nep-ene New Economics Papers
on Energy Economics
Issue of 2015‒06‒13
forty-four papers chosen by
Roger Fouquet
London School of Economics

  1. On the relationship between energy consumption, productivity and economic growth: Evidence from Algeria, Ghana, Nigeria and South Africa By Ackah, Ishmael
  2. Optimal renewable-energy subsidies By Andor, Mark; Voss, Achim
  3. Mandates and the Incentive for Environmental Innovation By Matthew S. Clancy; GianCarlo Moschini
  4. Australia’s renewable energy policy: the case for intervention By Byrnes, Liam; Brown, Colin
  5. The burden of Germany's energy transition: An empirical analysis of distributional effects By Frondel, Manuel; Sommer, Stephan; Vance, Colin
  6. A first step up the energy ladder? Low cost solar kits and household's welfare in rural Rwanda By Grimm, Michael; Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane
  7. Is the German retail gas market competitive? A spatial-temporal analysis using quantile regression By Kihm, Alex; Ritter, Nolan; Vance, Colin
  8. Back to 1820? Spatial distribution of GDP and CO2 Emissions By Caspar Sauter; Jean-Marie Grether; Nicole A. Mathys
  9. Modeling energy price dynamics: GARCH versus stochastic volatility By Joshua C.C. Chan; Angelia L. Grant
  10. The Impact of Wind Power Support Schemes on Technology Choices By Nils May
  11. "Grüner" Strom gleich guter Strom? Warum Solarförderung ein teurer Irrtum ist By Frondel, Manuel; Schmidt, Christoph M.; Vance, Colin
  12. In the short run, energy efficiency concerns and trade protection hurt each other and growth, but in the long run, not necessarily so: 1980-2010 Latin American Evidence By Alexandra Tsiotras; Antonio Estache
  13. Does large scale infrastructure investment alleviate poverty? Impacts of Rwanda's electricity access roll-out program By Lenz, Luciane; Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane
  14. Transition pathways for a UK low carbon electricity system : Comparing scenarios and technology implications By Barton, J.; Davies, L; Foxon, T.J.; Galloway, S.; Hammond, Geoff; O'Grady, Áine; Robertson, E.; Thomson, M.
  15. Wege zu einem erfolgreichen Klimaabkommen von Paris: Vorschlag für eine wohlstandsadäquate Lastverteilung By Bardt, Hubertus; Schaefer, Thilo
  16. Forward Premia in Electricity Markets: Two Caveats By Silvester Van Koten
  17. Teuer und ineffizient: Die Emissionsminderung der EU By Frondel, Manuel
  18. Impacts of rural electrification revisited: The African context By Peters, Jörg; Sievert, Maximiliane
  19. Sowing the Wind and Reaping the Whirlwind?: The Effect of Wind Turbines on Residential Well-Being By Christian Krekel; Alexander Zerrahn
  20. Is the Price Elasticity of Demand for Coal in China Increasing? By Paul J. Burke; Hua Liao
  21. Explaining the Awareness and Attitude of the Delhi Households in context of Electricity Consumption By Tewathia, Nidhi
  22. The Structure and Dynamics of Liquefied Natural Gas Pricing in Asia and the Pacific and Implications for Australia By Nhu Che; Tom Kompas
  23. Energiekostenbelastung privater Haushalte: Das EEG als sozialpolitische Zeitbombe? By Frondel, Manuel; Sommer, Stephan
  24. Low Carbon Development: The Challenges of Green Energy Innovation By Frank L. Bartels; Bianca Cravenna
  25. The Ruble between the Hammer and the Anvil: Oil Prices and Economic Sanctions By Christian Dreger; Jarko Fidrmuc; Konstantin Kholodilin; Dirk Ulbricht
  26. Space-time modeling of electricity spot prices By Girum D. Abate; Niels Haldrup
  27. Economic Analysis of the Effects of Eastern Australia's LNG Exports in Asia-Pacific on Domestic Gas Users By Nhu Che; Tom Kompas
  28. The intensive margin of technology adoption: Experimental evidence on improved cooking stoves in rural Senegal By Bensch, Gunther; Peters, Jörg
  29. SMART-ECONOMY CONCEPT - FACTS AND PERSPECTIVES (International Conference “EUROPEAN PERSPECTIVE OF LABOR MARKET - INOVATION, EXPERTNESS, PERFORMANCE”) By Diana Apostol; Cristina Bălăceanu; Eleonora Mihaela Constantinescu
  30. Beer, wood, and welfare By Grimm, Michael; Peters, Jörg
  31. Testing for the Presence of Asymmetric Information in the Oil Market: A VAR Approach By Troug, Haytem Ahmed; Sbia, Rashid
  32. The right way to reform the EU emissions trading system: Alternatives to the market stability reserve By Andor, Mark A.; Frondel, Manuel; Sommer, Stephan
  33. Utilising Bio-resources: Rational Strategies for a Sustainable Bio-economy (ITA-manu:script 14-02) By Narodoslawsky, Michael
  34. The U.S. Investment Tax Credit for Solar Energy: Alternatives to the Anticipated 2017 Step-Down By Comello, Stephen D.; Reichelstein, Stefan J.
  35. Transboundary Capital and Pollution Flows and the Emergence of Regional Inequalities By Simon Levin; Anastasios Xepapadeas
  36. Why do households forego high returns from technology adoption: Evidence from improved cook stoves in Burkina Faso By Bensch, Gunther; Grimm, Michael; Peters, Jörg
  37. Mitigating hypothetical bias: Evidence on the effects of correctives from a large field study By Andor, Mark A.; Frondel, Manuel; Vance, Colin
  38. Reform des EU-Emissionshandels, aber richtig! Alternativen zur Marktstabilitätsreserve By Andor, Mark; Frondel, Manuel; Sommer, Stephan
  39. Firm productivity and infrastructure costs in east Africa By Iimi,Atsushi; Humphrey,Richard Martin; Melibaeva,Sevara
  40. Welfare Effects of Home Automation Technology with Dynamic Pricing By Bollinger, Bryan; Hartmann, Wesley R.
  42. Aspekte einer nachhaltigen Energiezukunft (ITA-manu:script 13-03) By Wächter, Petra
  43. Zahlungsbereitschaft für grünen Strom: Die Kluft zwischen Wunsch und Wirklichkeit By Andor, Mark A.; Frondel, Manuel; Vance, Colin
  44. Reform des EU-Emissionshandels: Alternativen zur Marktstabilitätsreserve By Andor, Mark Andreas; Frondel, Manuel; Sommer, Stephan

  1. By: Ackah, Ishmael
    Abstract: It has been suggested that Africa’s growth is principally driven by natural resource rents. This is at variance with the growth in countries such as Korea and Taiwan where productivity has been identified as the main driver. In this study, the effect of energy consumption, investment, productivity on per capita growth in oil producing African countries is examined by employing a dynamic simultaneous panel data model. The simultaneous panel data model is able to examine the three-way causal relationship between energy consumption, productivity and economic growth. The results confirm the importance of income, productivity, price and investment influence the demand for renewable end non-renewable energy. The study recommends that there should be investment in productivity to enhance economic growth and minimize energy consumption.
    Keywords: Total Factor Productivity, Renewable Energy Consumption, Non-Renewable Energy Consumption, Economic Growth
    JEL: Q2 Q41 Q43
    Date: 2015–05–11
  2. By: Andor, Mark; Voss, Achim
    Abstract: We derive optimal subsidization of renewable energies in electricity markets. The analysis takes into account that capacity investment must be chosen under uncertainty about demand conditions and capacity availability, and that capacity as well as electricity generation may be sources of externalities. The main result is that generation subsidies should correspond to externalities of electricity generation (e.g., greenhouse gas reductions), and investment subsidies should correspond to externalities of capacity (e.g., learning spillovers). If only capacity externalities exist, then electricity generation should not be subsidized at all. Our results suggest that some of the most popular promotion instruments are likely to cause welfare losses.
    Abstract: In diesem Artikel leiten wir optimale Subventionen für erneuerbare Energien im Elektrizitätsmarkt her. Die Analyse berücksichtigt sowohl, dass Entscheidungen über Kapazitätsinvestitionen unter Unsicherheit über die Nachfrage und die Verfügbarkeit der Kapazität getroffen werden müssen, als auch, dass sowohl die Kapazität selbst als auch die Erzeugung von Strom externe Effekte haben können. Das wichtigste Ergebnis ist, dass Subventionen, die die Produktion subventionieren, den Externalitäten der Stromerzeugung (wie z.B. der Reduzierung von Treibhausgasen) und Investitionssubventionen den Externalitäten der Kapazität (bspw. öffentlichen Lernkurveneffekten) entsprechen sollten. Falls nur Externalitäten der Kapazität vorliegen, sollte die Stromerzeugung überhaupt nicht subventioniert werden. Unsere Ergebnisse legen daher nahe, dass einige der populärsten Förderinstrumente vermutlich Wohlfahrtsverluste verursachen.
    Keywords: peak-load pricing,capacity investment,demand and supply uncertainty,renewable energy sources,energy policy,optimal subsidies,feed-in tariffs
    JEL: Q41 Q48 H23
    Date: 2014
  3. By: Matthew S. Clancy; GianCarlo Moschini (Center for Agricultural and Rural Development (CARD))
    Abstract: Mandates are policy tools that are becoming increasingly popular to promote renewable energy use. In addition to mitigating the pollution externality of conventional energy, mandates have the potential to promote R&D investments in renewable energy technology. But how well do mandates perform as innovation incentives? To address this question, we develop a partial equilibrium model with endogenous innovation to examine the R&D incentives induced by a mandate, and compare this policy to two benchmark situations: laissez-faire and a carbon tax. Innovation is stochastic and the model permits an endogenous number of multiple innovators. We find that mandates can improve upon laissez faire, and that the prospect of innovation is essential for their desirability. However, mandates suffer from several limitations. A mandate creates relatively strong incentives for investment in R&D in low-quality innovations, but relatively weak incentives to invest in high-quality innovations, so that the dispersion of realized innovation quality is comparatively low. Moreover, a mandate achieves lower welfare than a carbon tax, and its optimal level is more sensitive to the structure of the innovation process. Key Words: Carbon tax, Incentive, Innovation, Mandates, Renewable energy, R&D, Welfare. JEL codes: H23, O31, Q42, Q55, Q58
    Date: 2015–06
  4. By: Byrnes, Liam; Brown, Colin
    Abstract: As Australia grapples with increasing renewable energy penetration and the appropriate climate change strategy, renewable energy policy plays an increasingly important role. In recent years the renewable energy policy environment has become increasingly politicised and uncertain. The implications for the industry are significant. In light of this policy environment, this paper sets out the economic theory behind public sector market intervention and contextualises it within the Australian renewable energy context. It highlights the barriers facing renewable energy deployment and explores the current status of Australian renewable energy policy. This analysis reveals market failures and other barriers to deployment as well as entrenched enabling policy, regulatory and institutional frameworks for fossil fuel industries. This context was found to justify government intervention to support the renewables sector and improve overall economic efficiency. Building on this analysis, five observations relevant to the development of future renewable energy policy are outlined.
    Keywords: Energy Policy; Energy; Renewable Energy Policy; Renewable; Policy Development; Australia
    JEL: E61 E65 H0 H3 O2 O3
    Date: 2015–05
  5. By: Frondel, Manuel; Sommer, Stephan; Vance, Colin
    Abstract: Germany's energy transition has been accompanied by a near doubling of power prices for private households since the outset of the new millennium. Millions of poor households and those that are close to the poverty threshold are likely to suffer from these increases in electricity cost. Focusing on low-income households, this paper illustrates the distributional implications of Germany's energy transition by investigating their electricity cost burden between 2006 and 2012, using data from the German Residential Energy Consumption Survey (GRECS). Our estimates suggest that in 2012, on average, households at poverty risk allocated 5.5% of their income to power and, hence, paid nearly as much for covering their electricity consumption as for heating purposes. Given Germany's ambitious targets to expand the share of costly renewable technologies in electricity consumption, which has broad support among the electorate, it is to be expected that households' expenditure for power will increase in the upcoming years. This raises the urgent question of how to mitigate the regressive impact of further increasing electricity prices on poor households. Direct cash transfers are suggested here as a non-distortionary instrument for easing the burden of high prices, one that is directly targeted at those endangered by energy poverty.
    Abstract: Der Ausbau der erneuerbaren Energien in Deutschland ging mit einer Verdopplung der Haushaltsstrompreise seit dem Jahr 2000 einher. Insbesondere leiden Millionen von armutsgefährdeten Haushalten unter dem Anstieg ihrer Stromkosten. Mit dem Fokus auf einkommensschwachen Haushalten stellt der vorliegende Beitrag die Verteilungswirkungen der Energiewende durch die Analyse der Stromkostenentwicklung privater Haushalte zwischen 2006 und 2012 dar. Basierend auf Primärdaten zum Energieverbrauch legen unsere Ergebnisse nahe, dass armutsgefährdete Haushalte im Jahr 2012 durchschnittlich 5,5% ihres Einkommens für Elektrizität ausgaben. Damit zahlten sie einen ähnlich hohen Betrag für Strom wie für den Bedarf an Heizenergie. Angesichts der ambitionierten Ziele Deutschlands, den Anteil teurer erneuerbarer Energien an der Stromerzeugung zu steigern, ist zu erwarten, dass sich die Stromausgaben in den kommenden Jahren weiter erhöhen werden. Dies zieht die Frage nach sich, wie die regressive Wirkung zukünftig steigender Strompreise abgefedert werden kann. Transferleistungen an armutsgefährdete Haushalte werden als ein unverzerrendes Instrument vorgeschlagen, ihre Belastung durch hohe Preise zu begrenzen.
    Keywords: energy transition,feed-in tariff,German Residential Energy Consumption Survey
    JEL: Q21 Q28 Q47
    Date: 2015
  6. By: Grimm, Michael; Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane
    Abstract: More than 1.3 billion people in developing countries are lacking access to electricity. Based on the assumption that electricity is a prerequisite for human development, the United Nations initiative Sustainable Energy for All (SE4All) has proclaimed the goal of providing modern energy to all by 2030. In recent years, Pico-Photovoltaic kits have become a lower-cost alternative to investment-intensive grid electrification. Using a randomized controlled trial we examine uptake and impacts of a simple Pico-Photovoltaic kit that barely exceeds the benchmark of what the UN considers as modern energy. We find significant effects on households' budget, productivity and convenience. Despite these effects, the data shows that adoption will be impeded by affordability, suggesting that policy would have to consider more direct promotion strategies such as subsidies or financing schemes to reach the UN goal.
    Keywords: energy access,household productivity,household technology adoption,Sub-Saharan Africa,Randomized Controlled Trial
    JEL: O13 O18 Q41 D13 I31
    Date: 2015
  7. By: Kihm, Alex; Ritter, Nolan; Vance, Colin
    Abstract: We explore whether non-competitive pricing prevails in Germany's retail gasoline market by examining the influence of the crude oil price on the retail gasoline price, focusing specifically on how this influence varies according to the brand and to the degree of competition in the vicinity of the station. Our analysis identifies several factors other than cost - including the absence of nearby competitors and regional market concentration - that play a significant role in mediating the influence of the oil price on the retail gas price, suggesting price setting power among stations.
    Keywords: panel data,quantile regression,spatial competition,gasoline market
    JEL: C33 Q41 R41
    Date: 2014
  8. 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, Berne, Switzerland)
    Abstract: We construct the world's centers of gravity for human population, GDP and CO2 emissions by taking the best out of five recognized data sources covering the last two centuries. We also propose a more appropriate two-map representation of the location of the center of gravity, which abstracts from the usual distortions affecting the projection of a point within a three-dimensional sphere on a two-dimensional map. This allows for a more accurate interpretation of the underlying trends. We find a radical Western shift of GDP and CO2 emissions centers during the 19th century, in sharp contrast with the stability of the demographic center of gravity. Both GDP and emissions trends are reversed in the first half of the 20th century, after World War I for CO2 emissions, and after World War II for GDP. Since then, both centers are moving eastward at an accelerating speed. These patterns are consistent with the initial lead of Western countries starting the industrial revolution and the adoption of fossil fuels as its main energy source, the impact of world con flicts, the gradual replacement of coal by oil and gas, and the progressive catch up of Asian countries, leading to a convergence in terms of both GDP and CO2 emissions per capita in the recent past.
    Keywords: center of gravity, growth, CO2 emissions, gdp, population, convergence
    JEL: Q56 Q59
    Date: 2015–05
  9. By: Joshua C.C. Chan; Angelia L. Grant
    Abstract: We compare a number of GARCH and stochastic volatility (SV) models using nine series of oil, petroleum product and natural gas prices in a formal Bayesian model comparison exercise. The competing models include the standard models of GARCH(1,1) and SV with an AR(1) log-volatility process and more flexible models with jumps, volatility in mean and moving average innovations. We find that: (1) SV models generally compare favorably to their GARCH counterparts; (2) the jump component substantially improves the performance of the standard GARCH, but is unimportant for the SV model; (3) the volatility feedback channel seems to be superfluous; and (4) the moving average component markedly improves the fit of both GARCH and SV models. Overall, the SV model with moving average innovations is the best model for all nine series.
    Keywords: Bayesian model comparison, crude oil, natural gas, moving average, jumps
    JEL: C11 C52 Q41
    Date: 2015–06
  10. By: Nils May
    Abstract: Germany changed renewable remuneration for wind power from a fixed Feed-In Tariff (FIT) to a floating Market Premium Scheme (MPS) in 2012. One aim of this adjustment was to better align the supply of generated wind electricity with the demand for it, e.g. through more system-friendly wind turbine technology choices. In energy systems with a high share of variable renewable energies, such turbines produce a higher share of their production at lower wind speeds and thus can reduce the need for alternative flexibility options like back-up capacity, storage, grid extensions and demand side measures. However, based on a wind power investment model, I show that the MPS fails to convey strong enough incentives to project developers to significantly alter their investment decisions as long as these base their investments on current electricity market price profiles and are limited by their access to risk-averse project finance. One reform proposal to support the installation of system-friendly turbines is a change in the production volume-based benchmark approach which plays an integral part in both the fixed FIT and the MPS. The investment model indicates that such a revised policy can incentivize the deployment of moderately more system-friendly wind power technologies at some locations. An alternative option is to shift to a production value-based benchmark approach. It directly reflects the future additional market value of system-friendly turbines in today's remuneration structure. Thus, this approach sets incentives also for investors without perfect foresight - or with financing constraints - to deploy more systemfriendly turbines that meet the requirements of power systems with increasing shares of wind power.
    Keywords: Renewable Energies, Wind Power Technology, Feed-in Tariff, Project Finance, Market Premium
    JEL: Q42 Q55 O38
    Date: 2015
  11. By: Frondel, Manuel; Schmidt, Christoph M.; Vance, Colin
    Abstract: In den vergangenen Jahren erlebte Deutschland einen Solarboom. Stark fallende Preise für Solarmodule sowie die hohen Einspeisevergütungen führten dazu, dass die Photovoltaik (PV) massiv ausgebaut wurde. Dies ist entgegen erster Intuition keine gute, sondern eine gefährliche Entwicklung: In Summe und in heutigen Preisen müssen die deutschen Stromverbraucher über höhere Stromrechnungen rund 111 Mrd. Euro für die zwischen April 2000 und Ende 2013 installierten PV-Anlagen zahlen. Den immensen Kosten stehen dabei bedauerlicherweise nur geringe positive Umweltwirkungen gegenüber. Die zahlreichen Insolvenzen von Solarunternehmen haben zudem gezeigt, dass der durch die Förderung ausgelöste (Brutto-) Beschäftigungseffekt nicht nachhaltig war. Um eine durch solch eklatante Fehlentwicklungen ausgelöste Abkehr breiter Bevölkerungsschichten von der Energiewende zu verhindern, empfehlen wir, an Stelle des Erneuerbare-Energien-Gesetzes (EEG) ein alternatives Instrument zur kosteneffizienteren Förderung erneuerbarer Energien einzusetzen. Der weitere PV-Ausbau sollte in jedem Fall schnellstmöglich gestoppt werden, anstatt ihn weiterhin - und in Form des Eigenverbrauchs von Solarstrom sogar in zunehmend stärkerem Maße - zu fördern.
    Abstract: In recent years, Germany experienced an unprecedented boom in the production of solar electricity based on photovoltaic (PV). The massive spread of PV-technology among private households was mainly due to the fact that prices for solar panels were profoundly declining while the government guaranteed high-level feed-in tariffs to producers. The result is exploding costs with little to show for either environmental or domestic employment benefits. Indeed, this RWI Position policy paper documents that subsidies for PV, which have to be paid for by German consumers, amount to a total of 111 Bn so far. Moreover, with installed PV-capacities growing at a rapid rate, these costs will continue to accumulate, risking the general public´s support for the exit from nuclear and fossilfuel energy. Instead of further continuing along the path of photovoltaic subsidies, as outlined in the German Renewable Energy Sources Act (EEG), this paper recommends a more cost-effective way towards an energy transition. Current reform efforts regarding the EEG should aim in this direction.
    Date: 2014
  12. By: Alexandra Tsiotras; Antonio Estache
    Abstract: The paper studies the 3-way causal relationships between energy consumption, output and trade for a sample of 15 Latin American countries over the period 1980 to 2010. The results of our panel cointegration and error-correction model based on GMM estimators highlight a unidirectional relationship running from energy use to real GDP (in the short and long run) and from energy use to exports (in the short run). This confirms earlier results for a smaller sample of countries in the region and shows that energy consumption cuts can have significant economic costs. In contrast to earlier results, we find that these conclusions are more robust in the short than in the long run, suggesting that if technological change (in particular energy efficiency improvements) is accounted for, the growth and trade costs of energy consumption cuts should be lower than often feared. Energy efficiency improvements appear to be happening. The case for energy efficiency improvements further increases with the finding that under current technologies, cutting energy consumption would hurt growth more than an import substitution policy.
    Date: 2014–08
  13. By: Lenz, Luciane; Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane
    Abstract: The United Nations' objective to provide electricity to the 1.3 billion people without access in developing countries comes at high costs. Little evidence exists on socioeconomic impacts of electrification. This paper rigorously investigates effects of a large grid extension program in Rwanda on all rural beneficiary groups: households, microenterprises, health centers, and schools. While the program has led to a tremendous increase of connections, appliance uptake and electricity consumption remain low. We find only weak evidence for impacts on classical poverty indicators. To inform future policy design, we call for thorough cost-benefit comparison between on-grid and off-grid solutions.
    Keywords: energy access,difference-in-differences,electrification,mixed-methods,Sub-Saharan Africa
    JEL: O13 O18 Q41
    Date: 2015
  14. By: Barton, J.; Davies, L; Foxon, T.J.; Galloway, S.; Hammond, Geoff; O'Grady, Áine; Robertson, E.; Thomson, M.
    Date: 2013–12
  15. By: Bardt, Hubertus; Schaefer, Thilo
    Abstract: Die internationale Klimakonferenz von Paris stellt einen weiteren Versuch dar, für die Bereitstellung des globalen öffentlichen Guts Klimaschutz die notwendige Kooperation zwischen den verhandelnden Staaten zu organisieren. Dabei geht es im Wesentlichen um die Verteilung der damit verbundenen Lasten. Seit dem Abkommen von Kyoto konnte keine weitere bindende Vereinbarung für den internationalen Klimaschutz getroffen werden. Die Emissionen sind seit den neunziger Jahren nicht etwa zurückgegangen, sondern haben sich deutlich erhöht. In diesem Papier wird eine Lastverteilung zwischen den wichtigsten Industrie- und Schwellenländern vorgeschlagen, die sich am Wohlstand des jeweiligen Landes orientiert, gleichzeitig aber Wachstumsperspektiven berücksichtigt. Insbesondere wird auch die besondere Situation der Schwellenländer berücksichtigt, deren Emissionen in den letzten 20 Jahren massiv gestiegen sind. Die ersten Verhandlungsangebote einzelner Staaten bewegen sich auf einem vergleichbaren Niveau. [...]
    Keywords: Emissionshandel,Erneuerbare Energien,Fossile Energien,Klimapolitik,Klimawandel,Climate Change,Climate Policy,Fossil Fuels,Renewable Energy,Trade in Emissions
    JEL: Q52 Q58 F53
    Date: 2015
  16. By: Silvester Van Koten
    Abstract: Two important caveats are made for applications and empirical tests of Bessembinder and Lemmon's (2002) theoretical risk premium model for forward premia. Firstly, (relative) forward premia (eventually) decrease in mean power demand. Secondly, empirical tests should use a definition of mean power demand in line with Bessembinder and Lemmon's (2002) theory to avoid confounds.
    Keywords: forward premia; electricity markets; energy economics; mean power demand; financial markets;
    JEL: G13 G17 L94 Q41
    Date: 2015–06
  17. By: Frondel, Manuel
    Abstract: Mit dem Ziel, die Treibhausgasemissionen bis zum Jahr 2020 um mindestens 20 Prozent gegenüber dem Niveau von 1990 zu senken, übernahm die Europäische Union (EU) die weltweite Vorreiterrolle bei der Reduzierung des Treibhausgasausstoßes. Doch dieser vermeintlich lobenswerte Vorstoß ist nicht nur ineffizient, er kann für das zu erreichende Ziel sogar kontraproduktiv wirken: Die hohen selbst gesetzten Emissionsminderungsziele begünstigen etwa die Entscheidungen in anderen Ländern, ihre klimapolitischen Anstrengungen zu reduzieren, anstatt diese zu erhöhen. Insbesondere angesichts der hohen Emissionen in China und den USA spielt der Treibhausgasausstoß der EU weltweit nur eine sehr untergeordnete Rolle. Mögliche Alternativen zu ambitionierten einseitigen Emissionsminderungen wären ein weltweites Abkommen zur Erhöhung der Ausgaben für F&E zu Energieumwandlungs- und -speichertechnologien sowie Politikmaßnahmen wie der Bau und die Erhöhung von Deichen als Anpassung an die globale Erwärmung. Von diesen würden die europäischen Länder in erster Linie selbst profitieren und hätten daher ein hohes Eigeninteresse an der Umsetzung.
    Abstract: The European Union (EU) plays a leading role in the reduction of global greenhouse gas emissions. But the EU's cutting-edge status is not only inefficient, it may also be counterproductive, as ambitious emissions reduction targets may encourage other countries to curb their reduction efforts. The EU plays just a minor role in worldwide emission levels in comparison with high emitting countries such as China and the United States. More reasonable alternatives to ambitious unilateral abatement measures are international agreements on raising funds for R&D on energy saving technologies as well as adaptation strategies to global warming from which each country will benefit directly.
    Date: 2014
  18. By: Peters, Jörg; Sievert, Maximiliane
    Abstract: The investment requirements to achieve the United Nations' universal electricity access goal by 2030 are estimated at 640 billion US Dollars. The assumption underlying this goal is that electrification contributes to poverty alleviation in many regards. In recent years, a body of literature has emerged that widely confirms this positive poverty impact assumption. Most of these studies, however, are based on data from Asia and Latin America. This paper challenges the transferability of impact findings in the literature to the African context. Using a unique data set that we collected in various African countries we show that impact expectations on income, education, and health should be discounted considerably for Africa, at least in the shorter run. In many cases, the low levels of electricity consumption can also be served by low-cost solar alternatives. To ensure cost-efficient usage of public investments into rural electrification, we call for careful cost-benefit comparisons of on-grid and off-grid solutions.
    Keywords: energy access,on-grid electrification,off-grid electrification,Africa
    JEL: O33 P46 Q41
    Date: 2015
  19. By: Christian Krekel; Alexander Zerrahn
    Abstract: We investigate the effect of the physical presence of wind turbines on residential wellbeing in Germany, using panel data from the German Socio-Economic Panel (SOEP) and a unique novel panel data set on more than 20,000 wind turbines for the time period between 2000 and 2012. Using a Geographical Information System (GIS), we calculate the proximity between households and the nearest wind turbine as the most important determinant of their disamenities, e.g. visual interference into landscape aesthetics. Our unique novel panel data set on wind turbines, which was collected at the regional level, includes their exact geographical coordinates and construction dates. This allows estimating the causal effect of the physical presence of wind turbines on residential wellbeing, using a difference-in-differences design. To ensure comparability of the treatment and control group, we apply propensity-score and novel spatial matching techniques based on exogenous weather data and geographical locations of residence, respectively. We show that the construction of a wind turbine within a treatment radius of 4,000 metres around households has a significantly negative effect on life satisfaction. For larger treatment radii, no negative externalities can be detected. Moreover, the effect is transitory, vanishing after five years at the latest. As wind turbines are addressed at avoiding negative externalities of local pollutant and global greenhouse gas emissions, they fulfil an important role in the de-carbonization of electricity systems world-wide. Comparing the imposed spatially and temporally limited externalities with the avoided externalitiesfrom emissions, the positive impact of wind turbines is by several magnitudes higher than the negative.
    Keywords: Life satisfaction, social acceptance, wind power, wind turbines, renewables, externalities, SOEP, GIS, spatial analysis
    JEL: C23 Q42 Q51 R20
    Date: 2015
  20. By: Paul J. Burke (Crawford School of Public Policy, The Australian National University, Canberra, ACT, Australia); Hua Liao (Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, China)
    Abstract: ChinaÕs dependence on coal is a major contributor to local and global environmental problems. In this paper we estimate the price elasticity of demand for coal in China using a panel of province-level data for the period 1998Ð2012. We find evidence that provincial coal demand has become increasingly price elastic. As of 2012 we estimate that this elasticity was in the range Ð0.3 to Ð0.7 when responses over two years are considered. The results imply that ChinaÕs coal market is becoming more suited to price-based approaches to reducing emissions. Our estimates suggest that the elimination of coal consumption subsidies could reduce national coal use and related emissions by around 2%.
    Keywords: coal; price elasticity; demand; China; provincial
    JEL: O13 Q41 P28 Q48
    Date: 2015–06
  21. By: Tewathia, Nidhi
    Abstract: Electricity has attained a very important place in every household on this planet. It is a major contributor towards improvement of the standard of living of any individual, family and society at large. The consumer habits constitute an important factor in deciding the electricity consumption. Also, it will help in policy making for the conservation of electricity. The household awareness is also identified by probing in the consumer behaviour. The respondents are the Delji housheolds. Through stratified random sampling, 395 households were selected for collection of data. Likert scale is used to find out the trend in consumer behaviour, awareness and habits of the households. It is found that households need to take conservation steps in order to make judicious use of the electricity. Households are found to have the environmental awareness with respect to electricity consumption and generation but availability of various electrical appliances makes it difficult for the household to stop the electricity wastage.
    Keywords: Delhi; Electricity; Attitude; Awareness; Household
    JEL: D1 D12 Q2 Q5
    Date: 2015–06–06
  22. By: Nhu Che (Crawford School of Public Policy, The Australian National University); Tom Kompas (Crawford School of Public Policy, The Australian National University)
    Abstract: The Asia-Pacific gas market is the biggest and fastest growing LNG market in the world. In the past is has been dominated by the JCC oil linked pricing mechanism. However, given the recent challenges facing this mechanism, especially since 2008, there is a growing concern that the JCC pricing mechanism no longer reflects prevailing market conditions. This paper provides a modelling approach for analysing the structure and dynamics of LNG pricing in the Asia and the Pacific region over the past decades. Econometric estimations for the period of 1989-2014 indicate that the JCC linked mechanism remains important, but its contribution to LNG pricing is becoming less significant. The role of the base price and non-oil linked factors in LNG price formation are instead becoming more important. Applying the econometric results, future LNG prices in the Asia-Pacific are projected for the period of 2015 Ð 40 based on three different scenarios for long term crude oil prices. Over the short term, the LNG price is expected to ease due to decreasing crude oil prices and increasing LNG supply. Over long term, LNG prices are expected to increase due to increasing crude oil prices and LNG demand. Given substantial gas resources, and its advantageous location, AustraliaÕs LNG market has been expanding significantly, with Australian to soon be potentially the largest LNG exporter in the world. Trade liberalisation implies that eastern Australia is most likely to be affected by LNG pricing in the Asia and Pacific region. This paper provides a projection scenario for AustraliaÕs netback prices, which is essential for eastern AustraliaÕs future gas development and LNG export revenues. Export revenue from eastern Australia is projected to increase from about A$8 billion in 2015 to A$24 billion in 2030.
    Keywords: natural gas; liquefied natural gas pricing; JCC pricing mechanism; Asia and the Pacific; LNG export; trade liberalisation; Australia
    Date: 2014–11
  23. By: Frondel, Manuel; Sommer, Stephan
    Abstract: Seit dem Jahr 2000 haben sich die Strompreise für private Haushalte praktisch verdoppelt. Von steigenden Stromkosten sind nicht zuletzt Millionen von armutsgefährdeten Haushalten betroffen. Vor diesem Hintergrund untersucht der vorliegende Beitrag exemplarisch für einige Haushaltstypen mit geringem Einkommen, wie stark ihre Stromkostenbelastung in den vergangenen Jahren relativ zum Einkommen zugenommen hat und in welchem Maße diese Belastung künftig weiter steigen könnte. Nach unseren Abschätzungen auf Basis stilisierter Fakten musste beispielsweise der von uns betrachtete armutsgefährdete alleinstehende Rentner im Jahr 2013 etwa gleich viel für Strom ausgeben wie zur Deckung seines Energiebedarfs zum Heizen und zur Warmwassererzeugung. Es muss davon ausgegangen werden, dass aufgrund des Ausbaus der erneuerbaren Energien die Stromkostenbelastung auch in den nächsten Jahren weiter steigen wird. Damit stellt sich immer drängender die Frage nach Maßnahmen zur Abschwächung der Entwicklung steigender Strompreise und zur sozialen Abfederung ihrer regressiven Wirkungen.
    Keywords: Electricity Costs,Energy Prices,Regressive Consequences
    JEL: Q21 Q41 Q47
    Date: 2014
  24. By: Frank L. Bartels; Bianca Cravenna
    Abstract: The pivotal issue in the current wide-ranging debate on sustainability, economic growth, the environment and Low Carbon Development (LCD) , taking departure from the perspective of “The Limits to Growth”, is managing the global commons (Nordhaus, 1994) in an intergenerational context (Arrow et al., 2013). Jordan and Fortin (2002. p. 366) conclude that biological relationships in ecological systems require maintenance and “thus, sustainability is a scale and topology issue, requiring not just the size of the economy in resource use per capita, but such an ecological value (spatial scarcity, ecological turnover times, inter-generational environmental lags) linked over space and time”. In this paper an overview of the different positions regarding LCD is provided and it is argued that it is necessary for industrialized countries to take action in order to allow sustainable growth.
    Keywords: Innovation, low carbon development, green energy, sustainability, economic growth.
    Date: 2015
  25. By: Christian Dreger; Jarko Fidrmuc; Konstantin Kholodilin; Dirk Ulbricht
    Abstract: The exchange rate fluctuations strongly affect the Russian economy, given its heavy dependence on foreign trade and investment. Since January 2014, the Ruble lost 50% of its value against the US Dollar. The fall of the currency started with the conflict between Russia and Ukraine. The impact of the conflict on Russia may have been amplified by sanctions imposed by Western countries. However, as Russia is heavily dependent on exports of natural resources, the oil price decline starting in Summer 2014 could be another factor behind the deterioration. By using high frequency data on nominal exchange and interest rates, oil prices, actual and unanticipated sanctions, we provide evidence on the driving forces of the Ruble exchange rate. The analysis is based on cointegrated VAR models, where fundamental long-run relationships are implicitly embedded. The results indicate that the bulk of the depreciation can be related to the decline of oil prices. In addition, unanticipated sanctions matter for the conditional volatility of the variables involved.
    Keywords: Military conflict, sanctions, oil prices, Ruble depreciation
    JEL: C22 F31 F51
    Date: 2015
  26. By: Girum D. Abate (Aarhus University and CREATES); Niels Haldrup (Aarhus University and CREATES)
    Abstract: In this paper we derive a space-time model for electricity spot prices. A general spatial Durbin model that incorporates the temporal as well as spatial lags of spot prices is presented. Joint modeling of space-time effects is necessarily important when prices and loads are determined in a network of power exchange areas. We use data from the Nord Pool electricity power exchange area bidding markets. Different spatial weight matrices are considered to capture the structure of the spatial dependence process across different bidding markets and statistical tests show significant spatial dependence in the spot price dynamics. Estimation of the spatial Durbin model show that the spatial lag variable is as important as the temporal lag variable in describing the spot price dynamics. We use the partial derivatives impact approach to decompose the price impacts into direct and indirect effects and we show that price effects transmit to neighboring markets and decline with distance. In order to examine the evolution of the spatial correlation over time, a time varying parameters spot price spatial Durbin model is estimated using recursive estimation. It is found that the spatial correlation within the Nord Pool grid has been increasing over time which we interpret as evidence for an increasing degree of market integration.
    Keywords: Autoregressive, Spatial-Time series, Spatial dependence
    JEL: C32 C33
    Date: 2015–05–07
  27. By: Nhu Che (Crawford School of Public Policy, The Australian National University); Tom Kompas (Crawford School of Public Policy, The Australian National University)
    Abstract: Rapid LNG trade in the eastern region will contribute a significant source of export revenue, or roughly A$20-30 billion per year over the next five years. However, along with a significant gain from LNG trade, major domestic gas users will also face higher gas prices, less security over long term contracts and more uncertainty over gas supplies generally. This paper develops a modelling approach and an applied analysis of the effect of LNG trade in Asia-Pacific region on major eastern Australian domestic gas users over the period 2015Ð30. During the study period, the average Net Present Value of consumer losses (at a discount rate of 5 per cent per year) is estimated to be from A$1.1 to A$1.4 billion per year. Among the major gas-using sectors, losses among the large industry sector are largest, accounting for half of total consumer loss or about A$450 to A$750 million per year. The electricity power sector is estimated to lose about A$194 to A$307 million per year. The losses from residential, commercial and other users is estimated to be about A$248 to A$405 million per year. The consumer loss in the eastern states is ranked (from top-to-bottom) by Queensland, Victoria, New South Wales and South Australia. Losses vary by different major domestic gas users by state.
    Keywords: natural gas; liquefied natural gas pricing; LNG trade; Asia and the Pacific; LNG export; domestic gas use; Australia
    Date: 2014–11
  28. By: Bensch, Gunther; Peters, Jörg
    Abstract: Today 2.6 billion people in developing countries rely on biomass as primary cooking fuel, with profound negative implications for their well-being. Improved biomass cooking stoves are alleged to counteract these adverse effects. This paper evaluates take-up and impacts of low-cost improved stoves through a randomized controlled trial. The randomized stove is primarily designed to curb firewood consumption but not smoke emissions. Nonetheless, we find considerable effects not only on firewood consumption, but also on smoke exposure and smoke-related disease symptoms - induced by behavioural changes at the intensive margin affecting outside cooking and cooking time due to the new stove.
    Abstract: Fast drei Milliarden Menschen in Entwicklungsländern kochen auf traditionelle Art und Weise mit Biomasse. Damit einhergehende Folgen sind unter anderem eine verstärkte Abholzung der Wälder und eine ausgeprägte Rauchpartikelbelastung der Haushalte. Kochöfen, die eine effizientere und sauberere Verbrennung ermöglichen, gelten als probates Mittel, negativen Effekten auf die Lebensbedingungen der betroffenen Bevölkerung entgegenzuwirken und den Holzverbrauch zu reduzieren. Dieser Beitrag untersucht die Einführung und in der Folge auftretende Wirkungen von verbesserten und zugleich einfachen Kochöfen anhand einer randomisierten kontrollierten Studie im ländlichen Senegal. Der untersuchte Ofen ist in erster Linie dazu konzipiert den Feuerholzverbrauch zu reduzieren und günstig lokal herstellbar zu sein. Jedoch lassen sich auch erhebliche positive Gesundheitswirkungen nachweisen, die einer geringeren Rauchbelastung zugeschrieben werden, welche wiederum auf Verhaltensänderungen zurückzuführen ist: Haushalte kochen vermehrt im Freien und Köche verbringen deutlich weniger Zeit an der Feuerstelle. Diese Beobachtungen liefern weitere Evidenz dafür, dass die Effektivität von technologieorientierten Interventionen stark von dem Verhalten, wie die neue Technologie genutzt wird, beeinflusst werden kann.
    Keywords: impact evaluation,randomized controlled trial,respiratory disease symptoms,energy access,technology adoption
    JEL: C93 O12 O13 Q53 Q56
    Date: 2014
  29. By: Diana Apostol (Alexandru Ioan Cuza University, Romania); Cristina Bălăceanu (Dimitrie Cantemir Christian University, Romania); Eleonora Mihaela Constantinescu (Dimitrie Cantemir Christian University, Romania)
    Abstract: The main question regards the functioning of development in the terms of quality consists in extending inclusion and generating efficient allotment of separating the productive act from consuming energy, nonrenewable resources, desertification and unsustainable emissions. All these actions seem to restrict economy and its capacity of contributing to the reduction of inequalities. What remains central and problematic is the attempt to satisfy the needs of the present without prejudicing the future generation’s capacity of equally covering their needs (Brundtland Commission 1987). There is no species of sustainability that could harmonize the economists and ecologists’ theories regarding development; at the same time, ecologists and economists continue to disagree regarding the manner in which they understand to approach the issues of growth, development and sustainability.
    Keywords: smart economy, sustainable, economic growth, economic degrowth, quality of live
    JEL: I30 I31
    Date: 2015–05
  30. By: Grimm, Michael; Peters, Jörg
    Abstract: Local beer breweries in Burkina Faso absorb a considerable amount of urban woodfuel demand. We assess the woodfuel savings caused by the adoption of improved brewing stoves by these micro-breweries and estimate the implied welfare effects through the woodfuel market on private households as well as the environmental effect. We find substantial wood savings among the breweries and, subsequently, huge welfare gains for households and reductions in CO2-emissions. Since woodfuel is predominantly used for cooking by the poorer strata, the intervention under study is an example for a green growth intervention with pro-poor welfare gains - something green growth strategies should look for.
    Abstract: Ein erheblicher Teil der städtischen Nachfrage nach Holzbrennstoffen in Burkina Faso ist auf lokale Bierbrauereien zurückzuführen. In einem ersten Schritt untersuchen wir die Brennholzeinsparungen, die durch die Nutzung verbesserter Herde im Brauprozess der lokalen Kleinbrauereien erzielt werden können. Im nächsten Schritt schätzen wir die Effekte möglicher Ersparnisse auf die Wohlfahrt privater Haushalte über den Brennholzmarkt und die Umweltauswirkungen. Wir finden eine substanzielle Reduzierung des Brennholzkonsums der Kleinbrauereien und daraus folgend erhebliche Wohlfahrtsgewinne privater Haushalte und einen Rückgang von CO2-Emissionen. Da Brennholz überwiegend von armen Bevölkerungsschichten zum Kochen genutzt wird, ist die betrachtete Politikmaßnahme zur Reduzierung des Holzverbrauchs ein Beispiel dafür, dass Interventionen zugleich umweltfreundliches Wachstum induzieren und Armut reduzieren können - eine Kombination, die so genannte Green Growth-Strategien anstreben sollten.
    Keywords: Burkina Faso,demand for woodfuel,green growth,impact evaluation,improved stoves,technology adoption
    JEL: D2 D6 I3 O3
    Date: 2015
  31. By: Troug, Haytem Ahmed; Sbia, Rashid
    Abstract: This paper aims at providing empirical support to claims made by officials in oil-producing countries that investors in the New York stock Exchange market are involved in the disruption of oil production in some OPEC countries. The claims state that some investors in the NYSE are financing militias in those countries to close down oilfields and ports, and buy oil before this incident occurs. By doing so, they have access to information that no one else in the market has, and make profits from this information. Using a VAR model approach to detect this phenomenon, and being inspired by the asymmetric information theory, we fail to support those claims. We tried to put this theory under investigation by running test on three oil disruption incidents that occurred in 2013, and all of the results turned out to be insignificant. Nevertheless, this approach was able to detect a period which might involve asymmetric information in the NYSE. In addition, using a VAR model enabled us to measure the duration and magnitude of the effect of a shock in volumes of trade on oil prices in that market.
    Keywords: stock Exchange market,OPEC countries, NYSE, Asymmetric Information, Oil Market
    JEL: C50 C58 G02 G14
    Date: 2015
  32. By: Andor, Mark A.; Frondel, Manuel; Sommer, Stephan
    Abstract: In the light of persistently low prices for allowances, there is much debate about reforming the EU emissions trading system. Based on a proposal of the European Commission, the EU plans to introduce the so called Market Stability Reserve in 2019: a mechanism that regulates the amount of allowances within the market by temporarily taking some of the allowances into a reserve. The Commission thereby aims at reducing the surplus and securing a higher market price for allowances. An alternative reform proposal is the introduction of a minimum price. This RWI position puts forward a third alternative: retaining the emissions trading system in its original form and reducing the surplus by a one-time adjustment. In 2014, 900 million allowances from the years 2014 to 2016 were back-loaded to be auctioned in the years 2019 and 2020. Instead, these allowances should be deleted. Furthermore, if necessary, the amount of allowances could be constantly decreased by reducing the cap more strongly than planned. Compared with the other reform options, retaining the emissions trading system in its original form has two major advantages: first, politically driven interventions are minimized and, second, free market prices exhibit a stabilizing effect for fluctuations caused by the business cycle.
    Date: 2015
  33. By: Narodoslawsky, Michael
    Abstract: Although it is still not warranted to speak about the end of the fossil age, we certainly witness a trend towards renewable sources for energy and material. Properties of bio-resources however differ vastly from fossil as well as other renewable resources. They are storable, mainly de-central in their provision, have usually weak logistic properties and face severe competition from various sectors, in particular from the vital food sector. A stronger reliance on bio-resources to support the European energy system as well as to provide raw materials for conversion to material products therefore raises technical, societal and environmental issues that have to be resolved if a bio-economy is to become a viable development pathway.
    Keywords: bio-economy, bio-resource-utilisation, strong-sustainability
    Date: 2014–12–15
  34. By: Comello, Stephen D. (Steyer-Taylor Center for Energy Policy and Finance, Stanford University); Reichelstein, Stefan J. (Steyer-Taylor Center for Energy Policy and Finance, Stanford University)
    Abstract: The federal Investment Tax Credit (ITC) for solar installations is scheduled to step-down from 30% to 10% at the beginning of 2017 for corporate investors. This raises the question whether solar PV will be cost competitive post 2016 in the U.S. We examine the economics of solar PV for a sample of U.S. states and industry segments. Our model calculations indicate that for almost all of these settings the anticipated ITC step-down would render solar PV uncompetitive by early 2017, raising the specter of a 'cliff' for the solar industry. We identify and evaluate an alternative phase-down scenario that would reduce the ITC gradually and eliminate it completely by 2024. Provided the solar industry can maintain the pace of cost reductions demonstrated in past years, our projections indicated that solar PV would remain broadly competitive, even as federal tax support would be gradually diminished, and ultimately eliminated, under the alternative phase-down-scenario.
    Date: 2015–04
  35. By: Simon Levin; Anastasios Xepapadeas
    Abstract: We seek to explain the emergence of spatial heterogeneity regarding development and pollution on the basis of interactions associated with the movement of capital and polluting activities from one economy to another. We use a simple dynamical model describing capital accumulation along the lines of a xed-savings-ratio Solow-type model capable of producing endogenous growth and convergence behavior, and pollution accumulation in each country with pollution diffusion between countries or regions. The basic mechanism underlying the movements of capital across space is the quest for locations where the marginal productivity of capital is relatively higher than the productivity at the location of origin. The notion that capital moves to locations of relatively higher productivity but not necessarily from locations of high concentration to locations of low concentration, does not face difficulties associated with the Lucas paradox. We show that, for a wide range of capital and pollution rates of flow, spatial heterogeneity emerges even between two economies with identical fundamental structures. These results can be interpreted as suggesting that the neoclassical convergence hypothesis might not hold under differential rates of flow of capital and polluting activities among countries of the same fundamental structure.
    Keywords: Transboundary flows, Capital, Pollution, Diffusion, Turing instability, Spatial heterogeneity
    JEL: O44 R12 Q52 C65
    Date: 2015–06–07
  36. By: Bensch, Gunther; Grimm, Michael; Peters, Jörg
    Abstract: Around 3 billion people in developing countries rely on woodfuels for their daily cooking needs with profound negative implications for their workload, health, and budget as well as the environment. Improved cookstove (ICS) technologies in many cases appear to be an obvious solution. Despite continuous efforts of the international community to disseminate ICS, take up rates in most developing countries are strikingly low. In this paper, we examine the reasons for (non-)adoption of a very simple ICS in urban Burkina Faso. As a first result, we find that ICS users save between 20 and 30 percent of fuels compared to traditional stoves making the investment a very profitable one. Nonetheless, adoption rates are low at a mere 10 percent. It turns out that the major deterrent of adoption are the upfront investment costs - which are much more important than access to information, taste preferences, or the woman's role in the household. These findings suggest that more direct promotion strategies such as subsidies would help the household to overcome its liquidity constraints and hence improve adoption rates.
    Abstract: Rund 3 Milliarden Menschen in Entwicklungsländern sind für ihre täglichen Kochbedürfnisse auf Holzbrennstoffe angewiesen. Dies geht einher mit tiefgreifenden negativen Auswirkungen auf individueller Ebene - insbesondere Arbeitsbelastung, Gesundheit und Haushaltsbudget - sowie auf die Umwelt. Verbesserte Herd-Technologien werden vielfach als eine offensichtliche Lösung dieser Problematik angesehen. Trotz beträchtlicher Anstrengungen der internationalen Gemeinschaft verbesserte Kochherden zu vermarkten, sind Verbreitungsquoten in den meisten Entwicklungsländern auffallend gering. In diesem Beitrag werden anhand von Daten aus dem städtischen Burkina Faso mögliche Gründe untersucht, die Haushalte dazu bewegen oder davon abhalten, sich einen verbesserten Kochherd anzuschaffen. Ein erstes Ergebnis der Studie ist es, dass die untersuchten Öfen zwischen 20 und 30 Prozent an Kochbrennstoffen im Vergleich zu herkömmlichen Öfen einsparen. Dies hat zur Folge, dass sich der Kauf des Herdes für einen Großteil der Haushalte bereits nach weniger als drei Monaten rentiert. Dennoch verfügen nur 10 Prozent der Haushalte in den Untersuchungsregionen über einen solchen Herd. Eine weiterführende Analyse ergibt, dass die Anfangsinvestitionen in den Kochofen das wohl größte Hindernis darstellt und sich damit als bedeutend wichtiger erweist als der Zugang zu Informationen über verbesserte Kochtechnologien, Geschmackspräferenzen oder die Rolle der Frau im Haushalt. Diese Ergebnisse legen nahe, dass direktere Förderstrategien wie nachhaltige Subventionsmechanismen bei der Überwindung von Liquiditätsengpässe helfen und damit die Verbreitung verbesserter Kochherde befördern würden.
    Keywords: household technology adoption,liquidity constraints,weak beliefs,norms and traditions,energy access,Sub-Saharan Africa
    JEL: D01 D12 D80 O33 Q56
    Date: 2014
  37. By: Andor, Mark A.; Frondel, Manuel; Vance, Colin
    Abstract: The overestimation of willingness-to-pay (WTP) in hypothetical responses is a wellknown finding in the literature. Various techniques have been proposed to remove or, at least, reduce this bias. Using responses from a panel of about 6,500 German households on their WTP for a variety of power mixes, this article undertakes an analysis that combines two common ex-ante approaches - cheap talk and consequential script - with the ex-post certainty approach to calibrating hypothetical WTP responses. Based on a switching regression model that accounts for the potential endogeneity of respondent certainty, we find that while neither the cheap-talk nor the consequential script corrective bears on the estimates of WTP, there is evidence for a lower WTP among those respondents who classify themselves as definitely certain about their answers.
    Abstract: Die Überschätzung von Zahlungsbereitschaften in hypothetischen Befragungssituationen ist ein in der Literatur wohlbekanntes Phänomen. Um diese Verzerrungen zu verhindern oder zumindest zu reduzieren, wurden verschiedene Ansätze vorgeschlagen, darunter die Cheap Talk und Consequential Script genannten Ex-Ante Ansätze sowie ein als Sicherheits-Ansatz bezeichnetes Ex-Post-Korrektiv. Auf Grundlage einer Befragung von etwa 6.500 deutschen Haushalten zu ihrer Zahlungsbereitschaft für verschiedene Strommixe analysiert dieser Artikel die Effektivität dieser Korrektive. Basierend auf einem Switching-Regression-Model, welches die potenzielle Endogenität der Sicherheit der Befragten berücksichtigt, finden wir empirische Evidenz dafür, dass sich weder Cheap Talk noch der Consequential-Script Ansatz auf die geschätzten Zahlungsbereitschaften auswirkt. Es findet sich jedoch eine geringere Zahlungsbereitschaft unter solchen Antwortenden, die sich selbst als ganz sicher in Bezug auf ihre Antworten einstufen.
    Keywords: willingness-to-pay,cheap talk,certainty approach
    JEL: D12 Q21 Q41
    Date: 2014
  38. By: Andor, Mark; Frondel, Manuel; Sommer, Stephan
    Abstract: Die seit Jahren niedrigen Zertifikatspreise werden häufig als Begründung dafür angeführt, dass der EU-Emissionshandel reformiert werden muss. Politisch favorisiert wird aktuell die so genannte Marktstabilitätsreserve: ein regelbasierter Mechanismus, nach dem die Menge an Emissionsberechtigungen gesteuert wird. Alternative Reformvorschläge sind die Einführung einer Mindestpreisregelung sowie die Anpassung von Rahmenbedingungen im bestehenden System. Nach Evaluierung der drei Reformoptionen kommt diese RWI Position zu dem Schluss, dass es die beste Lösung wäre, den Emissionshandel möglichst in seiner Reinform zu belassen. Fehler aus der Vergangenheit könnten durch einen einmalig erfolgenden Eingriff beseitigt werden: die Löschung der 900 Millionen Zertifikate, die im Jahr 2014 aus dem Markt genommen wurden und in den Jahren 2019 und 2020 wieder auf den Markt gelangen sollen. Ist es politisch gewollt, könnte zusätzlich die künftige Emissionsobergrenze stärker abgesenkt werden als bisher vorgesehen. Entscheidender Vorteil des Emissionshandels in Reinform wäre, dass er nicht so stark politisch motivierten Eingriffen ausgeliefert ist wie die beiden anderen Reformvorschläge und zudem konjunkturstabilisierend wirkt.
    Abstract: In the light of persistently low prices for allowances, there is much debate about reforming the EU emissions trading system. The European commission proposes the establishment of a so called market stability reserve: a mechanism that regulates the amount of allowances within the market by temporarily taking some of the allowances into a reserve. The commission thereby aims at reducing the surplus and securing a higher market price for allowances. An alternative reform proposal is the introduction of a minimum price. This RWI position puts forward a third alternative: retaining the emissions trading system in its original form and reducing the surplus by a one-time adjustment. In 2014, 900 million allowances from the years 2014 to 2016 were back-loaded to be auctioned in the years 2019 and 2020. Instead, these allowances should be deleted. Furthermore, if necessary, the amount of allowances could be constantly decreased by reducing the cap more strongly than planned. Compared with the other reform options, retaining the emissions trading system in its original form has two major advantages: first, politically driven interventions are minimized and, second, free market prices exhibit a stabilizing effect for fluctuations caused by the business cycle.
    Date: 2015
  39. By: Iimi,Atsushi; Humphrey,Richard Martin; Melibaeva,Sevara
    Abstract: Infrastructure is an important driving force for economic growth. It reduces trade and transaction costs and stimulates the productivity of the economy. Africa has been lagging behind in the global manufacturing market. Among others, infrastructure is an important constraint in many African countries. Using firm-level data for East Africa, the paper reexamines the relationship between firm performance and infrastructure. It is shown that labor costs are by far the most important to stimulate firm production. Among the infrastructure sectors, electricity costs have the highest output elasticity, followed by transport costs. In addition, the paper shows that the quality of infrastructure is important to increase firm production. In particular, quality transport infrastructure seems to be essential. The paper also finds that agglomeration economies can reduce firm costs. The agglomeration elasticity is estimated at 0.03?0.04.
    Keywords: Transport Economics Policy&Planning,E-Business,Energy Production and Transportation,Economic Theory&Research,Infrastructure Economics
    Date: 2015–05–29
  40. By: Bollinger, Bryan (Duke University); Hartmann, Wesley R. (Stanford University)
    Abstract: A fixed cost investment in home automation technology can eliminate consumers' marginal costs of responding to changing demand conditions. We estimate the welfare effects of a home automation technology using a field experiment run by a large electric utility that randomly assigned both a technology and price treatment. Average treatment effects reveal that the home automation technology reduces demand more than twice as much as an alternative technology that only informs consumers of price changes. Furthermore, the average demand reductions during critical price events provide sufficient supply-side welfare gains to fully offset the installation costs of the device. Finally, we estimate household-specific treatment effects by matching households on their pre-treatment policy functions. This demonstrates the additional surplus gained by the utility if it targeted these treatments to households with the largest estimated demand responses.
    Date: 2015–03
  41. By: Marius Bulearca (CEIS-INCE, Romanian Academy, Bucharest, Romania); Cristian Sima (CEIS-INCE, Romanian Academy, Bucharest, Romania)
    Abstract: The extractive industry is unanimously acknowledged as being a vital sector of any country which owns workable natural resources. The experts claim that this industry is a source of foreign income, of direct foreign investments and it is also the main and sometimes the only energy provider of a country. The activities carried out within the extractive industry of any country provide employment to population and contribute to the public budget by taxes and dues, while the incomes resulted from these activities can be directed towards charity; however, at the same time, there is a certain environmental risk related to each initiative that is being carried out in this industry.
    Keywords: extractive industry, non-renewable resources, environment, impact, sustainable energetic development
    JEL: Q32 Q56
    Date: 2015–05
  42. By: Wächter, Petra
    Abstract: Klimawandel und Energiekrise sind zwei Schlagworte, die den umwelt- und gesellschaftspolitischen Diskurs dominieren. Das heutige Energiesystem basiert auf dem Verbrennen fossiler Energietra¨ger, wobei große Mengen an Kohlendioxid (CO2) emittiert werden, die in Folge durch den Treibhauseffekt weitreichende Klimavera¨nderungen hervorrufen. O¨sterreich bewegt sich wie viele andere Industriestaaten bei der Nutzung fossiler Brennstoffe auf einem Niveau fernab von den Zielen der Nachhaltigkeit. Obwohl in der Energieproduktion der Anteil erneuerbarer Energieressourcen laufend steigt und Energieeffizienzmaßnahmen in allen Wirtschaftssektoren vermehrt zum Einsatz kommen, reichen die jetzigen Bemu¨hungen nicht aus, um das o¨sterreichische Energiesystem auf einen klimafreundlichen Pfad zu bringen. Anhand der Ergebnisse einer CO2-Vermeidungskostenkurve fu¨r O¨sterreich wird gezeigt, dass das Potenzial der vorhandenen Mo¨glichkeiten mit Energie effizienter umzugehen, bei weitem nicht ausgescho¨pft wird und im Anschluss werden die Gru¨nde dafu¨r diskutiert. Des Weiteren wird na¨her auf die Rolle der Raumplanung fu¨r ein nachhaltiges Energiesystem eingegangen. Im Bereich der erneuerbaren Energietra¨ger, der Regional- und Siedlungsstrukturen und vera¨nderter Werte und Rollenbilder wird ero¨rtert, welche Weichen in der Raumplanung eine nachhaltigere Energienutzung bewirken ko¨nnen. Der Beitrag zeigt, dass es noch viele ungenutzte Potenziale sowohl beim Einsatz von erneuerbaren Energietra¨gern und bei Energieeffizienzmaßnahmen wie auch bei politischen und institutionellen Vera¨nderungen gibt.
    Keywords: energieeffizienz, co2-vermeidungskostenkurve, transformation-des-energiesystems, raumplanung
    Date: 2013–12–31
  43. By: Andor, Mark A.; Frondel, Manuel; Vance, Colin
    Abstract: Die Überschätzung der Zahlungsbereitschaft in rein hypothetischen Entscheidungssituationen ist ein in der Literatur wohlbekanntes Phänomen. Zur Eliminierung dieser Verzerrung wurden verschiedene Methoden vorgeschlagen, unter anderem der sogenannte Cheap-Talk-Ansatz und das Consequential-Skript. Auf Basis einer Erhebung unter mehr als 6.500 deutschen Haushalten untersucht dieser Beitrag die Effektivität dieser Korrektive. Nach unseren ökonometrischen Ergebnissen erweist sich allein Cheap Talk als effektiv, senkt jedoch die Zahlungsbereitschaft für grünen Strom nur bei jenen Befragten, die sich nicht ganz sicher hinsichtlich ihrer Angaben zur Zahlungsbereitschaft sind. Darüber hinaus zeigen unsere Befragungsergebnisse einen starken Kontrast zwischen der Unterstützung für erneuerbare Energien und der Zahlungsbereitschaft für grünen Strom. So sprechen sich 85,1% der Antwortenden für die Förderung erneuerbarer Energietechnologien aus, aber nur knapp die Hälfte der Antwortenden ist bereit, für grünen Strom zusätzliche Kosten in Kauf zu nehmen.
    Keywords: willingness-to-pay,cheap talk,consequential script
    JEL: D12 Q21 Q41
    Date: 2014
  44. By: Andor, Mark Andreas; Frondel, Manuel; Sommer, Stephan
    Abstract: Die seit Jahren niedrigen Zertifikatpreise werden häufig als Begründung dafür angeführt, dass eine Reformierung des EU-Emissionshandels zwingend notwendig wäre. Der von der Europäischen Kommission favorisierte Reformvorschlag ist die Marktstabilitätsreserve. Dies ist ein regelbasierter Mechanismus, über den die Menge an Emissionsberechtigungen gesteuert werden kann. Davon erhofft sich die Kommission die mittel- bis langfristige Stabilisierung des Zertifikatpreises auf einem höheren als dem gegenwärtigen Niveau. Alternative Vorschläge sind die Einführung einer Mindestpreisregelung oder eines Preiskorridors. In diesem Beitrag erörtern wir, warum es empfehlenswert wäre, den Emissionshandel möglichst in seiner Reinform zu belassen, anstatt ihn durch eine Mindestpreisregelung, einen Preiskorridor oder eine Marktstabilitätsreserve zu ergänzen. Fehler aus der Vergangenheit sollten durch einen einmalig erfolgenden Eingriff beseitigt werden: durch die Löschung der 900 Millionen Zertifikate, die im Jahr 2014 aus dem Markt genommen wurden und in Zukunft wieder auf den Markt gelangen sollen. Ist es politisch gewollt, könnte zusätzlich die künftige Emissionsobergrenze stärker abgesenkt werden, als bisher vorgesehen. Entscheidender Vorteil des Emissionshandels in Reinform ist, dass er nicht so stark politisch motivierten Eingriffen ausgeliefert ist wie die anderen Reformvorschläge und zudem konjunkturstabilisierend wirkt.
    Keywords: Emissionssteuer,Emissionsobergrenzen,Emissionszertifikate
    JEL: Q50 Q58
    Date: 2014

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