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on Energy Economics |
| By: | Marianna O'Gorman (Centre for Climate Economics and Policy, Crawford School of Public Policy, The Australian National University); Frank Jotzo (Crawford School of Public Policy, The Australian National University) |
| Abstract: | Australia's carbon price has been in operation for two years. The electricity sector accounts for the majority of emissions covered under the scheme. This paper examines the impact of the carbon price on the electricity sector between 1 July 2012 and 30 June 2014, focusing on the National Electricity Market (NEM). Over this period, electricity demand in the NEM declined by 3.8 per cent, the emissions intensity of electricity supply by 4.6 per cent, and overall emissions by 8.2 per cent, compared to the two-year period before the carbon price. We detail observable changes in power demand and supply mix, and estimate the quantitative effect of the effect of the carbon price. We estimate that the carbon price led to an average 10 per cent increase in nominal retail household electricity prices, an average 15 per cent increase in industrial electricity prices and a 59 per cent increase in wholesale (spot) electricity prices. It is likely that in response, households, businesses and the industrial sector reduced their electricity use. We estimate the demand reduction attributable to the carbon price at 2.5 to 4.2 TWh per year, about 1.3 to 2.3 per cent of total electricity demand in the NEM. The carbon price markedly changed relative costs between different types of power plants. Emissions-intensive brown coal and black coal generators reduced output and 4GW of emissions-intensive generation capacity was taken offline. We estimate that these shifts in the supply mix resulted in a 16 to 28kg CO2/MWh reduction in the emissions intensity of power supply in the NEM, a reduction between 1.8 and 3.3 per cent. The combined impact attributable to the carbon price is estimated as a reduction of between 5 and 8 million tonnes of CO2 emissions (3.2 to 5 per cent) in 2012/13 and between 6 and 9 million tonnes (3.5 to 5.6 per cent) in 2013/14, and between 11 and 17 million tonnes cumulatively. There are fundamental difficulties in attributing observed changes in demand and supply to specific causes, especially over the short term, and in this light we use conservative parameters in the estimation of the effect of the carbon price. We conclude that the carbon price has worked as expected in terms of its short-term impacts. However, its effect on investment in power generation assets has probably been limited, because of policy uncertainty about the continuation of the carbon pricing mechanism. For emissions pricing to have its full effect, a stable, long-term policy framework is needed. |
| Keywords: | emissions pricing, Australia, electricity supply and demand, ex-post evaluation |
| JEL: | Q58 Q48 Q41 Q28 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1411&r=ene |
| By: | Carolyn Fischer (Resources for the Future, Washington DC, Gothenburg University and CESifo Research Network, München); Richard G. Newell (Duke University and National Bureau of Economic Research, Cambridge MA); Louis Preonas (Resources for the Future, Washington DC and University of California, Berkeley) |
| Abstract: | Myriad policy measures aim to reduce greenhouse gas emissions from the electricity sector, promote generation from renewable sources, and encourage energy conservation. To what extent do innovation and energy efficiency (EE) market failures justify additional interventions when a carbon price is in place? We extend the model of Fischer and Newell (2008) with advanced and conventional renewable energy technologies and short and long-run EE investments. We incorporate both knowledge spillovers and imperfections in the demand for energy efficiency. We conclude that some technology policies, particularly correcting R&D market failures, can be useful complements to emissions pricing, but ambitious renewable targets or subsidies seem unlikely to enhance welfare when placed alongside sufficient emissions pricing. The desirability of stringent EE policies is highly sensitive to the degree of undervaluation of EE by consumers, which also has implications for policies that tend to lower electricity prices Even with multiple market failures, emissions pricing remains the single most cost-effective option for reducing emissions |
| Keywords: | Climate Change, Cap-and-Trade, Renewable Energy, Portfolio Standards, Subsidies, Spillovers, Energy Efficiency, Electricity |
| JEL: | Q42 Q52 Q55 Q58 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.67&r=ene |
| By: | ZhongXiang Zhang (Distinguished University Professor and Chairman, School of Economics, Fudan University, Shanghai, China) |
| Abstract: | China has gradually recognized that the conventional path of encouraging economic growth at the expense of the environment cannot be sustained. It has to be changed. This article focuses on China’s efforts towards energy conservation and environmental quality. The article discusses a variety of programs, prices, market-based instruments, and other economic and industrial policies and measures targeted for energy saving and pollution cutting, and the associated implementation and reliability issues. The article ends with some concluding remarks and recommendations. |
| Keywords: | Energy Saving; Environmental Quality, Low-Carbon Development, Power Generation, Energy Prices, Market-Based Instruments, Economic Policies, Industrial Policies, Resource Taxes, Implementation and Reliability, China |
| JEL: | H23 H71 O13 O53 P28 Q43 Q48 Q52 Q53 Q54 Q56 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.60&r=ene |
| By: | Munasib, Abdul; Rickman, Dan S. |
| Abstract: | The dramatic increase in oil and gas production from shale formations has led to intense interest in its impact on local area economies. Exploration, drilling and extraction are associated with direct increases in employment and income in the energy industry, but little is known about the impacts on other parts of local economies. Increased energy sector employment and income can have positive spillover effects through increased purchases of intermediate goods and induced local spending. Negative spillover effects can occur through rising local factor and goods prices and adverse effects on the local area quality of life. Therefore, this paper examines the net economic impacts of oil and gas production from shale formations for key shale oil and gas producing areas in Arkansas, North Dakota and Pennsylvania. The synthetic control method (Abadie and Gardeazabal 2003; Abadie et al., 2010) is used to establish a baseline projection for the local economies in the absence of increased energy development, allowing for estimation of the net regional economic effects of increased shale oil and gas production. |
| Keywords: | Shale gas; Shale oil; Synthetic control method |
| JEL: | Q33 R11 |
| Date: | 2014–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57681&r=ene |
| By: | Casimir Lorenz; Clemens Gerbaulet |
| Abstract: | The European electricity system is undergoing significant changes, not only with respect to developments in generation and networks but also the arrangements for the operation of the system. These are specified in the Network Codes endorsed by regulators, network operators and the European Commission with the objective to create an \Internal Energy Market". In 2013, European network operators formulated the Network Code on Electricity Balancing (NC EB) which foresees arrangements to foster cross-border exchange of balancing services with the objective to lower overall costs and to increase social welfare. Assuming that Switzerland adopts the \Electricity Agreement" which would make EU Electricity rulings binding also in Switzerland, we perform an quantitative analysis of the region consisting of Switzerland, Austria, and Germany. To conduct our analysis, we use an electricity market model with a detailed representation of power plants, scheduled power withdrawals and localized imbalances leading to the need to reserve balancing capacity and activate balancing energy. We consider different levels of integration, as outlined in the NC EB. Our results show that coordinated procurement and activation of balancing services lead to cost decreases, but at the same time distributional effects, which might need to be compensated are incurred. |
| Keywords: | balancing energy markets, regional cooperation, network code electricity balancing |
| JEL: | C61 L94 Q40 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1400&r=ene |
| By: | Luciano de Castro; Shmuel Oren; Alvaro Riascos; Miguel Bernal |
| Abstract: | This paper evaluates the impact of Resolution CREG 051 on the performance of the electricity markets in Colombia. We found out that productive efficiency has improved since the introduction of the Resolution, that is, the total costs of producing electricity have been reduced. This shows a positive impact of the Resolution. On the other hand, we also found that mark-ups and forward energy prices (from bilateral contracts) have increased since 2009, suggesting that there was an increase in the exercise of market power by producers. From the two previous points, we conclude that, although the productive efficiency has increased, the larger share of the efficiency gains were appropriated by the energy producers, rather than passed on to consumers. |
| Keywords: | Energy markets, auctions, centralized unit commitment. |
| JEL: | D22 D44 L94 Q41 |
| Date: | 2014–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:col:000094:011932&r=ene |
| By: | Jonas Egerer; Wolf-Peter Schill |
| Abstract: | We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including gas-fired power plants, pumped hydro storage, and transmission lines. We find that geographically optimized power plant investments dominate in the reference scenarios for 2024 and 2034. In scenarios with decreasedrenewable curtailment, storage and transmission requirements significantly increase. In an alternative scenario with larger investments into storage, system costs are only slightly higher compared to the reference; thus, considering potential system values of flexible pumped hydro storage facilities that are not included in the optimization, a moderate expansion of storage capacities appears to be a no-regret strategy from a system perspective. Additional transmission and storage investments may not only foster renewable integration, but also increase the utilization of emission-intensive plants. A comparison of results for 2024 and 2034 indicates that this is only a temporary effect. In the long run, infrastructure investments gain importance in the context of an ongoing energy transition from coal to renewables. Because of long lead times, planning and administrative procedures for large-scale projects should start early. |
| Keywords: | German energy transformation, integrated planning, renewable integration, transmission, storage |
| JEL: | C61 H54 L94 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1402&r=ene |
| By: | Vipin Arora; Yiyong Cai |
| Abstract: | We illustrate the importance of disaggregating electricity generation when considering responses to environmental policies. We begin by reviewing various approaches to electric sector modelling in Computable General Equilibrium (CGE) models, and then clarify and expand upon the structure and calibration of the “technology bundle” approach. We also simulate the proposed U.S. Clear Power Plan and show how a disaggregate electricity sector can change results. Our simulations indicate that both the ability to switch between generation technologies and the manner of aggregation in electricity production are important for quantifying the economic costs of the plan. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2014-54&r=ene |
| By: | Stefan Boeters |
| Abstract: | Economic thought on climate policy as an instance of environmental regulation is strongly influenced by the principle of a uniform carbon price. Economists acknowledge that this principle breaks down in a “second-best†world with other distortions, such as taxes and market power in domestic and international markets. However, systematic analysis of this point in the economic climate policy literature is scarce. In the present paper, a computable general equilibrium (CGE) set-up is chosen in order to examine what pattern of differentiated carbon prices emerges as optimal in a second-best world. The CGE model WorldScan, which is considered to be representative of the class of models routinely used for numerical climate policy analysis, produces three main results: First, the optimal pattern of carbon prices is highly differentiated, ranging from almost prohibitive taxes to high subsidies (with a range of more than 1700 euros per ton of CO2). Second, the welfare gain from switching from a uniform price to optimally differentiated prices is enormous, equivalent to a 27 % emission reduction for free. Third, the most important drivers of carbon price differentiation are market power in export markets as well as taxes on consumption, intermediate inputs and domestic output. This shows that carbon price differentiation cannot be dismissed as a policy option lightly. However, before translating these findings into concrete policy advice, the relevant features of modelling pre-existing distortions in CGE models need close revision. |
| JEL: | Q42 Q54 H21 H23 D58 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:283&r=ene |
| By: | Jessica F. Green (Case Western Reserve University, USA); Thomas Sterner (Environmental Defense Fund and University of Gothenburg, Sweden); Gernot Wagner (Environmental Defense Fund and Columbia University’s School of International and Public Affairs, USA) |
| Abstract: | After twenty years of global negotiations, the world is still far from a comprehensive climate agreement. The ‘top-down’ approach embodied by the Kyoto Protocol has all but stalled, chiefly due to disagreements over levels of ambition and objections to financial transfers. To avoid those problems, many have shifted their focus on bottom-up ‘linkage’ of regional, national, and sub-national cap-and-trade systems. Decentralized architecture has its appeals, but we argue that linkage among carbon markets ultimately faces the same obstacles that are at the heart of global climate negotiations. Linkage can potentially reduce overall costs of tackling climate change by leveraging the differences in the marginal costs of emissions reductions across nations. However, as incomes, ideologies and other conditions diverge—and, thus, potential economic gains from linkage increase—political obstacles to linkage grow. We identify four obstacles to successful linkage: potential for gaming of targets; objections to financial transfers; the difficulty of close regulatory coordination; and incompatibility with other domestic policy objectives. Linkage, thus, may be an important political instrument and learning process but it provides no end run around international “global warming gridlock” (Victor 2011). A functioning global climate policy architecture still requires close international coordination with a balance of ‘bottom-up’ and ‘top-down’ elements. Only with this realization—and by employing a gradual process toward full linkage—can early carbon market linkages help facilitate a path towards a successful global climate architecture. |
| Keywords: | Climate Change, Global Warming, Cap and Trade, Carbon Tax, Linkage, Climate Finance, Political Economy, Kyoto, Copenhagen, Paris |
| JEL: | Q5 Q54 Q58 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.64&r=ene |
| By: | Schlomann, Barbara; Reuter, Matthias; Lapillonne, Bruno; Pollier, Karine; Rosenow, Jan |
| Abstract: | The increasing number of energy and climate targets both at national and international level induces a rising demand for regular monitoring. In this paper, we analyse the possibilities and limits of using energy efficiency indicators as a tool for monitoring these targets. We refer to the energy efficiency targets of the German Energiewende and calculate and discuss several energy efficiency indicators for Germany both at the level of the overall economy and the main energy consumption sectors. We make use of the energy efficiency indicator toolbox that we have developed within the ODYSSEE database in recent years and find that there is still a considerable gap to close to achieve the overall energy efficiency targets in Germany by 2020. We also show that progress in energy efficiency slowed down between 2008 and 2012, i.e. compared to the base year of most of the German energy efficiency targets and find that energy efficiency progress in the industrial sector during the last decade has been especially slow. We conclude that improvements in energy efficiency have to speed up considerably in order to achieve the targets for 2020. Although the use of energy efficiency indicators is limited by data constraints and some methodological problems, these indicators give a deep insight into the factors determining energy consumption and can therefore complement the official monitoring process of the German Energiewende which only relies on highly aggregated indicators for energy efficiency. -- |
| Keywords: | energy efficiency targets,target monitoring,energy efficiency indicators,decomposition analysis,German "Energiewende" |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s102014&r=ene |
| By: | James D. Hamilton |
| Abstract: | This year the oil industry celebrated its 155th birthday, continuing a rich history of booms, busts and dramatic technological changes. Many old hands in the oil patch may view recent developments as a continuation of the same old story, wondering if the high prices of the last decade will prove to be another transient cycle with which technological advances will again eventually catch up. But there have been some dramatic changes over the last decade that could mark a major turning point in the history of the world’s use of this key energy source. In this article I review five of the ways in which the world of energy may have changed forever. |
| JEL: | Q41 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20355&r=ene |
| By: | Mák, Fruzsina |
| Abstract: | The correct modelling of long- and short-term seasonality is a very interesting issue. The choice between the deterministic and stochastic modelling of trend and seasonality and their implications are as relevant as the case of deterministic and stochastic trends itself. The study considers the special case when the stochastic trend and seasonality do not evolve independently and the usual differencing filters do not apply. The results are applied to the day-ahead (spot) trading data of some main European energy exchanges (power and natural gas). |
| Keywords: | unit root, seasonality, energy exchange |
| JEL: | C22 Q41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cvh:coecwp:2014/09&r=ene |
| By: | Pollmann, Olaf; Podruzsik, Szilárd; Fehér, Orsolya |
| Abstract: | Current energy systems are in most instances not fully working sustainably. The provision and use of energy only consider limited resources, risk potential or financial constraints on a limited scale. Furthermore, the knowledge and benefits are only available for a minor group of the population or are outright neglected. The availability of different resources for energy purposes determines economic development, as well as the status of the society and the environment. The access to energy grids has an impact on socio-economic living standards of communities. This not fully developed system is causing climate change with all its related outcomes. This investigation takes into consideration different views on renewable energy systems — such as international discussions about biomass use for energy production, “fuel versus food”, biogas use — and attempts to compare major prospects of social acceptance of renewable energy in Europe and Africa. Can all obstacles to the use of renewable energy be so profound that the overall strategy of reducing anthropogenic causes of climate change be seriously affected? |
| Keywords: | renewable energy, energy production, future technology, society |
| JEL: | D71 O13 Q01 R11 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cvh:coecwp:2014/07&r=ene |
| By: | Shakeel, Muhammad; Iqbal, Mazhar; Majeed, Muhammad Tariq |
| Abstract: | Using panel co-integration approach over the period 1980-2009 for South Asian economies, this study investigates the dynamic linkages between energy consumption, trade and GDP. The results show that, in the short run, feedback relationship holds between energy consumption and GDP and between energy consumption and exports. In the long run, the feedback relation holds between energy and GDP while unidirectional causality holds from export to energy. Thus, feedback hypothesis between energy and GDP holds in the short as well as in the long run. The feedback relationship between trade and energy consumption suggests that any shortage of energy supply will lessen the trade and this reductions in trade will lessen the benefits of trade in the region since results have also shown that reduction in export can impede GDP growth. |
| Keywords: | Energy Consumption; Growth; Trade; Panel Co-Integration |
| JEL: | F14 F21 Q40 |
| Date: | 2013–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57677&r=ene |
| By: | Raza, Syed Ali; Shahbaz, Muhammad |
| Abstract: | This study investigates the relationship between energy consumption and trade performance in Pakistan by using the annual time series data from the period of 1973-2011. The cointegration results confirm the valid long run relationship between energy consumption and trade performance. Our results indicate that gross domestic product, exports and imports have positive impact on energy consumption. The findings of Generalized forecast error variance decomposition method under vector autoregressive (VAR) system suggest the bidirectional causal relationship of gross domestic product, exports and imports with energy consumption. This confirms the presence of feedback hypothesis in Pakistan. We note that energy conservation policies will reduce the trade performance which leads to decline in economic growth in Pakistan. The present study may guide policy makers in formulating a conclusive energy and trade policies for sustainable growth for long span of time. |
| Keywords: | Energy, Trade, Growth, Pakistan |
| JEL: | C22 F1 F43 Q43 |
| Date: | 2014–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57775&r=ene |
| By: | John C. V. Pezzey (Fenner School of Environment and Society, The Australian National University); Paul J. Burke (Crawford School of Public Policy, The Australian National University) |
| Abstract: | We construct a hybrid, economic indicator of the sustainability of global well-being, which is more inclusive than existing indicators and incorporates an environmentally pessimistic, physical constraint on global warming. Our methodology extends the World BankÕs Adjusted Net Saving (ANS) indicator to include the cost of population growth, the benefit of technical progress, and a much higher, precautionary cost of current CO2 emissions. Future warming damage is so highly unknowable that valuing emissions directly is rather arbitrary, so we use a novel, inductive approach: we modify damage and climate parameters in the deterministic DICE climate-economy model so it becomes economically optimal to control emissions in a way likely to limit warming to an agreed target, here 2¡C. If future emissions are optimally controlled, our ANS then suggests that current global well-being is sustainable. But if emissions remain uncontrolled, our base-case ANS is negative now and our corresponding, modified DICE model has an unsustained development path, with well-being peaking in 2065. Current ANS on an uncontrolled path may thus be a useful heuristic indicator of future unsustainability. Our inductive method might allow ANS to include other very hard-to-value, environmental threats to global sustainability, like biodiversity loss and nitrogen pollution. |
| Keywords: | global sustainability, optimism and pessimism, precautionary valuation of CO2 emissions, unknowability and induction, population growth, technical progress |
| JEL: | Q56 Q01 Q57 Q51 Q54 Q55 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1410&r=ene |
| By: | Baptiste Perrissin Fabert (Centre International de Recherche sur l'Environnement et le Développement (CIRED)); Etienne Espagne (CIRED); Antonin Pottier (CIRED); Patrice Dumas (Centre International de Recherche Agronomique pour le Développement) |
| Abstract: | This paper aims at providing a consistent framework to appraise alternative modeling choices that have driven the so-called “when flexibility" controversy since the early 1990s dealing with the optimal timing of mitigation efforts and the Social Cost of Carbon (SCC). The literature has emphasized the critical impact of modeling structures on the optimal climate policy. But, to our knowledge, there has been no contribution trying to estimate the comparative impact of modeling structures within a unified framework. In this paper, we use the Integrated Assessment Model (IAM) RESPONSE to bridge this gap and investigate the structural modeling drivers of differences in climate policy recommendations. RESPONSE is both sufficiently compact to be easily tractable and detailed enough to capture a wide array of modeling choices. Here, we restrict the analysis to the following emblematic modeling choices: the forms of the damage function (quadratic vs. sigmoid) and the abatement cost (with or without inertia), the treatment of uncertainty, and the decision framework (one-shot vs. sequential). We define an original methodology based on an equivalence criterion to carry out a sensitivity analysis over modeling structures in order to estimate their relative impact on two output variables: the optimal SCC and abatement trajectories. This allows us to exhibit three key findings: (i) IAMs with a quadratic damage function are insensitive to changes of other features of the modeling structure, (ii) IAMs involving a non-convex damage function entail contrasting climate strategies, (iii) Precautionary behaviours can only come up in IAMs with non-convexities in damages. |
| Keywords: | Integrated Assessment Models, Mitigation |
| JEL: | Q5 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.58&r=ene |
| By: | Stuart McDonald (School of Economics, The Universty of Queensland); Joanna Poyago-Theotoky (School of Economics, La Trobe University Rimini Centre for Economic Analysis (RCEA)) |
| Abstract: | We examine the impact of an optimal emissions tax on research and development of emission reducing green technology (E-R&D) in the presence of R&D spillovers. We show that the size and effectiveness of the optimal emissions tax depends on the type of the R&D spillover: input or output spillover. In the case of R&D input spillovers (where only knowledge spillovers are accounted for), the optimal emissions tax required to stimulate R&D is always higher than when there is an R&D output spillover (where abatement and knowledge spillovers exist simultaneously). We also find that optimal emissions taxation and cooperative R&D complement each other when R&D spillovers are small, leading to lower emissions. |
| Keywords: | Environmental R&D, Green Technology, R&D Spillover, Emissions Tax |
| JEL: | H23 L11 Q55 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.59&r=ene |
| By: | Chang, Chia-Lin; Ke, Yu-Pei |
| Abstract: | This paper examines the relationships between flows and returns for five Exchange Traded Funds (ETF) in the U.S. energy sector. Four alternative hypotheses are tested, including the price pressure hypothesis, information (or price release) hypothesis, feedback trading hypothesis, and smoothing hypothesis. The five ETF are the Energy Select Sector SPDR Fund (XLE), iShares U.S. Energy ETF (IYE), iShares Global Energy ETF (IXC), Vanguard Energy ETF (VDE), and PowerShares Dynamic Energy Exploration & Production Portfolio (PXE). A Vector Autoregressive (VAR) model is used to analyze the relationships between energy flows and returns. The empirical results show that energy returns and subsequent energy ETF flows have a negative relationship, thereby supporting the smoothing hypothesis. Moreover, the smoothing effect exists for XLE and IYE during the global financial crisis. Regardless of whether the whole sample period or the sub-samples before, during and after the global financial crisis are used, no evidence is found in support of the price pressure hypothesis, information hypothesis, or feedback trading hypothesis. |
| Keywords: | Energy Exchange Traded Funds (ETF), Price pressure hypothesis, Information hypothesis, Feedback trading hypothesis, Smoothing hypothesis. |
| JEL: | C32 G14 G15 |
| Date: | 2014–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57625&r=ene |
| By: | Fuady, Ahmad Helmy |
| Abstract: | This paper analyses the role of foreign aid to assist development in two oil-rich countries: Indonesia and Nigeria. This paper seeks to understand the way foreign aid provided assistance to transform Indonesia from a .fragile. state in the 1960s into one |
| Keywords: | aid, fragile state, policy, oil, Indonesia, Nigeria |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-023&r=ene |
| By: | Roberto Fazioli |
| Abstract: | The effects of a complex liberalisation process in local gas distribution are examined in this paper. The aim of this analysis is to emphasise the multidimensional aspects of such a reform in gas market regulation at local level. First of all, Local Public Finance will bear strong losses due to minimisation of local public networks' remuneration and as a consequences of potential losses in local public small/medium firms. Also effective competition will be very feeble, due to strong financial barriers to entry the market. An oligopolistic scenario is probable, if not almost sure, for Gas Distribution Industry in the next few years, as the announced reform will be implemented without any correction in Public Regulation. |
| Keywords: | liberalisation; asset management; public infrastructures; energy distribution; public local finance; redistributive effects |
| JEL: | K23 L43 L95 H54 |
| Date: | 2014–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:2014093&r=ene |
| By: | Javier Orlando Pantoja Robayo; Kelly Maradey Angarita; Alfredo Trespalacios Carrasquilla |
| Abstract: | Los mercados de contratos futuros tienen como fortaleza la eliminación del riesgo de contraparte, para esto es importante el nivel de garantías que las cámaras de riesgo exigen a los participantes del mercado -- Estas garantías deben cubrir las variaciones extremas del precio del producto, pero no deben ser excesivas porque reducen la cantidad de eventuales participantes en el mercado -- En este trabajo se propone una metodología alternativa para la estimación de las garantías del mercado de futuros en energía eléctrica, como caso de estudio se presenta el mercado colombiano -- Se realiza simulación de Montecarlo para evaluar las variaciones diarias que puede tener el precio de los futuros y se estiman medidas de riesgo con diferentes escenarios de Niño, días de tenencia y vencimientos -- Se encuentra que la nueva metodología propuesta modifica sustancialmente los niveles de garantía, frente a la metodología actual de cálculo, adicionalmente, se enuncian los factores que alteran su definición |
| Keywords: | electricity futures market, electricity spot market, guarantees, Value at Rissk, Conditional Value at Risk |
| JEL: | G1 L1 |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:col:000122:011996&r=ene |
| By: | Giovanni Agostinis |
| Abstract: | This paper seeks to contribute to the study of contemporary South American regionalism focusing on the emergence and development of sectoral cooperation and policy coordination within the Union of South American Countries (UNASUR). To do so the paper analyzes two policy areas ?transport infrastructure and energy integration? from the inception of cooperation in 2000 until 2014, addressing two questions: (i) why regional cooperation has emerged despite the absence of economic interdependence and market-driven demand for economic integration, and (ii) why policy outcomes are evident in some areas (i.e., transport infrastructure) while limited in others (i.e., energy). Bringing together insights from rationalist and constructivist approaches in IR and IPE, it is argued that the emergence of regional cooperation as well as the sharp variation in policy outcomes between areas can be largely explained by the articulation of a regional leadership and its effect on the convergence of state preferences. The paper shows how the Brazilian leadership, incentivized by the effects of the US-led FTAA negotiations and the financial crises that hit the region in the late 1990s, made state preferences converge towards a regionalist project encompassing all South American countries by making visible the mutual benefits of cooperation on transport infrastructure and energy. Furthermore, the paper illustrates how in spite of significant changes in South American states’ cooperation preferences the Brazilian leadership was able to adapt the cooperation process in the transport infrastructure sector to the new circumstances of regional politics permitting not only the institutionalization of sectoral cooperation, but also the implementation of several infrastructure transnational projects. In the case of energy, instead, the emergence of a second regional leadership project –pursued by Chávez’s Venezuela – and the deep divergence of state preferences led energy cooperation into a gridlock. |
| Date: | 2014–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:erp:euirsc:p0393&r=ene |
| By: | KOMORIYA Yoshimasa |
| Abstract: | We use an international oligopoly model to explore the effects of reductions in trade cost (non-tariff barrier) and travel cost on the domestic and foreign economies, when the choice of the foreign direct investment (FDI) production level is endogenous. In the case where the home firm produces in both countries, consumers invariably gain from the cost reductions, but the effects on producers are very complex. Using these findings, we discuss the importance of the movement of natural persons (MNP) agreement and its great potential in creating a free trade agreement (FTA) between the two countries. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14041&r=ene |
| By: | Feld, Lars P.; Fuest, Clemens; Haucap, Justus; Schweitzer, Heike; Wieland, Volker; Wigger, Berthold U. |
| Abstract: | Der Kronberger Kreis, wissenschaftlicher Beirat der Stiftung Marktwirtschaft, fordert einen energiepolitischen Neustart in Deutschland. Bei Fortführung des Status quo drohen ansonsten die drei energiepolitischen Oberziele - Umwelt- und Klimaschutz, Versorgungssicherheit sowie Kosteneffizienz - weit verfehlt zu werden. Damit aber wäre der deutsche Sonderweg in der Energiepolitik eher abschreckendes Beispiel als internationales Vorbild im Kampf gegen den Klimawandel. Als überlegenes klimapolitisches Instrument empfiehlt der Kronberger Kreis eine Stärkung und Ausweitung des internationalen CO2-Emissionshandels und die Abschaffung des EEG. Sollte die Politik dazu die Kraft nicht finden, müssen angesichts der systemimmanenten Mängel des EEG alternative, marktkonforme Reformen angegangen werden. Hierfür empfiehlt der Kronberger Kreis ein zertifikatebasiertes Grünstrom-Quotenmodell nach schwedischem Vorbild. Um effiziente Standortentscheidungen für Kraftwerke zu induzieren sowie einen effizienten Netzausbau zu befördern, sollten zudem geographisch differenzierte Preise im Stromgroßhandel oder aber geographisch differenzierte Netzentgelte auf der Erzeugerseite eingeführt werden. Aus heutiger Sicht nicht erforderlich ist hingegen die - immer wieder geforderte - Einführung eines Kapazitätsmechanismus für konventionelle Kraftwerke. -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:smwkro:58&r=ene |