Pub Date : 2025-01-08DOI: 10.1016/j.eneco.2025.108193
Geir H.M. Bjertnæs
A tax on fuel that promotes a more fuel-saving driving style leads to both fewer accidents and less noise pollution per mile driven, but also more driving due to a lower cost of driving. The present study contributes to the literature by calculating second-best optimal taxes on fuel and vehicle miles travelled within a model framework that incorporates such tax-induced impacts on externalities. The study shows that the current US tax wedge between gasoline and non-polluting goods, approximately USD 0.3 per gallon, is far below a conservative estimate of the second-best optimal tax wedge of approximately USD 2.2 per gallon, and even further below best-practice estimates of USD 3.5–4.38 per gallon. The current UK tax wedge is slightly below a conservative estimate of the optimal tax wedge of approximately USD 3 per gallon. The study also shows that the second-best optimal tax rate on fuel exceeds the marginal damage of fuel-related externalities when combined with a tax on vehicle miles travelled. The tax on vehicle miles travelled is reduced below the marginal damage of mileage-related externalities in this case to prevent excessive taxation of driving.
{"title":"Economical driving and taxation of road use","authors":"Geir H.M. Bjertnæs","doi":"10.1016/j.eneco.2025.108193","DOIUrl":"https://doi.org/10.1016/j.eneco.2025.108193","url":null,"abstract":"A tax on fuel that promotes a more fuel-saving driving style leads to both fewer accidents and less noise pollution per mile driven, but also more driving due to a lower cost of driving. The present study contributes to the literature by calculating second-best optimal taxes on fuel and vehicle miles travelled within a model framework that incorporates such tax-induced impacts on externalities. The study shows that the current US tax wedge between gasoline and non-polluting goods, approximately USD 0.3 per gallon, is far below a conservative estimate of the second-best optimal tax wedge of approximately USD 2.2 per gallon, and even further below best-practice estimates of USD 3.5–4.38 per gallon. The current UK tax wedge is slightly below a conservative estimate of the optimal tax wedge of approximately USD 3 per gallon. The study also shows that the second-best optimal tax rate on fuel exceeds the marginal damage of fuel-related externalities when combined with a tax on vehicle miles travelled. The tax on vehicle miles travelled is reduced below the marginal damage of mileage-related externalities in this case to prevent excessive taxation of driving.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"36 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142975143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-06DOI: 10.1016/j.eneco.2025.108195
Jamel Saadaoui, Russell Smyth, Joaquin Vespignani
We use constant and time-varying parameter local projection (TVP-LP) regression models to examine the effect of geopolitical risk on prices of six critical minerals: aluminium, copper, nickel, platinum, tin and zinc. We propose a conceptual framework in which the responsiveness of prices for critical minerals to geopolitical risk depends on the non-technical risk associated with procuring each critical mineral and geopolitical threats have a bigger effect on critical mineral prices than geopolitical acts. Our results are generally consistent with these predictions. We find considerable evidence that the effect of geopolitical risk on the prices of critical minerals is time varying, with the Gulf War, 9/11 terrorist attacks and COVID-19 pandemic each having a significant effect. We find that shocks due to geopolitical threats are generally bigger in magnitude than geopolitical acts and that prices respond more quickly to geopolitical threats.
{"title":"Ensuring the security of the clean energy transition: Examining the impact of geopolitical risk on the price of critical minerals","authors":"Jamel Saadaoui, Russell Smyth, Joaquin Vespignani","doi":"10.1016/j.eneco.2025.108195","DOIUrl":"https://doi.org/10.1016/j.eneco.2025.108195","url":null,"abstract":"We use constant and time-varying parameter local projection (TVP-LP) regression models to examine the effect of geopolitical risk on prices of six critical minerals: aluminium, copper, nickel, platinum, tin and zinc. We propose a conceptual framework in which the responsiveness of prices for critical minerals to geopolitical risk depends on the non-technical risk associated with procuring each critical mineral and geopolitical threats have a bigger effect on critical mineral prices than geopolitical acts. Our results are generally consistent with these predictions. We find considerable evidence that the effect of geopolitical risk on the prices of critical minerals is time varying, with the Gulf War, 9/11 terrorist attacks and COVID-19 pandemic each having a significant effect. We find that shocks due to geopolitical threats are generally bigger in magnitude than geopolitical acts and that prices respond more quickly to geopolitical threats.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"40 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968120","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-04DOI: 10.1016/j.eneco.2024.108148
Oleg Badunenko, Astrid Cullmann, Maria Nieswand
Sweden is at the forefront of the transition of its energy sector to low-carbon technologies with profound consequences for both energy generation and its distribution. However, the impact of this transition on the performance of Electricity Distribution System Operators (DSOs) has not been thoroughly studied. The article addresses this gap by using a novel approach and detailed georeferenced firm-level, weather, and regional data in Sweden from 2014 to 2019. Our findings indicate that (i) an increase in the number of small-scale feeders and (ii) a higher degree of decentralized energy production (decentralization) both improve DSOs’ cost efficiencies. Additionally, we demonstrate that DSOs have adapted well to long-term weather variability. These results have significant implications for the effective implementation of renewable energy policies.
{"title":"Integrating renewable energy resources in electricity distribution systems—A firm-level efficiency analysis for Sweden controlling for weather conditions","authors":"Oleg Badunenko, Astrid Cullmann, Maria Nieswand","doi":"10.1016/j.eneco.2024.108148","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108148","url":null,"abstract":"Sweden is at the forefront of the transition of its energy sector to low-carbon technologies with profound consequences for both energy generation and its distribution. However, the impact of this transition on the performance of Electricity Distribution System Operators (DSOs) has not been thoroughly studied. The article addresses this gap by using a novel approach and detailed georeferenced firm-level, weather, and regional data in Sweden from 2014 to 2019. Our findings indicate that (i) an increase in the number of small-scale feeders and (ii) a higher degree of decentralized energy production (decentralization) both improve DSOs’ cost efficiencies. Additionally, we demonstrate that DSOs have adapted well to long-term weather variability. These results have significant implications for the effective implementation of renewable energy policies.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"50 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968123","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-04DOI: 10.1016/j.eneco.2024.108177
Zhenjing Gu, Saeed Mousa, Da Meng, Ahmed M. Elkady, Lin Woon Leong
In this era of rapid change, natural resource extraction (NRE) plays a pivotal role in securing an energy-resilient future and fostering sustainable socio-economic development. Carbon neutrality and supply chain digitization have emerged as key strategies in the global battle against susutaining climate. This research explores how supply chain digitization contributes to energy resilience, specifically examining the nexus between carbon neutrality and natural resource extraction in South Asia. Through panel data analysis (employing both random and fixed effect models), the study assesses the impact of supply chain digitization on energy security, sustainable development, and green innovation. The findings indicate that for every 1 % increase in the trade balance of GDP, NRE rises by an average of 0.06 % of gross domestic product (GDP). Additionally, the research reveals that a 1 % reduction in carbon emissions leads to a significant boost in NRE, with an average increase of 1.01 % of GDP, highlighting its substantial contribution to economic growth. Moreover, the study forecasts carbon emissions based on the selected variables using a Feed-forward Neural Network (FFNN), achieving high levels of accuracy with respect to Root Mean Square Error (RMSE) i.e. 21 %. In conclusion, the study emphasizes that supply chain digitization and carbon neutrality are integral to fostering resilient NRE. These insights can guide policymakers in internalizing environmental costs, promoting sustainable practices, improving industrial production by minimizing the polluting elements and investing in conservation initiatives. By recognizing the importance of natural resources, energy resilience, and their economic returns, South Asian economies can make informed decisions that drive long-term resilience and prosperity.
{"title":"Digitizing energy supply chains for enhanced resilience: Exploring the nexus between supply chain digitization, carbon neutrality, and natural resource extraction","authors":"Zhenjing Gu, Saeed Mousa, Da Meng, Ahmed M. Elkady, Lin Woon Leong","doi":"10.1016/j.eneco.2024.108177","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108177","url":null,"abstract":"In this era of rapid change, natural resource extraction (NRE) plays a pivotal role in securing an energy-resilient future and fostering sustainable socio-economic development. Carbon neutrality and supply chain digitization have emerged as key strategies in the global battle against susutaining climate. This research explores how supply chain digitization contributes to energy resilience, specifically examining the nexus between carbon neutrality and natural resource extraction in South Asia. Through panel data analysis (employing both random and fixed effect models), the study assesses the impact of supply chain digitization on energy security, sustainable development, and green innovation. The findings indicate that for every 1 % increase in the trade balance of GDP, NRE rises by an average of 0.06 % of gross domestic product (GDP). Additionally, the research reveals that a 1 % reduction in carbon emissions leads to a significant boost in NRE, with an average increase of 1.01 % of GDP, highlighting its substantial contribution to economic growth. Moreover, the study forecasts carbon emissions based on the selected variables using a Feed-forward Neural Network (FFNN), achieving high levels of accuracy with respect to Root Mean Square Error (RMSE) i.e. 21 %. In conclusion, the study emphasizes that supply chain digitization and carbon neutrality are integral to fostering resilient NRE. These insights can guide policymakers in internalizing environmental costs, promoting sustainable practices, improving industrial production by minimizing the polluting elements and investing in conservation initiatives. By recognizing the importance of natural resources, energy resilience, and their economic returns, South Asian economies can make informed decisions that drive long-term resilience and prosperity.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"6 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-03DOI: 10.1016/j.eneco.2024.108174
W. Hill Balliet, Patrick Balducci, Venkat Durvasulu, Thomas Mosier
Levelized cost of storage (LCOS) can be a simple, intuitive, and useful metric for determining whether a new energy storage plant would be profitable over its life cycle and to compare the cost of different energy storage technologies. However, researchers and industry decision makers still use conflicting definitions of LCOS. For example, some include charging cost, while others only include round trip efficiency (RTE) losses. Additionally, inputs to the existing formulations are not specific enough to generate repeatable results across studies, which reduces trust in the metric. To push for standardization in economic assessment of batteries and other energy storage devices, the authors review existing definitions of LCOS and identify the desired characteristics for a standard. They then propose a new definition and demonstrate that it fits these characteristics very well relative to other prominent options. Unit analysis is applied to this proposed definition to provide a deeper understanding of the equations and to demonstrate its effectiveness. Finally, the sensitivity of LCOS to different input parameters is investigated to help users understand how to compare analyses from literature to their own. The authors also provide a spreadsheet and a Python script to streamline adoption of the proposed definition.
{"title":"Determining the profitability of energy storage over its life cycle using levelized cost of storage","authors":"W. Hill Balliet, Patrick Balducci, Venkat Durvasulu, Thomas Mosier","doi":"10.1016/j.eneco.2024.108174","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108174","url":null,"abstract":"Levelized cost of storage (LCOS) can be a simple, intuitive, and useful metric for determining whether a new energy storage plant would be profitable over its life cycle and to compare the cost of different energy storage technologies. However, researchers and industry decision makers still use conflicting definitions of LCOS. For example, some include charging cost, while others only include round trip efficiency (RTE) losses. Additionally, inputs to the existing formulations are not specific enough to generate repeatable results across studies, which reduces trust in the metric. To push for standardization in economic assessment of batteries and other energy storage devices, the authors review existing definitions of LCOS and identify the desired characteristics for a standard. They then propose a new definition and demonstrate that it fits these characteristics very well relative to other prominent options. Unit analysis is applied to this proposed definition to provide a deeper understanding of the equations and to demonstrate its effectiveness. Finally, the sensitivity of LCOS to different input parameters is investigated to help users understand how to compare analyses from literature to their own. The authors also provide a spreadsheet and a Python script to streamline adoption of the proposed definition.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"36 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968124","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-02DOI: 10.1016/j.eneco.2024.108169
Muhammad Zubair Chishti, Xiqiang Xia, Eyup Dogan
{"title":"Corrigendum to “Understanding the effects of artificial intelligence on energy transition: The moderating role of Paris Agreement” [Energy Economics Volume 131, March 2024, 107388]","authors":"Muhammad Zubair Chishti, Xiqiang Xia, Eyup Dogan","doi":"10.1016/j.eneco.2024.108169","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108169","url":null,"abstract":"","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"27 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142929182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-31DOI: 10.1016/j.eneco.2024.108142
Francisco Rosas
The objective of this study is to propose an extension of the Fullerton and Ta (2019) model, who show that their simple general equilibrium model generates comparable results to those yielded by large computable general equilibrium models. We propose key extensions that are relevant for climate policy analysis, in particular, for countries with significant net emissions coming from agriculture. We add timber production as another sector and land as another production factor, and analytically find the closed-form solution for the general equilibrium. We present an application calibrated to 2019 Uruguayan data, and implement the CO2-neutral scenario of its 2050 Climate Change Long Term Strategy (LTS) submitted to the UNFCCC, which targets a CO2 net-zero economy by 2050. It requires a sharp reduction in fossil fuels demand, an increase of electricity demand to compensate the reduction of energy demand, a moderate increase in forestry area driving CO2 sinks, and a moderate increase in livestock productivity that reduces the CO2 emissions per unit of output. We assess the impacts on some key macroeconomic variables. Results show that the LTS CO2-neutral scenario implies a cumulative impact on GDP level through 2050 of 0.01% or −0.73% depending on the set of policy instruments used. But considering that the time horizon is of about 30 years and assuming that the impact is equally distributed over time, it implies that the GDP growth rate remains almost unchanged relative to the baseline scenario. Therefore, this LTS, which implies drastic changes in the energy supply composition, implies only mild changes in GDP, but strong reductions on net CO2 emissions.
{"title":"The assessment of climate change policies through a general equilibrium model: An application to Uruguay","authors":"Francisco Rosas","doi":"10.1016/j.eneco.2024.108142","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108142","url":null,"abstract":"The objective of this study is to propose an extension of the Fullerton and Ta (2019) model, who show that their simple general equilibrium model generates comparable results to those yielded by large computable general equilibrium models. We propose key extensions that are relevant for climate policy analysis, in particular, for countries with significant net emissions coming from agriculture. We add timber production as another sector and land as another production factor, and analytically find the closed-form solution for the general equilibrium. We present an application calibrated to 2019 Uruguayan data, and implement the CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math>-neutral scenario of its 2050 Climate Change Long Term Strategy (LTS) submitted to the UNFCCC, which targets a CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math> net-zero economy by 2050. It requires a sharp reduction in fossil fuels demand, an increase of electricity demand to compensate the reduction of energy demand, a moderate increase in forestry area driving CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math> sinks, and a moderate increase in livestock productivity that reduces the CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math> emissions per unit of output. We assess the impacts on some key macroeconomic variables. Results show that the LTS CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math>-neutral scenario implies a cumulative impact on GDP level through 2050 of 0.01% or −0.73% depending on the set of policy instruments used. But considering that the time horizon is of about 30 years and assuming that the impact is equally distributed over time, it implies that the GDP growth rate remains almost unchanged relative to the baseline scenario. Therefore, this LTS, which implies drastic changes in the energy supply composition, implies only mild changes in GDP, but strong reductions on net CO<mml:math altimg=\"si328.svg\" display=\"inline\"><mml:msub><mml:mrow></mml:mrow><mml:mrow><mml:mn>2</mml:mn></mml:mrow></mml:msub></mml:math> emissions.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"27 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-30DOI: 10.1016/j.eneco.2024.108172
Aviral Kumar Tiwari, Hai Hong Trinh, Diem Thi Hong Vo, Gagan Deep Sharma
The study investigates the multidecade complexity between economic growth and carbon emissions across income groups and regions for 180 economies over the past decades. We find that the global economy has been decarbonizing its economic growth. The effects of growth on decarbonization are conditional on outcome distributions. The Paris Agreement (COP21) and renewable energy consumption (REC) are robust mechanisms toward green growth. Financial development (FD) presents its moderation to decarbonized growth. The study makes the following novel contributions to prior literature streams. First, complex GDP-CO2 nexuses are conditional on green factors and decarbonization is foremost for our global inclusive growth. Second, the friendliness of FD to the environment relies on green transition. It is worth noting that financial institutions and markets are exposed to climate risk drivers leading to our great challenge to promote green finance. Decarbonization is our global and constant efforts toward inclusive growth. Under finance-energy inequality, renewable energy capacity and finance are critical to decarbonized economic growth.
{"title":"How do economies decarbonize growth under finance-energy inequality? Global evidence","authors":"Aviral Kumar Tiwari, Hai Hong Trinh, Diem Thi Hong Vo, Gagan Deep Sharma","doi":"10.1016/j.eneco.2024.108172","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108172","url":null,"abstract":"The study investigates the multidecade complexity between economic growth and carbon emissions across income groups and regions for 180 economies over the past decades. We find that the global economy has been decarbonizing its economic growth. The effects of growth on decarbonization are conditional on outcome distributions. The Paris Agreement (COP21) and renewable energy consumption (REC) are robust mechanisms toward green growth. Financial development (FD) presents its moderation to decarbonized growth. The study makes the following novel contributions to prior literature streams. First, complex GDP-CO2 nexuses are conditional on green factors and decarbonization is foremost for our global inclusive growth. Second, the friendliness of FD to the environment relies on green transition. It is worth noting that financial institutions and markets are exposed to climate risk drivers leading to our great challenge to promote green finance. Decarbonization is our global and constant efforts toward inclusive growth. Under finance-energy inequality, renewable energy capacity and finance are critical to decarbonized economic growth.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"128 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The increased penetration of renewable energy sources in Europe has accelerated the participation of aggregators in the wholesale electricity markets. Those participants are responsible for market representation and act as balancing responsible parties for any volume deviation between forecast and actual generation. The Greek Balancing Market is used as a case study, since it is considered as one of the most rapidly growing renewable energy markets across Europe. In this paper, we develop a simulation model able to capture the financial impact of non-compliance charges burdened by aggregators of different size including national terms and conditions. The analysis is also applied to a stressed scenario by assuming marginal deviation above their regulated tolerance limits. Results indicate that for aggregators with market share greater than 5 %, by assuming a double increase in GWh of their annual deviation, would eventually lead to four times higher non-compliance charges. Likewise, an aggregator with capacity of 550 MW would encounter annual non-compliance charges ranging from 1 million € to 2.7 million € for a deviation range of 5 % to 6.5 %. Those findings indicate significant balancing costs burdened by aggregators that jeopardize their long-term viability and eventually the whole market's operation. This is the first paper to empirically capture the complexity of aggregators market in Greece and highlights the necessity to adjust the current electricity market framework by regulators and policymakers.
{"title":"A simulation model for imbalance costs of renewable energy aggregators: The case of Greek balancing market","authors":"Filippos Ioannidis, Tatiani Georgitsioti, Kyriaki Kosmidou, Constantinos Zopounidis, Kostas Andriosopoulos","doi":"10.1016/j.eneco.2024.108155","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108155","url":null,"abstract":"The increased penetration of renewable energy sources in Europe has accelerated the participation of aggregators in the wholesale electricity markets. Those participants are responsible for market representation and act as balancing responsible parties for any volume deviation between forecast and actual generation. The Greek Balancing Market is used as a case study, since it is considered as one of the most rapidly growing renewable energy markets across Europe. In this paper, we develop a simulation model able to capture the financial impact of non-compliance charges burdened by aggregators of different size including national terms and conditions. The analysis is also applied to a stressed scenario by assuming marginal deviation above their regulated tolerance limits. Results indicate that for aggregators with market share greater than 5 %, by assuming a double increase in GWh of their annual deviation, would eventually lead to four times higher non-compliance charges. Likewise, an aggregator with capacity of 550 MW would encounter annual non-compliance charges ranging from 1 million € to 2.7 million € for a deviation range of 5 % to 6.5 %. Those findings indicate significant balancing costs burdened by aggregators that jeopardize their long-term viability and eventually the whole market's operation. This is the first paper to empirically capture the complexity of aggregators market in Greece and highlights the necessity to adjust the current electricity market framework by regulators and policymakers.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"82 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142929183","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-28DOI: 10.1016/j.eneco.2024.108166
Jingping Chen, Chunzi Zhao, Shuang Liu, Yuchen Li
The rapid growth of global energy demands and heightened environmental concerns highlight the critical need to transition to renewable energy sources. Identifying the influence of digitalization of ICT and global supply chains on sustainable practices to mitigate environmental impacts is crucial. This study aims to fill the research gap by examining the effects of manufacturing, digitalization of ICT, supply chain globalization, trade, and GDP on renewable energy consumption in the ASEAN countries. Utilized the Method of Moment Quantile Regression (MMQR) and Prais-Winsten regression with Panel-Corrected Standard Errors (PCSEs) to analyze data from 1995 to 2023. The MMQR results show that manufacturing has overall positive effects at lower quantiles, while digital ICT and supply chain globalization have negative effects across all quantiles. Trade shows an insignificant impact on renewable energy, while economic growth shows a negative effect at higher quantities. The PCSEs model shows stronger negative effects of supply chain globalization and trade on renewable energy consumption. Such effects highlight the need for policy efforts to target the incorporation of renewable energy because of the manifold impacts of economic processes and technology developments.
{"title":"How do digitalizing ICT and supply chain globalization affect renewable energy in ASEAN nations? The mediating role of sustainable environmental practices using the MMQR and PCSEs model","authors":"Jingping Chen, Chunzi Zhao, Shuang Liu, Yuchen Li","doi":"10.1016/j.eneco.2024.108166","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108166","url":null,"abstract":"The rapid growth of global energy demands and heightened environmental concerns highlight the critical need to transition to renewable energy sources. Identifying the influence of digitalization of ICT and global supply chains on sustainable practices to mitigate environmental impacts is crucial. This study aims to fill the research gap by examining the effects of manufacturing, digitalization of ICT, supply chain globalization, trade, and GDP on renewable energy consumption in the ASEAN countries. Utilized the Method of Moment Quantile Regression (MMQR) and Prais-Winsten regression with Panel-Corrected Standard Errors (PCSEs) to analyze data from 1995 to 2023. The MMQR results show that manufacturing has overall positive effects at lower quantiles, while digital ICT and supply chain globalization have negative effects across all quantiles. Trade shows an insignificant impact on renewable energy, while economic growth shows a negative effect at higher quantities. The PCSEs model shows stronger negative effects of supply chain globalization and trade on renewable energy consumption. Such effects highlight the need for policy efforts to target the incorporation of renewable energy because of the manifold impacts of economic processes and technology developments.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"88 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142968125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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