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on Energy Economics |
| By: | Enrica De Cian (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Fabio Sferra (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Massimo Tavoni (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy) |
| Abstract: | This paper examines the dynamics of energy investments and clean energy Research and Development (R&D) using a scenario-based modeling approach. Starting from the global scenarios proposed in the RoSE model ensemble experiment, we analyze the dynamics of investments under different assumptions regarding economic and population growth as well as availability of fossil fuel resources, in the absence of a climate policy. Our analysis indicates that economic growth and the speed of income convergence across countries matters for improvements in energy efficiency, both via dedicated R&D investments but mostly through capital-energy substitution. In contrast, fossil fuel prices, by changing the relative competitiveness of energy sources, create an economic opportunity for radical innovation in the energy sector. Indeed, our results suggest that fossil fuel availability is the key driver of investments in low carbon energy innovation. However, this innovation, by itself, is not sufficient to induce emission reductions compatible with climate stabilization objectives. |
| Keywords: | Technological change and innovation, Energy investments, R&D Investments, Fossil fuel availability, Fossil fuel prices, Energy Intensity, Carbon Intensity |
| JEL: | O13 Q Q54 Q55 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.59&r=ene |
| By: | Randall S. Jones; Myungkyoo Kim |
| Abstract: | The 2011 disaster and nuclear problems opened the door to a new energy policy, as they raised fundamental questions about the electricity system’s ability to prevent and respond to accidents. In particular, the system has had difficulty coping with the shortages caused by the accident and the suspension of operations of nuclear power plants. Addressing these problems requires creating a more competitive electricity sector by reducing the dominance of the ten regional monopolies through ownership unbundling of generation and transmission and by expanding the wholesale market. It is also important to increase interconnection capacity, while introducing real-time pricing. The reduced role of nuclear power following the Fukushima accident makes it necessary to accelerate the expansion of renewable energy, which requires setting a sufficiently high and consistent price for carbon. Finally, the government should ensure the independence of the new Nuclear Regulatory Agency and create an independent regulator for the electricity sector to promote competition. This Working Paper relates to the 2013 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/japan)<P>Restructurer le secteur électrique et favoriser la croissance verte au Japon<BR>La catastrophe naturelle et nucléaire de 2011, parce qu’elle a posé des questions fondamentales concernant la capacité du système électrique d’éviter et de réagir à des accidents, a ouvert la voie à l’élaboration d’une nouvelle politique énergétique. Ce système notamment n’a pu sans mal gérer les pénuries d’électricité provoquées par l’accident et par la suspension de l’exploitation des centrales nucléaires. S’attaquer à ces faiblesses nécessite la création d’un secteur de l’électricité plus concurrentiel, en atténuant la position dominante des dix monopoles régionaux ; pour cela, il faut dissocier la production du transport et dynamiser le marché de gros. Également, il est important d’augmenter les capacités d’interconnexion, tout en introduisant la tarification en temps réel. L’énergie nucléaire ayant un rôle moins important depuis l’accident de Fukushima, le Japon doit accélérer le développement des énergies renouvelables, ce qui impose de fixer un prix suffisamment élevé et cohérent pour le carbone. Enfin, le gouvernement doit assurer l’indépendance de la nouvelle Autorité de sûreté nucléaire et créer une autorité de régulation indépendante pour le secteur de l’électricité afin de stimuler la concurrence. Ce Document de travail a trait à l’Étude économique de l’OCDE du Japon, 2013 (www.oecd.org/eco/etudes/japon). |
| Keywords: | renewable energy, energy efficiency, Japanese economy, emissions trading system, nuclear power, electricity sector, electricity shortages, ownership unbundling, wholesale electricity market, interconnection, real-time price, feed-in-tariffs, energy conservation, regional electricity monopolies, économie japonaise, système d’échange de droits d’émissions, énergies renouvelables, efficacité énergétique, énergies nucléaire, secteur de l’électricité, marché de l’électricité de gros, interconnexion, tarification en temps réel, tarifs d’achat garantis, monopoles régionaux de l’électricité |
| JEL: | Q40 Q41 Q42 Q48 |
| Date: | 2013–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1069-en&r=ene |
| By: | Strunz, Sebastian |
| Abstract: | In this paper, I use the resilience framework to interpret the project of transforming the German energy system into a renewable energy sources (RES)-based system, the so-called Energiewende, as a regime shift. This regime shift comprises several transformations, which are currently altering the technological, political and economic system structure. To build my argument, I first sketch how technological, political and economic developments reduced the resilience of the conventional fossil-nuclear energy regime and created a new RES-regime. Second, I depict recent changes in German public discourse and energy policy as the shift to the RES-regime. Third, I highlight challenges involved with increasing the resilience of the RES-regime. In particular, sufficient resilience of the electricity transmission grid appears to be crucial for facilitating the transformation of the whole energy system. -- |
| Keywords: | energy system,energy transition,regime shift,renewable energy sources,resilience |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:102013&r=ene |
| By: | Shahbaz, Muhammad; Sbia, Rashid; Hamdi, Helmi |
| Abstract: | The present study explores the relationship between economic growth, electricity consumption, urbanization and environmental degradation in case of United Arab Emirates. The study covers the quarter frequency data over the period of 1975-2011. We have applied the ARDL bounds testing approach to examine the long run relationship between the variables in the presence of structural breaks. The VECM Granger causality is applied to investigate the direction of causal relationship between the variables. Our empirical exercise reported the existence of cointegration among the series in case of United Arab Emirates. Further, we found an inverted U-shaped relationship between economic growth and CO2 emissions i.e. economic growth raises energy emissions initially and declines it after a threshold point of income per capita (EKC exists). Electricity consumption declines CO2 emissions. The relationship between urbanization and CO2 emissions is positive. Exports seem to improve the environmental quality by lowering CO2 emissions in case of UAE. The causality analysis validates the feedback effect between CO2 emissions and electricity consumption. Economic growth and urbanization Granger cause CO2 emissions. |
| Keywords: | Electricity, Growth, CO2 emissions |
| JEL: | C5 |
| Date: | 2013–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48007&r=ene |
| By: | Karl Aiginger |
| Abstract: | The importance of manufacturing for industrialized countries has been reappraised, specifically in the wake of the financial crisis and of China's rise to world no 1 in manufacturing. A "new industrial policy" should bolster reindustrialization, different from the old selective and interventionist one, with proposals by academia, by the European Commission and many national policy makers in the US, United Kingdom and France. It should be pro competitive, in line with societal needs, integrated with innovation and regional policy building on competitive strength and with "sustainability at centre stage". Environmental standards should no longer be considered as an obstacle to competitive manufacturing but could constitute a driver of green growth. Europe sets targets for increasing energy efficiency, increasing shares of renewable and cutting emission first for 2020 and then for 2050, demanding the reduction of greenhouse gases by 80%-90%, based on new technologies and prices of carbon dioxide of 250 €/t. Headwinds to this ambitious path come from low gas prices specifically in the US, based on a new extraction technology and from the breaking down of the European emission trading. The question now raises whether Europe has to cope with low gas prices as to prevent carbon leakage, or whether Europe can stick to the goals of the envisaged integrated and systemic industrial policy as to raise energy efficiency as well as to reduce carbon emissions by new technologies. A "new industrial policy" would match the US cost advantage in energy by closing the technology deficit, improving skills and going for excellence in energy efficiency and clean technologies. |
| Keywords: | new industrial policy, climate change, carbon leakage |
| JEL: | L5 O32 O44 Q3 Q4 Q5 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfeppr:y:2013:m:5:d:0:i:3&r=ene |
| By: | Arjan Ruijs (PBL Netherlands Environmental Assessment Agency); Herman Vollebergh (PBL Netherlands Environmental Assessment Agency, CentER and Tilburg Sustainability Centre, Tilburg University) |
| Abstract: | Since 1997 the Netherlands has a tax allowance scheme introduced to promote investments in energy saving technologies and sustainable energy production. This Energy Investment Tax Allowance (EIA in Dutch) reduces up-front investment costs for firms investing in the newest energy saving and sustainable energy technologies. The basic design of the EIA has remained the same over the past 15 years. Firms investing in technologies listed in the annually updated ‘Energy List’ may deduct some of the investment costs from their taxable profits. The EIA may also reduce search costs by investors to find particular technologies because of the Energy List which is used to consider eligibility for the subsidy. This Energy List contains generic technologies that meet a certain energy-saving standard or a selection of novel, but proven, technologies with a higher energy-saving potential than conventional technologies. Over the past 15 years, the use of the EIA has been affected by a number of changes, mainly due to exogenous factors, such as interactions with other policy instruments, rising oil and gas prices, and the economic crisis since 2007. Despite this turbulence and changes in government focus, the EIA is still part of the Dutch energy policy mix. Our evaluation of the EIA contains four lessons. First, the use of tax revenues to subsidise investment in energy-efficient technologies and renewable energy is not very different from using on-budget subsidies if budgetary rules require sufficient accountability of such tax expenditures. At the beginning of the scheme, a lack of accountability of tax expenditures contributed to budgetary turbulence. A number of budget overruns in later periods were not related to budget accountability issues, but to changes outside the EIA. Second, incentive compatibility problems of the EIA are of concern but seem to be manageable. The main weakness of the tax allowance is the difficulty to prevent free-riders from receiving subsidies, even though subsidy effectiveness has improved considerably over the years. Third, the use of a dynamic technology list makes the regulation flexible, allowing policy to refocus and apply tighter standards if necessary. The list also reduces the information asymmetry between supply and demand of new technologies and helps suppliers of energy-saving or sustainable energy technologies to overcome the well-known ‘valley of death’. Finally, the design of a subsidy scheme should pay sufficient attention to the likely interaction with other policy instruments, in particular other subsidy schemes aimed at complementary objectives. The turbulence with the EIA over the 2001–2007 period was mainly caused by fluctuations in the application of other instruments. |
| Keywords: | Energy Efficiency, Renewable Energy, Investment, Tax, Tax Preference, Policy Evaluation |
| JEL: | H23 H25 H32 O33 Q48 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.56&r=ene |
| By: | Miguel Vazquez; Michelle Hallack |
| Abstract: | Strategic interaction between gas and electricity sectors is a major issue in the implementation of competitive energy markets. One relevant aspect of the problem is the potential for input foreclosure between gas and power industries. In this paper, we are concerned with situations where input foreclosure opportunities are associated with the choice of market design. In particular, we study input foreclosure in the case that the short-term capacity allocation mechanism of gas networks raises barriers to cross-border trade. In that situation, one may find gas markets that are isolated only in the short term. We explain players' ability to influence the electricity price using their gas decisions in those isolated markets. We also show that this should be a concern of EU capacity allocation mechanisms, which provide spatial flexibility in the short term to promote liquidity, at the cost of creating barriers to cross-border trade. Therefore, input foreclosure opportunities are additional costs to be taken into account when weighing benefits and drawbacks of European gas market designs. |
| Keywords: | Market design, Input foreclosure, Gas-power interaction, Network economics |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/41&r=ene |
| By: | Juan Antonio Duro Moreno (Departament d’Economia and CREIP, Universitat Rovira i Virgili); Jordi Teixidó-Figueras (Departament d’Economia and CREIP, Universitat Rovira i Virgili); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | This paper analyses the international inequalities in CO2 emissions intensity for the period 1971- 2009 and assesses explanatory factors. Multiplicative, group and additive methodologies of inequality decomposition are employed. The first allows us to clarify the separated role of the carbonisation index and the energy intensity in the pattern observed for inequalities in CO2 intensities; the second allows us to understand the role of regional groups; and the third allows us to investigate the role of different fossil energy sources (coal, oil and gas). The results show that, first, the reduction in global emissions intensity has coincided with a significant reduction in international inequality. Second, the bulk of this inequality and its reduction are attributed to differences between the groups of countries considered. Third, coal is the main energy source explaining these inequalities, although the growth in the relative contribution of gas is also remarkable. Fourth, the bulk of inequalities between countries and its decline are explained by differences in energy intensities, although there are significant differences in the patterns demonstrated by different groups of countries. |
| Keywords: | CO2 international distribution, inequality decomposition, CO2 emissions intensity |
| JEL: | D39 Q43 Q56 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1305&r=ene |
| By: | Lennox, James; Turner, James; Daigneault, Adam; Jhunjhnuwala, Kanika |
| Abstract: | While greenhouse gas emissions trading schemes, taxes and other measures have already been implemented or are proposed in many countries and regions, global action to mitigate climate change remains insufficient. A major concern in many countries is that actions taken alone, or even in a limited coalition of countries, might result in competitive disadvantage to firms in emissions-intensive, tradeexposed industries. Additionally, this might results in emissions leakage, reducing environmental effectiveness. The problem of emissions leakage has been extensively studied in the case of mitigation by individual or coalitions of developed countries, most often, using comparative static partial or general equilibrium models. In this paper we use a multiregional dynamic general equilibrium model to study the imposition of harmonised carbon taxes on industrial and energy greenhouse gas emissions in OECD countries and in China. This tax rate is increasing over time. We find that the overall rate of emissions leakage is very low and decreases over time. We also find significant differences between regions in the marginal rates of leakage with respect to their participation (or not) in the carbon-pricing coalition. Differences in leakage rates and their change over time can be related to differences in energy systems, general economic structure and growth rates. |
| Keywords: | carbon price, emissions, leakage, general equilibrium, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152164&r=ene |
| By: | Andrew C Worthington; Helen Higgs |
| Keywords: | wholesale spot electricity prices, generation mix, emission controls and taxation |
| JEL: | Q48 C33 D40 Q41 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:gri:fpaper:finance:201306&r=ene |
| By: | Claire Bergaentzlé (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I); Cédric Clastres (PACTE - Politiques publiques, ACtion politique, TErritoires - Institut d'Études Politiques [IEP] - Grenoble - CNRS : UMR5194 - Université Pierre-Mendès-France - Grenoble II - Université Joseph Fourier - Grenoble I) |
| Abstract: | Smart Grid technology appears necessary to succeed in activating the demand through demand side management (DSM) programs. This would in turn improve energy efficiency and achieve environmental targets through controlled consumption. The many pilot projects led worldwide involving smart grids technology, brought quantitative evaluations of DSM measures on electricity load. Efficient DSM instruments must be fine tuned to respond to very specific issues arising from the generation mix, the integration of intermittent energies or the level of outage risks faced during peak period. Efficient DSM strategies are illustrated through a model involving five countries that carry these different features and under the assumptions of isolated and fully interconnected markets. This paper aims at bringing recommendations regarding the instruments that should be implemented to maximize the benefits of smart grids technology and demand response. Finally, it tends to emphasis the issue of homogenized energy efficiency policies, critical in the building of internal energy markets such as the one the European Union is envisioning. |
| Keywords: | Demand-Side Management ; Dynamic Pricing ; Generation Mix ; Isolated Market ; Integrated market |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00839116&r=ene |
| By: | Roman Mendelevitch |
| Abstract: | Scenarios of future energy systems attribute an important role to Carbon Capture, Transport, and Storage (CCTS) in achieving emission reductions. Using captured CO2 for enhanced oil recovery (CO2-EOR) can improve the economics of the technology. This paper examines the potential for CO2-EOR in the North Sea region. UK oil fields are found to account for 47% of the estimated total additional recovery potential of 3739 Mbbl (1234 MtCO2 of storage potential). Danish and Norwegian fields add 28% and 25%, respectively. Based on a comprehensive dataset, the paper develops a unique techno-economic market equilibrium model of CO2 supply from emission sources and CO2 demand from CO2-EOR to assess implications for a future CCTS infrastructure. The demand for "fresh" CO2 for CO2-EOR operation is represented by an exponential storage cost function. In all scenarios of varying CO2 and crude oil price paths the assumed CO2-EOR potential is fully exploited. CO2-EOR does add value to CCTS operations but the potential is very limited and does not automatically induce long term CCTS activity. If CO2 prices stay low, little further use of CCTS can be expected after 2035. |
| Keywords: | CO2-EOR, CCTS, complementarity modeling, CO2 transport |
| JEL: | C61 L71 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1308&r=ene |
| By: | Hendrik Ritter (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Mark Schopf (Faculty of Business Administration and Economics, University of Paderborn) |
| Abstract: | This paper deals with possible foreign reactions to unilateral carbon demand reducing policies. It differentiates between demand side and supply side reactions as well as between intra- and intertemporal shifts in greenhouse gas emissions. In our model, we integrate a stock-dependent marginal physical cost of extracting fossil fuels into Eichner & Pethig's (2011) general equilibrium carbon leakage model. The results are as follows: Under similar but somewhat tighter conditions than those derived by Eichner & Pethig (2011), a weak green paradox arises. Furthermore, a strong green paradox can arise in our model under supplementary constraints. That means a "green" policy measure might not only lead to a harmful acceleration of fossil fuel extraction but to an increase in the cumulative climate damages at the same time. In some of these cases there is even a cumulative extraction expansion, which we consider disastrous. |
| Keywords: | Natural Resources, Carbon Leakage, Green Paradox |
| JEL: | Q31 Q32 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:130010&r=ene |
| By: | Quiggin, John |
| Abstract: | In this chapter, it is argued on the contrary that the RET is not merely complementary to the carbon market, but is a welfare-improving policy, even after the introduction of the carbon price. The central argument is that, because of political resistance to carbon pricing, the price has been set at a level that is below that of the optimal path, and must increase more rapidly than would be consistent with a Hotelling rule (Hotelling 1931). The relevant criterion for assessing the RET is not the cost of mitigation relative to the current carbon price but the cost relative to the true shadow price of CO2 emissions, which must be assessed in relation to abatement costs that must be incurred in the future if emissions are to be reduced in line with the government’s stated targets. |
| Keywords: | Renewable Energy Target, Carbon pricing, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q52, Q42, Q48, |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqsers:152099&r=ene |
| By: | Massimo Filippini (ETH Zurich, Switzerland); Lester C. Hunt (University of Surrey) |
| Abstract: | The promotion of US energy efficiency policy is seen as a very important activity by the Energy Information Agency (EIA). Generally, the level of energy efficiency of a state is approximated by energy intensity, commonly calculated as the ratio of energy use to GDP. However, energy intensity is not an accurate proxy for energy efficiency, because changes in energy intensity are a function of changes in several factors including the structure of the economy, climate, efficiency in the use of resources and technical change. The aim of this paper is to measure the ‘underlying energy efficiency’ for the whole economy of 49 ‘states’ in the US using a stochastic frontier energy demand approach. A total US energy demand frontier function is estimated using panel data for 49 ‘states’ over the period 1995 to 2009 using several panel data models: the pooled model; the random effects model; true fixed effects model; the true random effects model; and the Mundlak versions of the pooled and random effects models. The analysis confirms that energy intensity is not a good indicator of energy efficiency; whereas, by controlling for a range of economic and other factors, the measure of ‘underlying energy efficiency’ obtained via the approach adopted here (based on the microeconomic theory of production) is. |
| Keywords: | US total energy demand; efficiency and frontier analysis; state energy efficiency |
| JEL: | D D2 Q Q4 Q5 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:13-181&r=ene |
| By: | Richard G. Newell; Juha V. Siikamäki |
| Abstract: | We evaluate the effectiveness of energy efficiency labeling in guiding household decisions. Using a carefully designed choice experiment with alternative labels, we disentangle the relative importance of different types of information and intertemporal behavior (i.e., discounting) in guiding energy efficiency behavior. We find that simple information on the economic value of saving energy was the most important element guiding more cost-efficient investments in energy efficiency, with information on physical energy use and carbon emissions having additional but lesser importance. The degree to which the current EnergyGuide label guided cost-efficient decisions depends importantly on the discount rate assumed. Using individual discount rates separately elicited in our study, we find that the current EnergyGuide label came very close to guiding cost-efficient decisions, on average. However, using a uniform five percent discount rate—which was much lower than the average elicited rate—the EnergyGuide label led to choices that result in a one-third undervaluation of energy efficiency. We find that labels that also endorsed a model (with Energy Star) or gave a suggestive grade to a model (EU-style label), encouraged substantially higher energy efficiency. Our results reinforce the centrality of views on intertemporal choice and discounting, both in terms of understanding individual behavior and in guiding policy. |
| JEL: | C91 D12 D83 D91 H43 Q41 Q48 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19224&r=ene |
| By: | Bryan, Jeffrey; Lange, Ian; MacDonald, Alexander |
| Abstract: | The UK government introduced the Renewable Obligation (RO), a system of tradable quotas, to encourage the installation of renewable electricity capacity. Each unit of generation from renewables created a renewable obligation certificate (ROC). Electricity generators must either; earn ROCs through their own production, purchase ROCs in the market or pay the buy-out price to comply with the quota set by the RO. A unique aspect of this regulation is that all entities holding ROCs receive a share of the buy-out fund (the sum of all compliance purchases using the buy-out price). This set-up ensures that the difference between the market price for ROCs and the buy-out price should equal the expected share of the buy-out fund, as regulated entities arbitrage these two compliance options. The expected share of the buy-out fund depends on whether enough renewable generation is available to meet the quota. This analysis tests whether variables associated with renewable generation or electricity demand are correlated with, and thus can help predict, the price of ROCs. |
| Keywords: | Electricity; Arbitrage; Renewable Obligation |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2013-08&r=ene |
| By: | Miguel Vazquez; Michelle Hallack |
| Abstract: | Gas-fired power plants are increasingly used in the production of electricity, which in turn makes them a relevant part of the gas demand. In this paper, we investigate whether the current designs of gas and power markets are robust to the relatively new link between industries. Specifically, we study the cross-industry efficiency losses associated with designs aimed at increasing liquidity by limiting the amount of network services allocated through markets. In the short run, reducing the set of transmission services priced in one market (say gas) affects the use of transmission in the other market (say power). This may result in inefficiencies that should be accounted for when deciding on the network services to be allocated through market arrangements in each industry. We also identify long-term effects of such design strategies: the allocation of gas pipeline storage and transmission services without preference representation may weaken localization signals for power plants investment. In addition, lack of harmonization of market designs may raise barriers to network investment. |
| Keywords: | Market design, Gas and power interaction, Network economics. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/42&r=ene |
| By: | Sophia Ruester; Sebastian Schwenen; Matthias Finger |
| Abstract: | With the European Strategic Energy Technology Plan (SET Plan) expiring in 2020, the EU needs to revisit its energy technology policy for the post-2020 horizon and to establish a policy framework that fosters the achievement of ambitious EU commitments for decarbonization by 2050. We discuss options for a post-2020 EU energy technology policy, taking account of uncertain technology developments and uncertain carbon prices. We propose a revised SET Plan that enables policy makers to be pro-active in pushing innovation in promising technologies, no matter what policy context will be realized in the future. In particular, we find that a revised SET Plan is needed to support EU market actors who face market failures with respect to financing innovation within a highly competitive global market for energy technologies. An extension of the current SET Plan and corresponding technology push policies is insufficient, as this does not allow policymakers to provide adequate support, especially in a policy context with low or zero carbon prices. |
| Keywords: | European energy policy 2050, Energy technology policy, SET Plan |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/39&r=ene |
| By: | David C Broadstock (Research Institute of Economics and Management (RIEM), Southwestern University of Finance and Economics, Sichuan, China and Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey, UK.); Eleni Papathanasopoulou (Plymouth Marine Laboratory, Prospect Place The Hoe, Plymouth, PL1 3DH, UK.) |
| Abstract: | This paper explores the relative importance of factors other than price and income in explaining gasoline demand in Greece between 1978 and 2008. Using a structural time series model (STSM) the long-run elasticities of income and price are 0.45 and -0.32 respectively. Further, it is shown using the estimated underlying energy demand trend (UEDT) that other exogenous factors have been shifting the gasoline demand curve to the right, thus reflecting more energy intensive lifestyles in Greece. Given the results it is contended that the kinds of policies that governments can use to manage gasoline demand and move towards sustainable transportation go beyond the usual price mechanism. |
| Keywords: | Motor-gasoline Demand, Sustainable Transportation, Underlying Energy Demand Trend, Household Car Use |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:sur:seedps:141&r=ene |
| By: | Partha Sen (Department of Economics, Delhi School of Economics, Delhi, India) |
| Abstract: | The effects of a unilateral cut in emissions (e.g. by Annexure 1 countries in Kyoto) are analyzed in a dynamic two--country two--commodity model. If the fossil fuel is priced at marginal cost, a unilateral cut reduces total emissions (the carbon leakage is less than one hundred percent). But if the fuel is priced above marginal cost then a “green paradox” appears, i.e. the price of the fuel will fall until its use (over time) exhausts the entire stock. Here a unilateral policy is self-defeating and it is necessary to get binding commitments on fossil fuel use from all the countries. The production and trade implications for the participant and non-participant countries are analyzed. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:232&r=ene |
| By: | Nicola Brandt |
| Abstract: | With strong economic growth overall and an increasingly important role as a regional economic centre, Luxembourg is experiencing mounting environmental pressures. This is mainly a result of a growing population and a rapid increase in transport, which is dominated by the car, as the number of workers commuting within Luxembourg and from across the border has risen rapidly. Ensuing environmental pressures are sizable, including through CO2 emissions, air pollution and land use changes. Large-scale commuting, combined with low fuel taxes compared to neighbouring countries, has entailed rapid increases in greenhouse gas emissions, which are higher in Luxembourg in per capita terms than almost anywhere else in the OECD. Sound housing policies, urban and transport planning to limit urban sprawl and to promote public transport, and measures to better internalise environmental externalities will be needed to ensure that Luxembourg’s economic growth is compatible with environmental and economic sustainability and the well-being of its population. This working paper relates to the 2012 OECD Economic Survey of Luxembourg (www.oecd.org/eco/surveys/Luxembourg). |
| Keywords: | green growth, transport policies, fuel taxes, urban sprawl, water management |
| JEL: | H23 H24 Q25 Q53 Q58 |
| Date: | 2013–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1063-en&r=ene |
| By: | Fabio Sferra (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy); Massimo Tavoni (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change, Italy) |
| Abstract: | Our purpose is to analyse the effectiveness and efficiency of a Partial Climate Agreement with open entry under a non-cooperative Nash-Equilibrium framework. We evaluate a partial agreement policy in which non-signatory countries can decide to join or to leave a coalition of the willing at any point in time. By means of a simple analytical model and of a numerical integrated assessment model, we assess different coalition structures, and different minimum admission requirements. Our results indicate that a Partial Climate Agreement with open entry can be effective, achieving climate stabilization between 2C and 3C depending on the composition of the coalition of the willing. The policy turns out to be also rather efficient, with only minor losses with respect to a full cooperation agreement. Finally, we quantify the optimal admission requirement in about 40-50% of cumulative abatement. |
| Keywords: | International Environmental Agreements, Non-Binding Targets, Voluntary Climate Change Actions, Optimal Mitigation Strategies, Fair Burden Sharing in Climate Negotiations, Carbon Leakage |
| JEL: | C72 F18 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.60&r=ene |
| By: | Katrin Schmitz; Bjarne Steffen; Christoph Weber |
| Abstract: | Capacity remuneration mechanisms are a widespread instrument to foster investment. The growing interest in electricity storage raises the question how these mechanisms interact with storage plants. Using a stylized capacity planning model, we demonstrate that an exclusion of storage plants from capacity mechanisms leads to welfare losses. Even if storages are not explicitly excluded, the setup of capacity mechanisms can discriminate storage implicitly we therefore discuss typical mechanism design parameters and their impact on storage plants. Three case studies describe the actual situation of storage plants in the PJM system, Ireland and Spain. Finally the findings are summarized to general principles for storage-compatible capacity mechanisms. |
| Keywords: | capacity market, pumped-hydro storage, power plant investment |
| JEL: | L51 L52 L94 Q41 Q42 Q48 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/46&r=ene |
| By: | Quiggin, John |
| Abstract: | The problem of climate change has been described as ‘a unique challenge for economics: it is the greatest and. widest-ranging market failure ever seen’ (Stern 2007, p. i). Among the factors that make climate change a difficult, the most important, arguably, is uncertainty about the future course of climate change, and the effect of policies aimed at mitigating climate change. Although there is a large literature on the economic analysis of choice under uncertainty, many crucial issues are poorly understood by policymakers and the general public. In particular, uncertainty about climate change under ‘business as usual’ policies is commonly seen as a reason for inaction. On the other hand, the widely-used ‘precautionary principle’ is generally interpreted as suggesting that early action is desirable. To resolve the conflict between these intuitions, it is necessary to consider in more detail the principles for choice in the face of environmental uncertainty and, particularly, the interpretation of the precautionary principle. |
| Keywords: | Climate change, the precautionary principle, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q54, Q58, |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqsers:152098&r=ene |
| By: | Andrew Leicester (Institute for Fiscal Studies); George Stoye (Institute for Fiscal Studies) |
| Abstract: | We use English household-level survey data from 1996 to 2010 to explore whether economic market failures play a significant role in explaining the presence of energy efficiency measures (loft insulation, cavity wall insulation and full double glazing) in residential properties. There appears to be a limited role for credit constraints as proxied by income, receipt of means-tested benefits or educational attainment. Private renters are significantly less likely to own efficiency measures suggesting that failures in the landlord-tenant relationship in the private-rented sector are a key barrier to uptake. More broadly, we find that it is the characteristics of the dwelling rather than those of the occupants which are the most significant explanatory factors. Our results suggest that well-targeted policies to encourage take-up of efficiency measures could focus on private landlords, long-term owner occupiers, those in older properties and those using non-metered fuels as their main heating source. However, the key target groups vary across different efficiency measures. |
| Keywords: | energy, energy efficiency, insulation, market failures, evironmental policy |
| JEL: | D12 H23 Q48 Q58 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:13/14&r=ene |
| By: | Sbia, Rashid; Shahbaz, Muhammad |
| Abstract: | This study aims to explore the relationship between economic growth, urbanization, financial development and electricity consumption in case of United Arab Emirates. The study covers the time period of 1975-2011. We have applied the ARDL bounds testing to examine long run relationship between the variables in the presence of structural breaks. The VECM Granger causality is applied to investigate the direction of causal relationship between the variables. Our empirical exercise found cointegration between the series in case of United Arab Emirates. Further, results reveal that inverted U-shaped relationship is found between economic growth and electricity consumption i.e. economic growth raises electricity consumption initially and declines it after a threshold level of income per capita. Financial development adds in electricity consumption. The relationship between urbanization and electricity consumption is also inverted U-shaped. This implies that urbanization increases electricity consumption initially and after a threshold level of urbanization, electricity demand falls. The causality analysis finds feedback hypothesis between economic growth and electricity consumption i.e. economic growth and electricity consumption are interdependent. The bidirectional causality is found between financial development and electricity consumption. Economic growth and urbanization Granger cause each other. The feedback hypothesis is also found between urbanization and financial development, financial development and economic growth and same is true for electricity consumption and urbanization. |
| Keywords: | Economic growth, urbanization, electricity consumption |
| JEL: | C5 |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47981&r=ene |
| By: | Mauritzen, Johannes (Research Institute of Industrial Economics (IFN)) |
| Abstract: | An important challenge facing many deregulated electricity markets is dealing with the increasing penetration of intermittent generation. Simulation studies have pointed to the advantages of trading closer to real-time with large amounts of intermittent generation. Using Danish data, I show that, as expected, shortfalls increase the probability of trade on the shortterm market. But in the period studied between 2010 and 2012 surpluses are shown to decrease the probability of trade. This unexpected result is likely explained by wind power policies that discourages trading on Elbas and leads to unnecessarily high balancing costs. I use a rolling-windows regression to support this claim. |
| Keywords: | Wind power; Short-term markets; Forecasting error |
| JEL: | Q42 Q48 |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0969&r=ene |
| By: | rondi, laura; cambini, carlo; bremberger, francisca; gugler, klaus |
| Abstract: | We study the impact of different regulatory contracts of electricity companies on their dividend policy. Using a panel of 106 publicly traded European electric utilities in the period 1986-2011 we link dividend pay-out and smoothing ratios to the implementation of different regulatory mechanisms (cost plus vs. incentive regulation) and also to firm ownership. After controlling for the potential endogeneity of the regulatory mechanism, our results show that electric utilities subject to incentive regulation smooth their dividends less than firms subject to cost plus regulation but also present higher target payout ratios; thus suggesting that incentive regulation leads firms to a dividend policy more responsive to earnings variability and more consistent with efficiency-enhancing pressures. This suggests that when managers are more sensitive to competition-like efficiency pressures following the adoption of incentive regulation, they are more inclined to cut dividends when necessary. These results seem to apply in particular to incentive regulated firms when they are privately controlled. |
| Keywords: | Dividends, Lintner model, regulation, energy industry, price cap, incentive regulation |
| JEL: | G35 G38 L51 L94 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48043&r=ene |
| By: | Arthur Henriot |
| Abstract: | This article focuses on the ability of European TSOs to meet the demand for substantial investments in the electricity transmission grid over the next two decades. We employ quantitative analysis to assess the impact of the required capital expenditures under a set of alternative financing strategies. We consider a best-case scenario of full cooperation between the European TSOs. It appears that under current trends in the evolution of transmission tariffs, only half the volumes of investment currently planned could be funded. A highly significant increase in transmission tariffs will be required to ensure the whole-scale investments can be delivered. Finally, alternative strategies can dampen the impact on tariffs but they can only partially substitute for this increase in charges paid by network users. |
| Keywords: | Investment, Electricity transmission grid, Transmission System Operator |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/27&r=ene |
| By: | Georges BASTIN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Mathematical Engineering,(ICTEAM)); Isabelle CASSIERS (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), CIRTES an IACCHOS) |
| Abstract: | We present a simple mathematical model for the transition to a sustainable economy in order to explore the long-run evolution of an economy that achieves environment protection, full recycling of material resources and limitation of greenhouse gas emissions. The main concern is to investigate how balanced economic paths are modified under public policies for transition to sustainability. We consider a world economy with two subregions that are endowed with greenhouse gas emissions and ecological footprint of OECD and non-OECD countries respectively. Then, for the OECD subregion, three different options are investigated : a green growth option that focuses on accelerating the green technological change, a low growth option that focuses on shifting the structure of the economy towards low carbon and low capital intensive activities and a combined green-low growth option that focuses on the limitation of material resources and the abatement of the ecological footprint. |
| Keywords: | modelling, sustainability, balanced growth, transition |
| Date: | 2013–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2013014&r=ene |
| By: | KITANO Taiju |
| Abstract: | The US government criticized Japanese environmental policies, which promoted eco-friendly car (eco-car) purchases via measures such as tax exemptions and subsidies, as disguised forms of protection by arguing that the fuel economy standard for the subsidy qualification was designed to be more beneficial to domestic firms. This paper examines Japanese environmental policies from 2005-2009 to assess whether or not they were adequately formulated from an environmental perspective. The analysis compares the outcomes between the actual fuel economy standard for subsidy qualification introduced in Japan and an alternative standard suggested by the US government. Simulation results based on the structural econometric model of multi-product oligopolistic competition show that although both alternative and actual standards are comparable for the average fuel economy of new cars sold, the former is inefficient in improving the fuel economy because it requires much larger subsidies to achieve the same average fuel economy level as that of the latter. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13059&r=ene |
| By: | Wegener, Malcolm |
| Keywords: | Crop Production/Industries, International Relations/Trade, Resource /Energy Economics and Policy, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152189&r=ene |
| By: | Jean-Pierre Allegret; Cécile Couharde; Dramane Coulibaly; Valérie Mignon |
| Abstract: | Oil-exporting countries usually experience large current account improvements following a sharp increase in oil prices. In this paper, we investigate this oil price-current account relationship on a sample of 27 oil-exporting economies. Relying upon the estimation of panel smooth transition regression models over the 1980-2010 period, we provide evidence that refines the traditional interpretation of oil price effects on current accounts. While current accounts are positively affected by oil price variations, this effect is nonlinear and depends critically on the degree of financial development of oil-exporting economies. More specifically, oil price variations exert a positive impact on the current account position for less financial developed countries, while this influence tends to diminish when the degree of financial deepness augments. |
| Keywords: | Current account;oil price;financial development;panel smooth transition;regression models |
| JEL: | F32 C33 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2013-19&r=ene |
| By: | Farhani, Sahbi; Shahbaz, Muhammad |
| Abstract: | This paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in case of Tunisia over the period of 1980-2010. We used Auto-Regressive Distributed Lag (ARDL) bounds testing approach to test the existence of long run relationship between the variables. The Vector Error Correction Method (VECM) Granger approach is applied to test the direction of causal relation between the series. Our findings indicate the existence of long-run relationship among the variables. Natural gas consumption, real gross fixed capital formation and trade add in economic growth. Natural gas consumption, real gross fixed capital formation and real trade Granger cause real GDP. These findings open up new insights for policy makers to formulate a comprehensive energy policy to sustain economic growth for long run. |
| Keywords: | Natural gas consumption, Economic growth, Tunisia, ARDL approach |
| JEL: | C5 |
| Date: | 2013–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48083&r=ene |
| By: | Shahbaz, Muhammad; Tiwari, Aviral Kumar; Tahir, Mohammad Iqbal |
| Abstract: | This study analyzes the time-frequency relationship between oil price and exchange rate for Pakistan by using measures of continuous wavelet such as wavelet power, cross-wavelet power, and cross-wavelet coherency. The results of cross-wavelet analysis indicate that covariance between oil price and exchange rate are unable to give clear-cut results but both variables have been in phase and out phase (i.e. they are anti-cyclical and cyclical in nature) in some or other durations. However, results of squared wavelet coherence disclose that both variables are out of phase and real exchange rate was leading during the entire period studied, corresponding to the 10~15 months scale. These results are the unique contribution of the present study, which would have not been drawn if one would have utilized any other time series or frequency domain based approach. This finding provides evidence of anti-cyclical relationship between oil price and real effective exchange rate. However; in most of the period studied, real exchange rate was leading and passing anti-cycle effects on oil price shocks which is the major contribution of the study. |
| Keywords: | Oil prices, exchange rate, Pakistan |
| JEL: | C5 |
| Date: | 2013–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48086&r=ene |
| By: | Thunström, Linda (Department of Economics and Finance, University of Wyoming); van 't Veld, Klaas (Department of Economics and Finance, University of Wyoming); Shogren, Jason F. (Department of Economics and Finance, University of Wyoming); Nordström, Jonas (Department of Economics, Lund University) |
| Abstract: | Are people strategically ignorant of the negative externalities their activities cause the environment? Herein we examine if people avoid costless information on those externalities and use ignorance as an excuse to reduce pro-environmental behavior. We develop a theoretical framework in which people feel guilt from causing harm to the environment (e.g., emitting carbon dioxide) and from deviating from the social norm for pro-environmental behavior (e.g., offsetting carbon emissions). Our model predicts that people may benefit from avoiding information on their harm to the environment, and that they use ignorance as an excuse to engage in less pro-environmental behavior. It also predicts that the cost of ignorance increases if people can learn about the social norm from the information. We test the model predictions empirically with an experiment that involves an imaginary long- distance flight and an option to buy offsets for the flight’s carbon footprint. More than half (53 percent) of the subjects choose to ignore information on the carbon footprint alone before deciding their offset purchase, but ignorance significantly decreases (to 29 percent) when the information additionally reveals the social norm, namely the share of air travelers who buy carbon offsets. We find evidence that some people use ignorance as an excuse to reduce pro-environmental behavior— ignorance significantly decreases the probability of buying carbon offsets. |
| Keywords: | Behavioral; Decision Making; Externality; Ignorance; Social norms |
| JEL: | D03 D81 D83 |
| Date: | 2013–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2013_022&r=ene |
| By: | Irz, Xavier; Kurppa, Sirpa |
| Abstract: | The environmental impact of food consumption depends on the type of foods consumed and the amount of food wasted. It follows that dietary change represents one means of directing food systems towards greater environmental sustainability. The difficulty, however, lies in developing ways of motivating people to modify what they purchase and eat, as many constraints potentially hinder changes in behaviour, including established habits, limited income, lack of information on environmental impact, cognitive limitations, or the difficulty of accessing environmentally friendly foods. In order to understand those constraints better, and identify potential target groups for intervention, we have analysed the environmental impact of food consumption at household level in Finland, paying particular attention to lower socio-demographic groups. The data originates from the Finnish Household Budget Survey 2006, which gives a detailed record of the foods (259 aggregates) consumed by over 4000 households. The food quantity data are matched to indicators of greenhouse gas emissions and eutrophication, as well as a food composition database. Tests of differences in means of the environmental indicators identify the socio-demographic groups that are statistically different in terms of their environmental impact of food consumption. The total environmental impact is decomposed further into a diet composition effect (i.e., what foods households consume) and a quantity effect (i.e., how much food households consume). Results indicate that the environmental impact varies widely across households, and that this heterogeneity relates both to the types and quantities of foods consumed. We find significant differences in impacts among socio-demographic groups. For instance, household income is strongly and positively associated with greenhouse gas emissions from food consumption (i.e., relatively better off households have a relatively larger climate change impact). Educational level is also positively associated with greenhouse gas emissions, although the relationship is not as strong as with income. On the other hand, differences in environmental impact for household types defined in terms of occupational status are small. Overall, and on the basis of the two indicators considered, the lower socio-demographic groups have a relatively smaller ecological footprint of food consumption than households belonging to relatively higher groups. The results suggest that there is no decoupling of household income growth and environmental impact of food consumption. The relatively better-off and better educated should be targeted for behavioural change in order to promote sustainable food consumption in Finland. Further research is needed to identify the causal mechanisms underlying the associations that we describe and assess how various policies (e.g., labelling regulation, environmental education) would affect the ecological footprint of the Finnish diet. |
| Keywords: | consumption, sustainability, environmental impact, food, diet, nutrition, Finland, eutrophication, climate change, greenhouse gas emissions, consumption, household, footprint, socio-demographic, socio-economic, demographic, heterogeneity, variability, variation, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:mttfdp:152215&r=ene |
| By: | Hessler, Markus A.; Loebert, Ina |
| Abstract: | Im Jahr 2000 wurde das Erneuerbare-Energien-Gesetz (EEG) zur Förderung erneuerbarer Energien durch die rot-grüne Bundesregierung beschlossen. 2050 soll der Anteil der Stromerzeugung aus Erneuerbaren Energien am Bruttostromverbrauch 80% betragen. Die Energiewende scheint zu gelingen – doch zu welchem Preis? Den von Befürwortern genannten Vorteilen stehen erhebliche Probleme und Kosten gegenüber. Das Ziel des Beitrages ist es, diese näher zu beleuchten aber auch auf alternative Förderinstrumente hinzuweisen, mit denen die Energiewende unter Umständen kostengünstiger bewältigt werden kann. -- |
| Keywords: | EEG,Erneuerbare-Energien-Gesetz,Energiewende,Energiepolitik |
| JEL: | D78 L59 L94 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:76784&r=ene |
| By: | Ben Jebli, Mehdi; Ben Youssef, Slim |
| Abstract: | This study uses panel cointegration techniques to examine the impact of energy consumption, and trade on economic growth for five North Africa countries within a multivariate framework over the period 1980-2009. Short-run dynamic relationship shows that there is evidence of one way short-run relationship from i) output, exports, and capital to imports, ii) fossil fuels consumption to exports, iii) exports to capital and iv) labor to combustible renewables and waste consumption. The vector error correction model shows that there is evidence of long-run relationship running from i) combustible renewables and waste consumption, fossil fuels consumption, exports, imports, capital, and labor to output, ii) fossil fuels consumption, exports, imports, capital, and labor to combustible renewables and waste consumption, and iii) combustible renewables and waste consumption, fossil fuels consumption, exports, capital, and labor to imports. The long-run elasticities show that combustible renewables and waste consumption is not statistically significant and only fossil fuels consumption can affect output while trade is statistically significant and have a negative impact on output through imports and positive impact through exports. The policy implication of these results is that, in these countries, trade openness is not sufficiently efficient to incite the use of energies for production. |
| Keywords: | Energy consumption; panel cointegration, North Africa countries, trade. |
| JEL: | C33 F43 Q56 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47965&r=ene |
| By: | Cathrine Ulla Jensen; Toke Emil Panduro (Department of Food and Resource Economics, University of Copenhagen); Thomas Hedemark Lundhede (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | In this article we quantify the marginal external effects of nearby land based wind turbines on property prices capitalized through traded residential properties located within 2,500 meters or less. We succeed in separating the effect of noise and visual pollution from wind turbines. This was achieved by using a dataset covering 21 municipalities and consisting of 12,640 traded residential properties sold in the period 2000-2011. We model the hedonic price function in two steps. First we detrend data across municipalities using a pooled cross sectional model which allows for different price trends across municipalities. Second we control for spatial autocorrelation by using explicit spatial models. Properties affected by noise and visual pollution from wind turbines are identified using Geographical Information Systems. Our results show that wind turbines have a significant negative impact on the price schedule of neighboring residential properties. The visual pollution accounts for 3.15% of the residential sales price. The price premium declines with distance by about 0.242% of the sales price for every 100 meters. The effect of noise depends on the noise level emitted and ranges from 3% to 7% of the sale price for residential properties. |
| Keywords: | Valuation, wind turbines, spatial autocorrelation, hedonic house price modeling |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2013_13&r=ene |
| By: | Herrnstadt, Evan (University of MI); Muehlegger, Erich (Harvard University) |
| Abstract: | Climate change is a complex long-run phenomenon. The speed and severity with which it is occurring is difficult to observe, complicating the formation of beliefs for individuals. We use Google Insights search intensity data as a proxy for the salience of climate change and examine how search patterns vary with unusual local weather. We find that searches for "climate change" and "global warming" increase with extreme temperatures and unusual lack of snow. The responsiveness to weather shocks is greater in states that are more reliant on climate-sensitive industries and that elect more environmentally-favorable congressional delegations. Furthermore, we demonstrate that effects of abnormal weather extend beyond search behavior to observable action on environmental issues. We examine the voting records of members of the U.S. Congress from 2004 to 2011 and find that members are more likely to take a pro-environment stance on votes when their home-state experiences unusual weather. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp13-023&r=ene |
| By: | Frankel, Jeffrey A. (Harvard University) |
| Abstract: | The paper presents and estimates a model of the prices of oil and other storable commodities, a model that can be characterized as reflecting the carry trade. It focuses on speculative factors, here defined as the trade-off between interest rates on the one hand and market participants' expectations of future price changes on the other hand. It goes beyond past research by bringing to bear new data sources: survey data to measure expectations of future changes in commodity prices and options data to measure perceptions of risk. Some evidence is found of a negative effect of interest rates on the demand for inventories and thereby on commodity prices and positive effects of expected future price gains on inventory demand and thereby on today's commodity prices. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp13-022&r=ene |
| By: | Navarro, Adoracion M. |
| Abstract: | The Sitio Electrification Program (SEP) and the Household Electrification Program (HEP) are two ongoing rural electrification programs of the government. To assist the Department of Budget and Management in implementing its zero-based budgeting approach, we assessed the 2011 SEP and HEP implementation. Using benchmarking for the efficiency and effectiveness assessment of program implementation, we find that the programs were able to achieve their 2011 targets and at reasonable costs. Using an econometric regression for studying the poverty reduction impacts of rural electrification in the Philippines, we also find evidence of a positive relationship between rural electrification and poverty reduction. However, in order to meet the national electrification targets, the SEP and HEP implementation designs need to be improved. The SEP targeting system can be improved by using households as the ultimate basis for setting targets and then using the sitios as location identifiers for the household connections being targeted. Monitoring SEP and HEP accomplishments can be improved by including household dwelling units connected and households served in field reports. The social preparation component can also be strengthened by specifically identifying what constrains the households from connecting despite the presence of subsidies and then addressing the constraints in the program design. Prioritization can also be improved by giving importance to the presence of local enterprises that can raise economic activities and employment when prioritizing areas to be assisted. The Expanded Rural Electrification Team should also be re-activated, but it should have a streamlined setup and the responsibilities of members should be assigned to positions in offices rather than to specific officials (so that the performance of duties can be sustained even after the officials have left). Lastly, given that the 2012 experience in the accelerated implementation of the SEP raises red flags on the absorptive capacity of the National Electric Administration and the electric cooperatives, decisionmakers may have to downscale the annual targets to more realistic levels and extend the implementation period to a more realistic duration. |
| Keywords: | poverty reduction, Philippines, zero-based budgeting, highest benefit approach, household electrification, least cost approach, rural electrification, sitio electrification |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2013-32&r=ene |
| By: | Morrison, Mark; Duncan, Roderick; Parton, Kevin; Sherley, Chris |
| Abstract: | Previous research has demonstrated that religious persuasion can have an impact on environmental attitudes, however less research of this kind has focused on the relationship between religious persuasion and climate change attitudes. Using a survey of 1,927 Australians we examined links between membership of five religious groupings and climate change attitudes, as well as membership of climate change household segments that differ in their acceptance of human induced climate change and the need for policy responses. Differences were found across religious groups in terms of their belief in human induced climate change, consensus among scientists, their own efficacy and the need for policy responses. Using ordinal regression, some of these differences were shown to be due to sociodemographic factors, knowledge, environmental attitude or political conservatism. However, significant effects due to religious persuasion remained, and they range from medium to large in size. Options for responding to these effects are discussed. |
| Keywords: | religion, climate change, segmentation, political support, Environmental Economics and Policy, Institutional and Behavioral Economics, International Relations/Trade, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152147&r=ene |
| By: | François Lévêque (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Les politiques nucléaires nationales divergent fortement. Certains pays ont décidé hier, ou décident aujourd'hui, de développer l'énergie atomique, tandis que d'autres décident de renoncer à cette technologie. Ce document de travail1 s'interroge dans une première partie sur les motivations des pays qui ont choisi hier et choisissent aujourd'hui de développer cette technologie de production d'électricité. Elle montre qu'elles n'ont guère varié. La seconde partie porte sur la décision de sortie accélérée du nucléaire en Allemagne et sur le choix de fermeture anticipée de la centrale française de Fessenheim. Elle montre que les décisions politiques d'arrêt prématuré de réacteurs en bon état de marche, très coûteuses sur le plan économique, sont prises au doigt mouillé. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00841398&r=ene |
| By: | M. Basei; A. Cesaroni; T. Vargiolu |
| Abstract: | We characterize the value of swing contracts in continuous time as the unique viscosity solution of a Hamilton-Jacobi-Bellman equation with suitable boundary conditions. The case of contracts with penalties is straightforward, and in that case only a terminal condition is needed. Conversely, the case of contracts with strict constraints gives rise to a stochastic control problem with a nonstandard state constraint. We approach this problem by a penalty method: we consider a general constrained problem and approximate the value function with a sequence of value functions of appropriate unconstrained problems with a penalization term in the objective functional. Coming back to the case of swing contracts with strict constraints, we finally characterize the value function as the unique viscosity solution with polynomial growth of the Hamilton-Jacobi-Bellman equation subject to appropriate boundary conditions. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1307.1320&r=ene |
| By: | Ambrey, Christopher L.; Chan, Andrew Yiu-Chung; Fleming, Christopher M. |
| Abstract: | Making use of data from the Household, Income and Labour Dynamics in Australia (HILDA) survey coupled with air pollution data generated by The Air Pollution Model (TAPM), this paper employs the life satisfaction approach to estimate the cost of air pollution from human activities in South East Queensland. This paper offers at least three improvements over much of the existing literature: (1) within- (as opposed to cross-) country variations in air pollution are considered; (2) very high resolution air pollution data is employed; and (3) weather variables are included as controls within the life satisfaction function. A strong negative relationship is found between ambient concentrations of PM10 and life satisfaction, yielding a substantial willingness-to-pay for pollution reduction. |
| Keywords: | Air Pollution, Happiness, Household, Income and Labour Dynamics in Australia (HILDA), Geographic Information Systems (GIS), Life Satisfaction, Consumer/Household Economics, Environmental Economics and Policy, International Relations/Trade, Labor and Human Capital, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare13:152133&r=ene |