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on Energy Economics |
| By: | Saule Baurzhan (Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey); Glenn P. Jenkins (Department of Economics, Queen's University, Canada, Eastern Mediterranean University, Mersin 10, Turkey) |
| Abstract: | Many public electric utilities and countries in Africa are capital constrained while the growth in demand for electricity is increasing. In this paper an economic analysis is carried out that investigate the efficiency of investing in solar photovoltaic (PV) power plants for grid generation in such a capital constrained countries. The major benefits of the solar power generation are reductions in operating costs (mainly fuel), greenhouse gas (GHG) emissions, and other pollutants of displaced fossil fuel generation. These same benefits could be realised if efficient thermal power plants were used to displace fuel inefficient thermal plants. The amount of fuel savings, GHG emission mitigation, levelized cost of electricity generation are calculated for both solar PV and combined cycle power plants to determine the economic feasibility of introducing solar generation facilities. Investing in combined cycle power plants powered by heavy fuel oil (HFO) is three times as effective in reducing greenhouse gases as the same investment made in solar PV plants. Even If solar investment costs fall as anticipated, it will take at least 16 years of continuous decline before solar generation technology will become cost-effective. |
| Keywords: | Electricity Generation, Cost–Benefit Analysis, Africa |
| JEL: | L94 D61 O55 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:246&r=ene |
| By: | Lawrence H. Goulder; Marc A. C. Hafstead; Roberton C. Williams III |
| Abstract: | Economists have tended to view cap and trade (or, more generally, emissions pricing) as more cost-effective than a clean energy standard (CES) for the purpose of reducing greenhouse gas emissions associated with electricity generation. This stems in part from the finding that, in terms of cost-effectiveness, a CES relies too much on emissions abatement through the channel of fuel-switching and too little on the channel of reduced electricity demand. Recent research reveals, however, that the CES has an advantage over cap and trade in a different dimension. In a realistic economy with prior taxes on factors of production, the adverse “tax-interaction effect” is smaller under the CES than under the equivalent cap-and-trade program. This raises the possibility that the CES might not suffer an overall disadvantage relative to cap and trade on cost-effectiveness grounds. This paper employs analytical and numerical general equilibrium models to assess the relative cost-effectiveness of the CES and an electricity-sector cap-and-trade program. These models reveal that a well-designed CES can be more cost-effective than cap and trade when relatively minor reductions in emissions are called for. Numerical simulations indicate that the cost-effectiveness of the CES is sensitive to what is deemed “clean” electricity. To achieve maximal cost-effectiveness, the CES must offer significant credit to electricity generated from natural gas. |
| JEL: | H23 Q54 Q58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19847&r=ene |
| By: | Grunewald, Nicole; Jakob, Michael; Mouratiadou, Ioanna |
| Abstract: | Emission inequality across countries and the contribution of the energy mix and the sectoral composition of a country s energy use are of central importance to the climate debate. We analyze the evolution of inequality in global CO2 per capita emissions using both historical data on energy-related CO2 emissions and future emission scenarios generated with the integrated assessment model REMIND. Within our sample of 90 countries the results indicate that the Gini index declined from about 0.6 in 1971 to slightly above 0.4 in 2008. A decomposition of the Gini index of total emissions into primary energy carriers and into economic sectors provides additional insights. From the perspective of primary energy carriers, it is indicated that this reduction is mainly attributed to declining shares of emissions from coal/peat and oil in total emissions, and decreasing emission inequality within all fossil primary energy sources. From the perspective of economic sectors, the decline in overall inequality is almost entirely due to a pronounced decline of the contribution of emissions from manufacturing & construction. Our analysis also suggests that an equally spread emission reduction from any one source (i.e. primary energy carrier or economic sector) would not have a major impact on overall emission inequality. The analysis of future scenario data indicates that climate policy reduces absolute emissions inequality, while inducing drastic progressive emission reductions in all regions -- |
| JEL: | Q43 Q48 D63 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79779&r=ene |
| By: | Santosh Kumar Sahu (Madras School of Economics); K. Narayanan (Institute Chair Professor and Head, Department of Humanities and Social Sciences, Indian Institute of Technology Bombay) |
| Abstract: | Industrial energy efficiency has emerged as one of the key issues in India. The increasing demand for energy that leads to growing challenge of climate change has resulted major issues. It is obvious that high-energy intensity leads to high carbon intensity of the economy. This paper is an attempt to compute Carbon Dioxide (CO2) emission from fossil fuel consumption for firms in Indian manufacturing sector from 2000 to 2011 by adopting the IPCC Reference Approach. The contribution of this paper lies in estimating CO2 emission at the firm level and analyzing the factors that explain inter-firm variation in CO2 emission. The results indicate that there are differences in firm-level emission intensity and they, in turn, are systematically related to identifiable firm specific characteristics. This study found size, age, energy intensity and technology intensity as the major determinants of CO2 emission of Indian manufacturing firms. In addition, capital and labour intensity of the firms are also related to the firms’ CO2 emission intensity. We conclude the short run policy implications should be aimed at encouraging firms to invest more in R&D and technology sourcing and at long run firm should be able to adapt cleaner energy to reduce CO2 emission from the fuel consumption. |
| Keywords: | CO2 emission, Technology intensity, Firm heterogeneity, Panel data, Indian manufacturing |
| JEL: | Q4 B23 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2003-082&r=ene |
| By: | Sebastian Schäfer (University of Siegen) |
| Abstract: | This paper contributes to the literature of overlapping regulations as we introduce a model, which gives insights in an effective combination of the EU emissions trading system (ETS) and the promotion of renewable energy within the electricity sector. Under consideration of EU long term objectives in CO2 mitigation we evaluate the efficient share of renewable energy. Hence, we give rise to the question, if the actual amount of renewable energy production already exceeds this share making a stop or at least a modification of its promotion necessary. Our approach proves to be robust to a change of pattern of marginal abatement costs (MAC), while resulting variances can be narrowed down and quantified. For its application to empirical data, we develop a method to evaluate the performance of the ETS and the promotion of renewable energy. On that basis we suggest modifications of the ETS to uncouple the certificate price from economical fluctuations and the development of renewable energy leading to their better combination and stronger mitigation incentives. For Germany it turns out, that the electricity generation of renewables has not exceeded its optimal share yet, while data is restricted due to low mitigation incentives set by the ETS. Therefore both the suggested improvement of the ETS and the monitoring of the development of renewable energy, referred to our model, is strongly recommended. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201409&r=ene |
| By: | Marcel Kohler |
| Abstract: | By international standards the economy of South Africa is extremely energy intensive with only a few countries having higher intensities. SA’s primary energy use per unit of GDP is amongst the highest in the world. The high energy and electricity intensity of the economy partly reflects SA’s resource endowments (in particular the abundance of coal) but is also a function of the historical under-pricing of coal and electricity by the authorities. South African mining & industrial electricity efficiency is particularly concerning and considerably lower than the global average. This paper sets out to fill a significant gap in the South African energy literature by highlighting the importance of incorporating electricity demand factors as part of the country’s energy policy and electricity planning horizon. The paper focuses its attention on modeling the electricity consumption of SA’s industrial and mining sectors given these account for the lion’s share of electricity demand. A differential electricity pricing policy which targets electricity intensive industrial and mining activities (as practiced in China since 2004) is viewed by the author to be a superior policy to blanket electricity price increases administered by authorities in an effort to encourage electricity savings and improve energy efficiency in South Africa. |
| Keywords: | Electricity consumption, industrial, South Africa |
| JEL: | Q41 C23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:396&r=ene |
| By: | Eliasson , Jonas (KTH); Proost, Stef (Katholieke Universiteit Leuven) |
| Abstract: | The paper challenges the existing sustainable transport literature. Most sustainable transport plans focus on the reduction of greenhouse gas emissions in either one region or country and this neglects two handicaps of strong unilateral action. The first is that climate is a global commons problem so a strong binding international climate agreement is unlikely. The second is that a unilateral reduction of oil consumption by a limited number of countries will be partially, or even completely, offset by market responses – in some circumstances, cumulative emissions may even come earlier (the “green paradox”). When a coalition of the willing reduces oil use in the transport sector, this will delay rather than reduce total emissions. This requires rethinking climate policies for the transport sector: what policies remain cost effective in reducing greenhouse gas emissions? |
| Keywords: | Climate change; Sustainable transport; Oil consumption; International negotiation |
| JEL: | R42 R48 |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_002&r=ene |
| By: | Brännlund, Runar (CERE, Umeå University) |
| Abstract: | The objective with this study is to analyze the role of energy taxes for energy efficiency in the Swedish transport sector. In particular we analyze how large share the Swedish energy tax will contribute to the overall Swedish target for energy efficiency set by the EU directive for energy efficiency. To obtain the objective a dynamic demand model for gasoline and diesel is estimated, based on Swedish time series data from 1976 to 2012. The results from the demand model shows that a higher tax on gasoline results in lower gasoline demand, but leads to an increase in diesel consumption, and vice versa. A removal of the energy and CO2 tax, lowering both the gasoline and diesel consumer price, leads to an overall increase in energy use, but also to an increase in the share for diesel in fuel use. Concerning energy savings the simulation results show that the current Swedish energy and CO2 taxes are sufficient for achieving the EU stipulated target, and hence no additional measures has to be taken. |
| Keywords: | energy efficiency; gasoline; diesel; cointegration |
| JEL: | Q41 |
| Date: | 2013–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2013_006&r=ene |
| By: | Sahbi Farhani; Anissa Chaibi; Christophe Rault |
| Abstract: | This article contributes to the literature by investigating the dynamic relationship between Carbone dioxide (CO2) emissions, output (GDP), energy consumption, and trade using the bounds testing approach to cointegration and the ARDL methodology for Tunisia over the period 1971-2008. The empirical results reveal the existence of two causal long-run relationships between the variables. In the short-run, there are three unidirectional Granger causality relationships, which run from GDP, squared GDP and energy consumption to CO2 emissions. To check the stability in the parameter of the selected model, CUSUM and CUSUMSQ were used. The results also provide important policy implications. |
| Keywords: | CO2 emissions, Energy consumption, ARDL bounds testing approach |
| JEL: | Q56 Q43 C51 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-15&r=ene |
| By: | Alvaro Calzadilla; Manfred Wiebelt; Julian Blohmke; Gernot Klepper |
| Abstract: | “Desert Power 2050” is probably the world’s most ambitious strategy report towards the decarbonization of the power sector in Europe, the Middle East and North Africa (EUMENA). The report inspired by the Desertec vision aims at providing clean energy from MENA’s desert regions to the entire MENA region as well as exporting electricity to Europe. The report shows that an integrated EUMENA power system based on more than 90 percent renewables is technically feasible and economically viable. We use a combination of a global general equilibrium model (DART) and a multiplier analysis to evaluate the economic effects behind “Desert Power 2050” from a broader perspective, including not only the energy activities but also the repercussions in other sectors of the economies. The results show that the extent of the costs and benefits for both regions depend on the type of strategy adopted to finance the build-up of the power plants and the expected development of the levelised cost of electricity for the different technologies. Furthermore, the viability of a transition towards renewable energy as proposed by “Desert Power 2050” depends to a great extent on the international climate policy |
| Keywords: | Computable General Equilibrium, Multiplier Analysis, Renewable Energy, Climate Policy, Europe-North Africa-the Middle East |
| JEL: | C68 C67 Q42 Q58 O52 O55 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1891&r=ene |
| By: | Schwerhoff, Gregor; Edenhofer, Ottmar |
| Abstract: | A major concern in climate negotiations is that decarbonization may signi cantly hurt the development process. This paper shows that international specialization can contribute to making environmental and economic objectives compatible. When carbon effi ciency di ffers between two trading partners, environmental policy a ffects production cost di fferentially, so that the comparative advantage in technology is endogenous. Under a global climate agreement, a universal carbon tax would shift the production of energy intensive goods towards carbon effi cient economies. Once emissions are correctly internalized, trade becomes unambiguously bene cial for the environment and allows pursuing both environmental objectives and fast economic growth. Even in the absence of a climate agreement, free trade provides the option of indirectly accessing carbon e fficient technology abroad. This improves the marginal rate of substitution between consumption and environmental quality and thus achieves emission reductions even without international cooperation. -- |
| JEL: | Q56 F18 H23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80036&r=ene |
| By: | Massimo Anna Alberini (University of Maryland,USA); Massimo Filippini (ETH Zurich, Switzerland); Markus Bareit (ETH Zurich, Switzerland) |
| Abstract: | To correct market failures due to the presence of negative externalities associated with energy consumption, governments have adopted a variety of policies, including taxes, subsidies, regulations and standards, and information-based policies. For example, labels that clearly convey energy consumption rates, associated costs, and emissions of conventional pollutants and CO2, have been devised and used in the last two decades to promote rational decisions, but it is unclear whether labeling schemes have realigned consumer and producer behaviors. In 2003, Switzerland introduced a system of fuel economy labels, based on grades ranging from A to G, where is A best and G is worst, to assist consumers in making decisions that improve the fleet’s fuel economy and lower emissions. We use a dataset documenting all passenger cars approved for sale in Switzerland each year from 2000 to 2011 to answer three key research questions. First, what is the willingness to pay for fuel economy? Second, do Swiss drivers—or Swiss auto importers—appear to do a one-to-one tradeoff between car purchase price and savings on fuel costs over the lifetime of the car? Third, does the label have an additional effect on price, all else the same, above and beyond that of fuel efficiency alone? Hedonic pricing regressions that exploit the variation in fuel economy across make-models, and over time within make-models, suggest that there is a (modest) capitalization of fuel economy into car prices. The Diesel premium, however, exceeds the future fuel cost savings made possible by Diesel cars, even at zero discount rates. An alternate calculation suggests that the fuel economy premium is consistent with a very low discount rate (2.5%). We use matching estimators and a sharp regression discontinuity design (RDD) based on the mechanism used by the Swiss Federal Office of Energy to assign cars to the fuel economy label to see if the label has an independent effect on price, above and beyond that of the fuel economy. The matching estimator indicates that the A-label effect on car price is approximately 5%. The RDD approach estimates the effect to be 6-11%. |
| Keywords: | Fuel economy; CO2 emissions; Passenger vehicles; Hedonic pricing model; Matching Estimator; Regression Discontinuity Design; Fuel efficiency premium; Discounted future fuel costs. |
| JEL: | Q48 Q53 Q54 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:14-190&r=ene |
| By: | Mendelevitch, Roman |
| 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 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. A detailed representation of decreasing demand for fresh CO2 for CO2-EOR operation is accomplished via 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. -- |
| JEL: | C61 L71 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79950&r=ene |
| By: | Bertsch, Joachim; Growitsch, Christian; Lorenczik, Stefan; Nagl, Stephan |
| Abstract: | The EU member states have declared to strongly increase the share of Renewable Energy Sources in the next decades. Given a large deployment of wind and solar capacities as well as limited cost-efficient storage technologies, this has two major impacts on electricity systems. First, the electricity system has to be flexible enough to cope with the volatile RES-E generation i.e. ramp up supply or ramp down demand on short notice. Second, sufficient back-up capacities are needed for times with low feed-in from wind and solar capacities. The provision of both back-up capacity has been intensively discussed in the previous literature of recent years (for instance Cramton and Stoft, 2008 and Joskow, 2008). In addition, Lamadrid et al (2011) argue that with increasing volatility, incentives to invest in flexible resources should be implemented in market design. However, they did not have a look at the dynamic view in an integrated analysis necessary to to answer the questions of how an electricity system can adapt to an increasing share of renewables. This paper therefore analyses the flexibility requirements of the future European electricity system and the policy implications for market design with a system-economic dynamic approach. For this purpose, we simulate the development of the European electricity markets up to 2050 by using a linear investment and dispatch optimization model. Flexibility requirements are implemented in the model via constraints for ramping and provision of balancing power. We find that although an increase of fluctuating renewables has a tremendous impact on volatility and therefore flexibility requirements, the main trigger for investments into flexible conventional capacity are the achievable full load hours rather than ramping capabilities. Therefore any market design with investment incentives of achievable full load hours does not need additional incentives for flexibility. -- |
| JEL: | D02 C63 Q40 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79944&r=ene |
| By: | Rodica Loisel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); David Shropshire (European Commission, DG Joint Research Centre, Institute for Energy and Transport - European Commission, DG Joint Research Centre, Institute for Energy and Transport); Christian Thiel (European Commission, DG Joint Research Centre, Institute for Energy and Transport - European Commission, DG Joint Research Centre, Institute for Energy and Transport); Arnaud Mercier (European Commission, DG Joint Research Centre, Institute for Energy and Transport - European Commission, DG Joint Research Centre, Institute for Energy and Transport) |
| Abstract: | This study analyses the system integration of wind energy in terms of load balancing and power plants scheduling. The case study is the French power system, which relies on high rates of nuclear power, representing 78% in the total generation (2008). The study evaluates the ability of nuclear reactors to follow the load under several configurations of power plants in 2030 with at least 28 GW wind power representing 11% in the total generation. A dynamic optimization dispatching model is built with a detailed discrete-time formulation under the nuclear power ramp up and down constraints. Results show that operating the French power system with high infeed of wind power by 2030 seems technically feasible but relies heavily on the capacity of nuclear reactors to follow variations, on energy storage to insure flexibility and on the market capacity to allow generators to adapt continuously to the demand. Simulations show that balancing the wind power variation is less a matter of installing more flexible capacities, as load factors might decrease and reduce the investors' interest when prices are relatively low. Balancing becomes more an issue of ramping rates and unit scheduling, power market regulation and real-time market interactions with the day-ahead and intra-day markets. |
| Keywords: | Power plants dispatching; flexibility; wind; nuclear; ramping rates |
| Date: | 2014–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00934217&r=ene |
| By: | Barbara Annicchiarico (Department of Economics, University of Rome "Tor Vergata"); Anna Rita Bennato (ESRC Centre for Competition Policy, University of East Anglia, UK); Emilio Zanetti Chini (Department in Economics and Institutions, University of Rome "Tor Vergata" and CREATES) |
| Abstract: | This paper examines the relationship between economic growth and carbon dioxide emissions in Italy considering the developments in a 150-year time span. Using several statistical techniques, we find that GDP growth and carbon dioxide emissions are strongly interrelated, with a dramatic change of the elasticity of pollutant emissions with respect to output. Our findings highlight lack of structural change in the reduction of the carbon dioxide, suggesting the difficulties for Italy to meet the emissions targets within the Europe 2020 strategy. |
| Keywords: | Carbon Dioxide Emissions, Time Series Analysis, Italian Economy, Environmental Kuznets Curve |
| JEL: | Q50 C22 |
| Date: | 2014–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:aah:create:2014-02&r=ene |
| By: | Kiran Krishnamurthy, Chandra (CERE, Umeå University); Kriström, Bengt (CERE, Swedish University of Agricultural Sciences) |
| Abstract: | Using data from a large, multi-country survey, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) How much are households willing to pay to use only renewable energy? (ii) Does willingness-to-pay (wtp) vary significantly across household groups and countries? and (iii) What drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of wtp? The analysis here differs from previous ones in the literature in two distinct ways: first, data and analyses are comparable across countries and second, a comprehensive attempt to address censoring and heterogeneity is carried out. The survey data indicate, in common with prior analyses and market experience, a low wtp, about 910%. This study addressed a key aspect: how important is income for understanding wtp, relative to more âattitudinalâ determinants? Surprisingly, income exerts almost no effect on wtp, at the margin; this result is robust to controlling for censoring and heterogeneity. Key determinants of the wtp decision appear to be environmental attitudes, particularly membership in an environmental organization. |
| Keywords: | green electricity; willingness-to-pay; censoring; quantile regression; renewable energy |
| JEL: | C21 C24 Q42 Q51 |
| Date: | 2013–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2013_007&r=ene |
| By: | Alessandro Palma (Department of Economics, Roma Tre University) |
| Abstract: | In this paper we investigate the trade-offs between growth and low carbon targets for both developing and developed countries for the period to 2035. The issues examined include two policy options for being on track to meet the 450 ppm target: (a) national/regional targets without international trade in carbon permits and (b) a global market in permits. Policy options are evaluated with an original dynamic CGE model which relies on the static GTAP-E structure. The model focuses on bilateral trade flows and links between economies and sectors that capture the realistic economy-wide nature of a globalized world. The results show higher costs of meeting the target than the average of previous models, although there are some previous studies that have costs in the same range. We then go on to investigate options for reducing these costs that are broadly consistent with a green growth strategy of supporting low carbon development. A green carbon fund financed through a levy on carbon taxation can benefit all parties. Potential larger benefits are associated with the investment of the green fund to foster energy efficiency. |
| Keywords: | Dynamic CGE Model, Climate Change Policies, Green Carbon Fund, Energy Efficiency |
| JEL: | C68 H23 O44 Q54 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0014&r=ene |
| By: | Boeters, Stefan |
| Abstract: | Economic thought on climate policy as an instance of environmental regulation is strongly influenced by the principle of a uniform carbon price. Economists acknowledge that this principle breaks down in a second-best world with other distortions, such as taxes and market power in domestic and international markets. However, systematic analysis of this point in the economic climate policy literature is scarce. In the present paper, a computable general equilibrium (CGE) set-up is chosen in order to examine what pattern of differentiated carbon prices emerges as optimal in a second-best world. The CGE model WorldScan, which is considered to be representative of the class of models routinely used for numerical climate policy analysis, produces three main results: First, the optimal pattern of carbon prices is highly differentiated, ranging from almost prohibitive taxes to high subsidies (with a range of more than 1700 euros per ton of CO2). Second, the welfare gain from switching from a uniform price to optimally differentiated prices is enormous, equivalent to a 27% emission reduction for free. Third, the most important drivers of carbon price differentiation are market power in export markets as well as taxes on consumption, intermediate inputs and domestic output. This shows that carbon price differentiation cannot be dismissed as a policy option lightly. However, before translating these findings into concrete policy advice, the relevant features of modelling pre-existing distortions in CGE models need close revision. -- |
| JEL: | Q54 H21 D58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79738&r=ene |
| By: | Massimiliano Mazzanti; Susanna Mancinelli; Marianna Gilli |
| Abstract: | Innovation is a key element behind the achievement of desired environmental and economic performances. Regarding CO2, mitigation strategies would require cuts in emissions of around 80-90% with respect to 1990 by 2050 in the EU. We investigate whether complementarity, namely integration, between the adoption of environmental innovation measures and other technological and organizational innovations is a factor that has supported reduction in CO2 emissions per value added, that is environmental productivity. We merge new EU innovation and WIOD data to assess the innovation effects on sector CO2 performances at a wide EU level. We find that jointly adopting different innovations is not a widespread factor behind increases in environmental productivity. Nevertheless, even though complementarity is not a low hanging fruit, a case where ‘innovation complementarity’ arises is for manufacturing sectors, that integrate eco innovations with product innovations. One example of this integrated action is a strategy that pursue energy efficiency with product value enhancement. We believe that the lack of integrated innovation adoption behind environmental productivity performance is a signal of the current weaknesses economies face in tackling climate change and green economy challenges. Incremental rather than more radical strategies have predominated so far. The latter have been confined to industrial ‘niches’, in terms of number of involved firms. This is probably insufficient when we look at long-term economic and environmental goals. |
| Keywords: | Complementarity; Innovation; Climate Change; Sector Performance |
| JEL: | L6 O3 Q55 |
| Date: | 2014–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:2014043&r=ene |
| By: | Aichele, Rahel |
| Abstract: | The future international climate policy architecture will most likely consist of partial climate policy initiatives like the EU's Emission Trading System. Trade integration threatens to undermine these systems' environmental effectiveness by shifting emissions to other countries. We estimate a gravity model based on 103 countries and use it to simulate several such climate policy experiments. The model's parameters are structurally linked to empirical estimates, i.e. bilateral trade costs and the elasticity of substitution are consistent with the data. Unlike previous empirical work, the approach allows to quantify emission relocation in general equilibrium. With trade liberalization experiments, the model also allows to deliver a perspective on environmental aspects of hypothetical FTA formation. We find that an EU emission allowance price of 15 US-$ suffi ces to bring the EU on track for its Kyoto target but also leads to emission relocations of about 10% of the EU's emission savings. -- |
| JEL: | F18 F47 Q54 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80011&r=ene |
| By: | Rausch, Sebastian |
| Abstract: | We examine the distributional and e ciency impacts of climate policy in the context of fiscal consolidation in a dynamic general-equilibrium overlapping generations model of the US economy. The model includes a disaggregated production structure, including energy sector detail and advanced low- or zero-carbon energy technologies, and detail on government taxes and spending. In contrast to revenue-neutral carbon tax swaps, using the carbon revenue for deficit reduction implies a relaxation of future public budgets as debt repayment results in lower interest obligations. While we show that the intergenerational welfare impacts depend importantly on what tax recycling instrument is used, we find that combining debt consolidation with a carbon policy entails the possibility of sustained welfare gains for future generations. We thus argue that combining fiscal and climate policy may o er the chance for positive societal gains (without considering potential benefits from averted climate change). Importantly, this may enhance the political support for revenue-raising climate policies that are framed over the next couples of decades. -- |
| JEL: | Q54 C68 H60 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80026&r=ene |
| By: | Carsten Helm (Carl von Ossietzky Universität Oldenburg, Institut für Volkswirtschaftslehre & ZenTra); Stefan Pichler (KOF Swiss Economic Institute, ETH Zürich) |
| Abstract: | In this paper, we analyze technology transfers (TT) and tradable emission rights, which are core is-sues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in the South, thereby reducing the international permit price. This is beneficial for the North as long as it is a permit buyer; hence it chooses to subsidize TT. By contrast, the permit selling South suffers from the lower permit price and its welfare usually deteriorates, despite receiving subsidies. We also consider how TT affects countries’ non-cooperative choices of permit endowments and find that it tends to reduce overall emissions. Finally, a simple numerical simulation model illustrates the results and explores some further comparative statics. |
| Keywords: | emissions trading, technology transfer, international climate policy, additionality, subsidies |
| JEL: | D62 D78 H41 O38 Q58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:31&r=ene |
| By: | Sebastien Pouliot (Center for Agricultural and Rural Development (CARD)); Bruce A. Babcock (Center for Agricultural and Rural Development (CARD)) |
| Abstract: | The Environmental Protection Agency (EPA) proposed in November to reduce 2014 biofuel mandates. One concern expressed by EPA is that it will be difficult, if not impossible, to consume the 2014 target levels of ethanol in the Renewable Fuel Standard (RFS) because of infrastructure issues. Difficulty in meeting ethanol mandates is reflected into increased compliance costs and a measure of compliance cost is the price of the tradable ethanol credit known as a RIN (Renewable Identification Number). The price of RINs represents the gap between the cost of producing another gallon of ethanol and the price of ethanol that is needed to induce consumers to buy another gallon. Compliance with the ethanol mandates falls to owners of oil refineries who must purchase a specified number of RINs per gallon of gasoline produced. We show in previous work that increasing the number of stations that sell E85 decreases the ethanol price discounts needed to induce enough ethanol consumption to meet targets by making the fuel more accessible to consumers. Any reduction in required discounts directly leads to lower RIN prices and hence lower compliance costs. Thus, obligated parties faced with high RIN prices would have a strong incentive to invest in the infrastructure that would facilitate increases in ethanol consumption. As the cost of complying with RFS falls to owners of oil refineries, it is a natural position for them to oppose any further increase in mandated ethanol volumes. One argument that has often been made by the oil industry against increases in ethanol is that compliance costs will be passed on to consumers. This seems like a reasonable argument because this type of cost increase in any economic model will tend to lead to higher gasoline prices, hence higher consumer prices. Our objective in this study is to provide a transparent economic analysis of the impact on consumer fuel prices from increased ethanol mandates. One feature of our analysis is that it accounts for an increase in the consumption of E85, the most likely compliance path that would be taken in 2014 to meet increases in ethanol mandates. Each year, EPA establishes a percentage standard for ethanol by dividing the desired quantity of ethanol by the total anticipated domestic sales of unblended gasoline. Each producer of gasoline has an RVO (Renewable Volume Obligation) that is determined by multiplying the percentage standard by total domestic sales of gasoline. The RVO is met by acquiring RINs. If an obligated party’s sales of gasoline increases, so too does the RVO. This means that an obligated party can reduce the number of RINs that it needs to comply with the RFS by decreasing the volume of gasoline sales. This direct link between the cost of RINs and gasoline sales implies that increases in the cost of RINs reduces the quantity of gasoline that refiners will provide to consumers at any given gasoline price. Our model has separate demand curves for E10 and E85. The two demand curves are related because increases in E85 consumption come at the expense of E10. The model calculates the retail price of E85 that is needed to induce consumers to buy enough ethanol so that the number of RINs generated is adequate to meet oil refineries’ RVO obligations. The obligations are met through increased E85 consumption and reduced E10 consumption. Increased E85 consumption can only occur with a lower retail price of E85. Given E10 and E85 prices, we can calculate the value at wholesale for gasoline and ethanol. It is the difference between the value of ethanol at wholesale and the cost of producing the required quantity of ethanol that determines the RIN price. The compliance cost to oil refineries per gallon of gasoline is the product of the RIN price and the percentage standard. We find two direct effects of a binding ethanol mandate. The first is an increase in the wholesale price of gasoline because positive RIN prices increase the cost of producing gasoline. The second is a decrease in the ethanol price paid by blenders net of the RIN value. The net price of ethanol will decrease to induce consumers to consume enough ethanol to meet the mandate. Because most US consumers buy E10, the lower price of ethanol in the blend offsets at least some portion of the increased gasoline price. In addition to these two direct effects on the price of E10, there exists an indirect effect that works to lower E10 prices. To meet mandates beyond E10 requires an increase in E85 consumption, which results in a decrease in E10 consumption because some owners of flex vehicles switch fuels. The effect of substituting E85 for E10 is a net decrease in gasoline demand, which results in some reduction in wholesale gasoline prices. Whether the net effect of these three market forces results in a net increase or decrease in E10 pump prices requires the development of an economic model to sort out. We developed and calibrated such a model with the purpose of showing how feasible increases in ethanol blending mandates will affect the price of E10 under a range of possible conditions. We find that feasible increases in the ethanol mandate in 2014 will cause a small decline in the price of E10. That is, even though increased mandates increase gasoline prices, the offsetting effects from a decline in ethanol price and movement by motorists to E85 from E10 are enough to result in a net decrease in the price of E10. Our results should reassure those in Congress and the Administration who are worried that following the RFS commitment to expanding the use of renewable fuels will result in sharply higher fuel prices for consumers. There may be sound policy reasons that could justify Congress revisiting the RFS. However, concern about higher pump prices for consumers is not one of them. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:14-pb18&r=ene |
| By: | Haikel Khalfallah (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: | Network regulation is playing an active role in a context of restructuring energy systems for long term transition to a smart grid. Regulation of network companies' activities should consider both cost efficiency objectives and other objectives such as quality and network innovation. It is in this context that incentive regulation tools are discussed and assessed in this paper. The aim is to show their key features and how they could be aligned with the main regulation goals. This paper concludes that they should be considered as complementary tools to address conflicting regulatory aspects in an efficient manner. |
| Keywords: | incentive regulation ; electricity ; cost efficiency ; quality ; innovation |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00931301&r=ene |
| By: | Mohamed Arouri; Sahbi Farhani; Muhammad Shahbaz; Frédéric Teulon |
| Abstract: | This paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in the case of Tunisia over the period 1980-2010. We use an Autoregressive Distributed Lag (ARDL) bounds testing approach to test the existence of a longterm relationship between the variables. The Vector Error Correction Method (VECM) Granger approach is applied to test the direction of the causal relation between the series. Our findings indicate the existence of a long-term 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 policymakers to formulate a comprehensive energy policy to sustain economic growth in the long term. |
| Keywords: | Natural gas consumption, Economic growth, ARDL approach |
| JEL: | C7 D8 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-16&r=ene |
| By: | Zied Ftiti; Khaled Guesmi; Frédéric Teulon |
| Abstract: | This paper assesses the impact of oil prices on economic growth of the four major OPEC countries (United Arab Emirates, Kuwait, Saudi Arabia and Venezuela) over the period spanning from 03/09/2000 to 03/12/2010. We aim at complementing the results from existing analyses (mainly focused on oil-importing countries) by using the evolutionary co-spectral analysis as defined by Priestley and Tong (1973). We find that co-movements between oil and economic growth have different patterns depending of the studied horizons. This interdependence is a mediumlived phenomenon, revealed on a three years and one quarter horizon, being weak in the short-run (ten months). We show that oil price shocks in periods of world turmoil or during fluctuations of the global business cycle (downturn or growth, as for instance the 2008 financial crisis) have a significant impact on the relationship between oil and economic growth in oil-exporting countries. |
| Keywords: | oil prices shocks, stock markets, evolutionary co-spectral analysis, OPEC |
| JEL: | C14 C22 G12 G15 Q43 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-23&r=ene |
| By: | Springmann, Marco; Böhringer, Christoph; Rutherford, Thomas F. |
| Abstract: | The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissions-reduction projects in developing non-Annex I countries. We present a novel CDM modeling framework which can be used in computable-general-equilibrium (CGE) models to quantify the sector-specific and macroeconomic impacts of CDM investments. Compared to conventional approaches that mimic CDM as sectoral emission trading, our framework adopts a micro consistent representation of the CDM incentive structure and its investment characteristics. In our empirical application based on GTAP data we show that incentive compatibility implies that CDM-implementing sectors do not suffer and overall welfare gains tend to be lower than suggested by conventional modeling approaches. -- |
| JEL: | C68 D58 Q56 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79939&r=ene |
| By: | Shahbaz, Muhammad; Sbia, Rashid; HAMDI, Helmi; Ur Rehman, Ijaz |
| Abstract: | This paper investigates relationship between information communication technology (ICT), economic growth and electricity consumption using data of UAE over the period of 1975-2011.We have tested the unit properties of variables and the Bayer and Hanck combined cointegration approach for long run relationship. The innovative accounting approach is applied to test the robustness of the VECM Granger causality findings. Our empirical results confirm the existence of cointegration between the series. We find that ICT adds in electricity demand but electricity prices lower it. Income growth increases electricity consumption. The non-linear relationship between ICT and electricity consumption is an Inverted U-shaped. The causality results reveal that ICT and electricity prices Granger cause electricity demand. The feedback effect exists between economic growth and electricity consumption |
| Keywords: | ICT, Growth, Electricity, UAE |
| JEL: | O3 |
| Date: | 2014–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53226&r=ene |
| By: | Krätschell, Karoline; Schmidt, Torsten |
| Abstract: | In this paper we use the frequency domain Granger causality test of Breitung/Candelon (2006) to analyse short and long-run causality between energy prices and prices of food commodities. We find that the oil price Granger causes all the considered food prices. However, when controlling for business cycle fluctuations this link exists especially at low frequencies. Thus, short-run phenomena like herd behaviour and speculation do not seem to have a considerable effect on the studied food prices. The relation between oil and food prices is rather established by long-term developments. A possible explanation for this could be the production of biofuel. -- |
| JEL: | C32 Q43 Q02 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79798&r=ene |
| By: | Sebri, Maamar |
| Abstract: | The renewable energy consumption-economic growth nexus is a growing area of research over the last few years, emanating to mixed results. The aim of the current study is to quantitatively synthesise the empirical literature on the subject using the meta-analysis approach. In particular, a meta-multinomial regression is employed to investigate the sources of variation in the direction of causality between renewable energy consumption and economic growth. This causal relationship takes the form of four hypotheses, namely the conservation, growth, neutrality and feedback hypotheses. To the best of author’s knowledge, this study constitutes the first meta-analysis undertaken on the renewable energy consumption-economic growth nexus. The empirical results reveal that the variation in the supported hypotheses is due to a number of characteristics including model specification, data characteristics, estimation techniques (cointegration methods and causality tests), and development level of the country on which a study was conducted. |
| Keywords: | Causality; economic growth; meta-analysis; multinomial logit model; renewable energy consumption. |
| JEL: | Q2 Q26 Q3 Q4 |
| Date: | 2014–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53247&r=ene |
| By: | Roberto Gómez-Calvet (Business Department, European University of Valencia, Valencia, Spain); David Conesa (Statistics and Operational Research Department, Universitat de València, Valencia, Spain); Ana Rosa Gómez-Calvet (Business Finance Department, Universitat de València, Valencia, Spain); Emili Tortosa-Ausina (IVIE and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | Data Envelopment Analysis (DEA) models have been intensively used for measuring efficiency in a variety of contexts. More recently, the inclusion of undesirable outputs has extended their use to analyze relevant fields such as environmental efficiency. In this context, Slacks-Based Measure (SBM) models offer a remarkable alternative, largely due to their ability to deal with undesirable outputs. Additionally, super-efficiency evaluation in DEA is a useful complementary analysis for ranking the performance of efficient DMUs. Although the literature has already considered a pioneering proposal for dealing with super-efficiency in SBM models, which may be referred to as Super-SBM, we extend this approach to the presence of undesirable outputs. We illustrate this contribution in three scenarios where super-efficiency SBM models with undesirable outputs may be of interest: (i) the analysis of productivity change; (ii) the provision of a full ranking of efficiency (also including efficient units); and (iii) the detection of influential units. Finally, we present and discuss an empirical application dealing with environmental efficiency in electricity and derived heat generation in the European Union. |
| Keywords: | efficiency, energy, slacks-based measure, super-efficiency, undesirable outputs |
| JEL: | Q4 Q43 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2014/03&r=ene |
| By: | Lint Barrage; Eric Chyn; Justine Hastings |
| Abstract: | This paper explores whether and how environmental stewardship can be provided by private markets through green advertising. We examine the period surrounding the BP oil spill and estimate how BP’s pre-spill investment in “green advertising” affected the spill’s impact on retail prices and demand at BP gasoline stations. We use station-level prices and sales from a large sample of U.S. retail gasoline stations, and market-level advertising expenditures during BP’s 2000-2008 “Beyond Petroleum” advertising campaign. We find evidence consistent with consumer punishment of BP in the months following the spill; overall BP margins declined significantly by 4.2 cents per gallon, and volumes declined by 3.6 percent during the spill. We examine how pre-spill environmental advertising affected the spill’s impact on margins and sales, testing whether expenditures on green reputation act as a commitment to green production or as insurance against environmental damage. We find evidence in support of the latter: pre-spill exposure to BP advertising significantly softened the impact of the spill on BP retail margins, and abated losses to station share from stations switching to alternative gasoline brands. |
| JEL: | H0 H23 L0 M3 M38 Q5 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19838&r=ene |
| By: | Huppmann, Daniel |
| Abstract: | This article proposes a two-stage oligopoly model for the crude oil market. In a game of several Stackelberg leaders, market power increases endogenously as the spare capacity of the competitive fringe goes down. This effect is due to the specific cost function characteristics of extractive industries. The model captures the increase of OPEC market power before the financial crisis and its drastic reduction in the subsequent turmoil at the onset of the global recession. The two-stage model better replicates the price path over the years 2003-2011 than a standard simultaneous-move, one-stage Nash-Cournot model with a fringe. I also discuss how most large-scale numerical equilibrium models, widely applied in the energy sector, over-simplify and misinterpret market power exertion. Furthermore, I show that this two-stage Stackelberg model can be solved numerically as a Mixed Complementarity Problem with heterogeneous firms and discuss uniqueness. -- |
| JEL: | C61 C72 L71 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79758&r=ene |
| By: | Aymen Belgacem; Anna Creti; Khaled Guesmi; Amine Lahiani |
| Abstract: | The paper employs an event study methodology to investigate the macroeconomic announcements effects on S&P500 and oil prices. Our results provide evidence of a significant impact of the US macroeconomic news on oil prices. This impact is split into two components, namely the direct effect (common response) and indirect effect (volatility transmission). Altogether our results show that the volatility transmission is bidirectional since a significant volatility transmission from the oil market to the US stock market is revealed. Furthermore, a higher volatility transmission is recorded from the oil market to the stock market especially after the release of consumption indicators. |
| Keywords: | Stock Prices, Oil prices, Macroeconomic Announcements, Volatility Spillovers. |
| JEL: | G14 G15 C58 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-09&r=ene |
| By: | Varma, Vijaya Krushna Varma |
| Abstract: | Varma designed ultra modern and high efficiency turbines which can use gas, steam or fuels as feed to produce electricity or mechanical work for wide range of usages and applications in industries or at work sites. Varma turbine engines can be used in all types of vehicles. These turbines can also be used in aircraft, ships, battle tanks, dredgers, mining equipment, earth moving machines etc, |
| Keywords: | Turbine, Gas Turbine, Steam Turbine, Turbine Engine, Water turbine |
| JEL: | L6 L62 L64 L94 |
| Date: | 2012–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53213&r=ene |
| By: | Anna Creti; Khaled Guesmi; Ilyes Abid |
| Abstract: | This paper aims to explore the links between Brent crude oil index and stock markets index in OECD countries. We estimate time-varying conditional correlation relationships among these variables by employing a Multivariate Fractionally Integrated Asymmetric, Power ARCH model with dynamic corrected conditional correlations of Engle (1982) M-FIAPARCH-c-DCCE with a Student-t distribution. This process detects eventual volatility spillovers, asymmetries and persistence, which are typically observed in stock markets and oil prices. Our sample consists of monthly frequency stock indexes and oil price, covering 17 OECD countries for the period January, 1990- September, 2012. We find that at the beginning of our sample, oil has offered diversification opportunities with respect to the stock market, but this trend has been reversed in the last decade. We regroup the countries sample in 5 groups which present quite similar patterns of dynamic correlation between oil and their stock market and corroborate our geographical clustering by multivariate correlations among stock markets. |
| Keywords: | Multivariate Fractional Cointegration, Oil Prices, stock markets, M-FIAPARCH-c-DCCE. |
| JEL: | C10 E44 G15 |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-24&r=ene |
| By: | Jarait, Jurate (CERE, Umeå University); Di Maria, Corrado (University of East Anglia) |
| Abstract: | We use a panel dataset of about 5,000 Lithuanian firms between 2003 and 2010, to assess the impact of the EU ETS on the environmental and economic performance of participating firms. Using a matching methodology, we are able to estimate the causal impact of EU ETS participation on CO2 emissions, CO2 intensity, investment behaviour and profitability of participating firms. Our results show that ETS participation did not lead to a reduction in CO2 emissions, while we identify a slight improvement in CO2 intensity. ETS participants are shown to have retired part of their less efficient capital stock, and to have made modest additional investments from 2010. We also show that the EU ETS did not represent a drag on the profitability of participating firms. |
| Keywords: | Cap and trade; CO2 emissions; EU emissions trading system; ex-post evaluation; firm competitiveness; investment; matching; panel data; profits |
| JEL: | C23 L50 Q58 |
| Date: | 2014–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2014_002&r=ene |
| By: | Borck, Rainald; Pflüger, Michael |
| Abstract: | We study environmental pollution in an economic geography framework with two cities, where pollution arises from commuting within cities, goods transport between cities, production of manufacturing and agricultural goods, and residential energy use. We find that city size has an ambiguous effect on pollution levels. We also analyse how pollution changes with varying trade freeness, skilled wage income, and commuting costs. -- |
| JEL: | Q54 R12 F12 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79763&r=ene |
| By: | Irimie, Sabin Ioan; Timisan, Ionel Vasile |
| Abstract: | Currently, when the entire world faces and economic and financial crisis, the Romanian energy has mainly the following major problems: - Lack of a viable and sustainable energy strategy for long term; - Modernisation of the equipment and installations; - Liberalisation of the energy markets; - Interconnection of networks; - Ensuring the protections and the safety of the national energy system and of the afferent labour system. This paper highlights an opportunity that Romania has at its disposal through the funds of the main research funding instrument in the European Union to solve part of these problems and the way Romania has actually acted. |
| Keywords: | Sustainable development, the Seventh Framework Programme, Romanian energy sector |
| JEL: | O57 Q4 R5 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50263&r=ene |
| By: | Matthew Clair; Peter Blair Henry; Sandile Hlatshwayo |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ste:nystbu:14-03&r=ene |
| By: | Hampf, Benjamin; Krüger, Jens J. |
| Abstract: | This study explores the reduction potential of greenhouse gases for major pollution emitting countries of the world using nonparametric productivity measurement methods and directional distance functions. In contrast to the existing literature we apply optimization methods to endogenously determine optimal directions for the e ciency analysis. These directions represent the compromise of output enhancement and emissions reduction. The results show that for reasonable directions the adoption of best-practices would lead to sizable emission reductions in a range of about 20 percent compared to current levels. -- |
| JEL: | C14 D24 Q54 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79699&r=ene |
| By: | Michelsen, Claus; Rosenschon, Sebastian; Schulz, Christian |
| Abstract: | This paper investigates the effect of a housing company's size on the outcome of energetic refurbishment. We argue that economies of scale, economies of scope and effects of learning have an impact on the production of energy-efficient housing services. To test our hypothesis, we use unique data on 102,307 apartment houses in Germany. Besides owner characteristics and refurbishment effort, we introduce several control variables, to capture vintage, size and spatial effects. We find strong evidence for the presence of firm-specific, in particular size, effects on the energetic outcome of refurbishment. For example, large housing companies reduce real energy requirements of a building by 39.96% in the case of full refurbishment. In contrast, single-unit owners increase energy efficiency by only 15.93%. Moreover, the absolute differences between company types increase with refurbishment effort. -- |
| JEL: | R31 R32 Q48 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79689&r=ene |
| By: | Schmitt, Stephan; Kucsera, Denes |
| Abstract: | The aim of this paper is to give deeper insights into the impact of regulatory reforms and privatization on R&D spending of electricity utilities. Building on a panel data set including the biggest European utilities from eight EU-countries over a period from 1985 until 2010, we find a strong negative influence of privatization and also a negative overall impact of regulation on R&D investment. Nearing competition has a dampening effect on R&D spending, but once the market and regulatory framework conditions have been established, higher levels of competition positively influence R&D. Our results further indicate that the relation between competition and innovative investment can be described as inverted U-shaped. Finally, we could not find any evidence that (ownership) unbundling and incentive regulation affect R&D expenditures of the utilities. -- |
| JEL: | L43 L51 L94 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:80035&r=ene |
| By: | G. Papaioannou; P. Papaioannou; N. Parliaris |
| Abstract: | This work presents the results of an empirical research with the target of modeling the stylized facts of the daily expost System Marginal Price (SMP) of the Greek wholesale electricity market, using data from January 2004 to December of 2011. SMP is considered here as the footprint of an underline stochastic and nonlinear process that bears all the information reflecting not only the effects of changes in endogenous or fundamental factors of the market but also the impacts of a series of regulatory reforms that have continuously changed the market's microstructure. To capture the dynamics of the conditional mean and volatility of SMP that generate the stylized facts(mean reversion, price spikes, fat tails price distribution etc), a number of ARMAX GARCH models have been estimated using as regressors an extensive set of fundamental factors in the Greek electricity market as well as dummy variables that mimic the history of Regulator's interventions. The findings show that changes in the microstructure of the market caused by the reforms have strongly affected the dynamic evolution of SMP and that the best found model captures adequately the stylized facts of the series that other electricity and financial markets share. The dynamics of the conditional volatility generated by the model can be extremely useful in the efforts that are under way towards market restructuring so the Greek market to be more compatible with the requirements of the European Target Model. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1401.5452&r=ene |
| By: | Daniel M.Knight |
| Abstract: | During the Greek economic crisis a focus on energy practice highlights the temporal complexities of local coping strategies. Re-launched in 2011, the European Union supported solar energy initiative encourages installation of futuristic, high-tech photovoltaic panels on fertile agricultural land. Entangled with intricate notions of neo-colonialism and occupation, the solar program provides extra income for disenfranchised farmers and much needed local employment opportunities. However, winter 2012-13 witnessed a return en-mass to ‘archaic’ open fires and wood-burning stoves that locals associate with material poverty, pre-modernity, and pre-Europeanization. Energy practice provides a prism through which to discuss increased social suffering and reassess the place of Greece in a modern Europe. |
| Keywords: | Energy, Economic Crisis, Temporality, Modernity, Belonging |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hel:greese:81&r=ene |
| By: | Zied Ftiti; Aviral Tiwari; Ibrahim Fatnassi |
| Abstract: | The aim of this paper is to focus on whether or not an interaction relationship (or dependence) exists between the oil price and fundamental macroeconomic variables (that is industrial production, a proxy of macroeconomic activity, and inflation, measured by wholesale price index, Trade deficit, a measure of external account sustainability, and India-US exchange rate), calling upon the notion of correlation and then dynamic correlation. In our contribution we used the evolutionary co-spectral analysis (ESA) as presented Priestley and Tong (1973) and based on the methodology of Ftiti (2010), to analyze the impact of oil price changes in three macroeconomic variables namely industrial production, CPI based inflation and trade deficit. The ESA illustrates the evolution of the co-variance of a time-series at the different frequencies; the ESA demonstrates the correlation coefficient in the time–frequency space; and the information on the delay between the oscillations of two time-series i.e., lead–lag relationships provided by phase-difference. Our results show. Our results show that the degree of co-movement between the oil price index and the overall macroeconomic variables exhibit different patterns across the macroeconomic indicators. However, a common feature among the calculated comovements is that they re are higher in the short-term than in long-term. As economic implication, this later traduces that an oil shocks has lower long-run effect (weak persistent effect) on the India macroeconomy. |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-27&r=ene |
| By: | Schober, Dominik; Schäffler, Stephan; Weber, Christoph |
| Abstract: | We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive regulation. In contrast, it is common to apply only a single benchmark, the weighted average cost of capital (WACC), uniformly to all firms. This will lead to implicit discrimination. We combine models of firm-specific risk, liquidity management and regulatory rate setting to investigate impacts on capital costs. We focus on the example of the impact of component failures for electricity network operators. In a simulation model for Germany, we find that capital costs increase by approximately 0.2 to 3.0 percentage points depending on the size of the firm (in the range of 3% to 40% of total cost of capital). Regulation of monopolistic bottlenecks should take these risks into account to avoid implicit discrimination. -- |
| Keywords: | Idiosyncratic/firm-specific risk,discrimination,incentive-based and quality regulation,liquidity management,size effects,electricity networks |
| JEL: | G32 G33 L51 L94 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14010&r=ene |
| By: | Müller, Andrea; Heimeshoff, Ulrich |
| Abstract: | This paper provides empirical evidence that Accelerated Vehicle Programs exhibit a positive influence on car registrations using unique aggregate monthly data for 23 OECD countries from 2000 to 2010. The effect is still traceable if dynamic panel data fixed effects methods are used to address the problem of unobserved heterogeneity and controlling for macroeconomic variables like industrial production, interest rate, unemployment rate and gasoline price. Furthermore our analysis reveals that passenger car sales varied considerably before the car scrappage scheme was put in place to fight the 2009 sales crisis. Compared to a simulated counterfactual situation we find a positive overall effect (until autumn 2010) of the recent Accelerated Vehicle Programs for chosen countries: the United States, South Korea, Germany and the United Kingdom. Simulation results further show that timing and duration of the policies seem much more important for its success than the budget allocated to the program. -- |
| JEL: | C33 L62 H25 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79802&r=ene |
| By: | Jans, Jenny (Uppsala Center for Labor Studies); Johansson, Per (Uppsala Center for Labor Studies); Nilsson, J Peter (Uppsala Center for Labor Studies) |
| Abstract: | On normal days, the temperature decreases with altitude, allowing air pollutants to rise and disperse. During inversion episodes, a warmer air layer at higher altitude traps pollu- tants close to the ground. We show how readily available NASA satellite data on vertical temperature proles can be used to measure inversion episodes on a global scale with high spatial and temporal resolution. Then, we link inversion episode data to ground level pollution monitors and to daily in- and outpatient records for the universe of children in Sweden during a six-year period to provide instrumental variable estimates of the eects of air quality on children's health. The IV estimates show that the respiratory illness health care visit rate increases by 8 percent for each 10 m=m3 increase in PM10; an es- timate four times higher than conventional estimates. Importantly, by linking the health care data to detailed records of parental background characteristics, we show that chil- dren from low-income households suer signicantly more from air pollution than children from high income households. Finally, we provide evidence on the importance of several mechanisms that could contribute to the dierence in the impact of air pollution across children in rich and poor households. |
| Keywords: | Air pollution; Health; inversions; environmental policy; instrumental variable; nonparametric regression; socio-economic gradient in health |
| JEL: | I12 I14 J24 Q53 |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uulswp:2014_001&r=ene |
| By: | Adam Isen; Maya Rossin-Slater; W. Reed Walker |
| Abstract: | This paper examines the long-term impacts of in-utero and early childhood exposure to ambient air pollution on adult labor market outcomes. We take advantage of a new administrative data set that is uniquely suited for addressing this question because it combines information on individuals' quarterly earnings together with their counties and dates of birth. We use the sharp changes in ambient air pollution concentrations driven by the implementation of the 1970 Clean Air Act Amendments as a source of identifying variation, and we compare cohorts born in counties that experienced large changes in total suspended particulate (TSP) exposure to cohorts born in counties that had minimal or no changes. We find a significant relationship between TSP exposure in the year of birth and adult labor market outcomes. A 10 unit decrease in TSP in the year of birth is associated with a 1 percent increase in annual earnings for workers aged 29-31. Most, but not all, of this effect is driven by an increase in labor force participation. In present value, the gains from being born into a county affected by the 1970 Clean Air Act amount to about $4,300 in lifetime income for the 1.5 million individuals born into these counties each year. |
| JEL: | H40 H51 I12 I14 J17 J18 J31 Q51 Q53 Q58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19858&r=ene |
| By: | Lorenz Schneider |
| Abstract: | We introduce a multi-factor stochastic volatility model based on the CIR/Heston stochastic volatility process. In order to capture the Samuelson effect displayed by commodity futures contracts, we add expiry-dependent exponential damping factors to their volatility coefficients. The pricing of single underlying European options on futures contracts is straightforward and can incorporate the volatility smile or skew observed in the market. We calculate the joint characteristic function of two futures contracts in the model and use the two-dimensional FFT method of Hurd and Zhou (SIFIN 2010) to price calendar spread options. The model leads to stochastic correlation between the returns of two futures contracts. We illustrate the distribution of this correlation in an example. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1401.7913&r=ene |
| By: | Markwardt, Gunther; Farzanegan, Mohammad; Leßmann, Christian |
| Abstract: | We study how natural-resource rents a ffect the risk of internal conflict within countries and how the federal structure of countries influences this relationship. Natural-resource abundance may induce excessive rent-seeking and thus increase the risk of internal conflict. Fiscal and political decentralization as an institutional arrangement for rent-sharing and political codetermination of regions within a country may limit the destructive e ffect of the natural-resource rents on internal stability. Using cross-country and panel data covering the period 1984{2004 from more than 90 countries, we find evidence that natural-resource rents indeed increase the risk of internal conflict, but this relationship is signi cantly mitigated by decentralization. -- |
| JEL: | Q34 H77 P28 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79940&r=ene |
| By: | Hattendorff, Christian |
| Abstract: | The paper contributes to the ongoing debate on the natural resource curse, which refers to a negative link between natural resource abundance and economic growth. It shows empirically that resource-rich countries appear to have a less developed financial system and investigates a potential mechanism by applying insights from the finance and trade literature. It tests whether the resource sectors' lower demand of short-term external credit negatively affects financial development of a resource-based economy. This is done with cross-sectional and panel analysis, using an instrument for credit demand based on exogenous geographic determinants. The results, however, suggest that export concentration rather than firms' credit demand drives the detrimental effect of resources on finance. -- |
| JEL: | F10 G20 O13 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79805&r=ene |