| 1. |
- Arvaniti, Maria, et al.
(författare)
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Time-consistent renewable resource management with present bias and regime shifts
- 2023
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Ingår i: Journal of Economic Behavior and Organization. - : Elsevier. - 0167-2681 .- 1879-1751. ; 207, s. 479-495
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Tidskriftsartikel (refereegranskat)abstract
- We investigate the extraction plan of present-biased decision makers managing a renew-able resource stock whose growth is uncertain and which could undergo a rapid and sig-nificant change when stock falls below a threshold. We show that the Markov-Nash equi-librium extraction policy is unique, time consistent, and increasing in resource stock. An increase in the threshold leads to increased resource extraction, rather than the precau-tionary reduction in extraction often observed with exponential discounting. An increase in the degree of present bias also leads to an increase in resource extraction. Our analy-sis suggests that accounting for and appropriately dealing with resource managers' present bias may be important to understand resource use sustainability.
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| 2. |
- B. Krishnamurthy, Chandra Kiran, 1977-, et al.
(författare)
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A cross-country analysis of residential electricity demand in 11 OECD-countries
- 2015
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Ingår i: Resources and Energy Economics. - : Elsevier BV. - 0928-7655 .- 1873-0221. ; 39, s. 68-88
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Tidskriftsartikel (refereegranskat)abstract
- We provide consistent, cross-country estimates of price and income elasticity for households in 11 OECD countries. Using survey data from 2011 on annual consumption of electricity and sample-derived average electricity price, we provide country-specific price elasticity estimates and average income elasticity estimates. For most countries in our sample, we find strong price responsiveness, with elasticities varying (in absolute value) between 0.27 for South Korea and 1.4 for Australia, and higher than 0.5 for most countries. Exploiting the presence of many attitudinal indicators in the dataset, we provide evidence that non-price related factors to affect energy demand; in particular, households' self-reported energy savings behaviour reduces demand between 2 and 4%. In contrast, we find very weak income responsiveness, with income elasticities varying from 0.07 to 0.16 and no evidence for heterogeneity across the countries in our sample. Our results regarding price elasticity are in contrast with those of many existing studies which find low-to-moderate price responsiveness, and adds to a few recent studies indicating more policy space for demand reduction than previously thought.
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| 3. |
- B. Krishnamurthy, Chandra Kiran, 1977-, et al.
(författare)
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Determinants of the Price-Premium for Green Energy : Evidence from an OECD Cross-Section
- 2016
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Ingår i: Environmental and Resource Economics. - : Springer Science and Business Media LLC. - 0924-6460 .- 1573-1502. ; 64:2, s. 173-204
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Tidskriftsartikel (refereegranskat)abstract
- Using data from a survey of households in 11 OECD countries, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) how much are households willing to pay to use only renewable energy? (ii) does willingness-to-pay (WTP) vary significantly across household groups and countries? and (iii) what drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of WTP? The analysis here differs from previous studies on green energy in two ways: first, data and analyses are comparable across countries and second, a comprehensive attempt is made to understand 0 WTP, and to accommodate-using a censored quantile regression (CQR) framework-unobserved heterogeneity. The survey data indicate a low WTP, at 11-12 % of current electric bill. This study also addresses a key question: how important is income for understanding WTP, relative to more "attitudinal" determinants? The effect of income overall appears ambiguous, with Tobit-like models indicating that income is not significant while the CQR indicates that income exerts a significant effect near the center of the distribution of WTP. Across all frameworks used, a key determinant of WTP appears to be environmental attitudes, particularly membership in an environmental organization.
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| 4. |
- B. Krishnamurthy, Chandra Kiran, 1977-
(författare)
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Optimal management of groundwater under uncertainty : a unified approach
- 2017
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Ingår i: Environmental and Resource Economics. - : Springer. - 0924-6460 .- 1573-1502. ; 67:2, s. 351-377
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Tidskriftsartikel (refereegranskat)abstract
- Discrete-time stochastic models of management of groundwater resources have been extensively used for understanding a number of issues in groundwater management. Most models used suffer from two drawbacks: relatively simplistic treatment of the cost of water extraction, and a lack of important structural results (such as monotonicity of extraction in stock and concavity of the value function), even in simple models. Lack of structural properties impede both practical policy simulation and clarity of understanding of the resulting models and the underlying economics. This paper provides a unifying framework for these models in two directions; first, the usual cost function is extended to encompass cases where marginal cost of pumping depends on the stock and second, the analysis dispenses with assumptions of concavity of the objective function and compactness of the state space, using instead lattice-theoretic methods. With these modifications, a comprehensive investigation of which structural properties can be proved in each of the resulting cases is carried out. It is shown that for some of the richer models more structural properties may be proved than for the simpler model used in the literature. This paper also introduces to the resource economics literature an important method of proving convergence to a stationary distribution which does not require monotonicity in stock of resource. This method is of interest in a variety of renewable resource model settings.
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| 5. |
- Cioffi, Francesco, et al.
(författare)
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Space-time structure of extreme precipitation in Europe over the last century
- 2015
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Ingår i: International Journal of Climatology. - : Wiley. - 0899-8418 .- 1097-0088. ; 35:8, s. 1749-1760
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Tidskriftsartikel (refereegranskat)abstract
- We investigate the space-time structure of extreme precipitation in Europe over the last century, using daily rainfall data from the European Climate Assessment & Dataset (ECA&D) archive. The database includes 267 stations with records longer than 100 years. In the winter season (October to March), for each station, two classes of daily rainfall amount values are selected that, respectively, exceed the 90th and 95th percentile of daily rainfall amount over all the 100 years. For each class, and at each location, an annual time series of the frequency of exceedance and of the total precipitation, defined respectively as the number of days the rainfall threshold (90th and 95th percentiles) is exceeded and total precipitation on days when the percentile is exceeded, are developed. Space-time structure of the frequency and total precipitation time series at the different locations are then pursued using multivariate time and frequency domain methods. The identified key trends and organized spectral modes are linked to well-known climate indices, as North Atlantic Oscillation (NAO) and El Nino Southern Oscillation (ENSO). The spectra of the leading principal component of frequency of exceedance and of total precipitation have a peak with a 5-year period that is significant at the 5% level. These are also significantly correlated with ENSO series with this period. The spectrum of total rainfall is significant at the 10% level with a period of similar to 8 years. This appears to be significantly correlated to the NAO index at this period. Thus, a decomposition of both secular trends and quasi-periodic behaviour in extreme daily rainfall is provided.
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| 6. |
- Downing, Andrea S., et al.
(författare)
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Unlocking the unsustainable rice-wheat system of Indian Punjab : Assessing alternatives to crop-residue burning from a systems perspective
- 2022
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Ingår i: Ecological Economics. - : Elsevier BV. - 0921-8009 .- 1873-6106. ; 195
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Tidskriftsartikel (refereegranskat)abstract
- Crop residue burning in Indian Punjab emits particulate matter with detrimental impacts on health, climate and that threaten agricultural production. Though legal and technological barriers to residue burning exist – and alternatives considered more profitable to farmers – residue burning continues. We review black carbon (BC) emissions from residue burning in Punjab, analyse social-ecological processes driving residue burning, and rice and wheat value-chains. Our aims are to a) understand system feedbacks driving agricultural practices in Punjab; b) identify systemic effects of alternatives to residue burning and c) identify companies and financial actors investing in agricultural production in Punjab. We find feedbacks locking the system into crop residue burning. The Government of India has greatest financial leverage and risk in the current system. Corporate stakeholders have little financial incentive to enact change, but sufficient stakes in the value chains to influence change. Agricultural policy changes are necessary to reduce harmful impacts of current practices, but insufficient to bringing about sustainability. Transformative changes will require crop diversification, circular business models and green financing. Intermediating financial institutions setting sustainability conditions on loans could leverage these changes. Sustainability requires the systems perspective we provide, to reconnect production with demand and with supporting environmental conditions.
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| 7. |
- Engström, Gustav, et al.
(författare)
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Valuing biodiversity and resilience : an application to pollinator diversity in the Stockholm region
- 2020
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Ingår i: Spatial Economic Analysis. - : Informa UK Limited. - 1742-1772 .- 1742-1780. ; 15:3, s. 238-261
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Tidskriftsartikel (refereegranskat)abstract
- This paper characterizes the value of biodiversity and ecosystem resilience by formalizing a stochastic dynamic bioeconomic model of pollinator diversity under climate changes, with an application to oil rapeseed production in the Stockholm region of Sweden. It studies the optimal provision of semi-natural habitat for two different pollinator bee species: bumble bees and solitary wild bees. It is found that, despite being less effective, solitary bees hold considerable resilience value due to the differences in how the two species respond to temperature shocks. The paper also discusses the role of spatial aspects, in particular the reduced pollination effectiveness due to spatially uneven allocation of semi-natural habitats. It is found that spatial unevenness leads to an increase in the habitat provision, with an attendant reduction in the resilience value of solitary bees.
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| 8. |
- Karimu, Amin, 1978-, et al.
(författare)
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Understanding Hourly Electricity Demand : Implications for Load, Welfare and Emissions
- 2022
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Ingår i: Energy Journal. - : International Association for Energy Economics (IAEE). - 0195-6574 .- 1944-9089. ; 43:1, s. 161-189
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Tidskriftsartikel (refereegranskat)abstract
- In this study, using hourly data from a representative sample of Swedish households on standard tariffs, we investigate the welfare and emission implications of moving to a mandatory dynamic pricing scheme. We allow demand during different hours of a day to affect utility differently, and account for the derived nature of electricity demand by explicitly accounting for the services (end-use demands) that drive hourly electricity demand. We use the flexible Exact Affine Stone Index (EASI) demand system, which accommodates both observed and unobserved heterogeneity in preferences, to understand changes in load consequent to hourly retail pricing. Our findings suggest that, following hourly retail pricing, changes in load patterns across hours are relatively small: total load changes by less than one percent. There are correspondingly small reductions in welfare and carbon emissions, of less than 0.2 percent and 0.47 percent, respectively. Overall, in the context of a decentralized, competitive retail electricity market-setting, our results suggest that the benefits to ensuring that the retail price of electricity reflects the hourly marginal cost is small, at least in the short run.
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| 9. |
- Kiran B. Krishnamurthy, Chandra, et al.
(författare)
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Determinants of Residential end-use electricity demand : Evidence from Sweden
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Using a household appliance metering data set from the Swedish Energy Agency, this paper focuses on understanding the determinants of end-use electricity demand for Sweden. The focal point of the analysis is the estimation of end-use-specific income elasticity of electricity demand, for the first time for Sweden. A seemingly unrelated regression framework is used for understanding the determinants of end-use demand, with the end-uses being heating, kitchen, lighting, and residual. The main results of the analysis are: high aggregate elasticity (above 0.6), and very high income elasticity of electric heating (above 0.8). Other size-related variables (size of home, number of people) do not appear to have significant explanatory power. Overall, our analysis indicates that income is a key factor determining the demand for electricity, and to a much larger extent than usually considered
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| 10. |
- Krishnamurthy, Chandra Kiran B, et al.
(författare)
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How large is the owner-renter divide in energy efficient technology? Evidence from an OECD cross-section.
- 2015
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Ingår i: Energy Journal. - Cleveland : International association for energy economics. - 0195-6574 .- 1944-9089. ; 36:4, s. 85-104
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Tidskriftsartikel (refereegranskat)abstract
- When the agent making an investment decision is different from the one bearing the costs of the decision, the outcome (energy usage, here) is socially sub-optimal, a scenario known in the energy efficient technology case as "split incentive" effect. Using a sample of households (from a survey conducted in 2011) from 11 OECD countries, this paper investigates the magnitude of the "split incentive" effect between home occupants who are owners and those who are renters. A wide variety of energy-related "technologies" are considered: appliances, energy efficient bulbs, insulation, heat thermostat, solar panels, ground source heat pumps and wind turbines. Mean difference in patterns of access to these technologies are consistent with the "split incentives" hypothesis. Regression results suggest that, even after controlling for the sizeable differences in observed characteristics, owners are substantially more likely to have access to energy efficient appliances and to better insulation as well as to heat thermostats. For relatively immobile investments such as wind turbines and ground source heat pumps, we find no differences between owners and renters.
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| 11. |
- Vesterberg, Mattias, et al.
(författare)
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Real-time pricing revisited: Demand flexibility in the presence of micro-generation
- 2018
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Ingår i: Energy Policy. - : Elsevier. - 0301-4215 .- 1873-6777. ; 23, s. 642-658
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Tidskriftsartikel (refereegranskat)abstract
- An understanding of household demand response (DR) is important in view of increasingly smart grids in which high shares of renewable supply are being promoted. In addition, an important development in the Nordic market relates to increasing thrust on household solar photo-voltaic (PV) panels. In view of the potential for interaction between dynamic pricing-driven and PV generation-driven load changes, an analysis of the combined effects in relation to the system profile is important, not least because this can affect the nature of benefits to households and to the grid. Using a unique and detailed dataset on household electricity consumption, in combination with simulated solar panel micro-generation data, these aspects are explored here using a demand framework drawn from the previous literature. Our findings indicate that even with low price responsiveness, household response to dynamic pricing can lead to load changes with sizeable benefits. In addition, the introduction of PV panels appear to be beneficial to the electric grid, largely due to the time pattern of winter PV generation. Overall, our findings provide tentative support to the hypothesis that dynamic pricing, by incentivizing households to provide demand response at appropriate times, can aid in integration of renewables.
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| 12. |
- Vesterberg, Mattias, et al.
(författare)
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Residential End-use Electricity Demand : Implications for Real Time Pricing in Sweden
- 2016
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Ingår i: Energy Journal. - : International Association for Energy Economics (IAEE). - 0195-6574 .- 1944-9089. ; 37:4, s. 141-164
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Tidskriftsartikel (refereegranskat)abstract
- Using a unique and highly detailed data set on energy consumption at the appliance-level for 200 Swedish households, seemingly unrelated regression (SUR)based end-use specific load curves are estimated. The estimated load curves are then used to explore possible restrictions on load shifting (e.g. the office hours schedule) as well as the cost implications of different load shift patterns. The cost implications of shifting load from "expensive" to "cheap" hours, using the Nord pool spot prices as a proxy for a dynamic price, are computed to be very small; roughly 2-4% reduction in total daily cost from shifting load up to five hours ahead, indicating small incentives for households (and retailers) to adopt dynamic pricing of electricity.
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