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on Energy Economics |
| By: | Bruno Bosco; Lucia Parisio; Matteo Pelagatti; Fabio Baldi |
| Abstract: | This paper analyses the interdependencies existing in the European electricity prices. The results of a multivariate dynamic analysis of weekly median prices reveal the presence of strong integration (but not perfect integration) among the markets considered in the sample and the existence of a common trend among electricity prices and oil prices. This implies that there are no long-run arbitrage opportunities. The latter result appears to be relevant also in the context of the discussion of efficient hedging instruments to be used by medium-long term investors. |
| Keywords: | European electricity prices, Cointegration, Interdependencies, Equilibrium Correction model, Oil prices |
| JEL: | C32 D44 L94 Q40 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:mis:wpaper:20061001&r=ene |
| By: | Bask , Mikael (Bank of Finland Research); Liu , Tung (Department of Economics, Ball State University); Widerberg , Anna (Department of Economics) |
| Abstract: | The aim of this paper is to illustrate how the stability of a stochastic dynamic system is measured using the Lyapunov exponents. Specifically, we use a feedforward neural network to estimate these exponents as well as asymptotic results for this estimator to test for unstable (chaotic) dynamics. The data set used is spot electricity prices from the Nordic power exchange market. Nord Pool, and the dynamic system that generates these prices appears to be chaotic in one case. |
| Keywords: | feedforward neural network; Nord Pool; Lyapunov exponents; spot electricity prices; stochastic dynamic system |
| JEL: | C12 C14 C22 |
| Date: | 2006–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2006_009&r=ene |
| By: | Ho, Chun-Yu; Siu, Kam-Wing |
| Abstract: | Public debates on electricity policy in Hong Kong focus on the regulation regime but seldom discuss the macroeconomic impact. In this paper, we use the novel dataset on electricity consumption and report the following ndings: (1) there is a long run equilibrium relationship between real GDP and electricity consumption, (2) a one-way causal e¤ect exists from electricity consumption to real GDP, (3) a signi cant adjustment process occurs when equilibrium is interrupted, (4) there exists possible structural change in the relationship between electricity consumption and economic activities in 1990s. |
| Keywords: | Cointegration and error correction; electricity; Hong Kong. |
| JEL: | Q48 Q43 Q41 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:239&r=ene |
| By: | Jain, Varinder |
| Abstract: | The electricity subsidy distribution pattern needs to be scrutinised to assess whether the policy benefits small producers, a normative argument often made while granting any input subsidy. In Punjab, this policy is found to ignore equity considerations while granting non-discriminatory electricity subsidies to the agricultural sector. This study highlights the existence of disparities in the flow of electricity subsidy between the advanced and backward regions. While the medium and large farmers reap the major benefits of the subsidy, the poor small farmers, especially in the backward areas, remain excluded due to their non-possession of electricity connections. In a nutshell, this paper questions the justification for introducing such a policy and puts forward the case for user charges based on open access to electricity. |
| Keywords: | Political economy; Electricity Subsidy; Agriculture |
| JEL: | P26 H23 |
| Date: | 2006–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:240&r=ene |
| By: | Alessandro Sterlacchini |
| Abstract: | By using accounting data from the largest utility companies of Europe, this note illustrates the recent R&D performance in energy and telecommunication. Although not all the companies under consideration behaved symmetrically, most of them reduced substantially their R&D investment. Over the period 2000-05, their total R&D expenditures at current prices decreased by 33%, while their R&D intensity (on sales) diminished from 1.1 to 0.7%. In discussing the above findings, it is argued that a drop of this size is hardly justifiable and weakens the EU economy in a non-negligible manner. |
| Keywords: | R&D performance; energy and telecommunication utilities |
| JEL: | O32 O38 L50 L97 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:06-19&r=ene |
| By: | Felix Hoeffler (Max Planck Institute for Research on Collective Goods, Bonn); Tobias Wittmann (Technische Universität, Berlin) |
| Abstract: | Scarce interconnector capacities are a severe obstacle to transregional competition and a unified market for electricity in the European Union. However, physically the interconnectors are rarely used up to capacity. This is due to the fact that the current allocation schemes make only limited use of the fact that currents in opposing directions cancel out. We propose a "netting" auction mechanism which makes use of this and in which even small transmission capacities can generate large competitive pressure in adjacent markets. Netting increases the usage of capacity and reduces the auctioneer's incentive to withhold capacity from the auction. |
| Keywords: | Divisible good auctions, interconnector, electricity marktes, competition policy |
| JEL: | L94 D44 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2006_5&r=ene |
| By: | Felix Hoeffler (Max Planck Institute for Research on Collective Goods, Bonn); Madjid Kuebler (Team Consult, Berlin, Germany) |
| Abstract: | The seasonal demand for natural gas requires supply flexibility. This “swing” is now largely provided in northwestern Europe by indigenous production. Declining reserves will increase the dependency on imports from far-off sources, which are less flexible. Hence, flexibility must be provided by additional storage. We estimate that in 2030 (depending on the desired level of security of supply) between 11 and 37 billion cubic meter of working gas volume will be required, in addition to the existing 37 billion cubic meters. This estimation is based on production and consumption forecasts for natural gas and observations of the relationship between the supply and demand of gas and the supply and demand of flexibility in the period 1995-2004. Scenarios and Monte Carlo simulations are provided to check for the robustness of our results. We also briefly discuss policy implications for the regulation of third party access to storage facilities. |
| Keywords: | Natural gas, storage, swing, third-party access |
| JEL: | L98 L51 Q41 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2006_9&r=ene |
| By: | Gilbert E. Metcalf |
| Abstract: | On Aug. 8, 2005, President Bush signed the Energy Policy Act of 2005 (PL 109- 58). This was the first major piece of energy legislation enacted since 1992 following five years of Congressional efforts to pass energy legislation. Among other things, the law contains tax incentives worth over $14 billion between 2005 and 2015. These incentives represent both pre-existing initiatives that the law extends as well as new initiatives. In this paper I survey federal tax energy policy focusing both on programs that affect energy supply and demand. I briefly discuss the distributional and incentive impacts of many of these incentives. In particular, I make a rough calculation of the impact of tax incentives for domestic oil production on world oil supply and prices and find that the incentives for domestic production have negligible impact on world supply or prices despite the United States being the third largest oil producing country in the world. Finally, I present results from a model of electricity pricing to assess the impact of the federal tax incentives directed at electricity generation. I find that nuclear power and renewable electricity sources benefit substantially from accelerated depreciation and that the production and investment tax credits make clean coal technologies cost competitive with pulverized coal and wind and biomass cost competitive with natural gas. |
| JEL: | H20 Q48 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:tuf:tuftec:0612&r=ene |
| By: | Charles Raux (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Jean-Pierre Traisnel (AUS - Architecture, Urbanisme, Sociétés - [CNRS : UMR7136] - [Université Paris VIII Vincennes-Saint Denis][Université de Paris X - Nanterre][Université Paris XII Val de Marne][Université de Marne la Vallée] - [Ecole d'architecture Paris-Malaquais][Ecole d'architecture Paris-Belleville]); Jean-Pierre Nicolas (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Mindjid Maizia (AUS - Architecture, Urbanisme, Sociétés - [CNRS : UMR7136] - [Université Paris VIII Vincennes-Saint Denis][Université de Paris X - Nanterre][Université Paris XII Val de Marne][Université de Marne la Vallée] - [Ecole d'architecture Paris-Malaquais][Ecole d'architecture Paris-Belleville]); Karine Delvert (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]) |
| Abstract: | Ce rapport répond à un triple objectif :<br />- Situer à partir des statistiques nationales, les enjeux et ordres de grandeur en matière de consommations énergétiques et d'émissions concernant le transport et l'habitat<br />- Etablir une méthodologie de calcul des émissions liées au transport et à l'habitat<br />- Présenter les calculs d'émission effectués sur cette base.<br /><br />En matière de transport, le calcul des émissions repose sur l'utilisation de la méthodologie MEET appliquée aux déplacements recueillis lors de l'enquête nationale transports et communication (INSEE). Pour ce qui est du logement, on s'appuie sur les Comptes du logement et les bases de données du CEREN (structure de la consommation d'énergie des ménages). La part des innovations, des caractéristiques morphologiques et topologiques (compacité, contiguïté, maillage ou arborescence des réseaux, longueur des cheminements, etc.) dans l'efficacité énergétique globale de l'habitat, dans ses multiples fonctions, est relevée.<br /><br />Sur la base des données existantes, les bilans actuels de consommation d'énergie et d'émission liées aux déplacements d'une part à l'exploitation du logement (chauffage et autres usages) d'autre part, sont établis. Ces bilans peuvent être comparés selon un certain nombre de critères (variables liées à la localisation, variables socio-économiques). On élabore ainsi un budget énergie transport environnement logement (BETEL).<br /><br />Ce rapport est structuré en quatre parties. La première partie dresse un bilan rapide des consommations énergétiques et émissions globales liées aux déplacements à l'exploitation du bâti (chauffage et autres usages). Les deuxième et troisième parties présentent la méthodologie BETEL respectivement pour l'habitat et le transport. La quatrième partie illustre ces méthodologies en présentant les premiers résultats. |
| Keywords: | Bilan énergétique ; transport ; habitat ; environnement ; localisations ; ETHEL ; Action concertée énergie |
| Date: | 2006–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00101248_v1&r=ene |
| By: | Nicolas Morice (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Jean-Pierre Traisnel (AUS - Architecture, Urbanisme, Sociétés - [CNRS : UMR7136] - [Université Paris VIII Vincennes-Saint Denis][Université de Paris X - Nanterre][Université Paris XII Val de Marne][Université de Marne la Vallée] - [Ecole d'architecture Paris-Malaquais][Ecole d'architecture Paris-Belleville]); Karine Delvert (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Steve Macraigne (AUS - Architecture, Urbanisme, Sociétés - [CNRS : UMR7136] - [Université Paris VIII Vincennes-Saint Denis][Université de Paris X - Nanterre][Université Paris XII Val de Marne][Université de Marne la Vallée] - [Ecole d'architecture Paris-Malaquais][Ecole d'architecture Paris-Belleville]); Pascal Pochet (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Charles Raux (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]); Jean-Pierre Nicolas (LET - Laboratoire d'économie des transports - [CNRS : UMR5593] - [Université Lumière - Lyon II] - [Ecole Nationale des Travaux Publics de l'Etat]) |
| Abstract: | L'état de l'art prévu (tâche A.1.) du projet ETHEL(1) poursuit deux objectifs :<br />− dresser un bilan synthétique des connaissances acquises en matière de prospective dans les domaines de l'énergie, des transports, de l'habitat, de l'environnement et des localisations ;<br />− en déduire les principales hypothèses qui pourront être retenues lors de l'élaboration de scénarios prospectifs prévue au cours des étapes suivantes du projet ETHEL (activité C).<br />----------------------------------------------------<br /><br />(1) ETHEL est un projet intégré au programme d'action concertée énergie 2003 (CNRS – Ministère de la Recherche) sur lequel travaillent trois équipes : le LET, le LTMU et le CIRED. Le projet ETHEL a pour objectif l'analyse des déterminants de l'évolution des consommations énergétiques dans l'habitat et les transports en relation avec les formats d'habitat et la structuration de l'espace urbain. |
| Keywords: | Prospective ; énergie ; transport ; habitat ; environnement ; localisations ; ETHEL ; Action concertée energie |
| Date: | 2006–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00101186_v1&r=ene |
| By: | Marschinski, Robert; Lecocq, Franck |
| Abstract: | Among policy instruments to control future greenhouse gas emissions, well-calibrated general intensity targets are known to lead to lower uncertainty on the amount of abatement than emissions quotas (Jotzo and Pezzey 2004). The authors test whether this result holds in a broader framework, and whether it applies to other policy-relevant variables as well. To do so, they provide a general representation of the uncertainty on future GDP, future business-as-usual emissions, and future abatement costs. The authors derive the variances of four variables, namely (effective) emissions, abatement effort, marginal abatement costs, and total abatement costs over GDP under a quota, a linear (LIT) and a general intensity target (GIT)-where the emissions ceiling is a power-law function of GDP. They confirm that GITs can yield a lower variance than a quota for marginal costs, but find that this is not true for total costs over GDP. Using economic and emissions scenarios and forecast errors of past projections, the authors estimate ranges of values for key parameters in their model. They find that quotas dominate LITs over most of this range, that calibrating GITs over this wide range is difficult, and that GITs would yield only modest reductions in uncertainty relative to quotas. |
| Keywords: | Transport and Environment,Climate Change,Environment and Energy Efficiency,Economic Theory & Research,Energy and Environment |
| Date: | 2006–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4033&r=ene |
| By: | Golombek, Rolf (The Ragnar Frisch Centre for Economic Research); Hoel, Michael (Dept. of Economics, University of Oslo) |
| Abstract: | The Kyoto Agreement is the result of international negotiations over many years. However, because of a number of weaknesses, different sorts of climate agreement have been suggested: for example, coordinated R&D activities that reduce abatement costs for all firms. We will compare an agreement focusing only on emissions (a Kyoto type of agreement) with an agreement focusing only on technology, assuming that the costs of abatement are affected by R&D in all firms through technology spillovers. In an emissions agreement, emissions should be restricted to the extent that the carbon price exceeds the Pigovian level. For sufficiently low technology spillovers, an emissions agreement is more efficient than a technology agreement specifying an R&D subsidy to be imposed on all firms in all countries. The opposite may hold if technology spillovers are sufficiently large. Finally, an alternative technology agreement specifying R&D expenditure in each country is more efficient than an agreement specifying an R&D subsidy. |
| Keywords: | climate policy; international climate agreements; R&D policy; technology spillovers |
| JEL: | H23 O30 Q20 Q28 Q48 |
| Date: | 2006–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2006_021&r=ene |
| By: | Burtraw, Dallas (Resources for the Future); Palmer, Karen (Resources for the Future) |
| Abstract: | On July 20, 2006, in New York City, Resources for the Future convened a workshop of stakeholders and state officials engaged in the Regional Greenhouse Gas Initiative (RGGI) together with experts on various aspects of using auctions. The workshop provided technical assistance to states for the development of a plan to satisfy the requirement for an allocation of emissions allowances to benefit consumers or for strategic energy purposes. The workshop included an overview of auction theory, a panel on concerns of stakeholders about using an allowance auction in the RGGI, a panel on the motivations for and lessons from using auctions in other applications, and one on past experiences with auctions of emissions allowances. This workshop summary presents the main ideas presented by speakers and the audience. The summary concludes by drawing on the discussion to compile a suggested roadmap identifying steps for planners in moving toward implementation of the auction. |
| Keywords: | auction, allowances, emissions trading, climate |
| JEL: | D44 Q58 |
| Date: | 2006–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-06-45&r=ene |