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on Energy Economics |
| By: | Carlo Carraro (University of Venice, FEEM and CMCC, Italy); Massimo Tavoni (FEEM and CMCC, Italy); Thomas Longden (FEEM and CMCC, Italy); Giacomo Marangoni (FEEM and CMCC, Italy) |
| Abstract: | This paper analyses a set of new scenarios for energy markets in Europe to evaluate the consistency of economic incentives and climate objectives. It focuses in particular on the role of natural gas across a range of climate policy scenarios (including the Copenhagen Pledges and the EU Roadmap) to identify whether current trends and policies are leading to an economically efficient and, at the same time, climate friendly, energy mix. Economic costs and environmental objectives are balanced to identify the welfare-maximising development path, the related investment strategies in the energy sector, and the resulting optimal energy mix. Policy measures to support this balanced economic development are identified. A specific sensitivity analysis upon the role of the 2020 renewable targets and increased energy efficiency improvements is also carried out. We conclude that a suitable and sustained carbon price needs to be implemented to move energy markets in Europe closer to the optimal energy mix. We also highlight that an appropriate carbon pricing is sufficient to achieve both the emission target and the renewable target, without incurring in high economic costs if climate policy is not too ambitious and/or it is internationally coordinated. Finally, our results show that natural gas is the key transitional fuel within the cost-effective achievement of a range of climate policy targets. |
| Keywords: | : EU Climate Policy, Energy Markets, Gas Share, Carbon Pricing, Renewables Target |
| JEL: | O33 O41 Q43 Q48 Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.86&r=ene |
| By: | Elena Claire Ricci (Università degli Studi di Milano, Centro Euro-Mediterraneo sui Cambiamenti Climatici and Fondazione Eni Enrico Mattei) |
| Abstract: | adoption of “Smart Energy Behaviour”. Within this term we include different levels of: i) shift in electricity consumption towards less costly-less polluting and congestioning hours; ii) the reduction of mainly wasteful electricity consumption, that maintains similar levels of comfort; iii) the enrolment in demand response programs; iv) electricity generation via residential micro-photovoltaic (PV) systems. These behavioural changes are triggered by the installation of advanced metering systems and a tariff policy that prices electricity according to time-of-use. The context analysed is that of Italy, where the largest diffusion of smart meters has taken place. We perform a set of 2500 simulations of our model with stochastic parameters to take into account the uncertainty in their estimation, to find that on average consumer involvement may induce on aggregate a shift in residential electricity consumption of 13.0% by 2020 and of 29.6% by 2030; and reduction in residential electricity consumption (just by reducing wasteful consumption) of 2.5% by 2020 and 9.2% by 2030. These consumption changes may have strong impacts on the system operating costs (in the order of 380 M€/y by 2020, 1203 M€/y by 2030), on the CO2 emissions (in the order of 1.56 MtonCO2/y by 2020, 5.01 Mton CO2/y by 2030), confirming the value of consumer participation. |
| Keywords: | Smart-Grids, Demand Response, Demand Management, System Dynamics, Consumer Choices, Climate Policy |
| JEL: | C61 Q42 Q54 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.71&r=ene |
| By: | Elena Claire Ricci (Fondazione Eni Enrico Mattei, Italy) |
| Abstract: | We assess the optimality of investments in power grid innovation, under both technological options of Super and Smart Grids, using the WITCH model in the version that includes Super-Grids. Super Grids allow producing and trading of electricity generated by large scale concentrated solar power (CSP) plants in highly productive areas that are connected to the %demand centres through High Voltage Direct Current (HVDC) cables. We extend the model to include also Smart-Grids that allow: i) to increase the share of renewable power manageable by the power network, ii) to reduce the costs of customer relationships via Smart Meters; iii) residential consumer to generate electricity via micro-photovoltaic plants, and iv) residential consumer to generate virtual electricity via consumption management. We find that it becomes optimal to invest in grid innovation, in order to start gaining the management benefits and taking advantage of consumer generating opportunities (of electricity and “nega-watts”), starting in 2010 and to exploit the increased possible penetration of renewable energy sources from 2035. Long-distance CSP generation becomes optimal only from 2040, and trade from 2050; but it reaches very high shares in the second half of the century, especially when penetration limits are imposed on nuclear power and on carbon capture and storage operations (CCS). On the whole, climate policy costs can be reduced by large percentages, up to 48%, 34%, 24% for the USA, Western Europe, Eastern Europe, respectively, with respect to corresponding scenarios without the grid innovation via Super and Smart Grid option and with limits on nuclear power, CCS, and CSP import. The analysis is then extended to compare these options considering, at least qualitatively, the differentiated impacts on the environment, technology, organization, society, local and national economies and geopolitics. |
| Keywords: | Smart-Grids, Climate Policy, Integrated Assessment, Renewable Energy, Residential Power Generation, Demand Side Management Concentrated Solar Power, Super-Grids, Electricity Trade |
| JEL: | C61 Q42 Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.84&r=ene |
| By: | Liebl, Dominik |
| Abstract: | Classical time series models have serious difficulties in modeling and forecasting the enormous fluctuations of electricity spot prices. Markov regime switch models belong to the most often used models in the electric- ity literature. These models try to capture the fluctuations of electricity spot prices by using different regimes, each with its own mean and covariance structure. Usually one regime is dedicated to moderate prices and another is dedicated to high prices. However, these models show poor performance and there is no theoretical justification for this kind of classification. The merit or- der model, the most important micro-economic pricing model for electricity spot prices, however, suggests a continuum of mean levels with a functional dependence on electricity demand. We propose a new statistical perspective on modeling and forecasting electricity spot prices that accounts for the merit order model. In a first step, the functional relation between electricity spot prices and electricity demand is modeled by daily price-demand functions. In a second step, we parameter- ize the series of daily price-demand functions using a functional factor model. The power of this new perspective is demonstrated by a forecast study that compares our functional factor model with two established classical time se- ries models as well as two alternative functional data models. |
| Keywords: | Functional factor model, functional data analysis, time series analysis, fundamental market model, merit order curve, European Energy Exchange, EEX |
| JEL: | C1 C14 C5 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50881&r=ene |
| By: | Anna Alberini (AREC, University of Maryand, USA College Park, Fondazione Eni Enrico Mattei (FEEM), Italy and Centre for Energy Policy and Economics (CEPE) at ETH-Zürich, Switzerland); Will Gans (Consultant with NERA, USA); Charles Towe (AREC, University of Maryand, College Park, USA) |
| Abstract: | We use a unique dataset that combines the responses from an original survey of households, information about the structural characteristics of their homes, utility-provided longitudinal electricity usage records, plus utility program participation information, to study the uptake of energy efficiency incentives and their effect on residential electricity consumption. Attention is restricted to homes where heating and cooling are provided exclusively by heat pumps, which are common in our study area—four counties in Maryland—and were covered by federal, state and utility incentives during our study period (2007-2012). We deploy a difference-in-difference study design. We find that replacing an existing heat pump with a new one does reduce electricity usage: the average treatment effect is an 8% reduction. However, the effect differs dramatically across households based upon whether they receive an incentive towards the purchase of a new heat pump. Among those that receive the purchase incentive, the effect is small or nil, and indeed, the larger the incentive, the smaller the reduction in electricity usage. Those that do not receive incentives reduce usage by about 16%. Our results appear to be driven by the numerous free riders in our sample and by persons who—inferred from their responses to survey questions—might be exploiting the subsidy to purchase a larger system and increase usage, with no emissions reductions benefits to society. |
| Keywords: | Energy Efficiency, Household Behavior, Energy Efficiency Incentives, Electricity Usage, Rebound Effect, Free Rider |
| JEL: | Q41 D12 H3 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.82&r=ene |
| By: | HIBIKI Akira; KURAKAWA Yukihide |
| Abstract: | Much attention has been paid to the feed-in tariff (FIT) scheme and the renewable portfolio standard (RPS) scheme to promote the usage of renewable energy recently. When a non-renewable generator, which is a monopolist in the retail market, is a dominant firm and renewable generators are competitive fringes in the renewable electric market, under the FIT scheme, a non-renewable generator utilizes its market power only in the retail market. Under the RPS scheme, a non-renewable generator utilizes its market power in both the retail market and the renewable electricity market. In addition, a non-renewable generator needs to purchase a certain percentage of its electricity production from renewable generators. Thus, it has an incentive to reduce production due to higher marginal cost. The main findings of this article are that the RPS scheme: (1) is more socially desirable when marginal external cost is high and (2) is able to achieve the first best by appropriate initial deductions for the purchase of electricity from renewable generators. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:13070&r=ene |
| By: | Rabindra Nepal (School of Economics, University of Queensland); Tooraj Jamasb (Business School, Durham University) |
| Abstract: | Economic theory suggests that market-based policies and reforms should promote energy efficiency in developing and transition countries. his paper, therefore, analyses the impacts of a varied set of market-oriented macro-level reforms on macro level energy efficiency across the transition countries. Since the early 1990s, these economies experienced a rapid marketization process which transformed them from central planning towards more market driven economies. The results from the relatively new bias corrected fixed-effect analysis (LSDVC) technique suggest that between 1990 and 2010, reforms in overall market liberalisation, financial sector and infrastructure industries, excluding the power sector, drove the energy efficiency improvements in these countries. Also, privatisation programmes only improved energy efficiency in the SEE countries. Thus, the empirical evidence support market driven energy efficiency policies aimed at addressing the market failures in the network industries and capital markets. We conclude that these results can help explain the energy efficiency policy puzzles in developing and transition countries where energy efficiency improvement can be a leading policy response to growing climate change and security of supply concerns. |
| Keywords: | Market Reforms, Energy Efficiency, Transition Countries, Institutions |
| JEL: | P28 Q54 C33 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:8-2013&r=ene |
| By: | Romano, Antonio Angelo; Scandurra, Giuseppe |
| Abstract: | In this paper we analyze the key factors promoting the investments in renewable energy sources a in a panel dataset of Petroleum Exporting Countries (OPEC). To address these issues, a dynamic panel analysis of the renewable investments in the sample of OPEC with distinct economic and social structures, in the years between 1980 and 2009, is proposed. Results confirm that key factors promoting investments in renewable energy sources are similar to others study which include more developed countries. However, absence of grant and/or incentives to promote the installations of new renewable power plants is a limit for the future and sustainable development of these countries. |
| Keywords: | GMM estimator; Renewable energy. |
| JEL: | C23 Q28 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50870&r=ene |
| By: | Laura Diaz Anadon (Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University, USA); Gregory Nemet (Nelson Institute Center for Sustainability and the Global Environment (SAGE), University of Wisconsin, and La Follette School of Public Affairs, University of Wisconsin, USA); Elena Verdolini (Fondazione Eni Enrico Mattei and CMCC, Italy) |
| Abstract: | Characterizing the anticipated performance of energy technologies to inform policy decisions increasingly relies on expert elicitation. Knowledge about how elicitation design factors impact the probabilistic estimates emerging from these studies is however scarce. We focus on nuclear power, a large-scale low-carbon power option, for which future cost estimates are important to designing energy policies and climate change mitigation efforts. We use data from three elicitations in the USA and in Europe and assess the role of government Research, Development, and Demonstration (RD&D) investments on expected nuclear costs in 2030. We show that controlling for expert, technology, and design characteristics increases experts’ implied public RD&D elasticity of expected costs by 25%. Public sector and industry experts’ costs expectations are 14% and 32% higher, respectively than academics. US experts are more optimistic than their EU counterparts, with median expected costs 22% lower. On average, a doubling of public RD&D is expected to result in an 8% cost reduction, but uncertainty is large. The difference between the 90th and 10th percentile estimates is on average 58% of the experts’ median estimates. Public RD&D investments do not affect uncertainty ranges, but US experts’ are less confident about costs than Europeans. |
| Keywords: | Nuclear Power, Uncertainty, Returns to RD&D, Expert Elicitations, Meta-Analysis |
| JEL: | O3 Q5 Q55 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.85&r=ene |
| By: | Amigues, Jean-Pierre; Moreaux, Michel |
| Abstract: | Inside a standard growth model with exhaustible resources, we study the optimal growth policy of an economy submitted to a climate constraint, taking the form of a ceiling over admissible atmospheric carbon concentrations. The optimal scenario is a three phases path: a rise of carbon concentrations until the carbon cap is attained followed by a time phase constrained by the ceiling on possible emissions and a last unconstrained phase of resource depletion. Depending upon the primitives of the model we show that the optimal path may be of two main kinds: paths characterized by a positive growth of the economy and paths corresponding to a complex structural adjustment process involving negative growth during some time interval. |
| Keywords: | Carbon pollution; economic growth; exhaustible resources |
| JEL: | Q00 Q32 Q43 Q54 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27656&r=ene |
| By: | Boom, Anette (Department of Economics, Copenhagen Business School); Schwenen, Sebastian (DIW Berlin, German Institute for Economic Research) |
| 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. |
| Keywords: | Electricity; Real-time Pricing; Market Power; Efficiency. |
| JEL: | D42 D43 D44 L11 L12 L13 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2013_001&r=ene |
| By: | Moreaux, Michel; Withagen, Cees |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:27148&r=ene |
| By: | Inge van den Bijgaart (Department of Economics, CentER, TSC, Tilburg University, The Netherlands); Reyer Gerlagh (Department of Economics, CentER, TSC, Tilburg University, The Netherlands); Luuk Korsten (Tilburg University, The Netherlands); Matti Liski |
| Abstract: | The social cost of carbon (SCC), commonly referred to as the carbon price, is the monetized damage from emitting one unit of CO2 to the atmosphere. The SCC is typically obtained from large-scale computational Integrated Assessment Models (IAMs) that consolidate interdisciplinary climate research inputs to obtain a carbon price estimate relevant for policy-making. However, the climate economy interactions of IAMs remain inaccessible to scientists in general. Here we develop a simple closed-form formula that captures the key physical and economic determinants of the SCC in the IAMs. For a mainstream IAM, it explains over 99 percent of the within-model variation originating from structural uncertainties; in an inter-model comparison, the structural variation captured by the formula matches closely a SCC distribution of previous SCC estimates. The precise replication of the SCC estimates is strikingly free of details such as those on future policy and technology options, or even carbon concentration levels; the size of the current economy and the emissions-temperature-damage response are the dominant SCC determinants in the IAMs. The structural interpretation given allows decision-makers to disentangle the subjective and structural determinants of the carbon price. Structural uncertainties alone lead to a strongly right-skewed density with median 15 €/tCO2, mean 31 €/tCO2, and more than 5 percent probability for higher than 100 €/tCO2 for year 2015. |
| Keywords: | Climate Change, Carbon Price, Integrated Assessment Models, Uncertainty |
| JEL: | Q50 Q51 Q52 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.83&r=ene |
| By: | Sven Rudolph (University of Kassel); Takeshi Kawakatsu (University of Kyoto); Achim Lerch (Hessian University of Cooperative Education) |
| Abstract: | Despite President Obama’s current interest in climate policy, market-based climate policy on the US federal level still appears to be deadlocked. The same is true for Canada, which has aligned its climate policy to the US. However, regional activities are more promising as British Columbia and California have started using market-based approaches recently. Against this background, the paper asks: Can state level market-based climate policy be a sustainable alternative or sup-plement to federal action? Which of the two programs does better in terms of fulfilling ambitious sustainability criteria? How can the programs be improved? In order to answer these questions, in a comparative fashion, the paper analyzes the design and the results of the British Columbia Carbon Tax and the California Cap-and-Trade Program and evaluates them based on sustainability criteria. By doing so, the paper provides a comparative evaluation of two North American sub-national level market-based climate policy programs, shows the significance and the challenges of such regional initiatives, identifies best-practice design elements, and provides recommendations for regional market-based climate policy design. |
| Keywords: | Climate Policy Instruments, Emissions Trading, Carbon Tax, USA, Canada, California, British Columbia |
| JEL: | D62 D63 Q48 Q54 Q58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201345&r=ene |
| By: | Dani José Villalobos Soto (Abogado Corporativo - Universidad Simon Bolivar); María Fátima Pinho De Oliveira (Carrera de Administración Aduanera - Universidad Simon Bolivar) |
| Abstract: | Desestabilización y la dificultad para cumplir con la cuota de suministro de petróleo en los países de América latina y del Caribe han generado en estas economías evidentes y consuetudinarias crisis económicas que difícilmente enfrentan. Sin embargo, estos países están en la búsqueda de acuerdos y alianza que permitan darles respuestas eficientes y efectivas a los problemas económicos, sociales. Políticos yculturales. El ALBA, Alternativa Bolivariana para América, cuyo objetivo más importante es minimizar los índices de pobreza en Latinoamérica, a través de la solidaridad, complementariedad y colaboración entre los países miembros. En ese sentido, la investigación se fundamenta en Estudiar el Tratado Energético entre los países miembros del ALBA, en el período 2005-2009, y su beneficio al desarrollo en este sector. Con relación, al aspecto metodológico, el estudio se centra en las investigaciones de tipo documental/bibliográfico, de nivel descriptico. La técnica fue el registro de información recabada y organizada, de la cual se elaboró resúmenes y se subrayaron las ideas principales, a fin de establecer relaciones entre los diferentes contenidos y posiciones de los gobiernos de los países miembros. Se concluye entonces, que en materia de Integración en términos Energéticos América latina tiene mucho por transitar, la integración energética aún tiene mucho camino que recorrer, de manera que se están realizando esfuerzo en este sentido, sin embargo, algunos escenario, retardan las negociaciones, los proyectos y las alianzas para logran un bloque energético que permita la incursión de nuevas tecnologías en cada uno de estos países, trabajo para todos, calidad de vida, educación y salud. |
| Keywords: | Latin America; Venezuela; Caribbean; Haiti; Cuba; Ecuador; Bolivia; Nicaragua; Bolivarian Alternative for the Americas; 2005-2009 Energy Treaty; Economic Integration; Energy Policy; International Agreements; Oil; Gas |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00875185&r=ene |
| By: | Mohamed Mnasri; Georges Dionne; Jean-Pierre Gueyie |
| Abstract: | This paper investigates how firms design the maturity of their hedging programs, and the real effects of maturity choice on firm value and risk. Using a new dataset on hedging activities of 150 U.S. oil and gas producers, we find strong evidence that hedging maturity is influenced by investment programs, market conditions, production specificities, and hedging contract features. We also give empirical evidence of a non-monotonic relationship between hedging maturity and measures of financial distress. We further investigate the motivations of early termination of contracts. Finally, we show that longer hedging maturities could attenuate the impacts of commodity price risk on firm value and risk. |
| Keywords: | Risk management, maturity choice, early termination, economic effects, oil and gas industry |
| JEL: | D8 G32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1337&r=ene |
| By: | OKUMURA Makoto |
| Abstract: | After the Great East Japan Earthquake, fuel customers rushed to gas stations in the affected area and formed long queues. We present a micro model, in which each customer chooses whether or not to join the queue on that day, based on the expected waiting time and the probability of fuel becoming sold out. Considering the dependence of those expectations on the present queue lengths, we show that there are two stable equilibria (ordinal and rush) and one unstable equilibrium. If the peoples' perceptions of the present status exceed the unstable threshold, the system converges toward the rush equilibrium. We explain the bias mechanism of congestion information in a multiple gas stations setting, and alert the possibility of early rush occurrences before all stations have the high possibility of being out of fuel. We also investigate the effect of several sales policies, such as the quota of sales, priority ticket distribution, and purchase limit, on rush occurrences and outcomes. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:13020&r=ene |
| By: | María José Paz Antolín (Departamento de Economía Aplicada I - Universidad Complutense de Madrid); David Silva Gutiérrez (Departamento de Economía Aplicada I - Universidad Complutense de Madrid) |
| Abstract: | La implementación de "nuevas" estrategias económicas en América Latina se ve fuertemente condicionada por la herencia neoliberal generando una dialéctica caracterizada por elementos de cambio y de continuidad. Partiendo de este supuesto, nuestro trabajo se centra en analizar el impacto de esta herencia en un eje considerado crucial en estas nuevas estrategias, la industrialización a partir de los recursos naturales. Tras caracterizar estas estrategias industrializadoras en el sector de hidrocarburos y tomando como referencia tres países de la región (Bolivia, Brasil y Ecuador) se identifican los principales elementos de continuidad con las políticas de ajuste neoliberal que, según concluimos, están limitando el grado de avance del proceso industrializador. |
| Keywords: | Latin America; Bolivia; Brazil; Ecuador; Natural Resources; Oil; Gas; Production; Economic Policy; Industrialization |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00875197&r=ene |
| By: | Valentina Bosetti (Università Commerciale “L. Bocconi”, IGIER and FEEM); Marco Maffezzoli (Università Commerciale “L. Bocconi” and IGIER) |
| Abstract: | This paper is the first attempt, to the best of our knowledge, to study the impact of a carbon tax by means of a heterogeneous agents model. The objectives of the paper are two: i) To assess how the results of a representative agent model compare to those coming from a model accounting for heterogeneity across agents when evaluating aggregate economic and environmental impacts of a carbon tax; ii) To assess the distributional implications of a carbon tax (and equivalent cap) and how they can be mitigated through different recycling schemes or allocations. |
| Keywords: | Carbon Tax, Double Dividend, Heterogeneous Agents Model |
| JEL: | Q58 Q54 E2 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.72&r=ene |
| By: | Libo Wu (School of Economics, Fudan University, Center for Energy Economics and Strategy Studies, Fudan University, Fudan-Tyndall Center, China); Changhe Li (School of Economics, Fudan University, China); Haoqi Qian (School of Economics, Fudan University, Center for Energy Economics and Strategy Studies, Fudan University, China); ZhongXiang Zhang (School of Economics, Fudan University, Center for Energy Economics and Strategy Studies, Fudan University, China) |
| Abstract: | This paper examines how the different characteristics of both electric vehicles themselves and the consumers would influence the consumption behavior on electric vehicles. Data collection is based on the questionnaire design using the orthogonal experimental method and large-scale stated preference survey covering more than 2000 households in 10 central districts of Shanghai. Three types of electric vehicles, i.e. fast charging, battery swapping and slowing charging are investigated according to a set of factors, such as acquisition costs, operation and maintenance costs, charging time and convenience, mileage, preferential policies and so on. We analyze the data with the nested-logit model. Our results suggest that the mode of battery swapping with slowing charging enjoys a relatively higher proportion in Shanghai, though there is no absolutely dominating type. By group classification analysis, the male, the young, the well-educated and the well-paid groups share relatively low proportion of selecting electric vehicles. Furthermore, consumers pay more attention to daily variable usage cost and charging time instead of acquisition costs. All these suggest the necessity for the government to adjust the current supporting policy in order to cultivate the electric vehicle market effectively. |
| Keywords: | Electric Vehicle, Nested-Logit Model, Stated Preference Experiment, Willingness to Pay |
| JEL: | Q41 Q42 Q48 Q54 Q55 Q58 C65 C83 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.79&r=ene |
| By: | Herman R.J. Vollebergh (CentER and Tilburg Sustainability Centre, Tilburg University, PBL Netherlands Environmental Assessment Agency, CESifo); Edwin van der Werf (Wageningen University, CESifo) |
| Abstract: | This paper aims to help policy makers identify how standards can contribute to the effective and cost-efficient development and deployment of eco-innovations (innovations that result in a reduction of environmental impact). To that end we discuss what standards are, how the process of standardization works, and how standards are related to induced innovation and diffusion in different type of markets, e.g. markets for add-on technologies versus markets for integrated resource- or emission-saving technologies. This broad perspective enables us to identify interesting economic dimensions of standards, such as their contribution to positive network externalities, and the extent to which they are substitutes or complements to environmental policy instruments. Finally we discuss how governments might contribute to eco-innovation by selecting, stimulating or creating (inter)national standards. |
| Keywords: | Standards, Technological Change, Eco-innovation, Environmental Policy Instruments |
| JEL: | Q38 Q55 Q58 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.74&r=ene |
| By: | Norma Lanciotti; Alexandre Macchione Saes |
| Abstract: | The article analyzes the evolution, strategies and position of American & Foreign Power subsidiaries in Argentina and Brazil from their entry in the mid-1920s to their nationalisation. We compare the economic performance and entry strategies followed by the American holding in different host economies. We also examine the relations between the American electricity firms and the Governments of both countries, focusing on the debates and policies that explain American & Foreign Power's withdrawal from Argentina and Brazil in 1959-1965. Finally, the article reviews the role of foreign direct investment in the development of electric power sector in both countries. The study is based upon the Annual Reports and Proceedings of American & Foreign Power (1923-1963) and other corporate reports, Government statistics and official Reports from Argentina, Brazil and the United States. |
| Keywords: | Electricity companies; Holding companies; US foreign direct investment; Argentina; Brazil; Regulatory strategies; State-owned enterprises |
| JEL: | N86 N76 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2013wpecon14&r=ene |
| By: | Goebel, Jan (DIW Berlin); Krekel, Christian (DIW Berlin); Tiefenbach, Tim (German Institute for Japanese Studies); Ziebarth, Nicolas R. (Cornell University) |
| Abstract: | We study the impact of the Fukushima disaster on people's mental well‐being in another industrialized country, more than 5000 miles distant. The meltdown significantly increased environmental concerns by 20% among the German population. Subsequent drastic policy action permanently shut down the oldest nuclear reactors, implemented the phase‐out of the remaining ones, and proclaimed the transition to renewables. This energy policy turnaround is largely supported by the population and equalized the increase in mental distress. We estimate that during the 3 months after the meltdown, Fukushima triggered external monetized health costs worth â¬250 per distressed citizen â particularly among risk averse women. |
| Keywords: | Fukushima, meltdown, nuclear phase‐out, mental health, environmental worries, SOEP |
| JEL: | I18 I31 Z13 Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7691&r=ene |
| By: | Léautier, Thomas-Olivier |
| Abstract: | This article examines imperfectly competitive investment in electric power generation in the presence of congestion on the transmission grid. Under simple yet realistic assumptions, it precisely derives the technology mix as a function of the capacity of the transmission interconnection. In particular, it nds that, if the interconnection is congested in one direction only, the cumulative capacity is not a¤ected by the congestion, while the baseload capacity is simply the uncongested baseload capacity, weighted by the size of its domestic market, plus the interconnection capacity. If the interconnection is successively congested in both directions, the peaking capacity is the cumulative uncongested capacity, weighted by the size its domestic market, plus the capacity of the interconnection, while the baseload capacity is the solution of a simple rst-order condition. The marginal value of interconnection capacity is shown to generalize the expression obtained under perfect competition. It includes both a short-term component, that captures the reduction in marginal cost from substituting cheaper for more expensive power, but also a long-term component, that captures the change in installed capacity. Finally, increasing interconnection is shown to have an ambiguous impact on producerspro ts. For example, if the interconnection is congested in one direction only, increasing capacity increases a monopolist pro t. On the other hand, if the line is almost not congested, it reduces oligopolistspro ts. |
| JEL: | D61 L11 L94 |
| Date: | 2013–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27641&r=ene |
| By: | Lean, H.H.; McAleer, M.J.; Wong, W.-K. |
| Abstract: | This paper examines risk-averse and risk-seeking investor preferences for oil spot and futures prices by using the mean-variance (MV) criterion and stochastic dominance (SD) approach. The MV findings cannot distinguish between the preferences of spot and futures markets. However, the SD tests show that spot dominates futures in the downside risk, while futures dominate spot in the upside profit. On the other hand, the SD findings suggest that spot dominates futures in downside risk, while futures dominate spot in upside profit. Risk-averse investors prefer investing in the spot index. Risk seekers are attracted to the futures index to maximize their expected utility but not expected wealth in the entire period, as well as for both the OPEC and Iraq War sub-periods. The SD findings show that there is no arbitrage opportunity between the spot and futures markets, and these markets are not rejected as being efficient. |
| Keywords: | stochastic dominance;risk averter;risk seeker;spot market;mean variance;futurres market |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureir:1765041467&r=ene |
| By: | Melissa Dell; Benjamin F. Jones; Benjamin A. Olken |
| Abstract: | A rapidly growing body of research applies panel methods to examine how temperature, precipitation, and windstorms influence economic outcomes. These studies focus on changes in weather realizations over time within a given spatial area and demonstrate impacts on agricultural output, industrial output, labor productivity, energy demand, health, conflict, and economic growth among other outcomes. By harnessing exogenous variation over time within a given spatial unit, these studies help credibly identify (i) the breadth of channels linking weather and the economy, (ii) heterogeneous treatment effects across different types of locations, and (iii) non-linear effects of weather variables. This paper reviews the new literature with two purposes. First, we summarize recent work, providing a guide to its methodologies, data sets, and findings. Second, we consider applications of the new literature, including insights for the “damage function” within models that seek to assess the potential economic effects of future climate change. |
| JEL: | Q54 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19578&r=ene |
| By: | Amigues, Jean-Pierre; Lafforgue, Gilles; Moreaux, Michel |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:27149&r=ene |