nep-ene New Economics Papers
on Energy Economics
Issue of 2020‒12‒21
sixty-one papers chosen by
Roger Fouquet
London School of Economics

  1. Energy Efficiency: What has it Delivered in the Last 40 Years? By Saunders, Harry; Roy, Joyashree; Azevedo, Inês M.L.; Chakravarty, Debalina; Dasgubta, Shyamasree; de la Rue du Can, Stephane; Druckman, Angela; Fouquet, Roger; Grubb, Michael; Qiang Lin, Bo; Lowe, Robert; Madlener, Reinhard; McCoy, Daire; Mundaca, Luis; Oreszczyn, Tadj; Sorrell, Steve; Stern, David; Tanaka, Kanako; Wei, Taoyuan
  2. Using neural networks to model long-term dependencies in occupancy behavior By Kleinebrahm, Max; Torriti, Jacopo; McKenna, Russell; Ardone, Armin; Fichtner, Wolf
  3. The informational value of environmental taxes * By Stefan Ambec; Jessica Coria
  4. The distortionary cost of marginal wind curtailment By Newbery, D.
  5. Lebanon Cost?of?Service and Tariff Design Study By World Bank
  6. Northeast America (NEA) Electricity Profile: Proposal of a Free Trade Area By Marcel Boyer
  7. Transición energética de la República Dominicana: ¿cómo las estrategias de descarbonización del sector eléctrico aceleran la participación del sector privado en la contribución determinada a nivel nacional CDN? By Berigüete, Rafael; Ramírez Tejada, Omar; Galindo, Luis Miguel; Alatorre, José Eduardo
  8. How is the COVID-19 Crisis Affecting Nitrogen Dioxide Emissions in Sub-Saharan Africa? By Takaaki Masaki; Shohei Nakamura; David Newhouse
  9. Conséquences du changement climatique sur la pollution de l'air et impact en assurance de personnes By Yannick Drif; Palmira Messina²; Pierre Valade
  10. "Environmental markets exacerbate inequalities" By Stefan Ambec
  11. Developing Markets for Zero Emission Vehicles in Short Haul Goods Movement By Giuliano, Genevieve; Dessouky, Maged; Dexter, Sue; Fang, Jiawen; Hu, Shichun; Steimetz, Seiji; O'Brien, Thomas; Miller, Marshall; Fulton, Lewis
  12. Green Bond market vs. Carbon market in Europe : Two different trajectories but some complementarities By Yves Rannou; Pascal Barneto; Mohamed Boutabba
  13. Adoption of Renewable Home Heating Systems: An Agent-Based Model of Heat Pump Systems in Ireland By Tensay Meles; L. (Lisa B.) Ryan
  14. Solar Thermal Energy Storage System using Phase Change Material for Uninterrupted On-farm Agricultural Processing and Value Addition By Anjum Munir; Oliver Hensel
  15. The perception of climate sensitivity: Revealing priors from posteriors By Masako Ikefuji; Jan R. Magnus
  16. US-Präsidentschaftswahl: Implikationen für die Klima- und Energiepolitik By Kolev, Galina V.; Schaefer, Thilo
  17. Does renewable energy consumption reduce ecological footprint? Evidence from eight developing countries of Asia By Sharma, Rajesh; Sinha, Avik; Kautish, Pradeep
  18. Final assessment report. Assessment of development account project 14/15 BD: Strengthening the capacity of Central American and Caribbean countries in the preparation of sustainable energy policies and strategies By -
  19. Fueling Kyrgyzstan’s Transition to Clean Household Heating Solutions By World Bank
  20. Optimal grid tariffs with heterogeneous prosumers By Axel Gautier; Julien Jacqmin; Jean-Christophe Poudou
  21. Carbon pricing in Germany's road transport and housing sector: Options for reimbursing carbon revenues By Frondel, Manuel; Schubert, Stefanie
  22. Pollution Reduction by Rationalization in Indian Firms By Inma Martínez-Zarzoso; Shampa Roy-Mukherjee; Finn-Ole Semrau; Anca M. Voicu
  23. Reporting national GHG inventories through Common Reporting Tables (CRTs): An assessment of CRT reporting options through worked examples By Chiara Falduto; Sina Wartmann; Marcia Rocha
  24. Market-based renewables: How flexible hydrogen electrolyzers stabilize wind and solar market values By Ruhnau, Oliver
  25. Navigating Towards Cleaner Maritime Shipping: Lessons From the Nordic Region By ITF
  26. Fiscal Stress and Monetary Policy Stance in Oil-Exporting Countries By Hao Jin; Chen Xiong
  27. Klimainstrumente im Vergleich: Herausforderungen in Hinblick auf ökologische, ökonomische und soziale Nachhaltigkeit By Berger, Johannes; Strohner, Ludwig; Thomas, Tobias
  28. Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries By Destek, Mehmet; Sinha, Avik
  29. The Need for Research Regarding Benefits of Integrating Thermal Energy Storage Batteries in Rural Mini-Grid Electric Systems By John C. Wehner
  30. The Importance of regional Spill-over Effects for Eco-Innovations in German Start-ups By Jens Horbach
  31. The effect of climate policy on productivity and cost pass-through in the German manufacturing sector By Hintermann, Beat; Zarkovic, Maja; di Maria, Corrado; Wagner, Ulrich J.
  32. Economic Analysis of Battery Energy Storage Systems By World Bank
  33. Happiness and Air Pollution By Arik Levinson
  34. Green Technology and Patents in the Presence of Green Consumers By Langinier, Corinne; Ray Chaudhuri, A.
  35. Design of Financial Support and Capacity-Building Program for Rooftop Solar Photovoltaic in Turkey By World Bank
  36. Inequality and Renewable Energy Consumption in Sub-Saharan Africa: Implication for High Income Countries By Simplice A. Asongu; Nicholas M. Odhiambo
  37. Monetizing Customer Load Data for an Energy Retailer: A Cooperative Game Approach By Liyang Han; Jalal Kazempour; Pierre Pinson
  38. The Heterogeneous Impact of Coal Prices on the Location of Cleaner and Dirtier Steel Plants By François Cohen; Giulia Valacchi
  39. Ukraine Country Forest Note By World Bank
  40. Dirty Stacks, High Stakes By Andrew Eil; Jie Li; Prajwal Baral; Eri Saikawa
  41. Electricity Demand as a High-Frequency Economic Indicator: A Case Study of the COVID-19 Pandemic and Hurricane Harvey By Joshua Blonz; Jacob Williams
  42. New Technologies, Productivity, and Jobs: The (Heterogeneous) Effects of Electrification on US Manufacturing By Martin Fiszbein; Jeanne Lafortune; Ethan G. Lewis; José Tessada
  43. Centroamérica y la República Dominicana: estadísticas de hidrocarburos, 2019 By -
  44. An overview of the electrification of residential and commercial heating and cooling and prospects for decarbonisation By Fajardy, M.; Reiner, D M.
  45. Environmental policies in a stagnant economy By Masako Ikefuji; Yoshiyasu Ono
  46. Cambio climático y recursos hídricos ¿Que dicen los organismos internacionales? By Emilio Cerdá; Javier Campos
  47. The Reformed EU ETS in Times of Economic Crises: the Case of the COVID-19 Pandemic By Bocklet, Johanna
  48. Distributed Generation and Cost Efficiency of German Electricity Distribution Network Operators By Just, Lisa; Wetzel, Heike
  49. Oil Extraction in Nigeria’s Ogoniland: the Role of Corporate Social Responsibility in Averting a Resurgence of Violence By Joseph I. Uduji; Elda N. Okolo-Obasi; Simplice A. Asongu
  50. Global oil prices and the macroeconomy: The role of tradeable manufacturing versus nontradeable services By Khalil, Makram
  51. The Green Economy and Inequality in Sub-Saharan Africa: Avoidable Thresholds and Thresholds for Complementary Policies By Simplice A. Asongu; Nicholas M. Odhiambo
  52. Real-time electricity pricing to balance green energy intermittency By Stefan Ambec; Claude Crampes
  53. "Environmental Policy with Green Consumerism" By Stefan Ambec; Philippe de Donder
  54. Good to Go? Assessing the Environmental Performance of New Mobility By ITF
  55. Distributed Power Generation for Lebanon By Ali Ahmad
  56. Get More Out of Variable Speed Limit (VSL) Control: An Integrated Approach to Manage Traffic Corridors with Multiple Bottlenecks By Gao, Hang; Cheng, Shenyang; Zhang, Michael
  57. Do PTAs with environmental provisions reduce emissions? Assessing the effectiveness of climate-related provisions? By Zakaria Sorgho; Tharakan Joe
  58. Are Emissions Trading Schemes Cost-effective? By di Maria, Corrado; Zarkovic, Maja; Hintermann, Beat
  59. Energy poverty, housing conditions, and self-assessed health: evidence from Poland By Piotr Lewandowski; Jakub Soko³owski; Jan Frankowski
  60. Molehills into mountains: Transitional pressures from household PV-battery adoption under flat retail and feed-in tariffs By Kelvin Say; Michele John
  61. Energy communities and their ecosystems A comparison of France and the Netherlands By Anne-Lorene Vernay; Carine Sebi

  1. By: Saunders, Harry (Carnegie Institution for Science, Global Ecology Group, Stanford, USA); Roy, Joyashree (Asian Institute of Technology, Thailand); Azevedo, Inês M.L. (Stanford University, USA); Chakravarty, Debalina (Indian Institute of Management-Calcutta); Dasgubta, Shyamasree (Indian Institute of Technology Mandi, India); de la Rue du Can, Stephane (Lawrence Berkeley National Laboratory, USA); Druckman, Angela (University of Surrey, UK); Fouquet, Roger (London School of Economics and Political Science, UK); Grubb, Michael (University College London, UK); Qiang Lin, Bo (Xiamen University, China); Lowe, Robert (University College London, UK); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); McCoy, Daire (London School of Economics and Political Science, UK); Mundaca, Luis (International Institute for Industrial Environmental Economics at Lund University, Sweden); Oreszczyn, Tadj (University College London, UK); Sorrell, Steve (University of Sussex, UK); Stern, David (Australian National University); Tanaka, Kanako (Japan Science and Technology Agency, Japan); Wei, Taoyuan (CICERO Center for International Climate Research, Norway)
    Abstract: This article presents a critical assessment of research and practices that emerged over last 40 years that may be brought under the umbrella of “energy efficiency,” spanning different aggregations and domains – from individual producing and consuming agents to economy-wide effects, the role of innovation, and the influence of policy. It highlights advances in understanding the benefits of energy efficiency innovation, improvements in economic and measurement methods and tools, and progress in bending downward the energy use per unit economic output curve, which has taken over a century. We focus on how well deliberate policy actions have influenced energy users in the uptake of energy efficiency. We also note how policies pursued thus far have put less attention on social welfare, inequity issues, and need to better account for complex dynamics associated with how micro actions affect macro outcomes, and to include a richer interdisciplinary approach.
    JEL: N70 O33 Q40 Q41 Q43 Q48
    Date: 2020–11
  2. By: Kleinebrahm, Max; Torriti, Jacopo; McKenna, Russell; Ardone, Armin; Fichtner, Wolf
    Abstract: Models simulating household energy demand based on different occupant and household types and their behavioral patterns have received increasing attention over the last years due the need to better understand fundamental characteristics that shape the demand side. Most of the models described in the literature are based on Time Use Survey data and Markov chains. Due to the nature of the underlying data and the Markov property, it is not sufficiently possible to consider long-term dependencies over several days in occupant behavior. An accurate mapping of long-term dependencies in behavior is of increasing importance, e.g. for the determination of flexibility potentials of individual households urgently needed to compensate supply-side fluctuations of renewable based energy systems. The aim of this study is to bridge the gap between social practice theory, energy related activity modelling and novel machine learning approaches. The weaknesses of existing approaches are addressed by combining time use survey data with mobility data, which provide information about individual mobility behavior over periods of one week. In social practice theory, emphasis is placed on the sequencing and repetition of practices over time. This suggests that practices have a memory. Transformer models based on the attention mechanism and Long short-term memory (LSTM) based neural networks define the state of the art in the field of natural language processing (NLP) and are for the first time introduced in this paper for the generation of weekly activity profiles. In a first step an autoregressive model is presented, which generates synthetic weekly mobility schedules of individual occupants and thereby captures long-term dependencies in mobility behavior. In a second step, an imputation model enriches the weekly mobility schedules with detailed information about energy relevant at home activities. The weekly activity profiles build the basis for multiple use cases one of which is modelling consistent electricity, heat and mobility demand profiles of households. The approach developed provides the basis for making high-quality weekly activity data available to the general public without having to carry out complex application procedures.
    Keywords: activity modelling,mobility behavior,neural networks,synthetic data
    Date: 2020
  3. By: Stefan Ambec (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jessica Coria (GU - University of Gothenburg)
    Abstract: We propose informational spillovers as a new rationale for the use of multiple policy instruments to mitigate a single externality. We investigate the design of a pollution standard when the firms' abatement costs are unknown and emissions are taxed. A firm might abate pollution beyond what is required by the standard by equalizing its marginal abatement costs to the tax rate, thereby revealing information about its abatement cost. We analyze how a regulator can take advantage of this information to design the standard. In a dynamic setting, the regulator relaxes the initial standard in order to induce more information revelation, which would allow her to set a standard closer to the first best in the second period. Updating standards, though, generates a ratchet effect since the low-cost firms might strategically hide their cost by abating no more than required by the standard. We provide conditions for the separating equilibrium to hold when firms act strategically. We illustrate our theoretical results with the case of NO x regulation in Sweden. We find evidence that the firms that are taxed experience more frequent standard updates.
    Keywords: pollution,externalities,asymmetric information,environmental regulation,tax,standards,multiple policies,ratchet effect,nitrogen oxides
    Date: 2020
  4. By: Newbery, D.
    Abstract: At high levels of wind penetration the requirements of dispatchable reserves and inertia limit the volume of wind that can be accepted; the surplus is then curtailed. Marginal curtailment is 3-4+ times the average curtailment, but even in an efficiently designed market, price signals for wind investment are given by average not marginal curtailment, requiring a corrective charge to restore efficiency. The paper sets out a model calibrated to Ireland in 2026, showing the sources of distortion, formulae for the subsidies and charges needed to deliver the efficient level of renewables penetration, and estimates of their magnitude.
    Keywords: Wind curtailment, market failures, corrective charges
    JEL: H23 L94 Q28 Q42 Q48
    Date: 2020–12–09
  5. By: World Bank
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Energy Policies & Economics Energy - Fuels
    Date: 2020–05
  6. By: Marcel Boyer
    Abstract: The government of Quebec should formally propose to the governments of neighboring American states (CT, ME, MA, NH, RI, VT, NJ, NY, PA, IL, IN, MI, OH, WI, DE, MD, WV, KY) and the provinces of eastern Canada (NL, NS, NB, ON) an integrated common market in electricity with appropriate commonly owned and shared interconnections and regulatory institutions allowing effective, efficient, transparent and fluid exchanges. The important technological complementarities between the regional production capacities and technologies and the high value added of integration, in particular with the massive arrival of renewable but intermittent energies, are likely to create a win-win situation for all participants. But the game is not only complex, but also demands from the regional leaders, Premiers and Governors, a long-term vision based on strategic complementarities and open competition. Major enabling features revolve around opening the ownership structure of regional producers, integrating the independent system operators (ISO), implementing appropriate mechanisms to adequately face the “not in my backyard (NIMBY)” syndrome. Le gouvernement du Québec devrait proposer officiellement aux gouvernements des États américains voisins (CT, ME, MA, NH, RI, VT, NJ, NY, PA, IL, IN, MI, OH, WI, DE, MD, WV, KY) et des Provinces de l'est du Canada (NL, NS, NB, ON) un marché commun intégré de l'électricité avec propriété commune et partagée des interconnexions et des institutions réglementaires permettant une efficacité, efficience, transparence et des échanges fluides. Les complémentarités importantes entre les technologies de production régionales et la forte valeur ajoutée de l'intégration, en particulier avec l'arrivée massive d'énergies renouvelables mais intermittentes, sont susceptibles de créer une situation gagnant-gagnant pour tous les participants. Mais le jeu est non seulement complexe, mais il exige également des dirigeants régionaux, Premiers Ministres et Gouverneurs, une vision à long terme fondée sur des capacités complémentaires stratégiques et une concurrence ouverte et transparente. Trois facteurs critiques : l’ouverture de la structure de propriété des producteurs régionaux, l’intégration des gestionnaires de réseaux indépendants ISO), la mise sur pied de mécanismes appropriés pour répondre adéquatement au syndrome « pas dans ma cour (NIMBY) ».
    Keywords: Electricity Production,Free Trade,Economic Integration,NIMBY, Production d’électricité,Libre échange,Intégration économique,NIMBY
    Date: 2020–12–09
  7. By: Berigüete, Rafael; Ramírez Tejada, Omar; Galindo, Luis Miguel; Alatorre, José Eduardo
    Abstract: Este documento presenta el estado actual del sistema eléctrico interconectado de la República Dominicana y sus perspectivas para alcanzar las metas nacionales de reducción de emisiones de gases de efecto invernadero (GEI) establecidas en la contribución determinada a nivel nacional (CDN), así como los desafíos que enfrenta el sector para la adaptación a los impactos del cambio climático. El objetivo del documento es contribuir a empoderar a los actores clave del sector, responsables de la toma de decisiones y de la formulación de políticas, mediante la exposición de las medidas que pueden tomarse en el corto y el mediano plazo para que el sector logre ser más sostenible, genere menos emisiones y sea más resiliente a los impactos climáticos y los desastres naturales.
    Date: 2020–12–09
  8. By: Takaaki Masaki; Shohei Nakamura; David Newhouse
    Keywords: Environment - Air Quality & Clean Air Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Economic Growth Transport - Roads & Highways
    Date: 2020–05
  9. By: Yannick Drif; Palmira Messina² (CEREA - Centre d'Enseignement et de Recherche en Environnement Atmosphérique - ENPC - École des Ponts ParisTech - EDF R&D - EDF R&D - EDF - EDF); Pierre Valade
    Abstract: Air pollution is the co-occurrence of high pollutant emissions and particular meteorological conditions. Among its pollutants, fine particles (PM2.5 and PM10), Nitrogen Oxide (NOx) and Ozone (O3) are the most dangerous for public health. Every year, repeated or prolonged exposure to these particles leads to respiratory and cardiovascular diseases, cancer and premature death in those exposed. Climate change has an impact on meteorological variables (temperature, pressure, winds, precipitation, etc.) that affect air quality (emissions, precipitation leaching, gas/particle balance, etc.). The objective of this synthesis report is to provide a study to shed light on the consequences of air quality variation as a function of climate change and emissions in the near future (horizons2030 and 2050), in particular on the climate scenario RCP (Representative Concentration Pathway) 8.5 which describes an absence of climate change policies (Riahi et al., 2011). Within the framework of this synthesis report, we are committed to: - Communicating a qualitative assessment of the variation in the main pollutants, particularly in France; - Where possible, quantifying the impact in urban agglomerations; - Studying in particular the future modification of ozone (O3), coarse particles (PM10), fine particles (PM2.5) and nitrogen oxides (NOx). -translating impacts into additional claims experience for insurance cover poposed under personal insurance contracts.
    Abstract: La pollution atmosphérique est la cooccurrence de fortes émissions de polluants et de conditions météorologiques particulières. Parmis ses polluants, les particules fines (PM2.5 et PM10), l'Oxyde d'Azote (NOx) et l'Ozone (O3) sont les plus dangereuses pour la santé publique. L'exposition répétée ou prolongée à ces particules entraîne chaque année des maladies respiratoires et cardio-vasculaires, des cancers ainsi que des morts prématurées chez les personnes exposées. L'évolution du climat a un impact sur des variables météorologiques (température, pression, vents, précipitations, ...) qui affectent la qualité de l'air (émissions, lessivage par les précipitations, équilibre gaz/particule, ...). L'objectif du présent rapport de synthèse est de fournir une étude pour éclairer les conséquences de la variation de la qualité de l'air en fonction des changements climatiques et des émissions dans un avenir proche (horizons2030 et 2050), en particulier sur le scénario climatique RCP (Representative Concentration Pathway) 8.5 qui décrit une absence de politiques de changement climatique (Riahi et al., 2011). Dans le cadre du présent rapport de synthèse, nous nous attachons à : -Communiquer une évaluation qualitative de la variation des principaux polluants en particulier sur la France; -lorsque cela est possible, quantifier l'impact dans les agglomérations urbaines, -étudier en particulier la modification future de l'ozone (O3), des particules grossières (PM10), des particules fines (PM2,5) et des oxydes d'azote (NOx). -traduire des impacts en sinistralité additionnelle pour les garanties d'assurance poposées dans le cadre de contrats d'assurances de personnes.
    Keywords: santé,pollution,particules fines,changement climatique,assurance
    Date: 2020–11–10
  10. By: Stefan Ambec (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Environmental markets distribute tradable rights on natural resources that are available for free on the earth such as water, biomass or clean air. In a framework where users differ solely in respect of their access to the resource, I investigate the allocation of rights that are accepted in the sense that, after trading, users obtain at least what they can achieve by sharing the resources they control. I show that, among all accepted rights, the more egalitarian ones do not allow any redistribution among users. Consequently, compared to an efficient allocation of resources, the net trading of rights always increases inequality.
    Keywords: Common-pool resources,Environmental externalities,Property rights,Cooperative game,Fairness,Tradable quotas,Emission permits
    Date: 2020
  11. By: Giuliano, Genevieve; Dessouky, Maged; Dexter, Sue; Fang, Jiawen; Hu, Shichun; Steimetz, Seiji; O'Brien, Thomas; Miller, Marshall; Fulton, Lewis
    Abstract: The potential for zero emission heavy duty trucks (ZEHDTs) is examined via simulation modeling, case studies, interviews and a survey. Impacts of ZEHDTs on freight operations are assessed. Costs and benefits of using diesel, natural gas hybrid and battery electric vehicles are compared for 2020, 2025, 2030. ZE applications are limited in the near term due to range and charging limitations, but as ZE performance improves and prices go down, they are viable for a larger segment of the market. Hybrid vehicles are the most cost effective alternative for reducing air toxics, but ZEHDTs reduce air toxics the most by 2025. The report presents recommendations for promoting and increasing the market share of ZEHDTs and hybrids. View the NCST Project Webpage
    Keywords: Business, Engineering, Heavy duty trucks, alternative fuels, short haul trucking, emissions reduction
    Date: 2020–11–01
  12. By: Yves Rannou (Groupe ESC Clermont-Ferrand - Clermont Université, CleRMa - Clermont Recherche Management - Clermont Auvergne - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Pascal Barneto (Universite Montesquieu - Bordeaux IV Droit, sciences sociales et politiques, sciences economiques et de gestion, IRGO - Institut de Recherche en Gestion des Organisations - Université Montesquieu - Bordeaux 4 - Institut d'Administration des Entreprises (IAE) - Bordeaux); Mohamed Boutabba (Université Paris-Saclay, Univ Evry, EPEE)
    Abstract: Europe has been the first continent to create a large-scale carbon market to reduce the level of carbon emissions and to create a green bond market to finance the transition to low-carbon economies concomitantly. In this chapter, we study the respective roles of these instruments, their price trajectories, their interaction and their potential complementarities over a six-year period (2014-2019). We enrich the literature on environmental markets in several respects. First, significant short-run and long-run persistence of shocks to the conditional correlation between the European carbon and the European Green bond markets are reported. Second, we detect bi-directional shock transmission effects between those markets but no significant spillover effects. Taken together, these results suggest that a green bond issued in Europe may be used to hedge against the carbon price risk.
    Keywords: Green Bond,European Allowances (EUA),Spillover effects,Asset Complementarity
    Date: 2020–11–09
  13. By: Tensay Meles; L. (Lisa B.) Ryan
    Abstract: Concern about climate change and dependence on fossil fuels is inducing countries to develop and deploy renewable energy technologies. Heat pump systems, which extract heat either from the air, water, or ground sources, are among the viable options for space heating and domestic hot water production in the residential sector. In this paper, we develop an agent-based model to analyze the adoption process of heat pump systems and the underlying diffusion factors. Uniquely, we use a recent nationally representative Irish household survey data to derive parameters for decision rules for technology adoption in the model. In this research, we explore how financial aspects, psychological factors and social networks influence the adoption and diffusion of heat pump systems. We also discuss how individual household socio-demographic characteristics, building characteristics, geographical location of household and policy incentives affect the adoption process. The research should be of interest to policymakers, as we use the model to test the impact of various policies on technology adoption rates.
    Keywords: Agent-based model; Heat pump systems; Energy economics; Renewable energy technology adoption; Ireland
    JEL: D12 D91 Q41 Q28
    Date: 2020–12
  14. By: Anjum Munir; Oliver Hensel
    Abstract: Thermal energy storage technologies are gaining attention nowadays for uninterrupted supply of solar power in off-sunshine hours. An indigenized solar phase change material (PCM) system was developed and performance evaluated in the current study to efficiently store solar thermal power using a latent heat storage approach, which can be utilized in any subsequent decentralized food processing application. A 2.5 m2 laying Scheffler reflector is used to precisely focus the incoming direct normal irradiance (DNI) on a casted aluminum heat receiver (220 mm diameter) from where this concentrated heat energy is absorbed and conducted to the PCM unit by the flow of thermal oil (Fragoltherm-32 thermo-oil). During the circulation around PCM pipes inside the PCM unit, thermal oil discharges heat energy to the PCM, which undergoes change of phase from solid to liquid. Computational fluid dynamics (CFD) analysis of the PCM unit were also performed according to the actual boundary conditions, which gave satisfactory results in terms of temperature and velocity distribution. With an average DNI of 781 W/m2, the highest temperature of the receiver surface during the trials was observed at about 155 C that produces thermal oil at 110°C inside the receiver and around 48°C of PCM in the PCM unit. The heat energy losses per unit time (W) due to the lack of reflectivity from the Scheffler reflector, out-of-focus radiations at the targeted area, absorptivity of heat receiver, piping system losses, and cylinder losses (in the form of conduction, convection, and radiations using 50 mm insulation thickness) were found to be 110 W (10 %), 99 W (9 %), 89 W (8 %), 128 W (12 %), 161 W (15 %), and 89 W (8 %), respectively. These findings of CFD analysis and mathematical modeling were also consistent with real-time data, which was logged through an online Control and Monitoring Interface portal. The final energy available to the PCM was 414W with an overall system efficiency of 38 %, which can be improved by decreasing thermal losses of the system and using other PCM materials.
    Date: 2019–09
  15. By: Masako Ikefuji; Jan R. Magnus
    Abstract: A Bayesian typically uses data and a prior to produce a posterior. In practice, the data and the posterior are often observed but not the prior. We shall follow the opposite route, using data and the posterior information to reveal the prior. We then apply this theory to (equilibrium) climate sensitivity as reported by the Intergovernmental Panel on Climate Change in an attempt to get some insight into their prior beliefs. It appears that the IPCC scientists have agreed a priori on a value for the climate equilibrium between 3 and 4 degrees Celsius, while judging the occurrence of a real disaster much more likely than the previous report predicts.
    Date: 2020–12
  16. By: Kolev, Galina V.; Schaefer, Thilo
    Abstract: Der Ausgang der Präsidentschaftswahl in den USA wird eine wichtige Signalwirkung für die globale Klimapolitik haben. Zwar erscheint die Klimabilanz des amtierenden US-Präsidenten Donald Trump erstaunlich positiv. Doch die Einsparungen bei energiebedingten CO2-Emissionen sind nicht auf die Politik der Regierung in Washington zurückzuführen, sondern vielmehr auf den Erfolg der einheimischen Erdgasförderung sowie die lokale Energie- und Klimapolitik einzelner Bundesstaaten. Nach einem Machtwechsel ist somit nicht damit zu rechnen, dass sich die US-Emissionswerte wesentlich verbessern. Durch ein erneutes klimapolitisches Engagement des zweitgrößten CO2-Emittenten weltweit kann der globale Klimaschutz jedoch ein neues Momentum erfahren.
    Date: 2020
  17. By: Sharma, Rajesh; Sinha, Avik; Kautish, Pradeep
    Abstract: Economic and demographic transitions led by the persistent increase in the per capita income have challenged the environmental conservation drive in most of the developing nations. Therefore, in recent years, policymakers emphasized the need for navigating the harmful impacts of economic growth endeavors on the established ecosystem. In this regard, the widespread usage of renewable energy solutions has helped in restoring the environmental quality in both developed and developing countries. Keeping this in mind, in the present study, we examined the long run and short-run impacts of per capita income, renewable energy, life expectancy, and population density on the ecological footprint in the eight developing countries of South and Southeast Asia from 1990-2015. In the selected nations, these variables appear to be the potential drivers of the ecological footprint. To calculate the common coefficients, we have employed the cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, as this approach handles the cross-sectional dependency issue efficiently and provides the short-run and long-run coefficients. The long-run results supported the need for low pollution-intense energy resources because the association between per capita income and ecological footprint is found N-shaped. Further, the study established that the increased use of renewable energy has significantly reduced the ecological footprint in the region. However, the increased population density has led to an increase in pollution emissions in these countries. Similarly, the impact of life expectancy on the ecological footprint is found positive but insignificant. Based on the findings, a multipronged policy framework has been designed, so that these nations can attain the objectives of certain sustainable development goals (SDGs).
    Keywords: Ecological Footprints; Renewable Energy; Life Expectancy; Per Capita Income; Population Density; SDG
    JEL: Q5 Q53
    Date: 2020
  18. By: -
    Date: 2019–05
  19. By: World Bank
    Keywords: Energy - Energy Conservation & Efficiency Energy - Energy Demand Energy - Energy Policies & Economics Energy - Fuels Environment - Brown Issues and Health
    Date: 2020–05
  20. By: Axel Gautier (HEC Liège, Université de Liège, CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain, LCII - Liège Competition and Innovation Institute, CESifo - CESifo); Julien Jacqmin (NEOMA - Neoma Business School); Jean-Christophe Poudou (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, UM - Université de Montpellier)
    Abstract: Energy consumers can invest in photovoltaic (PV) panels and become prosumers. The benefit of such an investment depends on the regulatory framework. We consider a population of heterogenous consumers, with respect to both the cost of decentralized production and their degree of is efficient to have investment by low-cost and high self-consumption profiles. We determine the optimal tariff in the presence of heterogenous prosumers. Net metering fails to screen consumers on the self-consumption dimension. Net purchasing can lead to the efficient investment if the tariffs are non-Coasian that is fixed fees exceed the grid operator's fixed costs.
    Keywords: Decentralized production unit,grid regulation,solar panels,grid tariffs JEL Codes: D13,L51,L94,Q42
    Date: 2020
  21. By: Frondel, Manuel; Schubert, Stefanie
    Abstract: In 2021, Germany will launch a national emissions trading system (ETS) in its road transport and housing sectors. This climate policy instrument aims at raising the energy cost burden of those households and firms that consume fossil fuels, the major source of carbon dioxide (CO2) emissions. A promising approach to secure public acceptance for such a carbon pricing would be to entirely reallocate the resulting "carbon" revenues to consumers. This article discusses three alternatives: a) a per-capita reallocation to private households, b) the reduction of electricity prices by, e.g., decreasing the electricity tax, as well as c) targeted financial aid for vulnerable consumers, such as increasing housing benefits. To estimate both the revenues originating from carbon pricing and the resulting emission savings, we use price elasticities on individual energy consumption in the road transport and housing sector from the empirical literature. Most effective with respect to alleviating the burden of poor households would be increasing housing benefits. While this measure would not require large monetary resources, we argue that the remaining revenues should be preferably employed to reduce Germany's electricity tax, given the steadily increasing amount of electricity generated by renewable energy technologies.
    Keywords: Electricity tax,housing benefits,distributional effects
    JEL: D12 Q21
    Date: 2020
  22. By: Inma Martínez-Zarzoso (University of Göttingen); Shampa Roy-Mukherjee (University of East London); Finn-Ole Semrau (IFW, Kiel Institute for the World Economy); Anca M. Voicu (Rollins College)
    Abstract: This paper uses data for Indian firms over the period 1987 to 2016 to estimate a panel data model that considers firm heterogeneity to estimate the relationship between energy intensity and internationalization strategies of the firm. Both, the extensive and intensive margins of exports are considered as explanatory factors of energy intensity together with a number of control variables including estimated total factor productivity, foreign ownership, size and innovation activities. The main results indicate that exporters are more energy efficient than non-exporters and that there is heterogeneity between industries. More energy-intensity industries present a higher reduction in energy intensity for exporters in comparison to non-exporters.
    Keywords: Indian firms; energy intensity; exporting firms; trade liberalization; panel data
    Date: 2020
  23. By: Chiara Falduto (OECD); Sina Wartmann; Marcia Rocha (OECD)
    Abstract: The Modalities, Procedures and Guidelines (MPGs) included in Decision 18/CMA.1 adopted at COP24 in 2018 require all Parties to the Paris Agreement to report national greenhouse gas (GHG) inventories using “common reporting tables” (CRTs). The same decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) is to develop CRTs for consideration and adoption by COP26. This paper focuses on key issues related to the potential structure of the CRTs and approaches to filling them in. The paper assesses different CRT reporting scenarios through worked examples. Overall, the paper finds that all the tables contained in the set of Common Reporting Formats (CRFs) currently in use by Annex I Parties provide a valuable starting point for the development of CRTs. A number of improvements and adjustments, however, need to be applied to current CRFs to better reflect reporting guidance outlined in the MPGs. This paper finds that it is important to ensure that the CRTs are designed in a way that allows for a reporting that is as standardised as possible. This may include allowing for the use of standardised reporting elements (e.g. notation keys) and amending the tables according to a new, commonly agreed structure to allow for the reporting of new reporting elements. Using a common format while also facilitating standardised reporting can positively affect a number of processes, including the technical expert review and automated processing of information, thereby promoting transparency, comparability and consistency of GHG-inventory reporting.
    Keywords: climate change, emissions, GHG inventories, reporting, transparency
    JEL: F53 Q54 Q56 Q58
    Date: 2020–12–11
  24. By: Ruhnau, Oliver
    Abstract: Wind and solar energy are often expected to fall victim to their own success: the higher their share in electricity production, the more their revenue on electricity markets (their “market value”) declines. While in conventional power systems, the market value may converge to zero, this study demonstrates that “green” hydrogen production, through adding electricity demand in low-price hours, can effectively and permanently halt the decline. With an analytical derivation, a Monte Carlo simulation, and a numerical electricity market model, I find that – due to flexible hydrogen production – market values in 2050 likely converge above €19 ± 9 per MWh for solar energy and above €27 ± 8 per MWh for wind energy. This is in the range of the projected levelized costs of renewables and has profound implications. Market-based renewables may hence be within reach.
    Keywords: Renewable energy,Hydrogen electrolysis,Electricity market,Electricity economics,Integrated energy system,Flexible electricity demand
    JEL: Q4 Q40 Q41 Q42
    Date: 2020
  25. By: ITF
    Abstract: This report analyses future energy-use in the shipping sector of the Nordic region. It centres on pathways that could allow the Nordic shipping sector to meet energy and environmental policy goals, including energy diversification, cutting air pollution and reducing greenhouse gas emissions. It details the feasible technology options currently available, the status of their adoption and government plans aimed at influencing future developments in this sector. Finally, it assesses implications for policy making for a rapid transition to cleaner maritime shipping. The Nordic region is pioneering efforts to reduce the environmental impact of maritime shipping, making the findings of this report relevant around the globe.
    Date: 2020–11–16
  26. By: Hao Jin (Wang Yanan Institute for Studies in Economics (WISE) and School of Economics, Xiamen University); Chen Xiong (Wang Yanan Institute for Studies in Economics (WISE) and School of Economics, Xiamen University)
    Abstract: We documented that for some oil-exporting countries, the correlation between exchange rates and oil prices is strongly negative during periods of significant oil price drop but is much weaker during other periods. To interpret this time-varying asymmetric correlation, we develop and estimate a Markov-switching small open economy New Keynesian model with oil income as a source of government revenue. In particular, we allow monetary and fiscal policy coefficients to switch across "active" and "passive" regimes. Using data on Russia, our result shows that the policy combinations fluctuate. We find that active monetary policy isolates the exchange rate from oil price variations but changes to passively tolerate depreciation and inflation to support government debt when oil price drops place fiscal policy in a state of stress. Counterfactual policy experiments suggest policy regime switching is crucial to account for the observed asymmetric impact of oil prices on the exchange rate and that the trans-mission channels of oil price shocks differ significantly across policy regimes.
    Keywords: Fiscal Policy; Monetary Policy; Exchange Rate; Oil Price
    JEL: E63 F41 Q43
    Date: 2020–06
  27. By: Berger, Johannes; Strohner, Ludwig; Thomas, Tobias
    Abstract: Der Klimawandel ist eines der bestimmenden Themen der öffentlichen Debatte. Österreich hat sich auf internationaler Ebene verpflichtet, einen signifikanten Beitrag zur Reduktion der CO2 Emissionen zu leisten. Derzeitige Prognosen gehen davon aus, dass Österreich seine nationalen Vorgaben bis zum Jahr 2030 nicht erfüllen wird. Entsprechend sind weitere Maßnahmen notwendig, um diese Ziele zu erreichen. In der vorliegenden Policy Note werden die klimapolitischen Instrumente a) Emissionszertifikatehandel, b) CO2 Steuer und c) Regulierungsmaßnahmen anhand verschiedener Kriterien analysiert. Die Gesamtbewertung hängt davon ab, welchen der Kriterien besonderer Stellenwert beigemessen wird. In Hinblick auf die Zielerreichung hat der Emissionshandel Vorteile, da über die Menge der ausgegebenen Zertifikate das Emissionsziel treffsicher erreicht werden kann. Bei der CO2 Steuer ist die Höhe der Steuer, mit der das vorgegebene CO2-Reduktionsziel erreicht wird, hingegen ex ante bestenfalls abschätzbar. Es besteht demnach die Gefahr, dass der Staat die Steuer zu niedrig oder zu hoch ansetzt und damit das Ziel verfehlt wird oder private Haushalte und Unternehmen unnötig belastet werden. Auch die Vielzahl von Auflagen und Regulierungen sind in der Praxis mit erheblichen Unsicherheiten bezüglich der Zielerreichung verbunden. Kosteneffizienz bedeutet, dass die Klimaziele zu möglichst niedrigsten Kosten für private Haushalte und Unternehmen erreicht werden. Der Emissionshandel und die CO2 Steuer erfüllen das Effizienzkriterium, da die Emissionsvermeidung dort vollzogen wird, wo dies am kostengünstigsten möglich ist. Idealtypisch würden alle Sektoren und Staaten von einem Klimainstrument umfasst. Dies ist in der Praxis allerdings wenig realistisch. Regulierungen berücksichtigen in der Regel die unterschiedlichen Vermeidungskosten von privaten Haushalten und Unternehmen allenfalls unzureichend und führen daher zu ineffizienten Ergebnissen. In Hinblick auf die Verteilungswirkung zeigen CO2-Steuern und Emissionszertifikate eine eher regressive Wirkung, da Haushalte mit niedrigerem Einkommen einen größeren Anteil ihres Einkommens für mit CO2- Emissionen verbundene Produkte wie Strom oder Heizen ausgeben. Je nach Rückerstattung, kann allerdings auch eine progressive Wirkung erzielt werden. Regulierungen können ebenso zu regressiven Wirkungen führen. In Hinblick auf die Umsetzbarkeit sind Klimainstrumente mit relativ geringen Transaktionskosten verbunden. Sollen Maßnahmen rasch umgesetzt werden, spricht dies eher für CO2 Steuern. Der Emissionshandel bedarf einer Implementierungsphase. Regulierungen sehen häufig Bestandsschutz vor, mit entsprechend verzögerter Wirkung. Die volkswirtschaftlichen Auswirkungen der klimapolitischen Instrumente hängen entscheidend von der Kosteneffizienz, der Überwälzung der Kosten auf die Preise sowie der Verwendung der Einnahmen ab. Internationale Studien zeigen, dass die Wachstumswirkung einer CO2 Bepreisung je nach Höhe und Art der Rückerstattung zwischen plus vier und minus acht Prozent auf 40 Jahre kumuliert ausmachen kann. Auch die Verteilungswirkung ist hiervon abhängig. Zusätzlich erhöht die Überwälzung der CO2 Bepreisung in die Verbraucherpreise die Inflation, was über höhere Lohnabschlüsse die Arbeitskosten erhöhen kann. Auch dies sollte bei der Rückvergütung der Einnahmen berücksichtigt werden.
    Date: 2020
  28. By: Destek, Mehmet; Sinha, Avik
    Abstract: The purpose of this study is to examine the validity of Environmental Kuznets Curve hypothesis for ecological footprint with the role of renewable energy use, non-renewable energy use and trade openness in 24 Organisation for Economic Co-operation and Development countries. For this purpose, we investigate the period from 1980 to 2014 using with second generation panel data methodologies which allow to cross-sectional dependence among countries. The group-mean results show that the inverted U-shaped Environmental Kuznets Curve hypothesis does not hold in Organisation for Economic Co-operation and Development countries because we found the U-shaped relationship between economic growth and ecological footprint. In addition, it is concluded that increasing renewable energy consumption reduces ecological footprint and increasing non-renewable energy consumption increases environmental degradation.
    Keywords: Ecological footprint; Environmental Kuznets curve; Renewable energy
    JEL: Q5 Q53
    Date: 2020
  29. By: John C. Wehner
    Abstract: This paper concludes that the electricity cost reduction benefit could be increased by addition of Thermal Energy Storage (TES) using battery refrigeration anchor customers and a Modularity Grid digital platform. A Modularity Grid platform uses artificial intelligence and block chain to optimize distribution of mini-grid electricity distribution to households, commercial customers, anchor loads and battery charging. The Modularity Grid technology, is being piloted in Uganda. Research is warranted to determine if the potential for reducing electricity cost exists. This research is warranted given that: • Current literature discussing mini-grid planning and management of mini-grid electricity distribution in developing countries focuses on the cost reducing benefits of integrating conventional commercial anchor loads generally requiring continuous, reliable electricity supply. • TES batteries have demonstrated commercial viability when charged with intermittent electricity generated from solar and wind generation often used as a source of mini-grid electricity supply. • As discussed below, TES battery/refrigeration anchor loads combined with Modularity Grid could add economies of scale while reducing mini-grid electricity cost below mini-grids with conventional anchor loads - thus increasing the economic viability of mini-grids serving households as well as commercial refrigeration in developing countries • There is a significant need for additional commercial refrigeration in rural locations in developing countries to reduce food loss, increase agricultural productivity and provide refrigeration for health clinics.
    Keywords: batteries, cost reduction, developing countries, electricity, mini-grid, thermal energy storage
    JEL: O33 Q42
    Date: 2021–01–01
  30. By: Jens Horbach (Faculty of Business, University of Applied Sciences Augsburg)
    Abstract: Eco-innovation activities are crucial for the mitigation of climate change and further envi-ronmental problems. Start-up firms might play an important role for this relatively new in-novation field as they are predestinated for realizing completely new ideas compared to in-cumbent firms that are not willing to abandon their established innovation paths. On the oth-er side, start-ups have limited resources and need external regionally available input of knowledge. Based on data of the German IAB/ZEW Start-up Panel in combination with re-gional data at the NUTS 3 level, the paper analyzes the determinants of eco-innovation in start-up firms. The econometric results show that regional spill-over effects seem to be very important for eco-innovation activities of start-up firms. In regions where the existing stock of environmentally related patents is already high, the probability that a start-up firm realiz-es eco-innovations is significantly higher. Furthermore, eco-innovative start-ups show dis-proportionally more difficulties to get financing from external investors.
    Keywords: Regional spill-over effects, environmental innovation, probit models
    JEL: Q55 R11 C25
    Date: 2020–12
  31. By: Hintermann, Beat (University of Basel); Zarkovic, Maja (University of Basel); di Maria, Corrado; Wagner, Ulrich J.
    Abstract: We investigate productivity and cost pass-through of German manufacturing firms using administrative data from 2001 to 2014. Our framework allows for the estimation of quantity-based production functions for multi-product firms while controlling for unobserved productivity shocks and unobserved input quality. Using our parameter estimates, we can compute total factor productivity, markups and marginal costs. We find no effect of the EU ETS on firm productivity or profits for the whole sector, and a positive effect for some industries. Firms pass on shocks to materials costs completely, or even more than completely, whereas pass-through of energy costs is around 35-60%. Although pass-through of energy costs is incomplete, it nevertheless allowed firms to recover more than their total carbon costs due to generous free allocation of allowances. Our results add to the recent literature concerning the causal effects of climate policy on firms and are relevant for policy makers when defining the level of free allowance allocation to industry.
    Keywords: Productivity; production function; markup; cost pass-through; EU ETS; climate policy
    JEL: D24 H23 Q52 Q54
    Date: 2020–09–30
  32. By: World Bank
    Keywords: Energy - Energy Policies & Economics Energy - Energy Technology & Transmission Energy - Renewable Energy Energy - Solar Energy Energy - Windpower
    Date: 2020–05
  33. By: Arik Levinson (Department of Economics, Georgetown University)
    Abstract: I pose three questions: Does pollution make people unhappy? How much? And is the effect proportional to pollution’s estimated effects on mortality and productivity? Answers to those three questions must overcome three obstacles: unobserved characteristics of locales correlated with both pollution and happiness; selection by pollution-averse individuals to less polluted areas; and habituation by residents to local circumstances. Since 2010, when the initial few studies relating happiness to pollution were last surveyed, thirty more have been published. I discuss how the new studies tackle each of those three problems and I devise a method of comparing their findings despite their different measures of both happiness and pollution. I combine the happiness and income coefficients from each study into a willingness-to-pay measure, for a one-day, one-standard-deviation pollution reduction. Finally, I document a surprising concordance between those calculated willingness-to-pay measures and new research assessing the effects of pollution on mortality and productivity
    Keywords: Stated well-being, willingness-to-pay, habituation, short-termism
    JEL: Q51 Q53 H41
  34. By: Langinier, Corinne; Ray Chaudhuri, A. (Tilburg University, School of Economics and Management)
    Date: 2019
  35. By: World Bank
    Keywords: Energy - Electric Power Energy - Energy Finance Energy - Energy Policies & Economics Energy - Renewable Energy Energy - Solar Energy
    Date: 2020–06
  36. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: The study investigates conclusions from the scholarly literature that for low and middle-income countries, higher income inequality is linked with lower carbon dioxide (CO2) emissions. Using a sample of 39 sub-Saharan countries consisting of lower- and middle-income countries, this study investigates how increasing inequality affects renewable energy consumption. Three income inequality indicators are used, namely: the Gini coefficient, the Palma ratio and Atkinson index. The empirical evidence is based on quadratic Tobit regressions. The investigated assumption is only partially valid because a net positive impact is apparent only in one of the three income inequality variables used in the study. Hence, it is difficult to establish whether the inequality or equality hypothesis underpinning the nexus between income inequality and renewable energy consumption hold for Sub-Saharan Africa. However, based on the significant results in terms of the threshold, the equality hypothesis is valid when the Atkinson index is below a threshold of 0.6180 while the inequality hypothesis becomes valid when the Atkinson index exceeds the threshold of 0.6180. Hence, as the main policy implication, for the equitable redistribution of income to be promoted and, therefore, for policies that favor income inequality for renewable energy consumption not to be encouraged, policy makers should keep the Atkinson index below a threshold of 0.6180. An implication for Europe and/or high income countries is provided, notably, that the equality hypothesis on the nexus between income inequality and CO2 emissions may not withstand empirical scrutiny but contingent on: (i) the measurements of income inequality and (ii) inequality thresholds when a specific income inequality measurement is retained.
    Keywords: Renewable energy; Inequality; Sub-Saharan Africa; Sustainable development
    JEL: H10 Q20 Q30 O11 O55
    Date: 2020–01
  37. By: Liyang Han; Jalal Kazempour; Pierre Pinson
    Abstract: When energy customers schedule loads ahead of time, this information, if acquired by their energy retailer, can improve the retailer's load forecasts. Better forecasts lead to wholesale purchase decisions that are likely to result in lower energy imbalance costs, and thus higher profits for the retailer. Therefore, this paper monetizes the value of the customer schedulable load data by quantifying the retailer's profit gain from adjusting the wholesale purchase based on such data. Using a cooperative game theoretic approach, the retailer translates their increased profit in expectation into the value of cooperation, and redistributes a portion of it among the customers as monetary incentives for them to continue providing their load data. Through case studies, this paper demonstrates the significance of the additional profit for the retailer from using the proposed framework, and evaluates the long-term monetary benefits to the customers based on different payoff allocation methods.
    Date: 2020–12
  38. By: François Cohen; Giulia Valacchi
    Abstract: Climate policy will predominantly affect industries that primarily rely on fossil fuels, such as steelmaking. Within these industries, exposure may be different by country according to the energy-intensity of national plants. We estimate the effect of coal prices on steel plant location worldwide and production preferences for BOF, a polluting technology, and EAF, a greener one. A 1% increase in national coal prices reduces BOF installed capacity by around 0.37%, while it has no statistically significant impact on EAF capacity. We simulate the implementation of a stringent European carbon market with no border adjustment and find a non-negligible shift in steel production outside Europe, with a concomitant impact on the technologies employed to produce steel. If applied worldwide, the same policy would primarily affect production in Asia, which relies on BOF and currently benefits from lower coal prices than those expected to emerge in the future.
    Keywords: Steel industry; firm relocation; technological change; energy prices; carbon market; coal.
    Date: 2020–12–08
  39. By: World Bank
    Keywords: Energy - Energy and Natural Resources Environment - Environmental Protection Environment - Forests and Forestry Environment - Natural Resources Management Environment - Sustainable Land Management
    Date: 2020–06
  40. By: Andrew Eil; Jie Li; Prajwal Baral; Eri Saikawa
    Keywords: Energy - Energy Conservation & Efficiency Energy - Energy and Environment Environment - Air Quality & Clean Air Environment - Carbon Policy and Trading Environment - Climate Change Impacts Environment - Climate Change Mitigation and Green House Gases
    Date: 2020–04
  41. By: Joshua Blonz; Jacob Williams
    Abstract: Electricity is used by all businesses in the United States. During quickly moving economic shocks—for example, a pandemic or natural disaster—changes in electricity consumption can provide insight to policymakers before traditional survey-based metrics, which can lag weeks or months behind economic conditions and typically only show a snapshot of when the survey was conducted.
    Date: 2020–10–21
  42. By: Martin Fiszbein; Jeanne Lafortune; Ethan G. Lewis; José Tessada
    Abstract: We use city-industry data from 1890 to 1940 to identify the impact of electricity on manufacturing. We exploit cross-industry variation in pre-electricity energy intensity combined with geographic variation in proximity to early hydroelectric power plants. Labor productivity gains from the arrival of electricity were rapid and long-lasting. Electricity was labor-saving, induced capital deepening, and a hollowing out of the labor skills distribution. We document significant heterogeneity in electricity's effects: in sector-county pairs where the average firm was initially large, we find no significant expansion in employment, while in markets with relatively small firms, output and employment increased.
    JEL: J24 L11 O33
    Date: 2020–11
  43. By: -
    Abstract: En este documento se presentan cuadros regionales y nacionales con datos estadísticos del subsector hidrocarburos de los ocho países que conforman el Sistema de la Integración Centroamericana (SICA): Belice, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panamá y la República Dominicana.
    Date: 2020–12–02
  44. By: Fajardy, M.; Reiner, D M.
    Abstract: Heating and cooling are responsible for over 50% of the world’s final energy consumption, and over 40% of global CO2 emissions. With an increasingly decarbonised electricity grid, the electrification of heating offers one potential alternative to the incumbent, heavily fossil-fuel dominated heating system. However, the high penetration of renewables, the high seasonality and hourly variability of heat demand, and an increasing domestic demand for energy services, including cooling, pose significant balancing challenges for both hourly system operation and the long-term investment decision planning of electricity systems. The combination of both demand-response measures and the integration of flexible systems will be required to deliver low carbon heating and cooling, while integrating an increasing share of renewable electricity, and managing peak load. We provide a global overview of the technical, economic and policy challenges and opportunities to decarbonise heating demand through electrification, in the context of rising demand for cooling services.
    Keywords: Heating, cooling, electrification, decarbonisation, peak load management, demand response
    JEL: L95 O13 Q41 Q42
    Date: 2020–12–09
  45. By: Masako Ikefuji; Yoshiyasu Ono
    Abstract: Using a dynamic optimization model of a monetary economy where persistent unemployment can prevail, we examine the effects of environmental policies on consumption and pollution emissions in a full-employment and a stagnant economy. If full employment prevails, environmental policies such as environmental tax and public pollution abatement naturally crowd out commodity production and hence decrease consumption. However, if unemployment appears, they stimulate consumption and production by increasing total employment and mitigating deflation, thus yielding additional pollution emissions. Net pollution emissions may eventually increase. The optimal environmental policy mix is also examined.
    Date: 2020–12
  46. By: Emilio Cerdá; Javier Campos
    Abstract: El cambio climático afecta y se ve afectado por losrecursos hídricos mundiales. En este trabajo se parte del marco conceptual dela seguridad hídrica, elaborado por el Banco Mundial. A continuación, seanalizan los capítulos correspondientes a hidrología y recursos hídricoscontenidos en los diferentes informes del IntergovernmentalPanel on Climate Change (IPCC), se presentan y comentan algunosaspectos importantes contenidos en el informe mundial de Naciones Unidas de2020 sobre agua y cambio climático en el contexto de desarrollo sostenible, yse considera el enfoque de adaptación basado en el desarrollo de los serviciosecosistémicos. En el trabajo se consideran elementos de mitigación, impactos,vulnerabilidad y adaptación. El trabajo continúa, restringido al ámbito de laUnión Europea, presentando los resultados fundamentales de un importante informede la Agencia Europea del Medio Ambiente sobre adaptación de recursos hídricosy de un trabajo del Joint Research Centre (JRC) dela Unión Europea sobre impactos climáticos relacionados con los recursoshídricos.
    Date: 2020–12
  47. By: Bocklet, Johanna (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: To tackle structural supply-demand imbalances and to increase price stability in times of economic crises, policy makers reformed the European Union Emission Trading System (EU ETS) substantially in 2015 and 2018. As the COVID-19 pandemic led to an unforeseen contraction of the economy, it serves as an example to evaluate if the reforms can live up these goals. The paper at hand uses a partial equilibrium model that depicts current EU ETS regulation to determine the impact of the pandemic on allowance prices and emissions the EU ETS. The results indicate that due to the Market Stability Reserve (MSR) and the Cancellation Mechanism, the Corona crisis reduces aggregate emissions in the EU ETS. This finding holds even if the crisis is followed by an economic rebound in the same or larger magnitude than the initial recession. Further, the new regulation increases the robustness of the ETS towards economic shocks as the reforms increase the relative price stability in the market. While these findings hold for the COVID-19 pandemic, the results can yet not be generalized to a generic economic crisis since they strongly depend on the shape, size and timing of the exogenous shock.
    Keywords: Dynamic Optimization; EU ETS; COVID-19; Market Stability Reserve; Economic Shock
    JEL: D25 D91 H32 Q58
    Date: 2020–12–10
  48. By: Just, Lisa (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Wetzel, Heike (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: In this paper, we use a comprehensive and unique data set of financial, technical and structural characteristics of German distribution network operators from 2011 to 2017 to estimate both the transient and persistent cost efficiency of German distribution network operators. In addition, we analyze the effect of an increasing capacity of distributed generation from renewable energy sources on the total costs of distribution network operators. Our results indicate an average cost reduction potential of approximately 12 percent in the short term and approximately 18 percent in the long term for German electricity distribution network operators. Furthermore, we find that distributed generation from renewable energy sources is a significant cost driver in the production process of network operators. Our study thus contributes to the ongoing debate on incentive regulation and efficiency benchmarking in electricity distribution industries and provides valuable insights for policymakers and regulators.
    Keywords: Electricity distribution; regulation; transient cost efficiency; persistent cost efficiency; distributed generation; stochastic frontier analysis
    JEL: D24 L23 L51 L94
    Date: 2020–12–10
  49. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This paper contributes to the literature on the role of Corporate Social Responsibility (CSR) in oil extraction communities of developing countries. It specifically examines the impact of Global Memorandum of Understanding (GMoU) interventions of multinational oil companies (MOCs) on preventing a resurgence of violence in the Ogoniland of Nigeria. One thousand, two hundred respondent households were sampled across the six kingdoms of Ogoniland. Results from the use of a combined propensity score matching (PSM) and logit model show that GMoUs of MOCs generate significant reductions on key drivers of insurgence in Ogoniland. This suggests that taking on more Cluster Development Boards (CDBs) should form the basis for CSR practice in Ogoniland with the objective of equipping young people with entrepreneurship skills, creating employment, promoting environmental clean-up, and checking the return of violent conflicts. This in turn provides the enabling environment for businesses to thrive in the Nigeria’s oil producing region.
    Keywords: Oil extraction, Resurgence of violence, Corporate social responsibility, Propensity matching score, Logit model, Nigeria’s Ogoniland
    Date: 2020–01
  50. By: Khalil, Makram
    Abstract: This paper studies the ability of manufacturing-specific shocks to explain global oil prices. In an estimated three-region DSGE model (UnitedStates, OPEC, rest-of-world) in corporating two sectors (manufacturing and services) in the oil-importing economies and featuring cross-border manufacturing supply chains, oil inventories as well as endogenous oil supply, such shocks rationalize the observed empirical pattern of a positive comovement between global oil prices and the global cyclical gap between manufacturing output and services provision. Given positive manufacturing technology shocks, oil demand and demand for intermediate manufactured goods as well as global trade decline in tandem. Of similar importance are shocks to final manufactured goods demand that are amplified by input-output linkages and international trade. From the perspective of the US, all foreign shocks that cause higher oil prices - including adverse oil supply shocks - have a positive impact on manufacturing relative to service s as well as a positive impact on aggregate core inflation and policy rates. These dynamics rationalize, to a large extent, the observed pattern during major oil price hikes, and, correspondingly (with opposite signs), during important episodes of low oil prices.
    Keywords: endogenous global oil price,trade channel,manufacturing and services,oil and the business cycle,oil intensity,intermediate inputs
    JEL: E32 F41 Q43
    Date: 2020
  51. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: The study examines nexuses between carbon dioxide (CO2) emissions, renewable energy consumption and inequality in 39 Sub-Saharan African countries for the period 2004-2014. The empirical evidence is based on Quantile regressions. First, in the 25th quantile of the inequality distributions, as long as CO2 emissions metric tons per capita are kept below 4.700 (4.100), the Gini coefficient (Atkinson index) will not increase. These are avoidable CO2 emissions thresholds. Second, renewable energy consumption should be complemented with other policies to: (i) reduce the Gini coefficient when renewable energy consumption is at 50.00% of total final energy consumption and (ii) mitigate the Atkinson index when renewable energy consumption is at 62.500 % of total final energy consumption in the bottom quantiles of the Atkinson index distribution and at 50.00% of total final energy consumption in the 75th quantile of the Atkinson index distribution. These are renewable energy consumption thresholds for complementary policies. The novelty of this study in the light of extant literature is fundamentally premised on providing policy makers with avoidable thresholds of CO2 emissions as well as corresponding thresholds of renewable energy consumption for complementary policies, in the nexus between the green economy and inequality.
    Keywords: Renewable energy; Inequality; Finance; Sub-Saharan Africa; Sustainable development
    JEL: H10 Q20 Q30 O11 O55
    Date: 2020–01
  52. By: Stefan Ambec (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claude Crampes (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: The presence of consumers able to respond to changes in wholesale electricity prices facilitates the penetration of renewable intermittent sources of energy such as wind or sun power. We investigate how adapting demand to intermittent electricity supply by making consumers price-responsive-thanks to smart meters and home automation appliances-impacts the energy mix. We show that it almost always reduces carbon emissions. Furthermore , when consumers are not too risk-averse, demand response is socially beneficial because the loss from exposing consumers to volatile prices is more than offset by lower production and environmental costs. However, the gain is decreasing when the proportion of reactive consumers increases. Therefore, depending on the costs of the necessary smart hardware, it may be non-optimal to equip the whole population.
    Keywords: smart meters,demand response,dynamic pricing,renewables,intermittency,electricity
    Date: 2020
  53. By: Stefan Ambec (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Philippe de Donder (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: The presence of consumers able to respond to changes in wholesale electricity prices facilitates the penetration of renewable intermittent sources of energy such as wind or sun power. We investigate how adapting demand to intermittent electricity supply by making consumers price-responsive - thanks to smart meters and home automation appliances - impacts the energy mix. We show that it almost always reduces carbon emissions. Furthermore, when consumers are not too risk-averse, demand response is socially beneficial because the loss from exposing consumers to volatile prices is more than offset by lower production and environmental costs. However, the gain is decreasing when the proportion of reactive consumers increases. Therefore, depending on the costs of the necessary smart hardware, it may be non-optimal to equip the whole population.
    Keywords: Environmental regulation,Corporate social responsibility,Green consumerism,Product differentiation,Tax,Standard,Green label,Political economy
    Date: 2020
  54. By: ITF
    Abstract: This report examines the climate impact of personal and shared electric kick-scooters, bicycles, e-bikes, electric mopeds, as well as car-based ride-sharing services. Users in cities across the globe are rapidly adopting new mobility forms, helped by digital connectivity and electrification technologies. New urban mobility services are often sold as “green” solutions. But what is their real impact on energy demand and greenhouse gas emissions? This study analysesthe life-cycle performance of a range of new vehicles and services based on their technical characteristics, operation and maintenance, and compares it with that of privately owned cars and public transport. Finally, the report identifies solutions to make new mobility a useful part of the urban transport mix while helping to reduce energy use and limit climate change.
    Date: 2020–09–17
  55. By: Ali Ahmad
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Energy Markets Energy - Energy Policies & Economics Energy - Power & Energy Conversion Energy - Renewable Energy Energy - Solar Energy
    Date: 2020–05
  56. By: Gao, Hang; Cheng, Shenyang; Zhang, Michael
    Abstract: The model based variable speed limit (VSL) control has been proven effective to resolve capacity-drop and time delay at a single recurrent bottleneck in previous studies. This project applies VSL controls to the traffic corridors with multi-segment and multi-bottleneck with the objective of reducing fuel consumption and greenhouse gas emissions. Based on a comprehensive review of existing methods, we develop and compare two fuel consumption centered VSL control (FC-VSL) strategies: flow-based control versus density-based control. These control strategies are implemented in SUMO, a microscopic traffic simulation package, on a 10-mile long freeway section. Results show that the density-based control reduces fuel consumption and gas emissions significantly at the cost of slight increase of travel time. The flow-based control, in contrast, reduces congestion and emissions in the downstream segments but transfers the congestion to the segments upstream of the controlled segments, resulting in an overall performance that is worse than the density-based FC-VSL, and no better than imposing static speed limits.
    Keywords: Engineering, Variable speed limit, traffic throughput, emissions and fuel consumptions, microscopic simulation, probe vehicles
    Date: 2020–10–01
  57. By: Zakaria Sorgho (ULaval - Université Laval [Québec], FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Tharakan Joe (HEC Liège, CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain)
    Abstract: The aim of this paper is to assess the effectiveness on climate change mitigation of the climate-related commitments contained in PTAs. Because of a lack of availability of detailed data on PTAs, the academic literature on the role of PTAs with environmental provisions (PTAwEP) in global climate governance remains limited. A novel and detailed database identifying nearly 300 different types of environmental provisions from more than 680 PTAs since 1947 allows us to establish per country and per year the number of PTAs by distinguishing PTAs with climate-related provisions (PTAwCP) and PTAs with provisions related to other environmental issues. Using panel data covering 165 countries over the period 1995 to 2012, controlling for endogeneity issues, our main result shows that PTAwCP statistically reduce the level of CO2, CH4 and N2O. This suggests that governments seem to comply with the climate-related commitments they made in the PTAs, what potentially helps tackling global warming. Moreover, findings show that to be effective in terms of mitigating climate change, a PTAwEP should contain climate-related commitments.
    Keywords: Preferential trade agreements,Climate-related provisions,Environmental policy,Greenhouse gases,Global warming,Climate change
    Date: 2020–11–04
  58. By: di Maria, Corrado; Zarkovic, Maja (University of Basel); Hintermann, Beat (University of Basel)
    Abstract: The use of price instruments is often advocated by economists, based on their ability to bring about marginal abatement cost equalisation, and hence to achieve targets at least cost. We use the EU ETS as a case study and test this theoretical prediction. We parametrically estimate separate hyperbolic and enhanced hyperbolic distance functions for various industries of the German manufacturing sector and are therefore able to compute the shadow value of CO2 emissions. We are the first to provide firm-level estimates of the marginal cost of CO2 emissions using confidential administrative data for German manufacturing firms between 2005 and 2014. This allows for an unprecedented insight into the cost of the EU flagship climate policy for manufacturing firms. We are able to describe the evolution of the abatement costs over time and across industries, tracking the impact of changes in the policy design and its stringency on the behaviour of the firms in our panel. Our findings provide valuable information for policy makers in the European Union and beyond on the actual level of the costs imposed by climate change policy, and its distributional impacts across firms and industries.
    Keywords: Hyperbolic Distance Function, Stochastic Frontier Analysis, Cost-eectiveness, Emissions Trading
    JEL: C23 D24 L60 Q52
    Date: 2020–09–30
  59. By: Piotr Lewandowski; Jakub Soko³owski; Jan Frankowski
    Abstract: Inefficient heating and insufficient access to energy services can turn a shelter into a health hazard. We study how energy poverty associated with having substandard housing and ineffective heating is related to the risk of developing poor health in an urban context. We conducted a survey of 1,735 individuals living in two middle-sized cities in a coal-dependent region of Poland. We use objective and subjective indicators to measure energy poverty, and self-assessed health status to identify individuals with respiratory, cardiovascular, and musculoskeletal diseases. We find that compared to people living in suitable housing conditions, people who live in substandard housing are more likely to exhibit poor musculoskeletal and cardiovascular outcomes, on average by 10.6 and 6 pp, respectively. Our results also indicate that the energy-poor who use a coal or a wood stove in an apartment have a higher likelihood of developing a respiratory disease (by 27.9 pp on average) than people in energy poverty connected to district heating. In addition, we find that 16% of the explained variance in the probability of developing a respiratory disease is attributable to energy poverty.
    Keywords: energy poverty, heating, housing, health, pollution
    JEL: D10 I14 I32 Q53
    Date: 2020–12
  60. By: Kelvin Say; Michele John
    Abstract: With Australia's significant capacity of household PV, decreasing battery costs may lead to widespread use of household PV-battery systems. As the adoption of these systems are heavily influenced by retail tariffs, this paper analyses the effects of flat retail tariffs with households free to invest in PV battery systems. Using Perth, Australia for context, an open-source model is used to simulate household PV battery investments over a 20-year period. We find that flat usage and feed-in tariffs lead to distinct residual demand patterns as households' transition from PV-only to PV-battery systems. Analysing these patterns qualitatively from the bottom-up, we identify tipping point transitions that may challenge future electricity system management, market participation and energy policy. The continued use of flat tariffs incentivises PV-battery households to maximise self-consumption, which reduces annual grid-imports, increases annual grid-exports, and shifts residual demand towards winter. Diurnal and seasonal demand patterns continue to change as PV-battery households eventually become net-generators. Unmanaged, these bottom-up changes may complicate energy decarbonisation efforts within centralised electricity markets and suggests that policymakers should prepare for PV-battery households to play a more active role in the energy system.
    Date: 2020–12
  61. By: Anne-Lorene Vernay (GEM - Grenoble Ecole de Management); Carine Sebi (GEM - Grenoble Ecole de Management)
    Abstract: Energy communities—groups of citizens, social entrepreneurs and public authorities who jointly invest in producing, selling and managing enewable energy are expected to play a prominent role in the energy transition. Energy communities are fragile individually and they need to pool resources and coordinate their actions to become robust collectively. This paper adopts an ecosystem perspective and aims to identify characteristics that an energy community ecosystem should exhibit to help energy communities emerge, grow and eventually fully realise their potential to transform the energy sector. It compares energy communities in two countries, France and the Netherlands, where energy community ecosystems have attained uneven levels of maturity. We argue that an energy community ecosystem can fully realize its potential if: 1) it revolves around keystone actors that can foster diversity; 2) it is structured around local capacity builders that can act as catalysers; and 3) it develops both competing and symbiotic relations with incumbent energy actors.
    Keywords: Energy communities,Ecosystem,Renewable energy
    Date: 2020

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