nep-ene New Economics Papers
on Energy Economics
Issue of 2011‒08‒29
twenty papers chosen by
Roger Fouquet
Basque Climate Change Centre, Bilbao, Spain

  1. Smart Meter Devices and The Effect of Feedback on Residential Electricity Consumption: Evidence from a Natural Experiment in Northern Ireland By Will Gans; Anna Alberini; Alberto Longo
  2. DIMENSION - A Dispatch and Investment Model for European Electricity Markets By Richter, Jan
  3. A Unique Competitive Equilibrium on Interdependent Spot Electricity and Reserve Capacity Markets By Richter, Jan
  4. Deregulation, Consolidation, and Efficiency: Evidence from U.S. Nuclear Power By Lucas W. Davis; Catherine Wolfram
  5. Spatial Dependence in Wind and Optimal Wind Power Allocation: A Copula Based Analysis By Grothe, Oliver; Schnieders, Julius
  6. The economic value of storage in renewable power systems - the case of thermal energy storage in concentrating solar plants By Nagl, Stephan; Fürsch, Michaela; Jägemann, Cosima; Bettzüge, Marc Oliver
  7. Ownership Unbundling of Gas Transmission Networks - Empirical Evidence By Growitsch, Christian; Stronzik, Marcus
  8. Depletion and Development: Natural resource supply with endogenous field opening By Anthony J. Venables
  9. What Determines Investment in the Oil Sector?: A New Era for National and International Oil Companies By Lyudmyla Hvozdyk; Valerie Mercer-Blackman
  10. Working Paper 02-11 - Analyse de politiques de transport : rapprochement des accises sur les carburants et Eurovignette III By Dominique Gusbin; Marie Vandresse
  11. Political economy of the petroleum sector in Nigeria By Gboyega, Alex; Soreide, Tina; Le, Tuan Minh; Shukla, G. P.
  12. Why Do Some Oil Exporters Experience Civil War But Others Do Not? – A Qualitative Comparative Analysis of Net Oil-Exporting Countries By Matthias Basedau; Thomas Richter
  13. Assessing the welfare effects of promoting biomass growth and the use of bioenergy – A simple back-of-an-envelope calculation By Lundgren, Tommy; Marklund, Per-Olov
  14. Vehicle Manufacturing Futures in Transportation Life-cycle Assessment By Chester, Mikhail; Horvath, Arpad
  15. NAMAs in the Transport Sector: Case Studies from Brazil, Indonesia, Mexico and the People's Republic of China By Cornie Huizenga; Stefan Bakker
  16. Mitigation Potential of Removing Fossil Fuel Subsidies: A General Equilibrium Assessment By Jean-Marc Burniaux; Jean Chateau
  17. Trade-Related Measures Based on Processes and Production Methods in the Context of Climate-Change Mitigation By Evdokia Moïsé; Ronald Steenblik
  18. Enhancing the Cost-Effectiveness of Climate Change Mitigation Policies in Sweden By Stéphanie Jamet
  19. France's Environmental Policies: Internalising Global and Local Externalities By Balázs Égert
  20. Climate-Change Policy in the United Kingdom By Alex Bowen; James Rydge

  1. By: Will Gans (AREC, University of Maryland, College Park); Anna Alberini (Department of Agricultural Economics, university of Maryland, US and Centre for Energy Policy and Economics (CEPE), ETH Zurich, Switzerland); Alberto Longo (Gibson Institute for Land Food and Environment, UKCRC Centre of Excellence for Public Health (NI), School of Biological Sciences, Queen‘s University, Belfast)
    Abstract: Using a unique set of data and exploiting a large-scale natural experiment, we estimate the effect of real-time usage information on residential electricity consumption in Northern Ireland. Starting in April 2002, the utility replaced prepayment meters with "smart" meters that allow the consumer to track usage in real-time. We rely on this event, account for the endogeneity of price and plan with consumption through a plan selection correction term, and find that the provision of information is associated with a decline in electricity consumption of up to 20 percent. We find that the reduction is robust to different specifications, selection-bias correction methods and subsamples of the original data. At GBP 15-17 per tonne of CO2e (2009), the smart meter program delivers cost-effective reductions in carbon dioxide emissions.
    Keywords: Residential Energy, Electricity Demand, Feedback, Smart Meter, Information
    JEL: Q40 Q41 D8
    Date: 2011–04
  2. By: Richter, Jan (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: A linear energy system model is presented which optimises the future development of electricity generation capacities and their dispatch in Europe. Besides conventional power plants, combined heat and power plants and power storages, the model considers technologies that support the future high feed in of renewable energies. These technologies include demand side management processes and virtual power storages consisting of electric vehicles.
    Keywords: Energy system model; European electricity markets; Combined heat and power; Demand Side Management; Battery electric vehicles
    JEL: C61 Q40 Q41
    Date: 2011–08–22
  3. By: Richter, Jan (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: This paper studies the interdependency of a spot electricity market and a market for incremental reserve capacity in a competitive setting, where a continuum of firms supplies both markets. It is proved that a simultaneous competitive equilibrium on both markets exists in the stylised model used. It turns out that all market equilibria are characterised essentially by a u-shaped reserve capacity market bidding function and that the set of suppliers declaring reserve capacity constitutes an interval. If the supplier’s marginal cost curve is convex, then a unique equilibrium exists.
    Keywords: Competitive Equilibrium; Electricity; Reserve Capacity; Simultaneous Equilibrium
    JEL: D41 D44 L11 L94
    Date: 2011–08–23
  4. By: Lucas W. Davis; Catherine Wolfram
    Abstract: For the first four decades of its existence the U.S. nuclear power industry was run by regulated utilities, with most companies owning only one or two reactors. Beginning in the late 1990s electricity markets in many states were deregulated and almost half of the nation’s 103 reactors were sold to independent power producers selling power in competitive wholesale markets. Deregulation has been accompanied by substantial market consolidation and today the three largest companies control more than one-third of all U.S. nuclear capacity. We find that deregulation and consolidation are associated with a 10 percent increase in operating efficiency, achieved primarily by reducing the frequency and duration of reactor outages. At average wholesale prices the value of this increased efficiency is approximately $2.5 billion annually and implies an annual decrease of almost 40 million metric tons of carbon dioxide emissions.
    JEL: D21 D40 L51 L94 Q48
    Date: 2011–08
  5. By: Grothe, Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Schnieders, Julius (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: The investment decision on the placement of wind turbines is, neglecting legal formalities, mainly driven by the aim to maximize the expected annual energy production of single turbines. The result is a concentration of wind farms at locations with high average wind speed. While this strategy may be optimal for single investors maximizing their own return on investment, the resulting overall allocation of wind turbines may be unfavorable for energy suppliers and the economy because of large fluctuations in the overall wind power output. <p> This paper investigates to what extent optimal allocation of wind farms in Germany can reduce these fluctuations. We analyze stochastic dependencies of wind speed for a large data set of German on- and offshore weather stations and find that these dependencies turn out to be highly nonlinear but constant over time. Using copula theory we determine the value at risk of energy production for given allocation sets of wind farms and derive optimal allocation plans. We find that the optimized allocation of wind farms may substantially stabilize the overall wind energy supply on daily as well as hourly frequency.
    Keywords: Wind power; Vine copula; Optimal turbine allocation
    JEL: C32 C53 Q42
    Date: 2011–05–01
  6. By: Nagl, Stephan (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Fürsch, Michaela (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Jägemann, Cosima (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Bettzüge, Marc Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: In this article we analyze the value of thermal energy storages in concentrated solar plants depending on the electricity generation mix. To determine the value from a system integrated view we model the whole electricty generation market of the Iberian Peninsula. <p> Key findings for thermal energy storage units in concentrated solar plants include an increasing value in electricity systems with higher shares of fluctuating renewable generation and a potentially significant role in a transformation to a primarily renewable based electricity system. Due to the relatively high investment costs concentrated solar power plants with or without thermal energy storages are not cost efficient in todays electricity markets. <p> However, expected cost reductions due to learning curve effects and higher fluctuating renewable generation may lead to a comparative cost advantage of concentrated solar power plants with thermal energy storages compared to other renewable technologies.
    Keywords: Fluctuating renewables; value of storage; concentrated solar power; power plant optimization
    JEL: C61 Q40
    Date: 2011–08–23
  7. By: Growitsch, Christian (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Stronzik, Marcus (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: The European Commission has intensively discussed the mandatory separation of natural gas transmission from production and services. However, economic theory is ambiguous on the price effects of vertical separation. In this paper, we empirically analyse the effect of ownership unbundling of gas transmission networks as the strongest form of vertical separation on the level of end-user prices. <p> Therefore, we apply different dynamic estimators as system GMM and the bias-corrected least-squares dummy variable or LSDVC estimator on an unbalanced panel out of 18 EU countries over 19 years, allowing us to avoid the endogeneity problem and to estimate the long-run effects of regulation. <p> We introduce a set of regulatory indicators as market entry regulation, ownership structure, vertical separation and market structure and account for structural and economic country specifics. Among these different estimators, we consistently find that ownership unbundling has no impact on natural gas end-user prices, while the more modest legal unbundling reduces them significantly. Furthermore, third-party access, market structure and privatisation show significant influence with the latter leading to higher price levels.
    Keywords: Natural gas; Networks; Regulation; Ownership unbundling; Panel data
    JEL: C23 L43 L94
    Date: 2011–07–20
  8. By: Anthony J. Venables
    Abstract: This paper develops a model in which supply of a non-renewable resource can adjust through two margins: the rate of depletion and the rate of field opening. Faster depletion of existing fields means that less of the resource can ultimately be extracted, and optimal depletion of open fields follows a (modified) Hotelling rule. Opening a new field involves sinking a capital cost, and the timing of field opening is chosen to maximize the present value of the field. Output dynamics depend on both depletion and field opening, and supply responses to price changes are studied. In contrast to Hotelling, the long run equilibrium rate of growth of prices is independent of the rate of interest, depending instead on characteristics of demand and geologically determined supply.
    Keywords: natural resource, depletion, Hotelling, fossil fuel, carbon tax
    JEL: Q3 Q5
    Date: 2011
  9. By: Lyudmyla Hvozdyk; Valerie Mercer-Blackman
    Abstract: This paper discusses recent trends in investment in the oil sector, amid new challenges for national and international oil companies in an increasingly supply-constrained environment. After more than a decade of stagnant investment rates, nominal investment has picked up sharply over the three years ending in 2007, but soaring costs (including from higher tax rates and royalties) meant that investment growth was minimal in real terms. The paper performs econometric tests using the Arellano-Bond GMM technique. It finds that `below ground¿ risks are statistically very important in deterring real investment. Companies are taking on increasingly complex geological challenges, which are putting upward pressure on production costs and are leading to greater project delays compared to the past. As many of these factors are expected to persist, supply constraints are likely to remain a dominant factor behind oil price fluctuations during the next several years.
    Keywords: Private Sector :: Business Development, Energy & Mining :: Petroleum, Coal & Natural Gas, Energy & Mining, What Determines Investment in the Oil Sector?
    Date: 2010–08
  10. By: Dominique Gusbin; Marie Vandresse
    Abstract: This study aims to analyse the impact of two transport pricing policies using the PLANET model. The transport policies are (1) a harmonisation of excise duties on petrol and diesel and (2) road pricing for heavy goods vehicles in accordance with the EU proposal for the Eurovignette III directive. The effects studied concern the consequences for the transport activity for persons and goods, the environmental impact and the impact on social welfare. For both policy types, the impact on the public budget is neutralized through general taxation or labour taxation.
    Keywords: Long-term forecasting, Transport policy, Passenger and freight transport
    JEL: C69 R41 R48
    Date: 2011–01–27
  11. By: Gboyega, Alex; Soreide, Tina; Le, Tuan Minh; Shukla, G. P.
    Abstract: The relatively slow pace of Nigeria's development has often been attributed to the phenomenon of the resource curse whereby the nature of the state as a"rentier"dilutes accountability for development and political actors are able to manipulate institutions to sustain poor governance. The impact of the political elite's resource-control and allocation of revenues on core democratic mechanisms is central to understand the obstacles to development and governance failure. Given that problems of petroleum sector governance are extremely entrenched in Nigeria, the key question is whether and how it is possible to get out of a poor equilibrium after fifty years of oil production. This paper uses a political economy perspective to analyze the governance weaknesses along the petroleum sector value chain and attempts to establish the links between challenges in sector regulation and the following major political and economic attributes: (i) strong executive control on petroleum governance in a political environment of weak checks and balances; (ii) regulatory and operating roles bundled into one institution, thereby creating conflict of interest; and (iii) manipulation of elections and political appointments. The restoration of democratic government has helped improve transparency and management of oil revenue and reforms at the federal level and proposed reforms of the petroleum sector hold much promise. At the same time, the judiciary has started to restore confidence that it will serve as a check and balance on the executive and the electoral process. Yet, these reforms are fragile and need to be deepened and institutionalized. They must be addressed not as purely technocratic matters but as issues of political economy and vested interests that must, through regulation and reform, be aligned with the public interest and a vision of Nigerian development.
    Keywords: National Governance,Environmental Economics&Policies,Oil Refining&Gas Industry,Energy Production and Transportation,Public Sector Corruption&Anticorruption Measures
    Date: 2011–08–01
  12. By: Matthias Basedau; Thomas Richter
    Abstract: According to quantitative studies, oil is the only resource that is robustly linked to civil war onset. However, recent debates on the nexus of oil and civil war have neglected that there are a number of peaceful oil-rentier states, and few efforts have been spent to explain why some oilexporting countries have experienced civil war and others have not. Methodologically, the debate has been dominated by research using either quantitative methods or case studies, with little genuine medium-N comparison. This paper aims to fill this gap by studying the conditions of civil war onset among net oil exporters using (crisp-set) Qualitative Comparative Analysis (csQCA). Considering a sample of 44 net oil exporters between 1970 and 2008, we test conditions such as oil abundance (per capita) and dependence, the interaction of ethnic exclusion and oil reserve locations (overlap) as well as the type of political regime (polity). Our results point to a combination of necessary and sufficient conditions that has been largely ignored until now: low abundance is a necessary condition of civil war onset. Two pathways lead to civil war: first, a combination of low abundance and high dependence and, second, a combination of low abundance and the geographical overlap of ethnic exclusion with oil reserve areas within autocracies.
    Keywords: civil war, oil exports, resource curse, rentier state, QCA
    Date: 2011–01
  13. By: Lundgren, Tommy (CERE); Marklund, Per-Olov (CERE)
    Abstract: Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare e¤ects of promoting biomass growth and the use of bioenergy. As an illustration, a forest hypothetical intensive forest cultivation project is simulated. Costs and benefi…ts of the project show that we need not only determine the postive effects of promoting biomass growth and the use of bioenergy, such as substitution away from fossil fuels and carbon sequestration. But more importantly, to achieve a balanced measure of the e¤ects on the climate, we must also incorporate all carbon emissions that is associated with bioenergy. Not doing so will overestimate the positive climate e¤ects of increasing the use of bioenergy.
    Keywords: Bioenergy
    JEL: Q23 Q42
    Date: 2011–08–22
  14. By: Chester, Mikhail; Horvath, Arpad
    Abstract: Vehicle manufacturing effects are critical life-cycle components in the total costs of vehicle travel and future manufacturing processes should be evaluated for travel forecasts. With efforts to introduce lightweight materials, increased fuel economy, and new technologies such as electric vehicles, understanding the energy and environmental effects of these expected vehicles is critical. Current vehicle manufacturing energy use and greenhouse gas emissions are summarized from existing research for passenger (conventional gasoline vehicles, hybrid electric vehicles, aircraft, high-speed rail) and freight (trucks, trains, and ocean going vessels) modes. Future vehicle manufacturing effects are then determined incorporating the aforementioned modes as well as plug-in hybrid and battery electric vehicles.
    Keywords: Engineering, Operations Research, Systems Engineering and Industrial Engineering
    Date: 2011–08–23
  15. By: Cornie Huizenga; Stefan Bakker
    Keywords: Infrastructure & Transport :: Railways, NAMA, Sustainable Transport, Bus Rapid Transit (BRT), Avoid-Shift-Improve, Transport Demand Management, Mobility, Greenhouse Gas Emissions, Latin America, BRIC, Climate Change Adaptation, Non-Motorized Transport, Urban Transport
    Date: 2010–10
  16. By: Jean-Marc Burniaux; Jean Chateau
    Abstract: Quoting a joint analysis made by the OECD and the IEA, G20 Leaders committed in September 2009 to ?rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption?. This analysis was based on the OECD ENV-Linkages General Equilibrium model and shows that removing fossil fuel subsidies in a number of non-OECD countries could reduce world Greenhouse Gas (GHG) emissions by 10% in 2050 (OECD, 2009). Indeed, these subsidies are huge. IEA estimates indicate that total subsidies to fossil fuel consumption in 37 non-OECD countries in 2008 amounted to USD 557 billions (IEA, OPEC, OECD, World Bank, 2010). This represents almost five times the yearly bilateral aid flows to developing countries as defined by the Official Development Assistance (ODA). This paper discusses the assumptions, data and both environmental and economic implications of removing these subsidies. It shows that, though removing these subsidies would amount to roughly a seventh of the effort needed to stabilize GHG concentration at a level of 450ppm or below 2°C, the full environmental benefit of this policy option can only be achieved if, in parallel, emissions are also capped in OECD countries. Finally, though removing these subsidies qualifies as being a ?win-win? option at the global level in terms of environmental and economic benefits, this is not true for all countries/regions. The paper also provides some discussion about the robustness of these results.<P>Impact potentiel de l'élimination des subsides à la consommation des énergies fossiles sur les émissions de gaz à effet de serre : une évaluation en équilibre général<BR>Se réfèrant à une analyse entreprise conjointement par l'OCDE et l'AIE, les dirigeants du G20 se sont engagés en Septembre 2009 à "rationaliser et éliminer dans le moyen terme les subsides inefficaces des énergies fossiles qui encouragent un gaspillage de leur consommation". Cette analyse, fondée sur les résultats du modèle d'équilibre général ENV-Linkages de l'OCDE, montre que l'élimination des subsides à la consommation d'énergies fossiles dans un certain nombre de pays non-OCDE pourrait réduire les émissions mondiales de gaz à effet de serre (GES) de 10% en 2050 (OECD, 2009). Ces subsides sont, en effet, très importants. Les estimations de l'AIE indiquent que les subsides à la consommation d'énergies fossiles dans 37 pays non-OCDE correspondaient à 557 milliards de dollars US en 2008 (IEA, OPEC, OECD, World Bank, 2010). Ceci représente presque cinq fois la somme totale de l'aide bilatérale annuelle aux pays en développement telle que définie par le Comité d'aide au Développement de l'OCDE. Ce document décrit les hypothèses, les données et les conséquences tant environnementales qu'économiques de l'élimination de ces subsides. Il montre que, bien que l'élimination de ces subsides ne compterait que pour un septième environ de l'effort total requis pour stabiliser les concentrations de GES dans l'atmosphère à un niveau de 450 ppm, correspondant à une hausse de la température inférieure à 2°C, la totalité du bénéfice environnemental de cette option ne pourrait être atteint qu'à condition que les émissions dans les pays de l'OCDE soient simultanément sous contrainte. Enfin, malgré le fait que l'élimination de ces subsides implique des bénéfices au niveau mondial à la fois sur le plan environnemental et économique, ceci n'est pas nécessairement le cas au niveau des pays ou des régions. Le document contient aussi une analyse de la robustesse de ces résultats.
    Keywords: general equilibrium models, fossil-fuel subsidies, GHGs emissions, Subsides des énergies fossiles, modèles d'équilibre général, émissions des GES
    JEL: H23 O41 Q56
    Date: 2011–04–08
  17. By: Evdokia Moïsé; Ronald Steenblik
    Abstract: This paper provides an overview of existing measures relating to non-product-related processes and production methods (PPMs) adopted in the context of climate-change-mitigation policies, especially those linked to the life-cycle greenhouse-gas (GHG) emissions of particular products. Such domestic PPM-related requirements and schemes are important policy tools for promoting sustainable development and are aimed at addressing GHG emissions resulting from the activities involved in producing, processing and transporting the product to the final consumer. Their ostensive purpose is to promote better environmental outcomes and to ensure that domestic climate-change policies and incentives do not inadvertently undermine other environmental objectives. Even though the general objectives of the reviewed regulations and private schemes are comparable (e.g. the promotion of renewable-energy sources, or provision of information on the carbon footprint of goods), the approaches, level of detail, choices of instruments and targeted environmental characteristics vary considerably from country to country and from scheme to scheme. Some regulations rely more or less extensively on market mechanisms, attaching price premiums to certain types of products. Others introduce command-and-control provisions limiting the use of certain PPMs, variously defined in different countries. Still others target certain types of fuels eligible for public support, with varying eligibility criteria. Private schemes mainly use environmental sustainability claims to secure consumer preference. The choice of different instruments presumably entails different trade impacts. However, all of the reviewed measures and schemes are fairly new, and experience with their application and therefore their potential trade effects has so far been relatively limited.
    Keywords: trade policy, trade and environment, environmental provisions, processes and production methods
    JEL: F13 F18 N50 Q56
    Date: 2011–08–03
  18. By: Stéphanie Jamet
    Abstract: Sweden has developed an extensive and sound policy framework to limit greenhouse gas emissions. It is now one of the OECD countries with the lowest greenhouse gas emissions per capita and it has successfully managed to decouple GDP growth from emissions growth. However, as Sweden has already significantly lowered its greenhouse gas emissions, the cost of reducing them further could be very high, making it urgent to improve the cost-effectiveness of Sweden’s climate change policies. A strategy to enhance the cost-effectiveness of this policy framework would include: i) reducing differences in carbon prices between sectors and increasing even further the role of market-based instruments; ii) limiting overlap between targets and policies; iii) raising Sweden’s participation in greenhouse gas emission reductions abroad; and iv) improving the assessments of the policy framework. This Working Paper relates to the 2011 OECD Economic Survey of Sweden (<P>Améliorer le rapport coût-efficacité des politiques d'atténuation du changement climatique en Suède<BR>La Suède s’est dotée d’un cadre d’action solide et très complet pour limiter ses émissions de gaz à effet de serre. Elle figure aujourd’hui parmi les pays de l’OCDE qui affichent les plus faibles taux d’émission de gaz à effet de serre par habitant et a réussi à découpler la croissance de son PIB de celle de ses émissions. Toutefois, sachant que les émissions de gaz à effet de serre ont déjà été sensiblement réduites, le coût de nouvelles réductions pourrait s’avérer très élevé, d’où la nécessité d’améliorer d’urgence le rapport coût-efficacité des politiques de la Suède en matière de changement climatique. La stratégie envisagée pour améliorer l’efficacité-coût du cadre d’action pourrait consister à : i) réduire les différentiels de prix du carbone entre dans les différents secteurs et faire jouer encore davantage les instruments de marché ; ii) limiter les chevauchements entre objectifs et mesures ; iii) accroître la participation de la Suède aux réductions des émissions de gaz à effet de serre à l’étranger ; et iv) améliorer les évaluations du cadre d’action. Ce document de travail se rapporte à l’Étude économique de la Suède 2011 (
    Keywords: Sweden, renewable energy, climate change, carbon tax, greenhouse gas emissions, green certificates, climate change mitigation policy, Suède, changement climatique, taxes carbone, émissions de gaz à effet de serre, certificats verts, politiques d’atténuation du changement climatique
    JEL: Q48 Q54 Q58
    Date: 2011–02–09
  19. By: Balázs Égert
    Abstract: The authorities have a very ambitious environmental-policy agenda, aimed chiefly at cutting greenhouse gas (GHG) emissions but also at dealing with local air and water pollution, waste management and the conservation of biodiversity. The laws that followed the Grenelle de l?environnement encompass policy measures in energy generation, manufacturing, transport, waste management, construction and agriculture to encourage a transition towards a low-carbon economy. The government is committed to an ambitious GHG reduction objective of 75% to be achieved by 2050. This paper evaluates its policies in terms of cost effectiveness, with a special emphasis on: how to impose a unique carbon price in the aftermath of the rejection of the carbon tax by the Constitutional Council; the challenges relating to renewable and nuclear electricity generation; the ways to reduce carbon intensity in the residential and transport sectors; how to improve waste management; and whether external costs related to the use of fertilisers and pesticides are properly accounted for in water management. Whereas considerable progress has been made to “green” the economy, an important challenge that remains is to internalise global and local externalities in all sectors of the economy so as to increase the cost-effectiveness of environmental policies.
    Keywords: global warming, GHG emissions, environmental policies, carbon price, abatement cost, renewables, nuclear power, negative externalities, water pollution, waste management
    JEL: H23 Q41 Q42 Q48 Q52 Q53 Q54 Q58
    Date: 2011–04–22
  20. By: Alex Bowen; James Rydge
    Abstract: The United Kingdom started to pursue policies to reduce greenhouse gas emissions at a relatively early date and now has a comprehensive set of measures in place. It has set clear targets for emission reductions consistent with international goals of limiting global warming and has pioneered statutory underpinning of target-setting. On the international stage, it has been an active protagonist of a global deal to limit human-induced climate change. The new Government has endorsed the direction of previous policies in this area and is introducing further measures, despite heavy fiscal pressures. The United Kingdom is likely to reduce emissions by more than its near-term domestic targets and its target under the Kyoto Protocol, outperforming many OECD countries in the latter respect. But some of the success has been due to ‘one-off’ factors such as the ‘dash for gas’, reductions in non-CO2 greenhouse gases in the 1990s and the recent recession, rather than explicit climate-change policies. The pace of decarbonisation of the power sector has been slow and the spread of renewable energy technologies limited. Implicit carbon prices vary across sectors, and should be harmonized to increase the cost efficiency of policy. The unevenness partly reflects the way in which policies have proliferated and overlap and a simplified structure would be desirable. A step–change in the pace of emission reductions is required to put the UK on the path towards its ambitious 2050 target. Given the central role of the EU emissions trading scheme, a key element of the UK strategy should be to seek tighter quotas within the EU scheme. Preparations to adapt to climate impacts also need to be stepped up, focusing on the provision of more information, better risk-assessment frameworks and more advanced metrics for monitoring and evaluation of adaptation planning. This paper relates to the 2011 Economic Survey of the United Kingdom (<P>La politique climatique au Royaume-Uni<BR>Le Royaume-Uni, qui a entrepris d’adopter des mesures de réduction des émissions de gaz à effet de serre à une date relativement précoce, met aujourd’hui en oeuvre une panoplie complète de mesures. Il s’est fixé des objectifs précis de réduction des émissions, cohérents avec les objectifs internationaux de limitation du réchauffement planétaire, et a fait oeuvre de précurseur en les adossant à un socle réglementaire. Sur la scène internationale, il a joué un rôle actif en faveur d’un accord mondial visant à limiter le changement climatique d’origine anthropique. Le nouveau gouvernement a repris à son compte les orientations des politiques antérieures dans ce domaine et il introduit actuellement de nouvelles mesures, malgré la rigueur des contraintes budgétaires. Le Royaume-Uni devrait atteindre un taux de réduction de ses émissions supérieur à celui de ses objectifs nationaux à court terme et de son objectif au titre du Protocole de Kyoto, et même dépasser nombre de pays de l’OCDE quant à la réalisation de ce dernier objectif. Mais une partie de ce succès s’explique, non par des mesures explicites de politique climatique, mais par des facteurs ponctuels comme la « ruée vers le gaz » et les réductions des émissions d’autres gaz à effet de serre que le CO2 dans les années 90 et la récession récente. Le rythme de décarbonisation du secteur de l’électricité a été lent et la diffusion des technologies des énergies renouvelables est encore limitée. Les prix implicites du carbone varient selon les secteurs et devraient être harmonisés pour une meilleure efficacité économique. Ces disparités reflètent la prolifération des mesures et leur chevauchement et il serait nécessaire d’en simplifier la structure. Un changement radical dans le rythme de réduction des émissions est nécessaire pour engager le Royaume-Uni sur la voie de la réalisation de l’objectif ambitieux qu’il s’est fixé à l’horizon 2050. Étant donné le rôle central du système communautaire d’échange de quotas d’émission, la stratégie du Royaume-Uni devrait en particulier viser l’adoption de quotas plus rigoureux dans le cadre du système communautaire. Les efforts d’adaptation aux impacts climatiques doivent aussi être renforcés, en s’attachant à développer l’information, à améliorer les cadres d’évaluation des risques, et à affiner les outils de mesure utilisés pour le suivi et l’évaluation de la planification des mesures d’adaptation. Ce document se rapporte à l’Étude économique du Royaume-Uni 2011 (
    Keywords: mitigation, adaptation, climate change policy, renewable energy policy, policy interaction, policy overlap, adaptation, atténuation, politique du changement climatique, politique des énergies renouvelables, interactions des politiques, chevauchement des politiques
    JEL: Q27 Q54 Q58
    Date: 2011–08–10

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