nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒01‒26
43 papers chosen by
Roger Fouquet
London School of Economics

  1. The Perverse Impact of Calling for Energy Conservation By J. Scott Holladay; Michael Price; Marianne Wanamaker
  2. The environmental Kuznets curve, economic growth, renewable and non-renewable energy, and trade in Tunisia By Ben Jebli, Mehdi; Ben Youssef, Slim
  3. Efficiency of Wind Power Production and its Determinants By Simone Pieralli; Matthias Ritter; Martin Odening;
  4. Linking Europe - The Role of the Swiss Electricity Transmission Grid until 2050 By Ingmar Schlecht; Hannes Weigt
  5. Toward an optimal U.S. solar photovoltaic subsidy By Liu, Shen; Colson, Gregory; Wetzstein, Michael
  6. Impact of population, age structure, and urbanization on carbon emissions/energy consumption: Evidence from macro-level, cross-country analyses By Liddle, Brantley
  7. The Effects of Wind Generation Capacity on Electricity Prices and Generation Costs: a Monte Carlo Analysis By Lynch, Muireann; Curtis, John
  8. An optimal trading problem in intraday electricity markets By Ren\'e A\"id; Pierre Gruet; Huy\^en Pham
  9. Unilateral Climate Policy, the Green Paradox, Coalition Size and Stability By Gilbert Kollenbach
  10. Information, Random Regret Minimisation, Random Utility Maximisation: Willingness to pay for Renewable Energy By Longo, Alberto; Boeri, Marco
  11. The Environment, Trade Openness, and Domestic and Foreign Investments By Elmarzougui, Eskandar; Larue, Bruno; Tamini, Lota, D.
  12. Using Field Experiments to Address Environmental Externalities and Resource Scarcity: Major Lessons Learned and New Directions for Future Research By Michael Price
  13. The Brunt of Oil Demand and US-Dollar Exchange Rate: Evidence From Net-Oil Importing Countries in Sub-Saharan Africa. By Sene, Seydina; Mishra, Dr. Ashok
  14. From rise in B to fall in C? Global environmental impacts of biofuels By Piroli, Giuseppe; Rajcaniova, Miroslava; Ciaian, Pavel; Kancs, d'Artis
  15. What can we learn about shale gas development from land values? Opportunities, challenges, and evidence from Texas and Pennsylvania By Weber, Jeremy; Hitaj, Claudia
  16. Speculative behaviour and oil price predictability By Ekaterini Panopoulou; Theologos Pantelidis
  17. Geographical Spread of Global Emissions: Within-country Inequalities Are Increasing By Caspar Sauter; Jean-Marie Grether; Nicole A. Mathys
  18. Oil Resource Governance in Somalia: Are they Susceptible to the Resource Curse? By Ahali, Aaron Yao Efui; Ackah, Ishmael
  19. The effectiveness of vehicle emission control policies: Evidence from Japanese experience By Kazuyuki Iwata; Toshi H. Arimura; Tetsuya Shimane
  20. Endogenous growth with a limited fossil fuel extraction capacity By Gilbert Kollenbach
  21. An Economic Model of Brazil’s Ethanol-Sugar Markets and Impacts of Fuel Policies By Drabik, Dusan; de Gorter, Harry; Just, David R.; Timilsina, Govinda R.
  22. Will consumers use biodiesel? Assessing the potential for reducing CO2 emissions from private transport in Spain By Gracia, Azucena; Barreiro-Hurlé, Jesús; Pérez y Pérez, Luis
  23. The Input of Human Labour, Tractive Force and Energy Consumption in Model Technologies of Energy Crop Production By Pepliński, Benedykt; Baum, Rafal; Majchrzycki, Dariusz; Wajszczuk, Karol; Sajna, Piotr
  24. Exploring the Potential to Penetrate the Energy Markets for Tennessee-Produced Switchgrass By Chugh, Shikha; Yu, T. Edward; Jackson, Samuel; Larson, James; English, Burton; Cho, Seong-Hoon
  25. Managing integration in bio-energy chains by promoting a collective action By Cembalo, Luigi; Pascucci, Stefano; Tagliafierro, Carolina; Caracciolo, Francesco
  26. Can Oil Prices Forecast Exchange Rates? By Domenico Ferraro; Ken Rogoff; Barbara Rossi
  27. Énergie : perspectives d’avenir au niveau mondial By Méritet, Sophie
  28. Household Electri cation and Indoor Air Pollution By Barron, Manuel; Torero, Maximo
  29. Are Latin American and Caribbean Biofuel Policies Consistent with their Comparative Advantages? By Perez-Pena, Rafael; Acharya, Ram N.
  30. Urban Green Growth in Dynamic Asia: A Conceptual Framework By Tadashi Matsumoto; Loïc Daudey
  31. The impact of improved clean cookstoves on households in Southern Haiti By Sagbo, Nicaise S. M.; Kusunose, Yoko
  32. Economic Diversification in the GCC: Past, Present, and Future By Tim Callen; Reda Cherif; Fuad Hasanov; Amgad Hegazy; Padamja Khandelwal
  33. Horizontal subcontracting and intermittent power generation By BOUCKAERT, Jan; VAN MOER, Geert
  34. Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia By Bernard, Tanguy; Torero, Maximo
  35. Environmental and economic trade-offs of switchgrass supply chain for biofuel in Tennessee By Zhong, Jia; Yu, T. Edward; English, Burton; Larson, James
  36. Preferences towards CO2 capture and storage in the European Union: a structural equation modelling analysis By Toma, Luiza; Barnes, Andrew Peter; Revoredo-Giha, Cesar; Tsitsoni, Viktoria; Glenk, Klaus
  37. Nepal: The National Monitoring and Evaluation System and the SREP Investment Plan By Asian Development Bank (ADB); ; ;
  38. Die Relevanz von Klimawandelfolgen für Kritische Infrastrukturen am Beispiel des deutschen Energiesektors By Markus Groth; Jörg Cortekar
  39. Differences in the effects of fuel price and income on private car use in Sweden 1999-2008 By Pyddoke, Roger; Swärdh, Jan-Erik
  40. Hierarchical Global Pollution Control in Asymmetric Information Environments: A Continuous-type, Three-tier Agency Framework By Yutaka Suzuki
  41. Time Scale Externalities and the Management of Renewable Resources By Giannis Vardas; Anastasios Xepapadeas
  42. Allowing for uncertain and asymmetric policy shocks: a CGE analysis of the impacts of on-shore wind farm developments in north east Scotland By Phimister, Euan; Roberts, Deborah
  43. Censored spatial wind power prediction with random effects By Croonenbroeck, Carsten; Ambach, Daniel

  1. By: J. Scott Holladay (Department of Economics, University of Tennessee); Michael Price (Department of Economics, Georgia State University); Marianne Wanamaker (Department of Economics, University of Tennessee)
    Abstract: In periods of high energy demand, utilities frequently issue "emergency" appeals for conservation over peak hours to reduce brownout risk. We estimate the impact of such appeals using high-frequency data on actual and forecasted electricity generation, pollutant emission measures, and real-time prices. Our results suggest a perverse impact; while there is no significant reduction in grid stress over superpeak hours, such calls lead to increased off-peak generation, CO2 emissions, and price volatility. We postulate that consumer attempts at load shifting lead to this result.
    Keywords: Energy Demand, Air Pollution, Conservation, Media
    JEL: Q4 Q5 D8
    Date: 2014–10
  2. By: Ben Jebli, Mehdi; Ben Youssef, Slim
    Abstract: We use the autoregressive distributed lag (ARDL) bounds testing approach for cointegration with structural breaks and the vector error correction model (VECM) Granger causality approach in order to investigate relationships between per capita CO2 emissions, GDP, renewable and non-renewable energy consumption and international trade (exports or imports) for Tunisia during the period 1980-2009. We show the existence of a short-run unidirectional causality running from trade, GDP, CO2 emission and non-renewable energy to renewable energy. Our long-run estimates show that non-renewable energy and trade have a positive impact on CO2 emissions, whereas renewable energy impacts weakly and negatively CO2 emission when using the model with exports and this impact is statistically insignificant when using the model with imports. The inverted U-shaped environmental Kuznets curve (EKC) hypothesis is not supported graphically and analytically in the long-run. This means that Tunisia has not yet reached the required level of per capita GDP to get an inverted U-shaped EKC. Our main policy recommendations for Tunisia are the following: (i) to radically reform the subsidies system granted by the Tunisian government for fossil fuels consumption; (ii) to encourage the use of renewable energy and energy efficiency by reinforcing actual projects and regulatory framework; (iii) to locate ports near exporting industrial zones (or vice versa) to reduce emission of pollution caused by the transport of merchandise; (iv) to elaborate a strategy for maximizing its benefit from renewable energy technology transfer occurring when importing capital goods; (v) to encourage the creation of renewable energy projects for export to the EU with a proportion of production for national consumption.
    Keywords: Environmental Kuznets curve; Renewable and non-renewable energy; International trade; Autoregressive distributed lag; Tunisia.
    JEL: C22 F14 Q42 Q43 Q54
    Date: 2015–01–13
  3. By: Simone Pieralli; Matthias Ritter; Martin Odening;
    Abstract: This article examines the efficiency of wind energy production. We quantify production losses in four wind parks across Germany for 19 wind turbines with non-convex efficiency analysis. In a second stage regression, we adapt the linear regression results of Kneip, Simar, Wilson (2014) to explain electricity losses by means of a bias-corrected truncated regression. Our results show that electricity losses amount to 27% of the maximal producible electricity. These losses can be mainly traced back to changing wind conditions while only 6 % are caused by turbine errors.
    Keywords: wind energy, efficiency, free disposal hull, bias correction
    JEL: D20 D21 Q42
    Date: 2015–01
  4. By: Ingmar Schlecht; Hannes Weigt (University of Basel)
    Abstract: <span lang="EN-US">The aim of this paper is to evaluate the role of the Swiss electricity transmission system and the planned network extensions in the context of Central European electricity market developments and thereby the Swiss and European energy transitions. In addition, we conduct a sensitivity analysis of delayed grid investments for Swiss and European network projects, respectively. By deriving a quantification of potential costs and system stability impacts due to delayed network investments, we can identify whether the currently observed lag in many energy investments poses a threat to achieving the envisioned energy transitions.</span>
    Keywords: Switzerland, energy transition, network extension, investment delay
    JEL: L94
    Date: 2014
  5. By: Liu, Shen; Colson, Gregory; Wetzstein, Michael
    Abstract: An analytical framework for assessing the optimal solar energy subsidy is developed and estimated, which takes into account the environment, health, employment, and electricity accessibility benefits. Results indicate that an optimal subsidy is positively affected by the marginal external benefit. However, this effect is mitigated by the elasticity of demand for conventional electricity and elasticity of supply for solar electricity with respect to the solar subsidy. One result indicates when the elasticity of demand is negative, the more responsive fossil energy is to a solar energy subsidy, the higher is the marginal external benefit. Calibrating the model using published elasticities yields estimates of the optimal solar energy subsidy equal to approximately $0.02 per kilowatt hour when employment effects are omitted. The estimated optimal subsidy is in line with many current state feed-in-tariff rates, giving support to these initiatives aimed at fostering solar energy production.
    Keywords: Elasticity, Marginal external benefit, Optimal subsidy, Solar photovoltaic (PV), Environmental Economics and Policy, Resource /Energy Economics and Policy, Q2, Q4, Q5,
    Date: 2015
  6. By: Liddle, Brantley
    Abstract: This review summarizes the evidence from cross-country, macro-level studies on the way demographic factors and processes—specifically, population, age structure, household size, urbanization, and population density—influence carbon emissions and energy consumption. Analyses employing time-variant data have produced great variance in population elasticity estimations—sometimes significantly greater than one, sometimes significantly less than one; whereas, cross-sectional analyses typically have estimated population elasticities near one. Studies that have considered age structure typically have used standard World Bank definitions, and mostly have found those variables to be insignificant. However, when researchers have considered levels of disaggregation that approximate life-cycle behavior like family size, they have uncovered relationships that are complex and nonlinear. Average household size has a negative relationship with road energy use and aggregate carbon emissions. Urbanization appears positively associated with energy consumption and carbon emissions. Higher population density is associated with lower levels of energy consumption and emissions.
    Keywords: STIRPAT; IPAT; urbanization and energy/carbon emissions; age structure and environment; cross-country analyses
    JEL: Q4
    Date: 2014
  7. By: Lynch, Muireann; Curtis, John
    Date: 2014–11
  8. By: Ren\'e A\"id; Pierre Gruet; Huy\^en Pham
    Abstract: We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the clients minus the production from renewable energy. For a simple linear price impact model and a quadratic criterion, we explicitly obtain approximate optimal strategies in the intraday market and thermal power generation, and exhibit some remarkable properties of the trading rate. Furthermore, we study the case when there are jumps on the demand forecast and on the intraday price, typically due to error in the prediction of wind power generation. Finally, we solve the problem when taking into account delay constraints in thermal power production.
    Date: 2015–01
  9. By: Gilbert Kollenbach
    Keywords: Climate Change, Climate Target, Unilateral Climate Policy
    JEL: Q41 Q42 Q54 Q58
    Date: 2014
  10. By: Longo, Alberto; Boeri, Marco
    Abstract: We investigate how different levels of information affect respondents’ preferences as well as choice behaviour in choice experiments by analysing respondents’ choices using two choice paradigms: the Random Utility Maximisation (RUM) and the Random Regret Minimization (RRM). The RRM offers a tractable, regret-based model complementary to the dominant RUM. Analysing choice related to hypothetical programmes for the promotion of renewable energy, we find that varying the level of information does not affect preferences and scale, whilst it does affect the choice paradigm. Additional information increases the probability that a respondent’s choices are better explained by the RUM than the RRM.
    Keywords: Random Regret Minimization, Random Utility Maximisation, renewable energy, energy security, greenhouse gases emissions, Consumer/Household Economics, Resource /Energy Economics and Policy,
    Date: 2014–08
  11. By: Elmarzougui, Eskandar; Larue, Bruno; Tamini, Lota, D.
    Abstract: This paper aims to study the impact of growth and trade openness on the environment at the regional level. We find support for the environmental Kuznet Curve hypothesis for CO2 emissions in Africa, Asia and OECD countries. We find that the pollution haven hypothesis is supported for CO2 in Africa, the Middle East and North Africa, the former United Socialist Soviet Republic and Eastern Europe, and South America, but not for Asia, for which the pollution halo hypothesis could not be rejected. The pollution haven hypothesis is also supported for SO2 emissions in South America while the pollution halo holds for SO2 emissions in Africa. We show that local investment is contributing significantly to both CO2 and SO2 emission increases in most regions while trade openness matters only in OECD and South America.
    Keywords: CO2 and SO2 emissions, domestic investment, foreign direct investment, trade openness, ARDL
    JEL: C3 F18 F21 Q5
    Date: 2013–10
  12. By: Michael Price
    Abstract: This article provides an overview of the use of field experiments in energy and resource economics. I concentrate on two areas of study; field experiments that (i) speak to the use of dynamic pricing plans to manage the use of electricity and water and (ii) explore the adoption of energy saving technologies. Viewed in its totality, this work suggests that both neo-classical factors such as prices or search costs and behavioral constructs such as salience or social norms influence the use of energy and water. For academics, the studies reviewed provide a deeper understanding of individual behavior and the factors that drive the private provision of public goods. For policy makers, the studies reviewed provide a blueprint outlining ways to combine insights from neo-classical and behavioral economics to manage energy/water demand and mitigate externalities generated through their use.
    JEL: D03 D04 D62 D83 H41 Q41 Q48
    Date: 2015–01
  13. By: Sene, Seydina; Mishra, Dr. Ashok
    Keywords: OIL Consumption, US dollars EXCHANGE RATE SUB SAHARAN AFRICA, NET-OIL IMPORTING COUNTRIES, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Demand and Price Analysis, International Development, International Relations/Trade, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty,
    Date: 2015–01–20
  14. By: Piroli, Giuseppe; Rajcaniova, Miroslava; Ciaian, Pavel; Kancs, d'Artis
    Abstract: This is the first paper that econometrically estimates the impact of rising Bioenergy production on global CO2 emissions. We apply a structural vector autoregression (SVAR) approach to time series from 1961 to 2009 with annual observation for the world biofuel production and global CO2 emissions. We find that in the medium- to long-run biofuels significantly reduce global CO2 emissions: the CO2 emission elasticities with respect to biofuels range between -0.57 and -0.80. In the short-run, however, biofuels may increase CO2 emissions temporarily (elasticity 0.57). Our findings complement those of life-cycle assessment and simulation models. However, by employing a more holistic approach and obtaining more robust estimates of environmental impact of biofuels, our results are particularly valuable for policy makers.
    Keywords: Biofuels, C02 emissions, environmental impact, SVAR, Environmental Economics and Policy, C14, C22, C51, D58, Q11, Q13, Q42,
    Date: 2014–08
  15. By: Weber, Jeremy; Hitaj, Claudia
    Abstract: We study farm real estate values in the Barnett Shale (Texas) and the northeastern part of the Marcellus Shale (Pennsylvania and New York). Shale gas development caused appreciation in both areas but the effect was much larger in the Marcellus, suggesting broader ownership of oil and gas rights by surface owners. In both regions, most appreciation occurred when land was leased for drilling, not when drilling and production boomed. We find evidence that effects vary by farm type, which may reflect a correlation between farm type and the presence of oil and gas rights.
    Keywords: Barnett Shale, land values, Marcellus Shale, natural gas, oil and gas rights
    JEL: Q15 Q32 Q51
    Date: 2015–01–01
  16. By: Ekaterini Panopoulou (Kent Business School, University of Kent); Theologos Pantelidis (Department of Economics, University of Macedonia)
    Abstract: We develop two- and three-state regime switching models and test their forecasting ability for oil prices. We use the deviations of market oil price from fundamental values as the main explanatory variable in our models, while additional potential predictors enrich our specification. Our findings suggest that the regime-switching models are, in general, more accurate than the Random Walk model in terms of both statistical and economic evaluation criteria for oil price forecasts.
    Keywords: Oil price; Regime Switching; Forecasting; Deviations from fundamentals.
    JEL: C5 Q4
    Date: 2014–12
  17. By: Caspar Sauter (Institute of economic research IRENE, Faculty of Economics and Business, University of Neuchâtel, Switzerland); Jean-Marie Grether (Institute of economic research IRENE, Faculty of Economics and Business, University of Neuchâtel, Switzerland); Nicole A. Mathys (Federal Office for Spatial Development, Bern, Switzerland and Institute of economic research IRENE, Faculty of Economics and Business, University of Neuchâtel, Switzerland)
    Abstract: The major greenhouse gases, CO2 and CH4, are uniformly mixing, but spatial inequalities in emissions do matter in terms of both efficiency and equity of environmental policy formation and implementation. As the recent evidence has mainly focused on convergence issues between countries, this paper extends the empirical analysis by taking into account within-country inequalities in emissions of three major atmospheric pollutants: CO2, SO2 and CH4 over the 1970-2008 period. Using Theil-index decompositions, we show that within-country inequalities account for the bulk of global inequality, and tend to increase over the sample period, in contrast with diminishing between-country inequalities. An original extension to include differences across sectors reveals that between-sector inequality matters more than between-country inequality, and becomes the dominant source of global inequality at the end of the sample period in the CO2 and SO2 cases. A final exercise suggests that social tensions arising from the disconnection between emissions and future damages are easing for CO2 but rather stable for CH4. These orders of magnitude should be kept in mind while discussing the efficiency and fairness of alternative paths in combating global warming.
    Keywords: Global spatial emission inequality, sub-national emission inequality, CO2, SO2, CH4
    JEL: O13 D63 Q53 Q54 Q58
    Date: 2015–01
  18. By: Ahali, Aaron Yao Efui; Ackah, Ishmael
    Abstract: In many developing countries, natural resources such as oil and gas have had negative impact on economic development. There is a myriad of literature on “the resource curse” which shows an austere relationship: countries endowed with huge deposits of oil and gas usually experience lower economic growth than countries that do not have these resources. As a modern ‘frontier region’ Somalia is one of the most promising countries blessed with oil and gas in the Eastern part of Africa. However, it is faced with political upheavals, weak state structures, physical insecurity, and property rights full of ambiguities; this makes it a challenge to exploit the country of its hydrocarbons. In addition to the present tense conditions within the region, the question that lingers, is whether or not Somalia is set to struggle with the common effect of the ‘resource curse’ and paradox of plenty disorder? Somalia was selected because it provides an ideal laboratory to ascertain if she is predisposed to the ‘resources curse’ disease. To this end, the study examines and also outlines the primary themes that guide the work using the case of Somalia as an addition to the body of empirical knowledge. The study recommends that new governance structures should be built, existing ones should be built, local content and local participation should be enhanced and the security and judicial agencies should be supported.
    Keywords: Somalia; Resource Curse; Resource Rents; Oil; Governance.
    JEL: Q48
    Date: 2014–12–20
  19. By: Kazuyuki Iwata; Toshi H. Arimura; Tetsuya Shimane
    Abstract: Governments in developed countries have implemented various regulations to manage air pollutants from automobiles, such as emission standards and subsidies for low emission vehicles. Japan is a unique example of a country that has overcome the severe air pollution of nitrogen oxides (NOx) and particulate matter (PM) through the mandatory retirement of old, high emission vehicles in metropolitan areas. To date, however, it is not clear which policy instruments have been effective in mitigating the air pollution from automobiles. The purpose of this paper is to empirically examine the effectiveness of policy instruments in attaining cleaner air in Japanese metropolitan areas. Using data from 1990 to 2005, we estimate the concentration functions of NOx and PM using a spatial econometric model. We find that most regulations and subsidies decreased the concentration levels of both pollutants. Traditional emission standards were found to be more effective than other policy instruments. Vehicle replacement subsidies were more cost-effective than those for PM-removal equipment. Furthermore, the empirical results indicate that the effect of subsidies for vehicle replacement on one municipality¡¯s air had spillover effects by improving the pollutant concentrations in the surrounding municipal areas.
  20. By: Gilbert Kollenbach
    Keywords: exhaustible resources, limited extraction capacity, endogenous growth
    JEL: Q32 Q42 O41
    Date: 2014
  21. By: Drabik, Dusan; de Gorter, Harry; Just, David R.; Timilsina, Govinda R.
    Abstract: We develop an economic model of flex plants, export demands and two domestic fuel demand curves: E25, a 25 percent blend of ethanol with gasoline consumed by conventional cars, and E100, ethanol consumed only by flex cars. This allows us to analyze the market impacts of specific policies, namely the E25 blend mandate, fixing gasoline prices below world prices, the high gasoline tax, and a higher tax exemption for ethanol used in E25. Because Brazilian and U.S. ethanol prices have become linked, a change in Brazilian ethanol policy or a shock in world sugar markets can now impact U.S. ethanol and corn prices. Because of two demand curves, with flex car owners switching between fuels depending on relative prices, and because the mandate is for E25 only, the impact of each Brazilian policy in theory has an ambiguous impact on ethanol and sugar prices. Conventional wisdom is that a higher level of the mandate, gasoline tax exemptions for ethanol and gasoline price, and a lower gasoline tax, all help the ethanol industry. But for two policies, a low gasoline tax and a high tax exemption for ethanol used in E25, our empirical results show ethanol and sugar prices decline. Overall, we find that the package of policy reforms implemented in 2010 offset the ethanol price increase due outward shifts in fuel transportation and sugar export demand curves, and reduced sugarcane supply due to bad weather, by about 27 percent. Our model illustrates the importance of Brazil’s ethanol policies on world commodity markets and provides insights on how the Brazilian government can adjust policies to better control domestic inflation while minimizing impacts on investment.
    Keywords: Brazil, ethanol, flex plants, sugarcane, mandate, tax exemption, Resource /Energy Economics and Policy,
    Date: 2014–08
  22. By: Gracia, Azucena; Barreiro-Hurlé, Jesús; Pérez y Pérez, Luis
    Abstract: This paper analyzes the intention to use (pure) biodiesel under different scenarios. A model of the intention to use biodiesel has been developed based on the Theory of Planned Behavior (TPB) and estimated using data from a survey conducted in Spain in 2010. Results show that the intention to use biodiesel depends on the price and availability of the biodiesel in the market. Even when biodiesel would be available in the market at the same price and widely spread through the current fuelling network less than 50% of all motorists would purchase biodiesel. These percentages diminish when consumers are required to pay higher prices or change behavior.
    Keywords: Intention to use, ordered probit, biofuels, consumer behaviour, theory of planned behaviour, Environmental Economics and Policy, Resource /Energy Economics and Policy,
    Date: 2014–08
  23. By: Pepliński, Benedykt; Baum, Rafal; Majchrzycki, Dariusz; Wajszczuk, Karol; Sajna, Piotr
    Abstract: This study was an analysis of the input of human labour, tractive force and energy consumption in the model technologies of production of winter wheat, winter triticale, winter rye and sugar beets grown for bioethanol as well as reed canary grass, Virginia mallow, sorgo and maize grown for biogas in farms of different area, soil quality and intensity levels of production.
    Keywords: energy crop production, human labour, tractive force, energy consumption, model technologies, Labor and Human Capital, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–08
  24. By: Chugh, Shikha; Yu, T. Edward; Jackson, Samuel; Larson, James; English, Burton; Cho, Seong-Hoon
    Abstract: Growing biomass crops for energy production on low productivity lands that are not used for food production has been suggested as an alternative to reduce dependence on fossil fuels and to mitigate greenhouse gas emissions from transportation fuel. Switchgrass is considered a potential feedstock in various states, including Tennessee, because of its good yields on poor soils. However, its low density relative to its energy value and resulting high logistics costs impedes the profitability of switchgrass-based bioenergy. The objective of this study is to determine the optimal logistics configuration for a collection/distribution hub to market Tennessee-produced switchgrass for bioenergy production. A mathematical programming model integrated with the geographic information system is used to maximize the net present value (NPV) of profit of the hub that serves switchgrass producers and bioenergy markets. A total of six logistics configurations delivering switchgrass to local or international bioenergy markets are evaluated. The results highlight the economic challenges of penetrating the energy market for the collection/distribution hub of switchgrass: only one logistics configuration for the local market is profitable. However, serving international markets becomes feasible when investment risk is lowered. This information implies that certainty of bioenergy policies is crucial to the development of biomass feedstock for bioenergy industry.
    Keywords: switchgrass, market, processing, Tennessee, Agribusiness, Marketing, Q13, Q16,
    Date: 2015
  25. By: Cembalo, Luigi; Pascucci, Stefano; Tagliafierro, Carolina; Caracciolo, Francesco
    Abstract: This paper discusses how to develop and manage integration, coordination and cooperation (collective action) in bio-energy supply chains. Farmers decision on whether or not to participate in a contract farming scheme have been investigated, particularly assessing the trade-offs between the contract attributes and their impact on the likelihood to participate. A stated preference model has been implemented where respondents were asked to choose between alternative contracts with varying attribute levels to start biomass cultivation. Results show that participation is mainly influenced by minimum price guaranteed, contract length, and re-negotiation before the end of a contract.
    Keywords: Bio-energy supply chain, Contract farming, Choice modelling, Italy, Industrial Organization,
    Date: 2014–08
  26. By: Domenico Ferraro; Ken Rogoff; Barbara Rossi
    Abstract: We show the existence of a very short-term relationship at the daily frequency between changes in the price of a country's major commodity export price and changes in its nominal exchange rate. The relationship appears to be robust and to hold when we use contemporaneous (realized) commodity price changes in our regression. How- ever, when we use lagged commodity price changes, the predictive ability is ephemeral, mostly appearing after instabilities have been appropriately taken into account.
    Keywords: forecasting, oil prices, exchange rates
    JEL: F31 F37 C22 C53
    Date: 2015–01
  27. By: Méritet, Sophie
    Keywords: Energie; Ressources énergétiques;
    JEL: Q41 Q48
    Date: 2013–03
  28. By: Barron, Manuel; Torero, Maximo
    Abstract: This paper provides the first empirical evidence that household electrification leads to direct and substantial welfare improvements via reductions in indoor air pollution. In the setting of a recent electrification program in northern El Salvador, we exploit a unique data-set on minute-by-minute fine particulate matter (PM 2.5) concentration within the framework of a clean experimental design. Two years after baseline, overnight PM 2.5 concentration was on average 67% lower among households that were randomly encouraged to connect compared to those that were not. This change is driven by reductions in kerosene use. As a result, the incidence of acute respiratory infections among children under 6 fell by 65% among connected households. Estimates of exposure measures suggest large health gains for all household members, but these gains are unequally distributed by gender. In addition, we show that when the electrification rate among the non-encouraged group caught up with that of the encouraged group, the effects in the former group were similar to those in the latter.
    Keywords: household electrification, indoor air pollution, health
    JEL: I15 I18 O13 O33 Q53 Q56
    Date: 2015–01
  29. By: Perez-Pena, Rafael; Acharya, Ram N.
    Abstract: The objective of this article is to evaluate in what extend the comparative advantages of the biofuel feedstock of Latin American and Caribbean countries explain their biofuel policies. To achieve this goal, we analyze current biofuel policies of four major economies of the region – Argentina, Brazil, Columbia, and Mexico (LAC4). In 2013, the share of these LAC4 countries in total soybean and sugarcane production of the region was more than 80 percent. The classical Ricardian trade model, which recommends that countries should focus on producing and exporting goods and services on which they have relative advantage over their trading partners, provides the empirical framework for this study. Using panel data from 1991-2011, a biodiesel policy equation and an ethanol policy equation are estimated to evaluate the significance of biofuel policy drivers obtained from previous studies. Comparative advantages constitutes one of these drivers. Two sets of equations are estimated considering the comparative advantage approach from Vollrath (1991) and Doku and Di Falco (2012). Even if the comparative advantage is significant with the ethanol policy variable, other factors such as technology and energy imports contribute more to ethanol’s policy promotion. Similar results are observed for the biodiesel equation specified with this measure for comparative advantages. Additionally, when the measure proposed by Doku and Di Falco (2012)is applied for comparative advantage, for the ethanol policy equation comparative advantage gains relevance becoming as significant as the price of sugarcane, agricultural population and energy imports. By contrast in the biodiesel policy equation energy imports resulted to be more significant than the rest of the variables. In this case, even if comparative advantages were a driver other variables explained more the biodiesel policies. Using this alternative measure, the comparative advantage factor presents a larger effect in both, the ethanol and biodiesel equation, than using the RCA approach.
    Keywords: Trade of soybean and sugar raw centrifugal, biofuel policy, comparative advantage, Latin American and the Caribbean countries., Community/Rural/Urban Development, International Relations/Trade, Resource /Energy Economics and Policy, F17, F63, O13, Q42.,
    Date: 2015
  30. By: Tadashi Matsumoto; Loïc Daudey
    Abstract: The development of Asian cities is characterised by rapid and continuous urbanisation on an unprecedented scale, with rapid economic growth led in most places by the manufacturing industry, and rapidly increasing motorisation. The result has been escalating greenhouse gas emissions, sprawling urban development and local environmental impacts, as well as disparities in income, education levels and job opportunities in the urban population. These trends differ sharply from those in most of the OECD area and call for a green growth model that differs from those identified in previous OECD studies and that addresses the specific circumstances of Asian cities.<P> This paper proposes an analytical framework for assessing policies for green growth in rapidly growing cities in the emerging world. It builds on Cities and Green Growth: A Conceptual Framework (Hammer et al., 2011) and is adapted to the urban policy context of dynamic Asia. Its three main elements are: i) identification of the key policy strategies for urban green growth in fast-growing Asian cities, highlighting similarities to and differences from OECD cities; ii) opportunities for green growth; and iii) enabling strategies for implementing urban green growth.
    Keywords: transport, Asia, water, government policy, climate change, cities, land use, green growth, solid waste management, energy
    JEL: O18 O19 Q53 Q54 R11 R58
    Date: 2015–01–15
  31. By: Sagbo, Nicaise S. M.; Kusunose, Yoko
    Abstract: The present paper evaluates the effects of the use of improved cookstoves (ICSs) on household fuel expenditure in Southern Haiti. It takes advantage of the fact that approximately 80 households received ICSs, a novel technology, in the aftermath of the 2010 Haitian earthquake. Survey work in 2014 permits a comparison of fuel expenditures between ICS-using households and non-using households. The effect of ICS use on fuel expenditure is estimated using a simple t-test and propensity score matching methods. Ultimately, understanding the effect of ICS use on fuel expenditures will help promoters of ICSs to improve their marketing plans and increase adoption.
    Keywords: technology adoption, improved cookstoves, propensity score matching, Consumer/Household Economics, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014
  32. By: Tim Callen; Reda Cherif; Fuad Hasanov; Amgad Hegazy; Padamja Khandelwal
    Abstract: Abstract: The economies of the six Gulf Cooperation Council (GCC) countries are heavily reliant on oil. Greater economic diversification would reduce their exposure to volatility and uncertainty in the global oil market, help create jobs in the private sector, increase productivity and sustainable growth, and help create the non-oil economy that will be needed in the future when oil revenues start to dwindle. The GCC countries have followed many of the standard policies that are usually thought to promote more diversified economies, including reforms to improve the business climate, the development of domestic infrastructure, financial deepening, and improvements in education. Nevertheless, success to date has been limited. This paper argues that increased diversification will require realigning incentives for firms and workers in the economies—fixing these incentives is the “missing link†in the GCC countries’ diversification strategies. At present, producing non-tradables is less risky and more profitable for firms as they can benefit from the easy availability of low-wage foreign labor and the rapid growth in government spending, while the continued availability of high-paying and secure public sector jobs discourages nationals from pursuing entrepreneurship and private sector employment. Measures to begin to address these incentive issues could include limiting and reorienting government spending, strengthening private sector competition, providing guarantees and financial support for those firms engaged in export activity, and implementing labor market reforms to make nationals more competitive for private sector employment.
    Keywords: Export diversification;Cooperation Council for the Arab States of the Gulf;Oil revenues;Nonoil sector;Production incentives;Private sector;Wages and employment;Economic growth;Cross country analysis;Diversification, growth, exports, GCC
    Date: 2014–12–23
  33. By: BOUCKAERT, Jan; VAN MOER, Geert
    Abstract: Intermittent power sources enable firms to reduce costs by horizontally subcontracting generation. Dispatchable units serve as a strategic device, even when never used, since their availability credibly limits the price paid for subcontracting. Security of supply measures motivated by too low plant profitability therefore underestimate firms’ unilateral incentive to install dispatchable units.
    Keywords: Subcontracting, Intermittency, Security of supply, Dispatchable units
    JEL: D43 L13 L14
    Date: 2014–12
  34. By: Bernard, Tanguy; Torero, Maximo
    Abstract: This paper assesses the importance of social interactions in determining an individual’s choice to connect to an electrical grid, using an original dataset on a new rural electrification program in Ethiopia. Combining GPS information with random allocation of discount vouchers for connection to the grid, we show that neighbors’ connection behaviors have large effects on a household’s connection decision. This effect is also shown to decrease by distance: no peer effect is found for neighbors living farther than 100 meters away. Evidence also suggests that expectation interactions (through social learning of the benefits of electricity) or constraint interactions (through direct externalities of one’s connection on others’ wellbeing) are unlikely to fully account for these effects, and that preference interactions (through a ‘keeping up with neighbors’ type of mechanism) appear to be a plausible explanation. We discuss implications for further research and the design of development interventions.
    Keywords: Ethiopia, Rural Electrification, Social Interactions
    JEL: C9 C93 O12 O33
    Date: 2014–09
  35. By: Zhong, Jia; Yu, T. Edward; English, Burton; Larson, James
    Abstract: The low efficiency of feedstock storage and transportation hinders commercialization of a switchgrass-based biofuel industry although the feedstock has various environmental benefits. This study develops a sustainable switchgrass supply chain that balances its economic and environmental performance, including soil erosion, and GHG emissions using a multi-objective optimization model based on high-resolution spatial data in Tennessee. Results suggest that the best preferred location for biorefinery, plantation area, and the type of land converted to switchgrass are crucial to trade-off relation between industrial cost and environmental performance of the feedstock supply chain.
    Keywords: Switchgrass, Biofuel, Supply Chain, Greenhouse Gas, Soil Erosion, Tradeoff, Environmental Economics and Policy, Q16, Q24,
    Date: 2015
  36. By: Toma, Luiza; Barnes, Andrew Peter; Revoredo-Giha, Cesar; Tsitsoni, Viktoria; Glenk, Klaus
    Abstract: The paper analyses the impact that European Union citizens’ access to information on climate change has on their awareness of carbon capture and storage (CCS), perceived risks and benefits of using CCS and stated choice of preferred CCS options. We use Eurobarometer data about awareness/acceptance of CCS and run structural equation models for twelve EU countries with an average sample size of 1100 observations per country. Results between the different countries are comparable and, alongside other determinants, access to information sources significantly impacts CCS awareness, perceived risks and benefits of CCS and preferences towards options of CCS.
    Keywords: CO2 capture and storage, EU citizens’ CCS knowledge and attitudes, structural equation models., Environmental Economics and Policy,
    Date: 2014–08
  37. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Effective monitoring and evaluation (M&E) is important for evidence-based planning and decision making. It promotes transparency, accountability, and learning. This publication presents a brief overview of the Nepal M&E system, and highlights the strengths and challenges in integrating Scaling Up Renewable Energy Program in Low Income Countries (SREP) results framework and investment plan with the national M&E system. Discussions are based on the results of the SREP M&E workshop held in Kathmandu, Nepal, on 12 October 2012.
    Keywords: Asian Development Bank; ADB; Climate Investment Fund; Climate Finance; Climate Change Financing in Asia; International Climate Finance; CIF; CTF; PPCR; FIP; SREP; Monitoring and Evaluation; M&E; NEPAL; NEPAL Investment Plan
    Date: 2014–05
  38. By: Markus Groth (Leuphana University of Lueneburg, Germany); Jörg Cortekar (Climate Service Center 2.0, Hamburg, Germany)
    Abstract: Von den möglichen Auswirkungen des Klimawandels wird eine Vielzahl gesellschaftlicher Bereiche betroffen sein, wobei dem Energiesektor dabei gesamtgesellschaftlich eine große Bedeutung zukommt. Zum einen ist die Energieinfrastruktur eine sogenannte Kritische Infrastruktur, denn ihr Ausfall oder ihre Beeinträchtigung kann zu nachhaltig wirkenden Versorgungsengpässen, erheblichen Störungen der öffentlichen Sicherheit oder anderen dramatischen Folgen führen. Zum anderen befindet sich der deutsche Energiesektor durch die Energiewende in einem umfassenden Transformationsprozess. Vor diesem Hintergrund werden im Rahmen der vorliegenden Untersuchung die bisherigen Aktivitäten und Publikationen zu möglichen Klimawandelfolgen für den deutschen Energiesektor ausgewertet. Hierbei werden sowohl die physischen Auswirkungen entlang der Wertschöpfungskette für die unterschiedlichen Energieträger diskutiert als auch die zentralen Studien zu den ökonomischen Konsequenzen dieser Betroffenheiten ausgewertet. Dabei zeigt sich, dass alle hier betrachteten Bereiche der Wertschöpfungskette zumeist negativ betroffen sein werden. Die wesentlichen Einflussfaktoren werden dabei das Wasserangebot, Extremwetterereignisse und steigende Durchschnittstemperaturen sein. Es wird auch deutlich, dass die zu erwartenden Auswirkungen des Klimawandels schon jetzt bei den anstehenden Infrastrukturmaßnahmen im Zuge der Energiewende Berücksichtigung finden sollten, so dass die Transformation der Energiesysteme auch zum Beseitigen entsprechender Schwachstellen genutzt werden kann.
    Keywords: Anpassung, Energiepolitik, Energiewende, Energiesektor, Klimawandelfolgen, Kritische Infrastrukturen, Ökonomische Bewertungen
    JEL: L94 Q40 Q42 Q48 Q50 Q51 Q54 Q58
    Date: 2015–01
  39. By: Pyddoke, Roger (VTI); Swärdh, Jan-Erik (VTI)
    Abstract: The objective of this paper is to analyse how the use of privately owned cars in Sweden varies across a number of background parameters including fuel price, disposable income, car purchase cost index, children over 18, employment and the car owners’ distance to work. These factors are analysed separately for men and women, individuals living in urban, rural and sparsely populated areas as well as disposable income quartiles. In particular the adaptation of car use of low income car owners in rural and sparsely populated areas to fuel cost and disposable income variations is analysed. Register data of the whole population in Sweden taken from the Swedish tax authorities for 1999-2008 as well as kilometre readings from the National Vehicle Inspection is used. This allows tracking individual changes in car use over ten years as well as to contrast car use in rural and sparsely populated areas to car use in urban areas. Car use is modelled with a dynamic panel data specification, permitting proper methods to deal with endogeneity problems. Small geographical differences in the sensitivity to variations in disposable income are found. For fuel cost on the other hand, there is a tendency towards higher price sensitivity in rural areas especially in the two lowest income quartiles. In sparsely populated areas, there is no higher sensitivity of fuel price compared to urban areas. The income elasticity of car use is fairly small and decreases with increasing disposable income. This latter finding is compatible with the hypothesis of car driving saturation in the rich countries around the world. The car travel elasticity with respect to fuel price is estimated to be between -0.2 and -0.4 in the short run. Here the pattern is as expected with decreasing fuel-price elasticity with increasing income.
    Keywords: Car use; Fuel-price elasticity; Register data; Dynamic panel data
    JEL: D12 R41
    Date: 2015–01–12
  40. By: Yutaka Suzuki
    Abstract: We construct a continuous-type, three-tier agency model with hidden information and collusion ¨¤ la Tirole (1986, 1992), thereby providing a framework that can address the problem of the global pollution control. By extensively utilizing the Monotone Comparative Statics method, the First Order (Mirrlees) approach and a graphical explanation, we characterize the nature of the equilibrium contract that the Supra-National Regulator (SNR) can implement under the possibility of collusion by the government and the firm. We compare the two-tier vs. three-tier regulation structures from the SNR¡¯s viewpoint, and then obtain a comparative statics result on the accuracy of monitoring and the possibility of collusion. We further examine whether the SNR has an incentive to adopt the dual supervision structure, with reference to ¡°Regulatory Capture¡±.
    Date: 2013–12
  41. By: Giannis Vardas; Anastasios Xepapadeas
    Abstract: The evolution of renewable resources is characterized in many cases by different time scales where some state variables such as biomass, may evolve relatively faster than other state variables such as carrying capacity. Ignoring this time scale separation means that a slowly changing variable is treated as constant over time. Management rules designed without accounting for time scale separation will result in inefficiencies in resource management. We call this inefficiency time scale externality and we analyze renewable resource harvesting when carrying capacity evolves slowly, either in response to exogenous forcing or in response to emissions generated by the industrial sector of the economy. We study cooperative and non-cooperative solutions under time scale separation. Using singular perturbation reduction methods (Fenichel 1979), we examine the role of different time scales in environmental management and the potential errors in optimal regulation when time scale separation is ignored.
    Keywords: optimal resource harvesting, fast slow dynamics, singular perturbation, regulation, open loop, closed loop.
    JEL: D81 Q20
    Date: 2015–01–11
  42. By: Phimister, Euan; Roberts, Deborah
    Abstract: This paper explores the extent to which a new on-shore winds sector, gives rise to rural economic benefits taking into account that, a priori, the eventual size of the sector (the shock to the model) is uncertain and that the underlying probability distribution of the shock may not be symmetric. A regional CGE model is developed and results from three analyses are compared: one assuming certainty in the size of the sector, one a symmetrically distributed shock, the other an asymmetric distribution of the shock. The findings suggest that the wider rural economic impacts are relatively limited, even when the additional income from the sector is re-invested locally. However the size of impacts is sensitive to the assumed distribution of the shock. In particular, treating the size of the sector as known with certainty appears to over-estimate impacts relative to an uncertain but symmetric size of shock, but underestimate impacts relative to the asymmetric case. The implications for testing the robustness of future CGE model applications are considered.
    Keywords: Systematic Sensitivity Analysis, CGE model, onshore renewable energy, asymmetric policy shocks, Risk and Uncertainty,
  43. By: Croonenbroeck, Carsten; Ambach, Daniel
    Abstract: We investigate the importance of taking the spatial interaction of turbines inside a wind park into account. This article provides two tests that check for wake effects and thus, take spatial interdependence into account. Those effects are suspected to have a negative influence on wind power production. Thereafter, we introduce a new modeling approach that is based on the Generalized Wind Power Prediction Tool (GWPPT) and therefore respects both-sided censoring of the data. Furthermore, the new model takes a Spatial Lag Model (SLM) specification into account and allows for random effects in the panel data. Finally, we provide a short empirical study that compares the forecasting accuracy of our model to the established models WPPT, GWPPT, and the naïve persistence predictor. We show that our new model provides significantly better forecasts than the established models.
    Keywords: Spatial Lag Model,Censored,Regression,Wind Power,Forecasting,Random Effects
    JEL: C31 C34 E27 Q47
    Date: 2014

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