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on Regulation |
| By: | Khanna, Madhu; Oliver, Anthony |
| Abstract: | A range of policies have been implemented in the agricultural, transportation, and electric power sectors, which comprise the majority of GHG emissions in the US. Two prominent policy sets are the national RFS and state-level RPSs. The purpose of this research is to examine the GHG implications of the state RPSs and their welfare costs of mitigating GHG emissions. We also analyze the interactions between the RFS and state RPS policies and the extent to which these policies create competition or complementarity in their use of biomass for meeting the standards since the production of cellulosic biofuels also generating renewable electricity as a co-product that can substitute for fossil fuel based grid electricity and contribute to meeting the RPS. We compare the cost effectiveness of these policies implemented jointly to a carbon tax policy that achieves the same level of GHG emissions. We find that while a carbon tax increases social welfare, the RPS imposes a welfare cost on the economy. However, the implementation of the RFS does reduce the welfare costs of the RPSs by substituting co-product electricity for costly biomass electricity and providing a terms of trade benefit in the agricultural and fuel sectors. We find that the RPSs cause an increase in renewable energy based generation, which primarily offsets natural gas based generation rather than coal and increases total electricity consumption. The joint implementation of RFS and RPSs results in reduction in the use of co-firing and dedicated biomass. Coal based generation increases relative to the RPSs only scenario, while natural gas generation decreases relative to the RPSs only scenario. The implication of this is that the effects of jointly implementing the RFS and RPSs on GHG emissions are not additive. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:154999&r=reg |
| By: | Michal Zator |
| Abstract: | This work discusses potential pitfalls of applying linear regression models to explaining the relationship between spot and futures prices in electricity markets. We briefly introduce the theory for the analysis of the spot-futures price relationship and highlight selected issues of multiple regression models.We show the bias coming from the simultaneity problem, analyze the effect of correlated measurement errors in both dependent and independent variables and discuss the properties of coefficients estimated in the presence of a seasonal component and without it. We show that these problems appear in the work of Botterud, Kristiansen, and Ilic (2010), who analyze the relationship between spot and futures prices in the Nord Pool power exchange. We study a very similar dataset and show that the conclusions of Botterud et al. are partially invalid or misleading. In particular, the effect of the water reservoir level on the risk premium is likely to be positive, which is to be expected, but contradicts Botterud et al. results. In addition we show that the coeffcients obtained by Botterud et al. can be interpreted only when we consider the ex-post risk premium and not the ex-ante one. |
| Keywords: | electricity markets; risk premium; convenience yield; linear regression; seasonality |
| JEL: | C20 C26 C51 G13 Q40 |
| Date: | 2013–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1306&r=reg |
| By: | Mills, Bradford; Schleich, Joachim |
| Abstract: | New energy efficient lighting technologies have the potential to significantly reduce household electricity consumption. But adoption of many technologies has been slow. This paper employs a unique dataset of German households to examine the factors associated with the replacement of old incandescent lamps (ILs) with new energy efficient compact fluorescent lamps (CFLs) and light emitting diodes (LEDs). The 'rebound' effect of increased light luminosity during the transition to energy efficient bulbs is analyzed jointly with the replacement decision to control for household self-selection in bulb-type choice. The results indicate that the EU ban on ILs accelerated the pace of transition to CFLs and LEDs, while storage of bulbs significantly dampened the speed of the transition. Households also appear responsive to new bulb attributes, as those with stated preferences for energy efficient, environmentally friendly, and durable lighting are more likely to replace ILs with CFLs and LEDs. Higher lighting needs generally spur IL replacement with CFLs or LEDs. However, electricity gains from new energy efficient lighting are mitigated by increases in bulb luminosity; with average increases in luminosity of 23% and 47% upon transitioning to CFLs and LEDs, respectively. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s52013&r=reg |
| By: | Wojciech Grabowski; Krzysztof Szczygielski; M. Teoman Pamukçu; Sinan Tandogan |
| Abstract: | Mediterranean and EU member countries consider enhancing innovation and R&D an important policy objective. In order to improve economic competitiveness and increase their citizens’ welfare, these countries have been formulating and implementing innovation policies. In recent years, the volume of resources allocated to such policies has considerably increased and the number of instruments used in this framework has widened. Nevertheless, a relatively limited number of studies have been conducted to assess the effectiveness of innovation policies in these countries and formulate proposals for those aspects of policies that are in contradiction with the aims.Creation-Date: 2012-09 |
| Keywords: | Private Innovation |
| URL: | http://d.repec.org/n?u=RePEc:sec:ebrief:0113&r=reg |
| By: | Winchester, Niven; McConnachie, Dominic; Wollersheim, Christoph; Waitz, Ian A. |
| Abstract: | The US Federal Aviation Administration (FAA) has a goal that one billion gallons of renewable jet fuel is consumed by the US aviation industry each year from 2018. We examine the economic and emissions impacts of this goal using renewable fuel produced from a Hydroprocessed Esters and Fatty Acids (HEFA) process from renewable oils. Our approach employs an economy-wide model of economic activity and energy systems and a detailed partial equilibrium model of the aviation industry. If soybean oil is used as a feedstock, we find that meeting the aviation biofuel goal in 2020 will require an implicit subsidy from airlines to biofuel producers of $2.69 per gallon of renewable jet fuel. If the aviation goal can be met by fuel from oilseed rotation crops grown on otherwise fallow land, the implicit subsidy is $0.35 per gallon of renewable jet fuel. As commercial aviation biofuel consumption represents less than two per cent of total fuel used by this industry, the goal has a small impact on the average price of jet fuel and carbon dioxide emissions. We also find that, under the pathways we examine, the cost per tonne of CO2 abated due aviation biofuels is between $50 and $400. |
| Keywords: | Aviation, Biofuels, Climate Change, Emissions abatement, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:155003&r=reg |