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on Regulation |
| By: | Makram El-Shagi; Claus Michelsen; Sebastian Rosenschon |
| Abstract: | The impact of environmental regulation on technology diffusion and innovations is studied using a unique data set of German residential buildings. We analyze how energy efficiency regulations, in terms of minimum standards, affects energy-use in newly constructed buildings and how it induces innovation in the residential-building industry. The data used consists of a large sample of German apartment houses built between 1950 and 2005. Based on this information, we determine their real energy requirements from energy performance certificates and energy billing information. We develop a new measure for regulation intensity and apply a panel-error-correction regression model to energy requirements of low and high quality housing. Our findings suggest that regulation significantly impacts technology adoption in low quality housing. This, in turn, induces improvements in the high quality segment where innovators respond to market signals. |
| Keywords: | Environmental regulation, innovation, technology diffusion, residential real estate, energy efficiency |
| JEL: | D2 Q4 R5 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1371&r=reg |
| By: | Renner, Marie |
| Abstract: | As policy makers assess strategies to reduce greenh ouse gas emissions (GHG), they need to know the available technical options and the conditions unde r which these options become economically attractive. Carbon Capture and Storage (CCS) techniques are widely considered as a key option for climate change mitigation. But integrating CCS tech niques in a commercial scale power plant adds significant costs to the capital expenditure at the start of the project and to the operating expenditure throughout its lifetime. Its additional costs can b e offset by a sufficient CO2 price but most markets have failed to put a high enough price on CO2 emissions: currently, the weak Emission Unit Allowances price threatens CCS demonstration and deployment in the European Union (EU). A different dynamic is rising in China: a carbon regulation is setting up and CCS techniques seem to encounter a rising interest as suggest their inclusion in the 12th Five-Year Plan and the rising number of CCS projects identifies/planned. However, there are very few in-depth techno-economic studies on CCS costs. This study investigates two related questions: how much is the extra-cost of a CCS plant in the EU in comparison with China? And then, what is the CO2 price beyond which CCS power plants become more profitable/economically attractive than classic power plants, in the EU and in China? To answer these questions, I first review, analyze and compare publ ic studies on CCS techniques in order to draw an objective techno-economic panorama in the EU and China. Then, I develop a net present value (NPV) model for coal and gas plants, with and without CCS, in order to assess the CO2 price beyond which CCS plants become the most profitable power plant type. This CO2 value is called CO2 switching price. I also run some sensitivity analyses to assess the impact of different parameter variations on this CO2 switching price. I show that CCS power plants become the most profita ble baseload power plant type with a CO2 price higher than 115 €/t in the EU (offshore transport and storage costs) against 33 €/t (onshore transport and storage costs) or 47 €/t (offshore tr ansport and storage costs) in China. When the CO2 price is high enough, CCS gas plants are the most profitable power plant type in the EU whereas these are CCS coal plants in China. Through this study, I advise investors on the optimal power plant type choice depending on the CO2 market price, and suggest an optimal timing for CCS investment in the EU and China. |
| Keywords: | Politique de l'environnement; Fiscalité écologique; Taxe sur le dioxyde de carbone; Captage et stockage du dioxyde de carbone; Gaz à effet de serre; Réduction; |
| JEL: | Q58 Q56 Q53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/12983&r=reg |
| By: | Florent Le Strat; Elaine Pelourdeau; Benoît Peluchon; Jean-Yves Caneill; Yasmine Arsalane; Kimon Keramidas |
| Abstract: | In 2008, Europe chose to commit to multiple targets with the Climate Energy Package (CEP). This package of European texts (mainly Directives & Decisions) set targets for different policies, all for the 2020 time horizon. In March 2013, European Commission issued the Green Paper on “A 2030 Framework for climate and energy policies” initiating the discussions about the extension of the CEP to 2030, and its possible targets. EC explicitly stated that the different policy instruments have to be coherent because they “interact with one another”. The present study was performed in 2013 by EDF R&D and ENERDATA, in order to quantify the effects of overlapping policies with POLES model, and compare the costs generated by those interactions in the framework of CEP and Energy Roadmap. The two binding targets (CO2 and RES) were considered in this approach. In particular the results are used to identify the impact of the different targets on European electricity retail prices considering different financing options. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cec:wpaper:1404&r=reg |
| By: | Gabriel M. Ahlfeldt; Kristoffer Moeller; Nicolai Wendland |
| Abstract: | To analyze the mutually dependent relationship between local economic performance and the demand for and supply of transport services, we employ the structural panel VAR method that is popular in the macroeconomic literature, but which has not previously been applied to the modeling of within-city dynamics of transportation. We focus on a within-city panel of Berlin, Germany, during the heyday of the construction of its dense public transit network (1880-1914). Our results suggest that economic outcomes and supply of transport infrastructure mutually determine each other. Both transport demand and supply seem to be driven more by firms than by residents. |
| Keywords: | Transport, land use, Berlin, history, panel vector, autoregression |
| JEL: | R12 R14 R41 N73 N74 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0158&r=reg |
| By: | Micaela Ponce; Anne Neumann |
| Abstract: | In this paper we investigate natural gas producer's reactions to changes in market prices. We estimate price elasticities of aggregated supply in the most competitive market for natural gas: the United States. Using monthly time series data form 1987 to 2012 our analysis is based on an Autoregressive Distributed Lag (ARDL) Bound Cointegration approach to obtain short and long-run elasticities of natural gas supply. Results suggest that natural gas producers in a competitive market are not able to react to prices in the very short-run but respond inelastic in the long-run. These findings are not only of great value for policy makers but also for gas market modelers. |
| Keywords: | Elasticity of supply, natural gas, ARDL, ECM, competitive markets |
| JEL: | L95 Q41 C22 C32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1372&r=reg |