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on Energy Economics |
| By: | Boom, Anette; Schwenen, Sebastian |
| Abstract: | We examine welfare effects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with final consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrand case, welfare is the same with all or no consumers on smart meters. -- |
| JEL: | D42 D43 D44 L11 L12 L13 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc12:66062&r=ene |
| By: | Schröder, Andreas |
| Abstract: | This article presents an electricity dispatch model with endogenous electricity generation capacity expansion for Germany over the horizon 2035. The target is to quantify how fuel price uncertainty impacts investment incentives of thermal power plants. Results point to ndings which are in line with general theory: Accounting for stochasticity increases investment levels overall and the investment portfolio tends to be more diverse. -- |
| JEL: | C63 L13 L94 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc12:62068&r=ene |
| By: | Saleheen, Khan; Farooq Ahmed , Jam; Muhammad, Shahbaz |
| Abstract: | This paper visits the relationship between electricity consumption and economic growth by incorporating trade openness, capital and labour in production function using annual data of Kazakhstan. We have applied the ARDL bounds testing and the VECM Granger causality approach to examine long run and causality relationship between the variables. Our results confirm the existence of long run relationship among the series. The empirical evidence reveals that electricity consumption adds in economic growth. Trade openness stimulates economic growth. Capital and labour promote economic growth. The causality analysis finds electricity consumption Granger causes economic growth. The feedback effect exists between Trade and economic growth. This study opens new insights for policy makers to articulate comprehensive economic, trade and energy policy to sustain long run economic growth. |
| Keywords: | Electricity; Growth; Kazakhstan |
| JEL: | Q4 |
| Date: | 2012–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43460&r=ene |
| By: | Santosh Kumar, Sahu; K., Narayanan |
| Abstract: | According to the basic law of supply and demand, as the cost of energy input rises, ceteris paribus, producer prefers to employ smaller quantity of energy input and substitute cheaper inputs for more expensive energy during the production process (Schurr, 1982; Jorgenson, 1984). Hence, the question arises whether determinants of profitability of firms differ based on different types of energy consumption. In analyzing this phenomenon for Indian manufacturing industries, this study tries to find out the determinants of profitability of firms based on three energy clusters (natural gas, petroleum and coal) of Indian manufacturing industries. This study uses data from the PROWESS database provided by the Center for Monitoring Indian Economy from 2000-2008. The finding of the study suggests that capital intensity, age of the firm and MNE affiliation of firms are the common determinants of profitability for different energy clusters in Indian manufacturing industries. However, the determinants of profitability differ for variables such as energy intensity, size of firm and R&D intensity and based on the choice of primary source of energy consumption. In the debate of CDM, climate change; shifting from traditional fuel sources to recent fuel source might help in reducing CO2 emissions, specifically for developing country such as India. Fiscal policies support to industries such as value-added tax exemption for new energy conservation products, import duty reduction and exemption for energy conservation technology might help Indian manufacturing industries to increase the profitability as well as energy efficiency. |
| Keywords: | Energy; Profitability; Cluster; Indian Manufacturing Industries |
| JEL: | B23 Q4 |
| Date: | 2011–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43457&r=ene |
| By: | Gian Gaspare Fardella (Department of Agro-Forest Systems Economics of University of Palermo) |
| Abstract: | In recent years, a considerable share of investment has been devoted to both research development and use of renewable energy sources also in our country. This is apparently due to price volatility of fossil fuels and structural energetic dependence on politically unstable countries, which create high supplying insecurity. </p> <div class="wp_content"><span> <p>Read the full text below</p> </span></div> |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:jenome:wpaper00034&r=ene |
| By: | P. Mathiou (Department of Agricultural Economics and Development Agricultural University of Athens, Greece "); Stelios Rozakis (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, Athens 11855, Greece); Rafal Pudelko (Department of Agrometeorology and Applied Informatics, Institute of Soil Sciences and Plant Cultivation (IUNG), State Research Institute, Czartoryskich 8, 24-100 Pulawy, Poland); A. Faber (Department of Agrometeorology and Applied Informatics, Institute of Soil Sciences and Plant Cultivation (IUNG), State Research Institute, Czartoryskich 8, 24-100 Pulawy, Poland) |
| Abstract: | Among measures to promote renewable energy the electricity feed-in tariff scheme is extensively used in many countries to meet the goals set by governments related to energy independence and mitigation of greenhouse effect. In this paper, an agricultural supply spatial model is run to estimate biomass plantations adoption by Polish farmers at the municipal level. Detailed spatial and agronomic information is used limiting potential areas to the less fertile land, focusing on certain land classes where research undertaken by IUNG has provided reliable estimates for willow and miscanthus cultivation needs and production yields. Decisions on multi-year land use for dedicated energy plantations replacing conventional annual crops such as rye and triticale are driven by discounted cash flow analysis. An appropriate mathematical model is built in order to estimate biomass for energy supply for a range of hypothetical prices offered by coal fueled power plants. Parametric optimization results are shown in supply curve form in order to determine efficient price levels. Results are illustrated also in terms of crop acreages as well as spatial distribution at the national level in NUTS5 resolution |
| Keywords: | Willow, Miscanthus, Cost analysis, Mathematical programming, Biomass Supply, Feed-in tariffs, Spatial analysis |
| JEL: | Q16 Q41 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:aua:wpaper:2012-2&r=ene |
| By: | Ying Liu (University of Wollongong); Kankesu Jayanthakumaran (University of Wollongong); Frank Neri (University of Wollongong) |
| Abstract: | Most climate scientists around the world are concerned about global warming. These concerns have resulted in calls for reductions in CO2 emissions over time. If these calls are to be heeded, an appropriate emissions accounting method must first be agreed upon by CO2 emitting countries, none of which are more important than China. This paper estimates China’s CO2 emissions in 2002 and in 2007 using firstly a production-based, and then a consumption-based, accounting method, both in aggregate and at the sectoral industry level. Our objectives are firstly to investigate the recent trends in Chinese emissions of CO2, and secondly to reveal the extent of the differences in the estimates produced by these two methods. Our estimates confirm what others have found, namely that Chinese emissions of CO2 increased substantially over this relatively short time period. Furthermore, the consumption-based method results in China being responsible for 38% fewer emissions in 2007 than would be the case with the production-based method. Problems caused by global warming will only be ameliorated if an acceptable worldwide distribution of responsibilities for emissions reduction efforts can be found. We believe that the consumption based method is more appropriate because it allocates responsibilities according to final consumption. |
| Keywords: | CO2 emissions, China, Accounting Methods |
| JEL: | Q01 Q53 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp12-08&r=ene |
| By: | James B. Davies (University of Western Ontario); Xiaojun Shi (Renmin University of China); John Whalley (University of Western Ontario) |
| Abstract: | Global carbon pricing can yield revenues which are large enough to create significant global pro-poor redistributive opportunities. We analyze alternative multidecade growth trajectories from 2015 to 2105 for major global economies with carbon tax rates designed to stabilize emissions in the presence of both continued country growth and autonomous energy use efficiency improvement. In our central case analysis, revenues from globally internalizing carbon pricing rise to 8% and then fall to 6% of gross world product. High growth in India and China reduces global inequality and poverty strongly over time, but important incremental redistributive effects can be achieved using global carbon pricing revenues. Taking into account both between-country effects and previous literature estimates of within-country effects, a global carbon tax alone tends to be regressive in its global incidence. However, if its revenues are redistributed globally via equal per capita transfers, in our central case the Gini coefficient for world income falls by about 3% and the share of the bottom decile rises by 81% on average from 2015 to 2105. The population living in poverty falls by 16% in 2015. Going further, global poverty could be eliminated entirely by 2015 according to our calculations if one third of global carbon tax revenues were redistributed directly to the poorest individuals. |
| Keywords: | Carbon Pricing; Gini; Poverty Reduction; Millennium Development Goals |
| JEL: | O19 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uwo:epuwoc:20127&r=ene |
| By: | Amnon Levy (University of Wollongong) |
| Abstract: | A rule for setting a tax on carbon emissions to limit their atmospheric stock to a predetermined level is developed for a world inhabited by uncoordinated, myopic, expected utility maximizing agents. In all locations, the mean of the marginal product of the carbon emitting input diminishes and the variance increases as climate deteriorates. The rule is illustrated for a world divided into poor countries and rich countries. The poor countries’ costs of non-compliance with the tax, in terms of per capita utility loss from diminished reputation, are negligible. The rich countries' costs of non-compliance and, consequently, inclination to pay the globally set tax can be substantial but not identical. The number of complying rich countries decreases with the tax level, but at a rate that is moderated by the range of the rich countries’ loss of per capita utility from abstinence. |
| Keywords: | Carbon Emissions; Climate Change; Uncertainty; Tax; Compliance |
| JEL: | Q52 Q54 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uow:depec1:wp12-09&r=ene |
| By: | Roeder, Kerstin; Habla, Wolfgang |
| Abstract: | We analyze the German ecotax package in a model of overlapping generations and majority voting. The package consists of the ecotax rate and the budgetary rule which assigns a fraction of the tax revenue to the reduction of pension contributions while holding pension benefits constant. The old and the young generation have different preferences with respect to the tax rate and the use of the tax revenue. Our theoretical model as well as the calibration of our model show that the median voter s preferred tax rate may well exceed the efficient tax rate whenever his income is sufficiently high. This is the likelier the more CO2 is degraded and removed from the atmosphere. Furthermore, the median voter prefers earmarking of tax revenue to reductions in pension contributions. The latter is quite an accurate prediction of the situation in Germany where the share of tax revenue devoted to the pension scheme amounts to more than 90%. -- |
| JEL: | H23 H55 D78 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc12:62060&r=ene |
| By: | Ramón López; Sang Won Yoon |
| Abstract: | The standard theoretical literature has shown that environmental sustainability and positive economic growth are not incompatible as long as environmental policies are optimal. However, in showing this result earlier studies have relied on strong assumptions that may appear to charge the dice in favor of such result. Here we show that once the role of the consumption composition effect is recognized, environmentally sustainable economic growth may exist even if some of the most questionable assumptions used by the canonical models are relaxed. In particular, we show that sustainable growth is possible even if environmental and man-made factors of production are complement rather than highly substitutable as has been invariably assumed by the literature and even if technological change is entirely pollution-augmenting. |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp375&r=ene |