nep-ene New Economics Papers
on Energy Economics
Issue of 2018‒12‒17
37 papers chosen by
Roger Fouquet
London School of Economics

  1. International and sectoral variation in industrial energy prices 1995-2015 By Sato, Misato; Singer, Gregor; Dussaux, Damien; Lovo, Stefania
  2. Reconciling Emissions Trading and the Promotion of Renewable Energy By Sebastian Schaefer
  3. Subsidizing Renewable Energy: Higher Welfare by lower depreciation costs for fossil power plants? By Sebastian Schaefer
  4. Climate Policy and Resource Extraction with Variable Markups and Imperfect Substitute By Malik Curuk; Suphi Sen
  5. Small systems, big targets: power sector reforms and renewable energy development in small electricity systems By Rabindra Nepal; Lawrence Cram; Tooraj Jamasb; Anupama Sen
  6. How economic growth and energy consumption contribute to environmental degradation? By Németh-Durkó, Emilia
  7. Are Emission Performance Standards Effective in Pollution Control? Evidence from the EU's Large Combustion Plant Directive By Puja Singhal
  8. Revenue and efficiency in pollution permit allocation mechanisms By Peyman Khezr; Ian A. MacKenzie
  9. Distributional Impacts of Climate Mitigation Policies - a Meta-Analysis By Nils Ohlendorf; Michael Jakob; Jan Christoph Minx; Carsten Schröder; Jan Christoph Steckel
  10. Investments on the Norwegian Continental Shelf - An Empirical Analysis By Pernille Parmer; Steinar Strøm; Helge Sandvig Thorsen; Inger Ubbe; Bjørnar Andreas Kvinge
  11. Market power and spatial arbitrage between interconnected gas hubs ☆ By Olivier Massol; Albert Banal-Estañol
  12. Exploring sustainable energy future in Reunion Island By Sandrine Selosse; Olivia Ricci; Sabine Garabedian; Nadia Maïzi
  13. “Major Reforms in Electricity Pricing: Evidence from a Quasi-Experiment” By Xavier Labandeira; Jose M. Labeaga; Jordi J. Teixidó
  14. Foreign Demand and Greenhouse Gas Emissions: Empirical Evidence with Implications for Leakage By Geoffrey Barrows; Helene Ollivier
  15. Electricity regulation and economic growth By María Teresa Costa-Campi; Jose García-Quevedo; Elisa Trujillo-Baute
  16. Prices versus Quantities Reassessed By Larry S. Karp; Christian P. Traeger
  17. Supply flexibility in electricity markets By Crampes, Claude; Renault, Jérôme
  18. The Introduction of Wind Power Generation in a Local Community: An Economic Analysis of Subjective Well-Being Data in Ch?shi City By Yushi Kunugi; Toshi H. Arimura; Miwa Nakai
  19. Quince cuestiones sobre la regulación de la energía eléctrica en España By Diego Rodríguez Rodríguez
  20. On Sharing Responsibilities for Pollution Embodied in Trade By Bontems, Philippe; Calmette, Marie-Françoise
  21. Towards sustainable data centres: Novel internal network technologies leading to sustainable cost and energy consumption in data centres in The Netherlands By van den Berg, Bob; Sadowski, Bert M.; Pals, Luuk
  22. Informe nacional de monitoreo de la eficiencia energética de Costa Rica By -
  23. Oil Cycle Dynamics and Future Oil Price Scenarios By Garcia, Luis Enrique; Illig, Aude; Schindler, Ian
  24. Elektromobilität 2035 : Effekte auf Wirtschaft und Erwerbstätigkeit durch die Elektrifizierung des Antriebsstrangs von Personenkraftwagen By Mönnig, Anke; Schneemann, Christian; Weber, Enzo; Zika, Gerd; Helmrich, Robert
  25. Why do manufacturing industries invest in energy R&D? By María Teresa Costa-Campi; Jose García-Quevedo
  26. Information Aggregation in Emissions Markets with Abatement By Estelle Cantillon; Aurelie Slechten
  27. Commercialization of the scientific developments on the example of the projects implementation in small energy By Yury Dubinin; Ekaterina Dubinina
  28. Apports naturels en eau dans les barrages-réservoirs et règle de Hotelling By Crampes, Claude; Moreaux, Michel
  29. Operationalising selected reporting and flexibility provisions in the Paris Agreement By Jane Ellis; Sina Wartmann; Sara Moarif; Marcia Rocha
  30. Tracking progress towards NDCs and relevant linkages between Articles 4, 6 and 13 of the Paris Agreement By Manasvini Vaidyula; Marcia Rocha
  31. But What Does it Mean? Competition between Products Carrying Alternative Green Labels when Consumers are Active Acquirers of Information By Anthony Heyes; Sandeep Kapur; Peter W. Kennedy; Steve Martin; John W. Maxwell
  32. Impact of Decentralized Electrification Projects on Sustainable Development: A Meta-Analysis By Jean-Claude Berthelemy; Arnaud Millien
  33. Smart Technologies Applied to the Energy Sector. Renewable Energy Expansion Strengthened by Digital Communications and Distributed Ledger Technologies? By Serrano-Calle, Silvia; Delarue, Erik
  34. Developing low carbon port potential: Cost benefit & carbon footprint analyses By Jahn, Malte; Wedemeier, Jan
  35. Spatial Integration of Natural Gas Markets: a Literature Review By Ekaterina Dukhanina; Olivier Massol
  36. Threshold Regressions for the Resource Curse By Djamel KIRAT; Nicolas CLOOTENS
  37. Climate change challenges for central banks and financial regulators By Campiglio, Emanuele; Dafermos, Yannis; Monnin, Pierre; Ryan-Collins, Josh; Schotten, Guido; Tanaka, Misa

  1. By: Sato, Misato; Singer, Gregor; Dussaux, Damien; Lovo, Stefania
    Abstract: Energy price rises for industry are a major political concern. Access to cheap energy is often considered a key factor for the competitiveness of industry. To enable international comparisons, and to foster further empirical research on the impacts of energy price or tax differentials on a wide range of outcomes, such as international trade and investment patterns, we construct sector level energy prices for 12 industrial sectors in 48 countries for the period 1995 to 2015. Our prices are constructed as weighted averages of fuel-specific prices by fuel consumption. We provide guidelines for the use of our energy price data, which is made available for download, as well as a set of stylized facts on major trends and variations, and illustrative applications.
    Keywords: industrial energy prices; industrial competitiveness; climate policy; carbon pricing
    JEL: H23 Q41 Q48 Q58
    Date: 2018–11–15
  2. By: Sebastian Schaefer (University of Siegen)
    Abstract: The EU emissions trading system (ETS) and the promotion of renewable energy are overlapping regulations. Although the resulting early development of renewables is associated with several advantages such an overlap may violate the path of optimal abatement. Subsidies may cause a too high share of renewables in electricity generation. This results in additional expenses and efficiency losses. We develop a control mechanism serving as thumb rule to limit additional expenses. Under optimal implementation the rule signicantly restricts additional expenses to a maximum of about 4 % of total abatement costs in worst case. This result holds for marginal abatement costs (MAC) approximated by any conical combination of weak convex power functions. This means high exibility of MAC leading to high validity of the results. Consequences of a non-optimal implementation of the mechanism are examined as well. An empirical application to German data shows that the promotion of renewable energy has not yet violated the path of optimal abatement. However, data is restricted because the ETS has not induced an additional emission reduction since 2010.
    Keywords: Overlapping Regulations, Promotion of Renewable Energy, Emissions Trading
    JEL: D61 H23 Q42 Q48 Q54
    Date: 2018
  3. By: Sebastian Schaefer (University of Siegen)
    Abstract: There is a broad agreement that renewable energy sources (RES) will play an important role to abate CO2 emissions but there is a contentious debate about the economic sense to promote RES via subsidies. Many static analyses conclude that subsidizing RES ties up capital which could have been used more efficiently by other reduction strategies with lower marginal abatement costs (MAC). Dynamic models, in contrast, emphasize learning effects which lead to lower MAC of RES. In particular a start-up funding to induce an early market entry of RES may be advantageous to benefit from reduced MAC. To our knowledge there has been no attention so far to the effects of renewables’ promotion to the necessary shut down of power plants based on fossil energy sources (FES). With respect to the achievement of a certain long-term reduction objective an early market entry of RES allows a longer transition from FES to RES. This also means more time to shut down fossil-based power plants which can reduce respective depreciation costs. We use an endogenous growth model to focus on the trade off between the described decrease of depreciation costs and the capital tie-up of a subsidization of RES. We find that subsidizing RES can indeed lead to a higher welfare solely because of reduced depreciation costs. We conclude that an optimal strategy to reduce emissions should consider both the increase of renewable and the decrease of fossil electricity generation.
    Keywords: Renewable Energy, Transition Period, Welfare Effects
    JEL: H23 O21 O44 Q42 Q43 Q48
    Date: 2018
  4. By: Malik Curuk; Suphi Sen
    Abstract: We develop a resource extraction model that features imperfect substitution and endogenous market power. We analytically characterize the effect of anticipated future demand shocks on the resource extraction path and show that endogenous market power can dampen the adverse consequences of climate policies due to intertemporal carbon leakages compared to the perfect or monopolistic competition benchmarks. Next, we show that under constant elasticity of substitution between alternative energy resources, resource owner's current market share and reserves-to-extraction ratio are sufficient statistics to calculate the degree of intertemporal leakage. Applying data on OPEC, we find a minor increase in current extraction due to an anticipated increase in the productivity of alternative energy technologies.
    Keywords: Climate policy; variable markups; nonrenewable energy resources; imperfect competition; imperfect substitution
    JEL: Q48 L10 H23
    Date: 2018
  5. By: Rabindra Nepal (CDU Business School, Charles Darwin University); Lawrence Cram (Charles Darwin University); Tooraj Jamasb (Durham University Business School); Anupama Sen (Oxford Institute for Energy Studies)
    Abstract: The dominant focus of much policy attention of late has been on the suitability of electricity market reform carried out under the ‘standard’ or prescriptive approach – the end point of which is market liberalization – for the integration of intermittent renewables. There is now a growing consensus around the argument that traditional energy-only electricity markets where prices are based on system marginal cost cannot function efficiently with both fossil fuels and renewables, potentially resulting in market disruptions and price volatility. Consequently, most policy discussion has focused on finding ways to successfully integrate the two through adopting advanced competitive solutions (such as the use of capacity markets in addition to energy-only markets) in larger systems. We however argue that the effectiveness of competition is limited by the size of the system – i.e., there is a minimum threshold size (and other characteristics such as tropical locations, lack of access, and the prevalence of remote consumers) under which competition will not produce expected outcomes, and require distinctive policy solutions. This paper contributes to the policy discourse by discussing the reform of small electricity systems to integrate renewable energy via the means of three case studies: Nicaragua, El Salvador, and their application to Australia’s Northern Territory. The paper draws some policy lessons that can be considered for other small electricity systems in island economies and territories across Africa, the Caribbean, and the Asia-Pacific, that are pursuing a triad of objectives including electricity sector reform, large-scale renewables development and improving energy access.
    Keywords: Electricity, reforms, renewables, island economies, territories
    JEL: D04 L94 Q48 L51
    Date: 2017
  6. By: Németh-Durkó, Emilia
    Abstract: This paper explores the relationship between environmental degradation (measured by the ratio of carbon dioxide emissions), economic growth and energy consumption in case of Hungary over the period of 1990-2014 by annual data. To ascertain the integrating properties of the variables, the Zivot-Andrews unit root test was employed. The ARDL bounds testing approach and Gregory-Hansen structural break test have been adopted to test the relationship between the variables in the presence of structural break. Structural breaks occurred in the first half of the 2000s in the series of carbon dioxide emissions and energy consumption, while economic growth has a structural break in the middle of 1990s. My research shows that carbon dioxide emissions are influenced in several ways by the above-mentioned factors. The impact of energy consumption is time variant on carbon dioxide emissions and statistically significant in the short and long term. One-year delay, increasing in energy consumption results decline in carbon dioxide emissions while increasing in level of energy consumption is linked with increases in economic growth. The economic growth also has an important role in carbon dioxide emissions. Its increasing contributes to reduce carbon dioxide emissions in the short and long run. It is concluded that economic growth and energy consumption are in the background of the air quality and economic growth mitigates carbon dioxide emissions.
    Keywords: cointegration, energy, economic growth, ARDL bounds test
    JEL: O13 O40 Q54 Q56
    Date: 2018–11–26
  7. By: Puja Singhal
    Abstract: This paper explores the extent to which the Large Combustion Plant (LCP) Directive succeeded in mitigating local air pollutants from thermal electricity generating plants in the European Union. Using yearly data on plant-level operations from the EEA, we investigate whether emissions limits on stack concentrations were effective in cleaning emissions from existing combustion plants and a catalyst for improved environmental performance of new installations. We take advantage of the discontinuities in regulation status to show that the emission performance standards led to sizeable declines in SO2, NOx, and particle dust concentrations at the stack level from older combustion plants. We also find suggestive evidence of anticipation effects from newer plants in response to tighter emission standards.
    Keywords: Air pollution, emission standards, large combustion plant, EU
    JEL: Q53 Q58 K32
    Date: 2018
  8. By: Peyman Khezr (School of Economics, University of Queensland, Brisbane); Ian A. MacKenzie (School of Economics, University of Queensland, Brisbane)
    Abstract: The most contentious design issue within pollution markets is the choice of initial allocation mechanism. Within this debate, auctions have become the predominant method of initial permit allocation. Although auctions provide potential gains—such as revenue generation, allocative efficiency and clear price discovery—these benefits are rarely fully realized due to firms submitting non-truthful bids. We propose a mechanism that can improve on existing auctions. In our design the regulator determines the supply (up to an upper bound) once all bids have been submitted. This simple and applicable design incites truthful revelation of firms’ private abatement costs, maximizes revenue, and allocates the permits efficiently. This design is relevant to all existing permit auctions including those in the European Union Emissions Trading Scheme (EU-ETS), Regional Greenhouse Gas Initiative (RGGI), and the California Cap-and-Trade Program.
    Keywords: multi-unit auction, pollution permit
    JEL: D44 Q52
    Date: 2018–11–23
  9. By: Nils Ohlendorf; Michael Jakob; Jan Christoph Minx; Carsten Schröder; Jan Christoph Steckel
    Abstract: Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine the sources of variation between these outcomes, we apply an ordered probit meta-analysis framework. Based on a comprehensive, systematic and transparent screening of the literature, our sample comprises 53 empirical studies containing 183 effects in 39 countries. Results indicate a significantly increased likelihood of progressive distributional outcomes for studies on lower income countries and transport sector policies. The same applies to study designs that consider indirect effects, behavioral adjustments of consumers or lifetime income proxies. Future research on different types of revenue recycling schemes and lower income countries would further contribute to the literature.
    Keywords: Meta-analysis, Environmental policies, Distributional impacts, Inequality, Climate change mitigation, Households, Environmental taxes, Redistribution, Poverty
    JEL: H23 Q52 Q58
    Date: 2018
  10. By: Pernille Parmer; Steinar Strøm; Helge Sandvig Thorsen; Inger Ubbe; Bjørnar Andreas Kvinge
    Abstract: Investments in oil and gas fields are regressed against variables on panel field-data from the start of oil and gas production on the Norwegian continental shelf in 1968 until 2016. Two alternative models track the observed investments aggregated across fields from 1970 until 2016 relatively accurately, except for the period 2012-2015. These years were marked by an almost world-wide recession in the aftermath of the financial crisis in 2008 and by the increase in production of shale-gas in the US. However when using data until 2010 in the estimation of the model, the fixed effect regression predicts rather accurately the development of aggregated across fields from 2011-2016. By using data only from 1995 until 2016 in the estimation of the fixed effect model the observed development after 2011 is also well tracked. The models imply rather strong and significant effect of the lagged oil price (Brent Blend) on investments. When data for the shorter period 1995-2016 is used, we get significant asymmetric price effects on investments, implying that an increase in the oil price has more positive effects on investments in periods with rising oil prices. In periods with declining prices the price history has a rather strong dampening impact on the effects of prices increases on investment. We also find strong and significant negative effects of lower expected remaining reserves on investments.
    Keywords: oil and gas investments, prices of oil, panel-data
    JEL: C23 D22
    Date: 2018
  11. By: Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Albert Banal-Estañol (University of London [London])
    Abstract: This paper examines the performance of the spatial arbitrages carried out between two regional markets for wholesale natural gas linked by a pipeline system. We develop a new empirical methodology to (i) detect if these markets are integrated, i.e., if all the spatial arbitrage opportunities between the two markets are being exploited, and (ii) decompose the observed spatial price differences into factors such as transportation costs, transportation bottlenecks, and the oligopolistic behavior of the arbitrageurs. Our framework incorporates a new test for the presence of market power and it is thus able to distinguish between physical and strategic behavior constraints on marginal cost pricing. We use the case of the "Interconnector" pipeline linking Belgium and the UK as an application. Our empirical findings show that all the arbitrage opportunities between the two zones are being exploited but confirm the presence of market power. ☆ This paper has greatly benefited from the judicious comments of two anonymous referees. We are also greatly indebted to Michel Le Breton, Derek Bunn and Steven Gabriel for insightful suggestions. We have also benefited from helpful discussions with Frédéric Lantz, Yves Smeers, conference participants at ISEFI (Paris, 2016) and the 9 th Conference on Energy Markets (Toulouse, 2014) and seminar participants at the universities of Cambridge, Paris-Dauphine and Grenoble. Of course, any remaining errors are ours.
    Keywords: Law of one price,market integration,spatial equilibrium,interconnectors,Natural gas
    Date: 2018–01–01
  12. By: Sandrine Selosse (CMA - Centre de Mathématiques Appliquées - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University); Olivia Ricci (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de la Réunion); Sabine Garabedian (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de la Réunion); Nadia Maïzi (CMA - Centre de Mathématiques Appliquées - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University)
    Abstract: To cope with dependency of imported fossil fuels, high shares of renewable energy sources are expected to expand in electricity production in Small Islands. The case of Reunion Island that aims at having an electricity generation based to 100% on renewable energies by 2030 is analyzed using a bottom-up cost-optimization TIMES model. Future production mixes are providing according to different scenarios focusing on alternatives renewable energy sources. The case of Reunion Island provides a good example for the definition of an energy policy fostering renewable technologies to supply electricity and highlighting the crucial role of incentives policies.
    Keywords: Long-term modelling (TIMES),Power system,Island renewable energy transition
    Date: 2018–12
  13. By: Xavier Labandeira (Rede, Universidade de Vigo and Economics for Energy); Jose M. Labeaga (Departamento de Análisis Económico II, UNED and Economics for Energy.); Jordi J. Teixidó (Department of Econometrics-Public Policy, Universitat de Barcelona)
    Abstract: The global energy mix is being redefined, and with it the power industry’s cost structure. In many countries, electricity-pricing systems are being revamped so as to guarantee fixed-cost recovery, often by raising the fixed charge of two-part tariff (TPT) schemes. However, consumer misperception of TPTs threatens to undermine the policy’s outcome and puts the sector’s much-needed transformation in jeopardy. We conduct a quasi-experiment with data from a major electricity price reform recently implemented in Spain and find robust evidence that consumers are failing to distinguish between fixed and marginal costs. As a result, the policy goal of cost recovery is not being achieved.
    Keywords: Fixed-cost recovery, Residential electricity demand, Renewables, quasi-experiment,two-part tariff. JEL classification:C99, D12, L11, L94, L98, Q41, Q48
    Date: 2018–12
  14. By: Geoffrey Barrows (Ecole Polytechnique); Helene Ollivier (PSE)
    Abstract: With asymmetric climate policies, regulation in one country can be undercut by emissions growth in another. Previous research finds evidence that regulation erodes the competitiveness of domestic firms and leads to higher imports, but increased imports need not imply increased emissions if domestic sales are jointly determined with export sales or if emission intensity of manufacturing adjusts endogenously to foreign demand. In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets. Using a panel of large Indian manufacturers and an instrumental variable strategy, we find that foreign demand growth leads to higher exports, domestic sales, production, and CO2 emissions, and slightly lower emission intensity. The results imply that a representative exporter facing the average observed foreign demand growth over the period 1995-2011 would have increased CO2 emissions by 1.39% annually as a result of foreign demand growth, which translates into 6.69% total increase in CO2 emissions from Indian manufacturing over the period. Breaking down emission intensity reduction into component channels, we find some evidence of product-mix effects, but fail to reject the null of no change in technology. Back of the envelope calculations indicate that environmental regulation that doubles energy prices world-wide (except in India) would only increase CO2 emissions from India by 1.5%. Thus, while leakage fears are legitimate, the magnitude appears fairly small in the context of India.
    Keywords: leakage, trade and environment, product mix, technological change
    JEL: F14 F18 Q56
    Date: 2018–11
  15. By: María Teresa Costa-Campi (University of Barcelona & IEB); Jose García-Quevedo (University of Barcelona & IEB); Elisa Trujillo-Baute (University of Warwick, University of Barcelona & IEB)
    Abstract: The main objective of this paper is to analyse the effect of electricity regulation on economic growth. Although the relationship between electricity consumption and economic growth has been extensively analysed in the empirical literature, this framework has not been used to estimate the effect of electricity regulation on economic growth. Understanding this effect is essential for the assessment of regulatory policy. Specifically, we assess the effects of two major regulations, renewable energy promotion costs and network cost, on electricity consumption and growth. A dataset for the period 2007-2013 and 22 European countries was compiled based on CEER reports and EUROSTAT databases. The results of the empirical analysis show that the two regulation instruments have a negative effect on electricity consumption and economic growth and provide estimates of their effects on growth in quantitative terms.
    Keywords: Electricity regulation, network costs, renewable energy, GDP
    Date: 2017
  16. By: Larry S. Karp; Christian P. Traeger
    Abstract: “Prices versus quantities” (Weitzman 1974), a hugely influential paper, is widely cited (and taught) in current debates about the best policy to reduce greenhouse gas emissions. The paper’s criterion for ranking policies suggests that technological uncertainty favors taxes over cap and trade. Weitzman models a flow pollutant, but greenhouse gases are persistent. Stock pollutants require a fundamental change in the ranking criterion. Innovations’ persistence and their gradual diffusion both favor the use of cap and trade. Numerical results show that the case for cap and trade as a means of reducing greenhouse gas emissions is stronger than widely believed.
    Keywords: policy instruments, pollution, climate change, taxes, quantities, regulation, uncertainty, cap and trade, technology
    JEL: Q00 Q50 H20 D80
    Date: 2018
  17. By: Crampes, Claude; Renault, Jérôme
    Abstract: The development of non-dispatchable renewable sources of energy requires more flexible reliable thermal equipment to match residual demand. We analyze the advantages of delaying production decisions to benefit from more precise information on states of the world, at the expense of higher production costs in a two-period framework where two technologies with different flexibility characteristics are available. We determine firstbest production levels ex ante and ex post, that is, when demand is still random and is known with certainty respectively. We then show that, under perfect competition, first best can be implemented indifferently either by means of ex post state-contingent markets or by means of a day-ahead market followed by adjustment markets. By contrast, when the industry is imperfectly competitive, the two market designs are not equivalent.
    JEL: C72 D24 L23 L94
    Date: 2018–07
  18. By: Yushi Kunugi (Research Institute for Environmental Economics and Management, Waseda University, Tokyo, Japan); Toshi H. Arimura (Faculty of Political Science and Economics, Waseda University, Tokyo, Japan, and Research Institute for Environmental Economics and Management, Waseda University, Tokyo, Japan); Miwa Nakai (Research Institute for Environmental Economics and Management, Waseda University, Tokyo, Japan)
    Abstract: In this study, we analyze the external effects of wind turbines, which are often considered detrimental to the promotion of wind power generation. Understanding these externalities is essential for reaching a consensus with residents who live near the planned site of a wind turbine. We conducted a mail survey in Ch?shi City in Chiba Prefecture to examine the external effects of wind turbines, adopting a subjective well-being index to measure respondents f well-being. Regression analysis suggests that a view of wind power turbines has a positive effect on the subjective well-being of local residents. Moreover, results indicate that such well-being increases with increasing distance from wind turbines. In other words, except for scenic elements, we found that wind turbines are not always considered desirable by residents. As such, it is important to further clarify the external influence of wind turbines as well as other facilities in the neighborhood.
    Keywords: Subjective Well-Being, Wind Turbines, Renewable Energy, Externalities, Life Satisfaction Approach, Local Residents
    JEL: D62 I31 R11 Q20 Q51
    Date: 2018–11
  19. By: Diego Rodríguez Rodríguez
    Abstract: En este trabajo se da respuesta a un amplio conjunto de cuestiones sobre los objetivos e instrumentos de la regulación económica en el ámbito del sector de la energía eléctrica. Con esa finalidad, se comienza describiendo la estructura del sector y la aproximación regulatoria que se ha utilizado para la introducción de competencia en estas actividades. Una parte del trabajo analiza la forma mediante la que se retribuyen las actividades reguladas, particularmente las de transporte y distribución, así como la generación renovable. Esto permite introducir la discusión sobre la repercusión de los costes del sistema a los consumidores, describiéndose también con detalle el sistema de liquidaciones y las condiciones de su equilibrio financiero. Otra parte de las cuestiones analizan diversos aspectos de interés, como el cierre nuclear o la discusión sobre el autoconsumo, introduciendo también los principales retos regulatorios en el contexto de transición energética. Por último, un conjunto de cuestiones aborda la conexión entre la política regulatoria en el ámbito de la energía y la política de la competencia, así como las principales conexiones entre la regulación en electricidad y en gas, para terminar reflexionando sobre la intensidad de la regulación en el sector energético.
    Date: 2018–12
  20. By: Bontems, Philippe; Calmette, Marie-Françoise
    Abstract: In this article, we propose a new way of assessing environmental responsibility at the country level, taking into account their trade balance in terms of carbon. Starting from the fact that the approach based on the respective responsibilities of the producer and the consumer, which are widely promoted and used in the literature, each have their own limitations, we introduce a modiÖed formula for the net trade balance of carbon at the country level. To do this, we examine the extent to which trade áows for a given country increase or decrease global emissions relative to the virtual situation where imports would have been produced in the consumer country. We argue that it would be fair for countries to retain responsibility for the additional emissions they create when trading. We then discuss the incentives provided by the modiÖed liability rule to reduce emission intensity and extend our formula to include trade in intermediate goods. Finally, we illustrate our concept using World Bank and OECD data on trade áows and emission intensity ratios. Finally, we characterize six groups of countries according to the respective order of their producer, consumer and our new liability rule.
    JEL: C67 F18 Q54
    Date: 2018–10
  21. By: van den Berg, Bob; Sadowski, Bert M.; Pals, Luuk
    Abstract: Information technology (IT), and in particular data centres, consume a huge amount of energy, which has negative influence on climate change. Therefore, it is important to look at the sustainability of data centres, especially in the Netherlands as one of the major location of these centres in Europe. In order to examine the extent to which data centres are sustainable and energy efficient, a comprehensive total cost of ownerships (TCO) analysis is undertaken to get better insights into the different costs components and technological opportunities for further reductions. Even if there are already a number of TCO studies on data centres, there have been none dealing with the effects of technological change on the networking part of data centres. However, this can be considered as a serious shortcoming of current research as technological change will have (cost-saving) effects on the networking part of data centres and data traffic will have an impact on the rack. After examining technological change by comparing different network technologies (ethernet, glass fibre, and plastic optical fiber (POF) in data centres, our TCO model studies improvements regarding costs, energy reduction, and improved sustainability of these three technologies. We conclude that the implementation of glass fibre or POF in a data centre can provide cost improvements amounting to about 1% per year. Looking at the energy consumption of the network part, a reduction of approximately 20% for glass fibre and 40% for POF can be reached. Therefore, the model demonstrated that changing current network technologies within the data centre will result in a decrease of energy consumption and total cost ownership.
    Date: 2018
  22. By: -
    Abstract: El Informe Nacional de Monitoreo de la Eficiencia Energética de la República de Costa Rica fue preparado como parte de las actividades llevadas a cabo por la Secretaría de Planificación del Subsector Energía (SEPSE) del Ministerio de Ambiente y Energía (MINAE) de Costa Rica en el marco del Programa de la Base de Indicadores de Eficiencia Energética (BIEE), coordinado por la CEPAL con la contribución de la Agencia Alemana para la Cooperación Internacional (GIZ) y el apoyo técnico de la Agencia Francesa del Medio Ambiente y la Gestión de la Energía (ADEME). Este informe analiza las tendencias de la eficiencia energética y el consumo de energía para los sectores industrial, transporte, servicios, residencial y agropecuario en Costa Rica. Los indicadores propuestos por el programa BIEE constituyen una herramienta útil para el monitoreo de los programas y el análisis de las políticas de eficiencia energética.
    Date: 2018–12–07
  23. By: Garcia, Luis Enrique; Illig, Aude; Schindler, Ian
    Date: 2018–11
  24. By: Mönnig, Anke; Schneemann, Christian (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Weber, Enzo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Zika, Gerd (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Helmrich, Robert
    Abstract: "This study focuses on the economic effects of the phenomenon of electrification of the powertrain in automobiles (e-mobility). This development involves considerable challenges at enterprises and the political level. Using the scenario technique, a number of assumptions were made and integrated into the analytical tool QINFORGE. In the beginning of the scenario, the underlying assumptions have a positive effect on the economic development. However, at the long run they lead to a lower GDP and level of employment. The change in technology leads to 114.000 job cuts in the end of 2035. The whole economy loses nearly 20 billion Euro (0.6 % of the GDP). In the scenario we assume a share of only 23 percent of electric compared to all cars in 2035. The total turnover of the workforce resulting from the electrification of the powertrain of automobiles will reach 150.000 in the year 2035. The electrification of the power-train will especially affect skilled workers negatively. The demand for specialist and expert activities also decreases with a time delay. In the long run there are negative effects for all requirement levels. A much higher market penetration could lead to stronger economic effects. Furthermore, a higher market share of domestic produced cars and traction batteries could generate more positive economic effects. At the moment this scenario includes a lot of assumptions where further research is necessary. This applies in particular to the position of the supplier industry, the distinction between different types of fuel and the expansion of other mobility sectors." (Author's abstract, IAB-Doku) ((en))
    Date: 2018–11–29
  25. By: María Teresa Costa-Campi (University of Barcelona & IEB); Jose García-Quevedo (University of Barcelona & IEB)
    Abstract: Energy R&D can have major social and economic impacts and is a critical factor in addressing the challenges presented by climate change mitigation policies. As well as the energy utilities themselves, firms in other sectors also invest in energy R&D; however, while various studies have examined the determinants of R&D in the former, there are no analyses of energy R&D drivers in other industries. This paper seeks to fill this gap by examining the determinants of investment in energy R&D in non-energy industries. We focus on manufacturing industries where we can differentiate between energy and non-energy R&D related expenditure. The empirical analysis is carried out for 21 sectors in Spain for the period 2008–2013. To overcome problems of data availability, we construct a comprehensive database from several surveys. The data show the importance of taking into account the efforts devoted to energy R&D by the manufacturing sectors in order to have more complete information about the total investment made in energy R&D. The results of the estimations indicate the importance of the energy R&D developed by firms that supply the energy utilities.
    Keywords: Energy R&D, energy demand, energy efficiency, panel data
    JEL: Q40 O30 O38
    Date: 2017
  26. By: Estelle Cantillon; Aurelie Slechten
    Abstract: A key policy argument in favor of emissions markets (relative to command-and-control types of regulation) is their ability to aggregate dispersed information and generate price signals to guide firms' trading and abatement decisions. We investigate this argument in a multi-period model where firms receive noisy private signals about their current period emissions and privately observe their previous period emissions before this information is made public to the rest of the market. Firms respond to information by trading and abating emissions. We show that there exists a rational expectations equilibrium that fully aggregates firms' private information, justifying the policy argument in favor of emissions markets, in the absence of other frictions. We also derive predictions about how prices should be reacting to new private or public information and show that the possibility of abatement dampens the impact of shocks on prices. Finally, we show that the information aggregation result breaks down if firms' abatement costs are also private information.
    Keywords: information aggregation; efficient market hypothesis; price information; emissions trading
    JEL: G14 D83 D84 D85 Q58
    Date: 2018–12
  27. By: Yury Dubinin (Boreskov institute of catalysis SB RAS); Ekaterina Dubinina (Boreskov institute of catalysis SB RAS)
    Abstract: A common interdisciplinary problem, characteristic for many developed and developing countries, is the problem of the demand for fundamental and applied scientific developments. In addition, on the way to introduction into the industry and the real sector of the economy, scientific developments face many obstacles, which are extremely difficult to overcome without support from the state or private business. In this paper, the experience of successful developments implementation in the field of small-scale power engineering from the point of view of interaction between sciences, the state and business is considered. As an example, the corresponding developments of the Boreskov Institute of Catalysis of the SB RAS (Novosibirsk, Russian Federation) were considered.
    Keywords: Commercialization, scientific developments, small energy, fluidized bed technology
    Date: 2018–10
  28. By: Crampes, Claude; Moreaux, Michel
    JEL: C61 L94 Q25 Q42
    Date: 2018–11
  29. By: Jane Ellis (OECD); Sina Wartmann; Sara Moarif (International Energy Agency); Marcia Rocha (OECD)
    Abstract: An enhanced transparency framework is a central component of the Agreement, and will apply to all Parties, with flexibility for developing country Parties that need it in the light of their capacities. This paper examines how such flexibility might be operationalised when reporting information under the future enhanced transparency system for greenhouse gas inventories and for progress towards the mitigation component of NDCs under Article 4. The paper also highlights how improvements over time in reporting of adaptation, and support needed and received could be encouraged. For each individual reporting element in these four areas, the paper identifies possible ways that countries with a range of different capacity levels could provide information for specific elements under the four reporting areas examined in the paper.
    Keywords: climate change, Enhanced Transparency Framework, flexibility, nationally determined contribution, Paris Agreement and Article 13, reporting, transparency
    JEL: F39 H39 O20 Q54 Q56
    Date: 2018–11–27
  30. By: Manasvini Vaidyula (OECD); Marcia Rocha (OECD)
    Abstract: Article 13.7b of the Paris Agreement mandates all Parties to regularly provide information necessary to track progress made in implementing and achieving their nationally determined contributions (NDCs) under Article 4. This information provided by Parties shall also undergo a Technical Expert Review (Article 13.11). This paper examines the information needed to track progress towards different types of NDCs and explores current experiences and the associated challenges relevant to reporting this information. The paper also identifies issues and options for how this information could be reviewed and how this review could facilitate reporting improvements. The paper identifies key linkages between Articles 4, 6 and 13 of the Agreement related to reporting and reviewing information to track progress. The paper highlights that the relevant linkages need to be taken into account when developing guidance under these Articles to ensure an internally-consistent tracking progress system.
    Keywords: Article 13, Article 4, Article 6, linkages, mitigation, NDCs, Paris Agreement, Technical Expert Review, tracking progress, transparency, UNFCCC
    JEL: F53 Q54 Q56 Q58
    Date: 2018–11–27
  31. By: Anthony Heyes (University of Ottawa); Sandeep Kapur (Birkbeck, University of London); Peter W. Kennedy (University of Victoria); Steve Martin (Statistics Canada); John W. Maxwell (Indiana University)
    Abstract: Programs that certify the environmental (or other social) attributes of firms are common.But the proliferation of labeling schemes makes it difficult for consumers to know what each one mean – what level of `greenness' does a particular label imply? We provide the first model in which consumers can expend effort to learn what labels mean. The relationship between information acquisition costs, firm pricing decisions, the market shares obtained by alternatively-labeled goods and a brown `backstop' good, and total environmental impact prove complex.Consumer informedness can have perverse implications. In plausible cases a reduction in the cost of information damages environmental outcomes. Our results challenge the presumption that provision of environmental information to the public is necessarily good for welfare or the environment.
    Keywords: Eco-labeling, green consumerism, information-based instruments.
    JEL: D83 L15 L31 Q52
    Date: 2018–11
  32. By: Jean-Claude Berthelemy (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Arnaud Millien (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper is the first product of a project which aims to build a Collaborative Smart Mapping of Mini-grid Action (CoSMMA), whose principal objective is to identify best practice in decentralized electrification projects. By evaluation of 421 projects, from published research papers, we have built a pilot CoSMMA which proves its feasibility. Its relevance is demonstrated by a meta-analysis, which reveals the principal characteristics of decentralized electrification projects which have positive impacts on sustainable development. Four main characteristics were considered: technology (source or energy), system size (power), decision level (from local to country level), geographic location. When searching for best practice, technology and system size must be considered together, because the chosen technology may constrain the power, which is provided by the system. We find that the most popular projects, which are based on Solar Home Systems (SHS) are not the most effective. The problem with SHS is not the use of solar energy, but the small system size often chosen for SHS. Mini-grids, of larger size, especially those which use hybrid renewable sources of energy, have more positive impacts, because these systems combine the benefits of sustainability and flexibility. In terms of decision level, we find that both top-down and bottom-up approaches have advantages, with the observation of a U-shaped curve for the influence of the decision level on the probability of obtaining positive impacts. Geographical location matters, as it is very often the key to system feasibility. We find that DEPs are more effective in Latin America than in Asia, and more effective in Asia than in Africa. We also attempted to study the type of effects resulting from DEPs. Descriptive data suggest that for some types of effects, positive impacts are more likely than for others. Decentralized electrification projects have a more positive impact on Lifestyle & NICT or Household agenda than on Economic transformation or Community life. However, this pilot CoSMMA does not contain enough information to study precisely the types of effects, because some types of effects have not been studied frequently in the existing literature. This is the case, for instance, for environmental effects, which have been rarely measured scientifically. Finally, we attempted to broaden our information set by including expert data, which was entered into the CoSMMA meta-analysis. We define expert data as data that are not supported by statistical tests with measures of significance, whereas the evaluations based on scientific data were supported by statistical tests of significance. The expert data may be valid, but our attempt to include it in the analysis failed at this stage. The determinants of unproven effects appear to be quite different from the determinants of proven effects in our meta-analysis, and using expert data would imply merging proven and unproven effects, which would totally blur the conclusions.
    Keywords: Decentralized electrification,sustainable development,impact assessment,meta-analysis
    Date: 2018–11–15
  33. By: Serrano-Calle, Silvia; Delarue, Erik
    Abstract: The development of variable renewable energy (VRE) and their massive installation are some of the challenges that the economies of a large part of the world will have to face in the coming years to help ensure a reasonable sustainability of the planet. On the other hand, the advances that have been happening in recent decades in the telecommunications sector and the expansion of the Internet have helped to create a new scenario, giving way to growth opportunities in different economic sectors and new business models. One of the most disruptive tools that has emerged in this new digital ecosystem is what is known as Distributed Ledger Technology (DLT). The opportunity and applicability to strengthen VRE expansion is discussed in this article. To this end, selected case studies and main findings of interviews with experts are discussed. The introduction of blockchain technology, in particular in its use as a platform for smart contracts, offers a great potential, highly valued by experts, in addition to adding other relevant characteristics such as efficiency generated in operational terms and traceability, but also new opportunities for consumers and prosumers to build strong energy communities committed with a sustainable energy transaction. However, among the elements to be improved, we highlight the regulatory uncertainty regarding smart contracts´ security in terms of automatic mechanisms and its legal endorsement for use within the EU; adopting standards to facilitate scalability; and other issues of a more technological nature that should also be improved for a massive implementation in terms of optimizing energy efficiency of the model.
    Keywords: Blockchain,Digital Policy,Energy Policy,Smart Energy,Sustainable Development Goals
    JEL: L86 O33 Q28
    Date: 2018
  34. By: Jahn, Malte; Wedemeier, Jan
    Abstract: Cost benefit analysis (CBA) is a systematic approach to compare the costs and bene-fits of alternatives, e.g. a decision between the construction or non-construction of a traffic light, in order to assess the welfare change. The purpose of a CBA is to facilitate a more efficient allocation of resources, mainly in terms of investments decisions. In order to assess the performance of the low carbon port development investments funded within the DUAL ports project, CBA can be applied.
    Date: 2018
  35. By: Ekaterina Dukhanina (CERNA i3 - Centre d'économie industrielle i3 - CNRS - Centre National de la Recherche Scientifique - PSL - PSL Research University - MINES ParisTech - École nationale supérieure des mines de Paris); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, University of London [London])
    Abstract: Purpose of Review The purpose of this paper is to clarify the definition of an integrated market and to provide a commented overview of the different empirical methodologies that have been proposed to assess the degree of spatial integration of natural gas markets. Recent Findings In recent years, the methodologies assessing gas market integration have evolved from simple empirical works based solely on price data analyses to more complex ones based on the theoretical notion of spatial equilibrium capturing the effects of both price and non-price data. Summary A number of liberalization reforms have stimulated the emergence of spatially diverse markets for wholesale natural gas interconnected through spatial arbitrage, which plays a crucial role in the determination of local prices. In recent years, a vast and rapidly growing empirical literature has emerged to examine the degree of integration of these markets. A close examination of this literature has shown that only a handful of studies pay attention to the theoretical notion of market integration and account for the role played by trade flows, capacity constraints, and unit transaction costs.
    Keywords: Spatial integration,Law of one price,Integration of gas markets,Natural gas markets,Market integration,Price convergence
    Date: 2018–06–01
  36. By: Djamel KIRAT; Nicolas CLOOTENS
    Date: 2018
  37. By: Campiglio, Emanuele; Dafermos, Yannis; Monnin, Pierre; Ryan-Collins, Josh; Schotten, Guido; Tanaka, Misa
    Abstract: The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years. This Perspective presents the key controversies and discusses potential research and policy avenues for the future. Developing a comprehensive analytical framework to assess the potential impact of climate change and the low-carbon transition on financial stability seems to be the first crucial challenge. These enhanced risk measures could then be incorporated in setting financial regulations and implementing the policies of central banks.
    JEL: F3 G3
    Date: 2018–05–30

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