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on Regulation |
| By: | Jan Abrell; Clemens Gerbaulet; Franziska Holz; Casimir Lorenz; Hannes Weigt |
| Abstract: | The interdependence of electricity and natural gas is becoming a major energy policy and regulatory issue in all jurisdictions around the world. The increased role of gas fired plants in renewable-based electricity markets and the dependence on gas imports make this issue particular striking for the European energy market. In this paper we provide a comprehensive combined analysis of electricity and natural gas infrastructure with an applied focus. We analyze different scenarios of the long-term European decarbonization pathways sketched out by the Energy Roadmap 2050, and identify criteria related to electricity and/or natural gas infrastructure and the interrelation between both markets. |
| Keywords: | Europe, electricity markets, natural gas markets, networks |
| JEL: | L94 L95 C61 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1317&r=reg |
| By: | Oskar Lecuyer (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - AgroParisTech); Adrien Vogt-Schilb (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - AgroParisTech) |
| Abstract: | Climate change mitigation requires to replace preexisting carbon-intensive capital with different types of cleaner capital. Coal power and inefficient thermal engines may be phased out by gas power and efficient thermal engines or by renewable power and electric vehicles. We derive the optimal timing and costs of investment in a low- and a zero-carbon technology, under an exogenous ceiling constraint on atmospheric pollution. Producing output from the low-carbon technology requires to extract an exhaustible resource. A general finding is that investment in the expensive zero-carbon technology should always be higher than, and can optimally start before, investment in the cheaper low-carbon technology. We then provide illustrative simulations calibrated with data from the European electricity sector. The optimal investment schedule involves building some gas capacity that will be left unused before it naturally depreciates, a process known as \textit{mothballing} or \textit{early scrapping}. Finally, the levelized cost of electricity (LCOE) is a misleading metric to assess investment in new capacities. Optimal LCOEs vary dramatically across technologies. Ranking technologies according to their LCOE would bring too little investment in renewable power, and too much in the intermediate gas power. |
| Date: | 2013–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00850680&r=reg |
| By: | Anna Belova; Wayne B. Gray; Joshua Linn; Richard D. Morgenstern |
| Abstract: | This paper examines the impact of environmental regulation on industry employment, using a structural model based on data from the Census Bureau’s Pollution Abatement Costs and Expenditures Survey. This model was developed in an earlier paper (Morgenstern, Pizer, and Shih (2002) - MPS). We extend MPS by examining additional industries and additional years. We find widely varying estimates across industries, including many implausibly large positive employment effects. We explore several possible explanations for these results, without reaching a satisfactory conclusion. Our results call into question the frequent use of the average impacts estimated by MPS as a basis for calculating the quantitative impacts of new environmental regulations on employment. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:13-36&r=reg |
| By: | Lindback, Morten (Fondsfinans ASA); Osmundsen, Petter (UiS); Øglend, Atle (UiS) |
| Abstract: | . |
| Keywords: | Shale Gas; Oil Prices |
| JEL: | A10 |
| Date: | 2013–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:stavef:2013_005&r=reg |