nep-ene New Economics Papers
on Energy Economics
Issue of 2012‒04‒17
28 papers chosen by
Roger Fouquet
Basque Climate Change Centre, Bilbao, Spain

  1. Externalities, Internalities, and the Targeting of Energy Policy By Hunt Allcott; Sendhil Mullainathan; Dmitry Taubinsky
  2. Environmentally Related Energy Taxes in Argentina, Bolivia and Uruguay By Navajas, Fernando H.; Panadeiros, Monica; Natale, Oscar
  3. The Impact of Carbon Pricing on Wholesale Electricity Prices, Carbon Pass-Through Rates and Retail Electricity Tariffs in Australia. By Phil Wild; William Paul Bell; John Foster
  4. Newfoundland's Electricity Options: Making the Right Choice Requires and Efficient Pricing Regime By James P. Feehan
  5. Toward a More Efficient and Innovative Electricity Sector in Russia By Douglas Cooke; Alexander Antonyuk; Isabel Murray
  6. Progress and issues in rural electrification in Bihar, India : a preliminary analysis By Oda, Hisaya
  7. Progress Implementing the IEA 25 Energy Efficiency Policy Recommendations: 2011 Evaluation By Sara Pasquier; Aurelien Saussay
  8. Spreading the Net: The Multiple Benefits of Energy Efficiency Improvements By Lisa Ryan; Nina Campbell
  9. Energy Consumption and Economic Growth in China: A Reconciliation By A. Talha Yalta; Hatice Cakar
  10. Direct and indirect energy consumption in China and the United States By LIU, H.; POLENSKE, K. R.; GUILHOTO, J. J. M.; XI, Y.
  11. A Macroeconomic Analysis of Energy Subsidies in a Small Open Economy: The Case of Egypt By Gerhard Glomm; Juergen Jung
  12. A Recipe for Success? Randomized Free Distribution of Improved Cooking Stoves in Senegal By Gunther Bensch; Jörg Peters
  13. Albania: Arcane setback in growth By Mario Holzner
  14. Adaptation and Innovation: An Analysis of Crop Biotechnology Patent Data By Shardul Agrawala; Cécile Bordier; Victoria Schreitter; Valerie Karplus
  15. The national bioenergy investment model: Technical documentation By Kemp-Benedict, Eric
  16. Green Jobs in Tennessee: Economic Impact of Green Investments By Murat Arik
  17. North Dakota Lignite Energy Industry's Contribution to the State Economy for 2011 and Projected for 2012 By Coon, Randal C.; Bangsund, Dean A.; Hodur, Nancy M.
  18. Oil and Agriculture in the Post-Separation Sudan By Siddig, Khalid H.A.
  19. Konsenschancen des energietechnologischen Paradigmenwechsels: Das Beispiel der Wasserstoff- und Brennstoffzellentechnologie By Krstacic-Galic, Ante; Marz, Lutz
  20. Energiewende ohne Markt? Ordnungspolitische Perspektiven für den deutschen Stromsektor By Wrobel, Ralph
  21. Non-Homothetic Growth Models for the Environmental Kuznets Curve By Katsuyuki Shibayama; Iain Fraser
  22. Dynamic regulation of nonpoint source pollution when the number of emitters is large By Tsur, Yacov; de Gorter, Harry
  23. Regional Cooperation towards Green Asia: Trade and Investment By Kalirajan, Kaliappa
  24. A methodology of estimation on air pollution and its health effects in large Japanese cities. By Hirota, Keiko; Shibuya, Satoshi; Sakamoto, Shogo; Kashima, Shigeru
  25. An Assessment of the Impact of the Introduction of Carbon Price Signals on Prices, Production Trends, Carbon Emissions and Power Flows in the NEM for the period 2007-2009. By Phil Wild; William Paul Bell; John Foster
  26. An Experimental Analysis of Compliance in Dynamic Emissions Markets By John K. Stranlund; James J. Murphy; John M. Spraggon
  27. CCS Retrofit: Analysis of the Globally Installed Coal-Fired Power Plant Fleet By Matthias Finkenrath; Julian Smith; Dennis Volk
  28. India’s Turn in Climate Policy: Assessing the Interplay of Domestic and International Policy Change By Joachim Betz

  1. By: Hunt Allcott; Sendhil Mullainathan; Dmitry Taubinsky
    Abstract: We show how the traditional logic of Pigouvian externality taxes changes if consumers under-value energy costs when buying energy-using durables such as cars and air conditioners. First, with undervaluation, there is an "Internality Dividend" from externality taxes: aside from reducing the provision of public bads, they also reduce allocative inefficiencies caused by consumers' underinvestment in energy efficient durables. Second, although Pigouvian taxes are clearly the preferred policy mechanism when externalities are the only market failure, undervaluation provides an "Internality Rationale" for alternative policies such as product subsidies that reduce the relative price of energy efficient durables. However, when some consumers misoptimize and others do not, a crucial quantity for policy analysis is the average marginal internality: the extent to which a policy preferentially targets misoptimizing consumers. As an example of the importance of the average marginal internality, we carry out a randomized field experiment to provide rebates for energy efficient lightbulbs and illustrate how the welfare effects of the rebate depend significantly on whether consumers that undervalue energy costs are more or less elastic.
    JEL: D03 D04 D11 H21 H22 H23 L51 L62 L97 Q41 Q48
    Date: 2012–04
  2. By: Navajas, Fernando H.; Panadeiros, Monica; Natale, Oscar
    Abstract: We start addressing the performance of environmentally related taxes in Argentina, Bolivia and Uruguay and find differences in level and structure with OECD countries but with the common feature that energy taxes are prime contributors. We then model an energy tax reform process out a status quo and towards environmentally related excises, distinguishing between uniform and non-uniform tax components, positive and normative tax structures, and between non-Ramsey and Ramsey specifications. We implement the model after some effort to estimate local and global environmental costs related to energy consumption. We find a rebalancing of fuel taxes (where gasoline and diesel are main drivers) that is robust to the range of price-demand elasticity and environmental cost parameters. Environmental (almost local) gains of the reform are significant, while fiscal impacts are positive and large but do not allow to claim double dividend effects because of price increases of widespread energy inputs triggered by the reform exercise. In the case of Argentina and Bolivia pre-existing distortions in energy prices imply large increases in end-user prices to accommodate not only tax increases but also corrections of producer prices. The assessment of the distributional impact of tax reforms depends on its type (Non Ramsey vs. Ramsey) and on considering environmental benefits to compensate for negative price effects. A Non-Ramsey tax reform has a positive distributive impact in Uruguay, while large pre-existing price distortions tend to produce negative impacts in Argentina and Bolivia. Overall we recommend non-Ramsey taxes as they are more transparent and easy to implement, avoid inverse-elasticity effects on tax wedges that have nothing to do with environmental costs and have better distributional properties. Moving to multiple instruments is also recommended to integrate other externalities, deal with informality and cope with distributive impacts.
    Keywords: environmental taxes; energy; tax models
    JEL: Q40 Q51 H23
    Date: 2011–12–02
  3. By: Phil Wild (Department of Economics, University of Queensland); William Paul Bell (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: The purpose of this article is to investigate the impact that the introduction of a carbon price signal will have on wholesale electricity prices, carbon-pass-through rates and retail electricity rates in the states making up the Australian National Electricity Market (NEM). In order to assess this, we employ an agent based model of the NEM called the ANEM model which contains many of the salient features of the NEM: intra-state and inter-state transmission branches, regional location of generators and load centres and accommodation of unit commitment features. A DC OPF algorithm is used to determine optimal dispatch of generation plant and wholesale prices within the ANEM model. We utilise ANEM model scenario runs to examine the impact of carbon prices on wholesale prices and carbon passthrough rates. This information is then used to assess the impact on retail electricity tariff rates and shares of cost components making up residential retail tariff rate structures for different states in the NEM.
    Keywords: Electricity Markets, Carbon Trading
    JEL: Q40
    Date: 2012–03
  4. By: James P. Feehan (Memorial University)
    Abstract: The Government of Newfoundland and Labrador is assessing whether to authorize the multi-billion dollar Muskrat Falls hydroelectricity project on the lower Churchill River in Labrador. Proponents say it is needed to handle expected increases in electricity consumption. A better first step, however, would be to reform provincial regulations that set artificially low prices for electricity and support excessive power consumption, which is a problem in Newfoundland as it is in other provinces. Changing regulatory regimes so that the price of electricity reflects underlying costs would make economic sense and promote energy conservation. For Newfoundland, such a change could make the expensive Muskrat Falls project unnecessary.
    Keywords: Economic Growth and Innovation, Governance and Public Institutions, Water Series, Province of Newfoundland, electricity, hydro, pricing, Newfoundland and Labrador Hydor (NLH), Nalcor Energy, Muskrat Falls Plan (MFP), Isolated Island Option (IIO)
    JEL: Q2 L9
    Date: 2012–01
  5. By: Douglas Cooke; Alexander Antonyuk; Isabel Murray
    Abstract: Russia is in the process of one of the most ambitious electricity sector reforms ever undertaken, reflecting the importance of an efficient and reliable electricity sector for promoting economic activity, growth and community prosperity. However, the outcome remains uncertain at this stage. Electricity reform is entering a critical phase in Russia. Hence, the IEA is updating its original work [Russian Electricity Reform: Emerging Challenges and Opportunities, see]. <P>The new study will outline trends and progress since 2005, and will examine the key remaining challenges drawing on the experience of IEA member countries to inform the analysis as appropriate. It is being undertaken in consultation with key Russian stakeholders to ensure the analysis reflects a sound, evidence-based understanding of the key issues. <P>This paper outlines some key issues and preliminary views emerging from IEA analysis and consultations to date, and is provided to facilitate more effective consultation and dialogue with key stakeholders. The IEA would welcome comments on the issues and questions raised in this document, or any other observations stakeholders may wish to raise that may be of relevance to this study. <P>Please forward any written comments in English or Russian to Comments would be gratefully received before close of business, Monday 30 April 2012. <P>Any other questions in relation to this project should be directed to Douglas Cooke, Project Leader ( or Isabel Murray, Russia Programme Manager (
    Date: 2012–03–23
  6. By: Oda, Hisaya
    Abstract: Rural electrification has been an important part of government policy since India gained independence. However, despite the number of electrified villages expanding rapidly in recent years, there are many that still remain un-electrified. This paper addresses the issue of intra-state disparity in access to electricity and examines the determinants of electrification at the village level using data from a survey conducted in rural Bihar, one of the underdeveloped states in India. An econometric analysis demonstrates that small villages in remote locations tend to be considered a low priority in the process of electrification. Electrification at the village level in the more advanced states is no longer an issue, though the challenge of access to electrification at the household level remains. This paper also discusses issues that emerged from interviewing villagers and visiting rural areas, and shows that the actual progress of rural electrification may not be as advanced as government statistics indicate.
    Keywords: India, Electric power, Rural societies, Rural electrification, Bihar
    JEL: H41 O20 Q40
    Date: 2012–03
  7. By: Sara Pasquier; Aurelien Saussay
    Abstract: Concerns about energy security, climate change and rising energy costs make it imperative for all countries to significantly improve their energy efficiency. To assist them in doing so, the IEA has proposed 25 energy efficiency policy recommendations. These recommendations could, if implemented globally without delay, reduce global CO2 emissions by as much as 7.6 giga tonnes (Gt) CO2/year by 2030 - almost 1.5 times the current annual carbon dioxide (CO2) emissions of the United States.<P>Yet are IEA member countries doing enough to capture the full potential benefits from energy efficiency policy? This innovative report provides the second assessment of IEA member countries' progress with implementing energy efficiency policy. Using a rigorous evaluation process, it finds that there have been significant energy efficiency policy developments since the last evaluation conducted in 2009. In particular, IEA member countries have implemented many policies in the transport, appliance and lighting sectors that were only planned in 2009. Nevertheless, IEA member countries still have significant unexploited energy savings opportunities that could be achieved with additional energy efficiency policy implementation.
    Date: 2012–03–05
  8. By: Lisa Ryan; Nina Campbell
    Abstract: Improving energy efficiency has long been advocated as a way to increase the productivity and sustainability of society, primarily through the delivery of energy savings. The impact of energy efficiency measures can go far beyond energy savings, and energy efficiency improvements can be an important contributor to economic growth and social development.<P>Benefits attributed to the implementation of energy efficiency measures range from localised benefits, such as energy affordability, improved health, wellbeing and social development, to sectoral benefits, such as industrial productivity, improved asset values and reduced environmental damage. Macroeconomic outcomes such as national competitiveness, jobs, consumer surplus and energy security, as well as poverty alleviation and greenhouse gas (GHG) mitigation in both developed and developing countries, are further associated with energy efficiency measures. Significant evidence is emerging on the extent to which these outcomes stem from energy efficiency policies. At the same time, evaluation experts are beginning to explore ways to quantify them so that they can be more readily assessed alongside energy savings. Expanding evaluation to such matters could offer a new perspective on energy efficiency measures and, by improving the cost/benefit assessment of energy efficiency programs, could help decision-makers reconcile perceived trade-offs between supporting economic growth and reducing energy use.<P>This paper makes a preliminary assessment of the scope of the most significant of the multiple benefits and discusses the potentially large implications for energy efficiency policy as part of a wider socioeconomic strategy.
    Date: 2012–03–29
  9. By: A. Talha Yalta; Hatice Cakar
    Date: 2012–04
  10. By: LIU, H.; POLENSKE, K. R.; GUILHOTO, J. J. M.; XI, Y.
    Abstract: Greenhouse gas reduction and energy consumption are becoming two important issues in both industrialized and developing countries, and policy makers are developing means to reduce total domestic energy use. We evaluate and compare the direct and the indirect energy consumption both in the People’s Republic of China (China) and the United States of America (US) by looking at a series of hybrid energy input-output tables (1997, 2002, and 2007). We also apply structural decomposition analysis (SDA), to identify the factors causing energy intensity (energy consumption per unit of gross domestic product) to differ between the two countries, which lead to potential energy-saving options. Our results show that, besides the differences in direct energy consumption, huge differences also exist in indirect energy consumption between the two countries. Differences in indirect energy consumption are mainly due to differences in technology. Technological change and industrial-structure change are key factors to explain the inequality of energy intensity, while there is a significant trend towards the convergence of sectorial energy efficiency between the two countries.
    Keywords: Input-output analysis; Structural decomposition analysis; Energy
    JEL: D57 Q4
    Date: 2011
  11. By: Gerhard Glomm (Indiana University); Juergen Jung (Towson University)
    Abstract: We construct a dynamic general equilibrium model to analyze the effects of large energy subsidies in a small open economy. The model pays special attention to domestic energy production and consumption, trade in energy at world market prices, as well as private and public sector production including the provision of public infrastructure. The model is calibrated to data from Egypt and then used to study policy reforms such as reductions in energy subsidies with corresponding reductions in consumption taxes, labor taxes, capital taxes, or increases in infrastructure investment. We calculate the new steady states, the transition paths to the new steady state and the size of the associated welfare losses or gains. In response to a 15 percent cut in energy subsidies, GDP may fall as less energy is used in production. Excess energy is exported and capital imports are reduced. Welfare in consumption equivalent terms can rise by up to 0.6 percent of GDP. Gains in output can be realized only if the government re-invests into infrastructure.
    Date: 2012–04
  12. By: Gunther Bensch; Jörg Peters
    Abstract: Today more than 2.7 billion people rely on biomass as their primary cooking fuel, with profound implications for the environment and people’s well-being. Wood provision is often time-consuming and the emitted smoke has severe health effects – both burdens that afflict women in particular. The dissemination of Improved Cooking Stoves (ICS) is frequently considered an eff ective remedy for these problems. This paper evaluates the take-up of ICS and their impacts through a randomized controlled trial in rural Senegal. Although distributed for free, the ICS are used by almost 100 % of households. Furthermore, we find substantial effects on firewood consumption, eye infections, and respiratory disease symptoms. These findings substantiate the increasing efforts of the international community to improve access to improved cooking stoves and call for a more direct promotion of these stoves.
    Keywords: Impact evaluation; randomized controlled trial; respiratory disease symptoms; energy access
    JEL: C93 D12 O13 Q41
    Date: 2012–03
  13. By: Mario Holzner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: For Albania, we expect GDP growth of 1.9% in 2011 and 2.2% in 2012 respectively and a stronger increase to 2.6% in 2013 and 3.4% in 2014, the latter due to the election cycle and induced populist government spending. The assumption is that the government has no problems financing fiscal expansion, that heavy rainfall in early 2012 will bring the vital electricity production back to normal and that export growth will continue despite the eurozone crisis (also with the help of further increasing crude oil export production capacities); remittances will tend to stabilize or at least fall at a slower pace as further unemployment in Greece might rather hit the public sector, where Albanians are not employed. Obviously, the risks are on the downside, very much so.
    Date: 2012–03
  14. By: Shardul Agrawala; Cécile Bordier; Victoria Schreitter; Valerie Karplus
    Abstract: Innovation in technologies that promote mitigation and adaptation will be critical for tackling climate change. It can decrease the costs of policy measures and provide new opportunities for the private sector. However, most discussions of innovation have focused on mitigation, while little attention has been paid to innovation for adaptation. This paper uses agricultural crop biotechnology as a case study of innovative activity. The agricultural sector is considered to be particularly vulnerable to climate change, in addition to facing the pressures of meeting the demands of a rising world population. Innovation in plant breeding to develop crop varieties that are more resilient to climate change impacts is one of several possible adaptation options for agriculture. This paper neither advocates nor discourages the use of biotechnology, but focuses on providing estimates of the level and trends of innovation in this field.
    Keywords: innovation, agriculture, patents, climate change, adaptation, biotechnology, innovation, agriculture, brevets, changement climatique, adaptation, biotechnologie
    JEL: O39 Q16 Q54
    Date: 2012–03–26
  15. By: Kemp-Benedict, Eric
    Abstract: The National Bioenergy Investment Model is a scenario model that simulates the decisions of domestic and international investors on whether to invest in biofuel enterprises in a developing country. In the model, investors compare the profitability of different biofuel feedstock and fuel operations using a riskadjusted discount rate – taking market, currency, country and sector risks into account. Prices for biofuels and feedstocks are determined in part through exogenous international prices and in part through a dynamic, equilibrium-seeking price adjustment mechanism. The model is intended to be used within a participatory scenario exercise, and can be run interactively.
    Keywords: disequilibrium; investment; simulation; scenario model; FDI; ICAPM; biofuel; agriculture
    JEL: G11 O16 C61
    Date: 2012
  16. By: Murat Arik
    Abstract: The term green jobs has been widely used to describe jobs in businesses that are particularly related to renewable energy, energy efficiency, or environmental sustainability. The Business and Economic Research Center has partnered with the Tennessee Department of Labor and Workforce Development to estimate the economic impact of six ground-breaking green investments in Tennessee: Hemlock Semiconductor, Wacker Chemie AG, Volkswagen, Nissan Leaf and Storage Battery Manufacturing, Tennessee Solar Institute and West Tennessee Solar Farm, and eTec Battery Charging Stations. The purpose of this study is to estimate the economic impact of the investments on Tennessee's economy. This study addresses the following major research questions: Where can the six major green investments be classified within the national and local green activity frameworks? How many green jobs will be created with these investments? What are the major occupations associated with these green investments?
    Keywords: green jobs, investment, Tennessee, economic impact, workforce, job creation, Hemlock Semiconductor, Wacker Chemie AG, Nissan Leaf manufacturing, Nissan Leaf storage battery manufacturing, Tennessee Solar Institute, West Tennessee Solar Farm, eTec Battery charging stations, Volkswagen
    Date: 2011–06
  17. By: Coon, Randal C.; Bangsund, Dean A.; Hodur, Nancy M.
    Keywords: Community/Rural/Urban Development, Public Economics,
    Date: 2012–03
  18. By: Siddig, Khalid H.A.
    Abstract: The Comprehensive Peace Agreement (CPA), which was signed by the government of Sudan and the Sudanese People’s Liberation Movement (SPLM) ended more than 20 years of civil war. According to the CPA, the Sudan’s government has 50% of the oil exploited from the wells existing in the south in addition to the oil produced from the northern wells. The latter represents about 30% of the total oil production in Sudan. In January 2011, the people in southern Sudan have voted for separation from the Sudan and in July 2011 the Republic of South Sudan was officially announced as Africa’s newest state. Now the CPA period is over and the south possesses its entire production of oil, but need to use the export infrastructure that exists in the north to export it. For that the south need to pay fees and customs for which the exact amounts need to be further negotiated. Sudan would lose a huge part of its revenue from oil, which constituted a growing share in its trade, government revenue and GDP during the last decade. This paper tries to investigate the consequences of separation on the Sudan’s economy. A regional general equilibrium model with Africa database of the Global Trade Analysis Project (GTAP) is applied. Results show that the entire economy would be hit when a 20% cut in oil output is simulated. The study introduces the non-oil exports of the agricultural sector as an alternative to oil and recommends enhancing the efficiency in agriculture and promoting agricultural exports to gradually bring the economy back on track.
    Keywords: oil, agriculture, Sudan, South Sudan, separation, CGE modelling, Agricultural and Food Policy, Crop Production/Industries, Food Security and Poverty, International Relations/Trade, Labor and Human Capital, Land Economics/Use, Production Economics, Productivity Analysis, C6, D5, D6, F1, F2, H5, N5,
    Date: 2012–04
  19. By: Krstacic-Galic, Ante; Marz, Lutz
    Abstract: Im 21. Jahrhundert wird sich weltweit eine neue industrielle Revolution vollziehen. Kern dieser Revolution ist ein energietechnologischer Paradigmenwechsel, weg von fossilen hin zu regenerativen Energietechnologien. Dieser Paradigmenwechsel stellt die Politik nicht nur vor eine Vielzahl neuer Probleme, sondern bietet ihr auch eine ganze Reihe von Chancen. Eine dieser Chancen besteht darin, festgefahrene energiepolitische Dissense aufzulösen, indem über die Entwicklung und Nutzung neuer Energietechnologien auch neue energiepolitische Konsense gesucht und erarbeitet werden. In der vorliegenden Arbeit wird untersucht, welche Konsenschancen sich aus einer der Schlüsseltechnologien des energietechnologischen Paradigmenwechsels, und zwar der Wasserstoff- und Brennstoffzellentechnologie, ergeben. Im Mittelpunkt der Untersuchung stehen dabei idealtypische Konsenspfade, vielgestaltige Konsensagenturen und die von diesen Agenturen erarbeiteten unterschiedlichen Konsenstypen. Dabei zeigt sich, dass die aus der Wasserstoff- und Brennstoffzellentechnologie erwachsenden Konsenschancen zugleich stabil und fragil sind. -- In the course of the 21st century, a new global Industrial Revolution is expected to take place. An energy-technological paradigm shift away from fossil fuel to regenerative energy technologies will play a decisive role in this Revolution, bringing with it not only new problems for policy makers, but also new opportunities. One area which could profit greatly from this paradigm shift is that of energy policy, where a point of stagnation has been reached. By developing and implementing new energy technologies, a new consensus in energy policy could be achieved. This paper analyses the prospects of such a consensus by examining one of the key technologies in the energy technology paradigm shift: hydrogen and fuel-cell technology. Central to the study are the ideally typical paths of consent, multifaceted consensus agencies and the various consensual types. The study reveals that the chances for consensus emerging from new hydrogen and fuel-cell technology are simultaneously stabile as well as fragile.
    Date: 2011
  20. By: Wrobel, Ralph
    Abstract: Durch die Katastrophe von Fukushima im Frühjahr 2011 ist ein beschleunigter Atom-ausstieg in Deutschland beschlossen worden. Parallel steigen die Öl- und Benzin-preise dramatisch aufgrund der politischen Instabilität in der arabischen Welt. Grund genug für eine grundlegende Energiewende mit neuer staatlich gelenkter Energiepo-litik? Grundsätzlich ja, aber warum ohne Markt? Der deutsche Energiemarkt besteht aus mehreren miteinander verbundenen Märkten, dem für Strom, für Heizenergie (insbesondere Heizöl und Gas) und für Mobilitätsenergie (Benzin etc.). Diese sind größtenteils durch regionale Monopole, Oligopole oder Netzstrukturen gekennzeich-net. Enorme staatliche Eingriffe wie Subventionen und Regulierungen ergänzen das Bild. Schnelle und effiziente Anpassungen sind in einem solchen Innovationssystem nicht zu erwarten. Auch die von Bundeskanzlerin Merkel eingesetzte Energie-Kommission hat keine entsprechenden Vorschläge gemacht. Diese sind zudem noch nicht alle umgesetzt. Deutschland braucht daher ein marktwirtschaftliches Energie-konzept. Die Ordnungspolitik, basierend auf der Marktordnung Walter Euckens, ist in der Lage ein solches marktwirtschaftliches Konzept für die Energiewende in Deutsch-land bereitzustellen. Wie es für den Stromsektor aussehen kann, wird hier diskutiert. --
    Keywords: Energiemärkte,Soziale Marktwirtschaft
    Date: 2011
  21. By: Katsuyuki Shibayama; Iain Fraser
    Abstract: In this paper, we study the impact of the economic growth on the environment. First, we show that, at each income level, eta determines the direction of environmental degradation, where eta is the elasticity of substitution between consumption and the environment. That is, for eta large enough, as income increases people accept environmental degradation by enjoying more consumption as compensation, and vice versa. Intuitively, there are two effects operating; the income effect encourages the demand for better environmental quality simply because the environment is a normal good, whereas the substitution effect discourages it because maintaining the environment becomes more expensive as technology improvement increases the production of the general consumption good per unit of emission. The strength of the substitution effect is governed by eta. Hence, the impact of economic growth on the environment crucially depends on eta. Second, we demonstrate that exponential utility generates the environmental Kuznets curve (EKC) under a wide class of models without adding any other peculiar assumptions. Under exponential utility, eta is decreasing in income; intuitively, when a country is poor (large eta), people seek more consumption at the cost of environmental degradation, but, once it becomes rich enough (small eta), they seek increased environmental quality.
    Keywords: Environmental Kuznets Curve; Economic Growth; Non-Homothetic Preferences; Generalized Isoelastic Preferences
    JEL: O13 Q56
    Date: 2012–02
  22. By: Tsur, Yacov; de Gorter, Harry
    Abstract: When a nonpoint source pollution process involves many polluters, each taking his own contribution to aggregate pollution to be negligi- ble, ambient-based policies become ineffective due to lack of strategic interactions between dischargers. We offer a regulation mechanism for this case. The mechanism consists of inter-period and intra-period com- ponents. The first exploits ambient (aggregate) information to derive the optimal pollution and aggregate emission processes and the ensuing social price of emission. The intra-period mechanism takes as given the social price of emission and implements the optimal output-abatement- emission allocation across the heterogenous, privately informed firms in each time period. The mechanism gives rise to the full information outcome when the social cost of transfers is nil. A positive social cost of transfers decreases both output and abatement in each time period, though the effect on emission is ambiguous.
    Keywords: Nonpoint source pollution, abatement, stock externality, dynamic regulation, Markov decision process, asymmetric information, Crop Production/Industries, C61, D82, H23, L51, Q58,
    Date: 2012
  23. By: Kalirajan, Kaliappa (Asian Development Bank Institute)
    Abstract: Growth led by low-carbon goods and services (LCGS) is an imperative for the countries of Asia and the Pacific, and particularly for emerging Asian economies, which are heavily dependent on imported energy and resources. The objectives of this study are to (i) measure the potential of major emerging Asian economies for exports in LCGS under the "grand coalition," partial coalition, and stand-alone scenarios; (ii) measure the impact of existing "behind the border" constraints on potential exports in emerging Asian economies; (iii) identify the potential, options, and challenges with respect to a grand coalition scenario; and (iv) find ways to improve the contribution of public–private partnerships to LCGS.
    Keywords: low carbon goods services; emerging asian economies; energy; public private partnerships; trade environment; green growth
    JEL: Q56 Q58 R11
    Date: 2012–04–11
  24. By: Hirota, Keiko; Shibuya, Satoshi; Sakamoto, Shogo; Kashima, Shigeru
    Abstract: The correlation between air pollution and health effects in large Japanese cities presents a great challenge owing to the limited availability of data on the exposure to pollution, health effects and the uncertainty of mixed causes. A methodology for quantitative relationships (between the emission volume and air quality, and the air quality and health effects) is analysed with a statistical method in this article; the correlation of air pollution reduction policy in Japan from 1974 to 2007. This chapter discusses a step-by-step methodology of determining the direct correlation between emission volumes, air quality, and health effects. The relationship between total emissions (NOx, PM) (from both stationary and mobile sources) and air quality (NO2, TSP) was found to be significant. The correlation analysis of emission volume, and air quality suggests that NOx and PM levels worsen according to increases in NO2. When the correlation between the air pollutant and the type of health effect (certified, mortality, recovery, and newly registered) was examined according to the certified area, an inverse relationship was observed. The relationship between air quality (NO2) and health effect was found to be significant. When NO2 worsens, certified patients, mortality rates and newly certified patients increase, according to the data from 1989 to 2007 with dummy variable analysis.
    Keywords: Air pollution; Health Effect; Japan; The Pollution-Related Health Damage Prevention System; Certified patients
    JEL: C10 I18 Q51 P28 C80
    Date: 2011–10–01
  25. By: Phil Wild (Department of Economics, University of Queensland); William Paul Bell (Department of Economics, University of Queensland); John Foster (Department of Economics, University of Queensland)
    Abstract: There has been significant debate about the potential role that supply side and demand side policy initiatives might exert upon key participants within the National Electricity Market (NEM) in attempts to curb growth in carbon emissions. From the perspective of supply side policy initiatives, most debate and analysis has been focused upon assessing the impact that a ‘Cap-&-Trade’ carbon trading scheme, and more recently, a carbon tax scheme, might have on changing marginal cost relativities in order to promote increased dispatch and investment in less carbon emissions intensive types of generation technologies including gas-fired generation and renewable generation technologies. However, with any forthcoming move towards a carbon constrained economy, there are many uncertainties over policy settings that are required to achieve the environmental goal of reduced greenhouse gas emissions and about the resulting impact on the National Electricity Industry more generally. A complete understanding of the impacts on the electricity industry of carbon abatement policies requires that new renewable technology proposals be incorporated in a model containing many of the salient features of the national wholesale electricity market. These features include intra-regional and inter-state trade, realistic transmission network pathways, competitive dispatch of all generation technologies with price determination based upon marginal cost and branch congestion characteristics. It is only under such circumstances that the link between carbon emission reductions and generator based fuel switching can be fully explored and the consequences for carbon emission reductions and changes in wholesale and retail electricity prices can be determined.
    JEL: Q40
    Date: 2012–03
  26. By: John K. Stranlund (Department of Resource Economics, University of Massachusetts Amherst); James J. Murphy (Department of Economics, University of Alaska Anchorage); John M. Spraggon (Department of Resource Economics, University of Massachusetts Amherst)
    Keywords: Compliance, Enforcement, Emissions trading, Laboratory experiments, Permit markets, Permit banking
    JEL: C91 L51 Q58
    Date: 2011
  27. By: Matthias Finkenrath; Julian Smith; Dennis Volk
    Abstract: Electricity generation from coal is still growing rapidly and energy scenarios from the IEA expect a possible increase from today's 1 600 GW of coal-fired power plants to over 2 600 GW until 2035. This trend will increase the lock-in of carbon intensive electricity sources, while IEA assessments show that two-thirds of total abatement from all sectors should come from the power sector alone to support a least-cost abatement strategy. Since coal-fired power plants have a fairly long lifetime, and in order to meet climate constraints, there is a need either to apply CCS retrofit to some of today's installed coal-fired power plants once the technology becomes available. Another option would be to retire some plants before the end of their lifetime. This working paper discusses criteria relevant to differentiating between the technical, cost-effective and realistic potential for CCS retrofit. The paper then discusses today's coal-fired power plant fleet from a statistical perspective, by looking at age, size and the expected performance of today's plant across several countries. The working paper also highlights the growing demand for applying CCS retrofitting to the coal-fired power plant fleet of the future.<P>In doing so this paper aims at emphasising the need for policy makers, innovators and power plant operators to quickly complete the development of the CCS technology and to identify key countries where retrofit applications will have the biggest extent and impact.
    Keywords: Poland, Japan, Germany, Australia, United States, Asia, Russia, India, China, South Africa, coal, CCS, CO2 emissions, retrofit, CCS retrofit, retrofit potential, CCS retrofit potential, CCS ready, CO2, climate targets, 450ppm, lock-in, coal-fired power plants, power plants, generation capacity, World Energy Outlook, New Policies Scenario, Energy Technology Perspectives, Republic of Korea
    Date: 2012–03–29
  28. By: Joachim Betz (GIGA German Institute of Global and Area Studies)
    Abstract: India has long been regarded as a deal-breaker in international climate negotiations; it was at the summit in Copenhagen that India first abandoned its old strategic line and made a commitment to reduce carbon emissions voluntarily. This shift was accompanied by a proliferation of domestic initiatives to save energy, to develop regenerative energies, etc. Traditional IR approaches remain insufficient to explain this policy shift – which is the aim of this paper – insofar as they fail to adequately take into account the fact that climate policies have to confront two audiences: a domestic and an international one, each presenting different tactical necessities for official reaction. On the international front, we argue that globally, India intended to be perceived as a responsible actor, one deserving of a greater say in global governance matters. On the domestic level, shrinking national energy reserves and mounting import dependence made the co-benefit of energy saving in reducing greenhouse gas emissions evident. The shift was made easier because important business associations aligned with a more eco-friendly development perspective and because the reduction commitments made by the Indian government on an international stage did not demand very stringent domestic emission reductions.
    Keywords: India, climate policies, greenhouse gas emissions, international climate summits, strategy shift, energy saving
    Date: 2012–03

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