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on Regulation |
| By: | Tuukka Mäkitie (Centre for Technology, Innovation and Culture, University of Oslo, UiO.); Håkon E. Normann (Centre for Technology, Innovation and Culture, University of Oslo, UiO.); Taran M. Thune (Centre for Technology, Innovation and Culture, University of Oslo, UiO.); Jakoba Sraml Gonzalez (Centre for Technology, Innovation and Culture, University of Oslo, UiO.) |
| Abstract: | Reorientation of fossil fuel industries towards renewable energies, and the role of market changes underlying such processes, have not featured strongly in the study of sustainable energy transitions. We contribute to this important policy issue with a case study of diversification of Norwegian oil and gas industry in offshore wind power. We study how the engagement in diversification has changed during 2007-2016, and whether these changes correspond with developments in the industry’s task and institutional environments. By using news, statistical and survey data, our study reveals that despite continuous growth in offshore wind market, the industry engaged more in offshore wind during two market downturn periods in the oil and gas market, and less during an oil and gas boom period. Our results therefore draw attention to the importance of market changes in reorientation of fossil fuel industries towards renewable energies. We conclude by discussing the role of market changes in influencing reorientations towards renewable energies, and implications of results for policies which seek to support sustainable energy transitions. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20180524&r=reg |
| By: | Hlalefang Khobai (Department of Economics, Nelson Mandela University) |
| Abstract: | Knowledge of the direction of causality between electricity generation from renewables and economic growth is essential if energy policies which will support economic growth of the country are to be devised. This study explores the causal relationship between electricity generated from the renewables and economic growth in South Africa using carbon dioxide emissions, employment and capital as the additional variables. The study uses the Johansen co-integration model to detect the long run relationship between the variables and the Vector Error Correction Model (VECM) to determine the direction of causality. The findings from Johansen co-integration evidenced a long run relationship between electricity generated from renewables, economic growth, carbon dioxide emissions, employment and capital. The VECM revealed unidirectional causality running from electricity generated from renewables to economic growth. The findings indicate that electricity generation from renewables enhance economic growth. Therefore, the government should make appropriate efforts to select energy policies that do not negatively affect economic growth. |
| Keywords: | Electricity generation, carbon dioxide emissions, economic growth |
| JEL: | C32 D04 Q47 Q42 Q01 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:mnd:wpaper:1821&r=reg |
| By: | Drivas, Kyriakos; Rozakis, Stelios; Xesfingi, Sofia |
| Abstract: | We examine the largest house energy efficiency retrofit support program in Greece that ran during 2011-2015 and approximately fifty thousand households participated. We take advantage of an exogenous change that occurred while the program was running. This change substantially increased the subsidy rate for lower-income households. We find that this effective cost reduction increased the participation rate (extensive margin) and investment amount (intensive margin) of these lower-income households. |
| Keywords: | Energy efficiency retrofits, subsidy, exogenous change, participation rate, household investment. |
| JEL: | Q40 Q48 R2 |
| Date: | 2018–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86590&r=reg |
| By: | O'Sullivan, Meghan (Harvard University); Overland, Indra (Norwegian Institute of International Affairs); Sandalow, David (Columbia University) |
| Abstract: | For a century, the geopolitics of energy has been synonymous with the geopolitics of oil and gas. However, geopolitics and the global energy economy are both changing. The international order predominant since the end of World War II faces mounting challenges. At the same time, renewable energy is growing rapidly. Nevertheless, the geopolitics of renewable energy has received relatively little attention, especially when considering the far reaching consequences of a global shift to renewable energy. |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp17-027&r=reg |
| By: | Sinan Küfeoğlu; Michael Pollitt |
| Abstract: | Electric power distribution network charges have become a popular area of study for regulators, industry and academia. Increasing use of photovoltaics (PVs) and electric vehicles (EVs) by domestic customers has created concerns about the fairness of the current tariff structure. Proposing a tariff design, which will be cost reflective, transparent, sustainable, economically efficient is socially desirable. Wealth transfer through electricity distribution tariffs is a major concern for energy regulators. This paper aims to analyse the current distribution network tariffs faced by four main household customer groups in Great Britain - defined as those who own a PV and an EV, those with EV but no PV, those with PV but no EV and finally those with neither EV nor PV – under various uptake scenarios for EVs and PVs. We illustrate the impact on household tariffs for the most and least expensive British network operators, namely London Power Networks and Scottish Hydro Electric Power Distribution. The results show that, due to the current network charges calculation structure, as PV penetration increases, the distribution tariffs increase for all customers regardless of whether someone owns a PV or not. On the other hand, as EV penetration increases, the distribution tariffs decrease for all customer groups. Another key finding is that the distribution tariffs in Great Britain are EV dominated and the future EV and PV penetration projections indicate that the distribution tariffs will likely decrease for all customers in Great Britain. |
| Keywords: | distribution, network, tariff, PV, EV |
| JEL: | L94 |
| Date: | 2018–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1830&r=reg |
| By: | Steffen Hoernig; Francisco Monteiro |
| Abstract: | We consider internet service providers? incentives to zero-rate, i.e. do not count towards data allowances, the consumption of certain services, in the absence of payments from content providers. In a general model with various types of network effects, service substitutes or complements, monopoly and duopoly, we show that ISPs adopt zero-rating and that it increases consumer surplus and total welfare if network effects are strong enough. Capacity investment increases (decreases) with network effects if services are complements (substitutes). Under competition, the decision to zero-rate depends the residual network effect, which includes the impacts of spillovers and brand differentiation.JEL codes: D21, L51, L96 |
| Keywords: | zero-rating; network effects; net neutrality; capacity Investment |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unl:unlfep:wp627&r=reg |
| By: | Hesamzadeh, M.; Holmberg, P.; Sarfati, M. |
| Abstract: | Zonal pricing with countertrading (a market-based redispatch) gives arbitrage opportunities to the power producers located in the export-constrained nodes. They can increase their profit by increasing the output in the day-ahead market and decrease it in the real-time market (the inc-dec game). We show that this leads to large inefficiencies in a standard zonal market. We also show how the inefficiencies can be significantly mitigated by changing the design of the real-time market. We consider a two-stage game with oligopoly producers, wind-power shocks and real-time shocks. The game is formulated as a two-stage stochastic equilibrium problem with equilibrium constraints (EPEC), which we recast into a two-stage stochastic Mixed-Integer Bilinear Program (MIBLP). We present numerical results for a six-node and the IEEE 24-node system. |
| Keywords: | Two-stage game, Zonal pricing, Wholesale electricity market, Bilinear programming |
| JEL: | C61 C63 C72 D43 L13 L94 |
| Date: | 2018–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1829&r=reg |
| By: | Tomas Balint (Université Paris 1 Panthéon-Sorbonne); Francesco Lamperti (Université Panthéon-Sorbonne - Paris 1 (UP1)); Antoine Mandel (Ecole d'Économie de Paris - Paris School of Economics); Mauro Napoletano (Observatoire français des conjonctures économiques); Andrea Roventini (Laboratory of Economics and Management (LEM)); Sandro Sapio (Universita degli studi di Napoli "Parthenope" [Napoli]) |
| Abstract: | Climate change is one of the most daunting challenges human kind has ever faced. In the paper, we provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climatefriendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks. |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1nlv566svi86iqtetenms15tc4&r=reg |
| By: | Nano Barahona; Francisco Gallego; Juan-Pablo Montero |
| Abstract: | Local air pollution has led authorities in many cities around the world to impose limits on car use, increasingly by means of driving restrictions or license-plate bans. With some exceptions, these restrictions tend to be poorly designed creating incentives for drivers to buy additional, more polluting cars. We study vintage-specific restrictions that place heavy limits on older, polluting vehicles and none on newer, cleaner ones. A novel model of the car market and evidence from Santiago’s 1992 program, the earliest attempt to use vintage-specific restrictions, are used to show that these restrictions can be welfare enhancing by accelerating fleet turnover toward cleaner cars. These policies compare well to alternative instruments such as scrappage subsidies and pollution-based registration fees. |
| Keywords: | Driving restrictions, Local Pollution, Car Turnover |
| JEL: | R41 Q53 Q58 |
| Date: | 2018–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:col:000518:016259&r=reg |
| By: | Engström, Emma (Folksam Research); Algers, Staffan (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Beser Hugosson, Muriel (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | Dedicated to show climate leadership, Sweden has committed to cut 70% of greenhouse gas emissions in the domestic transport sector by 2030 as compared to levels in 2010 (except flights). The aim of this study was to quantify car type choice among private buyers and individuals with cars provided as a fringe benefit, and to investigate the impacts of retrospective policy scenarios using Sweden as a case study. Models were developed using revealed preferences data relating to car attributes and buyer socioeconomics. The company car type choice model reflected both company policy restrictions and employee preferences. The results indicated that range and safety were crucial factors for the widespread introduction of electric cars and plug-in hybrids. Company car owners were more inclined to choose cars with climate friendly fuels than private buyers. Average CO2 emissions per car were however similar in the two groups, which might relate to a stronger preference for heavier and larger cars among company car holders, in combination with the weights-based ‘Clean car’ definition in Sweden. A ‘Clean car’ restriction was company policy for 7.5% of employees, among whom the share of diesel cars was 88%. Policy scenario modeling results further indicated that the impact of recent climate and transport policies has been small: the most notable effect was a policy of reduced fringe benefits taxation on alternative fuels, worth up to €1,100 annually, which resulted in 0.7 % lower average CO2/km per car. For private buyers, a ‘Super Clean Car’ premium, worth ca € 2,000 – € 4,000, had a 0.4 % effect on the average emissions per car, according to models. This effect was twice as high as that for a five year tax-exemption for ‘Clean cars’, worth ca €200 annually for private buyers. Apparently, in order to substantially change the fleet of new cars in Sweden there is a need for tougher transport policies related to climate change mitigation. |
| Keywords: | Public transport; bus; demand model; fares; frequencies; supply; optimization; urban; welfare |
| JEL: | R41 R42 R48 |
| Date: | 2018–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_009&r=reg |
| By: | Alex Chernoff; Andrea Craig |
| Abstract: | In this paper, we estimate the effect on housing prices of the expansion of the Vancouver SkyTrain rapid transit network during the period 2001–11. We extend the canonical residential sorting equilibrium framework to include commuting time in the household utility function. We estimate household preferences in the sorting model using confidential micro data and geographic information systems (GIS) data on the SkyTrain network. Using these preference estimates and observed data for 2001, we simulate the equilibrium effects of expanding the SkyTrain. In our counterfactual analysis, the SkyTrain expansion increases housing prices not only in neighborhoods where the expansion occurred, but also in those with access to pre-existing segments of the network. We show how these network housing price effects depend on household commuting patterns, and discuss the implications of our results for targeted taxation policies designed to capture the housing price appreciation stemming from a public transit investment. |
| Keywords: | Asset Pricing, Economic models, Housing |
| JEL: | H41 R21 R41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:18-18&r=reg |
| By: | De Donder, Philippe; Soteri, Soterios |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:32659&r=reg |
| By: | Harbrecht, Alexander; McKenna, Russell; Fischer, David; Fichtner, Wolf |
| Abstract: | This paper presents a stochastic bottom-up model to assess electric vehicles' (EV) impact on load profiles at different parking locations as well as their load management potential assuming different charging strategies. The central innovation lies in the consideration of socio-economic, technical and spatial factors, all of which influence charging behavior and location. Based on a detailed statistical analysis of a large dataset on German mobility, the most statistically significant influencing factors on residential charging behavior could be identified. Whilst household type and economic status are the most important factors for the number of cars per household, the driver's occupation has the strongest influence on the first departure time and parking time whilst at work. An inhomogeneous Markov-chain is used to sample a sequence of destinations of each car trip, depending (amongst other factors) on the occupation of the driver, the weekday and the time of the day. Probability distributions for the driven kilometres, driving durations and parking durations are used to derive times and electricity demand. The probability distributions are retrieved from a national mobility dataset of 70,000 car trips and filtered for a set of socio-economic and demographic factors. Individual charging behaviour is included in the model using a logistic function accounting for the sensitivity of the driver towards (low) battery SOC. The presented model is validated with this mobility dataset and shown to have a deviation in key household mobility characteristics of just a few percentage points. The model is then employed to analyse the impact of uncontrolled charging of BEV on the residential load profile. It is found that the absolute load peaks will increase by up to factor 8.5 depending on the loading infrastructure, the load in high load hours will increase by approx. a factor of 3 and annual electricity demand will approximately double. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:29&r=reg |