Pub Date : 2019-06-01DOI: 10.5547/2160-5890.8.2.fwol
F. Wolak
Producers and consumers will make the investments and innovations necessary to transition to a low carbon electricity supply industry only if they are compensated for their efforts. In the absence of explicit government support for these activities, this outcome will occur only if wholesale and retail prices provide this compensation. Efficient wholesale and retail pricing provides compensation for the cost-effective deployment of these innovations. Multi-settlement locational marginal pricing markets set efficient short-term wholesale electricity prices. Marginal cost-based pricing of transmission and distribution networks is increasingly important in regions with solar resources. More efficient wholesale and retail pricing implies significantly greater price volatility, particularly as the share of intermittent renewable generation increases, which requires implementing a number of competition and regulatory safeguards to protect consumers, while still providing the price signals necessary for a least cost transition to a low-carbon electricity supply industry.
{"title":"The Role of Efficient Pricing in Enabling a Low-Carbon Electricity Sector","authors":"F. Wolak","doi":"10.5547/2160-5890.8.2.fwol","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.fwol","url":null,"abstract":"Producers and consumers will make the investments and innovations necessary to transition to a low carbon electricity supply industry only if they are compensated for their efforts. In the absence of explicit government support for these activities, this outcome will occur only if wholesale and retail prices provide this compensation. Efficient wholesale and retail pricing provides compensation for the cost-effective deployment of these innovations. Multi-settlement locational marginal pricing markets set efficient short-term wholesale electricity prices. Marginal cost-based pricing of transmission and distribution networks is increasingly important in regions with solar resources. More efficient wholesale and retail pricing implies significantly greater price volatility, particularly as the share of intermittent renewable generation increases, which requires implementing a number of competition and regulatory safeguards to protect consumers, while still providing the price signals necessary for a least cost transition to a low-carbon electricity supply industry.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47286048","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-01DOI: 10.5547/2160-5890.8.2.ASEG
Agustí Segarra‐Blasco, Elisenda Jové‐Llopis
This paper empirically investigates the factors driving the adoption of energy efficiency (EE) and renewable energy (RE) measures in a sample of 8,213 Small and Medium-Sized Enterprises (SMEs) in European countries. Using a bivariate probit model we examine their drivers, complementarities, and potential temporal persistence in three European country clusters (Core countries, Mediterranean countries and New EU members). Our results suggest that sustainable energies actions (EE and RE) are highly persistent both at the firm level and across countries and that there are relevant complementarities between EE and RE practices, as well as other resource efficient practices. In addition, strategies for EE seem to rely more on cost saving and regulations, while those for RE are more linked to public support and environmental awareness. This paper ends with some recommendations for policymakers suggesting that Europe needs to design an energy policy for the SMEs firms that jointly pursues both EE and the diffusion of RE according to the technological gap of each member country. Keywords: energy efficiency, renewable energy, European Union, SMEs firms
{"title":"Determinants of Energy Efficiency and Renewable Energy in European SMEs","authors":"Agustí Segarra‐Blasco, Elisenda Jové‐Llopis","doi":"10.5547/2160-5890.8.2.ASEG","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.ASEG","url":null,"abstract":"This paper empirically investigates the factors driving the adoption of energy efficiency (EE) and renewable energy (RE) measures in a sample of 8,213 Small and Medium-Sized Enterprises (SMEs) in European countries. Using a bivariate probit model we examine their drivers, complementarities, and potential temporal persistence in three European country clusters (Core countries, Mediterranean countries and New EU members). Our results suggest that sustainable energies actions (EE and RE) are highly persistent both at the firm level and across countries and that there are relevant complementarities between EE and RE practices, as well as other resource efficient practices. In addition, strategies for EE seem to rely more on cost saving and regulations, while those for RE are more linked to public support and environmental awareness. This paper ends with some recommendations for policymakers suggesting that Europe needs to design an energy policy for the SMEs firms that jointly pursues both EE and the diffusion of RE according to the technological gap of each member country. Keywords: energy efficiency, renewable energy, European Union, SMEs firms","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41536351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-01DOI: 10.5547/2160-5890.8.2.mcos
M. Costa-Campi, J. García‐Quevedo
1. Motivation underlying the research The agreement reached at the Paris Summit to hold the increase in the global average temperature to below 2 oC poses significant challenges for the energy sector that require new efforts in R&D and innovation. The shortfall in energy R&D is of particular concern when seen in the light of the major technological challenges that face the sector. However, while many reports and papers stress that the internal R&D of energy utilities remains low to meet these challenges, utilities are not the only sector investing in energy-related R&D. In fact, many other industries devote a share of their research expenditure to energy issues.
{"title":"Drivers of Energy R&D in Manufacturing Industries","authors":"M. Costa-Campi, J. García‐Quevedo","doi":"10.5547/2160-5890.8.2.mcos","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.mcos","url":null,"abstract":"1. Motivation underlying the research The agreement reached at the Paris Summit to hold the increase in the global average temperature to below 2 oC poses significant challenges for the energy sector that require new efforts in R&D and innovation. The shortfall in energy R&D is of particular concern when seen in the light of the major technological challenges that face the sector. However, while many reports and papers stress that the internal R&D of energy utilities remains low to meet these challenges, utilities are not the only sector investing in energy-related R&D. In fact, many other industries devote a share of their research expenditure to energy issues.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43711171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-01DOI: 10.5547/2160-5890.8.2.etru
M. Costa-Campi, A. Löschel, Elisa Trujillo-Baute
To reconcile sustainable economic growth and climate change mitigation, it is necessary to re-think the current energy model. The commitments of the Paris Climate Agreement and the Sustainable Development Goals will not be achieved unless energy systems around the world are fundamentally transformed. The energy architecture of the future requires an appropriate framework to cope with different strategies of how this transformation might be approached. The special issue aims to shed light on the role of markets and networks for the energy transition and analyses the appropriate economic, regulatory and policy framework to enable highly integrated, flexible, clean, and efficient energy systems. It is related to the VI International Academic Symposium “Facing the Energy Transition: Markets and Networks” organized in February 2018 by the Chair of Energy Sustainability at the University of Barcelona
{"title":"Facing the Energy Transition: An Introduction","authors":"M. Costa-Campi, A. Löschel, Elisa Trujillo-Baute","doi":"10.5547/2160-5890.8.2.etru","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.etru","url":null,"abstract":"To reconcile sustainable economic growth and climate change mitigation, it is necessary to re-think the current energy model. The commitments of the Paris Climate Agreement and the Sustainable Development Goals will not be achieved unless energy systems around the world are fundamentally transformed. The energy architecture of the future requires an appropriate framework to cope with different strategies of how this transformation might be approached. The special issue aims to shed light on the role of markets and networks for the energy transition and analyses the appropriate economic, regulatory and policy framework to enable highly integrated, flexible, clean, and efficient energy systems. It is related to the VI International Academic Symposium “Facing the Energy Transition: Markets and Networks” organized in February 2018 by the Chair of Energy Sustainability at the University of Barcelona","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43617560","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-01DOI: 10.5547/2160-5890.8.2.CBOH
Christoph Böhringer, X. García-Muros, M. González‐Eguino
Environmental externalities call for the use of environmental taxes to get prices right and thereby reduce environmental pressures. To date, however, the Spanish government makes only limited use of environmental taxes. One major reason for the policy reluctance are concerns on the regressive impacts of environmental taxes. We argue that policy can hedge against these concerns by means of revenue recycling. More specifically, we assess the impacts of a green tax reform where additional revenues are redistributed lump-sum to Spanish households on an equal-per-capita basis. Based on quantitative evidence from coupled microsimulation and computable equilibrium analyses we find that such a green tax reform leads to a substantial reduction in harmful emissions while having a progressive impact.
{"title":"Greener and Fairer: A Progressive Environmental Tax Reform for Spain","authors":"Christoph Böhringer, X. García-Muros, M. González‐Eguino","doi":"10.5547/2160-5890.8.2.CBOH","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.CBOH","url":null,"abstract":"Environmental externalities call for the use of environmental taxes to get prices right and thereby reduce environmental pressures. To date, however, the Spanish government makes only limited use of environmental taxes. One major reason for the policy reluctance are concerns on the regressive impacts of environmental taxes. We argue that policy can hedge against these concerns by means of revenue recycling. More specifically, we assess the impacts of a green tax reform where additional revenues are redistributed lump-sum to Spanish households on an equal-per-capita basis. Based on quantitative evidence from coupled microsimulation and computable equilibrium analyses we find that such a green tax reform leads to a substantial reduction in harmful emissions while having a progressive impact.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43773135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-01DOI: 10.5547/2160-5890.8.2.rcai
Robert D. Cairns, James L. Smith
The green paradox is an effect by which an increasing tax per unit on oil production, aimed at tracking damages from CO2 emissions, induces an increase in world production and a decrease in price in the near term. The increase is a rational response in a Hotelling exhaustible-resource model. We simulate the decisions of a price-taking producer in response to a tax of various shapes. In contrast to a Hotelling model, our extraction technology involves irreversible, lumpy investments in exploration and development. In addition, we assume output from a developed reserve is subject to natural decline at a rate that is determined by the sunk development investment and the geology of the reserve. Decisions are far more complicated, and results far subtler, than in the Hotelling framework. Given a price path, we show that almost any form of tax causes a reduction in the level of development and initial production, thereby contradicting the hypothesis of the green paradox.
{"title":"The Green Paradox, A Hotelling Cul de Sac","authors":"Robert D. Cairns, James L. Smith","doi":"10.5547/2160-5890.8.2.rcai","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.rcai","url":null,"abstract":"The green paradox is an effect by which an increasing tax per unit on oil production, aimed at tracking damages from CO2 emissions, induces an increase in world production and a decrease in price in the near term. The increase is a rational response in a Hotelling exhaustible-resource model. We simulate the decisions of a price-taking producer in response to a tax of various shapes. In contrast to a Hotelling model, our extraction technology involves irreversible, lumpy investments in exploration and development. In addition, we assume output from a developed reserve is subject to natural decline at a rate that is determined by the sunk development investment and the geology of the reserve. Decisions are far more complicated, and results far subtler, than in the Hotelling framework. Given a price path, we show that almost any form of tax causes a reduction in the level of development and initial production, thereby contradicting the hypothesis of the green paradox.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44379274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-01DOI: 10.5547/2160-5890.8.2.ahel
A. Held, M. Ragwitz, P. González, G. Resch, C. Klessmann, Arndt Hassel, Milan Elkerbout, James Rawlins
{"title":"Do Almost Mature Renewable Energy Technologies Still Need Dedicated Support Towards 2030?","authors":"A. Held, M. Ragwitz, P. González, G. Resch, C. Klessmann, Arndt Hassel, Milan Elkerbout, James Rawlins","doi":"10.5547/2160-5890.8.2.ahel","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.ahel","url":null,"abstract":"","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43107787","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-01DOI: 10.5547/2160-5890.8.2.cpen
Cristina Peñasco, Desiderio Romero-Jordán, P. Río
{"title":"The Impact of Policy on the Efficiency of Solar Energy Plants in Spain: A Production-Frontier Analysis","authors":"Cristina Peñasco, Desiderio Romero-Jordán, P. Río","doi":"10.5547/2160-5890.8.2.cpen","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.cpen","url":null,"abstract":"","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48461465","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-22DOI: 10.5547/2160-5890.10.1.skul
S. Kulakov, F. Ziel
In this paper we study the impact of errors in wind and solar power forecasts on intraday electricity prices. We develop a novel econometric model which is based on day-ahead wholesale auction curves data and errors in wind and solar power forecasts. The model shifts day-ahead supply curves to calculate intraday prices. We apply our model to the German EPEX SPOT SE data. Our model outperforms both linear and non-linear benchmarks. Our study allows us to conclude that errors in renewable energy forecasts exert a non-linear impact on intraday prices. We demonstrate that additional wind and solar power capacities induce non-linear changes in the intraday price volatility. Finally, we comment on economical and policy implications of our findings.
{"title":"The Impact of Renewable Energy Forecasts on Intraday Electricity Prices","authors":"S. Kulakov, F. Ziel","doi":"10.5547/2160-5890.10.1.skul","DOIUrl":"https://doi.org/10.5547/2160-5890.10.1.skul","url":null,"abstract":"In this paper we study the impact of errors in wind and solar power forecasts on intraday electricity prices. We develop a novel econometric model which is based on day-ahead wholesale auction curves data and errors in wind and solar power forecasts. The model shifts day-ahead supply curves to calculate intraday prices. We apply our model to the German EPEX SPOT SE data. Our model outperforms both linear and non-linear benchmarks. Our study allows us to conclude that errors in renewable energy forecasts exert a non-linear impact on intraday prices. We demonstrate that additional wind and solar power capacities induce non-linear changes in the intraday price volatility. Finally, we comment on economical and policy implications of our findings.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43105746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-01-05DOI: 10.5547/2160-5890.8.2.TJAM
T. Jamasb, Manuel Llorca
Energy Systems Integration (ESI) is an emerging paradigm emanating from a whole system perspective of the energy sector. It is based on a holistic view in which the main energy carriers are integrated to achieve horizontal synergies and efficiencies at all levels. The energy system may in turn integrate with other infrastructure sectors such as water, transport, and telecommunications to meet the demand for a broad range of energy and essential services. It also implies that energy security, sustainability, and equity objectives can be balanced more effectively. There is already progress in the technical aspects of ESI. However, such systems require not only physical solutions but they also need economic, regulatory, and policy frameworks to ensure efficient performance over time. Thus, it is important to better understand the economic features of integrated energy systems. To our knowledge this aspect is barely addressed in the literature on ESI. This paper does not attempt to survey the technical literature on the topic but to describe some of its relevant economic features. We discuss selected aspects that relate to industrial organisation, regulation, business economics, and technology. Finally, we offer some early considerations and policy recommendations.
{"title":"Energy Systems Integration: Economics of a New Paradigm","authors":"T. Jamasb, Manuel Llorca","doi":"10.5547/2160-5890.8.2.TJAM","DOIUrl":"https://doi.org/10.5547/2160-5890.8.2.TJAM","url":null,"abstract":"Energy Systems Integration (ESI) is an emerging paradigm emanating from a whole system perspective of the energy sector. It is based on a holistic view in which the main energy carriers are integrated to achieve horizontal synergies and efficiencies at all levels. The energy system may in turn integrate with other infrastructure sectors such as water, transport, and telecommunications to meet the demand for a broad range of energy and essential services. It also implies that energy security, sustainability, and equity objectives can be balanced more effectively. There is already progress in the technical aspects of ESI. However, such systems require not only physical solutions but they also need economic, regulatory, and policy frameworks to ensure efficient performance over time. Thus, it is important to better understand the economic features of integrated energy systems. To our knowledge this aspect is barely addressed in the literature on ESI. This paper does not attempt to survey the technical literature on the topic but to describe some of its relevant economic features. We discuss selected aspects that relate to industrial organisation, regulation, business economics, and technology. Finally, we offer some early considerations and policy recommendations.","PeriodicalId":45808,"journal":{"name":"Economics of Energy & Environmental Policy","volume":null,"pages":null},"PeriodicalIF":1.9,"publicationDate":"2019-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47844466","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"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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