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on Energy Economics |
| By: | Mr. Simon Black; Antung A. Liu; Ian W.H. Parry; Nate Vernon |
| Abstract: | This paper provides a comprehensive global, regional, and country-level update of: (i) efficient fossil fuel prices to reflect supply and environmental costs; and (ii) subsidies implied by charging below efficient fuel prices. Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1 percent of GDP. Explicit subsidies (undercharging for supply costs) have more than doubled since 2020 but are still only 18 percent of the total subsidy, while nearly 60 percent is due to undercharging for global warming and local air pollution. Differences between efficient prices and retail fuel prices are large and pervasive, for example, 80 percent of global coal consumption was priced at below half of its efficient level in 2022. Full fossil fuel price reform would reduce global carbon dioxide emissions to an estimated 43 percent below baseline levels in 2030 (in line with keeping global warming to 1.5-2oC), while raising revenues worth 3.6 percent of global GDP and preventing 1.6 million local air pollution deaths per year. Accompanying spreadsheets provide detailed results for 170 countries. |
| Keywords: | Fossil fuel subsidies; efficient fuel prices; supply costs; climate change; local air pollution mortality; revenue gains; energy price surge; non-pricing reform; spreadsheet tools |
| Date: | 2023–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/169&r=ene |
| By: | Lukas Boer; Mr. Andrea Pescatori; Martin Stuermer |
| Abstract: | We use structural scenario analysis to show that the climate policy mix—supply-side versus demand-side policies—can lead to different oil price paths with diverging distributional consequences in a netzero emissions scenario. When emission reduction is driven by demand-side policies, prices would decline to around 25 USD per barrel in 2030, benefiting consuming countries. Vice versa, supply-side climate policies aimed at curbing oil production would push up prices to above 130 USD per barrel, benefiting those producing countries that take the political decision to keep on producing. Consequently, it is wrong to assume that oil prices will necessarily decline due to the clean energy transition. As policies are mostly formulated at the country level and hard to predict at the global level, the transition will raise uncertainty about the price outlook. |
| Keywords: | Conditional forecasts; structural vector autoregression; structural scenario analysis; energy transition; oil prices; climate change. |
| Date: | 2023–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/160&r=ene |
| By: | Richard G. Newell; William A. Pizer; Brian C. Prest |
| Abstract: | Government analysts have long used discount rates based on investment rates of return to approximate the effect of capital displacement. However, we show how this approach is not well grounded in economic theory and produces highly biased results, particularly in the context of decisions involving long-lived impacts such as climate change. We demonstrate how analysts can use the conceptually correct shadow price of capital (SPC) approach in a straightforward manner to account for concerns about capital displacement in federal regulatory analysis. We derive a formula for the SPC as a function of four key parameters and propose a central SPC value of 1.1, with a reasonable range of 1.1 to 1.2. We then illustrate how the SPC approach could be easily implemented in practice using the example of the 2015 Clean Power Plan Regulatory Impact Analysis, showing that estimated net benefits are far less sensitive to capital displacement concerns under the analytically correct SPC approach as compared to the inappropriate approach of using a 7 percent investment rate or return. Our work is particularly important given the ongoing efforts to revise federal guidance for benefit-cost analysis and discounting. |
| JEL: | D61 E2 H43 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31526&r=ene |
| By: | Hadush Meles, Tensay; Farrell, Niall; Curtis, John |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp749&r=ene |
| By: | Khondaker Golam Moazzem; A S M Shamim Alam Shibly; Helen Mashiyat Preoty |
| Abstract: | For the power and energy sector, the national budget carries special importance in terms of policy issues, and sectoral allocation priority. It also reflects various commitments of the government on different national and international platforms regarding the shift in the fuel mix. The government as per their commitment has shelved coal fuel-based power generation however attention to renewable energy-based power generation is missing. Private investors are discouraged due to the inadequate fiscal incentive structure. |
| Keywords: | Power sector, National Budget, FY2021-22, renewable energy, fossil fuel, FY2021–22, |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:146&r=ene |
| By: | K M, Dr. SIBY; K J, Teena Rose |
| Abstract: | Climate change is not a cliché anymore but a burning reality with far reaching consequences for the very survival of humankind and the nature. India on the one hand is the third largest carbon emitter and on the other hand is susceptible to the high risks of climate change, ranging from heat waves to cyclones and urban and rural displacements. Though India is a major recipient of international climate finance, it is proven to be more than insufficient to meet the climate change adaptations as per Paris Agreement. The present study analyses the challenges and prospects of India with respect to the Green Climate Fund and the imperative for developing its own paradigm of climate finance. |
| Keywords: | Climate Change, Climate Finance, Green Climate Fund |
| JEL: | Q54 |
| Date: | 2023–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118264&r=ene |
| By: | Simplice A. Asongu (Johannesburg, South Africa); Joel Hinaunye Eita (Johannesburg, South Africa) |
| Abstract: | The study assesses the effect of capital flight in the nexus between foreign aid and renewable energy consumption in 20 countries in Sub-Saharan Africa using data for the period 1996-2018. The empirical technique employed is interactive quantile regressions and the following findings are established. Foreign aid increases renewable energy consumption while capital flight dampens the favorable effect of foreign aid on renewable energy consumption. The underlying significance and corresponding mitigating effect are exclusively relevant to the bottom (i.e., 10th) quantile of the conditional distribution of renewable energy consumption. The findings are robust to simultaneity and the unobserved heterogeneity. Policy implications are discussed. |
| Keywords: | Foreign aid; capital flight; renewable energy; sub-Saharan Africa |
| JEL: | H10 Q20 Q30 O11 O55 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/048&r=ene |
| By: | Mullat, Joseph |
| Abstract: | We have introduced an innovative procedure called "blind statistical scoring" that simplifies the analysis of statistical indicators. This procedure aligns with the principle of parsimony, also known as Ockham's razor. By applying this procedure, we confirm several postulates within the concept of bounded rationality of choice. To illustrate this phenomenon, we conducted an experiment with the data provided by Spritmonitor.de website, which contains data, search results, texts, graphics, software and other information. |
| Keywords: | car market; fuel impulses; monotonic; Ockham's razor; kernel/closer |
| JEL: | C12 C15 G0 G02 R4 Y1 Y10 |
| Date: | 2023–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117929&r=ene |
| By: | Arpit Gupta; Candy Martinez; Stijn Van Nieuwerburgh |
| Abstract: | The conversion of brown office buildings to green apartments can contribute towards a solution to three pressing issues: oversupply of office in a hybrid-and-remote-work world, shortage of housing, and excessive greenhouse gas emissions. We propose a set of criteria to identify commercial office properties that are are physically suitable for conversion, yielding about 11% of all office buildings across the U.S. We present a pro-forma real estate model that identifies parameters under which these conversions are financially viable. We highlight several policy levers available to federal, state, and local governments that could accelerate the conversion, and that may be necessary should policymakers desire the creation of affordable housing. We highlight the role that the Inflation Reduction Act could play. |
| JEL: | G1 Q51 Q54 Q58 R21 R23 R32 R38 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31530&r=ene |
| By: | Paulo MOURA (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Pascale Rouaud (INSEE); Olivier Sanzer (INSEE); Antoine Aka (INSEE); Lucile Jamet (INSEE) |
| Abstract: | In 2018, the average exposure of the inhabitants of the Nice Côte d'Azur metropolis to atmospheric pollution in their place of residence is comparable to that of the inhabitants of other metropolises in the Provence-Alpes-Côte d'Azur region. However, this exposure is highly contrasting: 36% of the residents live in an area where the exposure is high, and 21% in a weakly exposed area. The city center and coastal neighborhoods of Nice, which are socially less privileged, are the most exposed, unlike those in the northern part of the metropolis. Between 2012 and 2018, the population's exposure to atmospheric pollution has significantly declined in the Nice Côte d'Azur metropolis (-21%), as well as in the entire region. Within the metropolis, the decline, however, is less pronounced during this period in the less privileged areas. Since 2018, new actions have been taken in favor of ecological transition and aimed at improving air quality, leading to further reduction in the population's exposure to pollution. |
| Abstract: | En 2018, l'exposition moyenne des habitants de la métropole Nice Côte d'Azur à la pollution atmosphérique sur leur lieu de résidence est comparable à celle des habitants des autres métropoles de Provence-Alpes-Côte d'Azur. Cette exposition est toutefois très contrastée : 36 % des habitants vivent dans une zone où l'exposition est élevée et 21 % dans une zone faiblement exposée. Les quartiers du centre-ville de Nice et du littoral, socialement moins favorisés, sont les plus exposés, à l'inverse de ceux du nord de la métropole. Entre 2012 et 2018, l'exposition de la population à la pollution atmosphérique recule fortement dans la métropole Nice Côte d'Azur (– 21 %), comme dans l'ensemble de la région. Au sein de la métropole, le recul est cependant moins marqué sur cette période dans les zones moins favorisées. Depuis 2018, de nouvelles actions en faveur de la transition écologique et visant à améliorer la qualité de l'air ont été prises, et l'exposition des populations à la pollution s'est encore réduite |
| Keywords: | Exposition moyenne, pollution atmosphérique, Qualité de l’air |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04168632&r=ene |
| By: | SUGINO Makoto |
| Abstract: | This paper utilizes the 2015 Japanese Domestic Input-Output table and empirically analyzes the short-term impact of the EU-CBAM on the Japanese industry. We compare four scenarios reflecting the Japanese response to the implementation of EU-CBAM. The results show that the impact of the implementation of a “new†carbon price within Japan is smaller when the targeted industries are restricted to items regulated under CBAM, namely cement, iron and steel and fertilizers. Furthermore, if effective carbon rate is used to calculate the industry specific carbon price needed to match the EU-ETS permit price, then the impact of the regulated industries is mitigated. This suggests that tax reforms, switching energy taxes to carbon taxes, are needed to mitigate the short-term impact of carbon pricing policies. This will enable Japanese exporting industries to comply with EU-CBAM regulations by reporting their explicit carbon prices. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23060&r=ene |
| By: | Reanos, Miguel Tovar; Curtis, John; Pillai, Arya; Meier, David |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp751&r=ene |
| By: | Johannes Gessner; Wolfgang Habla; Ulrich J. Wagner |
| Abstract: | Under pressure to reduce CO2 emissions, companies are beginning to replace subsidized company car schemes with so-called mobility budgets that employees can spend on leisure and commuting trips, using a broad range of transport modes. Given their novelty, little is known about how mobility budgets should be designed to encourage sustainable choices. Since prices play a limited role in this subsidized setting, our study focuses on behavioral interventions. In a field experiment with 341 employees of a large German company, we test whether social comparisons, either in isolation or in combination with a climate-related moral appeal, can change the use of different means of transportation. We find strong evidence for a reduction in car-related mobility in response to the combined treatment, which is driven by changes in taxi and ride-sharing services. This is accompanied by substitution towards micromobility, i.e., transport modes such as shared e-scooters or bikes, but not towards public transport. We do not find any effects of the social comparison alone. Our results demonstrate that small, norm-based nudges can change transportation behavior, albeit for a limited time. |
| Keywords: | mobility behavior, randomized experiment, nudging, descriptive norm, injunc- tive norm, social norms, moral appeal, habit formation |
| JEL: | C93 D04 D91 L91 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_451&r=ene |
| By: | Mengmou Li; Taichi Tanaka; A. Daniel Carnerero; Yasuaki Wasa; Kenji Hirata; Yasumasa Fujisaki; Yoshiaki Ushifusa; Takeshi Hatanaka |
| Abstract: | In this research, we investigate Net-Zero Energy Houses (ZEH), which harness regionally produced electricity from photovoltaic(PV) panels and fuel cells, integrating them into a local power system in pursuit of achieving carbon neutrality. This paper examines the impact of electricity sharing among users who are working towards attaining ZEH status through the integration of PV panels and battery storage devices. We propose two potential scenarios: the first assumes that all users individually invest in storage devices, hence minimizing their costs on a local level without energy sharing; the second envisions cost minimization through the collective use of a shared storage device, managed by a central manager. These two scenarios are formulated as a stochastic convex optimization and a cooperative game, respectively. To tackle the stochastic challenges posed by multiple random variables, we apply the Monte Carlo sample average approximation (SAA) to the problems. To demonstrate the practical applicability of these models, we implement the proposed scenarios in the Jono neighborhood in Kitakyushu, Japan. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2308.07334&r=ene |
| By: | Jansen, Erik; Schuler, Julia; Ardone, Armin; Slednev, Viktor; Fichtner, Wolf; Pfetsch, Marc E. |
| Abstract: | For the global transition of energy systems, the establishment of new energy storage and carrier media to balance the geographical and temporal availability of renewable energy is a necessity. In this context, the interdisciplinary cluster project Clean Circles is investigating the potential of an iron-based circular energy economy. Compared to hydrogen, an energy carrier produced from renewables through electrolysis and widely discussed option for future global energy trade, iron offers several advantages. An ironbased circular energy economy re-uses existing infrastructure associated with the transportation of and the electricity generation from coal. In this paper, we present a model-based approach for the cost-minimal selection of energy export regions and logistic routes to import iron for electricity generation to power plant sites in Germany and return iron oxide to reduction plants in the export regions. To demonstrate the performance of the model, we conduct a case study of operating all German hard coalfired power plants in operation in 2030 on iron. For the iron reduction process site selection, we provide the optimization with renewable energy potentials and costs in coastal regions of MENA and Patagonia. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:70&r=ene |
| By: | Crampes, Claude; Ladoux, Norbert; Lozachmeur, Jean-Marie |
| Abstract: | We analyze a Pareto optimal income tax problem à la Mirrlees (1971) in which households consume three types of goods: energy goods, energy efficient investments and non-energy goods. The two main ingredients of our normative analysis are: i) an indirect relationship between energy and the satisfaction of energy needs, as energy-efficient investments transform energy into services such as light, heating, and air conditioning; and, ii) imperfect information of the policy designer as regards the level of energy efficiency of households’ housing and their labor market productivity. Each household differs with respect to these two latter characteristics, and the government designs a non-linear income tax combined with energy and energy efficient investment non linear pricing that maximizes a weighted sum of households’ utilities. We show that a benevolent social planner should distort energy prices in a way that depends on the difference between the saturation of energy needs and the complementarity between energy and the level of energy efficiency in the provision of energy services. A sufficient condition for energy consumption to be subsidized is that the rebound effect is small. Second, when individuals can invest in energy efficiency on top of energy consumption, these investments should always be subsidized and the marginal subsidy should always be higher than the one on energy consumption. |
| JEL: | H21 I38 Q48 |
| Date: | 2023–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:128384&r=ene |
| By: | Ganhammar, Kajsa (Department of Economics, Lund University) |
| Abstract: | Market-based climate policies have received increased attention, making it important to understand how such politically created markets affect competition in the electricity market. This paper focuses on the green certificate policy which financially supports producers of renewably sourced electricity by means of tradable certificates, and develops a simple duopoly model that incorporates both the electricity and the green certificate markets in an auction-based setting. The results suggest that, in case the subsidised technology has a higher expected marginal cost than the conventional technology, the policy can improve competition and efficiency in the electricity market. Conversely, if producers are ex-ante symmetric in their marginal costs, the advantage the policy creates enables the subsidised producer to bid higher at given cost as the probability of winning the electricity auction increases. This is harmful for competition and results in high consumer prices of electricity. |
| Keywords: | asymmetric procurement auctions; electricity markets; green certificates; renewable energy |
| JEL: | D43 D44 Q48 |
| Date: | 2023–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2023_008&r=ene |
| By: | Aurelien K. Yeyouomo (Yaoundé, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This study empirically examines the effect of sustainable urbanization on vulnerability to climate change over a sample of 52 African countries from 1996 to 2019. We use the two-stage system generalized method of moments (GMM) empirical strategy and mediation analysis to assess direct and indirect impacts, respectively. The results of the direct analysis reveal that sustainable urbanization reduces vulnerability to climate change. The results of the indirect analysis also show that sustainable urbanization significantly reduces vulnerability to climate change through the channels of digitalization and institutional quality. The results also highlight that considering the direct effect of sustainable urbanization alone underestimates the impact of reducing vulnerability to climate change. The results are robust to an alternative indicator of vulnerability to climate and other estimation techniques. These results have important policy implications and provide evidence for the improvement of sustainable urbanization in terms of access to basic services or reduction of vulnerability to climate change. |
| Keywords: | Sustainable urbanization, Vulnerability to climate change, Digitalization, Institutional quality, Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/045&r=ene |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University) |
| Abstract: | This paper investigates the nature and causes of high electricity prices in the Philippines. To understand the nature of the problem, we examine the industry's structure and the ensuing composition of the electricity tariff. Since 2001, the electricity industry has been undergoing a gradual transformation. From being vertically integrated, where the government holds the monopoly over transmission and owns most of the generation assets, the functions of generation, transmission, distribution, and retailing have been unbundled, and, at the same time, an electricity spot market has been established. Concurrent with the unbundling of functions is the unbundling of electricity rates. Two decades since the reform, the electricity rates in the Philippines are still among the highest. The paper identifies the causes and offers potential remedies. |
| Keywords: | Electricity, Philippines, deregulation |
| JEL: | Q41 Q48 L49 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202301&r=ene |
| By: | Kaukin, Andrey (Каукин, Андрей) (The Russian Presidential Academy of National Economy and Public Administration); Kasyanova, Ksenia (Касьянова, Ксения) (The Russian Presidential Academy of National Economy and Public Administration); Kosarev, Vladimir (Косарев, Владимир) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The aim of this study is to develop new methods for forecasting time series with data of different frequencies among exogenous factors; forecasting the indicators of the wholesale electricity market in Russia using methods of combining data of different frequencies, including those based on algorithms of convolutional neural networks. The structure of the work is presented in four sections. The first section analyzes methods for forecasting time series with combining data of different frequencies. The second section presents the architecture of a convolutional network that allows the use of data of different frequencies. The third section presents a price model for the wholesale electricity market using data from the Atlas of Russian Energy. The fourth section presents recommendations and main conclusions of the work. |
| Keywords: | electricity demand, wholesale electricity market, generation capacity, day-ahead market, price modeling, multi-frequency data, convolutional neural networks |
| Date: | 2021–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220135&r=ene |
| By: | Hatami-Marbini, A.; Arabmaldar, A.; Otu Asu, J. |
| Date: | 2022–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:138964&r=ene |
| By: | Fett, Daniel; Fraunholz, Christoph; Lange, Malin |
| Abstract: | In order to increase self-consumption (SC) more than half of the residential photovoltaic (PV) systems in Germany are installed with battery storage systems (BSS). The utilization of these BSSs however varies throughout the year and therefore they could be used for other services to further increase their profitability. Recent changes in regulation for frequency containment reserve (FCR) facilitate multi-use concepts and first aggregators are already prequalified for the German market. Against this background, we analyze the potential for the joint provision of FCR and SC increase from residential BSSs with a linear optimization model applied to 162 German households. Different scenarios including fixed shares of the BSS reserved for FCR, priorization of SC or a joint optimization of SC and FCR are examined. We find that fixed shares of FCR only lead to minimal additional financial benefits. Both, the joint optimization of FCR and SC and prioritizing SC lead to higher additional gains, while the loss in SC is low in both scenarios. Moreover, even when prioritizing SC still high shares of the BSS can be used for FCR. Only a significant increase in FCR prices leads to SC being sacrificed for higher FCR shares. |
| Keywords: | Frequency containment reserve, Residential battery storage system, Self-consumption, Multi-use, Pooling |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:71&r=ene |
| By: | Yang, Hong; Fulton, Lewis |
| Abstract: | The US and Europe have ambitious plans and targets for light-duty electric vehicle (EV) market growth. This study estimates planned EV production capacity in both regions and investigates whether coordinating their combined production capacity would help them meet targets. We find that, while each region is developing a strong EV production capacity domestically, either may fall short of their targets given investments in EV production announced to-date. Transatlantic trade can serve as a critical “spare capacity” to add assurance. Yet, in scenarios where both regions seek higher EV sales targets, a combined shortfall in annual EV production capacity could reach over 6 million EVs compared to the 20 million needed by 2030. An additional investment of about $42 billion across both regions could address this concern, however, time is getting short to build new plants and bring them online. The capacity shortfall may persist even with planned EV production capacity from other major manufacturing centers such as Canada, Mexico, Japan and South Korea. Additional policies and incentives will be needed to ensure planned capacities are developed in a timely manner. Some options include providing incentives to invest and reducing barriers to trade. Exploring the potential supply of vehicles from other major EV manufacturing countries, such as China and India, is recommended. |
| Keywords: | Engineering, Social and Behavioral Sciences, Electric Vehicle, Production, Investment, Transatlantic, Trade, North America, Europe, European Union |
| Date: | 2023–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt07z8k57q&r=ene |
| By: | Belloc, Ignacio; Molina, José Alberto |
| Abstract: | This paper examines convergence patterns in total greenhouse gas emissions across 114 countries from 1990 to 2019. Prior research has largely focused on one representative greenhouse gas, carbon dioxide emissions, but our goal is to broaden the study. We use the club convergence test to contrast the null hypothesis of convergence for a pool of data and identify subgroups of convergence. The results reveal different clubs according to the air pollutant considered, indicating the importance of considering a range of air pollutants in convergence analyses. We also explore the main determinants of the observed convergence patterns and estimate various ordinal models. We find that income level, urbanization, natural resources dependency, renewables energy consumption, trade openness, and corruption level all contribute to explain these different patterns. Our determinant analyses especially note the importance of institutional quality. The results are important in reformulating current environmental policies, which are mostly based on the hypothesis of overall convergence, according to the different convergence clubs detected. |
| Keywords: | greenhouse gas emissions, convergence, global analysis, environmental policy, institutions |
| JEL: | C23 O47 O50 Q53 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1318&r=ene |
| By: | Ildar Daminov (IREENA - Institut de Recherche en Energie Electrique de Nantes Atlantique UR 4642 - Nantes Univ - IUT La Roche-sur-Yon - Institut Universitaire de Technologie - La Roche-sur-Yon - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - IUT Saint-Nazaire - Nantes Université - Institut Universitaire de Technologie Saint-Nazaire - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - EPUN - Nantes Université - Ecole Polytechnique de l'Université de Nantes - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université); Anne Blavette (SATIE - Systèmes et Applications des Technologies de l'Information et de l'Energie - ENS Rennes - École normale supérieure - Rennes - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay - Université Gustave Eiffel - CY - CY Cergy Paris Université); Salvy Bourguet (IREENA - Institut de Recherche en Energie Electrique de Nantes Atlantique UR 4642 - Nantes Univ - IUT La Roche-sur-Yon - Institut Universitaire de Technologie - La Roche-sur-Yon - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - IUT Saint-Nazaire - Nantes Université - Institut Universitaire de Technologie Saint-Nazaire - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - EPUN - Nantes Université - Ecole Polytechnique de l'Université de Nantes - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université); Hamid Ben Ahmed (SATIE - Systèmes et Applications des Technologies de l'Information et de l'Energie - ENS Rennes - École normale supérieure - Rennes - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay - Université Gustave Eiffel - CY - CY Cergy Paris Université); Thomas Soulard (LHEEA - Laboratoire de recherche en Hydrodynamique, Énergétique et Environnement Atmosphérique - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - ECN - École Centrale de Nantes - Nantes Univ - Nantes Université); Pierre Warlop (WPD Offshore) |
| Abstract: | The overplanting of an offshore wind farm (OWF) with dynamic thermal ratings (DTR) is a promising solution for enhancing OWF performance. As the overplanted OWF generates an additional energy and DTR ensures its better transfer, the research question is if final OWF profits would be higher than associated costs. While there has been growing attention on this subject in recent years, there is still no research investigating the commitment strategies of overplanted OWFs with DTR. This paper investigates how commitment strategies may affect the economic performance of an overplanted OWF with DTR. The results show that, depending on the day-ahead commitment strategy, the annual revenue of OWFs may theoretically increase by up to 21% even without overplanting nor DTR, and by up to 204 % with overplanting and DTR. However, although commitment strategies, overplanting and DTR may significantly increase annual revenues of an OWF, its net present value (NPV) still heavily depends on market prices. In the presence of low market prices as in 2018, overplanting actually reduces the NPV of an OWF and, under the conditions considered here, keeps its NPV always negative. On the contrary, in the presence of high market prices as in 2022 or feed-in tariffs, the overplanting increases the OWF NPV. In the latter case, the NPV of the overplanted OWF is estimated between 1.5 billion and 9.5 billion euros while the discounted payback period is 3-12 years. The economic benefits of DTR for the overplanted OWF are estimated between 0.7 and 1 billion euros. The paper also shows that the optimal overplanting rate is very different whether the NPV or LCOE are considered. Finally, the paper shows that committing to the actual OWF power production (i.e. assuming a perfect power forecast) does not necessarily result in the highest revenue. |
| Keywords: | submarine export cable, dynamic thermal rating, overplanting, imbalance, offshore wind farm |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04183205&r=ene |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University); Karl Robert L. Jandoc (School of Economics, University of the Philippines); Miah Maye Pormon (University of the Philippines) |
| Abstract: | This paper empirically investigates the contributory factors to forced outage declarations of power plants through a survival analysis model with recurring events. Using plant-level data in the Philippines, we find that higher reserve margins, higher share capacity (a measure of concentration) and the number of planned outages and days since the last maintenance (preventive maintenance indicators) reduce the risk of forced outages. On the other hand, an increase in the use rate (a measure of the intensity of power plant utilization), and geothermal, solar and biodiesel plants correlate positively to more forced outages. Focusing on episodes where outages were disproportionately higher in the past decade— we find that thinning reserve margin correlates significantly to forced outage incidence. This may indicate potential tacit coordination among generators to withhold capacity in the short run. |
| Keywords: | forced outage; survival analysis; recurring events; Philippines |
| JEL: | K32 N75 Q41 Q48 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202303&r=ene |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University) |
| Abstract: | This paper compares electricity cost structure in the Philippines vis-Ã -vis other Asian countries. The electricity prices in the Philippines are high by regional standards. From the comparative assessment, there is room for cost reduction from the various segments of the power supply chain in the Philippines. First is the utilization of an optimal mix of fuel sources based on the least-cost rule, where cost takes into account the environmental and health costs. The coal and petroleum excise taxes in the 2017 tax reform were a step in the right direction. As the costs of intermittent renewables, especially solar and storage, continue to fall, they may be increasingly attractive, especially in remote areas that use diesel-powered generators. Improvements in the thermal efficiency of coal-fired power plants could also help decrease the cost of fuel. Transmission and distribution losses in the Philippines are also high by regional standards. An assessment of the national grid code and technical audit may be warranted. Finally, the value-added tax in the Philippines is also high. Consumers in the Philippines are also taxed for systems losses and subsidies. Reevaluation of the tax base is also recommended. |
| Keywords: | Electricity, Electricity price, Philippines and Asia, deregulation |
| JEL: | Q41 Q48 L4 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202302&r=ene |
| By: | Vasileios Alevizos; Ilias Georgousis; Anna-Maria Kapodistria |
| Abstract: | Various studies have been conducted in the fields of sustainable operations management, optimization, and wastewater treatment, yielding unsubstantiated recovery. In the context of Europes climate neutrality vision, this paper reviews effective decarbonization strategies and proposes sustainable approaches to mitigate carbonization in various sectors such as building, energy, industry, and transportation. The study also explores the role of digitalization in decarbonization and reviews decarbonization policies that can direct governments action towards a climate-neutral society. The paper also presents a review of optimization approaches applied in the fields of science and technology, incorporating modern optimization techniques based on various peer-reviewed published research papers. It emphasizes non-conventional energy and distributed power generating systems along with the deregulated and regulated environment. Additionally, this paper critically reviews the performance and capability of micellar enhanced ultrafiltration (MEUF) process in the treatment of dye wastewater. The review presents evidence of simultaneous removal of co-existing pollutants and explores the feasibility and efficiency of biosurfactant in-stead of chemical surfactant. Lastly, the paper proposes a novel firm-regulator-consumer interaction framework to study operations decisions and interactive cooperation considering the interactions among three agents through a comprehensive literature review on sustainable operations management. The framework provides support for exploring future research opportunities. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2308.00808&r=ene |
| By: | Geßner, Daniel |
| Abstract: | Government support for green technologies and renewable energy in particular has become an integral cornerstone of economic policy for most industrialized economies. Due to competitive price determination and supposedly higher efficiency, auctions have in recent years widely succeeded feed-in-tariffs as the primary support instrument (del Rio & Linares, 2014; REN21, 2021). However, literature still struggles to produce causal evidence to validate mostly descriptive findings for efficiency gains. Yet, this evidence is needed as a foundation to provide robust recommendations to policy makers (Grashof et al., 2020). By utilizing a difference-in-differences approach, this paper provides such evidence for a German photovoltaic (PV) auctioning program which came into effect in 2015. Results for this natural experiment confirm that cost-effectiveness improved significantly while previous literature shows that capacity expansion remained high. Results additionally show that falling prices for PV panels were the primary driver of cost reductions and wages also exert high influence on support price. Input cost development therefore indeed strongly influences support level which was the aim with introducing competitive auctions. Interest rate development cannot be linked to support level development, most probably due to the low interest environment in considered period. |
| Keywords: | auctions, feed-in-tariffs, photovoltaic (PV), renewable energy policy, policy valuation, difference-in-differences |
| JEL: | Q48 Q55 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuewep:105&r=ene |
| By: | Khondaker Golam Moazzem; Abdullah Fahad; Helen Mashiyat Preoty; Shah Md. |
| Abstract: | Bangladesh’s power sector is guided by the Power Sector Master Plan 2016 (PSMP 2016) which is being updated right now. The study looks into the state of the power sector during the last three master plans (PSMP 2005, PSMP 2010, PSMP 2016) to review the major issues and challenges of the sector. Three expert group meetings (EGMs) were conducted representing three stakeholder groups—government, private sector, civil society organisations (CSOs) and academia—to identify stakeholders’ views on the challenges of the power sector. Finally, the study analyses the level of stakeholders’ participation in the formulation of master plans for the power sector. It was found that the lack of coordination was the key weakness in successive PSMP formulation processes, and stakeholders’ participation was mainly limited to government agencies. |
| Keywords: | Power & Energy Sector, National Budget, FY2021–22, Power Sector Master Plan, clean energy, stakeholder participation |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:147&r=ene |
| By: | Yassine Kirat (LEO - Laboratoire d'Économie d'Orleans - UO - Université d'Orléans - UT - Université de Tours) |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03676616&r=ene |
| By: | Fronteddu, Antonio |
| Abstract: | The pursuit of global carbon neutrality makes the energy transition process no longer procrastinable. The switch towards renewable-based energy systems is paving the way for new forms of energy governance that prioritise the role of commons by demarketising access to energy. However, governments’ strategies worldwide seem to prioritise innovation in the raw materials (sun, wind, etc.) rather than in governance – favouring the continued extraction of energy from resource-rich regions. This work will analyse the case of Sardinia as an example where these two phenomena intersect contradictorily, by comparing the bottom-up nature of energy communities (ECs) vis-á-vis the top-down nature of public-private initiatives, alongside their policymaking trajectories. The key insights that will stem from this thesis elucidate a continuum with prior top-down policies of economic extractivism operated by the Italian government in Sardinia. Such top-down policies are conceptualised thanks to core and energy periphery theories and can explain the current mainstream regime of energy transition. Alternative strategies to pursue policy are conceptualised thanks to the energy democracy theory. Such theory envisions an active citizen engagement alongside the sustainable consumption of renewable energy and resources within the realm of energy communities. Therefore, the thesis will conclude that although large-scale top-down policies are being operated in the island, with special reference to the energy transition, energy communities can forge bottom-up alternative examples of policymaking, enabling an energy transition that can cross-tackle long-standing problems of Sardinian society, such as a stagnant economy, depopulation, self-determination, issues of land, landscapes, and pollution. |
| Date: | 2023–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:pgv78&r=ene |
| By: | Seyed Mahdi Mahdavijahromi (Islamic Azad University, Estahban Branch); Rahim Aminzadeh (TVU - Technical and Vocational University); Mehran Pour Faraj |
| Abstract: | Since gas, as one of the most important carriers of energy, plays a significant role in the society's economy, especially in setting up industries, the implementation of gas supply projects in the current situation is the pulse of the society's economy, but most of the mentioned projects currently have the problem of prolonging the duration. Implementation and multiple completion costs are faced. During the pathologies conducted in the provincial gas companies, one of the most important factors of project failure is the weakness of the consultant. Therefore, choosing an efficient consultant can significantly increase the success rate of the project. Until today, there are no integrated technical evaluation tables in the field of design to identify effective indicators for the selection of consultants in provincial gas companies. In this research, we intend to conduct research on the forms prepared in the provincial gas company, as well as valid circulars, publications, and regulations regarding the preparation of appropriate and integrated criteria. In this research, a method for choosing the right consultant has been presented using decision-making techniques. First, according to the regulation of paragraph (e) of article 29 of the law on tenders and quality evaluation forms in the field of design used in provincial gas companies in order to select a consultant, the indicators were identified and to ensure the effectiveness of the identification indicators. done in the consultant selection process and all indicators affecting the selection of consultants have been identified and confirmed using the structural equation method (factorial confirmation method and T-test) and in the next step by collecting experts' opinions and analyzing the indicators by Group AHP technique and according to the group opinions of several 2 experts, the relative weight of each index has been determined and finally, the effective indices in the technical evaluation process in the field of design in order to select the correct consultant in the provincial gas companies have been determined. |
| Keywords: | Technical evaluation form in the field of design, AHP method, Structural equation method, Provincial gas companies, Iran National Gas Company, Consulting services |
| Date: | 2021–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04182943&r=ene |
| By: | Khondaker Golam Moazzem; Helen Mashiyat Preoty; Moumita A Mallick |
| Abstract: | Based on global and regional geopolitical considerations, as well as the challenges posed by climate change, Bangladesh has made commitments in both national and international levels to increase the proportion of RE within its energy sector. But the measures being taken are insufficient to fulfil the commitments as the domestic energy policy landscape is yet to establish RE as a feasible power generation source to meet the domestic requirements. This study will identify the barriers and weaknesses within Bangladesh’s energy policy landscape that hinder the attraction of domestic and foreign investments in RE-based power generation. For Bangladesh, a few additional policy instruments may be helpful to support the RE within the existing policy landscape. |
| Keywords: | Power & Energy Sector, National Budget, FY2021–22, Renewable Energy, clean energy, stakeholder participation |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:148&r=ene |
| By: | Ahmed Mohamed (G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Rémy Rigo-Mariani (G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Vincent Debusschere (G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Lionel Pin (Atos Worldgrid [Grenoble]) |
| Abstract: | This paper investigates the opportunity for a Battery Energy Storage System (BESS) to participate in multiple energy markets. The study proposes an offline assessment to calculate the maximum annual revenues to reach the optimum stack of services through deterministic simulations. The markets include wholesale energy markets (day-ahead and intraday), ancillary services (frequency regulation and reserve), and the capacity mechanism. The study case performed on the French markets shows that frequency services overperform the other markets, where the long-term capacity market has the least potential. Moreover, providing multiple services maximizes the battery's revenues, for example, participating in joint energy and reserve markets showed a 76% increase in annual profits. Furthermore, a novel operation approach was proposed to enhance the performance of these joint markets, by indirectly utilizing energy products as frequency reserves. The results demonstrate that the proposed formulation allows a revenue increase of ∼23% compared to the conventional framework for the provision of frequency regulation with BESSs. Additionally, the joint markets have been shown to be economically viable with 6.2 years payback period after considering battery degradation and depreciation cost. |
| Keywords: | energy storage, energy markets, reserve markets, optimization, stacked revenue |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04182119&r=ene |
| By: | Yeboah, Samuel; Boateng Prempeh, Kwadwo |
| Abstract: | This systematic review explores the role of environmental finance in advancing sustainable development in developing countries through the implementation of green growth strategies. Environmental finance involves the allocation of financial resources to support projects aimed at mitigating environmental challenges and promoting a transition towards a greener economy. The review examines various sources of environmental finance, including public, private, and international funding mechanisms, and assesses their effectiveness in funding initiatives that address climate change, conservation, and sustainable economic growth. The study also highlights challenges and opportunities associated with mobilizing environmental finance in developing nations, emphasizing the need for innovative financing mechanisms, capacity building, and international collaboration. By analysing empirical evidence and case studies, this review contributes to a comprehensive understanding of how environmental finance can play a pivotal role in shaping the sustainable development trajectory of developing countries. |
| Keywords: | Environmental finance, green growth strategies, sustainable development, developing countries, funding mechanisms, climate finance, renewable energy, sustainable agriculture, international cooperation, financial innovation |
| JEL: | O16 O44 Q56 |
| Date: | 2023–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118281&r=ene |
| By: | Duong, Thi Minh Phuong |
| Abstract: | Utilizing the BMF approach offers valuable insights into the relationship between air pollution, individual perceptions, migration intentions, and how these factors align with rational decision-making traits |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rzfge&r=ene |
| By: | Bernardo Caldarola; Dario Mazzilli; Lorenzo Napolitano; Aurelio Patelli; Angelica Sbardella |
| Abstract: | Economic Complexity (EC) methods have gained increasing popularity across fields and disciplines. In particular, the EC toolbox has proved particularly promising in the study of complex and interrelated phenomena, such as the transition towards a greener economy. Using the EC approach, scholars have been investigating the relationship between EC and sustainability, proposing to identify the distinguishing characteristics of green products and to assess the readiness of productive and technological structures for the sustainability transition. This article proposes to review and summarize the data, methods, and empirical literature that are relevant to the study of the sustainability transition from an EC perspective. We review three distinct but connected blocks of literature on EC and environmental sustainability. First, we survey the evidence linking measures of EC to indicators related to environmental sustainability. Second, we review articles that strive to assess the green competitiveness of productive systems. Third, we examine evidence on green technological development and its connection to non-green knowledge bases. Finally, we summarize the findings for each block and identify avenues for further research in this recent and growing body of empirical literature. |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2308.07172&r=ene |
| By: | Farrell, Niall |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp746&r=ene |
| By: | Fantazzini, Dean; Kurbatskii, Alexey; Mironenkov, Alexey; Lycheva, Maria |
| Abstract: | This paper investigates whether augmenting models with the variance risk premium (VRP) and Google search data improves the quality of the forecasts for real oil prices. We considered a time sample of monthly data from 2007 to 2019 that includes several episodes of high volatility in the oil market. Our evidence shows that penalized regressions provided the best forecasting performances across most of the forecasting horizons. Moreover, we found that models using the VRP as an additional predictor performed best for forecasts up to 6-12 months ahead forecasts, while models using Google data as an additional predictor performed better for longer-term forecasts up to 12-24 months ahead. However, we found that the differences in forecasting performances were not statistically different for most models, and only the Principal Component Regression (PCR) and the Partial least squares (PLS) regression were consistently excluded from the set of best forecasting models. These results also held after a set of robustness checks that considered model specifications using a wider set of influential variables, a Hierarchical Vector Auto-Regression model estimated with the LASSO, and a set of forecasting models using a simplified specification for Google Trends data. |
| Keywords: | Oil price; Variance Risk Premium; Google Trends; VAR; LASSO; Ridge; Elastic Net; Principal compo-nents, Partial least squares |
| JEL: | C22 C32 C52 C53 C55 C58 G17 O13 Q47 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118239&r=ene |