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on Energy Economics |
| By: | World Bank |
| Keywords: | Urban Development - Urban Environment Banks and Banking Reform Energy - Energy and Environment Transport Economics Policy and Planning Environment - Environment and Energy Efficiency Finance and Financial Sector Development Transport |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16575&r=ene |
| By: | World Bank |
| Keywords: | Water Supply and Sanitation - Water Supply and Sanitation Governance and Institutions Environment - Climate Change Mitigation and Green House Gases Water Supply and Sanitation - Town Water Supply and Sanitation Rural Development - Common Property Resource Development Energy - Energy Production and Transportation |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16574&r=ene |
| By: | Stephen Littlechild |
| Abstract: | The framework proposed by Ofgem, OFT and CMA invokes a well-functioning market, but the Competition Commission has not always used such a concept, and when it has done so it has been problematic. Here, the well-functioning market is Ofgem’s vision of a successful market, not anchored in any actual market. Ofgem’s indicators of a competitive market have changed since 2002: tariff variety and products tailored to different customer groups are now a harmful complexity rather than a potential benefit of competition. The proposed “theories of harm” ignore regulatory policy and coordinated conduct facilitated by regulation. The analysis of weak customer response fails to distinguish between competition as an equilibrium state and as the Competition Commission's rivalrous discovery process over time. The framework thus reflects Ofgem’s perspective, but the assessment needs to be independent because regulation is at issue, and because Ofgem is no longer capable of a competition assessment. |
| Keywords: | Well-functioning market, competition assessment, retail competition |
| JEL: | L97 L51 |
| Date: | 2014–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1426&r=ene |
| By: | Masami Kojima |
| Keywords: | Macroeconomics and Economic Growth - Markets and Market Access Energy - Energy Production and Transportation Economic Theory and Research Private Sector Development - Emerging Markets International Economics and Trade - Access to Markets |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16524&r=ene |
| By: | Sovacool, Benjamin K. (Vermont Law School) |
| Abstract: | Four environmental dimensions of energy security—climate change, air pollution, water availability and quality, and land-use change—and the environmental impact of 13 energy systems on each are discussed in this paper. Climate change threatens more land, people, and economies in Asia and small Pacific island states than any other part of the planet. Air pollution takes a substantial toll on national health-care expenditures and economies in general. Of the 18 megacities worldwide with severe levels of total suspended particulate matter emissions, 10 are in Asia. Regarding water availability and quality, hydropower, nuclear power, and thermal power account for 10% to 15% of global water consumption, and the volume of water evaporated from reservoirs exceeds the combined freshwater needs of industry and domestic consumption. In the domain of climate change, rising sea levels could contaminate freshwater aquifers possibly reducing potable water supplies by 45%. Changes in land use for fuelwood collection and biofuel production in Southeast Asia have resulted in deforestation at 5 times the global average and 10 times the average for the rest of Asia. Policymakers must begin to incorporate the cost of these negative consequences into energy prices. |
| Keywords: | environment; water policy; climate change; energy security; Asia-Pacific |
| JEL: | Q40 Q43 Q51 |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0399&r=ene |
| By: | Isaak, David (FGE-FACTS Global Energy) |
| Abstract: | By 2010, demand for oil in developing Asia substantially exceeded that of North America and Europe combined, but demand for natural gas has been expanding rapidly and countries with large coal resources have used them instead of oil wherever possible. The goal of oil security is to make domestic economies and the international market adaptable to changes in availability and price. Increasing oil production and decreasing demand; producing more alternatives; and increasing stocks, fungibility, and market responsiveness augment security while subsidies diminish it. The threat today is not targeted cutoffs; it is price spikes, and strategic reserves can help counter them. Lack of specification restricts the free flow of petroleum products and therefore decreases regional energy security; fungibility would be greatly increased if there were some degree of standardization. In 2010, 76% of all Middle East exports went to Asia, but oil from the Middle East and Africa will not satisfy the growing Asian demand. Asian refining capacity cannot, however, cope with the large undeveloped resources in the Americas from super-heavy deposits or tar sands. A flourishing benchmark futures market east of Suez would help to ensure fair pricing and to moderate long-term price fluctuations. |
| Keywords: | oil security; energy; Asia and the Pacific |
| JEL: | Q31 Q40 Q41 |
| Date: | 2014–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0400&r=ene |
| By: | Xiaodong Wang; Luiz Barroso; Gabriela Elizondo |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Energy - Energy and Environment Power and Energy Conversion Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18676&r=ene |
| By: | World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Energy - Energy and Environment Environment - Environment and Energy Efficiency |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16710&r=ene |
| By: | Ross, Michael M. D. (RER Energy) |
| Abstract: | Asia’s burgeoning energy demand has stimulated interest in photovoltaics, wind power, and unconventional gas (shale gas, tight gas, coal-bed methane, and coal-mine methane). For each of these, the resource, current status, future prospects, environmental implications, investment and infrastructure requirements, and risks are examined. Shale gas has revolutionized North American gas supply, but may develop slowly in Asia due to challenging geological conditions, lack of geological data, dense populations, and pipeline and service industry limitations. In the People’s Republic of China (PRC), with technically recoverable resources estimated at 20 gigatons of oil equivalent (20% of the world total), significant production may start around 2017–2020, followed 5 years later by India and possibly Pakistan, which have much smaller resources. Even by 2035, unconventional gas is unlikely to supply more than 4%–8% of primary energy in the PRC, India, and Indonesia. Environmental concerns include methane emissions during combustion and production, water and land requirements, and water contamination. The solar resource is excellent across developing Asia; the wind resource is strong in Afghanistan, the PRC, Kazakhstan, Mongolia, and Viet Nam. Levelized costs of electricity are higher for wind and photovoltaics than for domestic gas and coal, and low-cost hydro and nuclear, although by 2020 to 2030 the renewables will beat imported gas and coal, and higher-cost nuclear and hydro. To supply around 10% of developing Asia’s electricity in 2035, an investment of $900 billion would be required for wind and $1.4 trillion for photovoltaics, excluding infrastructure upgrades. The PRC and India are already world leaders in wind and photovoltaics. |
| Keywords: | energy supply; energy sources; Asia |
| JEL: | Q20 Q40 Q42 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0403&r=ene |
| By: | Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ; |
| Abstract: | Energy efficiency is often defined as delivered energy service per unit of energy supplied into a system. Supply-side energy efficiency refers to decreasing energy losses in the supply chain, for improved performance in the production and delivery of electricity and heat. Demandside energy efficiency (DSEE) is achieved through consuming less energy for the same level of service, for improved efficiencies at the point of final energy use. DSEE, in particular, offers vast potential to meet regional energy needs in Asia, yet supply-side strategies tend to be prioritized as a focus of investment and planning. Over the past decade, the Asian Development Bank (ADB) has succeeded in quickly scaling up its investment in energy efficiency and the development of renewable resources within its developing member countries through ADB’s Clean Energy Program. This report examines prospects to accelerate lending and investment for DSEE in Asia, in light of trends that are driving energy use and policy and regulatory change in developing countries. Such efforts can help realize the full potential of DSEE as a least-cost, low-carbon resource for energy security, environmental protection, and sustainable and inclusive growth benefiting all Asians. |
| Keywords: | energy, developing Asia, energy efficiency, energy policy, demand side energy efficiency, supply side energy efficiency, end use energy efficiency, clean energy, energy supply, energy savings, fossil fuels, renewables, renewable energy, energy portfolio, CO2, ghg, greenhouse gas emissions, energy mix, energy efficiency standards, building codes |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt135828-3&r=ene |
| By: | Lee, Minsoo (Asian Development Bank); Park, Donghyun (Asian Development Bank); Saunders, Harry (Decision Processes Incorporated) |
| Abstract: | The three pillars of Asian energy security are an adequate, reliable supply; environmental sustainability; and affordable access for all. As Asians become more affluent, managing demand by tackling outmoded subsidies so prices reflect true costs, exploring green innovations in technology and prudent infrastructure design, and changing behavior will be crucial to achieving security as will expanding both renewable and nonrenewable sources in an environmentally sound and cost-effective manner. Without radical changes to the region’s energy mix, oil consumption will double, natural gas consumption will triple, and coal consumption will increase by 81%. This would double carbon dioxide emissions to nearly 24 billion tons per year by 2035 which is more than the 22 billion tons experts see as the maximum sustainable emissions for the whole world. To fully manage demand and explore new sources, cooperative programs that integrate energy delivery systems regionally must be implemented. Jointly promoting energy savings and security does not require new technology or pose high costs, but it does require the political will to cooperate and the confidence that makes cooperation possible. Cross-border collaboration is technologically and commercially viable. What is missing is the political commitment to cooperate in energy markets and to build the necessary infrastructure. |
| Keywords: | energy security; environmental sustainability; affordable access; economic growth; regional energy market |
| JEL: | Q30 Q32 Q47 Q48 Q51 Q56 |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0398&r=ene |
| By: | Ashish Khana; Luiz Barroso |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Energy - Energy and Environment Environment - Environment and Energy Efficiency |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18673&r=ene |
| By: | Faizuddin Ahmed; Chris Trimble; Nobuo Yoshida |
| Keywords: | Economic Theory and Research Macroeconomics and Economic Growth - Political Economy Energy - Energy and Poverty Alleviation Energy - Energy Production and Transportation Energy - Electric Power |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18362&r=ene |
| By: | Koffi Ekouevi; Kate Kennedy Freeman; Ruchi Soni |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Energy - Energy and Environment Energy - Energy Production and Transportation Energy - Renewable Energy Environment - Environment and Energy Efficiency |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18411&r=ene |
| By: | Heshmati, Almas (Jönköping University, Sogang University); Abolhosseini, Shahrouz (Seoul National University) |
| Abstract: | Information and communication technology plays an important role in achieving a higher level of energy efficiency. In particular, energy efficiency can be achieved by integrating information technology into electricity networks to enable the interaction between suppliers and customers (smart grids). Power generation by renewable energy sources can also benefit from this integration of technologies. Distributed power generation, which will be the basis of renewable energy production, encourages the production of renewable energy resources and, accordingly, decreases transmission loss, increases energy saving, and enhances energy efficiency. Therefore, integrating distributed, renewable energy sources and smart grids within local marketplaces for trading renewable energy in small units can be a promising combination. In this paper, we propose a structure of a marketplace for renewable energy sources, design a market mechanism for trading in this market, and outline the requirements for such a market to function efficiently. Finally, we conclude and present recommendations to policymakers to provide incentives to generators to increase deployment of renewable energy sources and to end users to save electricity and to consume clean energy. |
| Keywords: | market design, market mechanism, trading energy, renewable energy, clean energy, energy policy |
| JEL: | D40 H44 L11 L49 Q13 Q27 Q42 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8375&r=ene |
| By: | Gabriela Elizondo Azuela; Rafael Ben |
| Keywords: | Energy - Energy Production and Transportation Energy - Windpower Environment - Carbon Policy and Trading Environment - Climate Change Mitigation and Green House Gases Science and Technology Development - Science of Climate Change |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18412&r=ene |
| By: | Zubair Sadeque; Dana Rysankova; Raihan Elahi; Ruchi Soni |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Finance and Financial Sector Development - Access to Finance Technology Industry Energy - Energy Production and Transportation Energy - Renewable Energy Industry |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18679&r=ene |
| By: | Raphael J. Heffron; William J. Nuttall |
| Abstract: | This paper examines the role of nuclear energy in Scotland, and the concerns for Scotland as it votes for independence. The aim is to focus directly on current Scottish energy policy and its relationship to nuclear energy. The paper does not purport to advise on a vote for or against Scottish independence but aims to further the debate in an underexplored area of energy policy that will be of value whether Scotland secures independence or further devolution. There are four central parts to this paper: (1) consideration of the Scottish electricity mix; (2) an analysis of a statement about nuclear energy made by the Scottish energy minister; (3) examination of nuclear energy issues as presented in the Scottish Independence White Paper; and (4) the issue of nuclear waste is assessed. A recurrent theme in the analysis is that whether one is for, against, or indifferent to new nuclear energy development, it highlights a major gap in Scotland’s energy and environmental policy goals. Too often, the energy policy debate from the Scottish Government perspective has been reduced to a low-carbon energy development debate between nuclear energy and renewable energy. There is little reflection on how to reduce Scottish dependency on fossil fuels. For Scotland to aspire to being a low-carbon economy, to decarbonising its electricity market, and to being a leader within the climate change community, it needs to tackle the issue of how to stop the continuation of burning fossil fuels. |
| Keywords: | Scotland; Scottish Independence; Nuclear Energy Policy; Nuclear Waste. |
| JEL: | K32 L94 O21 Q48 |
| Date: | 2014–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1427&r=ene |
| By: | Sudeshna Ghosh Banerjee; Elisa Portale; Heather Adair-Rohani; Sophie Bonjour |
| Keywords: | Energy - Energy Production and Transportation Energy - Energy and Environment Environment - Climate Change Mitigation and Green House Gases Environment - Environment and Energy Efficiency Transport |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18414&r=ene |
| By: | World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency Energy - Energy and Environment |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:17603&r=ene |
| By: | Jonathan Sinton; Joeri de Wit |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Energy - Energy Production and Transportation Energy - Energy and Environment Environment - Environment and Energy Efficiency |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18678&r=ene |
| By: | Ahmed Atil (ESC Rennes School of Business - ESC Rennes School of Business); Amine Lahiani (ESC Rennes School of Business - ESC Rennes School of Business, LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans); Duc Khuong Nguyen (IPAG - IPAG Business School - Ipag) |
| Abstract: | In this article,we use the recently developed nonlinear autoregressive distributedlags (NARDL) model to examine the pass-through of crude oil prices into gasoline and natural gas prices. Our approach allowsus to simultaneously test the short-and long-run nonlinearities through positive and negative partial sum decompositions of the predetermined explanatory variables. It also offers the possibility to quantify the respective responses of gasoline and natural gas prices to positive and negative oil price shocks from the asymmetric dynamic multipliers. The obtained results indicate that oil prices affect gasoline prices and natural gas prices in an asymmetric and nonlinear manner, but the price transmission mechanism is not the same. Important policy implications can be learned from the empirical findings. |
| Keywords: | Energy price transmission ; NARDL model ; Asymmetric pass-through |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01022598&r=ene |
| By: | Fei Teng (Institute of Energy, Environment and Economy, Research Center for Contemporary Management, Tsinghua University); Frank Jotzo (Crawford School of Public Policy, The Australian National University) |
| Abstract: | China needs to reduce its carbon emissions if global climate change mitigation is to succeed. Conventional economic analysis views cutting emissions as a cost, creating a collective action problem. However, decarbonization can improve productivity and provide co-benefits that accord with multiple national policy objectives. We track China's progress in reducing the emissions intensity of the economy, and construct a macro scenario with China's carbon emissions peaking in the 2020s. Investment in greater energy productivity and economic restructuring away from heavy industries can bring productivity gains, and decarbonization of energy supply has important co-benefits for air pollution and energy security. Combined with lower climate change risks and the likelihood that China's actions will influence other countries, this suggests that cutting carbon emissions is not only in China's self-interest but also in the global interest. To properly identify the true costs and benefits of climate change action requires new thinking in economic analysis. |
| Keywords: | China, climate change mitigation, co-benefits |
| JEL: | O44 Q48 Q54 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1413&r=ene |
| By: | Gabriela Elizondo Azuela; Luiz Barroso |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Private Sector Development - Emerging Markets Energy - Energy Production and Transportation Environment - Environment and Energy Efficiency |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18674&r=ene |
| By: | Zhi-Fu Mi; Su-Yan Pan; Hao Yu; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | An optimization model is developed based on the Input-Output model to assess the potential impacts of industrial structure on the energy consumption and CO2 emission. The method is applied to a case study of industrial structure adjustment in Beijing, China. Results demonstrate that industrial structure adjustment has great potential of energy conservation and carbon reduction. When the average annual growth rate of GDP is 8.29% from 2010 to 2020, industrial structure adjustment can save energy by 39.42% (50.06 million tons of standard coal equivalent), and reduce CO2 emission by 46.06% (96.31 million tons) in Beijing in 2020. Second, Beijing had better strive to develop several low energy intensive and low carbon intensive sectors, such as information transmission, computer service and software, and finance. Third, energy intensity is possible to decrease without negatively affecting economic growth by reasonable industrial structure adjustment. Four, compared to 'intensity targets', 'total amount targets' are more effective on the energy conservation and carbon reduction, but have much greater negative effects on economic growth. Therefore, it needs to be balanced between 'total amount targets' and 'intensity targets'. |
| Keywords: | Industrial structure, Energy consumption, CO2 emission, Input-output, Optimization model |
| JEL: | Q41 C61 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:51&r=ene |
| By: | Fueyo, Norberto (University of Zaragoza); Gómez, Antonio (University of Zaragoza); Dopazo, César (University of Zaragoza) |
| Abstract: | We calculate primary energy intensity (PEI), the carbon dioxide intensity of the primary energy mix (CIX), energy self-sufficiency (ESS), affordability of electricity (EOL), and primary energy diversification (DIV) from 2010 to 2035 for individual economies and for the Asia and Pacific region as a whole under business-as-usual and alternative scenarios. The PEI will decrease in most economies usually by more than 20% while the CIX will increase. The ESS will decrease except in Japan because of renewables while the DIV will increase slightly. By 2035, energy will be much more affordable in Asia because of strong economic growth. The EOL will be four times that of Europe and North America and twice that of Latin America. As regional aggregates, the PEI will decrease except in the Pacific, but the CIX will generally increase. The ESS will decrease substantially from 100% in 2009 to 59.8% in 2035; the DIV will remain at 2010 levels. Central Asia offers the best benefits for regional integration. Regionally integrating the power grid would make the system more manageable for larger shares of renewables and would alleviate the cost of importing fuel for economies without indigenous resources and for those whose fossil fuel reserves will be depleted by 2035. |
| Keywords: | energy security; energy sustainability; energy affordability; the Asia and Pacific |
| JEL: | Q40 Q50 Q56 |
| Date: | 2014–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0401&r=ene |
| By: | Qiao-Mei Liang; Yun-Fei Yao; Lu-Tao Zhao; Ce Wang; Rui-Guang Yang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | This paper introduces the China Energy & Environmental Policy Analysis (CEEPA) system. The core of CEEPA is a recursive dynamic computable general equilibrium model, in which the interactions among different agents in the macroeconomic system of China are described. The specific characteristics of Chinese labor market and energy market are also taken into account. The corresponding software system is also developed. CEEPA and its related software was designed for providing decision makers a uniform platform to simulate, analyze and compare different energy and environmental policies conveniently, flexibly and immediately. The application of CEEPA is illustrated in a case study which compares the energy, environmental and socio-economic impacts of energy tax and carbon tax. Results show that given the same extent of direct disturbance, carbon tax is able to restrict energy consumption and CO2 emissions to a greater extent, but the general socio-economic cost caused by energy tax is lower. |
| Keywords: | Computable general equilibrium, Energy and environmental policy, Decision support system |
| JEL: | Q40 C68 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:43&r=ene |
| By: | Bing Wang; Ruo-Yu Ke; Xiao-Chen Yuan; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | Renewable energy development is a major response to address the issues of climate change and energy security. The utilization of renewable resources, however, highly depends on the climate conditions, which may be impacted in the future due to global climate change. Based on literature analysis, this paper presents a general framework for renewable energy vulnerability assessment and applies grey cluster analysis method to demonstrate the features of vulnerability, and then employs the simple additive weighting approach to address the multiple-attribute decision problems of vulnerability assessment in China. The categorized results imply that the proposed index system is suitable for decision-making analysis and comparative analysis of renewable energy vulnerability to climate change in China. In terms of exposure part, the cluster results are complex and varied due to the unique combination of natural factors, social factors and the energy structure. In the sensitivity section, the results are presented on the distribution of areas rich in hydropower, wind power and solar energy potential. Moreover, the main results of this study are the higher renewable energy vulnerability of the poorer regions of China to climate change and the relative higher importance of adaptive capacity building in vulnerability management. Finally, policy recommendations on regional renewable energy vulnerability management are also made. |
| Keywords: | Renewable energy, Vulnerability, Climate change, Grey cluster analysis, Vulnerability scoping diagram |
| JEL: | Q41 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:52&r=ene |
| By: | Barbara Annicchiarico (DEDI and CEIS, Università di Roma "Tor Vergata"); Anna Rita Bennato (Centre for Competition Policy, University of East Anglia); Emilio Zanetti Chini (DEDI and CEIS, Università di Roma "Tor Vergata") |
| 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: | 2014–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:320&r=ene |
| By: | Wei Jin (School of Public Policy, Zhejiang University); ZhongXiang Zhang (School of Economics, Fudan University) |
| Abstract: | Whether China maintains its business-as-usual energy-intensive growth trajectory or changes to a sustainable development alternative has significant implications for global energy and climate governance. This paper is motivated to theoretically examine ChinaÕs potential transition from its energy-intensive status quo to an innovation-oriented growth prospect. We develop an economic growth model that incorporates the endogenous mechanism of technological innovation and its interaction with fossil energy use and the environment. We find that from an initial condition with a pristine environment and a small amount of capital installation, the higher dynamic benefits of physical investment will incentivize the investment in physical capital rather than R&D-related innovation. Accumulation of the energy-consuming capital thus leads to an intensive use of fossil energy - an energy-intensive growth pattern. But if the mechanism of R&D-related innovation is introduced into the economy, until the dynamic benefit of R&D is equalized with that of capital investment, the economy embarks on R&D for innovation. As a result, the economy will evolve along an innovation-oriented balanced growth path where consumption, physical capital and technology all grow, fossil energy consumptions decline, and environmental quality improves. |
| Keywords: | technological innovation, energy consumption, economic growth model |
| JEL: | Q55 Q58 Q43 Q48 O13 O31 O33 O44 F18 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1412&r=ene |
| By: | Pascal Gourdel (Centre d'Economie de la Sorbonne - Paris School of Economics); Maria Lykidi (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | In the case of a large nuclear set (like the French set), nuclear production needs to be flexible to adjust to the predicted evolutions of the energy demmand. Consequently, the dominant position of nuclear in the national energy mix makes it responsible for the overall equilibrium of the electricity system which is directly intertwined with social welfare. In a previous work, we looked at producers own profits (short-term, inter-temporal) considering the equality between supply and demand. Here, we proceed with a full optimization of the social welfare in an identical framework. Theoretically, the optimal production behaviour that maximizes social welfare is characterized by a constant thermal production and a totally flexible nuclear production given that the nuclear capacity is sufficient. Numerically, the significant amount of nuclear capacities compared with thermal capacities in the French electricity market leads to the same “paradoxical” production behaviour. Therefore, we conclude that social optimum is ensured within our model by investing sufficiently in nuclear capacity. The optimal production scheduling determined by the social welfare maximization problem and the optimal inter-temporal production problem are totally opposite. |
| Keywords: | Electric power, nuclear power plant, flexibility, nuclear fuel stock, thermal generation, social welfare, total cost minimization. |
| JEL: | C61 C63 D24 D41 L11 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:14059&r=ene |
| By: | Simon Dietz; Nicholas Stern |
| Abstract: | To slow or not to slow’ (Nordhaus, 1991) was the first economic appraisal of greenhouse gas emissions abatement and founded a large literature on a topic of great, worldwide importance. In this paper we offer our assessment of the original article and trace its legacy, in particular Nordhaus’ later series of ‘DICE’ models. From this work many have drawn the conclusion that an efficient global emissions abatement policy comprises modest and modestly increasing controls. On the contrary, we use DICE itself to provide an initial illustration that, if the analysis is extended to take more strongly into account three essential elements of the climate problem – the endogeneity of growth, the convexity of damages, and climate risk – optimal policy comprises strong controls. To focus on these features and facilitate comparison with Nordhaus’ work, all of the analysis is conducted with a high pure-time discount rate, notwithstanding its problematic ethical foundations. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp180&r=ene |
| By: | Emhjellen, Magne (Petoro); Osmundsen, Petter (UiS) |
| Abstract: | There is a planning gap for CCS projects in Europe. CCS demonstration plants are not implemented as expected. This fact is at odds with optimistic valuation reports that apply socio-economic valuation criteria for climate projects. However, CCS plants are in most cases to be implemented by private companies. Economic valuation of climate projects, seen from the perspective of the commercial companies, is the subject of this article. We examine key economic parameters of 27 oil and gas projects and compare it to a CCS project. We find that the CCS project ranks the lowest on all profitability metrics, and is unlikely to be implemented by a private company. Our findings may explain why it is hard for oil companies to justify climate projects in their portfolios. |
| Keywords: | Climate projects; decision analysis; CO2 |
| JEL: | G31 G38 M21 Q48 Q51 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2014_008&r=ene |
| By: | Bataille, Marc; Steinmetz, Alexander; Thorwarth, Susanne |
| Abstract: | While liberalization in energy markets has been a widely successful process all over the world, incumbents often still hold a dominant position. Thus, electricity wholesale markets are subject to market surveillance. Nevertheless, consolidated findings on abusive practices of market power and their cause and effect in wholesale electricity markets are scarce and non-controversial market monitoring practices fail to exist. Our application of the established measure of market concentration RSI shows that it serves as a decent indicator for the rents that can be gained in the market but also reveals considerable weaknesses of the RSI. Therefore, we propose and apply the "Return on Withholding Capacity Index" (RWC) representing a measure of the firms' incentive of withholding capacity as a complementary index to the RSI. -- |
| Keywords: | Market Power,Electric Power Markets,Measurement |
| JEL: | L11 L43 L94 K23 C13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14048&r=ene |
| By: | Valentina Bosetti; Marco Maffezzoli |
| Abstract: | Recent applications to the modeling of emission permit markets by means of stochastic dynamic general equilibrium models look into the relative merits of different policy mechanisms under uncertainty. The approach taken in these studies is to assume the existence of an emission constraints that is always binding (i.e. the emission cap is always smaller than what actual emissions would be in the absence of climate policy). Although this might seem a reasonable assumption in the longer term, as policies will be increasingly stringent, in the short run there might be instances where this assumption is in sharp contrast with reality. A notable example would be the current status of the European Emission Trading Scheme. This paper explores the implications of adopting a technique that allows occasionally, rather than strictly, binding constraints. With this new setup the paper sets out to investigate the relative merits of different climate policy instruments under different macro-economic shocks. Keywords: Dynamic Stochastic General Equilibrium model, emission trading, carbon tax, occasionally binding constraints. JEL codes: Q58, Q54, E2. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:523&r=ene |
| By: | Gaye Gencer (Business Administration Department, Yeditepe University); Sercan Demiralay (International Finance Department, Yeditepe University) |
| Abstract: | Oil prices affecting production costs, inflation rates and therefore economic growth, have a direct impact on stock market returns. In the last two decades sharp increases in oil prices led way to stock market collapses which were transmitted to the global economy as downturns. This paper examines the relationship between crude oil prices and sectoral returns of 18 sub-indices from Borsa Istanbul. We use monthly data for the period between January 2002 and April 2013. We apply multivariate time series analysis by conducting VAR (Vector Auto-Regression) and VECM (Vector Error Correction Model) methodology to explore the short-run and the long-run dynamics for the series under investigation. We also employ impulse response and Granger causality methods to investigate the structural relationship between the variables. We figure out a long-run equilibrium relation and a uni-directional causality from oil prices to chemical-petroleum-plastic sub-index as oil prices directly affect the revenues of the companies operating in this sector. For the other sub-indices the empirical results suggest no long-run equilibrium relation. |
| Keywords: | oil price shocks, sector indices, impulse response functions, variance decompositions |
| JEL: | M2 O16 R11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:eyd:cp2013:245&r=ene |
| By: | Bao-Jun Tang; Cheng Shen |
| Abstract: | The paper uses Capital Asset Pricing Model (CAPM) to analyze the market risk in European Union Emission Trading System (EU ETS) and Clean Development Mechanisms (CDM) and Zipf analysis technology to analyze the carbon price volatility in different expectations of returns in the two markets. The results show that the systematic risk of the EU ETS market is at around 0.07%, but CDM market is clearly divided into two stages, the systematic risk of the futures contracts in the previous stage (DEC09-DEC12) is less than EUETS market, but systematic risk of the futures contracts that entered into the market is greater than the EUETS market and has a higher market sensitivity. But on the unsystematic risk, the CDM market is always greater than the EU ETS market. Abnormal returns in the two carbon markets are both lower than 0.02%, but CDM is higher. The probability of price down is higher than that of price up. Carbon price is affected by market mechanism and the external factor (economic crisis and environmental policies) in the low expectations of returns, but in the high expectations of returns, compared with the CDM market, the carbon price change in EU ETS market is more instable and higher risky. |
| Keywords: | European Union Emission Trading System (EU ETS), Clean Development Mechanisms (CDM), Systematic Risk, Expectations of Returns |
| JEL: | C10 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:49&r=ene |
| By: | Tooraj Jamasb; Rabindra Nepal |
| Abstract: | Incentive regulation needs to adapt to the emerging changes in the operating environment of the electricity networks and take into account the security of these. This paper assesses the current issues and options in economic regulation of network security across the European electricity systems. An output oriented incentive regulatory approach combines the efficiency promoting mechanisms in a revenue cap framework with output based incentives such as better provision of network security. Thus, incentive regulation is destined to move from pursuing the optimal to being more practical. The RIIO regulatory framework in the UK and the service quality regulation in Italy provide good examples of application of output-based regulation. We also propose an output-based approach for regulation of network security, which accounts for the risks from natural, accidental and malicious threats. We conclude that regulation for network security may also involve looking beyond economic network regulation and focus on the wider security policy and regulation interface considering the risks facing the electricity networks. |
| Keywords: | network security, exceptional events, incentive regulation, output-based |
| JEL: | L51 L94 L98 |
| Date: | 2014–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1425&r=ene |
| By: | Pascal Gourdel (Centre d'Economie de la Sorbonne - Paris School of Economics); Maria Lykidi (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | In many countries, the electricity systems are quitting the vertically integrated monopoly organization for an operation framed by competitive markets. It therefore questions how flexible nuclear plants capable of load-following should be operated in an open market framework. A number of technico-economical features of the operation of flexible nuclear plants drive our modelling complex which makes difficult to determine the optimal management of the nuclear production within our model. In order to examine the existence of an equilibrium and calculate it, we focus on a short-term (monthly) management horizon of the fuel of nuclear reactors. The marginal cost of nuclear production being (significantly) lower than that of thermal production induces a discontinuity of producer's short-term profit. The problem of discontinuity makes the resolution of the optimal short-term production problem extremely complicated and even leads to a lack of solutions. That is why it is necessary to study an approximate problem (continuous problem) that constitutes a “regularization” of our economical problem (discontinuous problem). Its resolution provides us with an equilibrium which proves the existence of an optimal production trajectory. |
| Keywords: | Electricity market, nuclear generation, competition with reservoir, optimal short-term production problem, price discontinuity, quadratic programming. |
| JEL: | C61 C63 D24 D41 L11 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:14057&r=ene |
| By: | Musiliu O. Oseni; Michael Pollitt |
| Abstract: | This paper focuses on the institutional arrangements for facilitating electricity regional cooperation. We begin by discussing the theory of international trade cooperation in electricity, with a view to discussing what preconditions might be important in facilitating wide area trading across national borders. We then discuss two sets of case studies. The first set of case studies focuses on three regional developing country power pools – the Southern African Power pool (SAPP), West African Power pool (WAPP) and the Central American Power Market (SIEPAC). The second set focuses on three regional power pools in more developed countries – PJM in the United States, the Single Electricity Market (SEM) in Ireland and the South East Europe market (ECSEE). These cases highlight both the potential and difficulty of having cross jurisdictional power pools. In the light of the theory and evidence we present, we draw key lessons in the areas of: preconditions for trading; necessary institutional arrangements; practicalities of timetabling; reasons to be hopeful about future prospects; and suggestions for future research. |
| Keywords: | electricity trade; power pools; regional electricity markets |
| JEL: | F13 L94 |
| Date: | 2014–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1428&r=ene |
| By: | Sanchez Martin, Miguel Eduardo; Escribano Frances, Gonzalo; de Arce Borda, Rafael |
| Abstract: | Turkey has historically struggled to attract foreign investors. This paper argues that not only macroeconomic and political stability, but also regional integration explains the upsurge in foreign direct investment observed since 2005. The analysis draws from a qualitative framework. It discusses how, contrary to the Customs Union Treaty for industrial products with the European Union, the official start of the European Union's accession to negotiations in 2005 encompassed a wide set of reforms in several chapters directly or indirectly affecting the business climate. The reforms helped to enhance foreign direct investment attraction in Turkey. However, it seems that the global economic slowdown starting in 2009 and increasing Euro-skepticism have already started to erode this effect. Only large foreign investment in the energy sector observed in 2009-13, explained by the energy security strategy of the European Union and the privatization agenda, has prevented the collapse of foreign direct investment inflows to Turkey. |
| Keywords: | Foreign Direct Investment,Investment and Investment Climate,Knowledge Economy,Trade Liberalization,Oil&Gas |
| Date: | 2014–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6970&r=ene |
| By: | Strunz, Sebastian; Gawel, Erik; Lehmann, Paul |
| Abstract: | Germany has embarked on an ambitious project to transform its energy system until 2050 - the so-called Energiewende. Some critics contend that the Energiewende imposes unneces-sary and avoidable welfare losses due to a lack of integration within the EU. In contrast, these critiques largely miss the point because the asserted lack of integration cannot be pinned on the Energiewende and the welfare consequences of EU-wide integration are less clear than the critiques imply. -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:182014&r=ene |
| By: | Johan Grijsen |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Science and Technology Development - Science of Climate Change Environment - Global Environment Facility Environment - Climate Change Impacts Water Supply and Sanitation - Water Supply and Systems |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:18243&r=ene |
| By: | Kent M. Hymel (Department of Economics, California State University at Northridge); Kenneth Small (Department of Economics, University of California-Irvine) |
| Abstract: | Previous research suggests that the elasticity of light-duty motor vehicle travel with respect to fuel cost, known as the “rebound effect,†is modest in size and probably declined in magnitude between the 1960s and the late 1990s. However, turmoil in energy markets during the early 2000s has raised new questions about the stability of this elasticity. Using panel data on U.S. states, we revisit the simultaneous-equations methodology of Small and Van Dender (2007) and Hymel et al. (2010) to see whether structural parameters have changed. Using data through 2009, we confirm the earlier finding of a rebound effect that declines in magnitude with income, but we also find an upward shift in its magnitude of about 0.025 during the years 2003-2009. In addition, we find that the rebound effect is much greater in magnitude in years when gasoline prices are rising than when they are falling. It is also greater during times of media attention and price volatility, which explains about half the upward shift just mentioned. |
| Keywords: | Rebound effect; VMT elasticity; Gasoline demand; Asymmetric response |
| JEL: | Q41 R41 L91 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:irv:wpaper:141503&r=ene |
| By: | Osmundsen, Petter (UiS) |
| Abstract: | Substantial elements of innovation have been observable during recent years in rig supply, in particular regarding contracts and organisation. This trend has been driven by the fact that rising costs over many years have put profitability under pressure. On the basis of theory and available empirical insights, the paper outlines the conditions where specific organisational and contractual solutions are best suited. Optimum rig procurement will depend in part on whether the oil companies have time-critical drilling targets, the ability and willingness of the parties to bear risk and the purchaser's competence and capacity to manage and follow up procurement. |
| Keywords: | Innovation in the supply and procurement of rig services Rig services; contracts; organisation; innovation |
| JEL: | G34 L60 M10 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2014_009&r=ene |
| By: | World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Air Quality and Clean Air Transport Economics Policy and Planning Environmental Economics and Policies Environment - Brown Issues and Health Transport |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:17849&r=ene |
| By: | Achim Voss (University of Muenster); Mark Schopf (University of Paderborn) |
| Abstract: | Consider a lobby group of exhaustible-resource suppliers, which bargains with the government over the extraction of an exhaustible resource and over contribution payments. We characterize the path of contributions and the resulting extraction path, taking into account how the environmental damage of resource usage and the demand elasticity change optimal extraction. A high marginal environmental damage reduces the governmentÕs preferred extraction, a high price elasticity of resource demand reduces that of the lobby. We show that if the former effect dominates, the equilibrium contributions in a setting of repeated bargaining exceed those under full commitment. |
| Keywords: | Environmental Policy, Exhaustible Resources, Political Economy, Lobbying, Nash Bargaining, Dynamic Programming |
| JEL: | D72 Q31 Q38 Q58 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:ciepap:80&r=ene |
| By: | Artur Kochnakyan; Ani Balabanyan; Pedro Antmann; Caterina Ruggeri Laderchi; Anne Olivier; Lauren Pierce; Denzel Hankinson |
| Keywords: | International Economics and Trade - International Trade and Trade Rules Energy - Energy Production and Transportation Economic Theory and Research Finance and Financial Sector Development - Debt Markets Infrastructure Economics and Finance - Infrastructure Economics Macroeconomics and Economic Growth |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16703&r=ene |
| By: | World Bank |
| Keywords: | Finance and Financial Sector Development - Access to Finance Banks and Banking Reform Economic Theory and Research Private Sector Development - Emerging Markets Finance and Financial Sector Development - Debt Markets Macroeconomics and Economic Growth |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16721&r=ene |