nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒05‒16
thirty-one papers chosen by
Roger Fouquet
London School of Economics

  1. The distributional effects of energy taxes By OECD
  2. Energy poverty in the UK: Is there a difference between rural and urban areas? By Roberts, Deborah; Vera-Toscano, Esperanza; Phimister, Euan
  3. Gas and Electricity Market Design for a Flexible Operation of Gas-fired Power Plants By Neuhoff, Karsten; Ruester, Sophia; Schwenen, Sebastian
  4. Illiquidity in the Japanese Day-Ahead Electricity Market By Shin S. Ikeda
  5. TSO-TSO-DSO Cooperation: How to align System Operation in Future Power Markets? By Neuhoff, Karsten; Ruester, Sophia; Schwenen, Sebastian
  6. A hybrid model for GEFCom2014 probabilistic electricity price forecasting By Katarzyna Maciejowska; Jakub Nowotarski
  7. Design Options for a Strategic Reserve for the German Power Market and International Coordination By Neuhoff, Karsten; Schwenen, Sebastian
  8. Setting the Standard: Commercial Electricity Consumption Responses to Energy Codes By Maya M. Papineau
  9. Beyond Gate Closure By Neuhoff, Karsten; Schwenen, Sebastian
  10. Setting the Standard: Commercial Electricity Consumption Responses to Energy Codes By Maya M. Papineau
  11. The Role of Contracting in European Electricity Markets By Neuhoff, Karsten
  12. Effective use of resources in tourist facilities - focus on energy efficiency By Marinela Krstinić Nižić; Marcel Bračić
  13. Analysis of the Potential of New Renewable Energy and Energy Saving Measures on the Buildings for Green City By Jimin Kim; Taehoon Hong; Kwangbok Jeong; Choongwan Koo
  14. Energy and Material Efficiency Improvements, Compliance Strategies, and Investments in Resource Efficiency: A Cross-Country Study By Christian Dienes
  15. Renewable Energy's Current Position in Turkey By Irem DIDINMEZ
  16. Cooking Fuel Choice in Urban Zambia: Implications on Forest Cover By Tembo, Solomon T.; Mulenga, Brian P.; Sitko, Nicholas
  17. Solar energy entrepreneurship and regional investment attractiveness By Nikolaos Apostolopoulos
  18. Energy Markets and CO2 Emissions: Analysis by Stochastic Copula Autoregressive Model By Vêlayoudom Marimoutou; Manel Soury
  19. Energy Sector Transformation: Issues and Options for the UNFCCC Negotiations By Christina Hood; Gregory Briner
  20. Permanent Magnet Synchronous Generators in Wind turbines and its impact on the Wind Energy By Rashmi Ramesh; Ramanujan Vetrivel; Purushotham M
  21. Consumers and energy demand in food supply chains: Synthesising insights from the social sciences By Hoolohan, Claire; McLachlan, Carly
  22. The Impact of Heterogeneous NOx Regulations on Distributed Electricity Generation in U.S. Manufacturing By Jonathan M. Lee
  23. Modeling pollution and economic growth: the effect of a lethal threshold By Asuka Oura; Yasukatsu Moridera; Koichi Futagami
  24. Calculations of gaseous and particulate emissions from German agriculture 1990-2013: Report on methods and data (RMD) Submission 2015 By Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Freibauer, Annette; Wulf, Sebastian; Eurich-Menden, Brigitte; Döhler, Helmut; Schreiner, Carsten; Bauer, Beate; Osterburg, Bernhard
  25. Economic impacts of climate change By Richard S. J. Tol
  26. Built to Last: Designing a Flexible and Durable 2015 Climate Change Agreement By Gregory Briner; Takayoshi Kato; Takashi Hattori
  27. Prospects for Integrated Carbon Taxes in Canada: Lessons from Federal-Provincial Tax Coordination. By Tracy Snoddon
  28. The Local Economic Impact of Wind Power Deployment By May, Nils G.; Nilsen, Øivind Anti
  29. Policy options for GHG mitigation under autarky: a conceptual and empirical analysis for Norway By Blandford, David; Gaasland, Ivar; Hassapoyannes, Katharina; Vardal, Erling
  30. Are We Turning a Brighter Shade of Green? The relationship between household characteristics and GHG emissions from consumption By Allan, Corey; Kerr, Suzi; Will, Campbell
  31. CO2 abatement policies in the power sector under an oligopolistic gas market By Hecking, Harald

  1. By: OECD
    Abstract: New evidence for 21 OECD countries shows that the distributional effects of energy taxes differ by energy carrier. On an expenditure basis, taxes on transport fuels are not regressive on average, as households in lower expenditure deciles spend a lower proportion of their expenditure on taxes on transport fuels. While the unweighted 21-country average of the proportion of income spent on transport fuel taxes is highest for households in the lowest and in the middle deciles, there is heterogeneity across countries. Some countries show progressive effects of taxes on transport fuels both on an expenditure and an income basis, while others show more proportional effects or tend to place the highest burden on middle expenditure deciles. Taxes on heating fuels are slightly regressive, i.e., the percentage of expenditure spent on them decreases with expenditure. Taxes on electricity are more regressive than taxes on heating fuels.<P>Les effets redistributifs des taxes sur l'énergie<BR>De nouvelles données portant sur 21 pays de l’OCDE montrent que les effets redistributifs des taxes sur l’énergie varient selon le produit énergétique considéré. Selon l’approche fondée sur les dépenses, les taxes sur les carburants ne sont pas régressives en moyenne, car les ménages appartenant aux déciles inférieurs de dépenses consacrent une fraction plus faible de leurs dépenses à ces taxes. Alors que la moyenne non pondérée pour 21 pays de la proportion du revenu consacrée aux taxes sur les carburants est la plus élevée pour les ménages appartenant aux déciles inférieur et moyen, il existe une hétérogénéité entre pays. Dans certains pays, les taxes sur les carburants ont des effets progressifs à la fois avec l’approche fondée sur les dépenses et sur les revenus, alors que dans d’autres, les effets sont plus proportionnels ou la charge la plus lourde pèse sur les déciles moyens de dépenses. Les taxes sur les combustibles sont légèrement régressives, c’est-à-dire que le pourcentage de dépenses qui leur est consacré diminue avec les dépenses. Les taxes sur l’électricité sont plus régressives que celles sur les combustibles.
    Keywords: distribution services, Energy taxation
    JEL: H23 Q40 Q52
    Date: 2015–05
  2. By: Roberts, Deborah; Vera-Toscano, Esperanza; Phimister, Euan
    Abstract: Energy poverty is a significant policy issue in the UK. An argument often raised is that rural households are more likely to be energy poor due to the nature of rural housing stock and also the more limited choice of energy sources in rural areas. However empirical evidence to support this argument is limited. This paper uses data from the British Household Panel Survey to explore whether the incidence and dynamics of energy poverty varies between rural and urban areas in the UK. In addition to descriptive analysis, discrete hazard models of energy poverty exit and re-entry are estimated and used to explore the impact of an increase in energy price. The results indicate that the influence of certain housing and personal characteristics differs by place of residence. After accounting for differences in the observed characteristics, the experience of energy poverty in urban areas was found to be on average longer with a higher probability of energy poverty persistence. Vulnerability to energy price increases was found to be high with a 20% increase in price leading to a 74% increase in the probability rural residents being trapped in energy poverty for five or more years. It is argued that a combination of household type and spatial targeting of policy support is required.
    Keywords: Environmental Economics and Policy,
    Date: 2015–04
  3. By: Neuhoff, Karsten; Ruester, Sophia; Schwenen, Sebastian
    Abstract: Gas‐fired power plants constitute a direct and important link between the gas and the electricity sectors and thus between the Target Models for electricity and gas. As the need for a flexible operation of gas-fired power plants will increase in tomorrow’s low‐carbon power markets, so also will the challenges for market design of both sectors in allowing for flexible trading arrangements. For the electricity markets, options to advance intraday and balancing market design are currently discussed, such as complex bids, the frequency of intraday and balancing market clearing, and the joint optimization of energy and reserve markets. For the gas market, concrete options for design advances are yet to be explored. The success – and the flaws – of the implementation of the new EC Network Codes for gas will provide new food for debates. Last, the interaction between gas and electricity TSOs in balancing the heavily interlinked short-term electricity and gas markets poses a need for (more) coordination between the different types of TSOs.
    Keywords: Gas and Electricity Market Design,Gas-fired Power Plants
    JEL: Q41 Q42 Q48 L94 L95
    Date: 2014–04–24
  4. By: Shin S. Ikeda (National Graduate Institute for Policy Studies)
    Abstract: Historical data of system prices and traded quantities of electricity over the 48 half-hour intra-daily intervals in the Japan Electric Power Exchange are analyzed. Viewed as a panel dataset of the 48 dierent commodities in 7 dierent markets (days of a week) or 336 dierent contracts over 288 weeks, the data allow me to compute two representative measures of illiquidity, namely, Amihud's price-impact measure and Roll's implied spread cost measure from November 2006 to April 2012. These measures are based on the absolute weekly returns of each of 336 contracts divided by the corresponding volume of traded electricity, and on the rst-order serial covariance of weekly returns, respectively. Two measures closely comove but they contribute to the returns in dierent magnitudes, suggesting that each of them captures both common and distinctive aspects of illiquidity in the JEPX market. Once the lagged returns are controlled for in a dynamic panel framework, the in uence of price-impact measures on returns dominate that of spread measures. The price-impact measure and traded volume contribute the return variations in opposite signs, i.e., positively and negatively. It suggests that the assessment of illiquidity requires a careful treatment of these confounding factors.
    Date: 2015–05
  5. By: Neuhoff, Karsten; Ruester, Sophia; Schwenen, Sebastian
    Abstract: With increasing variability of demand and supply, transmission system operators (TSOs) across Europe adapt their internal processes and operational approaches. These processes comprise different interfaces with other market participants (e.g. via balancing markets, reserve procurement or NTC calculation). However, currently internal TSO approaches and market interfaces differ widely among TSOs in Europe. Different methods of reserve procurement, balancing rules, gate closure and algorithms for market clearing prevail. The Target Model aims at improving this situation and therefore is concerned with the definition and alignment of market protocols for these different interfaces. However, currently the focus lies on information exchange and to some extent a standardization of balancing energy products. Placing the core of TSO operation itself, also for system-services and internal market clearing processes, in the center of the debate, could lead to additional benefits both with respect to cross-border network operation as well as cross-border energy trade.
    Keywords: System Operation,Power Markets
    JEL: Q41 Q42 Q48 L94 L95
    Date: 2014–06–27
  6. By: Katarzyna Maciejowska; Jakub Nowotarski
    Abstract: This paper provides detailed information on Team Poland’s approach in the electricity price forecasting track of GEFCom2014. A new hybrid model is proposed, consisting of four major blocks: point forecasting, pre-filtering, quantile regression modeling and post-processing. This universal model structure enables independent development of a single block, without affecting performance of the remaining ones. The four-block model design in complemented by including expert judgements, which may be of great importance in periods of unusually high or low electricity demand.
    Keywords: Probabilistic forecasting; Hybrid model; Quantile regression; Electricity spot price; Forecasts combination; Pinball function
    JEL: C22 C32 C53 Q47
    Date: 2015–05–11
  7. By: Neuhoff, Karsten; Schwenen, Sebastian
    Abstract: Strategic reserves are in principle well suited to address both generation adequacy and system security in power markets. Depending on the power system and on the network topology, a strategic reserve has to be designed to fulfill both objectives. For the design of a strategic reserve (SR) in the German context, this implies that the strategic reserve should be able to deal with local scarcities in the south arising from network constraints that threat system security, as well as to maintain generation adequacy at the system‐wide level. This distinction will be of particular importance for a German strategic reserve that could either replace or run in parallel to the current ‘Netzreserve’. Policymakers also will have to decide on the degree to which additional policy goals such as strategies for coal‐fired plants may be reflected in the overall power market design and hence also within a strategic reserve. International coordination for the design of any capacity remuneration mechanisms (CRMs) offers the potential of cost‐reductions as the size of coordinated reserve capacities may decrease. If a reserve can deliver value and serve critical load in neighboring countries, coordinated CRMs, especially in central Europe should be further explored. At the same time, the role of interconnectors and the role of international re‐dispatch after SR activation have to be taken into account. While technical factors have to be considered yet, many lessons for implementing a strategic reserve exist, as for example relying on experiences in Belgium, Sweden, Poland and Finland.
    Keywords: German Power Market,Market Design
    JEL: L94 Q48
    Date: 2014–10–17
  8. By: Maya M. Papineau (Department of Economics, Carleton University)
    Abstract: The adoption rate of building energy standards in the US has been increasing since the mid- 1990s as a result of the Energy Policy Act of 1992 (EPAct). However, most of the evidence on the energy savings that accrue from commercial building energy standards is based on engineering simulations, which do not account for realized behavior once a standard is actually adopted. This paper uses plausibly exogenous variation in commercial building energy standard adoptions, combined with a unique state-level dataset on electricity consumption, energy prices, and the prevalence of “plus-utilities” tenancy contracts in commercial buildings, to estimate the realized electricity consumption response to commercial energy codes. The results suggest that in states with a large fraction of post-EPAct new construction under a code, per capita commercial electricity consumption is lower by about 13%. In addition, a one percentage point increase in the rate of tenancy contracts where tenants pay directly for energy utilities is associated with a 1% decrease in per capita electricity demand. The realized energy savings are less than half of predicted simulated savings.
    Keywords: Energy Efficiency; Energy Consumption; Regulation
    JEL: Q20 Q42 Q48
    Date: 2015–05–06
  9. By: Neuhoff, Karsten; Schwenen, Sebastian
    Abstract: Current EU short-term market designs for electricity face several challenges in (i) securing efficient system operation (ii) unlocking the full potential of flexible resources and (iii) fostering effective use of transmission capacity. For a gradual reform of market design and to guarantee secure operation of (cross-border) flexible resources, firm nominations for generation and load are required already at intraday, with subsequent auctions taking network constraints into account. Alternatively, gate closure can be moved several hours ahead of real-time with SO administered balancing markets starting accordingly. In both cases all auctions subsequent to day-ahead trades could be based on complex bids and hosted at a common platform at TSO, ISO or PX, where also transmission capacity and capacity allocation is jointly calculated.
    Keywords: gate closure,electricity market design
    JEL: Q41 Q42 Q48 L94 L95
    Date: 2013–06–28
  10. By: Maya M. Papineau (Department of Economics, Carleton University)
    Abstract: While green-labeled buildings have been found to sell at a premium compared to nearby controls with similar observable characteristics, the voluntary nature of the labeling decision implies green-labeled buildings may have different unmeasured characteristics that may account for at least a portion of the premium. Therefore, it is unclear whether green-labeled building premiums are a causal effect of the labels. I use data on repeat sales transactions and detailed hedonic characteristics to test whether green-labeled office buildings were selling at a premium before they were labeled, and combine these results with post-labeling price premium estimates to identify realized cost-benefit ratios for green-labeling policies. The data suggest the causal net benefits of green labels range from $11.50-$19.95 per square foot. The estimated net benefits are smaller than previous estimates that have focused solely on the benefits and ignored the potential biases from nonrandom selection.
    Keywords: Green Labels; Nonresidential Real Estate; Cost-Benefit Analysis
    JEL: Q48 D61 R33
    Date: 2015–05–06
  11. By: Neuhoff, Karsten
    Abstract: Long‐term energy contracts have featured prominently in many decisions of the European Commission to support the opening of the electricity markets. Contracts were seen to foreclose the market hence the Commission comprehensively unwound pre‐existing long‐term contracts and formulated strict criteria for new long‐term contracts. As a result, market participants are today reluctant to engage in long‐term (e.g. 20 years) contracts. In recent years mid‐ term contracting (1‐5 years), has played a far stronger role for risk management and investment in the practice of business. This has to date not been reflected in policy discussions. For example, most analysis of capacity mechanisms contrast the energy only spot market (day‐ahead) without mid‐term contracts with a capacity remuneration mechanism that offers several years contract coverage. This motivated the participants of the Future Power Market Platform to discuss the empirical situation with mid‐term contracts, the mechanisms underpinning their price formation, and the implications of mid‐term contracting for investment, re‐investment, and closure of power stations, as well as for congestion management. We find that: ‐ Large discrepancies of mid‐term contracting volumes across countries can reflect a variety of factors including regulatory design and consumer choices. ‐ Historically, investors were willing to undertake investment in liberalized electricity markets based on mid‐term contracting and retail customer basis. With the scale of current uncertainties more security is needed to back new investments. ‐ Mid‐term contracting can play a significant role in supporting re‐investment choices and coordination of mothballing and closure decisions. The discussion raised a set of questions that will be discussed in more detail in future meetings: ‐ What are the specific drivers for generation and different loads to sign mid‐term contracting and what factors are constraining an increasing volume of such contracts? ‐ Can congestion management mechanisms enhance the liquidity of mid‐term energy contracts by issuing transmission contracts of similar maturity so as to integrate different regional markets? ‐ The reference price for contracting is the short‐term price. This raises the question how shortterm energy prices are emerging and whether they reflect the value of system services provided?
    Keywords: Role of Contracting,European Electricity Markets
    JEL: Q41 Q42 Q48 L94 L95
    Date: 2013–05–24
  12. By: Marinela Krstinić Nižić (Faculty of Tourism and Hospitality Management, Opatija, University of Rijeka); Marcel Bračić
    Abstract: Purpose – The purpose of the research is to examine the awareness of hoteliers on energy efficiency and environmental protection. The authors wanted to know whether the hotel companies in the inner regions of Istria and Kvarner implement or plan to implement energy efficiency measures in order to use their resources more rationally. Design - Every hotel company should act responsibly towards the environment, i.e. be an active participant in sustainable development while preserving natural resources. This represents a great challenge, but also a great economic cost for each individual company. Methodology / Approach – Empirical research was conducted using a simple questionnaire adapted to the target group (tourism management, facility management). The study was conducted in December 2013, in the tourist destinations of Kvarner and Istria, on a sample of 15 hotels. The first part of the questionnaire is close-ended (with offered answers: yes, no, sometimes), while the second part of the survey is descriptive, or open-ended. The method of data collection was self-completion questionnaire, returned by e-mail or personally collected by the researchers at the hotel manager. The collected questionnaires were encrypted and statistically analysed. Another often used method of data collection was one-to-one interview. Findings – It is indicative that there is an increasing awareness of people employed in tourism about the fact that energy efficiency represents both the future and the necessity of business. In contrast, there is a lack of energy management, as well as of planning and investment in the energy efficient technologies. Concrete energy efficiency measures are poorly implemented into business. Originality of the research – This research provides reliable and actual qualitative and quantitative data about the problems of energy efficiency development, as well as the energyand cost saving in the regions of Istria and Kvarner.
    Keywords: effective use of resources, energy efficiency, economic savings, green business, tourism
    JEL: L83
  13. By: Jimin Kim (Yonsei University); Taehoon Hong (Yonsei University); Kwangbok Jeong (Yonsei university); Choongwan Koo (Yonsei university)
    Abstract: Climate change has become one of the most significant environmental issues, and each country makes an effort to reduce energy consumption in the building level. New renewable energy system (NREs) and energy saving measures (ESMs) are the solution for reducing energy consumption. Therefore, in this study, to understand the energy demand of the unit city, the feasibility analysis of NREs and ESMs, was conducted as the following three steps: (i) collecting database of Seoul, by type of energy used, and the type of facilities; (ii) the analysis on the implementation requirements of NREs and ESMs; and (iii) feasibility study for application of NREs and ESMs using a geographic information system. The differentiation with previous studies, it can be fed back to the plan of the urban energy system including community energy service, distributed generation and unused energy in the city.
    Keywords: new renewable energy system, energy saving measures, energy source map
    JEL: Q56 Q21 Q41
  14. By: Christian Dienes (Schumpeter School of Business and Economics, University of Wuppertal, Germany)
    Abstract: This paper empirically studies the relationship between different compliance strategies concerning environmental legislation and intentions of entrepreneurs to increase their firms’ material and energy efficiency in the next two years. Moreover, I examine the relationship between such intentions and the extent to which entrepreneurs are satisfied with past investments in resource efficiency improvements. Using data covering small and medium-sized enterprises from 36 countries from 2013, this study also explores the institutional framework regarding the stringency and enforcement of national environmental regulations. The results based on the total sample indicate that entrepreneurs who are more satisfied with past resource efficiency investments and who follow a strategy which goes beyond compliance are more likely to intend material and energy efficiency improvements in the future. The results further suggest that entrepreneurs translate their pro-environmental attitudes into intentions to reduce their demand for energy but not their demand for materials. Furthermore, the results based on subgroup analyses also point to decreasing marginal productivities of resource efficiency investments.
    Keywords: energy and material efficiency improvements, return on investment, compliance strategy, environmental regulation
    Date: 2015–05
  15. By: Irem DIDINMEZ (Hacettepe University Faculty of Economics & Administrative Science Department of Public Finance)
    Abstract: Since energy is an important input for the economic growth of countries and the development of industry, it has become an ever-gradually increasing concept. Countries have started to look for the alternative energy sources and to use it in order to ensure the energy security of supply and to decrease their foreign dependence. Turkish economy is an energy intensive economy. Turkey has been in search of sophisticated energy policy to vary the sources on providing energy security. Turkey is located in a relatively advantageous geographical position, so there is an encouraging atmosphere for the environmental technologies and renewable energy in Turkey. Energy policy, energy efficiency and enviromental sustainability play a critical role in Turkey’s energy agenda. The final objective of the energy policies of Turkey is to use the energy and natural sources efficiently and environment conscious, and to provide the highest contribution for the welfare of the country. Increasing the share of renewable energy sources at producing energy is one of the foremost targets at the energy policy of Turkey. For this reason, renewable energy sources are supported and promoted by government regulation, especially at the begining of operation. Current energy policy of Turkey is to increase the renewable energy share and to maximize benefit from existing potential until 2023.
    Keywords: energy resources, renewable energy, Turkey
  16. By: Tembo, Solomon T.; Mulenga, Brian P.; Sitko, Nicholas
    Abstract: This study examined the use of various sources of cooking energy among urban households in Zambia, and analyzed urban households’ energy choice and charcoal consumption decisions using econometric models. Overall, charcoal is the most common source of main cooking energy in urban areas, followed by electricity, and lastly the other non-specific sources, such as gas, and kerosene. Of the three main sources considered in this study (i.e., electricity only, charcoal only, and a mix of charcoal and electricity) charcoal accounted for almost half (44%) of urban households, followed by a mix of charcoal and electricity representing 38%, and lastly electricity only accounting for 17% of urban households.
    Keywords: Agricultural and Food Policy,
    Date: 2015–03
  17. By: Nikolaos Apostolopoulos (University of Peloponnese)
    Abstract: The present research deals with the effect of regional, macroeconomic, environmental end energy indicators on regional competitiveness of entrepreneurship in the solar energy sector. The work focuses on renewable energy production as it consists, to some extent, the core of sustainable development. By applying the AHP method, it is aimed to determine the significance of some criteria in relation to regional competitiveness of solar energy enterprises. Ten criteria are set to prioritize the 13 Greek regions. Quantitative and qualitative data will be combined in the present analysis so as to determine and prioritize the Greek regions with respect to the goal of regional competitiveness. The AHP method will be applied so as to delineate investments in the solar energy sector by incorporating regional factors in decisionmaking. Regions vary in terms of competitiveness in the solar energy sector; hence, decision makers and business managers should take into account regional factors.
    Keywords: entrepreneurship; solar energy; regional; AHP method
  18. By: Vêlayoudom Marimoutou (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS); Manel Soury (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)
    Abstract: We examine the dependence between the volatility of the prices of the carbon dioxide "CO2" emissions with the volatility of one of their fundamental components, the energy prices. The dependence between the returns will be approached by a particular class of copula, the Stochastic Autoregressive Copulas (SCAR), which is a time varying copula that was first introduced by Hafner and Manner (2012)[1] in which the parameter driving the dynamic of the copula follows a stochastic autoregressive process. The standard likelihood method will be used together with Efficient Importance Sampling (EIS) method, to evaluate the integral with a large dimension in the expression of the likelihood function. The main result suggests that the dynamics of the dependence between the volatility of the CO2 emission prices and the volatility of energy returns, coal, natural gas and Brent oil prices, do vary over time, although not much in stable periods but rise noticeably during the period of crisis and turmoils.
    Keywords: CO2 emissions, dependence, SCAR copula, efficient importance sampling, GAS model
    Date: 2015–05–05
  19. By: Christina Hood; Gregory Briner
    Abstract: A key element in the success of limiting mean global surface temperature rise to below 2°C will be transformation of the energy sector globally. In addition to implementing already-available options for more efficient use of energy and low-emissions energy supply, action is needed now to put in place the conditions for longer-term structural change to low-emissions energy systems. This transformational change will involve linkages between actions, institutions, and processes, both inside and outside the UNFCCC framework. This paper explores how the 2015 climate agreement, along with the nationally-determined contributions that Parties make under it, could drive energy sector transformation in addition to tracking greenhouse gas outcomes.<P>La transformation du secteur de l'énergie : enjeux et options à débattre lors des négociations de la CCNUCC<BR>Un facteur essentiel pour parvenir à limiter l’augmentation de la température moyenne à la surface du globe à 2°C sera la transformation du secteur de l’énergie dans le monde entier. En plus de mettre en oeuvre des solutions déjà disponibles permettant d’utiliser plus efficacement l’énergie et d’obtenir des approvisionnements énergétiques à faibles émissions, il faut agir dès aujourd’hui afin de créer les conditions propices à la mutation structurelle qui aboutira, à plus long terme, à la mise en place de systèmes énergétiques à faibles émissions. Les transformations nécessaires mettront en relation des actions, des institutions et des processus, à la fois dans le cadre de la CCNUCC et hors de ce cadre. Ce rapport analyse comment l’accord de 2015 sur le climat, ainsi que les contributions déterminées au niveau national que les Parties apporteront à ce titre, pourraient non seulement permettre de suivre les résultats obtenus concernant les gaz à effet de serre, mais aussi être les moteurs de la transformation du secteur de l’énergie.
    Keywords: mitigation, climate finance, UNFCCC, climate change, greenhouse gas, adaptation, adaptation, atténuation, finance climat, gaz à effet de serre, changement climatique, CCNUCC
    JEL: F53 O31 Q42 Q48 Q54
    Date: 2014–11
  20. By: Rashmi Ramesh (ssn college of Engineering); Ramanujan Vetrivel (ssn college of engineering); Purushotham M (ssn college of engineering)
    Abstract: With rapid development of wind power technologies and significant growth of wind power capacity installed worldwide, various wind turbine concepts have been developed. The wind energy conversion system is demanded to be more cost-competitive, so that comparisons of different wind generator systems are necessary. An overview of different wind generator systems and their comparisons are presented. First, the contemporary wind turbines are classified with respect to both their control features and drive train types, and their strengths and weaknesses are described. The promising permanent magnet generator types are also investigated. Then, the quantitative comparison and market penetration of different wind generator systems are presented. Finally, the developing trends of wind generator systems and appropriate comparison criteria are discussed.
    Keywords: Wind Power, Variable speed wing turbine, Full Scale Power Converter, Permanent Magnet Synchronous Generator and Gear-less Concept
    JEL: Q20 D40 O22
  21. By: Hoolohan, Claire; McLachlan, Carly
    Keywords: Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,
    Date: 2015–03
  22. By: Jonathan M. Lee
    Abstract: The US EPA’s command-and-control NOx policies of the early 1990s are associated with a 3.1 percentage point reduction in the likelihood of manufacturing plants vertically integrating the electricity generation process. During the same period California adopted a cap-and-trade program for NOx emissions that resulted in no significant impact on distributed electricity generation in manufacturing. These results suggest that traditional command-and-control approaches to air pollution may exacerbate other market failures such as the energy efficiency gap, because distributed generation is generally recognized as a more energy efficient means of producing electricity
    Date: 2015–04
  23. By: Asuka Oura (Graduate School of Economics, Osaka University); Yasukatsu Moridera (Graduate School of Economics, Osaka University); Koichi Futagami (Graduate School of Economics, Osaka University)
    Abstract: The accumulation of pollution negatively impacts human health. Extreme increases in pollution, in particular, may have lethal implications for human beings|and, indeed, all living organisms. This paper thus devises a new model of economic growth that takes into account these lethal effects of accumulated pollution via a pollution threshold to show two key results. First, if an abatement technology is relatively inefficient, there exists a stationary steady state in which consumption and pollution stop growing. Second, if the abatement technology is sufficiently efficient, there exists a path along which pollution decreases at an accelerating rate until finally reaching zero. In this case, consumption grows at a constant rate.
    Keywords: Endogenous growth, Pollution disutility, Pollution abatement
    JEL: O44 Q52
    Date: 2015–04
  24. By: Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Freibauer, Annette; Wulf, Sebastian; Eurich-Menden, Brigitte; Döhler, Helmut; Schreiner, Carsten; Bauer, Beate; Osterburg, Bernhard
    Abstract: The report at hand (including a comprehensive annex of data) serves as additional document to the National Inventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammonia). The report documents the calculation methods used in the German agricultural inventory model GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2015 for the years 1990 - 2013. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy plants. As required by the guidelines, emissions from activities preceding agriculture, from the use of energy and from land use change are reported elsewhere in the national inventories. The calculation methods are based in principle on international guidelines for emission reporting and have been continuingly improved during the past years. In particular, these improvements concern the calculation of energy requirements, feeding and the N balance of the most important animal categories. In addition, technical measures such as air scrubbing (mitigation of ammonia emissions) and digestion of animal manures (mitigation of emissions of methane and loughing gas) have been taken into account. Total emissions of methane (CH4) and laughing gas (N2O) from German agriculture (including the anaerobic digestion of energy plants) decreased from about 77.9 Tg CO2-eq in 1990 to about 64.2 Tg CO2-eq in 2013 (- 17.5 %). [...]
    Abstract: Der vorliegende Berichtsband einschließlich des umfangreichen Datenanhangs dient als Begleitdokument zum National Inventory Report (NIR) über die deutschen Treibhausgas-Emissionen und zum Informative Inventory Report (IIR), über die deutschen Schadstoffemissionen (insbesondere Ammoniak). Er dokumentiert die im deutschen landwirtschaftlichem Inventarmodell GASEM integrierten Berechnungsverfahren sowie die Eingangsdaten, Emissionsergebnisse und Unsicherheiten der Berichterstattung 2015 für die Jahre 1990 bis 2013. Der Bereich Landwirtschaft umfasst dabei die Emissionen aus der Tierhaltung und der Nutzung landwirtschaftlicher Böden sowie aus der Vergärung von Energiepflanzen. Emissionen aus dem Vorleistungsbereich, aus der Nutzung von Energie sowie Landnutzungsänderungen werden den Regelwerken entsprechend an anderer Stelle in den nationalen Inventaren berichtet. Die Berechnungsverfahren beruhen in erster Linie auf internationalen Regelwerken zur Emissionsberichterstattung und wurden in den vergangenen Jahren beständig weiterentwickelt. Letzteres betrifft im Wesentlichen die Berechnung des Energiebedarfs, der Fütterung und der tierischen N-Bilanz bei den wichtigen Tierkategorien. Zusätzlich wurden technische Maßnahmen wie Abluftreinigung (Minderung von Ammoniakemissionen) und die Vergärung von Wirtschaftsdünger (Minderung von Methan- und Lachgasemissionen) berücksichtigt. Die Gesamtemissionen von Methan (CH4) und Lachgas (N2O) aus der deutschen Landwirtschaft (einschließlich der Vergärung von Energiepflanzen) sanken von rund 77,9 Tg CO2-eq im Jahr 1990 auf rund 64,2 Tg CO2-eq im Jahr 2013 (-17,5 %). [...]
    Keywords: emission inventory,agriculture,animal husbandry,agricultural soils,anaerobic digestion,energy plants,renewable primary products,greenhouse gases,air pollutants,methane,loughing gas,ammonia,particulate matter,Emissionsinventar,Landwirtschaft,Tierhaltung,landwirtschaftliche Boden,anaerobe Vergarung,Energiepflanzen,nachwachsende Rohstoffe,Treibhausgase,Luftschadstoffe,Methan,Lachgas,Ammoniak,luftgetragene Partikel
    Date: 2015
  25. By: Richard S. J. Tol (Department of Economics, University of Sussex, UK; Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands; Department of Spatial Economics, Vrije Universiteit, Amsterdam, The Netherlands; Tinbergen Institute, Amsterdam, The Netherlands; CESifo, Munich, Germany)
    Abstract: Climate change will probably have a limited impact on the economy and human welfare in the 21st century. The initial impacts of climate change may well be positive. In the long run, the negative impacts dominate the positive ones. Negative impacts will be substantially greater in poorer, hotter, and lower-lying countries. Poverty reduction complements greenhouse gas emissions reduction as a means to reduce climate change impacts. Climate change may affect the growth rate of the economy and may trap more people in poverty but quantification is difficult. The optimal carbon tax in the near term is somewhere between a few tens and a few hundreds of dollars per tonne of carbon.
    Keywords: Impacts of climate change, economic development, social cost of carbon
    JEL: Q54
    Date: 2015–05
  26. By: Gregory Briner; Takayoshi Kato; Takashi Hattori
    Abstract: The aim of this paper is to explore what a flexible and durable 2015 climate change agreement could look like and propose pragmatic options for the design of such an agreement. A durable 2015 climate change agreement would continue to be ambitious, fair and effective in 2020 and beyond. An agreement that is designed to be durable could also help to encourage widespread participation by governments, as well as improve the credibility of the agreement for investors. To achieve these objectives, a degree of flexibility could be included in the mitigation and other provisions of the 2015 agreement. If so, a balance may need to be struck between (i) providing enough flexibility for countries to feel comfortable participating in the agreement, (ii) providing predictability regarding the provisions of the agreement and the actions that governments intend to take, and (iii) the collective level of ambition of the agreement. Success will be needed on all fronts if the agreement is to be durable. Building some flexibility into the design of the 2015 agreement could make it more durable in the face of new scientific discoveries, external changes and shocks, as well as evolving country circumstances. The focus of this paper is on the mitigation part of the 2015 agreement. The paper outlines possible processes for consultations and updating of mitigation contributions. It also discusses the possible structure of the 2015 agreement and the implications of different mitigation contribution types for the flexibility and durability of the agreement.<P>Construit pour durer : concevoir un accord climatique de 2015 souple et pérenne<BR>Ce rapport a pour objet d’envisager à quoi pourrait ressembler un accord souple et pérenne sur le changement climatique à conclure en 2015 et propose des options pragmatiques pour le concevoir. Un accord climatique pérenne signé en 2015 devrait demeurer ambitieux, juste et efficace en 2020 et au-delà. Conçu pour durer, il pourrait aussi encourager une large participation des gouvernements et bénéficier d’une plus grande crédibilité aux yeux des investisseurs. Pour atteindre ces objectifs, les dispositions de l’accord de 2015 visant l’atténuation et d’autres aspects pourraient ménager une certaine marge de manoeuvre, auquel cas il faudrait trouver un équilibre entre : (i) une flexibilité suffisante pour que les pays participant à l’accord se sentent à l’aise, (ii) la prévisibilité des dispositions de l’accord et des actions prévues par les gouvernements, et (iii) le degré d’ambition collective de l’accord. C’est sur tous les fronts qu’il importe d’obtenir de bons résultats pour assurer la pérennité de l’accord. Prévoir une certaine souplesse dans l’accord de 2015 dès sa conception permettrait de prolonger sa validité même si de nouvelles découvertes scientifiques, des changements et des chocs extérieurs ou l’évolution des situations nationales modifient la donne. Ce rapport est axé sur le volet atténuation de l’accord de 2015. Il décrit les processus de consultation et de mise à jour des contributions à l’atténuation qui pourraient y être inscrits. Il examine en outre la structure possible de l’accord de 2015 et les conséquences des différents types de contributions en matière d’atténuation pour sa flexibilité et sa pérennité.
    Keywords: mitigation, UNFCCC, 2015 agreement, greenhouse gas, climate change, changement climatique, gaz à effet de serre, atténuation, accord de 2015, CCNUCC
    JEL: F53 O44 Q54 Q56
    Date: 2014–05
  27. By: Tracy Snoddon (Wilfrid Laurier University)
    Abstract: The global nature of the climate change externality calls for a global response but so far none has emerged. Instead, climate policies are being implemented by subnational and national governments, resulting in a fragmented policy landscape at the national level. This is certainly the case in Canada. While this outcome is not particularly surprising, from an economics perspective, it is arguably more costly, less efficient, and less effective at achieving emissions reductions than a more harmonized approach. Is this outcome the unavoidable price of Canadian federalism? Is a more harmonized carbon tax approach feasible? This paper considers Canada’s experience with three major taxes, jointly occupied by federal and provincial governments. Despite its highly decentralized structure, Canada has a history of tax harmonization and coordination arrangements for these taxes. By examining the evolution of these arrangements, the paper offers insights on the prospects of adopting a more harmonized carbon tax approach to address climate change.
    Keywords: carbon taxes, tax coordination and harmonization, Canada
    JEL: H23 H77 Q58
    Date: 2015–05–08
  28. By: May, Nils G. (DIW Berlin); Nilsen, Øivind Anti (Norwegian School of Economics)
    Abstract: Globally installed wind power capacity has grown tremendously since 2000. This study focuses on the local economic impacts of wind power deployment. A theoretical model shows that wind power deployment is not necessarily driven by locally-accruing economic payoffs, but also by other factors such as emphasis on environmentally-friendly energy production and its associated benefits. The theoretical analysis is followed by an empirical analysis using German county-level panel data. After controlling for a set of observable and unobservable factors, the results state that wind power installation has no impact on GDP per capita. These findings support the predictions from the theoretical model: local economic impacts cannot alone explain the observed increase in wind power capacity.
    Keywords: wind power, economic development, panel data
    JEL: Q42 R11 C23
    Date: 2015–04
  29. By: Blandford, David; Gaasland, Ivar; Hassapoyannes, Katharina; Vardal, Erling
    Abstract: Agriculture makes a significant contribution to Norway’s emissions of greenhouse gases (GHG). Although agriculture accounts for only 0.3 per cent of GDP, it accounts for roughly 8 per cent of total GHG emissions. Norwegian agriculture is dominated by livestock production; ruminants (cattle and sheep) are particularly important. There are opportunities for GHG mitigation under existing technology through changes in agricultural practices. We derive an abatement cost curve for Norway in terms of the change in economic welfare. We require Norway to be self-sufficient in agricultural products; i.e. that domestic production of calories shall be kept at the current level. We use a detailed economic model to assess the impact and welfare implication of a reduction in GHG emissions. We find that a large part of the abatement cost curve is negative due to distortions created by domestic support policies. The practical consequence is that emissions reduction requires that production of grain-based products be increased at the expense of ruminant-based products.
    Keywords: greenhouse gas mitigation, economic model, abatement costs, Environmental Economics and Policy, Health Economics and Policy, C61, Q18, Q54,
    Date: 2015–04
  30. By: Allan, Corey; Kerr, Suzi; Will, Campbell
    Keywords: Consumer/Household Economics, Environmental Economics and Policy,
    Date: 2015–02
  31. By: Hecking, Harald (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: The paper at hand examines the power system costs when a coal tax or a fixed bonus for renewables is combined with CO2 emissions trading. It explicitly accounts for the interaction between the power and the gas market and identifies three cost effects: First, a tax and a subsidy both cause deviations from the cost-efficient power market equilibrium. Second, these policies also impact the power sector's gas demand function as well as the gas market equilibrium and therefore have a feedback effect on power generation quantities indirectly via the gas price. Thirdly, by altering gas prices, a tax or a subsidy also indirectly affects the total costs of gas purchase by the power sector. However, the direction of the change in the gas price, and therefore the overall effect on power system costs, remains ambiguous. In a numerical analysis of the European power and gas market, I find using a simulation model integrating both markets that a coal tax affects gas prices ambiguously whereas a fixed bonus for renewables decreases gas prices. Furthermore, a coal tax increases power system costs, whereas a fixed bonus can decrease these costs because of the negative effect on the gas price. Lastly, the more market power that gas suppliers have, the stronger the outlined effects will be.
    Keywords: CO2 abatement; oligopoly; gas market; power market
    JEL: C60 L13 Q02 Q48
    Date: 2015–05–05

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