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on Energy Economics |
| By: | Yadira Mori-Clement (University of Graz, Austria); Stefan Nabernegg (University of Graz, Austria); Birgit Bednar-Friedl (University of Graz, Austria) |
| Abstract: | Preferential trade agreements with climate-related provisions have been suggested as alternative to a New Market Mechanism due to its potential not only to achieve Nationally Determined Contributions (NDCs) in emerging economies but also to lead to more ambitious targets in the first UNFCCC global stocktake in 2023. The objective of this research is therefore to analyze the effectiveness and quantify the economic impacts of such a trade agreement between Brazil and the European Union that aims to support renewable electricity generation. Using a multi-regional computable general equilibrium model, we find that the environmental effectiveness of a preferential trade agreement targeting renewable electricity generation strongly depends on its design. In particular, preferential trade agreements require additional elements to effectively contribute to mitigation as the sole removal of import tariffs on renewable energy technology is quite ineffective in scaling up the share of wind, solar, and biomass in Brazil. In contrast, a preferential trade agreement triggering FDI flows towards renewable electricity generation is effective in increasing the share of renewables in the generation mix and in reducing CO2 emissions, while positively affecting the Brazilian economic performance. Finally, we compare the two previous approaches to a domestic energy policy: a combination of higher fossil fuel taxes and subsidies to renewable electricity generation. We find that although this domestic energy policy is more effective in mitigation terms than the FDI policy, economic performance is negatively affected in several sectors. When such economic costs are socially not acceptable, as it is likely in many emerging economies, properly designed preferential trade agreements could therefore be a suitable instrument for supporting the achievement of NDCs, and potentially increase their stringency for the next stock taking period. |
| Keywords: | Preferential Trade Agreements with climate-related provisions; environmental goods; renewable energy; FDI; emerging economies; Brazil; European Union |
| JEL: | Q27 Q28 Q42 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2018-19&r=ene |
| By: | Simone Tagliapietra |
| Abstract: | This paper was produced with the financial support of Compagnia di san Paolo and presented in the framework of the Policy responses for an EU-MENA shared future event, jointly organised with the OCPPC. The issue Energy is a fundamental component of the economic relationship between the European Union and southern Mediterranean countries, largely driven, so far, by Europe’s quest for oil and gas supplies. However, given the booming energy demand in southern Mediterranean countries and their great solar and wind potential, regional energy cooperation should also strongly focus on fostering large-scale deployment of renewable energy. This would allow southern Mediterranean countries to meet their increasing energy demand in a more sustainable way, and would also have positive economic and political benefits for Europe. Policy challenge Under the 2015 Paris Agreement on climate change, southern Mediterranean countries adopted post-2020 plans to reduce their greenhouse gas emissions and set targets for deployment of renewables. However, these commitments are largely conditional on international climate finance support being provided. Europe could scale-up its climate financing in the southern Mediterranean, but this should be linked to the implementation of certain energy reforms in those countries. Reforms should not be aimed at transposing in southern Mediterranean countries the EU framework and rules, but rather at removing the main barriers to the private sector’s engagement in those countries’ renewable energy sectors. This could be done by promoting pragmatic solutions to specific legal, regulatory and financial bottlenecks. Greater climate financing should be provided only when southern Mediterranean countries implement such solutions in practice. Helping southern Mediterranean countries meet their energy needs in a sustainable way would also benefit Europe by opening up new business opportunities for European energy companies, promoting the export of European renewable energy technologies, guaranteeing the stability of future gas exports from the region to Europe, promoting economic development in southern Mediterranean countries and delivering on those countries’ pledges under the Paris Agreement. |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polbrf:27839&r=ene |
| By: | Sanghyun Hong and Barry W. Brook |
| Abstract: | Nuclear energy has provided a major source of clean electricity for South Korea over decades. However, the South Korean Government announced an energy transition roadmap aiming to reduce nuclear shares and increase renewable shares. However, given the nation's high population density, the maximum share of renewable sources for electricity generation in South Korea is constrained. The roadmap was silent on how to fill the gap between a reduced nuclear output and the limited renewable potentials. The tacit alternatives are fossil fuels, and their deployment will become the key determining factor on how South Korea approaches the problem of greenhouse gas emissions reductions. We used scenario analysis to investigate two fossil†intensive cases, alongside a hypothetical renewable case. On the basis of the comparison of the three scenarios with other countries, we provide an insight into the feasibility and limitations of the nonnuclear options and propose the techno†economic requirements for avoiding the worst outcomes. |
| Keywords: | carbon emissions, energy transition, fossil fuels, nuclear phase-out, renewable resources |
| Date: | 2018–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201838&r=ene |
| By: | DorothŽe CHARLIER (USMB IREGE); Sond s KAHOULI (UniversitŽ Bretagne Occidentale AMURE) |
| Abstract: | The residential energy demand is growing steadily and the trend is expected to continue in the near future. At the same time, under the impulse of economic crises and environmental and energy policies, many households have experienced reductions in real income and higher energy prices. In the residential sector, the number of fuel-poor households is thus expected to rise. A better understanding of the determinants of residential energy demand, in particular of the role of income and the sensitivity of households to changes in energy prices, is crucial in the context of recurrent debates on energy efficiency and fuel poverty. We propose a panel threshold regression (PTR) model to empirically test the sensitivity of French households to energy price fluctuations Ð as measured by the elasticity of residential heating energy prices Ð and to analyze the overlap between their income and fuel poverty profiles. The PTR model allows to test for the non-linear effect of income on the reactions of households to fluctuations in energy prices. Thus, it can identify specific regimes differing by their level of estimated price elasticities. Each regime represents an elasticity-homogeneous group of households. The number of these regimes is determined based on an endogenously PTR-fixed income threshold. Thereafter, we analyze the composition of the regimes (i.e. groups) to locate the dominant proportion of fuel-poor households and analyse their monetary poverty characteristics. Results show that, depending on the income level, we can identify two groups of households that react differently to residential energy price fluctuations and that fuel-poor households belong mostly to the group of households with the highest elasticity. By extension, results also show that income poverty does not necessarily mean fuel poverty. In terms of public policy, we suggest focusing on income heterogeneity by considering different groups of households separately when defining energy efficiency measures. We also suggest paying particular attention to targeting fuel-poor households by examining the overlap between fuel and income poverty. |
| Keywords: | Fuel poverty, Residential energy demand, Price elasticity, Income elasticity, Panel threshold regression |
| JEL: | C23 C24 C26 Q43 Q48 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2018.06&r=ene |
| By: | Imran Shah (University of Bath); Carlie Hiles; Bruce Morley (University of Bath) |
| Abstract: | The aim of this study is to determine the nature of any relationship between renewable energy investment, oil prices, GDP and the interest rate, using a time series approach. We concentrate on three countries with different relationships to the renewable energy industry, with Norway and the UK being oil-exporters for most of the sample and the USA an importer. Following estimation using a VAR model, the results provide evidence of considerable heterogeneity across the countries, with the USA having a strong relationship between oil prices and renewable energy, Norway having a less pronounced relationship and the UK no relationship. These results reflect the fact that the USA is predominantly an oil-importer during most of this sample and supports renewable energy relatively less than the other countries, so changes to renewable energy investment reflect other factors in the market such as the price of substitutes to a greater extent than countries where renewable energy receives more government support. The main policy implications from this study are that in countries where there is little support for the renewable energy sector, investment will be more dependent on macroeconomic aspects as well as substitutes such as oil, therefore the authorities will need to potentially increase support when oil prices are low or when the economy is in a downturn. |
| Keywords: | renewable energy;var;oil price;government policy |
| Date: | 2017–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:eid:wpaper:55212&r=ene |
| By: | Aras KJ; Ole Jakob Sønstebø |
| Abstract: | Energy efficiency in the residential housing market can play an important role in the reduction of global carbon emissions. Energy Performance Certificates (EPCs) provide actors with information that can be used to make better-informed decisions and integrate energy efficiency into their decision making process. In addition, the information from EPCs should provide an incentive for actors in this market to invest in energy efficiency, as it can be assumed that improving the energy performance of a building may lead to higher transaction prices and rents on the market. This paper reports the first Norwegian evidence on the economic implication of EPCs on rental market prices. Applying the multilevel estimation approach to investigate the relation between energy labeling and rental prices in Norway for 860 000 observations, we find strong evidence of a positive price premium. Moreover, the premium is higher for bigger cities than in rural areas. |
| Keywords: | energy performance certificates; Environmental regulation; Housing rental prices; Information and decisions; Real Estate Economics |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_125&r=ene |
| By: | Frauke Urban, Giuseppina Siciliano, Linda Wallbott, Markus Lederer and Anh Dang Nguyen |
| Abstract: | Vietnam has experienced rapid economic growth over the past few decades, as well as growing environmental pressures. The country is therefore pursuing strategies for green transformations, which are the processes of restructuring to bring economies and societies within the planetary boundaries. This article addresses the opportunities, barriers, and trade†offs for green transformations in Vietnam's energy sector and examines them from an energy justice perspective. The article draws on in†depths expert interviews with representatives from government agencies, private firms, academic institutions, and multilateral institutions in Vietnam. The article finds that Vietnam is undergoing efforts to move away from business as usual by promoting renewable energy and energy efficiency, as well as aligning energy and climate plans with national development priorities such as energy security and economic growth. Yet there is a need for more coordinated, integrated approaches and policies that span across the 3 areas that address green transformations in Vietnam: green growth, sustainable development, and climate change. Finally, although key actors seem to be aware and may be critical of major trade†offs such as land grabs for energy projects, the impacts on affected people need to be better understood and mitigated. |
| Keywords: | climate, energy justice, hydro, solar, wind |
| Date: | 2018–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201841&r=ene |
| By: | Rian Hilmawan; Jeremy Clark (University of Canterbury) |
| Abstract: | We investigate the effect of resource dependence on district level income in a rare within-country study for Indonesia, one of the largest resource producing countries in Asia. We follow 390 districts between 2006 and 2015, consider four alternative measures of resouce dependence, and instrument for the potential endogeneity of each using historical measures of oil, gas and coal reserve locations, and changes in the physical production of each resource. Using annual fixed effects and first differenced regressions with and without various instruments, we find no evidence of a "resource curse". Instead, we find robust evidence across all models that dependence as measured by mining's share of output is positively associated with district real per capita income. We find a similar positive relationship between dependence as measured by the share of district government revenues from oil and gas or mining overall, and income in our most credible specifications with instruments. For example, a standard deviation increase in change in district government dependence on oil/gas revenues increases real per capita income by 16 percent over a nine year period. |
| Keywords: | Resource dependence, resource abundance, mining, oil, gas, coal, economic growth, decentralization |
| JEL: | Q32 Q33 Q38 O47 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:18/11&r=ene |
| By: | Alex L. Marten; Richard Garbaccio |
| Abstract: | SAGE is an applied general equilibrium model of the United States economy developed for the analysis of environmental regulations and policies. It is an intertemporal model with perfect foresight, resolved at the sub-national level. Each of the nine regions in the model, representing the nine census divisions,has five households based on income quintiles. A single government agent levies taxes on labor earnings, capital earnings, production, and consumption. As with many applied general equilibrium models used for the analysis of U.S. environmental and energy policies, the baseline is calibrated to the Energy Information Administration's Annual Energy Outlook. The model is solved as mixed complementarity problem (MCP) using the General Algebraic Modeling System (GAMS). |
| Keywords: | general equilibrium, social cost, modeling |
| JEL: | D61 Q52 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201805&r=ene |
| By: | Jörn C. Richstein; Casimir Lorenz; Karsten Neuhoff |
| Abstract: | Short-term electricity markets are key to an efficient production by generation units. We develop a two-period model to assess different bidding formats to determine for each bidding format the optimal bidding strategy of competitive generators facing price-uncertainty. We compare the results for simple bidding, block bidding and multi-part bidding and find that even under optimal simple and block bidding generators face the risk of ex-post suboptimal solutions, whereas in multi-part bidding these do not occur. This points to efficiency gains of multi-part bidding in the presence of uncertainty in electricity markets. |
| Keywords: | market design, electricity markets, bidding formats, auctions |
| JEL: | D44 Q48 L94 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1765&r=ene |
| By: | Lanfranchi, Gabriel; Herrero, Ana Carolina; Palenzuela, Salvador Rueda; Camilloni, Inés; Bauer, Steffen |
| Abstract: | This policy brief argues in favor of a new urban model that harnesses the power that cities have to curb global warming. Such a model tackles fundamental management challenges in the energy, building and transport sectors to promote the growth of diverse and compact cities. Such a model is essential for meeting complex challenges in cities, such as promoting a cohesive social life and a competitive economic base while simultaneously preserving agricultural and natural systems crucial to soil, energy, and material resources. With most of the population living in urban areas, the G20 should recognize the key role that cities play in addressing global challenges such as climate change. Improved measures taken by cities should be an indispensable solution. The G20 Development Working Group, Climate Sustainability Working Group, and Energy Transitions Working Group should incorporate an urban approach to discussions related to climate change. |
| Keywords: | urbanization,climate action,new urban agenda,NDCs,SDGs |
| JEL: | O18 O19 O2 O44 Q01 Q50 Q51 Q54 Q56 Q58 R00 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201870&r=ene |
| By: | Eichner, Thomas; Kollenbach, Gilbert; Schopf, Mark |
| Abstract: | In a two-period model with two groups of countries that extract, trade and consume fossil fuel, a climate coalition fights against climate damage by purchasing or leasing deposits to prevent their extraction, and seeks to manipulate the fuel prices in its favor. The deposit-purchase policy is inefficient since it leaves the first-period climate damage externality non-internalized, which is in stark contrast to the efficiency of the deposit-purchase policy in static models. However, for a proper subset of economies the deposit-lease policy turns out to be efficient. It internalizes the climate damage externalities and makes strategic action in the fuel markets ineffective. Finally, we compare the deposit-lease policy and the deposit-purchase policy. If strategic action pays in the fuel markets and the coalition imports fuel, a transition from the deposit-purchase policy to the deposit-lease policy increases [decreases] total welfare if the climate damage is large [small]. |
| Keywords: | fossil fuel,deposit,deposit-lease policy,deposit-purchase policy,fuel cap |
| JEL: | F55 H23 Q54 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181597&r=ene |
| By: | Thomas Douenne (Paris School of Economics) |
| Abstract: | This paper proposes a micro-simulation assessment of the distributional impacts of the French carbon tax. It shows that the policy is regressive, but could be made progressive by redistributing the revenue through a flat-recycling. However, it would still generate large horizontal distributive effects and harm an important share of low-income households. The determinants of the tax incidence are characterized precisely, and alternative targeted transfers are simulated on this basis. The paper shows that given the importance of unobserved heterogeneity in the determinants of energy consumption, horizontal distributive effects are much more difficult to tackle than vertical ones. |
| Keywords: | Energy taxes, Distributional effects, Demand-System, Micro-simulation |
| JEL: | D12 H23 I32 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2018.05&r=ene |
| By: | Jon Olaf Olaussen |
| Abstract: | Energy Performance Certificates (EPCs) are introduced to give property buyers better information about the energy efficiency of dwellings, and provide incentives to make energy efficient investment. Previous studies on EPCs effect on property value has given divergent results, some studies find that energy label affect property value, while others find that energy labels have low or no effect. The present paper takes it one step further. Indeed, by using data on energy price in combination with transaction data from Oslo, we conclude not only that the energy label – but the energy performance of dwellings in general – has minor or no effect on transaction prices. This result falls in line with what is inferred by several survey studies; at the moment people buy a dwelling, they pay considerably less attention to the energy performance as compared to other factors, like the availability of garden and outdoor space, location, the neighborhood and the size of the property. |
| Keywords: | Energy Efficiency; energy performance certificates; Housing Policy; Price Premium; Valuation |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_50&r=ene |
| By: | Raúl J. Crespo; José A. Zambrano |
| Abstract: | The paper evaluates the effects of oil price shocks on several macroeconomic variables for the Venezuelan economy during the periods 1921-1970 and 1985-2015. Bivariate vector autoregression models are estimated to examine the links in the causal chain between the real price of oil and the macroeconomic variables of interest through a series of Granger non-causality tests. Similarly, different symmetry slope-based tests are conducted to determine whether or not there is empirical evidence supporting the view that the effects of oil price shocks on macroeconomic aggregates are asymmetric. Finally, the time profile described by an economic variable that has been hit by an oil price shock, and the importance of these shocks as a source of short-run fluctuations are analysed through the estimation of a series of impulse response functions and forecast error variance decompositions, respectively. The main findings in the paper can be summarised as follows: firstly, the predictability from real oil price to real output (and other macroeconomic variables) was found to be not significant in the period 1921-1970 while its importance has increased substantially in more recent years. Secondly, evidence of asymmetric effects of oil price shocks was found only for variables such as real output in the oil sector and investment during the years 1985-2015; unexpected oil price increases are significantly correlated with a rise in the economic variables while oil price decreases show not significant correlation. Thirdly, positive association between oil price movements and most macroeconomic variables as well as the relevance of oil price shocks as an important source of business cycle fluctuations in the economy has been observed; although significant differences are found in the responses of these variables to the shock for different time spans. |
| Keywords: | Oil price shocks, Macroeconomic fluctuations, Granger causality. |
| JEL: | E32 |
| Date: | 2018–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:bri:uobdis:18/703&r=ene |
| By: | Louis-Gaëtan Giraudet (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, ENPC - École des Ponts ParisTech); Anna Petronevich (Banque de France - Banque de France - Banque de France); Laurent Faucheux (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) |
| Abstract: | Basic principles of loan pricing predict that the interest rate charged for energy efficiency investment is lower than for conventional investment. We test this hypothesis using a unique dataset of posted interest rates retrieved on a weekly basis from the websites of 15 lending institutions covering the near totality of the French market for unsecured credit. Crucially, our data are immune from sorting bias based on borrower characteristics. We find that the interest rate spread between conventional and energy efficiency investment was negative in 2015 and turned positive in 2016. A similar switch occurred to the spread between home renovation investment and vehicle investment. These results together imply that loans for home energy renovation were consistently charged relatively high interest rates. This can be interpreted as a new barrier to energy efficiency, with adverse consequences for scaling up home energy renovation. One possible explanation is that lenders use project characteristics as a screening device of unobservable borrower characteristics. |
| Keywords: | energy efficiency gap,unsecured loan,home energy retrofit |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01890636&r=ene |
| By: | Louis-Gaëtan Giraudet (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, ENPC - École des Ponts ParisTech); Cyril Bourgeois (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, ENPC - École des Ponts ParisTech, CNRS - Centre National de la Recherche Scientifique); Philippe Quirion (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, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Using an energy-economy model that integrates behavioural and technological detail, we evaluate the impact of key policies-energy efficiency subsidies (tax credits, zero-interest loans, reduced VAT, white certificates), the carbon tax and building codes-on residential energy demand for space heating in France. We find that the carbon tax is the most effective, yet most regressive, instrument. Taking into account all possible interactions among instruments, we find that they imply on average a 10% variation in policy effectiveness. Subsidies save energy at a cost of 0.05-0.08 euro per lifetime discounted kilowatt-hour, with a leverage of 0.9 to 1.4 in 2015, decreasing over time as the potential for energy-saving opportunities is being exhausted. Targeting subsidies towards low-income households, who tend to live in energy inefficient dwellings, increases leverage, thus reconciling economic efficiency and equity. The public cost of subsidies-3 billion euros in 2013-is outweighed by carbon tax receipts from 2025 onwards. Meeting the long-term energy saving targets set by the French Government however requires increasing subsidy rates and maintaining them through 2050. In particular, an order-of-magnitude discrepancy between simulated and observed numbers of zero-interest loans points to cognitive or strategic barriers that need to be removed to increase policy effectiveness. |
| Keywords: | residential buildings,space heating,energy-economy modelling,energy efficiency subsidies,carbon tax,fuel poverty |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01890642&r=ene |
| By: | Persson, Lars (Research Institute of Industrial Economics (IFN)); Tangerås, Thomas (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The world’s first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity market. Welfare improving investment in a multinational electricity market requires accounting for the cross-border effects of capacity expansion. We propose methods to increase voluntary cooperation on international infrastructure projects, with an aim to increase aggregate efficiency and achieve equitable distribution of the gains from market integration. |
| Keywords: | Coalition formation; Cross-border transmission investment; Multilateral bargaining; Nordic electricity market; Shapley Value |
| JEL: | C71 F15 L43 L94 |
| Date: | 2018–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1242&r=ene |
| By: | ITF |
| Abstract: | The use of Liquefied Natural Gas (LNG) as a ship fuel is expected to increase significantly from its current marginal share in the coming years. This will require new facilities where ships can take on board the LNG. Japan is positioning itself as a potential hub in Asia for LNG refuelling. This study assesses the factors that will influence the realisation of that ambition |
| Date: | 2018–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:49-en&r=ene |
| By: | Hrozencik, R. Aaron |
| Keywords: | Natural Resource Economics, Resource and Environmental Policy Analysis, Production Economics |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274322&r=ene |
| By: | Carolin Pommeranz; Bertram Ingolf Steininger |
| Abstract: | In this study, we analyze whether additional payments for energy efficiency are induced by either tenants’ willingness to pay, the market power of landlords, or both. With a German housing dataset from 2011 to 2016, we identify price discrimination for the energy performance certificate using hedonic regressions in a single and double sort setting. Results indicate that a high willingness to pay -– indicated by purchasing power and environmental awareness -– leads to price discrimination effects of 7-8%. These potential extra profits can stimulate investments in energy-based refurbishments by landlords. However, additional market power of landlords –- indicated by housing market conditions –- does not amplify these discrimination effects and is therefore not exploited against tenants. |
| Keywords: | Energy Efficiency; energy performance certificates; green housing; price discrimination |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_134&r=ene |
| By: | Randall Hanegraaf; Nicole Jonker; Steven Mandley; Jelle Miedema |
| Abstract: | Purpose: This study quantifies the impact of the Dutch cash payment system on the environment and on climate change using a life cycle assessment (LCA). It examines both the impact of coins and of banknotes. In addition, it identifies areas within the cash payment system where the impact on the environment and on the climate can be reduced. Methods: The ReCiPe endpoint (H) impact method was used for this LCA. The cash payment system has been divided into five subsystems: the production of banknotes, the production of coins, the operation phase, the end of life of banknotes and the end of life of coins. Two functional units were used: 1) cumulative cash payments in the Netherlands in 2015 and 2) the average single cash payment in the Netherlands in 2015. Input data for all processes within each subsystem was collected through interviews and literature study. Ten key companies and authorities in the cash payment chain contributed data, i.e. the Dutch central bank, the Royal Dutch Mint, a commercial bank, a cash logistic service provider, two cash-in-transit companies, two printing works, an ATM manufacturer and a municipal waste incinerator. Results and discussion: The environmental impact of the Dutch cash payment system in 2015 was 2.35 MPt (expressed in eco points) and its global warming potential (GWP) was 17 million kg CO2 equivalents (CO2e). For an average single cash transaction the environmental impact was 637 µPt and the GWP was 4.6 g CO2e. The operation phase (e.g. energy use of ATMs, transport of banknotes and coins) (64%) and coin production phase (32%) had the largest impact on the environment, while the operation phase also had the largest impact on climate change (88%). Finally, scenario analysis shows that reductions of the environmental impact (51%) and the impact on climate change (55%) could be achieved by implementing a number of measures, namely: reducing the number of ATMs, stimulating the use of renewable energy in ATMs, introducing hybrid trucks for cash transport and matching coins with other countries in the euro area. Conclusions: This is the first study that investigates the environmental impact and GWP of the cash payment system in the Netherlands, by taking both the impact of banknotes and coins into account. The total environmental impact of cash payments in 2015 was 2.35 MPt and their GWP was 17 million kg CO2e. |
| Keywords: | Cash payment system; coins; banknotes; LCA; environmental impact; GWP |
| JEL: | E42 Q54 Q56 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:610&r=ene |
| By: | Xunpeng (Roc) Shi and R. Quentin Grafton |
| Abstract: | We analyse the deficiencies behind the Eastern Australian gas market by applying a framework proposed by the International Energy Agency. We show that this gas market has structural weaknesses that include inadequate supplies at hubs; limited pipeline capacity; predominance of long†term gas supply contracts; deficiencies in design; and difficulties with third party access. We provide five policy actions to help remedy these deficiencies and to help establish a functional gas market. Although our study is limited to Australia, it, nevertheless, provides insights for countries in the Asia Pacific region, which may wish to move towards more competitive gas markets, including trading hubs. |
| Keywords: | competition, hub, LNG, market regulation, prices |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201845&r=ene |
| By: | Germán ROMERO; Andrés ALVAREZ-ESPINOSA; Santiago ARANGO-ARAMBURO; Juan Pablo VALLEJO; Leidy RIVEROS; Sioux MELO; Andrés PINCHAO; Carolina DIAZ; Silvia CALDERON |
| Abstract: | Este documento analiza la incidencia de la política climática internacional en la planeación y el desarrollo del sistema eléctrico de Colombia. Particularmente, estudia las implicaciones que tendría el cumplimiento de las contribuciones nacionalmente determinadas (NDC) presentadas en el Acuerdo de Paris sobre el Sistema Interconectado Nacional. Para lograrlo, este documento se apoyó de las modelaciones realizadas por Arango-Aramburo, et al., (2018), quienes identificaron posibles trayectorias de adaptación del sector eléctrico colombiano, considerando que los escenarios de cambio climático podrían alterar los aportes hídricos a las centrales hidroeléctricas. Los resultados muestran que, ante el incumplimiento del Acuerdo de París, se produciría una disminución en la disponibilidad de generación hidroeléctrica que conduciría a la puesta en marcha de estrategias de adaptación del sistema eléctrico basadas en el uso de combustibles fósiles. En contraste, en el escenario que se implemente el Acuerdo, con su nivel actual de ambición, la disminución en la disponibilidad hídrica en el largo plazo sería menor, y las alternativas de adaptación se dirigirían a emplear energéticos convencionales –carbón, gas– con mecanismo de captura o a diversificar las fuentes de energía hacia las renovables, usando tecnologías como la solar y la eólica. |
| Keywords: | Cambio climático, Acuerdo de París, hidroeléctricas, energías renovables, TIAM-ECN, GCAM, Phoenix, MEG4C |
| JEL: | Q25 Q42 Q54 |
| Date: | 2018–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:col:000118:016835&r=ene |
| By: | ITF |
| Abstract: | This report examines what would be needed to achieve zero CO2 emissions from international maritime transport by 2035. It assesses measures that can reduce shipping emissions effectively and describes possible decarbonisation pathways that use different combinations of these measures. In addition, it reviews under which conditions these measures could be implemented and presents concrete policy recommendations. |
| Date: | 2018–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:47-en&r=ene |
| By: | Audrey Berry (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) |
| Date: | 2018–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01896838&r=ene |
| By: | Aviral Kumar Tiwari (Montpellier Business School, Montpellier, France); Juncal Cunado (University of Navarra, School of Economics, Edificio Amigos, E-31080 Pamplona, Spain); Abdulnasser Hatemi-J (Department of Finance, UAE University, Al-Ain, UAE); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, South Africa) |
| Abstract: | This paper analyzes the oil price-inflation pass-through by studying the relationship between oil prices and U.S. Consumer Price Index (CPI) over the period January 1871- June 2018, at different frequencies, using a wavelet coherency analysis. Our main results suggest that the relationship between oil prices and CPI has changed over the analyzed time period, implying a decrease in the oil price- inflation pass-through over time. Furthermore, this relationship also varies across frequencies, suggesting that the evidence of oil price-inflation pass-through with oil prices leading CPI is weaker in the short-run. |
| Keywords: | Oil prices, Consumer Price Index, Pass-through, Wavelet coherency |
| JEL: | C49 E31 Q43 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:201865&r=ene |
| By: | Rodwell Kufakunesu; Farai Mhlanga |
| Abstract: | In recent years there has been an advent of quanto options in energy markets. The structure of the payoff is rather a different type from other markets since it is written as a product of an underlying energy index and a measure of temperature. In the HJM framework, by adopting the futures energy dynamics, we use the Malliavin calculus to derive the delta and the cross-gamma expectation formulas. This work can be viewed as an extension of the work done, for example by Benth et al. [1]. |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1810.06335&r=ene |
| By: | Donal Brown (SPRU, University of Sussex, UK; The University of Leeds, UK); Paula Kivimaa (SPRU, University of Sussex, UK; Finnish Environmental Institute, Finland); Steve Sorrell (The University of Leeds, UK) |
| Abstract: | Business model innovation is increasingly important for the diffusion of sustainable innovations - particularly those that are systemic in nature. In this paper we outline how systemic innovations, such as whole-house energy ‘retrofit’, may require new business models before they gain widespread adoption. Through a series of semi-structured interviews and document analysis, we undertake a case study of the ‘Energiesprong’ retrofit business model - contrasting this with the incumbent ‘atomised’ market model. We highlight the central role of an innovation intermediary - the Energiesprong ‘market development team’, in this business model innovation, and how Dutch policymakers sought to promote business model innovation through creation of this intermediary. In doing so we develop a novel framework - combining the components of business models with the functions of intermediaries to illustrate this case. Finally, the paper suggests this case and framework could provide lessons for how intermediaries and in turn policymakers might foster business model innovation in other sectors. |
| Keywords: | Business models, Energy efficiency retrofit, Systemic innovation, Business model innovation, Intermediaries, Innovation policy |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-19&r=ene |
| By: | Heiko Kirchhain; Joachim Zietz |
| Abstract: | The study demonstrates that real estate prices react in a statistically significant manner to exogenous announcement effects that may affect regional employment opportunities. We analyze the impact of the announcement of the VW emissions scandal on 9/18/2015 on house prices in the vicinity of Chattanooga, TN, the location of the only current VW production plant in the United States using quantile regression-analysis. Our results indicate that the announcement of the VW emission scandal lowered average, quality adjusted sale prices by an average of 3.3 percent 31 to 60 days after the announcement and by 4.5 percent after 61 to 90 days. There are no statistically significant effects after 90 days. The quantile regressions show that in particular the mid-price range is negatively influenced by this exogenous shock. Our robustness checks show that the price impact increases with proximity to the production plant. |
| Keywords: | Announcement effect; Hedonic house price model; Quantile Regression; VW emission scandal |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_204&r=ene |
| By: | Bjørndal, Endre (Dept. of Business and Management Science, Norwegian School of Economics); Mette, Bjørndal (Dept. of Business and Management Science, Norwegian School of Economics); Cai, Hong (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | In May 2015, the Flow-Based Market Coupling (FBMC) model replaced the Available Transfer Capacity (ATC) model in Central Western Europe to determine the power transfers between countries or price areas. The FBMC model aims to enhance market integration and to better monitor the physical power flows. The FBMC model is expected to lead to increased social welfare in the day-ahead market and more frequent price convergence between different market areas. This paper gives a discussion of the procedures of market clearing and a mathematical formulation of the FBMC model. Moreover, we discuss the relationships between the nodal pricing, ATC, and FBMC models. In addition to an illustrative 3-node example, we examine the FBMC model in two test systems and show the difficulties in implementing the model in practice. We find that a higher social surplus in the day-ahead market may come at the cost of more re-dispatching in real time. We also find that the FBMC model might fail to relieve network congestion and better utilize the power resources, even when compared to the ATC model. |
| Keywords: | OR in Energy; European power market; Flow-based model; ATC model; Day-ahead market |
| JEL: | Q00 |
| Date: | 2018–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2018_014&r=ene |
| By: | ITF |
| Abstract: | This report examines the factors that have put Sweden at the forefront of decarbonisation of maritime transport, and how other countries could learn from this success story. It details Sweden's efforts to decarbonise its shipping industry and sheds light on remaining challenges and potential solutions to achieve zero-carbon shipping. |
| Date: | 2018–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:46-en&r=ene |
| By: | Yvonne Feucht; Katrin Zander |
| Keywords: | Agribusiness |
| Date: | 2017–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi18:276930&r=ene |
| By: | Hélène Le Cadre (EnergyVille); Enrique Puente; Hanspeter Höschle |
| Abstract: | In this paper, we consider consumers and prosumers who interact on a platform. Consumers buy energy to the platform to maximize their usage benefit while minimizing the cost paid to the platform. Prosumers, who have the possibility to generate energy, self-consume part of it to maximize their usage benefit and sell the rest to the platform to maximize their revenue. Product differentiation is introduced and consumers can specify preferences regarding locality, RES-based generation , and matchings with the prosumers. The consumers and prosumers' problems being coupled through a matching probability, we provide analytical characterizations of the resulting Nash equilibrium. Assuming supply-shortages occur, we reformulate the platform problem as a consensus problem that we solve using Alternating Direction Method of Multipliers (ADMM), enabling minimal information exchanges between the nodes. On top of the platform, a trust-based mechanism combining exploitation of nodes with good reputation and exploration of new nodes, is implemented to determine the miner node which validates the transactions. A case study is provided to analyze the impact of preferences and miner selection dynamic process. |
| Date: | 2018–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01874798&r=ene |
| By: | Paloma Taltavull de La Paz; Ion Anghel; Stanley McGreal; Costin Ciora |
| Abstract: | This paper analyses the role of business cycle to determine TOM in Bucharest housing market. It explores the relationship between TOM and the price levels in order to identify whether TOM varies depending on the housing quality (revealed by price level) and with the cyclical moment. The database covers 2013-2016 which includes the economic recovery after financial crisis. Data contains more than 32 thousand of microdata with housing transaction in Bucharest city including information about the energy efficiency level in the building. |
| Keywords: | business cycle; Housing Prices |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_143&r=ene |
| By: | ITF |
| Abstract: | This report reviews port-based incentive schemes to reduce shipping emissions, such as environmentally differentiated port fees. Greenhouse gas emissions from shipping currently represent around 2.6% of total global emissions, but this share could more than triple by 2050. Ports have a crucial role to play in facilitating the reduction of shipping emissions, alongside the ship operators themselves. Which incentives are currently used? What are their impacts? How could positive effects be increased? The report also explores lessons learned that could inform international negotiations on the reduction of shipping greenhouse gas emissions. |
| Date: | 2018–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:48-en&r=ene |