Pub Date : 2026-03-01Epub Date: 2026-02-25DOI: 10.1016/j.esr.2025.102033
Ummara Razi , Aaron Yaw Ahali , Yuriy Bilan
In the era of escalating environmental challenges, such as climate change and resource depletion, efficient resource management is essential for fostering sustainable economic and ecological development. For newly industrialised economies (NICs), it is imperative to identify the factors influencing efficient resource management. Therefore, this aims to evaluate the effect of energy poverty, digital economy, and eco-innovation on efficient resource management (ERM) for NIC countries from 2000 to 2022, addressing a critical gap in the ERM literature. By confirming cross-sectional dependence, slope homogeneity, and the first order of integration, the study identifies cointegration among these variables. The study employed the “Method of Moments Quantile Regression (MMQR)” approach to explore the distributional heterogeneity of established correlations across different quantiles of efficient resource management. The MMQR results highlight that energy poverty, industrial efficiency, digital economy, and eco-innovation enhance ERM in newly industrialised countries. In contrast, the economic growth abates the ERM. The study's findings are crucial for formulating effective policies to reduce energy poverty and promote efficient resource management to retain sustainable development and natural resource consumption.
{"title":"Decoding the Nexus: Energy poverty, digital economy, and efficient resource management","authors":"Ummara Razi , Aaron Yaw Ahali , Yuriy Bilan","doi":"10.1016/j.esr.2025.102033","DOIUrl":"10.1016/j.esr.2025.102033","url":null,"abstract":"<div><div>In the era of escalating environmental challenges, such as climate change and resource depletion, efficient resource management is essential for fostering sustainable economic and ecological development. For newly industrialised economies (NICs), it is imperative to identify the factors influencing efficient resource management. Therefore, this aims to evaluate the effect of energy poverty, digital economy, and eco-innovation on efficient resource management (ERM) for NIC countries from 2000 to 2022, addressing a critical gap in the ERM literature. By confirming cross-sectional dependence, slope homogeneity, and the first order of integration, the study identifies cointegration among these variables. The study employed the “Method of Moments Quantile Regression (MMQR)” approach to explore the distributional heterogeneity of established correlations across different quantiles of efficient resource management. The MMQR results highlight that energy poverty, industrial efficiency, digital economy, and eco-innovation enhance ERM in newly industrialised countries. In contrast, the economic growth abates the ERM. The study's findings are crucial for formulating effective policies to reduce energy poverty and promote efficient resource management to retain sustainable development and natural resource consumption.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102033"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-03-11DOI: 10.1016/j.esr.2026.102185
Manish Gaebelein-Khanra , Marian Klobasa , Parag Patil
Decarbonising hard-to-abate industries is necessary for climate goals, yet investment choices are hindered by deep uncertainty. This study develops an ambiguity-aware investment evaluation framework that accounts for parameter uncertainty, probability ambiguity, and downside risk. Scenario-level net present values are computed under alternative electricity and hydrogen system narratives and evaluated using a loss law–invariant model-set approach. Probability ambiguity is represented by an ambiguity set of admissible scenario-probability vectors defined through per-scenario bounds implied by multiple probability views, and performance is assessed using worst-case mean and worst-case expected shortfall over this set. The framework is applied to a primary steel investment in Germany, comparing Natural Gas–DRI–EAF, imported-hydrogen DRI–EAF, and on-site electrolysis based DRI–EAF configurations. Electricity procurement prices come from an agent based market simulation for 2035, while fuel and policy inputs vary across 18 discrete scenarios. Natural Gas–DRI–EAF is most robust with a worst-case mean NPV of €10.83 bn and a 4.7% reduction from the Base expected value. Electrolyser–DRI–EAF with lower CAPEX and tariff relief approaches this benchmark with a worst-case mean NPV of €10.53 bn, and tariff relief increases worst-case mean performance by about €4.9 bn relative to no discounts. Imported-hydrogen DRI–EAF is ambiguity-fragile, with Base expected NPV of €7.82 bn falling to €4.57 bn under worst-case mean. For industrial decision makers, the framework indicates whether a pathway remains acceptable under pessimistic probability weightings and tail protection, and it identifies which parameters drive downside exposure. For policy and regulatory analysts, the remaining robustness gap even under tariff relief indicates where additional risk-sharing or cost-relief instruments are needed to improve performance in the adverse states that determine worst-case and tail outcomes. A sensitivity analysis with non-stationary second-decade price regimes confirms that the main conclusions do not rely on stationary annual cash flows.
{"title":"A framework for decision making under deep uncertainty in hard-to-abate industries: An application case for investment in a German steel plant","authors":"Manish Gaebelein-Khanra , Marian Klobasa , Parag Patil","doi":"10.1016/j.esr.2026.102185","DOIUrl":"10.1016/j.esr.2026.102185","url":null,"abstract":"<div><div>Decarbonising hard-to-abate industries is necessary for climate goals, yet investment choices are hindered by deep uncertainty. This study develops an ambiguity-aware investment evaluation framework that accounts for parameter uncertainty, probability ambiguity, and downside risk. Scenario-level net present values are computed under alternative electricity and hydrogen system narratives and evaluated using a loss law–invariant model-set approach. Probability ambiguity is represented by an ambiguity set of admissible scenario-probability vectors defined through per-scenario bounds implied by multiple probability views, and performance is assessed using worst-case mean and worst-case expected shortfall over this set. The framework is applied to a primary steel investment in Germany, comparing Natural Gas–DRI–EAF, imported-hydrogen DRI–EAF, and on-site electrolysis based DRI–EAF configurations. Electricity procurement prices come from an agent based market simulation for 2035, while fuel and policy inputs vary across 18 discrete scenarios. Natural Gas–DRI–EAF is most robust with a worst-case mean NPV of €10.83 bn and a 4.7% reduction from the Base expected value. Electrolyser–DRI–EAF with lower CAPEX and tariff relief approaches this benchmark with a worst-case mean NPV of €10.53 bn, and tariff relief increases worst-case mean performance by about €4.9 bn relative to no discounts. Imported-hydrogen DRI–EAF is ambiguity-fragile, with Base expected NPV of €7.82 bn falling to €4.57 bn under worst-case mean. For industrial decision makers, the framework indicates whether a pathway remains acceptable under pessimistic probability weightings and tail protection, and it identifies which parameters drive downside exposure. For policy and regulatory analysts, the remaining robustness gap even under tariff relief indicates where additional risk-sharing or cost-relief instruments are needed to improve performance in the adverse states that determine worst-case and tail outcomes. A sensitivity analysis with non-stationary second-decade price regimes confirms that the main conclusions do not rely on stationary annual cash flows.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102185"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399251","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-02DOI: 10.1016/j.esr.2026.102081
Walid Matar
Saudi Arabia is currently implementing fuel price reforms. The reforms are being executed in phases, where the ultimate goal is to have fuel prices approach their market equivalent values. Using the KAPSARC Energy Model, this analysis shows that such reforms would be more costly for Saudi Arabia without the availability and cost reductions of renewable electricity technologies. Solar photovoltaic technologies, in particular, have made enacting fuel price reforms more tenable. As the use of oil products for power generation and industrial processes cease due to price reforms, renewable technologies mitigate the scarcity of natural gas. For instance, lower natural gas use by the electricity sector would result in a market-clearing (meaning, demand equals supply) natural gas price of 3–4 $/mmBtu in 2040 with the deployment of renewable technologies. The projected rise in Saudi natural gas supply and these prices are sufficient to accommodate nearly 50 GW of renewable electricity capacity. Comparatively, this natural gas price would be above 7 $/mmBtu without renewable electricity. The advent of inexpensive renewable electricity lowers fuel costs for all natural gas users in industry and utilities. Moreover, the marginal electricity generation cost with renewable electricity drops by 30 %, on average. While renewable electricity reduces energy system costs, the magnitude of these benefits is highly dependent on the exogenously-defined domestic gas availability and the global LNG price. These findings suggest aligning fuel price regulations with renewable electricity deployment to minimize cost shocks and reduce oil use in industrial and utility sectors.
{"title":"Inexpensive renewable electricity enables Saudi Arabia's fuel price reforms","authors":"Walid Matar","doi":"10.1016/j.esr.2026.102081","DOIUrl":"10.1016/j.esr.2026.102081","url":null,"abstract":"<div><div>Saudi Arabia is currently implementing fuel price reforms. The reforms are being executed in phases, where the ultimate goal is to have fuel prices approach their market equivalent values. Using the KAPSARC Energy Model, this analysis shows that such reforms would be more costly for Saudi Arabia without the availability and cost reductions of renewable electricity technologies. Solar photovoltaic technologies, in particular, have made enacting fuel price reforms more tenable. As the use of oil products for power generation and industrial processes cease due to price reforms, renewable technologies mitigate the scarcity of natural gas. For instance, lower natural gas use by the electricity sector would result in a market-clearing (meaning, demand equals supply) natural gas price of 3–4 $/mmBtu in 2040 with the deployment of renewable technologies. The projected rise in Saudi natural gas supply and these prices are sufficient to accommodate nearly 50 GW of renewable electricity capacity. Comparatively, this natural gas price would be above 7 $/mmBtu without renewable electricity. The advent of inexpensive renewable electricity lowers fuel costs for all natural gas users in industry and utilities. Moreover, the marginal electricity generation cost with renewable electricity drops by 30 %, on average. While renewable electricity reduces energy system costs, the magnitude of these benefits is highly dependent on the exogenously-defined domestic gas availability and the global LNG price. These findings suggest aligning fuel price regulations with renewable electricity deployment to minimize cost shocks and reduce oil use in industrial and utility sectors.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102081"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399452","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-03-04DOI: 10.1016/j.esr.2026.102152
Andreas Markoulakis, Eleanya Nduka
Using UK household data, we examine empirically how different facets of energy security, energy vulnerability, affordability, reliability and imports dependency impact the support for three different energy sources: renewables, nuclear and shale gas extraction. We find that each facet can have a differential impact in the probability of support for each energy source and in general, as energy security concerns decline, households are becoming less likely to support each energy source, however, the effects are larger for nuclear and shale gas compared to renewables. Our findings are robust to potential endogeneity concerns which are addressed by using instrumental variables. The above results may serve as valuable evidence for policy appraisal, providing policymakers with insights into the varying impacts of different aspects of energy security when formulating future energy policies aimed at achieving net-zero targets.
{"title":"How the facets of energy security impact the support for energy sources: Evidence from UK households","authors":"Andreas Markoulakis, Eleanya Nduka","doi":"10.1016/j.esr.2026.102152","DOIUrl":"10.1016/j.esr.2026.102152","url":null,"abstract":"<div><div>Using UK household data, we examine empirically how different facets of energy security, energy vulnerability, affordability, reliability and imports dependency impact the support for three different energy sources: renewables, nuclear and shale gas extraction. We find that each facet can have a differential impact in the probability of support for each energy source and in general, as energy security concerns decline, households are becoming less likely to support each energy source, however, the effects are larger for nuclear and shale gas compared to renewables. Our findings are robust to potential endogeneity concerns which are addressed by using instrumental variables. The above results may serve as valuable evidence for policy appraisal, providing policymakers with insights into the varying impacts of different aspects of energy security when formulating future energy policies aimed at achieving net-zero targets.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102152"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-28DOI: 10.1016/j.esr.2026.102086
Daoming Dai , Lingyu Huang , Lianbiao Cui
The global transition to renewable energy (RE) hinges on the design of effective and economically efficient policy portfolios. This study develops a Stackelberg game-theoretic model of a power supply chain—comprising a generation company, a retailer, and consumers—to dissect the intricate relationships between subsidy policies, market mechanisms, and consumer behavioral characteristics. We rigorously evaluate three policy scenarios: No Subsidy (N), Subsidized Consumers (C), and Subsidized Generation Companies (G). The model explicitly quantifies subsidy perception efficiency gap between consumers and producers, and it embeds this analysis within an integrated framework combining Renewable Energy Certificate (REC) trading and Renewable Portfolio Standards (RPS). Our findings reveal that the effectiveness of a subsidy is determined not by its target (consumer vs. generation company) but by the recipient's perception efficiency. Subsidies enhance social welfare only when this efficiency surpasses a critical threshold. Furthermore, consumer environmental preferences emerge as a consistently positive driver of green power adoption and social welfare across all scenarios. We also identify a welfare-maximizing threshold for REC prices, whereas overly stringent RPS mandates are shown to be detrimental. These insights provide a robust theoretical foundation for designing coordinated, consumer-aware RE policies that can accelerate the energy transition while optimizing social welfare.
{"title":"Consumer vs producer subsidies for renewable energy: The role of perception efficiency and policy portfolio in a power supply chain","authors":"Daoming Dai , Lingyu Huang , Lianbiao Cui","doi":"10.1016/j.esr.2026.102086","DOIUrl":"10.1016/j.esr.2026.102086","url":null,"abstract":"<div><div>The global transition to renewable energy (RE) hinges on the design of effective and economically efficient policy portfolios. This study develops a Stackelberg game-theoretic model of a power supply chain—comprising a generation company, a retailer, and consumers—to dissect the intricate relationships between subsidy policies, market mechanisms, and consumer behavioral characteristics. We rigorously evaluate three policy scenarios: No Subsidy (N), Subsidized Consumers (C), and Subsidized Generation Companies (G). The model explicitly quantifies subsidy perception efficiency gap between consumers and producers, and it embeds this analysis within an integrated framework combining Renewable Energy Certificate (REC) trading and Renewable Portfolio Standards (RPS). Our findings reveal that the effectiveness of a subsidy is determined not by its target (consumer vs. generation company) but by the recipient's perception efficiency. Subsidies enhance social welfare only when this efficiency surpasses a critical threshold. Furthermore, consumer environmental preferences emerge as a consistently positive driver of green power adoption and social welfare across all scenarios. We also identify a welfare-maximizing threshold for REC prices, whereas overly stringent RPS mandates are shown to be detrimental. These insights provide a robust theoretical foundation for designing coordinated, consumer-aware RE policies that can accelerate the energy transition while optimizing social welfare.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102086"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146076003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-28DOI: 10.1016/j.esr.2026.102087
Hongti Song , Wei Chen
Data governance is increasingly recognized as a critical institutional instrument for facilitating energy system transformation, yet its role in reshaping the structural characteristics of urban renewable energy transitions remains insufficiently understood. This study exploits China’s National Big Data Pilot (NBDP) policy as a quasi-natural experiment and employs panel data from 291 Chinese cities spanning 2008–2022 to investigate the impact of data governance on urban renewable energy transitions. Employing a double machine learning (DML) framework, we identify the causal effects of the NBDP on multidimensional transition outcomes. The results show that the policy significantly accelerates urban renewable energy transition, with the strongest effects observed in transition breadth, followed by depth and level. Mechanism analysis reveals that renewable energy technological innovation serves as a key mediating channel, promoting substitution deepening while partially constraining short-term diversification due to path dependence. In contrast, heightened government attention to green development exerts a negative indirect effect on transition level and depth and does not mediate diversification outcomes. Further analysis indicates that the policy effects are significantly amplified in cities with more advanced digital infrastructure and higher energy demand intensity. By introducing a dual-dimensional “depth–breadth” framework, this study extends existing measures of energy transition and provides robust causal evidence on how digital governance reshapes the structural evolution of urban energy systems.
{"title":"Data-driven smart governance for dual-dimensional optimization of urban renewable energy systems: Enhancing transition depth and breadth","authors":"Hongti Song , Wei Chen","doi":"10.1016/j.esr.2026.102087","DOIUrl":"10.1016/j.esr.2026.102087","url":null,"abstract":"<div><div>Data governance is increasingly recognized as a critical institutional instrument for facilitating energy system transformation, yet its role in reshaping the structural characteristics of urban renewable energy transitions remains insufficiently understood. This study exploits China’s National Big Data Pilot (NBDP) policy as a quasi-natural experiment and employs panel data from 291 Chinese cities spanning 2008–2022 to investigate the impact of data governance on urban renewable energy transitions. Employing a double machine learning (DML) framework, we identify the causal effects of the NBDP on multidimensional transition outcomes. The results show that the policy significantly accelerates urban renewable energy transition, with the strongest effects observed in transition breadth, followed by depth and level. Mechanism analysis reveals that renewable energy technological innovation serves as a key mediating channel, promoting substitution deepening while partially constraining short-term diversification due to path dependence. In contrast, heightened government attention to green development exerts a negative indirect effect on transition level and depth and does not mediate diversification outcomes. Further analysis indicates that the policy effects are significantly amplified in cities with more advanced digital infrastructure and higher energy demand intensity. By introducing a dual-dimensional “depth–breadth” framework, this study extends existing measures of energy transition and provides robust causal evidence on how digital governance reshapes the structural evolution of urban energy systems.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102087"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146075998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-24DOI: 10.1016/j.esr.2026.102064
Siddharth Kulkarni, Keru Duan, Gu Pang, Ahmad Bhatti
This paper aims to present a timely review of recent developments and perspectives on Lithium-Ion Battery (LIB) technologies regarding sustainable development, electrochemical efficiency, and machine learning models for forecasting the availability of services such as vehicle-to-home. The paper argues that the world is increasingly demanding sustainable, reliable energy sources because current sources are unstable and fossil-fuel-dependent. Research shows that 85 % or more of the world's energy comes from non-renewable sources, including natural gas, coal, and oil, underscoring the world's persistent reliance on fossil fuels. This study conducts a literature review on recent advances in sustainable LIB development, emphasising emerging chemical technologies, novel energy materials, and innovations in battery manufacturing. Findings indicate a growing demand for LIBs driven by environmental sustainability goals. However, LIB production was constrained by resource scarcity and rising manufacturing costs. To address these issues, researchers are exploring next-generation chemistries, improved material design, and enhanced recycling processes. Additionally, advancements in machine learning and battery-material characterisation are essential to meet evolving consumer demands, including for vehicle-to-home applications.
{"title":"Recent advancements and perspectives in lithium-ion battery technology","authors":"Siddharth Kulkarni, Keru Duan, Gu Pang, Ahmad Bhatti","doi":"10.1016/j.esr.2026.102064","DOIUrl":"10.1016/j.esr.2026.102064","url":null,"abstract":"<div><div>This paper aims to present a timely review of recent developments and perspectives on Lithium-Ion Battery (LIB) technologies regarding sustainable development, electrochemical efficiency, and machine learning models for forecasting the availability of services such as vehicle-to-home. The paper argues that the world is increasingly demanding sustainable, reliable energy sources because current sources are unstable and fossil-fuel-dependent. Research shows that 85 % or more of the world's energy comes from non-renewable sources, including natural gas, coal, and oil, underscoring the world's persistent reliance on fossil fuels. This study conducts a literature review on recent advances in sustainable LIB development, emphasising emerging chemical technologies, novel energy materials, and innovations in battery manufacturing. Findings indicate a growing demand for LIBs driven by environmental sustainability goals. However, LIB production was constrained by resource scarcity and rising manufacturing costs. To address these issues, researchers are exploring next-generation chemistries, improved material design, and enhanced recycling processes. Additionally, advancements in machine learning and battery-material characterisation are essential to meet evolving consumer demands, including for vehicle-to-home applications.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102064"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146026257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-14DOI: 10.1016/j.esr.2026.102138
Carlos A.A. Fernandez Vazquez , Francisco Flores , Ray A. Rojas Candia , Julio Pascual , Felipe Feijoo , Sylvain Quoilin
The sustainable transition of energy systems heavily relies on models that provide diverse scopes and applications. This study explores how two modeling approaches can work in tandem and complement each other to provide a more robust framework for analyzing the development of energy systems at the country level. Specifically, we consider an Integrated Assessment Model (GCAM), to evaluate alternative transition scenarios in a country from a multi-sectoral level, and an Energy System Model (PyPSA-Earth), to optimize the expansion of the power system with high geographical and temporal resolution. In this study, we present tailored versions of these tools to analyze Bolivia as the case study, GCAM-Bolivia and PyPSA-BO. Our method employs a unidirectional soft-linking process, using carbon budgets and projected energy demands as the connecting parameters between models. In this sense, GCAM-Bolivia is used to derive six alternative development scenarios based on emission reduction targets until 2050, while PyPSA-BO is used to optimize the electric system expansion, including generation, storage, and transmission capacities. Results show that, regardless of the scenario, solar PV is the dominant technology for capacity expansion in the future and that the growth of the electric sector appears to have a non-linear relation with the emission reduction targets for the energy sector, where only reduction targets above 40% trigger an intensive electrification process. In these cases, a significant expansion of storage and transmission capacities distributed across the country is required to provide flexibility in the system.
{"title":"Implications of defining exogenous variables in Energy System Modeling with Integrated Assessment Models for transition planning","authors":"Carlos A.A. Fernandez Vazquez , Francisco Flores , Ray A. Rojas Candia , Julio Pascual , Felipe Feijoo , Sylvain Quoilin","doi":"10.1016/j.esr.2026.102138","DOIUrl":"10.1016/j.esr.2026.102138","url":null,"abstract":"<div><div>The sustainable transition of energy systems heavily relies on models that provide diverse scopes and applications. This study explores how two modeling approaches can work in tandem and complement each other to provide a more robust framework for analyzing the development of energy systems at the country level. Specifically, we consider an Integrated Assessment Model (GCAM), to evaluate alternative transition scenarios in a country from a multi-sectoral level, and an Energy System Model (PyPSA-Earth), to optimize the expansion of the power system with high geographical and temporal resolution. In this study, we present tailored versions of these tools to analyze Bolivia as the case study, GCAM-Bolivia and PyPSA-BO. Our method employs a unidirectional soft-linking process, using carbon budgets and projected energy demands as the connecting parameters between models. In this sense, GCAM-Bolivia is used to derive six alternative development scenarios based on emission reduction targets until 2050, while PyPSA-BO is used to optimize the electric system expansion, including generation, storage, and transmission capacities. Results show that, regardless of the scenario, solar PV is the dominant technology for capacity expansion in the future and that the growth of the electric sector appears to have a non-linear relation with the emission reduction targets for the energy sector, where only reduction targets above 40% trigger an intensive electrification process. In these cases, a significant expansion of storage and transmission capacities distributed across the country is required to provide flexibility in the system.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102138"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399016","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-19DOI: 10.1016/j.esr.2026.102116
Thomas Baldauf, Hans-Christian Gils, Jens Schmugge, Patrick Jochem
Macroeconomic models of the energy transition depend crucially on elasticity of substitution (EOS) parameters between dirty and clean energy inputs, which are, however, hard to calibrate for future energy systems. Thus, in this paper, we seek determining these values based on a numerical bottom-up optimization model with European scope and a large number of flexibility options. Further, we study the role of flexibility technologies in alternative forms of a macroeconomic production function, considering the EOS as an endogenous function of the renewable energy share and of flexibility installations. Our research therefore provides parameter values for models with endogenous EOS. Nevertheless, when lump-summing flexible inputs into clean inputs, a simple constant elasticity of substitution (CES) function describes the data comparatively well, such that we cannot reject the validity of production functions with exogenous EOS for macroeconomic transition models.
{"title":"Model-based calibration of the elasticity of substitution in energy under high flexibility","authors":"Thomas Baldauf, Hans-Christian Gils, Jens Schmugge, Patrick Jochem","doi":"10.1016/j.esr.2026.102116","DOIUrl":"10.1016/j.esr.2026.102116","url":null,"abstract":"<div><div>Macroeconomic models of the energy transition depend crucially on elasticity of substitution (EOS) parameters between <em>dirty</em> and <em>clean</em> energy inputs, which are, however, hard to calibrate for future energy systems. Thus, in this paper, we seek determining these values based on a numerical bottom-up optimization model with European scope and a large number of flexibility options. Further, we study the role of flexibility technologies in alternative forms of a macroeconomic production function, considering the EOS as an endogenous function of the renewable energy share and of flexibility installations. Our research therefore provides parameter values for models with endogenous EOS. Nevertheless, when lump-summing flexible inputs into clean inputs, a simple constant elasticity of substitution (CES) function describes the data comparatively well, such that we cannot reject the validity of production functions with exogenous EOS for macroeconomic transition models.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102116"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-14DOI: 10.1016/j.esr.2026.102141
Yixin Sun , Jianhui Cong , Zhou Zhou , Limin Han
Poverty eradication and climate mitigation are two central challenges facing developing countries in the process of rural development. Targeted poverty alleviation policy (TPAP) is aimed at ending extreme poverty and may deliver carbon emission reductions beyond its primary policy objective. Hence, we treat China's TPAP as a quasi-natural experiment and employ a Difference-in-Differences (DID) framework to examine the impact of poverty alleviation policies on carbon emissions in poverty-stricken counties. We further examine heterogeneity in the effects of poverty alleviation policies across income levels and targeted renewable energy policies. The empirical findings reveal that the TPAP significantly reduced carbon emissions in poverty-stricken counties relative to the control group, with an average reduction of 0.36%. However, some industry-specific policies, such as the Photovoltaic Poverty Alleviation program, led to an increase in carbon emissions in pilot counties, with a net effect of 0.102. Mechanism analysis demonstrates that industrial poverty alleviation promotes the development of non-agricultural industries. Additional heterogeneity analysis reveals that counties with lower baseline income experienced larger emission reductions, consistent with greater scope for energy structure adjustment and marginal substitution away from traditional energy sources. Overall, this study highlights the heterogeneous climate impacts of poverty alleviation policies and provides evidence-based insights for designing poverty reduction strategies.
{"title":"Two birds with one stone: Do poverty alleviation policies reduce carbon emissions in poverty-stricken counties?","authors":"Yixin Sun , Jianhui Cong , Zhou Zhou , Limin Han","doi":"10.1016/j.esr.2026.102141","DOIUrl":"10.1016/j.esr.2026.102141","url":null,"abstract":"<div><div>Poverty eradication and climate mitigation are two central challenges facing developing countries in the process of rural development. Targeted poverty alleviation policy (TPAP) is aimed at ending extreme poverty and may deliver carbon emission reductions beyond its primary policy objective. Hence, we treat China's TPAP as a quasi-natural experiment and employ a Difference-in-Differences (DID) framework to examine the impact of poverty alleviation policies on carbon emissions in poverty-stricken counties. We further examine heterogeneity in the effects of poverty alleviation policies across income levels and targeted renewable energy policies. The empirical findings reveal that the TPAP significantly reduced carbon emissions in poverty-stricken counties relative to the control group, with an average reduction of 0.36%. However, some industry-specific policies, such as the Photovoltaic Poverty Alleviation program, led to an increase in carbon emissions in pilot counties, with a net effect of 0.102. Mechanism analysis demonstrates that industrial poverty alleviation promotes the development of non-agricultural industries. Additional heterogeneity analysis reveals that counties with lower baseline income experienced larger emission reductions, consistent with greater scope for energy structure adjustment and marginal substitution away from traditional energy sources. Overall, this study highlights the heterogeneous climate impacts of poverty alleviation policies and provides evidence-based insights for designing poverty reduction strategies.</div></div>","PeriodicalId":11546,"journal":{"name":"Energy Strategy Reviews","volume":"64 ","pages":"Article 102141"},"PeriodicalIF":7.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147399045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}