on Spanish and euro area consumer price inflation. We find, consistently with recent international evidence, that the inflationary effect of oil price changes is limited, even though crude oil price fluctuations are a major driver of inflation variability. The impact on Spanish inflation is found to be somewhat higher than in the euro area. Direct effects are increasing over time, reflecting the higher spending of households on refined oil products, whereas indirect ones, defined in broad terms, are losing importance. |
| Keywords: | oil prices, consumer price infl ation, Spanish and Euro area infl ation, DSGE models |
| JEL: | E20 E31 E37 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:0904&r=ene |
| By: | Angelo Antocii (Universita' degli Studi di Sassari); Marcello Galeotti (Dipartimento di Matematica per le Decisioni, Universita' degli Studi di Firenze); Paolo Russu (Universita' degli Studi di Sassari) |
| Abstract: | In this paper we use global analysis techniques to investigate an economic growth model with environmental negative externalities, giving rise to a three-dimensional dynamic system (the framework is the one introduced by Wirl (1997)). The dynamics of our model admits a locally attracting steady state which is, in fact, a poverty trap, coexisting with another steady state possessing saddle-point stability. Global dynamical analysis shows that, under some conditions on the parameters, if the economy state variables are close enough to those of the attractive point, then there exists a continuum of equilibrium orbits approaching the poverty trap and one orbit approaching the saddle-point. |
| Keywords: | environmental externalities, indeterminacy, history versus expectations, global analysis of dynamic systems |
| JEL: | C61 C62 E13 E32 O13 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:flo:wpaper:2009-05&r=ene |
| By: | Stefanie Engel (IED Institute for Environmental Decisions, ETH Zurich); Charles Palmer (Department of Geography and Environment, London School of Economics and Political Science (LSE), London, UK) |
| Abstract: | In many developing countries, decentralization programmes for natural resource management aim to induce incentives for sustainable resource management at the local level. The effectiveness of such programmes has, however, suffered from weak property rights to the resource and by the presence of externalities. Growing economic integration among countries has exacerbated these problems by increasing the exposure of local user groups to commercial actors interested in resource extraction. In this paper, the interplay of decentralization and globalization in affecting environmental outcomes and community welfare is analysed through a game-theoretic model of community-firm interactions. The results highlight the complexities of policy design. First, by raising the extractive value of the resource, globalization may lead to communities negotiating resource extraction agreements with firms. Second, with a lack of effective state enforcement of community resource rights, communities may be unable to assume de facto ownership over the resource, while commercial actors succeed in exploiting resources without community consent. No single policy option provides a panacea to counteracting these negative effects. Instead, a mix of policies, combining incentive payments along with the provision of more secure property rights and poverty alleviation is shown to have the potential to improve both environmental outcomes and community welfare. |
| Keywords: | Bargaining, decentralization, globalization, natural resources, poverty, property rights, self-enforcement |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ied:wpsied:09-08&r=ene |
| By: | Partha Dasgupta |
| Abstract: | Review of the most salient issues in ecological economics when the subject is applied to the field of economic development. The aim here has not been to be scholastic but to examine the lives of the world's poor so as to unearth the role of natural capital there. An account here of the processes that characterise human-nature interactions reads differently from the accounts in recent surveys of both development economics and environmental and resource economics are given. [SANDEE] |
| Keywords: | rural institutions, pollute, ecological economics, economic development, natural capital, human, nature, development econmics, environmental, resource, poor, |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2233&r=ene |
| By: | Stan Metcalfe |
| Abstract: | Technology and technological change play a central role in economics, whether in the theory of resource allocation or in the theory of growth and development. Yet the nature of technology is largely ignored in economic theory, it being considered sufficient to treat technology as a constraint on productive opportunities. This short essay delves a little deeper into the nature of technology and the material, energy and information transformation processes that it represents. A deeper understanding of technology leads to a deeper understanding of the main currents of technological advance and to the reasons why the development of technology and its application are so uneven over time and place. |
| Keywords: | Length 27 pages |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2009-09&r=ene |
| By: | Burton A. Abrams (Department of Economics,University of Delaware); Jing Li; James G. Mulligan (Department of Economics,University of Delaware) |
| Abstract: | There is an on-going debate concerning the role that the steam engine played in fueling urban growth in the U.S. during the second half of the nineteenth century. While a consensus has been building that steam power played little or no role in affecting urban growth, we find evidence to the contrary by using previously untapped county-level data on steam power in manufacturing. |
| Keywords: | urbanization, technology, convergence |
| JEL: | N32 O14 O18 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dlw:wpaper:09-06.&r=ene |
| By: | Laurent-Lucchetti, Jérémy |
| Abstract: | Allocating property rights on an open access resource which has been freely exploited in the past is often very problematic. Involved agents typically rely on one of two competing principles to determine future allocation: grandfathering or historical accountability. One prominent example is the case of allocating property rights over $CO_2$ emissions: developed countries typically argue that they should not be penalized for their high volumes of past emissions, because it simply translates their more intense economic development history (claim for a "grandfathering" allocation) while developing countries typically argue that they should obtain more property rights because of their future needs (claim for "historical accountability"). We construct a simple model inspired by the claims problem literature to show that these two positions are in fact compatible: they define bounds to the set of possible allocations. We explicit a family of methods which meets these bounds and characterize the two extreme points of this family: the equal sharing and the uniform gains methods. |
| Keywords: | Property rights allocation; environmental economics; climate change; international agreement; distributive justice. |
| JEL: | D3 D6 Q3 Q2 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17726&r=ene |
| By: | Emilie Alberola (Mission Climat Caisse des Dépôts - Université Panthéon-Sorbonne - Paris I); Julien Chevallier (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre) |
| Abstract: | L'article examine le développement du prix du carbone en Europe de 2005 à 2009 et ses fondamentaux, avant de fournir les préceptes essentiels pour les négociations de Copenhague. L'expérience unique du marché européen du CO2 éclairera les négociations sur un point majeur : la fixation du prix du carbone. Les négociateurs doivent retenir trois éléments : la liquidité du marché est soutenue par les acteurs financiers ; les prix du carbone s'ajustent à la contrainte relative qui pèse sur les acteurs ; et un signal-prix de long terme est indispensable pour les décisions d'investissement des industriels. |
| Keywords: | Prix du CO2; Marchés de l'énergie; EU ETS |
| Date: | 2009–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00422653_v1&r=ene |
| By: | Marin, Giovanni; Mazzanti, Massimiliano |
| Abstract: | This paper provides new empirical evidence on delinking / Environmental Kuznets Curves (EKC) for greenhouse gases and other air pollutant emissions in Italy. We analysed a panel dataset based on the Italian NAMEA for 1990-2005 with a specific focus on industry. We integrated the emission-income NAMEA with data on trade openness and R&D expenditures. The highly disaggregated dataset provides a large heterogeneity and can help to overcome the shortcomings of the usual approach to EKC based on cross-country data. We use in this paper CO2, SOx, NOx and PM10 as objects of investigation. We use as empirical models of reference both a standard EKC model and a STIRPAT/IPAT model. Our results show that looking at sector evidence, both decupling and then eventually re-coupling trends could emerge along the path of economic development. The analysis of how stagnation periods affect environmental performances is also of interest. |
| Keywords: | NAMEA; trade openness; labour productivity; EKC; STIRPAT |
| JEL: | Q55 C23 Q56 O40 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17536&r=ene |
| By: | Xavier Pautrel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272) |
| Abstract: | In a two-period overlapping generations model, this paper demonstrates that the relationship between environmental taxation and economic activity (output level and output growth) becomes inverted-U shaped when the detrimental impact of pollution on health and the private decision of each working-age agent to improve her health are taken into account. In particular, a tighter environmental tax is more likely to promote (rather than to harm) output-level and -growth when health is very sensitive to pollution, the weight of health in preferences is high, the polluting capacity of the production technology is high and the rate of natural purification of pollutants is low. The inverted-U shaped relationship between environmental tax and economic activity is due to a positive effect arising from the competition for resources between the final output sector and the health-enhancing activities. This offsets the conventional detrimental “drag-down effect” for low values of the environmental tax. We also demonstrate that the link between environmental tax and lifetime welfare is inverted-U shaped as well. Finally, we investigate the social optimum and the determinants of the optimal environmental tax. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00423323_v1&r=ene |