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Firming Technologies to Reach 100% Renewable Energy Production in Australia’s National Electricity Market (NEM) Energy J. (IF 2.9) Pub Date : 2023-11-01 Joel Gilmore, Tim Nelson, and Tahlia Nolan
Abstract: Australia has committed to reducing its greenhouse gas emissions in a manner consistent with limiting anthropogenic climate change to no more than 2 degrees Celsius. One of the ways in which this commitment is being realised is through a shift towards variable renewable energy (VRE) within Australia’s National Electricity Market (NEM). Substituting existing dispatchable thermal plant with
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Carbon Emissions in the U.S.: Factor Decomposition and Cross-State Inequality Dynamics Energy J. (IF 2.9) Pub Date : 2023-11-01 Panos K. Pouliasis, Nikos C. Papapostolou, Michael N. Tamvakis, and Ioannis C. Moutzouris
Abstract: This paper examines the determinants of inequality in the distribution of CO2 emissions across U.S. regions. We implement a factorial decomposition of CO2 per capita based on extended Kaya factors, that is, carbon intensity of fossil fuel consumption, energy mix, energy intensity of GDP, economic growth in terms of labor productivity and employment rate. Results reveal that U.S. states display
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Competition and Competitors: Evidence from the Retail Fuel Market Energy J. (IF 2.9) Pub Date : 2023-11-01 Xulia González and María J. Moral
Abstract: Policy makers and antitrust authorities are concerned about the lack of competition in the fuel retail market and its impact on consumer prices. The aim of this article is to empirically evaluate the role of the intensity of competition and competitors' brand affiliation on retail fuel prices. To this end, we use a panel data set with detailed daily on nearly 8,500 gas stations and 2 million
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Assessing Improved Price Zones in Europe: Flow-Based Market Coupling in Central Western Europe in Focus Energy J. (IF 2.9) Pub Date : 2023-11-01 Tim Felling, Björn Felten, Paul Osinski, and Christoph Weber
Abstract: Theoretical papers have identified several sources of inefficiencies of flow-based market coupling (FBMC), the implicit congestion management method used to couple the Central Western European (CWE) electricity markets. These inefficiencies ultimately lead to welfare losses. In this paper, a large-scale model framework is introduced for FBMC assessments, focusing on modeling the capacity
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Systemic Risk in the Global Energy Sector: Structure, Determinants and Portfolio Management Implications Energy J. (IF 2.9) Pub Date : 2023-11-01 Syed Jawad Hussain Shahzad, Román Ferrer, Elie Bouri
Abstract: We examine the dynamics of tail dependence across returns of 105 global energy firms from 26 countries covering the regions of America, Asia Pacific and Europe. A partial correlation-based approach is used to quantify the dependence structure and level of systemic risk under relatively stable and extremely bearish and bullish market conditions. The dependence network of energy stock returns
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A Survey of Capacity Mechanisms: Lessons for the Swedish Electricity Market Energy J. (IF 2.9) Pub Date : 2023-11-01 Par Holmberg and Thomas Tangeras
Abstract: Many electricity markets use capacity mechanisms to support producers. Capacity payments can mitigate imperfections associated with "missing money" in the spot market and solve transitory capacity shortages caused by investment cycles, regulatory changes, or technology shifts. We discuss capacity mechanisms used in electricity markets around the world. We argue that correctly designed strategic
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Auctions for Renewables: Does the Choice of the Remuneration Scheme Matter? Energy J. (IF 2.9) Pub Date : 2023-11-01 Ali Darudi
Abstract: Auctions are increasingly used to support renewable energy sources (RES). The choice of the remuneration scheme is one of the major design challenges policymakers face. This paper analyzes the effects of remuneration schemes on RES auctions’ success in markets with imperfect competition. I develop a game-theoretical auction/operation framework to model the feedback effects between the spot
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Oil Market Stabilization: The Performance of OPEC and Its Allies Energy J. (IF 2.9) Pub Date : 2023-11-01 Hossa Almutairi, Axel Pierru, and James L. Smith
Abstract: We examine the influence of OPEC+ on the level and volatility of oil prices. By extending Pierru et al.'s (2018, 2020) modeling framework, we are able to distinguish OPEC's particular role and impact from that of its Allies—those countries who joined with OPEC at the end of 2016 in the attempt to stabilize the market. In addition to corroborating earlier results regarding the impact of OPEC's
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Oil Price Uncertainty and IPOs Energy J. (IF 2.9) Pub Date : 2023-11-01 Magnus Blomkvist, Nebojsa Dimic, and Milos Vulanovic
Abstract: We examine the impact of oil price uncertainty on IPO volume in the oil and gas sector. By using the implied volatility of oil options, a forward-looking uncertainty measure, we identify the effect of uncertainty on the going-public decision. Oil price uncertainty exhibits a strong negative relation to IPO volume. A one standard deviation decrease in the implied volatility results in a 29%
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The Effects of Fuel-Efficient Cookstoves on Fuel Use, Particulate Matter, and Cooking Practices: Results from a Randomized Trial in Rural Uganda Energy J. (IF 2.9) Pub Date : 2023-11-01 Theresa Beltramo, Garrick Blalock, Stephen Harrell, David I. Levine, and Andrew M. Simons
Abstract: Smoky cookfires contribute to global climate change and kill approximately four million people annually. While many studies have examined the effects of fuel-efficient cookstoves, this study does so while selling stoves at market prices. After introducing a fuel-efficient cookstove, fuelwood use and household air particulates declined by 12% and by smaller percentages after adjusting for
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Rethinking the Role of Financial Transmission Rights in Wind-Rich Electricity Markets in the Central U.S. Energy J. (IF 2.9) Pub Date : 2023-11-01 James Hyungkwan Kim, Mark Bolinger, Andrew D. Mills, and Ryan Wiser
Abstract: Transmission congestion can cause a divergence between wholesale power prices at the individual pricing nodes where power is generated and the more-liquid trading hubs where that power is often delivered and sold. This nodal price difference is commonly referred to as the "locational basis" (or just "basis"). Because the basis varies over time, it can—if not hedged—unpredictably affect a
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Climate Policy and Strategic Operations in a Hydro-Thermal Power System Energy J. (IF 2.9) Pub Date : 2023-09-01 Farzad Hassanzadeh Moghimi, Hanna Ek Fälth, Lina Reichenberg, and Afzal S. Siddiqui
Abstract: Decarbonisation of the Nordic power sector entails substantial variable renewable energy (VRE) adoption. While Nordic hydropower reservoirs can mitigate VRE output's intermittency, strategic hydro producers may leverage increased flexibility requirements to exert market power. Using a Nash-Cournot model, we find that even the current Nordic power system could yield modest gains from strategic
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Green Bonds for Renewable Energy in Latin America and the Caribbean Energy J. (IF 2.9) Pub Date : 2023-09-01 Juan David González-Ruiz, Juan Camilo Mejía-Escobar, Javier Rojo-Suárez, and Ana-Belén Alonso-Conde
Abstract: This paper comprehensively analyzes the overall status of the green bond market in Latin America and the Caribbean (LAC) for the renewable energy sector. Our results show that, in most cases, issuers are non-financial corporations. Also, despite LAC's low perception of transparency, 78% of the volume issued has been externally reviewed. In general terms, the barriers imposed on issuance by
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The Threshold Role of FDI Flows in the Energy-Growth Nexus: An Endogenous Growth Perspective Energy J. (IF 2.9) Pub Date : 2023-09-01 Olayeni Olaolu Richard, Jemiluyi Olayemi Olufunmilayo, Aviral Kumar Tiwari, and Shawkat Hammoudeh
Abstract: In this paper, we have investigated the implications of the threshold effect of changes in FDI inflows for the nexus between energy consumption and economic growth in eight under-researched sub-Saharan African countries for the period 1971–2016. The countries are Benin, Congo, Kenya, Nigeria, Senegal, South Africa, Sudan, and Zambia. Using the lag-augmented VAR (LAVAR) model (corrected for
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A Quantitative Model of the Oil Tanker Market in the Arabian Gulf Energy J. (IF 2.9) Pub Date : 2023-09-01 Lutz Kilian, Nikos Nomikos, and Xiaoqing Zhou
Abstract: Using a novel dataset, we develop a structural model of the Very Large Crude Carrier (VLCC) market between the Arabian Gulf and the Far East. We study how fluctuations in oil tanker rates, oil exports, shipowner profits, and bunker fuel prices are determined by shocks to the supply and demand for oil tankers, to the utilization of tankers, and to the cost of operating tankers, including bunker
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Distributed Renewable Energy Investment: The Effect of Time-of-Use Pricing Energy J. (IF 2.9) Pub Date : 2023-09-01 Lu-Miao Li, Peng Zhou, and Wen Wen
Abstract: This paper examines the effects of time-of-use (TOU) pricing on distributed renewable energy (DRE) investment for a non-power generating firm. We develop an electricity consumption cost-minimization model by considering the intermittent generation as well as the firm's electricity consumption. It has been found that implementing full retail prices compensation for the surplus renewable electricity
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What Drives Credit Spreads of Oil Companies? Evidence from the Upstream, Integrated and Downstream Industries Energy J. (IF 2.9) Pub Date : 2023-09-01 Yihong Ma, Simon Cottrell, Sarath Delpachitra, Xiao Yu, Ping Jiang, and Quan Tran Ha Minh
Abstract: The aim of this paper is to examine how a shock in the oil industry affects firms' debt funding obligations using credit default swaps in different segments of the oil industry's value chain. In particular, it focuses on two types of shocks suffered by upstream, integrated and downstream firms in the industry, namely (1) endogenous shocks resulting from oil-market shocks, and (2) exogenous
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Residential CO2 Emissions in Europe and Carbon Taxation: A Country-Level Assessment Energy J. (IF 2.9) Pub Date : 2023-09-01 Dorothée Charlier, Mouez Fodha, and Djamel Kirat
Abstract: This paper examines the determinants of residential CO2 emissions, which are not covered by the European Union Emissions Trading System (EU ETS), in 19 European countries between 2000-2017. Using both static and dynamic panel models, we found strong relationships between CO2 emissions per capita, GDP per capita, energy prices and heating needs. We then assessed the impact of European carbon
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What Should be Taken into Consideration when Forecasting Oil Implied Volatility Index? Energy J. (IF 2.9) Pub Date : 2023-09-01 Panagiotis Delis, Stavros Degiannakis, and Konstantinos Giannopoulos
Abstract: This study forecasts the oil volatility index (OVX) incorporating information from other implied volatility (IV) indices. We provide evidence for the existence of long memory in the OVX in order to justify the use of the Heterogeneous AutoRegressive (HAR) model. We extend the HAR model by implementing a dynamic model averaging (DMA) method in order to allow for IV indices from other asset
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Renewable Portfolio Standards Energy J. (IF 2.9) Pub Date : 2023-09-01 Rachel Feldman and Arik Levinson
Abstract: State-level renewable portfolio standards (RPSs) aim to encourage renewable energy and discourage greenhouse gas (GHG) emissions from the electric power sector in the United States. Do they work? Some prominent government agencies and advocacy groups assert that U.S. renewables growth has been largely due to RPSs. That seems unlikely, given that in most regions, renewables exceed RPS requirements
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Coal-Biomass Co-firing within Renewable Portfolio Standards: Strategic Adoption by Heterogeneous Firms and Emissions Implications Energy J. (IF 2.9) Pub Date : 2023-09-01 Brayam Valqui, Mort D. Webster, Shanxia Sun, and Thomas W. Hertel
Abstract: As electricity from coal declines, co-firing coal plants with biomass has been proposed to extend coal unit life, increase production, and reduce carbon emissions. Previous studies reach conflicting conclusions on whether coal biomass co-firing would result in a net increase or decrease in carbon emissions. We explore whether biomass co-firing would decrease emissions using a novel framework
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Gender, Energy Expenditure and Household Cooking Fuel Choice in Nigeria Energy J. (IF 2.9) Pub Date : 2023-09-01 Jennifer Uju Dim
Abstract: This paper investigates the impact of women's intra-household bargaining power on household cooking fuel choice. It further analyzes the determinants of household energy spending after the decision to use a given fuel has been made. The results reinforce the important role women play in the household cooking fuel choice and energy transition from traditional to modern fuel. In addition, income
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Intraday Return Predictability in the Crude Oil Market: The Role of EIA Inventory Announcements Energy J. (IF 2.9) Pub Date : 2023-09-01 Zhuzhu Wen, Ivan Indriawan, Donald Lien, and Yahua Xu
Abstract: We study the impact of the announcements released by the US Energy Information Administration (EIA) on crude oil storage every Wednesday at 10:30 ET (the beginning of the third half-hour interval) on intraday return predictability, that is, intraday momentum. Our results indicate that returns on the third half-hour on EIA announcement days can significantly and positively predict the returns
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The Influence of OPEC+ on Oil Prices: A Quantitative Assessment Energy J. (IF 2.9) Pub Date : 2023-09-01 Dominic Quint and Fabrizio Venditti
Abstract: Since 2017, a new coalition of oil producers led by OPEC and Russia (known as OPEC+) implemented production cuts to limit downward pressure on crude prices. The Covid-19 shock led to a temporary collapse of this coalition and to a price war among OPEC+ members, which contributed to the oil price slump that had originally been caused by widespread containment measures. As the oil market balance
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Cross-border Effects between the Spanish and French Electricity Markets: Asymmetric Dynamics and Benefits in the Light of European Market Integration Energy J. (IF 2.9) Pub Date : 2023-07-01 Ignacio Mas Urquijo and Florentina Paraschiv
Abstract: We investigate cross-border dynamics between the Spanish and French electricity markets in the light of EU's market integration. The analysis is highly relevant given the isolation of the Iberian Peninsula from the rest of European markets and its unique electricity market design. Results show the shift in the merit order curve in each market. Electricity prices in Spain follow the dynamics
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Reaching New Lows? The Pandemic’s Consequences for Electricity Markets Energy J. (IF 2.9) Pub Date : 2023-07-01 David Benatia and Samuel Gingras
Abstract: The COVID-19 crisis has disrupted electricity systems worldwide. This article disentangles the effects of the demand reductions, fuel price devaluation, and increased forecast errors on New York's day-ahead and real-time markets by combining machine learning and structural econometrics. From March 2020 to February 2021, statewide demand has decreased by 4.6 TWh (-3%) including 4 TWh (-8%)
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Oil Price Shocks and Current Account Imbalances within a Currency Union Energy J. (IF 2.9) Pub Date : 2023-07-01 Timo Baas and Ansgar Belke
Abstract: For over two decades, current account imbalances have been an essential issue in the global policy debate as they threaten the world economy's stability. More recently, the government debt crisis of the European Union shows that internal current account imbalances of a currency union may also add to these risks. Moreover, oil price fluctuations and a contracting monetary policy that reacts
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Oil Price Uncertainty and M&A Activity Energy J. (IF 2.9) Pub Date : 2023-07-01 Samuel D. Barrows, Magnus Blomkvist, Nebojsa Dimic, and Milos Vulanovic
Abstract: This study examines the impact of oil price uncertainty on mergers and acquisition (M&A) activity in the oil and gas sector. Analyzing this industry enables us to construct a natural forward-looking measure of oil price uncertainty, namely the implied crude oil volatility. Using a sample of U.S. firms in the oil and gas sector from 1994-2018 containing 4,323 announced transactions, we document
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Futures Prices are Useful Predictors of the Spot Price of Crude Oil Energy J. (IF 2.9) Pub Date : 2023-07-01 Reinhard Ellwanger and Stephen Snudden
Abstract: How well do futures prices forecast the spot price of crude oil? Contrary to the established view, futures prices significantly improve upon the accuracy of monthly no-change forecasts. This results from two innovations. First, we document that independent of the construction of futures-based forecasts, longer-horizon futures prices have become better predictors of crude oil spot prices since
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Evidence of a Homeowner-Renter Gap for Electric Appliances Energy J. (IF 2.9) Pub Date : 2023-07-01 Lucas W. Davis
Abstract: This paper provides the first empirical analysis of the homeowner-renter gap for electric appliances. Using U.S. nationally representative data, the analysis shows that renters are significantly more likely than homeowners to have electric heat, electric hot water heating, an electric stove, and an electric dryer. The gap is highly statistically significant, prevalent across regions, and
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Turkish Straits and an Important Oil Price Benchmark: Urals Energy J. (IF 2.9) Pub Date : 2023-07-01 Duygu Ekin Ayasli, Yeliz Yalcin, Serkan Sahin, and M. Hakan Berument
Abstract: The Turkish Straits is one of the busiest waterways in the World. Around 4% of the world's crude oil trade passes through the Turkish Straits. We model the CIF Mediterranean price of Urals crude, one of the world's most critical medium gravity crude brands that passes through the Turkish Straits. The empirical evidence provided here suggests that congestion (measured in terms of the waiting
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The Distribution of Energy Efficiency and Regional Inequality Energy J. (IF 2.9) Pub Date : 2023-07-01 Puja Singhal and Andrew Hobbs
Abstract: This paper uses data on heating bills to study the distribution of energy efficiency outcomes in the German multi-apartment residential building stock. To uncover the underlying energy efficiency of buildings, we estimate the causal response of heat energy demand to variability in heating degree days. We examine the heterogeneity in temperature response using both fixed effects regressions
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One Price Fits All? On Inefficient Siting Incentives for Wind Power Expansion in Germany under Uniform Pricing Energy J. (IF 2.9) Pub Date : 2023-07-01 Lukas Schmidt and Jonas Zinke
Abstract: This paper evaluates investment incentives for wind power under two market designs: uniform and nodal pricing. An electricity system model is developed, that allows for investments in wind power capacities while carefully accounting for static transmission grid constraints. Wind power capacities are assumed to reach the same expansion target by 2030 under both market designs. The results
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Does Income Affect Climbing the Energy Ladder? A New Utility-Based Approach for Measuring Energy Poverty Energy J. (IF 2.9) Pub Date : 2023-07-01 Luan Thanh Nguyen, Shyama Ratnasiri, and Liam Wagner
Abstract: Energy poverty measures are gradually becoming less relevant for fast-developing countries, where the energy mix consists of traditional and modern energies. We propose a new approach for measuring energy poverty by modifying the Exact Affine Stone Index (EASI) demand system to include implied disutility of energy use. The disutility arises from the effects of price or income changes and
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Common Stock Returns around Farmout Announcements in the Oil and Gas Industry Energy J. (IF 2.9) Pub Date : 2023-07-01 Luiz Fernando Distadio, Andrew Ferguson, and Peter Lam
Abstract: We examine market reactions to farmout agreements, a common form of strategic alliance undertaken by oil and gas explorers internationally. Using an Australian sample of 722 farmout agreements announced during the 1990–2016 period, we find that farmout announcements generate a positive cumulative average abnormal return of 3.60% for farmors and 1.90% for farminees over a 3-day event window
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Decentralised Cross-Border Interconnection Energy J. (IF 2.9) Pub Date : 2023-07-01 Claude Crampes and Nils-Henrik M. von der Fehr
Abstract: Reaping the full benefits from cross-border interconnection typically requires reinforcement of national networks. When the relevant parts of the networks are complements, a lack of coordination between national transmission system operators results in investment below optimal levels in both interconnectors and national infrastructure. A subsidy to financially sustain interconnector building
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Load-Following Forward Contracts Energy J. (IF 2.9) Pub Date : 2023-05-01 David P. Brown and David E. M. Sappington
Abstract: Suppliers and large buyers of electricity often sign load-following forward contracts (LFFCs). A LFFC obligates an electricity supplier to deliver at a pre-specified unit price a fraction of the buyer's ultimate demand for electricity. We show that relative to more standard ("swap") forward contracts, LFFCs can reduce the variation in the wholesale price of electricity. However, LFFCs also
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Modeling Multi-horizon Electricity Demand Forecasts in Australia: A Term Structure Approach Energy J. (IF 2.9) Pub Date : 2023-05-01 Stan Hurn, Vance Martin, and Jing Tian
Abstract: The Australian Electricity Market Operator generates one-day ahead electricity demand forecasts for the National Electricity Market in Australia and updates these forecasts over time until the time of dispatch. Despite the fact that these forecasts play a crucial role in the decision-making process of market participants, little attention has been paid to their evaluation and interpretation
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Strategic Behavior and Market Design in Regional Climate Policy Energy J. (IF 2.9) Pub Date : 2023-05-01 Brittany L. Tarufelli
Abstract: U.S. electricity markets vary by region and imperfectly overlap with regional climate policies. Although emissions leakage across emissions-regulated and -unregulated areas may depend on regional market design, and the extent of trading between market designs, previous studies of leakage from regional climate policies have focused on market power and market efficiency within only a centralized
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What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage Energy J. (IF 2.9) Pub Date : 2023-05-01 Yuzhou Jiang and Ramteen Sioshansi
Abstract: There is a debate about which entity should have the authority to dispatch energy storage that participates in restructured wholesale electricity markets. Some stakeholders raise concerns that market operators' independence can be threatened if they make operational decisions for energy storage. The rationale that underlies this concern is that operating energy storage can affect the balance
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How Cost-effective are Electric Vehicle Subsidies in Reducing Tailpipe-CO2 Emissions? An Analysis of Major Electric Vehicle Markets Energy J. (IF 2.9) Pub Date : 2023-05-01 Tamara L. Sheldon, Rubal Dua, and Omar Abdullah Alharbi
Abstract: We estimate the cost-effectiveness of plug-in electric vehicle (PEV) subsidies in reducing tailpipe-CO2 emissions in China, the U.S., and nine European countries. We find that the per-tonne cost of tailpipe-CO2 avoided increases linearly with the government-subsidized percentage of the PEV price. Costs are relatively higher in the Netherlands and Denmark, which subsidized high-priced PEVs
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Firms and Households during the Pandemic: What Do We Learn from Their Electricity Consumption? Energy J. (IF 2.9) Pub Date : 2023-05-01 Olympia Bover, Natalia Fabra, Sandra García-Uribe, Aitor Lacuesta, and Roberto Ramos
Abstract: We analyze the impact of the COVID-19 pandemic on electricity consumption patterns. We highlight the importance of decomposing total electricity consumption into consumption by firms and by households to better understand the economic and social impacts of the crisis. While electricity demand by firms has fallen substantially, the demand by households has gone up. In particular, our focus
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Efficient Renewable Electricity Support: Designing an Incentive-compatible Support Scheme Energy J. (IF 2.9) Pub Date : 2023-05-01 David Newbery
Abstract: Most existing renewables support schemes distort location and dispatch decisions. Many impose unnecessary risk on developers, increasing support costs. Efficient policy sets the right carbon price, supports capacity not output, ensures efficient dispatch and location. The EU bans priority dispatch and requires market-based bidding, but does not address the underlying problem that payment
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Residential and Industrial Energy Efficiency Improvements: A Dynamic General Equilibrium Analysis of the Rebound Effect Energy J. (IF 2.9) Pub Date : 2023-05-01 Sondès Kahouli and Xavier Pautrel
Abstract: The aim of this paper is to investigate bi-directional spillovers into residential and industrial sectors induced by energy efficiency improvement (EEI) in both the short- and long-term, and the impact of nesting structure as well as the size of elasticities of substitution of production and utility functions on the magnitude and the transitional dynamic of rebound effect. Developing a dynamic
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On the Role of Risk Aversion and Market Design in Capacity Expansion Planning Energy J. (IF 2.9) Pub Date : 2023-05-01 Christoph Fraunholz, Kim K. Miskiw, Emil Kraft, Wolf Fichtner, and Christoph Weber
Abstract: Investment decisions in competitive power markets are based upon thorough profitability assessments. Thereby, investors typically show a high degree of risk aversion, which is the main argument for capacity mechanisms being implemented around the world. In order to investigate the interdependencies between investors' risk aversion and market design, we extend the agent-based electricity market
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The Rationale for Reforming Utility Business Models Energy J. (IF 2.9) Pub Date : 2023-05-01 Daniel J. Kopin and Richard G. Vanden Bergh
Abstract: Economic models assume public utility commissions reform utility business models with revenue decoupling mechanisms primarily to remove the disincentive for demand-side management investment, which is expected to enhance social welfare. This paper tests that widespread assumption. We find some but limited support for commission responsiveness to avoided environmental costs. Instead, we find
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Are Autocracies Bad for the Environment? Global Evidence from Two Centuries of Data Energy J. (IF 2.9) Pub Date : 2023-03-01 Apra Sinha, Ashish Kumar Sedai, Abhishek Kumar, and Rabindra Nepal
Abstract: Reducing carbon dioxide emissions is crucial for reducing the danger posed by climate change. There are factors for and against democracies in achieving these desired reductions. Using data from 150 countries, we estimate the marginal emission intensity (i.e., the change in per-capita carbon dioxide emissions for a unit change in per-capita income) across autocracies and democracies. We use
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Debt and Optionality in U.S. LNG Export Projects Energy J. (IF 2.9) Pub Date : 2023-03-01 Peter R. Hartley and Kenneth B. Medlock III
Abstract: U.S. liquefied natural gas (LNG) export projects have substantially more spot trading of LNG than traditional projects. While this reduces the debt capacity of the projects, it allows project developers to better exploit many types of real options. Exploiting those options greatly increases the positive skewness of project cash flows. While the modal operating profits for a representative
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Impact of the Feed-in Tariff Policy on Renewable Innovation: Evidence from Wind Power Industry and Photovoltaic Power Industry in China Energy J. (IF 2.9) Pub Date : 2023-03-01 Boqiang Lin and Yufang Chen
Abstract: Technological innovation is the key to develop wind power and photovoltaic power industries. The feed-in tariff (FIT) policy, as a demand-pull policy, is important to support renewable energy technological innovation. Using the "difference-in-differences" method, this paper investigates the impact of FIT policy of wind power and the impact of the FIT policy designed according to differences
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The Thirst for Power: The Impacts of Water Availability on Electricity Generation in China Energy J. (IF 2.9) Pub Date : 2023-03-01 Yao An and Lin Zhang
Abstract: Economic development under restricted resource availability has become a complex challenge for both developing and well-established economies. To maintain a sustainable electricity supply and mitigate the impact of water shortage on economic development, it is therefore important to understand how utility firms respond to the change in water availability and unpacks the underlying mechanisms
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Coping with Externally Imposed Energy Constraints: Competitiveness and Operational Impact of China’s Top-1000 Energy-Consuming Enterprises Program Energy J. (IF 2.9) Pub Date : 2023-03-01 Yuxian Xiao, Haitao Yin, and Jon J. Moon
Abstract: Global climate change has caused governments worldwide to take actions to improve their energy efficiency. This paper investigates how China's Top-1000 program, a command-and-control type of energy-saving mandate, has affected the operational choices of firms, and in turn, their profitability. We apply the propensity score matching method to find "identical twins" for the participants in
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Investigating the Determinants of the Growth of the New Energy Industry: Using Quantile Regression Approach Energy J. (IF 2.9) Pub Date : 2023-03-01 Bin Xu and Boqiang Lin
Abstract: Expanding the supplies of new energy can not only reduce CO2 emissions, but also alleviate energy shortage. This paper applies the quantile regression to investigate the new energy industry in China. The results show that economic growth exerts the greatest effect on the new energy industry in the lower 10th quantile province. This is because these provinces have the developed economies,
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Downside Risk and Portfolio Optimization of Energy Stocks: A Study on the Extreme Value Theory and the Vine Copula Approach Energy J. (IF 2.9) Pub Date : 2023-03-01 Madhusudan Karmakar and Samit Paul
Abstract: Energy stocks are potentially a hedge against inflation and have a number of advantages over other forms of energy investing. This motivates us to study on portfolio management of energy stocks. We compare the performance of proposed GARCH-EVT-vine copula models under three different dimensions with other competing models using energy stocks from the U.S. market. In our proposed model, we
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Efficiency Measurement in Norwegian Electricity Distribution: A Generalized Four-Way-Error-Component Stochastic Energy J. (IF 2.9) Pub Date : 2023-03-01 Mike G. Tsionas and Subal C. Kumbhakar
Abstract: In this paper, we introduce a new model to estimate efficiency by generalizing the state-of-the-art panel stochastic frontier model, the salient feature of which is decomposition of inefficiency into a persistent and a transient component. The proposed model introduces an autoregressive process to allow for temporal dependence in transient inefficiency. Both firm heterogeneity and persistent
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Time-Frequency Spillovers and the Determinants among Fossil Energy, Clean Energy and Metal Markets Energy J. (IF 2.9) Pub Date : 2023-03-01 Qian Ding, Jianbai Huang, and Jinyu Chen
Abstract: Using the frequency-domain spillover index method, we investigate time-frequency spillovers and their underlying drivers among fossil energy, clean energy and metal markets. We find that short-term spillovers are stronger than long-term spillovers. Global clean energy markets are powerful spillover transmitters that can have strong impacts on fossil energy and metal markets. Rare earth metals
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Impact of Low-carbon City Construction on Financing, Investment, and Total Factor Productivity of Energy-intensive Enterprises Energy J. (IF 2.9) Pub Date : 2023-03-01 Huwei Wen, Shuai Chen, and Chien-Chiang Lee
Abstract: Faced with the global climate change, as a major greenhouse gas emitter, China launched a pilot policy on low-carbon city construction since 2010. Few studies have discussed how climate policies affect the investment and financing behavior of energy-intensive enterprises. Based on the micro data of A-share listed enterprises in China’s energy-intensive industries, this study aims to assess
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The Economics of Demand-side Flexibility in Distribution Grids Energy J. (IF 2.9) Pub Date : 2023-01-01 Athir Nouicer, Leonardo Meeus, and Erik Delarue
Abstract: To avoid unnecessary distribution network investments, distribution tariffs are expected to become more cost-reflective, and DSOs are expected to procure flexibility. This will provide an implicit and an explicit incentive to provide demand-side flexibility. In this paper, we develop a long-term bi-level equilibrium model. In the upper level, the DSO optimizes social welfare by deciding the
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Volatility Forecasting of Crude Oil Market: Which Structural Change Based GARCH Models have Better Performance? Energy J. (IF 2.9) Pub Date : 2023-01-01 Yue-Jun Zhang and Han Zhang
Abstract: GARCH-type models have been widely used for forecasting crude oil price volatility, but often ignore the structural changes of time series, which may lead to spurious volatility persistence. Therefore, this paper focuses on the smooth and sharp structural changes in crude oil price volatility, i.e., smooth shift and regime switching, respectively, and investigates which structural change
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Market Power and Long-term Gas Contracts: The Case of Gazprom in Central and Eastern European Gas Markets Energy J. (IF 2.9) Pub Date : 2023-01-01 Chi Kong Chyong, David M Reiner, and Dhruvak Aggarwal
Abstract: We explore a major European competition decision, the 2012–18 Gazprom case, using a global gas market simulation model. We find that access to LNG markets alone is insufficient to counterbalance Gazprom’s strategic behaviour; central and eastern Europe (CEE) needs to be well interconnected with bidirectional flow capability. 'Swap deals’ created by the decision facilitate CEE market integration
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Manufacturing in a Natural Resource Based Economy: Evidence from Canadian Plants Energy J. (IF 2.9) Pub Date : 2023-01-01 Saeed Moshiri, Gry Ostenstad, and Wessel N. Vermeulen
Abstract: This study investigates the effects of an oil boom on manufacturing plants performance. First, we derive several predictions using a model of heterogeneous firms. Second, we test these predictions on a plant level dataset using the Canadian Annual Survey of Manufacturers for 2000–2010. We exploit the time variation of the booming natural resource sector revenue in an oil-producing area in