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on Energy Economics |
| By: | Chao Luo |
| Abstract: | This dissertation is to study the interplay between large-scale electric vehicle (EV) charging and the power system. We address three important issues pertaining to EV charging and integration into the power system: (1) charging station placement, (2) pricing policy and energy management strategy, and (3) electricity trading market and distribution network design to facilitate integrating EV and renewable energy source (RES) into the power system. For charging station placement problem, we propose a multi-stage consumer behavior based placement strategy with incremental EV penetration rates and model the EV charging industry as an oligopoly where the entire market is dominated by a few charging service providers (oligopolists). The optimal placement policy for each service provider is obtained by solving a Bayesian game. For pricing and energy management of EV charging stations, we provide guidelines for charging service providers to determine charging price and manage electricity reserve to balance the competing objectives of improving profitability, enhancing customer satisfaction, and reducing impact on the power system. Two algorithms --- stochastic dynamic programming (SDP) algorithm and greedy algorithm (benchmark algorithm) are applied to derive the pricing and electricity procurement strategy. We design a novel electricity trading market and distribution network, which supports seamless RES integration, grid to vehicle (G2V), vehicle to grid (V2G), vehicle to vehicle (V2V), and distributed generation (DG) and storage. We apply a sharing economy model to the electricity sector to stimulate different entities to exchange and monetize their underutilized electricity. A fitness-score (FS)-based supply-demand matching algorithm is developed by considering consumer surplus, electricity network congestion, and economic dispatch. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1808.03897&r=ene |
| By: | Simshauser, P |
| Abstract: | From 2012-2017 more than 5000MW of coal plant exited Australia’s National Electricity Market (NEM). The average plant exit notice period was 5.2 months. Exit at scale peaked just as imbalances in the market for natural gas emerged. Compounding matters were Variable Renewable Energy (VRE) plant entry lags due to policy discontinuity in prior periods. By 2016/17, the culmination of coal plant exit, gas market imbalances and VRE entry lags produced more than 20 Lack of Reserve events across the NEM, three blackouts including a black system event in the South Australian region. Spot and forward electricity prices rose to record levels, viz. $90-$130/MWh compared to an historic average of $42.50. In this article, the lead-up to these abnormal trading conditions are traced back to policy decisions a decade earlier in the markets for electricity, natural gas and renewable energy. Lessons for other energy markets undergoing transformation include i). transparency over lumpy plant exit decisions, ii). climate change policy stability, and iii). clear policy limits to gas export capacity vis-à-vis domestic supply. |
| Keywords: | Resource Adequacy, Climate Change Policy, Electricity Prices |
| JEL: | D61 L94 L11 Q40 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1840&r=ene |
| By: | Vinca, Adriano; Rottoli, Marianna; Marangoni, Giacomo; Tavoni, Massimo |
| Abstract: | The climate targets defined under the Paris agreement of limiting global temperature increase below 1.5 or 2°C require massive deployment of low-carbon options in the energy mix, which is currently dominated by fossil fuels. Scenarios suggest that Carbon Capture and Storage (CCS) might play a central role in this transformation, but CCS deployment is stagnating and doubts remain about its techno-economic feasibility. In this article, we carry out a throughout assessment of the role of CCS electricity for a variety of temperature targets, from 1.5 to above 4°C, with particular attention to the lower end of this range. We collect the latest data on CCS economic and technological future prospects to accurately represent several types of CCS plants in the WITCH energy-economy model, We capture uncertainties by means of extensive sensitivity analysis in parameters regarding plants technical aspects, as well as costs and technological progress. Our research suggests that stringent temperature scenarios constrain fossil fuel CCS based deployment, which is maximum for medium policy targets. On the other hand, Biomass CCS, along with renewables, increases with the temperature stringency. Moreover, the relative importance of cost and performance parameters change with the climate target. Cost uncertainty matters in less stringent policy cases, whereas performance matters for lower temperature targets. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2017–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:266285&r=ene |
| By: | Minh Ha-Duong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); An Ha Truong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Hong Nam Nguyen (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Hoang Anh Nguyen Trinh (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi) |
| Abstract: | This report shows the impacts of coal mining and coal-based electricity generation on the Vietnamese society and environment. Five impacts categories were examined: water, air and soil pollution, local people's livelihood and health. We studied impacts now and extrapolated according to Vietnam's current Power Development Plan –namely PDP VII revised– which prescribes to expand the coal-fired power capacity from about 10 GW today in 2015 to 55 GW by 2030. Results show that coal mining and coal-based electricity generation have high, unsustainable, local impacts. Our studies found that levels of dust in the air systematically exceeded the legal safe standards. So did the level of heavy metals and other toxic pollutants in the water we studied. We observed resettlement issues which were not solved appropriately, and local job creation promises which were not followed up in action. We assess that by 2030, Vietnam's coal power plants would create 30 million tonnes of coal ash to be disposed. We estimate that the PDP VII entails importing at least 50 million tonnes of coal per year in 2030. This would compromise energy independence, creating national security risks. We argue further that a fivefold expansion of coal power generation capacity is incompatible with the humanity's goal of stabilizing climate change below 2°C of global warming. In conclusion, we propose engineering and public policy recommendations towards the green growth strategy of Vietnam, which would better integrate the country in the world's energy transition towards a low carbon society. |
| Keywords: | vietnam, impact, charbon |
| Date: | 2016–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01441680&r=ene |
| By: | Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | Economists endorse taxes as a cost-effective means of reducing pollution. But policymakers raise concerns about their regressivity, or disproportional burden on poorer families, preferring instead to regulate energy efficiency. I first show that in theory, energy efficiency standards are more regressive than energy taxes, not less. I then provide an example using data on automobiles in the United States. Taxing gas would be less regressive than regulating the fuel economy of cars if the two policies are compared on a revenue-equivalent basis. |
| Keywords: | Pigouvian tax, performance standards, pollution |
| JEL: | H23 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~18-18-03&r=ene |
| By: | Margaret Insley (Department of Economics, University of Waterloo); Tracy Snoddon (Department of Economics, Wilfrid Laurier University); Peter A. Forsyth (Cheriton School of Computer Science, University of Waterloo) |
| Abstract: | This paper examines the strategic interactions of two large regions making choices about greenhouse gas emissions in the face of rising global temperatures. Optimal decisions are modelled in a fully dynamic, closed loop Stackelberg pollution game. Global average temperature is modelled as a mean reverting stochastic process. A numerical solution of a coupled system of HJB equations is implemented. We explore the impact of temperature volatility and regional asymmetries on emissions, contrasting the outcomes from the Stackelberg game with the choices made by a social planner. When players are identical, a classic tragedy of the commons is demonstrated in which players in the game choose higher carbon emissions and have lower utility as compared to the outcome with a social planner. Over certain values of state variables, the tragedy of the commons is shown to be exacerbated by increased temperature volatility and regional asymmetries in climate damages. Asymmetries in environmental preferences can, under certain conditions, result in a green paradox whereby green sentiments in one region cause the other region to increase emissions. Interestingly, we also found that a contrary "green bandwagon" effect is possible. At high levels of the carbon stock, green preferences in one region can cause the other region to reduce emissions. |
| JEL: | C73 Q52 Q54 Q58 |
| Date: | 2018–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:1805&r=ene |
| By: | Kufeoglu, S.; Pollitt, M.; Anaya, K. |
| Abstract: | In light of the increasing importance of distributed energy resources (DERs) in the electricity system, there is an ongoing need to understand the current status of electric power distribution across the world. This review paper compiles key information about the distribution systems in 175 countries worldwide. The findings for each country include the number, legal structure and ownership of distribution system operators, the access to electricity they provide, distribution level voltages, electric power frequency and the significance of renewable electricity generation. This study covers 99.4% of the world’s population. As of June 2018, there are around 7600 distribution system operators in these 175 countries. After reviewing today’s distribution system status, this paper also reviews the various discussions and proposals for tomorrow’s electric power distribution. The discussion covers both system operation and market platform roles as well as data management options for DSOs in the near future. |
| Keywords: | distribution system operator, DSO, market platform, transmission system operator, TSO |
| JEL: | L94 |
| Date: | 2018–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1846&r=ene |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Perez, Luis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Baum, Christopher F (Department of Economics, Boston College and Department of Macroeconomics) |
| Abstract: | This paper studies directed technical change and innovation in renewable energy. We construct panel data with micro- and macro observations from nearly 200 countries over a 20-year period and estimate how energy prices, government subsidies, financial markets, spillovers, and path dependence affect patenting in solar thermal and solar cells. Carbon taxes, R&D subsidies to solar technology and own-knowledge stocks have strong, significant positive effects on solar innovations. Subsidies to fossil energy have the adverse effect. We find no compelling evidence that the quality of financial markets and institutions has any consistent impact on the patenting activities of innovators in solar energy. |
| Keywords: | Directed Technical Change; Climate Change; Innovation; Patents; Solar Energy. |
| JEL: | O13 O30 P28 P47 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0470&r=ene |
| By: | Giacomo Marangoni; Gauthier De Maere; Valentina Bosetti |
| Abstract: | The availability of technology plays a major role in the feasibility and costs of climate policy. Nonetheless, technological change is highly uncertain and capital intensive, requiring risky efforts in research and development of clean energy technologies. In this paper, we introduce a two-track method that makes it possible to maintain the rich set of information produced by climate-economy models while introducing the dimension of uncertainty in innovation ef- forts, without succumbing to computation complexity. In particular, we solve the problem of an optimal R&D portfolio by employing Approximate Dynamic Programming, through multiple runs of an integrated assessment model (IAM) for the purpose of computing the value function, and expert elicitation data to quantify the relevant uncertainties. We exemplify the methodology with the problem of evaluating optimal near-term innovation investment portfolios in four key clean energy technologies (solar, biofuels, bioelectricity and personal electric vehicle batteries), taking into account the uncertainty surrounding the effectiveness of innovation to improve the performance of these technologies. We employ an IAM (WITCH) which has a fairly rich description of the energy technologies and experts’ beliefs on future costs for the above-mentioned technologies. Focusing on Europe and its short-term climate policy commitments, we find that batteries in personal transportation dominate the optimal public R&D portfolio. The resulting ranking across technologies is robust to changes in risk-aversion, R&D budget limitation and assump- tions on crowding out of other investments. These results suggest an important upscaling of R&D efforts compared to the recent past. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2017–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:256056&r=ene |
| By: | Sauthoff, Saramena; Danne, Michael; Mußhoff, Oliver |
| Abstract: | In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by purchasing green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers decide to switch to a green electricity tariff. We conducted a quota-representative online survey including a discrete choice experiment with 371 private households in Germany in 2016. For the econometric analysis, a generalized multinomial logit model in willingness to pay (WTP) space was employed, enabling the estimation of WTP values to be as realistic as possible. The results show that consumers’ decision regarding whether or not to make the switch to green energy is influenced by many underlying drivers, such as the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exists in Germany. Implications for policy makers and recommendations for the marketing of green energy tariffs are provided. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gadadp:260771&r=ene |
| By: | Nesta, Lionel; Verdolini, Elena; Vona, Francesco |
| Abstract: | This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while command-and-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2018–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:268731&r=ene |
| By: | Alonzo, Ruperto |
| Abstract: | The Biofuels Act of 2006 (RA 9367) was legislated to reduce the Philippines’ dependence on imported fuels and to protect public health and the environment. Under the Act, the Department of Energy (DOE) is authorized to increase the proportion of biodiesel blend upon the recommendation of the National Biofuels Board (NBB) and upon consideration of the domestic supply and availability of the locally produced biodiesel component. Beginning at 1% blend, the mandate was raised to 2% in February 2009. In June 2013, the NBB recommended an increase in the biodiesel blend to 5%. Results of the numerical analysis indicate that the proposed policy will lead to a rise in the price of biodiesel, inducing users to reduce consumption. The total loss to consumers due to the price increase is estimated at P3,767.47 million for 2016. This negative economic impact far outweighs the positive environmental effects in terms of reduced greenhouse gas emissions and health benefits due to reduced morbidity and mortality, with the net loss amounting to P3.26 billion for 2016 alone. These projections, along with the observed upward trend in relative world prices for coconut oil and crude oil prices plus the bleak scenario for domestic coconut production scenario, augur well for a postponement of raising the blend, at least in the short run. |
| Keywords: | Philippines, biodiesel, biodiesel blend |
| JEL: | H5 Q4 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87717&r=ene |
| By: | Xie, Bai-Chen; Gao, Jie; Zhang, Shuang; Zhang, ZhongXiang |
| Abstract: | China’s unbundling reform in 2002 aimed to introduce competitiveness into the power industry, especially the generation sector, to improve its operational efficiency. Meanwhile, great concern about a range of environmental problems and global climate change increasingly calls for saving energy and abating emissions. Thus, the ability to balance the reduction of carbon emissions with economic benefits may to a great extent determine the competitiveness of power generation sector. This study first adopts the game cross-efficiency approach to evaluate the environmental efficiency of the generation sectors in China’s 30 provinces. It then employs a system generalized method of moments model to explore the determinants of their performance while eliminating the associated endogeneity problem. The results of this first study combining the two methods indicate that efficiency gaps do exist among the regions even though overall efficiency has been improved. Despite the negative correlation between environmental efficiency and the thermal power ratio, the power mix should be adjusted gradually. The average firm size and capacity utilization rates are positive factors boosting the environmental efficiency. The incentive policies for clean energy development should be differentiated across regions according to their power mix and self-sufficiency ratio. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2017–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:254042&r=ene |
| By: | Guo, P.; Lam, J.; Li, V. |
| Abstract: | Time-based pricing programs for domestic electricity users have been effective in reducing peak demand and facilitating renewables integration. Nevertheless, high cost, price non-responsiveness and adverse selection may create the possible challenges. To overcome these challenges, it can be fruitful to investigate the ‘high-potential’ users, which are more responsive to price changes and apply time-based pricing to these users. Few studies have investigated how to identify which users are more price-responsive. We aim to fill this gap by comprehensively identifying the drivers of domestic users’ price responsiveness, in order to facilitate the selection of the high-potential users. We adopt a novel data-driven approach, first by a feed forward neural network model to accurately determine the baseline monthly peak consumption of individual households, followed by an integrated machine-learning variable selection methodology to identify the drivers of price responsiveness applied to Irish smart meter data from 2009-10 as part of a national Time of Use trial. This methodology substantially outperforms traditional variable selection methods by combining three advanced machine-learning techniques. Our results show that the response of energy users to price change is affected by a number of factors, ranging from demographic and dwelling characteristics, psychological factors, historical electricity consumption, to appliance ownership. In particular, historical electricity consumption, income, the number of occupants, perceived behavioural control, and adoption of specific appliances, including immersion water heater and dishwasher, are found to be significant drivers of price responsiveness. We also observe that continual price increase within a moderate range does not drive additional peak demand reduction, and that there is an intention-behaviour gap, whereby stated intention does not lead to actual peak reduction behavior. Based on our findings, we have conducted scenario analysis to demonstrate the feasibility of selecting the high potential users to achieve significant peak reduction. |
| Keywords: | Time-based electricity pricing, price responsiveness, high-potential users, variable selection, Time of Use, machine learning |
| JEL: | Q41 |
| Date: | 2018–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1844&r=ene |
| By: | Tunç Durmaz; Aude Pommeret; Ian Ridley |
| Abstract: | It is expected that the renewable share of energy generation will rise considerably in the near future. The intermittent and uncertain nature of renewable energy (RE) calls for storage and grid management technologies that can allow for increased power system flexibility. To assist policy makers in designing public policies that incentivize RE generation and a flexible power system based on energy storage and demandside management, better knowledge as to the willingness to pay for the corresponding devices is required. In this paper, we appraise the willingness of a household (HH) to pay for a 1.9 kW peak photovoltaic (PV) system and smart grid devices, namely, a smart meter and a home storage battery. Results indicate that having access to a storage device is key for the HH decision to install a smart meter. We also find that it is beneficial for the HH to install the PV system regardless of the pricing scheme and the ownership of the battery pack. It is, nevertheless, barely desirable to install the battery pack regardless of the presence of the PV system; an outcome pointing to the fact that the high cost of storage is a drawback for the wider use of these systems. When storage is constrained in such a way that only the generated power can be stored, the willingness to install the battery pack reduces even further. The investment decisions made when legislation prohibits net-metering are also analyzed. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2017–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:257879&r=ene |
| By: | Leitão, Nuno Carlos |
| Abstract: | The climate change has inspired the interest of the academic community in the most diverse areas of knowledge. This study tests and revisited the environmental Kuznets curve assumptions for Portugal. The econometric strategy used in this research is time series (ARIMA model, OLS estimator, ARCH regression, VAR model, and Granger causality) for the time period 1980-2013.The econometric results show that the income per capita and squared income per capita are according to the expected signs, i.e. a positive impact of income per capita on carbon dioxide emissions, and a negative effect of squared income per capita on carbon dioxide emissions. The empirical study also demonstrates that Portugal presents a dependence on energy consumption. The openness trade and foreign direct investment are negatively correlated with carbon dioxide emissions. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:273122&r=ene |
| By: | Shayegh, Soheil; Bosetti, Valentina; Dietz, Simon; Emmerling, Johannes; Hambel, Christoph; Jensen, Svenn; Kraft, Holger; Tavoni, Massimo; Traeger, Christian; Van der Ploeg, Rick |
| Abstract: | Over the last few decades, integrated assessment models (IAM) have provided insight into the relationship between climate change, economy, and climate policies. The limitations of these models in capturing uncertainty in climate parameters, heterogeneity in damages and policies, have given rise to skepticism about the relevance of these models for policy making. IAM community needs to respond to these critics and to the new challenges posed by developments in the policy arena. New climate targets emerging from the Paris Agreement and the uncertainty about the signatories’ commitment to Nationally Determined Contributions (NDCs) are prime examples of challenges that need to be addressed in the next generation of IAMs. Given these challenges, calculating the social cost of carbon requires a new framework. This can be done by computing marginal abatement cost in cost-effective settings which provides different results than those calculated using constrained cost-benefit analysis. Here we focus on the areas where IAMs can be deployed to asses uncertainty and risk management, learning, and regional heterogeneity in climate change impacts. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:273369&r=ene |
| By: | Miravo Rakotovao (ICD - Institut Charles Delaunay - UTT - Université de Technologie de Troyes - CNRS - Centre National de la Recherche Scientifique); Julie Gobert (LEESU - Laboratoire Eau Environnement et Systèmes Urbains - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - ENPC - École des Ponts ParisTech - AgroParisTech, INSA Strasbourg - Institut National des Sciences Appliquées - Strasbourg - INSA - Institut National des Sciences Appliquées); Sabrina Brullot (CREIDD - Centre de Recherches et d'Etudes Interdisciplinaires sur le Développement Durable - ICD - Institut Charles Delaunay - UTT - Université de Technologie de Troyes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Les bioraffineries sont des complexes industriels ayant pour vocation la transformation de la biomasse en une vaste gamme de produits bio-sourcés (alimentation humaine, alimentation animale, produits chimiques, matériaux) et d'énergie (carburants, chaleur et électricité) commercialisables (International Energy Agency, 2009). Ces installations semblent être en mesure d'apporter une contribution à la résolution des enjeux climatiques actuels, notamment la raréfaction des énergies fossiles ainsi que les émissions de gaz à effet de serre. Leur implantation en milieu rural nous amène cependant à nous interroger quant à leurs impacts économiques et sociaux sur le territoire de production. En effet, avant de produire les effets escomptés à l'échelle globale, il est une évidence que leurs retombées se font avant tout ressentir au niveau local. Dans cette perspective, l'objet de cet article consiste à appréhender les modalités de l'ancrage territorial de ce type de projet, et ce, dans le but de déduire les différents enjeux territoriaux qui en découlent. Pour éclairer le concept du bioraffinage, une description des bioraffineries est donnée au préalable, suivie d'une délimitation du territoire d'étude. Finalement, une revue de la littérature sur l'ancrage territorial en milieu rural a été effectuée dans le but d'inventorier les dynamiques de l'ancrage d'un projet agro-industriel de type bioraffinerie. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01841379&r=ene |
| By: | Gabriele Standardi; Yiyong Cai; Sonia Yeh |
| Abstract: | Model differences in technological and geographical scales are common, but their contributions to uncertainties have not been systematically quantified in the climate policy literature. This paper carries out a systematic assessment on the sensitivity of Computable General Equilibrium models to technological and geographical scales in evaluating the economic impacts of carbon mitigation policies. Taking Italy as an example, we find that the estimation for carbon price and the economic cost of a de-carbonization pathway by means of a model with technological and regional details can be lower than a model without such details by up to 40%. Additionally, the effect of representing regional details appears to be far more important than the effect of representing the details of electricity technology in both the estimated carbon prices and the estimated economic impacts. Our results for Italy highlight the importance of modeling uncertainties of these two key assumptions, which should be appropriately acknowledged when applying CGE models for policy impact assessment. Our conclusions can be generalized to different countries and policy scenarios not in terms of absolute numbers but in terms of economic explanations. In particular, intra-national trade and the sub-national sectoral/technological specialization are important variables for understanding the economic dynamics behind these outcomes. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2017–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemei:256059&r=ene |
| By: | Hoai-Son Nguyen (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi, ABIES Doctoral School); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi) |
| Abstract: | Household electricity consumption potentially offers economies of scale, since lighting, cooling or cooking can be shared among household members. This idea needs to be tested empirically. Under an increasing block tariff schedule the marginal and average price of electricity increases with total consumption. Does this effect offset economies of scale in the larger families? This paper uses data from Vietnam Household Living Standard Survey (VHLSS) in 2010, 2012 and 2014 to investigate whether there are economies of scale for Vietnam household electricity consumption in that period. The data will be tested formally by an OLS model and checked robustness by visualization of local linear regressions. Estimated results and robustness check confirm that in general, economies of scale do exist for household electricity consumption in Vietnam from 2010-2014. |
| Keywords: | household economies of scale,electricity use,increasing block tariffs |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01714899&r=ene |
| By: | Llorca, M.; Rodriguez-Alvarez, A.; Jamasb, T. |
| Abstract: | Policies towards fuel poverty often use relative or absolute measures. The effectiveness of the official indicators in identifying fuel poor households and assessing its impact on health is an emerging social policy issue. In this paper we analyse objective and perceived fuel poverty as determinants of self-assessed health in Spain. In 2014, 5.1 million of her population could not afford to heat their homes to an adequate temperature. We propose a latent class ordered probit model to analyse the influence of fuel poverty on self-reported health in a sample of 25,000 individuals in 11,000 households for the 2011-2014 period. This original approach allows us to include a ‘subjective’ measure of fuel poverty in the class membership probabilities and purge the influence of the ‘objective’ measure of fuel poverty on self-assessed health. The results show that poor housing conditions, fuel poverty, and material deprivation have a negative impact on health. Also, individuals who rate themselves as fuel poor tend to report poorer health status. The effect of objective fuel poverty on health is stronger when unobserved heterogeneity of individuals is controlled for. Since objective measures alone may not fully capture the adverse effect of fuel poverty on health, we advocate the use of approaches that allow a combination of objective and subjective measures and its application by policy-makers. Moreover, it is important that policies to tackle fuel poverty take into account the different energy vectors and the prospects of a future smart and integrated energy system. |
| Keywords: | Fuel poverty in Spain; self-assessed health; latent class ordered probit model. |
| JEL: | C01 C25 I14 I32 Q43 |
| Date: | 2018–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1843&r=ene |
| By: | Jun Zhang; Fei-Yue Wang; Siyuan Chen |
| Abstract: | Traditional centralized energy systems have the disadvantages of difficult management and insufficient incentives. Blockchain is an emerging technology, which can be utilized in energy systems to enhance their management and control. Integrating token economy and blockchain technology, token economic systems in energy possess the characteristics of strong incentives and low cost, facilitating integrating renewable energy and demand side management, and providing guarantees for improving energy efficiency and reducing emission. This article describes the concept and functionality of token economics, and then analyzes the feasibility of applying token economics in the energy systems, and finally discuss the applications of token economics with an example in integrated energy systems. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1808.01261&r=ene |
| By: | Gunduz, N; Kufeoglu, S.; Winzer, C.; Lehtonen, M. |
| Abstract: | Estimating the worth of continuity of electricity supply is of interest to industry, governments, regulators and the research community. There are numerous methods to calculate the Customer Interruption Costs (CICs). Each method has its advantages and disadvantages. We approach the problem from the Distribution System Operator (DSO) point of view and employ two existing analytical models. One model is used by the Finnish Energy Market Authority and the second one was proposed by some of the authors in a previous study. Our model offers a simple and straightforward methodology which can provide credible and objective estimations utilizing only publicly available analytical data. We made use of cost and reliability indices data of 78 DSOs in Finland from the 2016. In addition to cost estimations, we highlight regional differences in CIC estimations in different parts of Finland and provide a critical overview of the existing standard customer compensation scheme in Finland. |
| Keywords: | electric power outages, security of supply, customers, interruption, cost, DSO, compensation |
| JEL: | L15 L51 L94 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1841&r=ene |
| By: | Margaret Insley (Department of Economics, University of Waterloo); Peter A. Forsyth (Cheriton School of Computer Science, University of Waterloo) |
| Abstract: | We study three different climate change games and compare with the outcome of choices by a Social Planner. In a dynamic setting, two players choose levels of carbon emissions. Rising atmospheric carbon stocks increase average global temperature which damages player utilities. Temperature is modeled as a stochastic differential equation. We contrast the results of a Stackelberg game with a game in which both players as leaders (a Leader-Leader or Trumpian game). We also examine a game, called an Interleaved game, where there is a significant time interval between player decisions. One or both players may be better off in these alternative games compared to the Stackelberg game, depending on state variables. We conclude that it is important to consider alternate game structures in examining strategic interactions in pollution games. We also demonstrate that the Stackelberg game is the limit of the Interleaved game as the time between decisions goes to zero. |
| JEL: | C61 C73 Q52 Q54 |
| Date: | 2018–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:1804&r=ene |
| By: | Wei Zheng (School of Economics and Development, Wuhan University, China; School of Politics and International Relations, University College Dublin, Dublin, Ireland); Patrick Paul Walsh (School of Politics and International Relations, University College Dublin, Dublin, Ireland) |
| Abstract: | As the largest developing country in the world, with fast-paced urbanization development, China has achieved rapid economic growth since the “Reform and opening-up” policy implemented in 1978. This growth, however, has resulted in persistent and severe environmental problems. This paper evaluates urbanization, trade openness, energy consumption and PM2.5 in the Chinese economy using Fixed effect (FE), fixed effect instrumental (FE-IV), and system generalized method of moments (GMM-sys) estimation methods from 29 provinces over the period 2001–2012. Results demonstrated that PM2.5 is a continuous process that the previous period has positive effect on the current level of PM2.5; Environmental Kuznets Curve (EKC) hypothesis was not supported by analyzing the relationship between economic growth and PM2.5 in China; temperature is not a crucial influencing factor in affecting the amount of PM2.5; urbanization is beneficial to the decrease of PM2.5. PM2.5 from neighboring regions is an important factor increasing the local PM2.5, and the influencing factors of international trade, heavy industry and private cars are contributors to PM2.5 level as well. |
| Keywords: | PM2.5, Energy consumption, Urbanization, Average temperature level |
| Date: | 2018–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201818&r=ene |
| By: | Anke Jacksohn; Peter Grösche; Katrin Rehdanz; Carsten Schröder |
| Abstract: | Using representative household survey panel data from Germany, we undertake a simultaneous assessment of the importance of factors that have individually been found significant for the adoption of renewable energy systems but have never been tested jointly. These are sociodemographic and housing characteristics, environmental concern, personality traits, and economic factors, i.e. the expected costs of and revenue from the investment. Our results suggest that household decisions to invest in photovoltaic systems and solar thermal facilities are mainly driven by the economic factors. Taking account of sociodemographic and housing characteristics, environmental concern or personality traits has comparatively little relevance, while the quantitative nexus between the decision to invest and returns on the investment is robust to their inclusion. |
| Keywords: | renewable technology adoption; investment decision; solar energy; household sector |
| JEL: | C25 D12 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp977&r=ene |
| By: | Anthony Smith (Yale University) |
| Abstract: | This paper builds a highly-disaggregated global economy-climate model featuring variations in both weather (temperature) and climate (the probability distribution over weather). The model consists of approximately 19,000 1-degree-by-1-degree regions containing land. Carbon emissions from the use of energy in production increase the Earth's temperature and regional climates (average temperature) respond more or less sensitively to this increase. Regional temperatures, in turn, vary stochastically according to an empirical statistical downscaling model estimated using high-resolution panel data on temperature. Each region makes optimal consumption-savings and energy-use decisions as its productivity varies in response to changes in both weather and climate. Regions interact through global energy and financial markets and through the global carbon cycle and climate system. The relationship between climate and regional productivity has an inverse U-shape, calibrated so that the many-region model replicates estimates of aggregate global damages from global warming. Changes in productivity stemming from stochastic variations in regional temperature are calibrated to replicate relationships between temperature and regional GDP in the G-Econ database. The calibrated model serves as a laboratory in which to assess the ability of non-structural (reduced-form) methods to extract economic damages caused by variations in weather and climate from panel data on weather, climate, and GDP. The paper documents quantitatively their performance and investigates possible sources of bias. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:1223&r=ene |
| By: | Diamantoudi, Effrosyni; Sartzetakis, Eftichios; Strantza, Stefania |
| Abstract: | This paper examines the stability of International Environmental Agreements (IEAs) in an economy with trade. We extent the basic model of the IEAs by letting countries choose emission taxes and import tariffs as their policy instruments in order to manage climate change and control trade. We define the equilibrium of a three-stage emission game. In the first stage, each country decides whether or not to join the agreement. In the second stage, countries choose simultaneously - cooperatively or non-cooperatively - tariff and tax levels. In the third stage, taking countries’ decisions as given, firms compete a la Cournot in the product markets. Numerical analysis illustrates that the interaction between trade and environment policies is essential in enhancing cooperation. Contrary to the IEA model, stable agreements are larger and more efficient in reducing aggregate emissions and improving welfare. Moreover, the analysis shows that the size of a stable agreement increases in the number of countries affected by the externalities. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:274851&r=ene |
| By: | Karen Clay; Margarita Portnykh |
| Abstract: | This paper draws on a new state-level panel dataset and a model of domestic Dutch disease to examine the short-run and long-run effects of oil & natural gas, coal, and agricultural land endowments on state economies during 1936-2015. Using a flexible shift-share estimation approach, where the shift is national resource employment and the share is state resource endowment, we find that different resources had different short-run effects in different time periods, across increases and decreases in resource employment, and across different outcomes. Using long differences, we find that long-run population growth was an important margin of adjustment over 1936-2015. States with larger coal and agricultural endowments per square mile experienced significantly slower population growth than states with smaller endowments per square mile. Resource endowments had no effect on long-run growth in per capita income. |
| JEL: | J2 N12 O4 Q24 Q43 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24695&r=ene |
| By: | Edmond, Patrick; Titeca, Kristof |
| Abstract: | • The DRC has major possibilities for oil development, but very little actual development. • A major barrier is state inaction or blockages. • These emerge due to regime stability concerns. These are manifests in two key ways: The sector is a major source of patronage and rent-extraction. These rents are not created through the active production and development of the sector, but through selling access. Oil sector development is contrary to regime stability: internal geopolitics, regional relationships, and central control over major wealth are threatened by sector development. • These elements have not only prevented companies from exploration and production, but have discouraged further investor interest. • Change is unlikely. The disincentives which have blocked development in the past remain strong. |
| Keywords: | Congo; DRC; oil |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:iob:apbrfs:2018001&r=ene |
| By: | Mehling, Michael A.; Metcalf, Gilbert E.; Stavins, Robert N. |
| Abstract: | The Paris Agreement has achieved one of two key necessary conditions for ultimate success – a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved – adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and subnational policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions – type of policy instrument; level of government jurisdiction; status of that jurisdiction under the Paris Agreement; nature of the policy instrument’s target; and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:266282&r=ene |
| By: | Berga, Helen; Ringler, Claudia; Bryan, Elizabeth; El Didi, Hagar; Elnasikh, Sara |
| Abstract: | The Nile is the lifeblood of northeastern Africa, and its roles for and interdependency with the national economies it traverses and binds together grow as it moves from source to sea. With rapid economic development—population growth, irrigation development, rural electrification, and overall economic growth—pressures on the Nile’s water resources are growing to unprecedented levels. These drivers of change have already contributed to stark changes in the hydropolitical regime, and new forms of cooperation and cross-sectoral collaboration are needed, particularly in the Eastern Nile Basin countries of Egypt, Ethiopia, Sudan, and South Sudan. As direct sharing of water resources is hampered by unilateral developments, the need has increased for broader, cross-sectoral collaboration around the water, energy, and food sectors. This study is conducted to assess and understand the challenges of and opportunities for cooperation across the water-energy-food nexus nationally in Egypt, Ethiopia, and Sudan, as well as regionally across the Eastern Nile. To gather data, the paper uses an e-survey supplemented with key informant interviews geared toward national-level water, energy, and agriculture stakeholders, chiefly government staff and researchers. Findings from the survey tools suggest that most respondents strongly agree that collaboration across the water, energy, and agriculture sectors is essential to improve resource management in the region. At the same time, there is ample scope for improvement in collaboration across the water, energy, and food sectors nationally. Ministries of water, energy, and food were identified as the key nexus actors at national levels; these would also need to be engaged in regional cross-sectoral collaboration. Respondents also identified a wide range of desirable cross-sectoral actions and investments—both national and regional—chiefly, joint planning and operation of multipurpose infrastructure; investment in enhanced irrigation efficiency; joint rehabilitation of upstream catchments to reduce sedimentation and degradation; and investment in alternative renewable energy projects, such as wind and solar energy. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2017–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubonwp:264876&r=ene |
| By: | Mense, Andreas |
| Abstract: | I study the information value of energy efficiency certificates. By using data on repeatedly observed buildings, I separate the rent premium for certified energy efficiency from the premium for readily observable energy efficiency. The buildings were observed before, in-between and after two consecutive law changes that first made certification compulsory and then introduced fines for non-compliers. The strategy allows to control for time-fixed effects of the buildings and for changes in energy efficiency premia over time. I find a precisely measured, but economically and statistically insignificant effect of certification. Supplementary analysis suggests that consumers do value energy efficiency per se, and that energy cost savings translate into higher rents 1-by-1. Further, in a simple theoretical framework, I study the channels through which certification of buildings affects energy consumption. One implication from theory is that compulsory certification is unlikely to be welfare-increasing, even if certificates carry additional information. Given the empirical results of this paper, it is almost certainly welfare-decreasing. |
| Keywords: | certification,energy efficiency,information asymmetry,value of information |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:102018&r=ene |
| By: | d’Adda , Giovanna; Gao , Yu; Golman, Russell; Tavoni, Massimo |
| Abstract: | Environmental policies based on information provision are widespread, but have often proven ineffective. One possible explanation for information’s low effectiveness is that people actively avoid it. We conduct an online field experiment on air conditioning usage to test the theory of moral wiggle room, according to which people avoid information that would compel them to act morally, against the standard theory of information acquisition, and identify conditions under which each theory applies. In the experiment, we observe how exogenously imposing a feeling of moral obligation to reduce air conditioning usage and exploiting natural variation in the cost of doing so, given by outside temperature, influences subjects’ avoidance of information about their energy use impacts on the environment. Moral obligation increases information avoidance when it is hot outside, consistent with the moral wiggle room theory, but decreases it when outside temperature is low. Avoiding information positively correlates with air conditioning usage. These findings provide guidance about tailoring the use of nudges and informational tools to the decision environment. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:269535&r=ene |
| By: | Andrew Ross (Department of Economics, University of Strathclyde); Grant Allan (Department of Economics, University of Strathclyde); Gioele Figus (Department of Economics, University of Strathclyde); Peter G McGregor (Department of Economics, University of Strathclyde); J Kim Swales (Department of Economics, University of Strathclyde); Karen Turner (Centre for Energy Policy, University of Strathclyde) |
| Abstract: | The wider impacts of energy policy on the macro-economy are increasingly recognised in the academic and policy-oriented literatures. Additionally, the interdependence of energy and economy implies that a (policy) change in the non-energy system impacts on the energy system. However, such spillovers on the energy system have not been extensively researched. We begin by analysing the impacts of export promotion policies - a key element of the UK’s Industrial Strategy - on the energy system and energy policy goals. As the impacts of such policies are, in large part, transmitted via their effects on the economy, we adopt a computable general equilibrium model - UK-ENVI - that fully captures such interdependence. Our results suggest that an across-the-board stimulus to exports increases total energy use significantly. This does not come directly through energy exports, but indirectly through the energy sectors’ linkages to other sectors. Export led growth therefore impacts on energy use - and significantly so. This in turn is likely to have an adverse impact on emission targets. Policy makers should be aware of the fact that a successful implementation of the Industrial Strategy may create significant tensions with the UK’s Clean Growth Strategy, for example, and with the goals of energy policy more generally. The importance of this effect will in practice depend upon: the mix of goods and services that are exported (an issue that we shall address once the export strategy is published); the success of low-carbon policies. Ultimately, a knowledge of the nature and scale of these spillover effects of economic policies on the energy system creates the potential for more effective and efficient policy making. |
| Keywords: | energy policy, industrial strategy, trade policy |
| JEL: | C68 D58 Q43 Q48 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:18-10&r=ene |
| By: | Clarete, Ramon |
| Abstract: | Among several factors that may explain why electricity in the Philippines is expensive compared to other ASEAN member states, this paper zeroes in on two: the value added tax (VAT) and red tape in obtaining generation business permits. Legislators have raised the timeliness of lifting just the VAT on electricity to reduce electricity prices. This study however observes that red tape may contribute three times more than the VAT to making electricity costly in the country. The study uses a computable general equilibrium (CGE) model of the Philippine economy to explore the relative contributions of the two to electricity price, and simulate their economic effects. Besides reducing electricity prices, streamlining and shortening the business permitting process for new generation companies in the country will make the economy more efficient and raise the revenue from VAT. |
| Keywords: | Electric Energy, Electricity, Policy Analysis |
| JEL: | D04 D58 H25 Q48 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87727&r=ene |
| By: | Campagnolo, Lorenza; Davide, Marinella |
| Abstract: | The paper analyses the synergies and trade-offs between emission reduction policies and sustainable development objectives. Specifically, it provides an ex-ante assessment that the impacts of the Nationally Determined Contributions (NDCs), submitted under the Paris Agreement, will have on the Sustainable Development Goals (SDGs) of poverty eradication (SDG1) and reduced income inequality (SDG10). By combining an empirical analysis with a modelling exercise, the paper estimates the future trends of poverty prevalence and inequality across countries in a reference scenario and under a climate mitigation policy with alternative revenue recycling schemes. Our results suggest that a full implementation of the emission reduction contributions, stated in the NDCs, is projected to slow down the effort to reduce poverty by 2030 (+2% of the population below the poverty line compared to the baseline scenario), especially in countries that have proposed relatively more stringent mitigation targets and suffer higher policy costs. Conversely, countries with a stringent mitigation policy experience a reduction of inequality compared to baseline scenario levels. If financial support for mitigation action in developing countries is provided through an international climate fund, the prevalence of poverty will be slightly reduced at the aggregate level (185,000fewer poor people with respect to the mitigation scenario), but the country-specific effect depends on the relative size of funds flowing to beneficiary countries and on their economic structure. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemei:263487&r=ene |
| By: | Goodarzi, Shadi; Masini, Andrea; Aflaki, Sam |
| Abstract: | We examine empirically how different information types and information channels affect both the intention and the decision to adopt photovoltaic (PV) technology as affected by adoption stage. Analyzing data on a large European utility’s current and potential clients reveals how the effects of various drivers of adoption can change across phases of the adoption process. Our results challenge the common wisdom that information necessarily and homogeneously supports innovation adoption; instead, they strongly support the hypothesis that information types and channels have distinct effects on adoption rates. These results also highlight that, throughout the adoption process, the value of information changes. In addition, we clarify the effects of economic incentives on both the intention to adopt PV technology and actual adoption behavior. Our findings have critical implications for policy makers and for any technology manufacturing company that must optimize its marketing strategy and distribution channels to promote renewable energy systems. |
| Keywords: | innovation adoption; renewable energy; information characteristics; empirical studies |
| JEL: | D83 |
| Date: | 2018–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:1279&r=ene |
| By: | Cattaneo, Cristina |
| Abstract: | This paper has two objectives. First it provides a correlation between internal and external barriers to energy efficiency and consumer behaviour related to two domains. It evaluates behaviour related to energy curtailment, which represents routine, repetitive effort to decrease consumption on a day-to-day basis. It also considers behaviour related to investments, which are one time actions such as purchasing new energy efficiency technologies.. Second, it assesses the effectiveness of the different interventions and programs in addressing the two types of barriers (internal and external) with the aim of informing the policy debate. By assessing the value of a large number of interventions, this paper is one of the first that combines in a unified framework the main findings of different disciplines, from economics to psychology. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2018–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:269536&r=ene |
| By: | Zugravu-Soilita, Natalia |
| Abstract: | Based on panel data covering 114 countries in the world, this study investigates the direct, indirect and total effects of trade flows in environmental goods (EG) on total CO2 and SO2 emissions. Our system-GMM estimations reveal positive direct scale – [between-industry] composition effects prevailing on the negative direct technique – [within-industry] composition effects (if any), as well as compensating the significant indirect technique effects channelled by the stringency of environmental regulations and per capita income. If the net importers of EGs (namely from the APEC54 and WTO26 lists) are recurrently found to face increased pollution (in particular CO2 emissions) due to direct scale-composition effects of trade in EGs, the EGs’ net exporters are more likely to see their local pollution to decrease, in particular thanks to income-induced effects. We show that the direct, indirect and total effects of trade in EGs depend on the country’s net trade status, the EGs’ classification and the pollutant considered. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2017–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemei:266287&r=ene |
| By: | Hawk, Ashton; Pacheco-de-Almeida, Gonçalo |
| Abstract: | To investigate time compression dis-economies (TCD), this study estimated time-cost elasticities using 459 oil and gas global investment projects (1997-2010). Results show that the average cost of accelerating investments is negative: a firm could cut $6.3 million in costs of a single project by accumulating asset stocks one month faster. About 88 percent of the projects exhibit negative time-cost elasticities with over 39 percent of unrealized economies of time compression. Only 12 percent of the projects are subject to TCD. These time inefficiencies or frictions do not negate the existence of TCD, but suggest they are less prevalent than assumed in the literature. Management experience, R&D investment, firm size, economic development and political stability are shown to be associated with greater time compression efficiency. |
| Keywords: | Sustainable Competitive Advantage; Temporal Frictions; Time Compression Diseconomies; Time Inefficiencies; Time-Cost Tradeoff |
| JEL: | D22 D24 L71 M11 M20 |
| Date: | 2018–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:1283&r=ene |
| By: | Doctorando: Napoleón Vicente Blanco Orozco |
| Abstract: | Este trabajo de investigación se centró en proponer un modelo que permite determinar la evaluación financiera, económica, social y ambiental de manera integral del recurso energético renovable biomasa como combustible sólido proveniente del bagazo de caña utilizado en la generación de energía eléctrica en Nicaragua. El modelo de evaluación integral del uso de bagazo de caña de azúcar en la generación de energía eléctrica se aplicó con el enfoque de la lógica difusa a través de componentes o subsistemas como elementos del modelo. En el componente de productividad se aplicó el enfoque de análisis de datos envolventes (DEA) con la metodología de los índices de Malmquist, en el componente ambiental se aplicó el enfoque de balance de gases de efecto invernadero (GEI) utilizando las directrices del IPCC; en el componente de la evaluación financiera y económica se aplicó el análisis de flujo financiero y económico respectivamente, y finalmente, en el componente social se aplicó el análisis multicriterio. Con el modelo de evaluación propuesto, se logran integrar desde una nueva perspectiva teórica las evaluaciones de los proyectos energéticos que en la revisión de literatura se encontró se aplican de manera dispersa. Además, no se encontró un instrumento que las integrara hasta el desarrollo del modelo que en esta tesis doctoral se presenta. Por lo que, el modelo planteado se muestra como un nuevo aporte al conocimiento científico sobre la evaluación del uso del recurso energético bagazo de caña para la producción de energía eléctrica. La metodología utilizada para construir el modelo de evaluación integral se aplicó con el enfoque de la lógica difusa. Para la elaboración del modelo se utilizó un estudio no experimental, explicativo con orientación paradigmática de la economía ambiental y con enfoque integrado basado en el estudio de casos y la simulación en el proceso de investigación. Como parte de la estrategia metodológica se estudiaron y seleccionaron las metodologías de evaluación económica, social, ambiental, financiera y de productividad del empleo de recursos energéticos renovables y no renovables en proyectos de generación de energía eléctrica para determinar los elementos factibles a ser integrados. El proceso de selección de metodologías de evaluación se complementó con la herramienta de consulta a expertos. Cada uno de los elementos metodológicos de las evaluaciones seleccionadas y que son componentes del modelo fue aplicado usando el método de estudio de casos en Nicaragua. Luego, se integraron los resultados del proceso de selección de metodologías de evaluación de recursos energéticos renovables y no renovables en un modelo para la evaluación del uso bagazo de caña y de combustibles derivados del petróleo en la generación energía eléctrica. Finalmente, el modelo integral de evaluación fue aplicado usando el método de estudios de casos en Nicaragua. Como resultados de la aplicación del modelo de evaluación se encontró que de la evaluación de la productividad total de los factores de los ingenio San Antonio y Monte Rosa, que generan energía en base a bagazo, el ingenio Monte Rosa presento un ritmo de crecimiento mayor en el periodo 2002-2011. En relación a la evaluación de las centrales térmicas, que generan energía en base a derivados del petróleo, el índice de productividad total de los factores en promedio registró desmejora en el periodo de estudio; sin embargo, las centrales ALBANISA, GECSA, y TIPITAPA POWER COMPANY registraron un ritmo de crecimiento interanual entre el 2,6% y 0,6% para el periodo 2009 al 2011. En la evaluación ambiental de los ingenios San Antonio y Monte Rosa se valoraron los módulos de reforestación, cultivos anuales, insumos y otras inversiones y se encontró que ambos contribuyen a la reducción de CO2. El ingenio San Antonio resulta ser un sumidero de Gases de Efecto Invernadero (GEI) de 18 032 tCO2 y el ingenio Monte Rosa resulta ser un sumidero de GEI de 10 096 tCO2 anuales. Además, se determinó que la generación de energía eléctrica empleando bagazo de caña es económicamente y financieramente rentable; no obstante, el empleo de derivados del petróleo es financieramente rentable, pero no es económicamente rentable para la generación de energía eléctrica. Así mismo, la evaluación social del uso de bagazo de caña en la generación de energía eléctrica mostró que este uso tiene impactos positivos. Sin embargo, las plantas térmicas que usan derivados del petróleo estudiadas tienen impactos sociales negativos por encarecer el precio de la energía eléctrica y producir en el proceso de generación de energía eléctrica gases contaminantes como el CO2. Finalmente, al realizar la evaluación integral del empleo del recurso energético bagazo de caña y de derivados del petróleo en la generación de energía empleando el modelo elaborado se determinó que el empleo del bagazo de caña es integralmente rentable y presenta más beneficios que el empleo de derivados del petróleo que no es integralmente rentable para la generación de energía eléctrica en Nicaragua. |
| Keywords: | Environmental Economics and Policy, Productivity Analysis, Research Methods/ Statistical Methods |
| Date: | 2018–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nauntg:275421&r=ene |
| By: | International Monetary Fund |
| Abstract: | St. Lucia has been a leader among vulnerable Caribbean states in prioritizing a response to climate change, both nationally and in international fora. Its Nationally Determined Contribution (NDC) submission to the Paris Agreement outlines a balanced mitigation strategy backed by costed investment plans, and a qualitative adaptation strategy with identified priority sectors. A National Adaptation Plan (NAP) process was launched in April 2018. This paper takes stock of St. Lucia’s plans to manage climate change, from the perspective of their macroeconomic implications. It suggests macro-relevant reforms that could strengthen the likelihood of success of the national strategy and identifies policy gaps and resource needs. |
| Keywords: | Asia and Pacific;Western Hemisphere;Saint Lucia; |
| Date: | 2018–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:18/181&r=ene |
| By: | Bošković, Branko; Chakravorty, Ujjayant; Pelli, Martino; Risch, Anna |
| Abstract: | Fuelwood collection is often cited as the most important cause of deforestation in developing countries. Use of fuelwood in cooking is a leading cause of indoor air pollution. Using household data from India, we show that households located farther away from the forest spend more time collecting. Distant households are likely to sell more fuelwood and buy less. That is, lower access to forests increases fuelwood collection and sale. This counter-intuitive behavior is triggered by two factors: lower access to forests (a) increases the fixed costs of collecting, which in turn leads to more collection; and (b) drives up local fuelwood prices, which makes collection and sale more profitable. We quantify both these effects. Using our estimates we show that a fifth of the fuelwood collected is consumed outside of rural areas, in nearby towns and cities. Our results imply that at the margin, fuelwood scarcity may lead to increased collection and sale, and exacerbate forest degradation. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cpaper:274849&r=ene |
| By: | Golam Mostafa (American University in the Emirates, Dubai, UAE Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | "Objective –This study evaluates China's rapid growth of economic, trade and investment ties with key Middle Eastern countries and its long term economic, geo-political and strategic goals and objectives, as well as opportunities and limitations in the light of the relative decline of US power and influence in the region. Methodology/Technique – A qualitative research methodology is applied in the study and wide range of secondary sources including articles, papers and online resources are used, analyzed and consulted. Data on trade and investment statistics between China and major Middle Eastern countries are also tabulated and used. Findings – The study concludes that economic and trade interests as well as stable and regular oil and gas supply are the primary consideration in this burgeoning relationship. The study also finds that strategic factors like geopolitical locations, large territories with huge natural resources, rising consumer markets and potential areas of military cooperation and arms sales make the Middle East a more lucrative and attractive partner to China. Novelty –The study looks at the relationship between China and the Middle East." |
| Keywords: | "China; Middle East; Trade; Strategic Interests; Gulf Cooperation Council ('GCC'); One Belt One Road ('OBOR')." |
| JEL: | N15 N25 N45 |
| Date: | 2017–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr470&r=ene |