Pub Date : 2024-11-23DOI: 10.1016/j.jup.2024.101857
Selvin Thanacoody
Water utilities in Eastern Europe are regulated under different schemes and achieve different water utility network loss reductions and service quality levels. Through a theoretical model, we analyse a water utility’s response to price-cap or rate-of-return regulation when setting their levels of water loss reduction and service quality. Lower price caps induce the firm to reduce water losses when demand is inelastic, while higher rates of return lead the firm to reduce water losses only from low levels of the ROR model. Service quality increases in the price cap but shrinks in the ROR model. We show that PC regulation is a superior policy when the cost of capital is not too high, as the firm can efficiently supply at a low price and provide some level of quality.
{"title":"Water utility network loss reduction and service quality under price cap and rate of return regulation","authors":"Selvin Thanacoody","doi":"10.1016/j.jup.2024.101857","DOIUrl":"10.1016/j.jup.2024.101857","url":null,"abstract":"<div><div>Water utilities in Eastern Europe are regulated under different schemes and achieve different water utility network loss reductions and service quality levels. Through a theoretical model, we analyse a water utility’s response to price-cap or rate-of-return regulation when setting their levels of water loss reduction and service quality. Lower price caps induce the firm to reduce water losses when demand is inelastic, while higher rates of return lead the firm to reduce water losses only from low levels of the ROR model. Service quality increases in the price cap but shrinks in the ROR model. We show that PC regulation is a superior policy when the cost of capital is not too high, as the firm can efficiently supply at a low price and provide some level of quality.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"92 ","pages":"Article 101857"},"PeriodicalIF":3.8,"publicationDate":"2024-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142747177","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-22DOI: 10.1016/j.jup.2024.101858
Tomohiro Fujita
Since the Fukushima accident, Japan's nuclear policy has changed dramatically. However, restarting operations of some reactors has become an option for the government. This study focuses on the role of objective knowledge and, for the first time, develops statements for measuring people's accurate factual judgments and reflecting on energy issues in post-Fukushima Japan. Replies of two surveys conducted in the Kansai region were analyzed. From them, it was observed that having objective knowledge was positively associated with holding a favorable opinion rather than an ambiguous opinion toward restarting the plants, and association differences existed between subjective and objective knowledge.
{"title":"Energy knowledge and public response to restarting nuclear plants in Japan following the fukushima accident","authors":"Tomohiro Fujita","doi":"10.1016/j.jup.2024.101858","DOIUrl":"10.1016/j.jup.2024.101858","url":null,"abstract":"<div><div>Since the Fukushima accident, Japan's nuclear policy has changed dramatically. However, restarting operations of some reactors has become an option for the government. This study focuses on the role of objective knowledge and, for the first time, develops statements for measuring people's accurate factual judgments and reflecting on energy issues in post-Fukushima Japan. Replies of two surveys conducted in the Kansai region were analyzed. From them, it was observed that having objective knowledge was positively associated with holding a favorable opinion rather than an ambiguous opinion toward restarting the plants, and association differences existed between subjective and objective knowledge.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"92 ","pages":"Article 101858"},"PeriodicalIF":3.8,"publicationDate":"2024-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142747176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-21DOI: 10.1016/j.jup.2024.101856
Francisco C.R. Coelho , Fernando A. Assis , José Filho C. Castro , Antonio R. Donadon , Ronaldo A. Roncolatto , Vittoria E.M.S. Andrade , Pedro A.C. Rosas , Silvangela L.S.L. Barcelos , Osvaldo R. Saavedra , Rafael G. Bento , Rafael K. Carneiro , Pablo F. Hernandez , Luiz C.P. Silva
Microgrids offer an innovative solution to modern energy challenges, providing enhanced reliability and resilience to distribution systems while accommodating the growing presence of distributed energy resources (DER). However, realizing the potential benefits of microgrids requires a comprehensive assessment of their complex technical and economic aspects. This paper introduces a dedicated techno-economic evaluation model for community microgrids (CMGs) while considering a consumer-centric internal market. Uncertainties arising from load variations and intermittent generation are addressed via Monte Carlo simulation (MCS). The proposed internal market model aligns with the Brazilian regulatory framework and enables currently unavailable innovations, such as a community internal market; however, the model can be adapted to the context of any system. We demonstrate the capabilities of the methodology by presenting a case study involving a real microgrid, where economic benefits are shared among all consumers. This study, derived from a research and development (R&D) project, underscores its practical relevance in advancing cleaner and more sustainable energy systems.
{"title":"Monte Carlo simulation of community microgrid operation: Business prospects in the Brazilian regulatory framework","authors":"Francisco C.R. Coelho , Fernando A. Assis , José Filho C. Castro , Antonio R. Donadon , Ronaldo A. Roncolatto , Vittoria E.M.S. Andrade , Pedro A.C. Rosas , Silvangela L.S.L. Barcelos , Osvaldo R. Saavedra , Rafael G. Bento , Rafael K. Carneiro , Pablo F. Hernandez , Luiz C.P. Silva","doi":"10.1016/j.jup.2024.101856","DOIUrl":"10.1016/j.jup.2024.101856","url":null,"abstract":"<div><div>Microgrids offer an innovative solution to modern energy challenges, providing enhanced reliability and resilience to distribution systems while accommodating the growing presence of distributed energy resources (DER). However, realizing the potential benefits of microgrids requires a comprehensive assessment of their complex technical and economic aspects. This paper introduces a dedicated techno-economic evaluation model for community microgrids (CMGs) while considering a consumer-centric internal market. Uncertainties arising from load variations and intermittent generation are addressed via Monte Carlo simulation (MCS). The proposed internal market model aligns with the Brazilian regulatory framework and enables currently unavailable innovations, such as a community internal market; however, the model can be adapted to the context of any system. We demonstrate the capabilities of the methodology by presenting a case study involving a real microgrid, where economic benefits are shared among all consumers. This study, derived from a research and development (R&D) project, underscores its practical relevance in advancing cleaner and more sustainable energy systems.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"92 ","pages":"Article 101856"},"PeriodicalIF":3.8,"publicationDate":"2024-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142747171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-12DOI: 10.1016/j.jup.2024.101852
Congyu Zhao , Xuan Zhai , Miaomiao Tao , Shuai Che
Using a comprehensive dataset spanning 22 countries from 2000 to 2020, this study investigates the influence of economic policy uncertainty on electricity accessibility and the urban-rural gap in accessibility, employing a fixed-effect model. Our research provides several new contributions to the existing body of knowledge. First, heightened economic policy uncertainty is linked to reduced electricity access in both urban and rural areas, and it also correlates with an increase in the disparity between these regions. Second, the relationship between economic policy uncertainty and electricity access is not uniform across different levels of accessibility. Specifically, a negative relationship is evident when accessibility is low, but this effect becomes insignificant when access levels surpass the median (50th quantile). While the positive association between economic policy uncertainty and the urban-rural gap is present, it does not intensify as the disparity widens. Third, a mechanism analysis reveals that policy uncertainty contributes to government corruption, further hindering electricity access and deepening regional inequalities. The analysis also highlights how economic policy uncertainty can exacerbate corruption, compounding access issues. Finally, green finance emerges as a mitigating factor, alleviating some of the adverse effects of policy uncertainty. These results provide a deeper understanding of the intricate dynamics at play and suggest that carefully crafted policies can help offset the negative consequences of economic policy uncertainty.
{"title":"Enlarged scars: The effects of economic policy uncertainty on electricity accessibility and urban-rural disparity","authors":"Congyu Zhao , Xuan Zhai , Miaomiao Tao , Shuai Che","doi":"10.1016/j.jup.2024.101852","DOIUrl":"10.1016/j.jup.2024.101852","url":null,"abstract":"<div><div>Using a comprehensive dataset spanning 22 countries from 2000 to 2020, this study investigates the influence of economic policy uncertainty on electricity accessibility and the urban-rural gap in accessibility, employing a fixed-effect model. Our research provides several new contributions to the existing body of knowledge. First, heightened economic policy uncertainty is linked to reduced electricity access in both urban and rural areas, and it also correlates with an increase in the disparity between these regions. Second, the relationship between economic policy uncertainty and electricity access is not uniform across different levels of accessibility. Specifically, a negative relationship is evident when accessibility is low, but this effect becomes insignificant when access levels surpass the median (50th quantile). While the positive association between economic policy uncertainty and the urban-rural gap is present, it does not intensify as the disparity widens. Third, a mechanism analysis reveals that policy uncertainty contributes to government corruption, further hindering electricity access and deepening regional inequalities. The analysis also highlights how economic policy uncertainty can exacerbate corruption, compounding access issues. Finally, green finance emerges as a mitigating factor, alleviating some of the adverse effects of policy uncertainty. These results provide a deeper understanding of the intricate dynamics at play and suggest that carefully crafted policies can help offset the negative consequences of economic policy uncertainty.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101852"},"PeriodicalIF":3.8,"publicationDate":"2024-11-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142656800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-11DOI: 10.1016/j.jup.2024.101854
Maria Apergi , Laima Eicke , Andreas Goldthau , Jude Kurniawan , Esther Schuch , Silvia Weko
Which factors may enable a secure, affordable, and sustainable development of the Kenyan energy system? The present study aims to understand how the country's energy system could be structured in 2050, to unravel the main challenges, and to identify critical leverage points for policy action. To this end, we designed energy scenarios for Kenya using cross-impact balance and succession analysis, drawing extensively from expert judgments. The results highlight the importance of improving the quality of the grid, further reforming the electricity market structure, encouraging more competition, and promoting decentralization as the main leverage points for ensuring a secure and sustainable energy future.
{"title":"Pathways to a sustainable electricity sector in Kenya: Challenges and transformational factors","authors":"Maria Apergi , Laima Eicke , Andreas Goldthau , Jude Kurniawan , Esther Schuch , Silvia Weko","doi":"10.1016/j.jup.2024.101854","DOIUrl":"10.1016/j.jup.2024.101854","url":null,"abstract":"<div><div>Which factors may enable a secure, affordable, and sustainable development of the Kenyan energy system? The present study aims to understand how the country's energy system could be structured in 2050, to unravel the main challenges, and to identify critical leverage points for policy action. To this end, we designed energy scenarios for Kenya using cross-impact balance and succession analysis, drawing extensively from expert judgments. The results highlight the importance of improving the quality of the grid, further reforming the electricity market structure, encouraging more competition, and promoting decentralization as the main leverage points for ensuring a secure and sustainable energy future.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101854"},"PeriodicalIF":3.8,"publicationDate":"2024-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142656799","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-09DOI: 10.1016/j.jup.2024.101853
M. Åhman, M. Arens
The main options for deep decarbonisation of primary steel production are to continue using coal and employ carbon capture and storage (CCS) or to change the production process to direct reduction by utilizing hydrogen produced from renewable energy resources. In India, the world's second-largest steel producer, a shift to renewables is inhibited by the current power market regime, which includes a complex cross-subsidy scheme. We calculate the cost of energy and the amount of cross-subsidies paid by the Indian steel industry, analyse the effects of the cross-subsidies on deep decarbonisation options, and discuss the barriers to their removal.
{"title":"Are electricity prices and cross-subsidies a barrier to decarbonising India's steel industry?","authors":"M. Åhman, M. Arens","doi":"10.1016/j.jup.2024.101853","DOIUrl":"10.1016/j.jup.2024.101853","url":null,"abstract":"<div><div>The main options for deep decarbonisation of primary steel production are to continue using coal and employ carbon capture and storage (CCS) or to change the production process to direct reduction by utilizing hydrogen produced from renewable energy resources. In India, the world's second-largest steel producer, a shift to renewables is inhibited by the current power market regime, which includes a complex cross-subsidy scheme. We calculate the cost of energy and the amount of cross-subsidies paid by the Indian steel industry, analyse the effects of the cross-subsidies on deep decarbonisation options, and discuss the barriers to their removal.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101853"},"PeriodicalIF":3.8,"publicationDate":"2024-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142656798","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-05DOI: 10.1016/j.jup.2024.101855
B. Pavlović , N. Trtica
This paper presents an approach to assess the short to medium-term effects of the Emissions Trading System (ETS), an economic and climate policy instrument aimed at reducing greenhouse gas emissions, on GDP from the expenditure side. The analysis focuses on Serbia's electricity sector, which relies heavily on lignite-based production dominated by state-owned enterprises. The obtained projections suggest that in the short term, the introduction of an ETS may lead to slower GDP growth compared to official forecasts. However, by 2030, accelerated growth is observed, eventually converging with and even surpassing the projected growth in scenarios characterized by higher investments.
{"title":"Projecting short to medium-term effects of carbon emissions trading on Serbia's GDP","authors":"B. Pavlović , N. Trtica","doi":"10.1016/j.jup.2024.101855","DOIUrl":"10.1016/j.jup.2024.101855","url":null,"abstract":"<div><div>This paper presents an approach to assess the short to medium-term effects of the Emissions Trading System (ETS), an economic and climate policy instrument aimed at reducing greenhouse gas emissions, on GDP from the expenditure side. The analysis focuses on Serbia's electricity sector, which relies heavily on lignite-based production dominated by state-owned enterprises. The obtained projections suggest that in the short term, the introduction of an ETS may lead to slower GDP growth compared to official forecasts. However, by 2030, accelerated growth is observed, eventually converging with and even surpassing the projected growth in scenarios characterized by higher investments.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101855"},"PeriodicalIF":3.8,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142592551","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-30DOI: 10.1016/j.jup.2024.101850
Husnain Fateh Ahmad , Ayesha Ali , Robyn C. Meeks , Victoria Plutshack , Zhenxuan Wang , Javed Younas
Reliable electricity access is vital to economic growth, though financial challenges can undermine service quality. In Karachi, Pakistan, the local utility intervened to reduce losses and improve bill revenue recovery. The intervention increased budgets to improve infrastructure, provided staff incentives, and expanded customer engagement activities. We employ qualitative techniques to study managers' and customers’ perceptions of the intervention and the mechanisms driving its effects. While managers credit the multi-pronged nature of the intervention for increasing trust and mitigating the effects of the COVID-19 pandemic, customers report no increase in trust and focus primarily on infrastructure improvements.
{"title":"Breaking the culture of nonpayment: A qualitative analysis of utility intervention in Pakistan","authors":"Husnain Fateh Ahmad , Ayesha Ali , Robyn C. Meeks , Victoria Plutshack , Zhenxuan Wang , Javed Younas","doi":"10.1016/j.jup.2024.101850","DOIUrl":"10.1016/j.jup.2024.101850","url":null,"abstract":"<div><div>Reliable electricity access is vital to economic growth, though financial challenges can undermine service quality. In Karachi, Pakistan, the local utility intervened to reduce losses and improve bill revenue recovery. The intervention increased budgets to improve infrastructure, provided staff incentives, and expanded customer engagement activities. We employ qualitative techniques to study managers' and customers’ perceptions of the intervention and the mechanisms driving its effects. While managers credit the multi-pronged nature of the intervention for increasing trust and mitigating the effects of the COVID-19 pandemic, customers report no increase in trust and focus primarily on infrastructure improvements.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101850"},"PeriodicalIF":3.8,"publicationDate":"2024-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142552976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1016/j.jup.2024.101846
Kadoukpè Gildas Magbondé , Barry Reilly , Bridget Kauma
This study uses a cross-sectional dataset of 3215 rural Senegalese households from the 2018/19 Harmonized Survey on Households Living Standards to assess the distributional household welfare effects of electricity access. The paper conducts separate analyses for both on-grid and off-grid electricity access and uses an array of empirical strategies to compute the relevant effects. We find that household access to grid electricity is associated with increased food and non-food expenditures, while off-grid solar electricity is only associated with increased levels of the latter. In addition, access to grid electricity appears to impact household expenditures more than solar electricity, with the off-grid effect not detected at the top end of the non-food expenditure distribution. In contrast, on-grid electricity has a greater welfare impact on higher-income households. The results further suggest that access to solar electricity can reduce inequality in total non-food household expenditures more than on-grid electricity. The findings encourage consideration of policies designed to extend solar energy to the more remote rural areas to reduce inequality.
{"title":"The distributional effects of rural electrification on household welfare: Evidence from Senegal","authors":"Kadoukpè Gildas Magbondé , Barry Reilly , Bridget Kauma","doi":"10.1016/j.jup.2024.101846","DOIUrl":"10.1016/j.jup.2024.101846","url":null,"abstract":"<div><div>This study uses a cross-sectional dataset of 3215 rural Senegalese households from the 2018/19 Harmonized Survey on Households Living Standards to assess the distributional household welfare effects of electricity access. The paper conducts separate analyses for both on-grid and off-grid electricity access and uses an array of empirical strategies to compute the relevant effects. We find that household access to grid electricity is associated with increased food and non-food expenditures, while off-grid solar electricity is only associated with increased levels of the latter. In addition, access to grid electricity appears to impact household expenditures more than solar electricity, with the off-grid effect not detected at the top end of the non-food expenditure distribution. In contrast, on-grid electricity has a greater welfare impact on higher-income households. The results further suggest that access to solar electricity can reduce inequality in total non-food household expenditures more than on-grid electricity. The findings encourage consideration of policies designed to extend solar energy to the more remote rural areas to reduce inequality.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101846"},"PeriodicalIF":3.8,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142529547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-28DOI: 10.1016/j.jup.2024.101851
Cristobal Bistuer-Talavera , Joan Llobet-Dalmases , Dolors Plana-Erta , Jorge M. Uribe
The renewable energy transition depends heavily on capital structure decisions of energy firms. Most previous research has focused on the decisions of oil companies. This study investigates the financing of new investment in the Spanish renewable energy sector, including decisions about: i) equity versus debt, ii) short versus long-term debt, and iii) equity issuances versus retained earnings for new investment. Our analysis is based on data from over 22,000 energy firms from 2008 to 2021 and shows that these firms prefer debt over equity (more than 90% of changes in assets are financed through increasing debt) and have extended the term of the debt over the period studied (reaching a maximum of almost 73% long-term debt in 2021). The deployment of retained earnings is less usual than raising new equity capital. Our analysis points to a generalized use of project finance to support new investments. Policymakers should focus on increasing financing through equity and thus diversifying the financial risk of the energy transition. In addition, a supportive fiscal policy and a stable regulatory environment are desirable for achieving this goal.
{"title":"Capital structure decisions in the energy transition: Insights from Spain","authors":"Cristobal Bistuer-Talavera , Joan Llobet-Dalmases , Dolors Plana-Erta , Jorge M. Uribe","doi":"10.1016/j.jup.2024.101851","DOIUrl":"10.1016/j.jup.2024.101851","url":null,"abstract":"<div><div>The renewable energy transition depends heavily on capital structure decisions of energy firms. Most previous research has focused on the decisions of oil companies. This study investigates the financing of new investment in the Spanish renewable energy sector, including decisions about: i) equity versus debt, ii) short versus long-term debt, and iii) equity issuances versus retained earnings for new investment. Our analysis is based on data from over 22,000 energy firms from 2008 to 2021 and shows that these firms prefer debt over equity (more than 90% of changes in assets are financed through increasing debt) and have extended the term of the debt over the period studied (reaching a maximum of almost 73% long-term debt in 2021). The deployment of retained earnings is less usual than raising new equity capital. Our analysis points to a generalized use of project finance to support new investments. Policymakers should focus on increasing financing through equity and thus diversifying the financial risk of the energy transition. In addition, a supportive fiscal policy and a stable regulatory environment are desirable for achieving this goal.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101851"},"PeriodicalIF":3.8,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142529548","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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