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on Energy Economics |
| By: | Matthew E. Kahn; Nils Kok; Peng Liu |
| Abstract: | California’s per-capita electricity consumption is 50 percent lower than national per-capita consumption. Mild climate, deindustrialization, and its demographics explain part of this differential. California energy efficiency policy is often claimed to be another key factor. A challenge in judging this claim is the heterogeneity of the real estate capital stock. Residential homes differ along a large number of physical attributes. We access a proprietary dataset from a large hotel chain that allows us to evaluate the environmental performance of comparable commercial real estate across the United States. Controlling for climate conditions and geographic location, we document that California’s commercial real estate stock is the most energy efficient at a point in time but this differential is quantitatively small. However, over the years 2007 to 2013, California’s hotels achieved much greater energy efficiency progress than hotels in other states. |
| JEL: | Q41 Q48 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21912&r=ene |
| By: | Meier, Helena (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Tode, Christian (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Governments worldwide spend increasing amounts of money on policy schemes to reduce energy consumption and related carbon emissions. We investigate the actual treatment effect of energy efficiency measures and therein compare actual demand responses to technological potentials. Based on a demand system analysis of household data and by approximating unobserved energy awareness, we find economic and behavioural responses that counteract expected savings from energy efficiency. Results show strong rebound and even backfiring effects but also suggest heterogeneity of the effectiveness driven by behavioural concepts, such as sunk cost fallacy or habit formation. Understanding these can contribute to target-oriented policy designs and increased effectiveness and efficiency of policies. |
| Keywords: | Policy evaluation; household demand; unobserved heterogeneity; energy efficiency; |
| JEL: | C21 D12 Q58 |
| Date: | 2015–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_004&r=ene |
| By: | Feser, Daniel; Bizer, Kilian; Rudolph-Cleff, Annette; Schulze, Joachim |
| Abstract: | During recent international climate negotiations like in Paris 2015, the European Union agreed to reduce the emissions of greenhouse gases. Policy-makers target the residential sector as a major user of fossil energy because potential to improve the energy efficiency in existing houses is observable. Energy audits have been implemented to offer information to homeowners within the aim of reducing the uncertainty concerning energetic refurbishment. Nevertheless, the impact of energy efficiency consultants (EECs) on retrofit measures is described as low in the literature. We conducted an online survey on German EECs, emphasizing their personal attitudes and contextual conditions, analyzing the implementation of an exploratory energy audit and providing recommendations for improving energy audits. The EECs answered the questions regarding the personal factors in a highly confident way. We explain this using the market framework in Germany, which requires a high-level performance due to the competition on the EEC market. The contextual conditions are evaluated critically, with about 49% expressing concerns about acquiring and managing financial resources for energy audits. The case study showed that EECs recommend innovative technologies to a limited degree, while the upfront costs are estimated very low. Finally, in the survey, the respondents prioritized an information policy improvement. |
| Keywords: | energy audits,change agents,energy policy,diffusion of innovation |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:275&r=ene |
| By: | Acemoglu, Daron; Akcigit, Ufuk; Hanley, Douglas; Kerr, William R. |
| Abstract: | We develop a microeconomic model of endogenous growth where clean and dirty technologies compete in production and innovation–in the sense that research can be directed to either clean or dirty technologies. If dirty technologies are more advanced to start with, the potential transition to clean technology can be difficult both because clean research must climb several rungs to catch up with dirty technology and because this gap discourages research effort directed towards clean technologies. Carbon taxes and research subsidies may nonetheless encourage production and innovation in clean technologies, though the transition will typically be slow. We characterize certain general properties of the transition path from dirty to clean technology. We then estimate the model using a combination of regression analysis on the relationship between R&D and patents, and simulated method of moments using microdata on employment, production, R&D, firm growth, entry and exit from the US energy sector. The model’s quantitative implications match a range of moments not targeted in the estimation quite well. We then characterize the optimal policy path implied by the model and our estimates. Optimal policy makes heavy use of research subsidies as well as carbon taxes. We use the model to evaluate the welfare consequences of a range of alternative policies. |
| Keywords: | carbon cycle, directed technological change, environment, innovation, optimal policy |
| JEL: | O30 O31 O33 C65 |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:urn:nbn:fi:bof-201512101465&r=ene |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei and CMCC); Giacomo Marangoni (Fondazione Eni Enrico Mattei, CMCC and Politecnico di Milano); Emanuele Borgonovo (Bocconi University); Laura Diaz Anadon (Harvard Kennedy School, Harvard University); Robert Barron (University of Massachusetts Amherst); Haewon C. McJeon (Pacific Northwest National Laboratory, JGCRI); Savvas Politis (Brookhaven National Laboratory); Paul Friley (Brookhaven National Laboratory) |
| Abstract: | In the present paper we use the output of multiple expert elicitation surveys on the future cost of key low-carbon technologies and use it as input of three Integrated Assessment models, GCAM, MARKAL_US and WITCH. By means of a large set of simulations we aim to assess the implications of these subjective distributions of technological costs over key model outputs. We are able to detect what sources of technology uncertainty are more influential, how this differs across models, and whether and how results are affected by the time horizon, the metric considered or the stringency of the climate policy. In unconstrained emission scenarios, within the range of future technology performances considered in the present analysis, the cost of nuclear energy is shown to dominate all others in affecting future emissions. Climate-constrained scenarios, stress the relevance, in addition to that of nuclear energy, of biofuels, as they represent the main source of decarbonization of the transportation sector and bioenergy, since the latter can be coupled with Carbon Capture and Storage (CCS) to produce negative emissions. |
| Keywords: | Sensitivity Analysis, Integrated Assessment models, Expert elicitation, Technology Cost |
| JEL: | O30 O33 Q41 Q50 Q55 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.98&r=ene |
| By: | Chia-Lin Chang (National Chung Hsing University, Taichung, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands; Complutense University of Madrid, Spain); Yu-Ann Wang (National Chung Hsing University, Taichung, Taiwan) |
| Abstract: | The recent and rapidly growing interest in biofuel as a green energy source has raised concerns about its impact on the prices, returns and volatility of related agricultural commodities. Analyzing the spillover effects on agricultural commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and agricultural commodities. There have been many papers concerned with analyzing crude oil and agricultural commodities separately. The purpose of this paper is to examine the volatility spillovers for spot and futures returns on bio-ethanol and related agricultural commodities, specifically corn and sugarcane, using the multivariate diagonal BEKK conditional volatility model. The daily data used are from 31 October 2005 to 14 January 2015. The empirical results show that in 2 of 6 cases for the spot market, there were significant negative co-volatility spillover effects, specifically corn on subsequent sugarcane co-volatility with corn, and sugarcane on subsequent corn co-volatility with sugarcane. In the other 4 cases, there are no significant co-volatility spillover effects. There are significant positive co-volatility spillover effects in all 6 cases, namely between corn and sugarcane, corn and ethanol, and sugarcane and ethanol, and vice-versa, for each of the three pairs of commodities. It is clear that the futures prices of bio-ethanol and the two agricultural commodities, corn and sugarcane, have stronger co-volatility spillovers than their spot price counterparts. These empirical results suggest that the bio-ethanol and agricultural commodities should be considered as viable futures products in financial portfolios for risk management. |
| Keywords: | Biofuel; spot prices; futures prices; returns; volatility; risk; co-risk; bio-ethanol; corn; sugarcane; diagonal BEKK model; co-volatility spillover effects; hedging; risk management |
| JEL: | C32 C58 G13 G15 Q14 Q42 |
| Date: | 2016–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20160014&r=ene |
| By: | Santiago J. Rubio (Department of Economic Analysis and ERI-CES, University of Valencia) |
| Abstract: | This paper examines international cooperation on technological development as an alternative to international cooperation on GHG emission reductions. In order to analyze the scope of cooperation, a three-stage technology agreement formation game is solved. First, countries decide whether or not to sign up to the agreement. Then, in the second stage, the signatories (playing together) and the non-signatories (playing individually) select their investment in R&D. In this stage, it is assumed that the signatories not only coordinate their levels of R&D investment but also pool their R&D efforts to fully internalize the spillovers of their investment in innovation. Finally, in the third stage, each country decides non-cooperatively upon its level of energy production. Emissions depend on the decisions made regarding investment and production. If a country decides to develop a breakthrough technology in the second stage, its emissions will be zero in the third stage. For linear environmental damages and quadratic investment costs, the grand coalition is stable if marginal damages are large enough to justify the development of a breakthrough technology that eliminates emissions completely, and if technology spillovers are not very important. |
| Keywords: | International Environmental Agreements, R&D Investment, Technology Spillovers, Breakthrough Technologies |
| JEL: | D74 F53 H41 Q54 Q55 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.02&r=ene |
| By: | Chang, C-L.; McAleer, M.J.; Wang, Y-A. |
| Abstract: | The recent and rapidly growing interest in biofuel as a green energy source has raised concerns about its impact on the prices, returns and volatility of related agricultural commodities. Analyzing the spillover effects on agricultural commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and agricultural commodities. There have been many papers concerned with analyzing crude oil and agricultural commodities separately. The purpose of this paper is to examine the volatility spillovers for spot and futures returns on bio-ethanol and related agricultural commodities, specifically corn and sugarcane, using the multivariate diagonal BEKK conditional volatility model. The daily data used are from 31 October 2005 to 14 January 2015. The empirical results show that in 2 of 6 cases for the spot market, there were significant negative co-volatility spillover effects, specifically corn on subsequent sugarcane co-volatility with corn, and sugarcane on subsequent corn co-volatility with sugarcane. In the other 4 cases, there are no significant co-volatility spillover effects. There are significant positive co-volatility spillover effects in all 6 cases, namely between corn and sugarcane, corn and ethanol, and sugarcane and ethanol, and vice-versa, for each of the three pairs of commodities. It is clear that the futures prices of bio-ethanol and the two agricultural commodities, corn and sugarcane, have stronger co- volatility spillovers than their spot price counterparts. These empirical results suggest that the bio-ethanol and agricultural commodities should be considered as viable futures products in financial portfolios for risk management. |
| Keywords: | Biofuel, spot prices, futures prices, returns, volatility, risk, co-risk, bio-ethanol, corn, sugarcane, diagonal BEKK model, co-volatility spillover effects, hedging, risk management |
| JEL: | C32 C58 G13 G15 Q14 Q42 |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:79923&r=ene |
| By: | Andrea Bastianin (University of Milan and FEEM); Marzio Galeotti (University of Milan and IEFE-Bocconi); Matteo Manera (University of Milan-Bicocca and FEEM) |
| Abstract: | The security of energy supply is a key geopolitical factor in the relationship between the European Union and the southern neighborhood countries of the Middle East and North Africa region. We study the response of eight Mediterranean economies to exogenous oil supply shocks. We focus on the effects on economic activity - as measured by real Gross Value Added - for the whole economy, as well as for selected industries. We show that there are clear patterns characterizing the response of different economies to an unexpected reduction in global oil production. The main determinants of these patterns are the degree of energy intensity and energy dependence of the country, as well as the composition of its Gross Value Added. |
| Keywords: | Oil Supply Shocks, Mediterranean, Growth |
| JEL: | C22 E32 Q43 Q41 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.100&r=ene |
| By: | Giovanni Marin (IRCrES-CNR and SEEDS); Alessandro Palma (IEFE Bocconi – Centre for Research on Energy and Environmental Economics and Policy and SEEDS) |
| Abstract: | Traditional large appliances absorb a large share of residential electricity consumption and represent important targets of energy policy strategies aimed at achieving energy security. Despite being characterized by rather mature technologies, this group of appliances still offers large potential in terms of efficiency gains due to their pervasive diffusion. In this paper we analyse the electricity consumption of a set of four traditional ‘white goods’ in a panel of ten EU countries observed over 21 years (1990-2010), with the aim of disentangling the amount of technical efficiency from the overall energy saving. The technical efficiency trend is modelled through a set of technology components representing both the invention and adoption process by means of specific patents weighted by production and bilateral import flows, which allows to overcome the rigid Stochastic Frontier framework in modelling the effect of technical change. Our results show that the derived energy demand and inefficiency trends are both related to changes in the amount of available technology embodied in energy efficient appliances. The effect is significant both in its domestic and international components and suggests an active role of innovation and trade policies for achieving efficiency targets which directly impact the amount of electricity consumed by households. |
| Keywords: | Energy Efficiency, Technological Diffusion, Electrical Appliances, Stochastic Frontier Analysis, Residential Sector |
| JEL: | O33 Q55 Q41 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.104&r=ene |
| By: | Ulrich Doraszelski; Gregory Lewis; Ariel Pakes |
| Abstract: | We document the evolution of the newly created market for frequency response within the UK electricity system over a six-year period. Firms competed in price while facing considerable initial uncertainty about market demand and rival behavior. We show that over time prices stabilized, converging to a rest point that is consistent with equilibrium play, and then adjusted to subsequent changes in the market quite quickly. We draw on models of fictitious play and adaptive learning to analyze how this convergence occurs and show that these models predict behavior better than Nash equilibrium prior to convergence. |
| JEL: | D02 D22 D83 L10 L51 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21996&r=ene |
| By: | Kazukauskas, Andrius (CERE and the Department of Economics, Umeå University); Broberg, Thomas (CERE and the Department of Economics, Umeå University) |
| Abstract: | Households typically receive utility bills where all electricity use during a fixed period of time is lumped together. The lack of direct feedback in the form of marginal costs of using specific electric appliances reduces the attention people give to their energy consumption and potentially leads to biased cost perceptions and mistakes in households’ decision making. In this paper we empirically investigate whether people who are inattentive to energy-related issues have different perceptions regarding the cost of using electricity. We conclude that many households base their decisions regarding electricity use on poor knowledge about the costs involved, that cost perceptions on average tend to be upward biased, and that cost perceptions generally are higher among inattentive respondents. This result somewhat contradicts the common notion that inattention causes lower price (cost) perceptions and, subsequently, too much energy use. Finally, we also find that a substantial share of the sampled households, in particular households with poor knowledge about their energy consumption, are not willing to receive customized information on their energy use and costs. This suggests that some households do not expect to benefit from such information. |
| Keywords: | DSM; energy efficiency; energy policy; inattention; information; nudge |
| JEL: | D12 Q41 Q48 |
| Date: | 2016–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2016_002&r=ene |
| By: | David A. Bielen; Richard G. Newell; William A. Pizer |
| Abstract: | Using commodity futures contract and spot prices, we estimate the incidence of the US ethanol subsidy accruing to corn farmers, ethanol producers, gasoline blenders, and gasoline consumers at expiration in 2011. We find compelling evidence that ethanol producers captured two-thirds of the subsidy, and suggestive evidence that a small portion of this benefit accrued to corn farmers. The remaining one-third appears to have been captured by blenders, as we find no evidence that oil refiners or gasoline consumers captured any part of the subsidy. This paper contributes to understanding of biofuels markets and policy and empirical estimation of economic incidence. |
| JEL: | H22 Q11 Q41 Q42 Q48 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21968&r=ene |
| By: | Michael Hübler (Institute for Environmental Economics and World Trade, Leibniz Universität Hannover); Oliver Schenker (Centre for European Economic Research (ZEW)); Carolyn Fischer (Resources for the Future (RFF)) |
| Abstract: | This paper studies policy instruments that correct insufficient learning-by-doing (LbD) and research and development (R&D) of renewable electricity technologies and insufficient investments in energy efficiency (EE) in the presence of carbon pricing. The theoretical model analysis shows how to re-adjust the first-best in second-best situations, in which one of the policy instruments is restricted. Calibrated to the European power sector, the first-best choice of all instruments reduces the climate policy cost by one third. Feed-in tariffs turn out to be good substitutes for LbD, but not for R&D or EE subsidies. |
| Keywords: | Second-best, Climate Policy, Energy Policy, Feed-in tariff, Power Sector, EU |
| JEL: | C61 O33 Q48 Q54 Q55 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.106&r=ene |
| By: | Malischek, Raimund (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Tode, Christian (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Despite the central role of the Hotelling model within the theory of nonrenewable resources, tests of the model are rarely found. If existent, these tests tend to ignore two key features, namely market power and exploration. We therefore suggest an extension of the basic Hotelling framework to incorporate exploration activity and market power and propose an implicit price behavior test of the model to indicate whether firms undergo inter-temporal optimization. When applied to a newly constructed data set for the uranium mining industry, the null hypothesis of the firm optimizing inter-temporally is rejected in all settings. However, parameter estimates of the model still yield valuable information on cost structure, resource scarcity and market power. Our results suggest that the shadow price of the resource in situ is comparably small and may be overshadowed by market power, which may serve as an explanation for the firm failing to optimize inter-temporally. |
| Keywords: | hotelling rule; resource economics; resource scarcity; dynamic optimization; exploration; market power; Hausman Test; |
| JEL: | D92 L13 L72 Q31 |
| Date: | 2015–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_001&r=ene |
| By: | Heleen van Soest (PBL Netherlands Environmental Assessment Agency, The Netherlands); Lara Aleluia Reis (Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Italy and Fondazione Eni Enrico Mattei); Detlef van Vuuren (PBL Netherlands Environmental Assessment Agency, The Netherlands); Christoph Bertram (Potsdam-Institut für Klimafolgenforschung (PIK), Germany); Laurent Drouet (Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Italy and Fondazione Eni Enrico Mattei); Jessica Jewell (International Institute for Applied Systems Analysis (IIASA), Austria); Elmar Kriegler (Potsdam-Institut für Klimafolgenforschung (PIK), Germany); Gunnar Luderer (Potsdam-Institut für Klimafolgenforschung (PIK), Germany); Keywan Riahi (International Institute for Applied Systems Analysis (IIASA), Austria); Joeri Rogelj (International Institute for Applied Systems Analysis (IIASA), Austria); Massimo Tavoni (Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Italy, Fondazione Eni Enrico Mattei and Politecnico di Milano, Italy); Michel den Elzen (PBL Netherlands Environmental Assessment Agency, The Netherlands); Aayushi Awasthy (The Energy and Resources Institute (TERI), India); Katherine Calvin (Pacific Northwest National Laboratory (PNNL), United States); Pantelis Capros (Institute of Communication and Computer Systems (ICCS), Greece); Leon Clarke (Pacific Northwest National Laboratory (PNNL), United States); Michel Colombier (Institut du Développement Durable et des Relations Internationales (IDDRI), France); Teng Fei (Tsinghua University (TU), China); Amit Garg (Indian Institute of Management Ahmedabad (IIMA), India); Fernanda Guedes (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Mariana Imperio (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Mikiko Kainuma (National Institute for Environmental Studies (NIES), Japan); Jiang Kejun (Energy Research Institute of NDRC (ERI), China); Alexandre C. Köberle (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Peter Kolp (International Institute for Applied Systems Analysis (IIASA), Austria); Volker Krey (International Institute for Applied Systems Analysis (IIASA), Austria); Alban Kitous (European Commission, DG Joint Research Centre (JRC), Spain); Paroussos Leonidas (Energy - Economy - Environment Modelling Laboratory (E3M Lab), Greece); Andre Lucena (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Toshihiko Masui (National Institute for Environmental Studies (NIES), Japan); Larissa Nogueira (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Roberta Pierfederici (Institut du Développement Durable et des Relations Internationales (IDDRI), France); Bert Saveyn (European Commission, DG Joint Research Centre (JRC), Spain); Roberto Schaeffer (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Fu Sha (Renmin University and National Centre for Climate Change Strategy and International Cooperation, China); Bianka Shoai (Research Institute of Innovative Technology for the Earth (RITE), Japan); P.R. Shukla (Indian Institute of Management Ahmedabad (IIMA), India); Thomas Spencer (Institut du Développement Durable et des Relations Internationales (IDDRI), France); Alexandre Szklo (The Alberto Luiz Coimbra Institute for Graduate Studies and Research, Federal University of Rio de Janeiro (COPPE/UFRJ), Brazil); Henri Waisman (Institut du Développement Durable et des Relations Internationales (IDDRI), France) |
| Abstract: | Governments worldwide have agreed that international climate policy should aim to limit the increase of global mean temperature to less than 2oC with respect to pre-industrial levels. The purpose of this paper is to analyse the emission reductions and related energy system changes in various countries in pathways consistent with the 2oC target. We synthesize and provide an overview of the national and regional information contained in different scenarios from various global models published over the last few years, as well as yet unpublished scenarios submitted by modelling teams participating in the MILES project (Modelling and Informing Low-Emission Strategies). We find that emissions in the mitigation scenarios are significantly reduced in all regions compared to the baseline without climate policies. The regional cumulative CO2 emissions show on average a 76% reduction between the baseline and 450 scenario. The 450 scenarios show a reduction of primary energy demand in all countries of roughly 30-40% compared to the baseline. In the baseline scenario, the contribution of low-carbon energy technology remains around 15%, i.e. similar as today. In the mitigation scenario, these numbers are scaled up rapidly towards 2050. Looking at air quality, sulphur dioxide and black carbon emissions are strongly reduced as a co-benefit of greenhouse gas emission reductions, in both developing and developed countries. However, black carbon emissions increase in countries that strongly rely on bioenergy to reach mitigation targets. Concerning energy security, energy importing countries generally experience a decrease in net-energy imports in mitigation scenarios compared to the baseline development, while energy exporters experience a loss of energy export revenues. |
| Keywords: | Climate policy, Mitigation, Global and national policy comparison |
| JEL: | Q54 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.110&r=ene |
| By: | Islam, Moinul; Kanemoto, Keiichiro; Managi, Shunsuke |
| Abstract: | The production of goods and services generates greenhouse gases (GHGs) and air pollution both directly and through the activities of the supply chains on which they depend. The analysis of the latter—called embodied emissions—in the cause of internationally traded goods and services is the subject of this paper. We find that trade openness increases embodied emissions in international trade (EET). We also examine the impact of sector trade on EET. By applying a fixed-effect model using large balanced panel data from 187 countries between 1990 and 2011, we determine that each unit of increase in trade openness results in a 10% to 23% increase in GHG embodied emissions (EE). The sector trade effect is also significant for the EE of carbon dioxide (CO2), methane (CH4) nitrous oxide (N2O), carbon monoxide (CO), non-methane volatile organic compounds (NMVOCs), particulates (PM10 ) and sulfur dioxide (SO2). Our findings also clearly indicate that the impact of the GDP on the EE of exports is positive, increasing emissions, but that it is negative on the EE of imports. We suggest that countries monitor trade sector emissions and trade openness to mitigate global embodied GHG emissions and air pollutants. |
| Keywords: | environmental economics; greenhouse gases (GHGs); industrial ecology; input-output analysis; international trade; trade and environment |
| JEL: | F1 F18 L52 |
| Date: | 2016–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69898&r=ene |
| By: | Bérangère Legendre (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Olivia Ricci (CEMOI - Centre d'Économie et de Management de l'Océan Indien - Université de la Réunion - IAE - Institut d'Administration des Entreprises - Université de la Réunion) |
| Abstract: | Fuel poverty is a growing concern in France. Following the hike in energy prices that started in 2004, the problem of energy affordability for low-income households entered the political debate with the " Grenelle de l " environnement " in 2007. According to the standard UK definition (10% ratio) 3.8 million households were subject to fuel poverty in France in 2006. We question the way fuel poverty is currently measured and compare the impact of alternative measurement approaches on the extent and composition of fuel poverty in France. Then, we identify and characterize vulnerable households that are not ordinarily poor, but can be pushed into poverty because of their fuel bills. A logit, a clog log and a mixed effect logit model are used to analyze which factors influence the probability of vulnerable households to fall into poverty. The study indicates that the proportion of fuel poor people and their characteristics differ significantly depending on the fuel poverty measure chosen. The econometric results show that the probability of falling into poverty is higher for those who are retired living alone, rent their home, use an individual boiler for heating, cook with butane or propane and have poor roof insulation. Current French fuel poverty reduction policies appear to be inappropriate given our conclusions. |
| Keywords: | Fuel poverty,vulnerable households,poverty indicators,clog log model |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01283999&r=ene |
| By: | Julien Albertini; Hong Lan; ; |
| Abstract: | The optimization of turbine density in wind farms entails a trade-off between the usage of scarce, expensive land and power losses through turbine wake effects. A quantification and prediction of the wake effect, however, is challenging because of the complex aerodynamic nature of the interdependencies of turbines. In this paper, we propose a parsimonious data driven econometric wake model that can be used to predict production losses of existing and potential wind parks. Motivated by simple engineering wake models, the predicting variables are wind speed, turbine alignment angle, and distance. By utilizing data from two wind parks in Germany, a significantly better prediction of wake effect losses is attained compared to the standard Jensen model. A scenario analysis reveals that a distance between turbines can be reduced up to three times the rotor size without entailing substantial production losses. In contrast, a suboptimal configuration of turbines with respect to the main wind direction can result in production losses that are five times higher. |
| Keywords: | Wind energy; wake modeling; wind farm designmultiplesystem approach, dual-self model, drift–diffusion model, response times |
| JEL: | E3 J6 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2016-013&r=ene |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) |
| Abstract: | Sri Lanka’s power sector reforms were undertaken as part of a larger overall economic recovery effort and much-needed reconstruction program following a 30-year civil war. The power sector’s restructuring, primarily geared toward encouraging more competition and improved regulation, has brought about wider access to the grid, lower transmission and distribution losses, and a more efficient generation system; but it was met with limited success in unbundling the power system and in making electricity tariffs cost-based and more efficient. This country report by the Asian Development Bank assesses Sri Lanka’s experience in reforming its power sector for lessons and insights that other economies could find useful when pursuing their own power sector planning and policy and strategy formulation. |
| Keywords: | power sector, Sri Lanka, power sector reforms, retail competition, privatization, wholesale power market, competitive power market, transmission and distribution, unbundling, power generation, tariff setting, tariff reform, power supply security, economic outcomes, social outcomes, environmental outcomes, market-based regulation, power sector planning. |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt157618-2&r=ene |
| By: | Malischek, Raimund (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Trueby, Johannes (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Nuclear power is an important pillar in electricity generation in France. However, France’s nuclear power plant fleet is ageing, and the possibility of reducing its share in power generation or even a complete phase-out has been increasingly discussed. Our research therefore focuses on three questions: First, what are the costs of phasing-out nuclear power in France under different scenarios? Second, who has to bear these costs, i.e., how much of the costs will be passed on to the rest of the European power system? And third, what effect does the uncertainty regarding future nuclear policy in France have on system costs? Applying a stochastic optimization model for the European electricity system, we show that additional system costs in France of a nuclear phase-out amount up to 76 billion EUR2010. Additional costs are mostly borne by the French power system. Surprisingly, we find that the costs of uncertainty are rather limited. Based on our results, we conclude that a commitment regarding nuclear policy reform is only mildly beneficial in terms of system costs. |
| Keywords: | nuclear policy; uncertainty; investment; France; electricity market modeling |
| JEL: | C61 L94 Q40 Q48 |
| Date: | 2014–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2014_015&r=ene |
| By: | David I. Stern (Crawford School of Public Policy, The Australian National University); Jeremy van Dijk (Australian Bureau of Agricultural and Resource Economics and Sciences, Australia) |
| Abstract: | Though the environmental Kuznets curve (EKC) was originally developed to model the ambient concentrations of pollutants, most subsequent applications focused on pollution emissions. Yet, previous research suggests that it is more likely that economic growth could eventually reduce the concentrations of local pollutants than emissions. We examine the role of income, convergence, and time related factors in explaining changes in PM2.5 pollution in a global panel of 158 countries between 1990 and 2010. We find that economic growth has positive but relatively small effects, time effects are also small but larger in wealthier and formerly centrally planned economies, and, for our main dataset, convergence effects are small and not statistically significant. There is no in-sample income turning point for regressions that include both the convergence variables and a set of control variables. |
| Keywords: | air pollution; economic growth; environmental Kuznets curve |
| JEL: | O44 Q53 Q56 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1604&r=ene |
| By: | Karen Maguire (Oklahoma State University); John V. Winters (Oklahoma State University) |
| Abstract: | The United States experienced a considerable increase in oil and natural gas extraction in recent years due to technological advancements including horizontal drilling and hydraulic fracturing. Increased energy development likely creates both benefits and costs, but the net effects for local residents are not well understood. This paper examines effects of conventional and horizontal oil and natural gas drilling in Texas on subjective assessments of life-satisfaction and bad mental health days for nearby residents. Horizontal drilling has statistically significant deleterious effects on well-being, but the effects are driven by the Dallas-Fort Worth (DFW) metropolitan area, an area with both very high levels of horizontal drilling and a large urban population. |
| Keywords: | Energy, Drilling, Well-being, Mental Health, Natural Gas |
| JEL: | I10 Q40 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:okl:wpaper:1607&r=ene |
| By: | Tang, Chor Foon; Aviral Kumar, Tiwari; Shahbaz, Muhammad |
| Abstract: | This study attempts to explore the dynamic causal and inter-relationships among tourism, economic growth and energy consumption in India. This study covers the annual data from 1971 to 2012. This study applies the cointegration and generalised variance decomposition methods to verify the relationship. The bounds testing approach to cointegration and the Gregory-Hansen test for cointegration with structural break consistently reveal that energy consumption, tourism and economic growth in India are cointegrated. We find that tourism and economic growth strongly affects energy consumption in the long-run. Additionally, we also find that tourism and economic growth in India are inter-related, but the causal effect of tourism on economic growth is stronger than the other way around in both the short- and long-run. Therefore, this study concludes that the tourism-led growth hypothesis is valid but the energy-led growth hypothesis is invalid in India. With such findings, we can confirm that tourism is an important catalyst of growth to the Indian economy. Therefore, policymakers should promote and expand tourism industry in order to sustain the process of economic growth and development in India. |
| Keywords: | Cointegration; Economic growth; Energy consumption, Tourism; Variance decomposition |
| JEL: | C0 |
| Date: | 2016–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69848&r=ene |
| By: | Favero, Alice; Mendelsohn, Robert; Sohngen, Brent |
| Abstract: | The carbon mitigation literature has separately considered using forests to store carbon and as a source of bioenergy. In this paper, we look at both options to reach a 2°C mitigation target. This paper combines the global forest model, GTM, with the IAM WITCH model to study the optimal use of forestland to reach an aggressive global mitigation target. The analysis confirms that using both options is preferable to using either one alone. At first, while carbon prices are low, forest carbon storage dominates. However, when carbon prices pass $235/tCO2, wood bioenergy with CCS becomes increasingly important as a mechanism to remove CO2 from the atmosphere. The use of both mechanisms increases global forestland at the expense of marginal cropland. While the storage program dominates, natural forestland expands. But when the wood bioenergy program starts, natural forestland shrinks as more forests become managed for higher yields. |
| Keywords: | Climate Change, Woody Biomass, Carbon Sequestration, BECCS, Forestry, Carbon Mitigation, Integrated Assessment Model, Environmental Economics and Policy, Q23, Q42, Q54, |
| Date: | 2016–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:232215&r=ene |
| By: | Bukvić, Rajko |
| Abstract: | Serbian Abstract. У раду се разматрају проблеми загађења и деструкције природне средине, посебно атмосфере. У оквиру тога, проблеми концентрације угљеника, односно гасова стаклене баште разматрају се као једна од главних последица антропогених активности, и као један од главних узрока глобалних климатских промена. У другој половини 20. века била је предложена примена многих шема за стварање тржишног механизма за решавање тих проблема. Такви напори посебно су се повећали у последњој деценији 20 века, да би најзад Кјотски протокол подржао неколико флексибилних механизама, као решење тих проблема. Без обзира на све те напоре, током првог периода њихове примене (2008–2012), емисије угљеника су порасле. Досадашња искуства, не само у овој области, остављају отвореним питање да ли је тржиште универзално решење. English Abstract. The article considers the problem of pollution and destruction of environment, especially the pollution of atmosphere. Within these, problems of the carbon concentration, i.e. greenhouse gases, are considered as one of the main results of the anthropogenic activities, and consequently one of the main causes of the global climate change. In the second half of the XX century many schemes for involving market mechanism in solving these problems were proposed. These efforts especially increased in the last decade of XX century and finally the Kyoto Protocol supported many flexible mechanisms, as a solution for these problems. In spite of all these efforts, during the first period of its implementation (2008–2012) the emissions of carbon were increased. Experiences with market, not only in this sector, leave the problem unresolved: is the market universal solution. |
| Keywords: | гасови стаклене баште, Кјотски протокол, тржишта угљеника, флексибилни механизми greenhouse gases (GHG), the Kyoto Protocol, carbon markets, flexible mechanisms |
| JEL: | H23 K32 L51 Q53 Q56 |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69986&r=ene |
| By: | Beatriz Martínez (Department of Business Finance, University of Valencia); Hipòlit Torró (Financial and Actuarial Economics, University of Valencia) |
| Abstract: | In many futures markets, trading is concentrated in the front contract and positions are rolled-over until the strategy horizon is attained. In this paper, a pair-wise comparison between the conventional risk premium and the accrued risk premium in rolled-over positions in the front contract is carried out for UK natural gas futures. Several novel results are obtained. Firstly, and most importantly, the accrued risk premium in rollover strategies is significatively larger than conventional risk premiums and increases with the time to delivery. Specifically, for strategy horizons between three and six months, this difference increases from 1% to 10%. Secondly, it is the first time that risk premium in day-ahead futures has been measured in this market. The average value of the day-ahead risk premium is 0.5% per day and it is statistically significant. Thirdly, all risk premiums are significantly larger and more volatile in winter. Finally, risk premium time-variation is analyzed using a regression model. It is shown that reservoirs, weather, liquidity, volatility, skewness, and seasons are able in all cases to explain between 21% and 59% of the risk premium time-variation (depending on the futures maturity and sub-period). |
| Keywords: | Natural Gas Market, Futures Premium, Rollover, Seasonal Risk Premiums |
| JEL: | G13 L95 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.06&r=ene |
| By: | Aurelio Volpe (CSIL Centre for Industrial Studies) |
| Abstract: | The first edition of the CSIL report "The European market for outdoor lighting fixtures" has been produced using the following information sources: processing of CSIL information concerning the lighting sector at the European level; database of roughly 200 worldwide manufacturers operating in the European lighting industry; statistical and international trade data; overall documentation relating to the lighting industry available both online and offline. The following market breakdown are considered: Residential lighting (home gardens and architectural lighting for common spaces in residential buildings); Urban landscape lighting (city beautification, mostly architectural); Christmas and Event lighting; Lighting for major roads and tunnels; Area lighting (sporting plants, parkings, petrol stations). The following outdoor lighting products are considered: Pathways, Bollards, Strips, Wall mounted, Pole mounted, Projectors. Kind of demand: Public, Private. Kind of lighting source used: LED, Gas discharge, Fluorescence, Incandescence, Fiber optics. Countries considered: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom (somewhat considered altogether as WE – Western Europe); Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia (CEE – Central Eastern Europe). |
| JEL: | L11 L22 L68 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:mst:csilre:eu30&r=ene |
| By: | Strand,Jon |
| Abstract: | This paper discusses the scope for market mechanisms, already established for greenhouse gas mitigation in Annex 1 countries that ratified the Kyoto Protocol, for implementing"net mitigation,"defined here as mitigation beyond Annex 1 countries'formal mitigation requirements under the Kyoto Protocol. Such market mechanisms could be useful for establishing and extending greenhouse gas mitigation targets also under the Paris Agreement from December 2015. Net mitigation is considered in two possible forms: as a"net atmospheric benefit,"or as an ?own contribution? by offset host countries. A main conclusion is that a ?net atmospheric benefit? is possible at least in the short run, best implemented via stricter baselines against which offsets are credited; but it can also take the form of offset discounting whereby offset buyers are credited fewer credits. The latter, although generally inefficient, can be a second-best response to certain imperfections in the offset market, which are discussed in the paper. There is less merit for claiming that"own contributions"can lead to additional mitigation under existing mechanisms. |
| Keywords: | Carbon Policy and Trading,Climate Change Economics,Climate Change Mitigation and Green House Gases,Environmental Economics&Policies,Markets and Market Access |
| Date: | 2016–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7594&r=ene |
| By: | Paola Biasi; Benedetto Rocchi (Dipartimento di Scienze per l'Economia e l'Impresa) |
| Abstract: | In this paper we estimate the Genuine Saving (GS) of Italian regions in the period 1996-2005. The GS is a macroeconomic indicator of sustainability able to shed light on the future implications of current welfare levels, jointly considering the management of economic and natural assets. Despite the good performance of Italy as a whole during the considered period, our results show an uneven regional distribution of sustainability burdens, with the Basilicata region on an unsustainable development path, showing decreasing and negative value of GS. This results are mainly due to mismanagement of un-renewable natural resources (oil and gas). Failing this test of “weak†sustainability, the Basilicata region is likely to incur a decline of welfare levels in the future. |
| Keywords: | Natural resources, Genuine Saving, regional sustainability, capital approach. |
| JEL: | N54 O13 Q32 Q56 R11 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2016_02.rdf&r=ene |
| By: | Bertsch, Joachim (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Brown, Tom (Frankfurt Institute of Advanced Studies); Hagspiel, Simeon (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Just, Lisa (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The European electricity market design is based on zonal markets with uniform prices. Locational price signals within these zones – necessary to ensure long-term efficiency – are not provided. Specifically, if intra-zonal congestion occurs due to missing grid expansion, the market design is revealed as inherently incomplete. This might lead to severe, unwanted distortions of the electricity market, both in the short- and in the long-term. In this paper, we study these distortions with a specific focus on the impact of restricted grid expansion under zonal markets. For this, we use a long term fundamental dispatch and investment model of the European electricity system and gradually restrict the allowed expansion of the transmission grid per decade. We find that the combination of an incomplete market design and restricted grid expansion leads to a misallocation of generation capacities and the inability to transport electricity to where it is needed. Consequences are severe and lead to load curtailment of up to 2-3 %. Moreover, missing grid expansion makes it difficult and costly to reach envisaged energy targets in the power sector. Hence, we argue that in the likely event of restricted grid expansion, either administrative measures or – presumably more efficient – an adaptation of the current market design to include locational signals will become necessary. |
| Keywords: | electricity market; grid expansion; incomplete market design; misallocation; load curtailment; |
| JEL: | C61 C63 Q40 |
| Date: | 2016–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_007&r=ene |
| By: | Johannes Karl Herrmann (Friedrich Schiller University of Jena, Faculty of Economics and Business Administration); Ivan Savin (Friedrich Schiller University of Jena, Faculty of Economics and Business Administration, and Chair for Economic Policy, Karlsruhe Institute of Technology) |
| Abstract: | The diffusion of renewable electricity generating technologies is widely considered as crucial for establishing a sustainable energy system in the future. However, the required transition is unlikely to be achieved by market forces alone. For this reason, many countries implement various policy instruments to support this process, also by re-distributing related costs among all electricity consumers. This paper presents a novel history-friendly agent-based study aiming to explore the efficiency of different mixes of policy instruments by means of a Differential Evolution algorithm. Special emphasis of the model is devoted to the possibility of small scale renewable electricity generation, but also to the storage of this electricity using small scale facilities being actively developed over the last decade. Both combined pose an important instrument for electricity consumers to achieve partial or full autarky from the electricity grid, particularly after accounting for decreasing costs and increasing efficiency of both due to continuous innovation. Among other things, we find that the historical policy mix of Germany introduced too strong and inflexible demand-side instruments (like feed-in tariff) too early, thereby creating strong path-dependency for future policy makers and reducing their ability to react to technological but also economic shocks without further increases of the budget. |
| Keywords: | differential evolution, electricity storage, energy grid, feed-in tariff, renewable energy |
| JEL: | C63 Q41 Q42 Q48 |
| Date: | 2016–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2016-004&r=ene |
| By: | Brock, W.; Xepapadeas, A. |
| Abstract: | This paper is, to our knowledge, the first paper in climate economics to consider the combination of spatial heat transport and polar amplification. We simplified the problem by stratifying the Earth into latitude belts and assuming, as in North et al. (1981), that the two hemispheres were symmetric. Our results suggest that it is possible to build climate economic models that include the very real climatic phenomena of heat transport and polar amplification and still maintain analytical tractability. We derive optimal fossil fuel paths under heat transport with and without polar amplification. We show that the optimal tax function depends not only on the distribution of welfare weights but also on the distribution of population across latitudes, the distribution of marginal damages across latitudes and cross latitude in- teractions of marginal damages, and climate dynamics. We also determine optimal taxes per unit of emission and show that, in contrast to the standard results suggesting spatially uniform emission taxes, poorer latitudes should be taxed less per unit emissions than richer latitudes. |
| Keywords: | Climate Change, Heat Transport, Polar Amplification, Welfare Maximization, Fossil Fuels, Optimal Taxation, Environmental Economics and Policy, Q54, Q58, C61, |
| Date: | 2016–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:232182&r=ene |
| By: | Simone Borghesi (University of Siena, Department of International and Political Sciences, Italy); Andrea Flori (IMT Institute for Advanced Studies Lucca, Italy) |
| Abstract: | In this work, we investigate which countries have been more central during Phases I and II of the European Emission Trading Scheme (EU ETS) with respect to the different types of accounts operating in the system. We borrow a set of centrality measures from Network Theory's tools to describe how the structure of the system has evolved over time and to identify which countries have been in the core or in the periphery of the network. In doing this, we investigate by means of extensive partitions on the different types of accounts and transactions characterizing the EU ETS whether the role of intermediaries (approximated by Person Holding Accounts - PHAs) has affected the overall structure of the system. Preliminary findings over the period 2005-2012 suggest that PHAs have played a prominent role in the transaction of permits, heavily influencing the configuration of the system. This motivates further research on the impact of non-regulated entities in the EU ETS design. |
| Keywords: | Emission Trading, EU ETS, European Union Transaction Log (EUTL) data, Account and Transaction Types, Network Analysis, Centrality Measures |
| JEL: | C45 D85 L14 Q48 Q54 Q58 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.08&r=ene |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB) |
| Abstract: | Buildings in the People’s Republic of China (PRC) consume 21% of the total energy produced in the country. This study analyzes and proposes feasible energy-saving and emission-reducing solutions for domestic railway stations in the PRC. The use of intelligent building controls support reduction of energy consumption, minimization or elimination of energy wastes, and cost savings. Strong institutional mechanisms and railway building management methods and policies also promote technological innovation. Moreover, these are necessary to balance the interests of multiple parties to be able to achieve energy efficiency in railway station buildings in the PRC. |
| Keywords: | prc railway stations, intelligent railway stations, energy efficiency, energy consumption, emissions reduction, energy savings, policy recommendations, energy assessment, railway station design, adb ta 7916, china railway corporation, case studies |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt157604&r=ene |
| By: | Razmi, Fatemeh; M., Azali; Chin, Lee; Habibullah, Muzafar Shah |
| Abstract: | This article investigates the channels of monetary transmission mechanism alongside oil price and the US industrial production, as two causes of recent crisis, during the pre-and post-crisis of 2007-2009 in Thailand. The channels of monetary transmission mechanism barely have an effect on consumer price index and industrial production while oil price strongly affects both industrial production and consumer price index and the US industrial production robustly influences consumer price index during pre-crisis. However, oil price and the US industrial production greatly lose their effects on consumer price index and industrial production after the crisis period, the oil price is still mostly explains the variation of the consumer price index. The stock price is most effective conduit for monetary policy to industrial production during post-crisis period. |
| Keywords: | Monetary transmission, external shocks, global financial crisis, oil price, US economy |
| JEL: | E0 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69096&r=ene |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) |
| Abstract: | Viet Nam envisions a completely competitive power sector in the long term, including full wholesale and retail competition. To attain this goal, it unbundled its power sector’s monopoly structure and instituted institutional, regulatory, and pricing reforms. Although considerable progress has been made, implementation has not been expeditious, with the government still retaining a strong vested ownership and management interest in the power sector. Further restructuring is needed to ensure complete independence of the system players and to attain pricing transparency. In this country report, the Asian Development Bank assesses Viet Nam’s experience in reforming its power sector for insights that other Asian developing economies could find useful when pursuing their own power sector planning and policy and strategy formulation. |
| Keywords: | power sector, Viet Nam, power sector reforms, retail competition, privatization, equitization, wholesale power market, competitive power market, transmission and distribution, unbundling, power generation, tariff setting, tariff reform, power supply security, economic outcomes, social outcomes,environmental outcomes, market-based regulation, power sector planning |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt157619-2&r=ene |
| By: | Jonas Egerer |
| Abstract: | This data documentation introduces to nodal dispatch models and the literature of the ELMOD model framework, which focuses on bottom-up electricity sector models with detailed spatial representation of the transmission system. The paper provides the technical description of ELMOD-DE, a nodal DC load flow model for the German electricity sector. In alignment with this paper, the described model, including its GAMS code and dataset, is made publicly available as open source model on the website of the DIW Berlin. The dataset uses publicly accessible data sources and includes hourly system data for the German electricity sector of the year 2012. The data documentation also illustrates the variety of insights into the German electricity system, ELMOD-DE provides on nodal level, with examples for hourly nodal system states and aggregated results. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwddc:dd83&r=ene |
| By: | Roberto Urrunaga (Universidad del Pacífico); Sara Wong (Universidad del Pacífico) |
| Abstract: | This paper shows evidence on complementarities in infrastructure and the magnitude of their impacts on social indicators over Peruvian households (level of income, expenditures and capacity of savings). In order to test the hypothesis, it evaluates the impact of having access to each of the basic services on variables that reflect the living conditions of Peruvian households. The dataset consists of information obtained from the National Household Survey (ENAHO) for 2006 and 2013, with the aim of comparing the effects between beneficiaries of infrastructure and non-beneficiaries, and using as methodologies the Propensity Score Matching and Double-Differences. The infrastructure variables obtained from ENAHO are household access to water, sanitation, electricity and telecommunications. The results demonstrate positive effects on infrastructure complementarities for Peruvian households, in the sense that benefits of having more utilities together (2, 3 or 4) are greater than summing up individual benefits of each utility. |
| Keywords: | Infrastructure complementarities, water and sanitation, electricity, telecommunications, household income, Peru |
| JEL: | C21 D31 H54 L97 O18 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2016-064&r=ene |
| By: | Teng Ma (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | We investigate the impact of policy measures to reduce SO2 emissions during 11th Five-Year Plan of China (2006-2010). By using a provincial-level panel data set, we find that installation of the flue-gas desulfurization equipment and closure of small coal- fired power plants contributed to a statistically significant reduction in SO2 emissions. While estimation results suggest that these two policy measures played an important role in reducing SO 2 emissions in China during this period, the size of the estimated coefficients shows that the effects might have been weaker than those predicted by ex-ante cost-benefit analysis. |
| Keywords: | SO2; Air pollution; Panel data; China; 11th Five-Year Plan. |
| JEL: | L94 P28 Q53 Q56 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1609&r=ene |
| By: | Raphaël Lamotte (Urban Transport Systems Laboratory - EPFL - Ecole Polytechnique Fédérale de Lausanne, School of Architecture, Civil and Environmental Engineering - EPFL - Ecole Polytechnique Fédérale de Lausanne); André De Palma (CES, ENS Cachan, CNRS, Universite Paris-Saclay, 94235 Cachan, France); Nikolas Geroliminis (School of Architecture, Civil and Environmental Engineering - EPFL - Ecole Polytechnique Fédérale de Lausanne, Urban Transport Systems Laboratory - EPFL - Ecole Polytechnique Fédérale de Lausanne) |
| Abstract: | Automated cars are likely to change mobility substantially in the coming years. Much research is developed in engineering, about legal and behavioral issues, but the economics of autonomous vehicle remains an open area. In this paper, we consider a single-bottleneck situation, in which the capacity of the freeway is divided between conventional and autonomous vehicles. Users of conventional vehicles freely choose their departure time from home, while users of autonomous vehicles collaborate with a central operator that ensures they do not queue. An individual-specific cooperation cost is integrated in the modeling framework. We address the following key issues: how should infrastructure be allocated to conventional and automated cars? Are there synergies between the two fleets of vehicle? How should each infrastructure be tolled? Should the government be a toll leader? Which regulations are needed? |
| Keywords: | bottleneck model, autonomous cars |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01281425&r=ene |
| By: | Audrey Berry (CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS - Centre National de la Recherche Scientifique); Y Jouffe (LAB'URBA - LAB'URBA - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Nicolas Coulombel (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - École des Ponts ParisTech (ENPC) - PRES Université Paris-Est); Celine Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - École des Ponts ParisTech (ENPC) - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the issue of fuel poverty and of its measurement in the transport sector. We seek to identify households who run the risk of facing difficulties if fuel prices increase. We show that fuel poverty indicators from the domestic sector are not satisfactory in this regard. They fail to take into account three specificities of the transport sector: (1) the diversity of travel needs, (2) restriction behaviours, and (3) variable capacities to adapt. We propose a composite indicator that targets factors of vulnerabilities. In contrast to the previous indicators, it does not solely focus on budgetary aspects but also reflects conditions of mobility. Three levels of exposition to rising fuel prices are considered, depending on the combinations of factors. We test this indicator on French data and find that 7,8% of French households are identified fuel poor, a further 7,4% fuel vulnerable and a further 3,7% fuel dependent. |
| Keywords: | Fuel poverty,Vulnerability,Transport,Measurement |
| Date: | 2015–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01277414&r=ene |
| By: | Bertsch, Joachim (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | In this paper, the trade-off between inefficient transmission forward markets (in nodal pricing regimes) and the inefficiency induced by hiding transmission constraints from the market (in zonal pricing regimes) is analyzed. First, a simple two node model formalizing the general trade-off is deveoped. Then, comparative statics are performed with a stochastic equilibrium model including more nodes, loop flows and an energy and transmission forward market. Inefficiency in the transmission forward market is introduced via a bid-ask-spread and risk aversion of market participants. The welfare impacts for a broad range of supply, demand, grid and inefficiency parameters are analyzed numerically. For efficient spot and forward markets, the results of the literature of nodal pricing being the efficient benchmark are confirmed. With inefficient transmission forward markets, however, zonal pricing proves advantageous in situations with little congestion and low costs. The results imply that the trade-off between the pricing regimes should be considered carefully when defining the geographical scope of bidding zones. |
| Keywords: | electricity; market design; transmission forward markets; inefficient markets; |
| JEL: | L10 Q40 |
| Date: | 2015–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_005&r=ene |
| By: | Nicholas Z. Muller; Paul Ruud |
| Abstract: | The U.S. Environmental Protection Agency (USEPA) maintains networks of pollution monitors for two basic purposes: to check and enforce the attainment of national ambient air quality standards (NAAQS) and to provide useful data for studying pollution and its effects. These purposes imply conflicting criteria for the locations of a limited number of monitors. To check the attainment of standards, monitors are placed where pollution levels are highest. Monitors are not required where standards have always been met and there are no new pollution sources. To provide useful data for studying pollution and its effects, monitors are placed to observe outcomes under a variety of pollution levels. This study asks the following questions. What factors affect when a monitor is retired from the network? What drives the decision to add a new site? What causes year-to-year changes in the number of monitors? We tackle these questions with a particular focus on the role of regulatory compliance and pollution levels in the context of monitors for tropospheric ozone (O3). Using a panel dataset of monitors in the contiguous US spanning the years 1993 to 2011, we find that peak O3 readings in the prior period are significantly associated with the regulator’s decision of whether to add or to drop a monitor in the following period. While compliance with the NAAQS for O3 is not consistently associated with network composition, compliance with the PM2.5 NAAQS does appear to affect changes to the network. |
| JEL: | C23 C25 Q53 Q58 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21966&r=ene |
| By: | Margaretha Breil (Fondazione Eni Enrico Mattei and CMCC); Cristina Cattaneo (Fondazione Eni Enrico Mattei and CMCC); Katie Johnson (Fondazione Eni Enrico Mattei and CMCC) |
| Abstract: | In defining the transition towards a post-carbon future, understanding the needs and determinants for policy priorities in different types of cities will help tailor a common roadmap that can be adopted under various socio-economic contexts. This paper provides an analysis of results collected in a participatory scenario building exercise undertaken within a research project on post-carbon urban futures (Post-Carbon Cities of Tomorrow, POCACITO). It is based on local workshops organised in nine European case study cities, which employed a three-step methodology consisting of an initial assessment, vision building and backcasting exercises. All exercises had a strong focus on the inclusion of stakeholders. Comparison of outcomes from the visions and scenarios resulting from these workshops provides insights on the drivers that determine different priorities in policy action for cities working to transition toward post-carbon futures. Results from the case study cities show similar elements in the strategies proposed by stakeholders, focusing primarily on urban projects for energy efficiency and the transition to non-fossil energy resources. However, the specific mix of strategies envisaged for each city has been influenced by local issues, such as the geographical location or the size, as well as different points of departure with regards to emission reductions and sustainability strategies already achieved. |
| Keywords: | Post-carbon, Visions, Scenarios, Transition, Sustainability |
| JEL: | Q50 Q56 Q58 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2015.102&r=ene |
| By: | Gillingham, Kenneth; Nordhaus, William; Anthoff, David; Bosetti, Valentina; McJeon, Haewon; Blanford, Geoffrey; Christensen, Peter; Reilly, John; Sztorc, Paul |
| Abstract: | The economics of climate change involves a vast array of uncertainties, complicating both the analysis and development of climate policy. This study presents the results of the first comprehensive study of uncertainty in climate change using multiple integrated assessment models. The study looks at model and parametric uncertainties for population, total factor productivity, and climate sensitivity. It estimates the pdfs of key output variables, including CO2 concentrations, temperature, damages, and the social cost of carbon (SCC). One key finding is that parametric uncertainty is more important than uncertainty in model structure. Our resulting pdfs also provide insights on tail events. |
| Keywords: | Climate Change, Integrated Assessment Models, Environmental Economics and Policy, Q540, |
| Date: | 2016–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:232219&r=ene |
| By: | Herrmann, Johannes Karl; Savin, Ivan |
| Abstract: | The diffusion of renewable electricity generating technologies is widely considered as crucial for establishing a sustainable energy system in the future. However, the required transition is unlikely to be achieved by market forces alone. For this reason, many countries implement various policy instruments to support this process, also by re-distributing related costs among all electricity consumers. This paper presents a novel history-friendly agent-based study aiming to explore the efficiency of different mixes of policy instruments by means of a Differential Evolution algorithm. Special emphasis of the model is devoted to the possibility of small scale renewable electricity generation, but also to the storage of this electricity using small scale facilities being actively developed over the last decade. Both combined pose an important instrument for electricity consumers to achieve partial or full autarky from the electricity grid, particularly after accounting for decreasing costs and increasing efficiency of both due to continuous innovation. Among other things, we find that the historical policy mix of Germany introduced too strong and inflexible demand-side instruments (like feed-in tariff) too early, thereby creating strong path-dependency for future policy makers and reducing their ability to react to technological but also economic shocks without further increases of the budget. |
| Keywords: | differential evolution,electricity storage,energy grid,feed-in tariff,renewable energy |
| JEL: | C63 Q41 Q42 Q48 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:87&r=ene |
| By: | Magali Dauvin; David Guerreiro |
| Abstract: | Since Sachs and Warner’s seminal paper in 1995, a conventional wisdom has spread in the academic literature stating that a high endowment in natural resources may be detrimental for growth. The great heterogeneity of development paths followed among resource-rich countries has shown that the resource curse was not always inevitable, and that there existed ways to make the most of one’s natural wealth. We identified three sources of heterogeneity in the literature: the use of abundance and intensity measures, the account for appropriability aspects of resources and finally, the role of institutions. In this paper, we aim at providing quantitative results on the magnitude of the link between natural resources and growth found in the literature, as well as discussing, on quantitative bases, whether the sources of heterogeneity are significant. To this end, we implement a meta-analysis based on 67 empirical studies that investigate the link between natural resources and growth, totaling 1405 estimates. The results show a "soft" curse that may be reverted together with the importance of institutions in mitigating the curse. |
| Keywords: | Meta-analysis; Resource Curse; Natural Resources; Appropriability; Institutions. |
| JEL: | C82 O11 O13 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2016-14&r=ene |
| By: | Willenbockel, Dirk |
| Abstract: | Eradicating extreme poverty from the face of the earth once and for all is a central goal of the post-2015 development agenda. Without a rapid transition of the world economy to a low-carbon growth path over the next few decades, this ambitious goal will remain elusive. Under current greenhouse gas (GHG) emission reduction pledges, the world is not on track to limit the average global temperature rise to +2o C above pre-industrial levels. Failure to meet this agreed target threatens to impede future progress and roll back past achievements in poverty alleviation. Irrespective of the responsibility of the “Global North” for the bulk of atmospheric GHG concentration levels accumulated in the past, most of the growth in energy demand and global GHG emissions over coming decades will arise from today’s developing countries. To avoid catastrophic climate change, a transition to a low-carbon growth path in today’s large fast-growing middle-income countries is imperative and mitigation efforts in other developing countries are also required. Yet developing countries are unlikely to adopt a low-carbon development strategy if such a strategy is perceived to be in conflict with domestic near-term poverty reduction aspirations. Thus, a better understanding of the potential distributional implications of different conceivable pathways to low carbon development is required to ensure the social acceptability and political viability of low carbon policy reforms. The growing recognition that the aims of equitable or pro-poor growth and low-carbon growth need to be addressed together has led to efforts in the literature to identify potential synergies and trade-offs between pro-poor and low-carbon growth. This chapter provides a selective review and some reflections on this literature. |
| Keywords: | Climate change mitigation; pro-poor growth; inclusive growth; green growth; |
| JEL: | O44 Q54 Q56 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69863&r=ene |