| 1. |
- Huse, Cristian, et al.
(författare)
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Is arbitrage tying the price of ethanol to that of gasoline? Evidence from the uptake of flexible-fuel technology
- 2011
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Ingår i: Energy Journal. - : International Association for Energy Economics. - 1944-9089 .- 0195-6574. ; 32:3, s. 119-148
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Tidskriftsartikel (refereegranskat)abstract
- Brazil is the only sizable economy to date to have developed a home-grown ubiquitously-retailed alternative to fossil fuels in light road transportation: ethanol from sugar cane. Perhaps unsurprisingly, the uptake of flexible-fuel vehicles (FFVs) has been tremendous. Five years after their introduction, FFVs accounted for 90% of new car sales and 30% of the circulating car stock. We provide a stylized model of the sugar/ethanol industry which incorporates substitution by consumers, across ethanol and gasoline at the pump, and substitution by producers, across domestic regional and export markets for ethanol and sugar. We argue that the model stands up well to the empirical co-movement in prices at the pump in a panel of Brazilian states. The paper offers a case study of how agricultural and energy markets link up at the very micro level.
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| 2. |
- Radetzki, Marian
(författare)
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Coal or nuclear in new power stations : the political economy of an undesirable but necessary choice
- 2000
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Ingår i: Energy Journal. - 0195-6574 .- 1944-9089. ; 21:1, s. 135-147
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Tidskriftsartikel (refereegranskat)abstract
- Where gas and hydro are not available and power capacity needs to be expanded, the choice will be between coal and nuclear, for there are few viable alternative options. This paper analyzes the factors that will determine the choice. The internal costs of power generation using coal and nuclear show no clear edge for one or the other. A tilt in favor of nuclear emerges when the external costs, as assessed by experts in the field, are added to the internal ones. Laymen's evaluations of the external costs appear to be at least an order of magnitude higher than the expert assessments, however. Given their high level and strong influence on energy policy making, these evaluations will ultimately determine the choice. But since the laymen's views in this regard are formed in an unsystematic manner and are unstable over time, it is not possible to use economic analysis to determine what that choice will be.
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| 3. |
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| 4. |
- Wårell, Linda
(författare)
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Market integration in the international coal industry : a cointegration approach
- 2006
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Ingår i: Energy Journal. - 0195-6574 .- 1944-9089. ; 27:1, s. 99-118
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Tidskriftsartikel (refereegranskat)abstract
- The purpose of this paper is to test the hypothesis of the existence of a single economic market for the international coal industry, separated for coking and steam coal, and lo investigate market integration over time. This has been conducted by applying cointegration and error-correction models on quarterly price series data in Europe and Japan over the time period 1980-2000. Both the coking and the steam coal markets show evidence of global market integration, as demonstrated by the stable long-run cointegrating relationship between the respective price series in different world regions. This supports the hypothesis of a globally integrated market. However, when analyzing market integration over time it is not possible to confirm cointegration in the 1990s for steam coal. Thus, compared to the coking coal market, the steam coal market looks somewhat less global in scope.
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| 5. |
- Bergman, Lars, et al.
(författare)
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Green certificates and market power on the Nordic power market
- 2012
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Ingår i: Energy Journal. - : International Association for Energy Economics. - 1944-9089 .- 0195-6574. ; 33:2, s. 101-117
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Tidskriftsartikel (refereegranskat)abstract
- The purpose of this study is to elucidate under which circumstances, how, and to what extent market power on a Tradable Green Certificates (TGC) market can be used to affect an entire electricity market. There are basically two reasons for being concerned with this. One is that a small number of companies may have exclusive access to first rate sites for wind power generation. The other is that withdrawal of a small number of TGCs implies a multiple reduction of electricity consumption, with corresponding increases of end user prices. We formulate both an analytical model to investigate economic principles and a numerical model based on that to investigate the Swedish TGC market operating in a setting of a common Nordic electricity market. The analysis shows that Swedish producers may exercise market power using the TGC-market but that this problem will be eliminated by opening the TGC-market for other Nordic countries.
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| 6. |
- Biggar, Darryl R., et al.
(författare)
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Do We Need to Implement Multi-Interval Real-Time Markets?
- 2022
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Ingår i: Energy Journal. - : International Association for Energy Economics (IAEE). - 0195-6574 .- 1944-9089. ; 43:2, s. 111-132
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Tidskriftsartikel (refereegranskat)abstract
- Many market-based power systems have implemented a form of 'look-ahead dispatch' which simultaneously solves for the optimal dispatch and prices over several intervals into the future. A few papers have pointed out that the dispatch outcomes which emerge from look-ahead dispatch may not be time consistent. We emphasise that this time inconsistency is not inherent in look-ahead dispatch but is a consequence of the assumption of linear cost and utility functions, which is arguably a special case. Various augmentations to the dispatch process to resolve the time inconsistency problem have been proposed, but these augmentations suffer from the drawback that they do not allow the power system to efficiently adjust to new information. We query whether it is necessary to implement multi-interval real-time markets. We show how under certain assumptions, a sequence of oneshot dispatch processes will achieve the efficient outcome.
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| 7. |
- Boräng, Frida, 1977, et al.
(författare)
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In Light of Democracy and Corruption: Institutional Determinants of Electricity Provision
- 2021
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Ingår i: The Energy Journal. - : International Association for Energy Economics (IAEE). - 0195-6574 .- 1944-9089. ; 42:2
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Tidskriftsartikel (refereegranskat)abstract
- Long-lasting democratic institutions have been found to matter for the universal provision of reliable electricity. In this article we revisit this finding, suggesting that the effect of democracy on electricity provision is moderated by the quality of institutions shaping the implementation of public policies. We test the hypothesis positing the interaction effect between democracy and corruption using cross-national data on the share of population living in unlit areas. The results show that democracy is associated with a higher electrification rate only in low-corrupt contexts. When corruption is widespread, democratic experience is not correlated with higher rates of electrification. These findings suggest that the effect of democratic institutions is conditional on the quality of the institutions that shape policy implementation.
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| 8. |
- Broberg, Thomas, et al.
(författare)
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Peak Load Habits for Sale? : Soft Load Control and Consumer Preferences on the Electricity Market
- 2021
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Ingår i: Energy Journal. - : International Association for Energy Economics. - 0195-6574 .- 1944-9089. ; 42:1
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Tidskriftsartikel (refereegranskat)abstract
- The main purpose of this paper is to estimate lost consumer values due to various restrictions on household electricity use involving behavior adaptation. To do this, we conduct a choice experiment where households choose between hypothetical electricity contracts including various restrictions on the use of high-power household appliances. In addition, we use a contingent valuation question related to complete blackouts to study a restriction on other types of electricity usage (heating, lighting, TV, etc.). The results indicate a significant difference between the value lost due to the soft control, and the blackouts. Furthermore, policies aiming at stimulating behavioral changes are costly and it is far from obvious that demand response requiring behavioral adaptation is more cost effective than supply response (i.e., increased production of electricity).
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| 9. |
- Campillo, Javier, et al.
(författare)
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Is real-time electricity pricing suitable for residential users without demand-side management?
- 2016
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Ingår i: Energy Journal. - : Elsevier BV. - 0195-6574 .- 1944-9089. ; 109, s. 310-325
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Tidskriftsartikel (refereegranskat)abstract
- The smart metering infrastructure in Sweden allows electricity providers to offer electricity RTP (real time pricing) to homeowners, together with other dynamic pricing contracts across the country. These contracts are supposed to encourage users to shift power consumption during peak hours to help balance the load in the power system. Of all the available contracts in Sweden, monthly-average price holds the largest share, in response to the low electricity prices during the last three years. It is not clear if RTP will become a popular dynamic pricing scheme since daily price fluctuations might keep customers away from this type of contract. Literature review suggests that RTP adoption is only beneficial when combined with the use of customer demand flexibility, but it does not provide enough information about users adopting RTP without changing their electricity usage profile. This paper studies the economic impact if customers would shift to RTP contracts without adopting demand-side management. To achieve this, electricity costs from a large group of households were calculated and compared between both pricing schemes using the hourly consumption data of a 7-year period. Results suggest that the RTP electricity contract offer a considerable economic savings potential even without enabling consumer demand-side management.
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| 10. |
- Chen, Yihsu, et al.
(författare)
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Market Power with Tradable Performance-Based CO2 Emission Standards in the Electricity Sector
- 2018
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Ingår i: Energy Journal. - : International Association for Energy Economics (IAEE). - 0195-6574 .- 1944-9089. ; 39:6, s. 121-145
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Tidskriftsartikel (refereegranskat)abstract
- The U.S. Clean Power Plan stipulates a state-specific performance-based CO2 emission standard, delegating states with considerable flexibility for using either a tradable performance-based or a mass-based permit program. This paper analyzes these two standards under imperfect competitive. We limit our attention to (1) short-run analyses and (2) a situation in which all states are subject to the same type of standard. We show that while the cross-subsidy inherent in the performance-based standard might effectively reduce power prices, it could also inflate energy consumption. A dominant firm with a relatively clean endowment under the performance-based standard would be able to manipulate the electricity market as well as to elevate permit prices, which might worsen market outcomes compared to its mass-based counterpart. On the other hand, the "cross-subsidy" could be the dominant force leading to a higher social welfare if the leader has a relatively dirty endowment.
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