An integrated framework for energy pricing in developing countries

International Nuclear Information System (INIS)

Munasinghe, M.

1989-01-01

In the paper the importance of coordinated energy planning and pricing is emphasized with particular reference to the interrelationships among the pricing polices adopted in various energy subsectors such as electric power, petroleum, natural gas, coal and traditional fuels. Nonconventional sources can also be fitted into this framework. The chief investment issues are also touched to the extent that they strongly influence pricing policy. 15 refs, 7 figs

Energy return on (energy) invested (EROI), oil prices, and energy transitions

International Nuclear Information System (INIS)

Heun, Matthew Kuperus; de Wit, Martin

2012-01-01

Very little work has been done so far to model, test, and understand the relationship between oil prices and EROI over time. This paper investigates whether a declining EROI is associated with an increasing oil price and speculates on the implications of these results on oil policy. A model of the relationship between EROI and oil market prices was developed using basic economic and physical assumptions and non-linear least-squares regression models to correlate oil production price with EROI using available data from 1954–1996. The model accurately reflects historical oil prices (1954–1996), and it correlates well with historical oil prices (1997–2010) if a linear extrapolation of EROI decline is assumed. As EROI declines below 10, highly non-linear oil price movements are observed. Increasing physical oil scarcity is already providing market signals that would stimulate a transition away from oil toward alternative energy sources. But, price signals of physical oil scarcity are not sufficient to guarantee smooth transitions to alternative fuel sources, especially when there is insufficient oil extraction technology development, a declining mark-up ratio, a non-linear EROI–cost of production relationship, and a non-linear EROI–price relationship. - Highlights: ► A model of the relationship between EROI and oil prices has been developed. ► As EROI declines below 10, highly non-linear oil price movements are expected. ► Physical oil scarcity provides market signals for a transition to alternatives. ► Scarcity price signals are insufficient for smooth transitions to alternatives.

Energy prices and agricultural commodity prices: Testing correlation using copulas method

International Nuclear Information System (INIS)

Koirala, Krishna H.; Mishra, Ashok K.; D'Antoni, Jeremy M.; Mehlhorn, Joey E.

2015-01-01

The linear relationships between energy prices and prices for agricultural commodities such as corn and soybeans may have been affected, over the last several years, by policy legislations in the farm sector, the Energy Independence and Security Act of 2007, and the Renewable Fuel Standard Program for 2014. Using high-frequency data and newer methodology, this study investigates dependence between agricultural commodity futures prices and energy futures prices. Results reveal that agricultural commodity and energy future prices are highly correlated and exhibit positive and significant relationship. Findings from this study highlight that an increase in energy price increases the price of agricultural commodities. - Highlights: • Energy policy mandates production of 15 billion gallons of corn ethanol by 2015. • Energy-intensive agriculture has a link between energy sector and crop production costs. • We investigate correlation between energy prices and agricultural commodity prices. • Agricultural commodity and energy future prices are highly correlated. • Increase in energy price increases the price of agricultural commodity

Oil prices and the stock prices of alternative energy companies

International Nuclear Information System (INIS)

Henriques, Irene; Sadorsky, Perry

2008-01-01

Energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements. While it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies, there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices. In this paper, a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices, technology stock prices, oil prices, and interest rates. Our results show technology stock prices and oil prices each individually Granger cause the stock prices of alternative energy companies. Simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices. These results should be of use to investors, managers and policy makers. (author)

Revisiting Environmental Kuznets Curves through the energy price lens

International Nuclear Information System (INIS)

Rodríguez, Miguel; Pena-Boquete, Yolanda; Pardo-Fernández, Juan Carlos

2016-01-01

The goal of this paper is to provide new insights to elucidate the inconclusive results from the Environmental Kuznets Curve (EKC) empirical literature. For the first time in empirical literature, an econometric analysis includes the relative prices for several energy sources. The paper provides strong evidence on the relevance of energy prices to CO_2 emissions. Accordingly, one reason for the lack of agreement in the EKC literature may be the absence of energy prices in empirical exercises. The presence of relative energy price changes in the econometric specification confirms a monotonic and positive relationship between CO_2 and gross domestic product (GDP). Therefore, we may conclude that there is a decoupling process but without reaching any turning point on that relationship. The policy implications are straightforward. Direct climate action by policy makers is required to break the positive relationship between CO_2 and GDP. That conclusion has been reinforced by the reduction of energy prices since the middle of 2014. Otherwise, the trend in energy prices may reverse the relative decarbonisation processes accounted for in recent years in major developed countries. - Highlights: •EKC literature usually dismiss the major influence of energy prices. •Relative energy prices invalidate the evidence in favour of the EKC hypothesis. •Results may explain some contradictory observations found in the EKC literature. •Nowadays reduction in energy prices may break decarbonisation trends. •Direct action by policymakers is required to break the positive GDP-CO_2 link.

Another look on the relationships between oil prices and energy prices

International Nuclear Information System (INIS)

Lahiani, Amine; Miloudi, Anthony; Benkraiem, Ramzi; Shahbaz, Muhammad

2017-01-01

This paper employs the Quantile Autoregressive Distributed Lags (QARDL) model developed recently by Cho et al. (2015) to investigate the pass-through of oil prices to a set of energy prices. This approach allows analyzing simultaneously short-term connections and long-run cointegrating relationships across a range of quantiles. It also provides insights on the short-run predictive power of oil prices in predicting energy prices while accounting for the cointegration between oil prices and each of the considered energy prices in low, medium and high quantiles. Two key findings emerge from this paper. First, all considered energy prices are shown to be cointegrated with oil price across quantiles meaning that a stationaryequilibriumrelationship exists between single energy price and oil price. Second, we find evidence that oil price is a significant predictor of individual petroleum products prices and natural gas in the short run. This paper has important policy implications for forecasters, energy policy-makers and portfolio managers. - Highlights: • The pass-through of oil prices to a set of energy prices is investigated for US economy. • All considered energy prices are shown to be cointegrated with oil price across quantiles. • Oil price is a significant predictor of individual petroleum products prices in the short run. • Oil price also predicts natural gas prices in the short run.

Energy prices, equalization and Canadian federalism : comparing Canada's energy price shocks

International Nuclear Information System (INIS)

Courchene, T.J.

2006-01-01

Revenues from natural resources during periods of high energy prices can create problems with the way the Canadian federal government distributes wealth through equalization. This paper traced the history of equalization in comparison with energy prices from the years 1973 to 2003. It was noted that the National Energy Program, section 92A of the Constitution, and the 5-province standard were all federal responses to initial energy price increases. It was suggested that current increases in energy prices demand a different response. The author examined a method of using the national average standard to calculate equalization payments as a means of eliminating the inequities created by the current 5-province standard, which excludes both Alberta and the Atlantic provinces. It was argued that the exclusion of Alberta's energy resources creates a false impression that other provinces such as British Columbia and Saskatchewan are rich in resources. It was suggested that fiscal imbalance between provinces is a significant challenge to the current Canadian government. New approaches to cash transfers to the provinces were discussed. A 2-tier equalization scheme was proposed that separated natural resource revenues from other revenues. It was concluded that the government's previous response to high energy prices will not be appropriate for addressing the current price shock. A 2-tier equalization scheme will mean that resource-rich provinces have an opportunity to participate more fully in federal decision-making. 53 refs., 3 figs

The impact of renewable energies on EEX day-ahead electricity prices

International Nuclear Information System (INIS)

Paraschiv, Florentina; Erni, David; Pietsch, Ralf

2014-01-01

In this paper, we analyze the impact of renewable energies, wind and photovoltaic, on the formation of day-ahead electricity prices at EEX. We give an overview of the policy decisions concerning the promotion of renewable energy sources in Germany and discuss their consequences on day-ahead prices. An analysis of electricity spot prices reveals that the introduction of renewable energies enhances extreme price changes. In the frame of a dynamic fundamental model, we show that there has been a continuous electricity price adaption process to market fundamentals. Furthermore, the fundamental drivers of prices differ among hours with different load profiles. Our results imply that renewable energies decrease market spot prices and have implications on the traditional fuel mix for electricity production. However, the prices for the final consumers increased overall because they must pay in addition the feed-in tariffs for the promotion of renewable energy. - Highlights: • We analyze the impact of renewable energies on the day-ahead electricity prices at EEX. • We discuss the impact of renewables on day-ahead prices. • We show a continuous electricity price adaption process to market fundamentals. • Renewable energies decrease market spot prices and shift the merit order curve. • The prices for the final consumers however increased because of feed-in tariffs

Policy on energy pricing

Energy Technology Data Exchange (ETDEWEB)

Webb, M. G.

1977-10-15

Some economic principles of energy pricing in a market type economy in which there is consumer sovereignty are discussed. Thus resources will be allocated via the production processes in line with the preferences of consumers as revealed by their purchases of goods and services. Prices play the crucial role of coordinating instruments in this allocative process. It is assumed that all the energy industries are in the public sector. The following topics are discussed: the specification of objectives for the energy sector; marginal cost pricing; problems associated with the measurement of marginal costs; some aspects of the environmental costs associated with energy production and use, and some issues related to time differentiated tariffs; the modification of prices to achieve financial targets; and the use of energy prices to achieve income distribution objectives.

Solutions for wood-based bio-energy price discovery

Energy Technology Data Exchange (ETDEWEB)

Teraes, Timo [FOEX Indexes Ltd., Helsinki (Finland)], e-mail: timo@foex.fi

2012-11-01

Energy prices are highly volatile. This volatility can have serious ill-effects on the profitability of companies engaged in the energy business. There are, however, a number of price risk management tools which can be used to reduce the problems caused by price volatility. International trade of wood pellets and wood chips is rapidly growing. A good price transparency helps in developing the trade further. In order to meet the renewable energy targets within the EU, further growth of volumes is needed, at least within Europe and from overseas supply sources to the European markets. Reliable price indices are a central element in price risk management and in general price discovery. Exchanges have provided, in the past, the most widely known price discovery systems. Since 1990's, an increasing number of price risk management tools has been based on cash settlement concept. Cash settlement requires high quality benchmark price indices. These have been developed by the exchanges themselves, by trade press and by independent price benchmark provider companies. The best known of these benchmarks in forest industry and now also in wood-based bioenergy products are the PIX indices, provided by FOEX Indexes Ltd. This presentation discusses the key requirements for a good price index and the different ways of using the indices. Price relationships between wood chip prices and pellet prices are also discussed as will be the outlook for the future volume growth and trade flows in woodchips and pellets mainly from the European perspective.

An Electricity Price-Aware Open-Source Smart Socket for the Internet of Energy.

Science.gov (United States)

Blanco-Novoa, Óscar; Fernández-Caramés, Tiago M; Fraga-Lamas, Paula; Castedo, Luis

2017-03-21

The Internet of Energy (IoE) represents a novel paradigm where electrical power systems work cooperatively with smart devices to increase the visibility of energy consumption and create safer, cleaner and sustainable energy systems. The implementation of IoE services involves the use of multiple components, like embedded systems, power electronics or sensors, which are an essential part of the infrastructure dedicated to the generation and distribution energy and the one required by the final consumer. This article focuses on the latter and presents a smart socket system that collects the information about energy price and makes use of sensors and actuators to optimize home energy consumption according to the user preferences. Specifically, this article provides three main novel contributions. First, what to our knowledge is the first hardware prototype that manages in a practical real-world scenario the price values obtained from a public electricity operator is presented. The second contribution is related to the definition of a novel wireless sensor network communications protocol based on Wi-Fi that allows for creating an easy-to-deploy smart plug system that self-organizes and auto-configures to collect the sensed data, minimizing user intervention. Third, it is provided a thorough description of the design of one of the few open-source smart plug systems, including its communications architecture, the protocols implemented, the main sensing and actuation components and the most relevant pieces of the software. Moreover, with the aim of illustrating the capabilities of the smart plug system, the results of different experiments performed are shown. Such experiments evaluate in real-world scenarios the system's ease of use, its communications range and its performance when using HTTPS. Finally, the economic savings are estimated for different appliances, concluding that, in the practical situation proposed, the smart plug system allows certain energy

The relationship among energy prices and energy consumption in China

International Nuclear Information System (INIS)

Yuan, Chaoqing; Liu, Sifeng; Wu, Junlong

2010-01-01

The pricing mechanism for energy is not in line with the international standards, because the energy prices are controlled by the government partly or completely in China. Chinese government made a lot of efforts to improve the pricing mechanism for energy. The relations between Chinese energy prices and energy consumption are the foundations to reform the mechanism. In this paper, the relations between Chinese energy consumption and energy prices are researched by cointegration equations, impulse response functions, granger causality and variance decomposition. The cointegration relations among energy prices, energy consumption and economic outputs show that higher energy price will decrease energy consumption in Chinese industrial sectors but will not reduce the economic output in the long run. The cointegration relation between energy price and household energy consumption shows that higher energy price will decrease household energy consumption in the long run and increase it in the short run. So Chinese government should deepen the reform of pricing mechanism for energy, and increase the energy prices reasonably to save energy. (author)

Estimates of the price of hydrogen as a medium for wind and solar sources

International Nuclear Information System (INIS)

Bockris, John O'M.; Veziroglu, T. Nejat

2007-01-01

The rejection of hydrogen as a solution to global warming by becoming the medium of wind and solar was made when gasoline was priced at $1/gallon. From wind, H 2 would now cost (by electrolysis of water and steam) less than $3 for an amount equivalent in energy to that in a gallon of gasoline ('equivalent'). From solar photovoltaics (pv), H 2 would be sinking in price between $8 toward $5 equivalent as the efficiency of solar pv increases toward 20%. Solar thermal's present prices offer about one-half the solar pv prices. Prediction of the maximum of the delivery rate of world oil is [Laherre's Oil Production Forecast, 1950-2150. Reprinted with permission from correspondence with William Horvath, U.S. Department of Energy, March 29, 2001] 2010. Future energy sources will develop inexhaustible energies from wind, solar, geothermal, tidal, and wave sources. The common media will be hydrogen and electricity. These sources yield energy at around one-half the cost of nuclear fission. Growing corn to make alcohol involves a net loss of energy and need for a heating mechanism. It may increase the Greenhouse. (author)

Asymmetric adaptations to energy price changes

International Nuclear Information System (INIS)

Kuper, G.H.; Van Soest, D.P.

1999-01-01

The effectiveness of policies to reduce the use of energy depend on the elasticity of substitution between the various inputs and on the rate of technological progress. This paper presents a theoretical model emphasising energy investment characteristics of uncertainty and irreversibility that result in testable hypotheses concerning the relative values of substitution parameters and rates of technological change in periods of high and increasing energy prices and in periods of low prices. Estimation results for a panel of sectors of the Dutch economy show that the elasticity of substitution between energy and other inputs is low in periods of low energy prices, whereas it is significantly higher in the preceding period of high and increasing energy prices. Furthermore, energy-saving technological progress in periods of high and increasing energy prices is also significantly higher than if energy prices are low and falling. The regression results suggest that, due this asymmetric response of firms to changes in energy prices, taxing energy in the current period of low energy prices will not yield substantial reductions in energy use of Dutch industry. 21 refs

Average regional end-use energy price projections to the year 2030

International Nuclear Information System (INIS)

1991-01-01

The energy prices shown in this report cover the period from 1991 through 2030. These prices reflect sector/fuel price projections from the Annual Energy Outlook 1991 (AEO) base case, developed using the Energy Information Administration's (EIA) Intermediate Future Forecasting System (IFFS) forecasting model. Projections through 2010 are AEO base case forecasts. Projections for the period from 2011 through 2030 were developed separately from the AEO for this report, and the basis for these projections is described in Chapter 3. Projections in this report include average energy prices for each of four Census Regions for the residential, commercial, industrial, and transportation end-use sectors. Energy sources include electricity, distillate fuel oil, liquefied petroleum gas, motor gasoline, residual fuel oil, natural gas, and steam coal. (VC)

Estimating the commodity market price of risk for energy prices

International Nuclear Information System (INIS)

Kolos, Sergey P.; Ronn, Ehud I.

2008-01-01

The purpose of this paper is to estimate the ''market price of risk'' (MPR) for energy commodities, the ratio of expected return to standard deviation. The MPR sign determines whether energy forward prices are upward- or downward-biased predictors of expected spot prices. We estimate MPRs using spot and futures prices, while accounting for the Samuelson effect. We find long-term MPRs generally positive and short-term negative, consistent with positive energy betas and hedging, respectively. In spot electricity markets, MPRs in Day-Ahead Prices agree with short-dated futures. Our results relate risk premia to informed hedging decisions, and futures prices to forecast/expected prices. (author)

Impacts of high energy prices on long-term energy-economic scenarios for Germany

Energy Technology Data Exchange (ETDEWEB)

Krey, V.; Markewitz, P. [Research Center Juelich, Inst. of Energy Res., Systems Analysis and Technology Evaluation, Juelich (Germany); Horn, M. [DIW Berlin, Berlin (Germany); Matthes, C.; Graichen, V.; Harthan, R.O.; Repenning, J. [Oeko-Institut, Berlin (Germany)

2007-05-15

Prices of oil and other fossil fuels on global markets have reached a high level in recent years. These levels were not able to be reproduced on the basis of scenarios and prognoses that were published in the past. New scenarios, based on higher energy price trajectories, have appeared only recently. The future role of various energy carriers and technologies in energy-economic scenarios will greatly depend on the level of energy prices. Therefore, an analysis of the impact of high energy prices on long-term scenarios for Germany was undertaken. Based on a reference scenario with moderate prices, a series of consistent high price scenarios for primary and secondary energy carriers were developed. Two scenarios with (i) continuously rising price trajectories and (ii) a price shock with a price peak during the period 2010-15 and a subsequent decline to the reference level are analysed. Two types of models have been applied in the analysis. The IKARUS energy systems optimisation model covers the whole of the German energy system from primary energy supply down to the end-use sectors. Key results in both high price scenarios include a replacement of natural gas by hard coal and renewable energy sources in electricity and heat generation. Backstop technologies like coal liquefaction begin to play a role under such conditions. Up to 10% of final energy consumption is saved in the end-use sectors, with the residential and transport sector being the greatest contributors. Even without additional restrictions, CO{sub 2} emissions significantly drop in comparison to the reference scenario. The ELIAS electricity investment analysis model focuses on the power sector. In the reference scenario with current allocation rules in the emissions trading scheme, the CO{sub 2} emissions decrease relatively steadily. The development is characterised by the phaseout of nuclear energy which is counterweighted by the increase of renewable. In the high price scenario, the CO{sub 2

Environmental pricing of externalities from different sources of electricity generation in Chile

International Nuclear Information System (INIS)

Aravena, Claudia; Hutchinson, W. George; Longo, Alberto

2012-01-01

The rapid increase in electricity demand in Chile means a choice must be made between major investments in renewable or non-renewable sources for additional production. Current projects to develop large dams for hydropower in Chilean Patagonia impose an environmental price by damaging the natural environment. On the other hand, the increased use of fossil fuels entails an environmental price in terms of air pollution and greenhouse gas emissions contributing to climate change. This paper studies the debate on future electricity supply in Chile by investigating the preferences of households for a variety of different sources of electricity generation such as fossil fuels, large hydropower in Chilean Patagonia and other renewable energy sources. Using Double Bounded Dichotomous Choice Contingent Valuation, a novel advanced disclosure method and internal consistency test are used to elicit the willingness to pay for less environmentally damaging sources. Policy results suggest a strong preference for renewable energy sources with higher environmental prices imposed by consumers on electricity generated from fossil fuels than from large dams in Chilean Patagonia. Policy results further suggest the possibility of introducing incentives for renewable energy developments that would be supported by consumers through green tariffs or environmental premiums. Methodological findings suggest that advanced disclosure learning overcomes the problem of internal inconsistency in SB-DB estimates.

Energy intensities and the impact of high energy prices on producing and consuming sectors in Malaysia

OpenAIRE

Klinge Jacobsen, Henrik

2007-01-01

The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy as well as countries with a high degree of self-sufficiency. Examination of dependence on cheap energy sources for economic growth in different...

Energy prices, equalization and Canadian federalism : comparing Canada's energy price shocks

Energy Technology Data Exchange (ETDEWEB)

Courchene, T.J. [Queen' s Univ., Kingston, ON (Canada). School of Policy Studies; Institute for Research on Public Policy, Montreal, PQ (Canada)

2006-04-01

Revenues from natural resources during periods of high energy prices can create problems with the way the Canadian federal government distributes wealth through equalization. This paper traced the history of equalization in comparison with energy prices from the years 1973 to 2003. It was noted that the National Energy Program, section 92A of the Constitution, and the 5-province standard were all federal responses to initial energy price increases. It was suggested that current increases in energy prices demand a different response. The author examined a method of using the national average standard to calculate equalization payments as a means of eliminating the inequities created by the current 5-province standard, which excludes both Alberta and the Atlantic provinces. It was argued that the exclusion of Alberta's energy resources creates a false impression that other provinces such as British Columbia and Saskatchewan are rich in resources. It was suggested that fiscal imbalance between provinces is a significant challenge to the current Canadian government. New approaches to cash transfers to the provinces were discussed. A 2-tier equalization scheme was proposed that separated natural resource revenues from other revenues. It was concluded that the government's previous response to high energy prices will not be appropriate for addressing the current price shock. A 2-tier equalization scheme will mean that resource-rich provinces have an opportunity to participate more fully in federal decision-making. 53 refs., 3 figs.

Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources - A comparison of marginal pricing and pay-as-bid

International Nuclear Information System (INIS)

Nielsen, Steffen; Sorknaes, Peter; Ostergaard, Poul Alberg

2011-01-01

The long-term goal for Danish energy policy is to be free of fossil fuels through the increasing use of renewable energy sources (RES) including fluctuating renewable electricity (FRE). The Danish electricity market is part of the Nordic power exchange, which uses a Marginal Price auction system (MPS) for the day-ahead auctions. The market price is thus equal to the bidding price of the most expensive auction winning unit. In the MPS, the FRE bid at prices of or close to zero resulting in reduced market prices during hours of FRE production. In turn, this reduces the FRE sources' income from market sales. As more FRE is implemented, this effect will only become greater, thereby reducing the income for FRE producers. Other auction settings could potentially help to reduce this problem. One candidate is the pay-as-bid auction setting (PAB), where winning units are paid their own bidding price. This article investigates the two auction settings, to find whether a change of auction setting would provide a more suitable frame for large shares of FRE. This has been done with two energy system scenarios with different shares of FRE. From the analysis, it is found that MPS is generally better for the FRE sources. The result is, however, very sensitive to the base assumptions used for the calculations. -- Highlights: → In this study two different auction settings for the Danish electricity market are compared. → Two scenarios are used in the analyses, one representing the present system and one representing a future 100% renewable energy system. → We find that marginal price auction system is most suitable for supporting fluctuating renewable energy in both scenarios. → The results are very sensitive to the assumptions about bidding prices for each technology.

An Electricity Price-Aware Open-Source Smart Socket for the Internet of Energy

Science.gov (United States)

Blanco-Novoa, Óscar; Fernández-Caramés, Tiago M.; Fraga-Lamas, Paula; Castedo, Luis

2017-01-01

The Internet of Energy (IoE) represents a novel paradigm where electrical power systems work cooperatively with smart devices to increase the visibility of energy consumption and create safer, cleaner and sustainable energy systems. The implementation of IoE services involves the use of multiple components, like embedded systems, power electronics or sensors, which are an essential part of the infrastructure dedicated to the generation and distribution energy and the one required by the final consumer. This article focuses on the latter and presents a smart socket system that collects the information about energy price and makes use of sensors and actuators to optimize home energy consumption according to the user preferences. Specifically, this article provides three main novel contributions. First, what to our knowledge is the first hardware prototype that manages in a practical real-world scenario the price values obtained from a public electricity operator is presented. The second contribution is related to the definition of a novel wireless sensor network communications protocol based on Wi-Fi that allows for creating an easy-to-deploy smart plug system that self-organizes and auto-configures to collect the sensed data, minimizing user intervention. Third, it is provided a thorough description of the design of one of the few open-source smart plug systems, including its communications architecture, the protocols implemented, the main sensing and actuation components and the most relevant pieces of the software. Moreover, with the aim of illustrating the capabilities of the smart plug system, the results of different experiments performed are shown. Such experiments evaluate in real-world scenarios the system’s ease of use, its communications range and its performance when using HTTPS. Finally, the economic savings are estimated for different appliances, concluding that, in the practical situation proposed, the smart plug system allows certain energy

Hydrogen Production Costs of Various Primary Energy Sources

International Nuclear Information System (INIS)

Choi, Jae Hyuk; Tak, Nam Il; Kim, Yong Hee; Park, Won Seok

2005-11-01

Many studies on the economical aspects of hydrogen energy technologies have been conducted with the increase of the technical and socioeconomic importance of the hydrogen energy. However, there is still no research which evaluates the economy of hydrogen production from the primary energy sources in consideration of Korean situations. In this study, the hydrogen production costs of major primary energy sources are compared in consideration of the Korean situations such as feedstock price, electricity rate, and load factor. The evaluation methodology is based on the report of the National Academy of Science (NAS) of U.S. The present study focuses on the possible future technology scenario defined by NAS. The scenario assumes technological improvement that may be achieved if present research and development (R and D) programs are successful. The production costs by the coal and natural gas are 1.1 $/kgH 2 and 1.36 $/kgH 2 , respectively. However, the fossil fuels are susceptible to the price variation depending on the oil and the raw material prices, and the hydrogen production cost also depends on the carbon tax. The economic competitiveness of the renewable energy sources such as the wind, solar, and biomass are relatively low when compared with that of the other energy sources. The estimated hydrogen production costs from the renewable energy sources range from 2.35 $/kgH 2 to 6.03 $/kgH 2 . On the other hand, the production cost by nuclear energy is lower than that of natural gas or coal when the prices of the oil and soft coal are above $50/barrel and 138 $/ton, respectively. Taking into consideration the recent rapid increase of the oil and soft coal prices and the limited fossil resource, the nuclear-hydrogen option appears to be the most economical way in the future

Energy intensities and the impact of high energy prices on producing and consuming sectors in Malaysia

OpenAIRE

Klinge Jacobsen, Henrik

2007-01-01

The increase in oil prices has put pressure on the global economy. Even economies that have a high degree of self-sufficiency concerning oil products are experiencing rising production costs and price increases for households energy use. Therefore, changes in energy policies are under consideration for countries highly dependent on imported energy as well as countries with a high degree of self-sufficiency. Examination of dependence on cheap energy sources for economic growth in different eco...

Energy price uncertainty, energy intensity and firm investment

International Nuclear Information System (INIS)

Yoon, Kyung Hwan; Ratti, Ronald A.

2011-01-01

This paper examines the effect of energy price uncertainty on firm-level investment. An error correction model of capital stock adjustment is estimated with data on U.S. manufacturing firms. Higher energy price uncertainty is found to make firms more cautious by reducing the responsiveness of investment to sales growth. The result is robust to consideration of energy intensity by industry. The effect is greater for high growth firms. It must be emphasized that the direct effect of uncertainty is not estimated. Conditional variance of energy price is obtained from a GARCH model. Findings suggest that stability in energy prices would be conducive to greater stability in firm-level investment. (author)

Energy price disparity and public welfare

International Nuclear Information System (INIS)

Templet, P.H.

2001-01-01

The differences in the price of energy to economic sectors are linked to a number of system parameters and to public welfare. There are large disparities in energy prices within states when comparing residential and industrial prices although neoclassical economics predicts one price in markets. The large disparities between the two sectors across states negatively affects the efficiency of resource allocation, creates subsidies for those getting the cheap energy and results in unequal access to energy. These in turn lead to inefficient partitioning of energy between products and waste, higher pollution, leakage of wealth and poorer energy use efficiency, i.e. high energy intensity. States with large energy price disparities between sectors have statistically higher poverty, lower incomes, more pollution and use more energy but with less efficiency. Higher energy price disparities also result in higher throughput per unit of output thus reducing the chances for sustainability and lower public welfare. 31 refs

Energy prices, equalization and federalism

International Nuclear Information System (INIS)

Courchene, T.J.

2005-01-01

A rise in oil prices over the last 30 years has shaped the debate on the equalization formula as well as the nature of fiscal federalism. The oil shocks of 1973 and 1979 contributed to the creation of the National Energy Program (NEP) in 1980 and the Energy Pricing and Taxation Agreement (EPTA) between Ottawa and Alberta in 1981. The current surge in oil prices, to recent highs of $70 a barrel has resulted in a new debate on energy pricing, equalization and fiscal frameworks. This article presented a review of the history of oil and federalism, and proposed a remedy to the horizontal fiscal imbalance by allocating the fixed equalization pool in accordance with fiscal capacity disparities relating to non-resource revenues. An interprovincial revenue-sharing pool was suggested for resource revenues, agreed to and operated by the provinces. It was suggested that after the price spike in 1973 in which the price of oil tripled, a key part of the rationale for imposing export taxes on oil equal to the difference between domestic and world prices was that the federal government could subsidize oil imports into eastern Canada and maintain a uniform domestic price across the country. By continuing to subsidize imports and maintaining a domestic price below the world price, the government has been diverting potential energy revenues from energy-rich provinces and transferring them directly to Canadians in terms of subsidized energy prices. It was noted that energy price surges cannot send equalization payments soaring as they did before because of the 2004 Framework Agreement, in which the overall equalization will be increased to $10.9 billion. A 2-tier approach to equalization was presented, in which it was suggested that the $10.9 billion pool should be allocated with fiscal capacity disparities relating to non-resource revenues. The creation of a revenue sharing pool for resource revenues was recommended. It was suggested that the 2 approaches will result in a strategic

Energy prices, equalization and federalism

Energy Technology Data Exchange (ETDEWEB)

Courchene, T.J. [Queen' s Univ., Kingston, ON (Canada). School of Policy Studies

2005-10-01

A rise in oil prices over the last 30 years has shaped the debate on the equalization formula as well as the nature of fiscal federalism. The oil shocks of 1973 and 1979 contributed to the creation of the National Energy Program (NEP) in 1980 and the Energy Pricing and Taxation Agreement (EPTA) between Ottawa and Alberta in 1981. The current surge in oil prices, to recent highs of $70 a barrel has resulted in a new debate on energy pricing, equalization and fiscal frameworks. This article presented a review of the history of oil and federalism, and proposed a remedy to the horizontal fiscal imbalance by allocating the fixed equalization pool in accordance with fiscal capacity disparities relating to non-resource revenues. An interprovincial revenue-sharing pool was suggested for resource revenues, agreed to and operated by the provinces. It was suggested that after the price spike in 1973 in which the price of oil tripled, a key part of the rationale for imposing export taxes on oil equal to the difference between domestic and world prices was that the federal government could subsidize oil imports into eastern Canada and maintain a uniform domestic price across the country. By continuing to subsidize imports and maintaining a domestic price below the world price, the government has been diverting potential energy revenues from energy-rich provinces and transferring them directly to Canadians in terms of subsidized energy prices. It was noted that energy price surges cannot send equalization payments soaring as they did before because of the 2004 Framework Agreement, in which the overall equalization will be increased to $10.9 billion. A 2-tier approach to equalization was presented, in which it was suggested that the $10.9 billion pool should be allocated with fiscal capacity disparities relating to non-resource revenues. The creation of a revenue sharing pool for resource revenues was recommended. It was suggested that the 2 approaches will result in a strategic

The impacts of energy prices on energy intensity: Evidence from China

International Nuclear Information System (INIS)

Hang, Leiming; Tu, Meizeng

2007-01-01

In this paper, we present a review of the deregulation of energy prices in China between 1985 and 2004 and assess the impacts of changes in energy prices on aggregate energy intensity and coal/oil/electricity intensity. We used time series data to provide estimates of energy price elasticities. Empirical results showed that: (1) The own-price elasticities of coal, oil, and aggregate energy were negative in periods both before and after 1995, implying that higher relative prices of different energy types lead to the decrease in coal, oil, and aggregate energy intensities. However, the positive own-price elasticity of electricity after 1995 probably indicates that the price effect was weaker than other factors such as income effect and population effect. (2) The impacts of energy prices were asymmetric over time. (3) Sectoral adjustment also drove the decrease in aggregate energy intensity. Although raising energy prices to boost efficiency of energy use seems to be an effective policy tool, other policy implications concerned with energy prices, such as energy supply security and fuel poverty, must also be considered

Micro-energy markets: The role of a consumer preference pricing strategy on microgrid energy investment

International Nuclear Information System (INIS)

Faber, Isaac; Lane, William; Pak, Wayne; Prakel, Mary; Rocha, Cheyne; Farr, John V.

2014-01-01

The fragility of the modern electrical grid is exposed during random events such as storms, sporting events and often simply routine operation. Even with these obvious flaws large utilities and governments have been slow to create robust solutions due to the need of large capital investments required to address the issues. In this light creative economic and engineering solutions are desired to finance the needed upgrades. Driven by the requirement to have uninterrupted power that meets customers desires this research focuses on linking consumer preferences to a type of energy source in order to best fulfill stakeholder priorities. This approach is in contrast to the current and prevalent lowest cost methods to producing and consuming energy. This research yields a preliminary ‘micro-energy market’ that consists of an energy network architecture, pricing methodology and mathematical template which quantifies potential economic inefficiencies. If exploited these inefficiencies could be used to fund investment into various energy sources that provide unmet needs such as reduced carbon footprint, renewable, quality, and local production. These inefficiencies can be best exploited within the structure of a microgrid. Identification of opportunities on this smaller scale can provide an incentive for producers to develop a robust set of production facilities of varying size and characteristics to meet the consumer preferences. A stochastic optimization model of a microgrid implementation for a small military installation is used to evaluate the effects of this pricing methodology. The energy production of the resulting microgrid would be optimized to meet consumer preferences and minimize economic inefficiency. - Highlights: • This research focuses on linking consumer preferences to a type of energy source. • Pricing methodology quantifies strategic investments in alternative sources. • Inefficiencies could be used to fund investment into various energy sources

Multi-factor energy price models and exotic derivatives pricing

Science.gov (United States)

Hikspoors, Samuel

The high pace at which many of the world's energy markets have gradually been opened to competition have generated a significant amount of new financial activity. Both academicians and practitioners alike recently started to develop the tools of energy derivatives pricing/hedging as a quantitative topic of its own. The energy contract structures as well as their underlying asset properties set the energy risk management industry apart from its more standard equity and fixed income counterparts. This thesis naturally contributes to these broad market developments in participating to the advances of the mathematical tools aiming at a better theory of energy contingent claim pricing/hedging. We propose many realistic two-factor and three-factor models for spot and forward price processes that generalize some well known and standard modeling assumptions. We develop the associated pricing methodologies and propose stable calibration algorithms that motivate the application of the relevant modeling schemes.

Energy at what price? Energy markets

International Nuclear Information System (INIS)

Favennec, J.P.; Amic, E.; Darmois, G.

2006-01-01

In 2005, the whole world had to stand a real energy shock due to the rise of oil, gas and electricity prices. The perspective of a possible shortage, even at the prospect of several decades, has led to a deep change of the world energy market. In this context, this book supplies a clear and didactical presentation of the mechanisms of petroleum, gas and electricity markets, with their advantages and limitations. At the time of a globalization of economy, the book analyzes the consequences of markets deregulation on the energy prices and tries to answer several main questions: why such a price volatility? Who will take the risk of investing now? Will the energy actors of the present day concentration be in a dominating position? Content: 1 - energy, markets and energy markets; 2 - crude oil and petroleum product markets; 3 - gas markets; 4 - electric power markets; 5 - perspectives. Glossary. Index. (J.S.)

The impact of high energy prices in Central American households

Energy Technology Data Exchange (ETDEWEB)

Cuesta, Ana; Manzano, Osmel

2010-09-15

Central American countries have one the highest energy costs in Latin America. We look at the potential social impact of higher energy prices using household data. Depending on a portfolio of characteristics, higher energy prices could have significant impact on the poor purchasing power. In countries like Guatemala, the poorest could see a higher impact than the richest. In Mexico and Panama, the impact is higher for the 'lower middle class'. We measure indirect effects of lack of energy sources, we conclude that children that live in households that cook with fossil fuels are subject to attend less to school.

The impact of high energy prices in Central American households

Energy Technology Data Exchange (ETDEWEB)

Cuesta, Ana; Manzano, Osmel

2010-09-15

Central American countries have one the highest energy costs in Latin America. We look at the potential social impact of higher energy prices using household data. Depending on a portfolio of characteristics, higher energy prices could have significant impact on the poor purchasing power. In countries like Guatemala, the poorest could see a higher impact than the richest. In Mexico and Panama, the impact is higher for the 'lower middle class'. We measure indirect effects of lack of energy sources, we conclude that children that live in households that cook with fossil fuels are subject to attend less to school.

Equitable Prices of Single-Source Drugs in Thailand.

Science.gov (United States)

Ngorsuraches, Surachat; Chaiyakan, Kanokkan

2015-08-01

In Thailand, total drug expenditure has grown rapidly. Recently, the Thai government has addressed the issue of drug pricing, but the prices of single-source drugs remain a major challenge. To examine equitable prices of single-source drugs in Thailand. A total of 98 single-source and high-expenditure drugs were examined. Unit prices from the Drug and Medical Supplies Information Center (DMSIC) and National Average Drug Acquisition Cost (NADAC) were used to represent drug prices at the provider level in Thailand and the U.S., respectively. Data for measuring drug affordability, e.g., dose and poverty line, were obtained from Micromedex online and the National Statistical Office (NSO). The U.S. drug prices were adjusted by the Human Development Index (HDI) to be equitable prices for Thailand. Purchasing Power Parity (PPP) was used to convert US currency into Thai baht. All prices in this study were based on the year 2012. Catastrophic, Impoverishment, and WHO/Health Action International (HAI) approaches were used to determine Thai citizens' ability to afford the study drugs. Finally, uncertainty analyses were conducted. From all study drugs, 55 single-source drugs were priced higher than their equitable prices, ranging from 0.38 to 422.36% higher. Among these, 28 items were antineoplastic drugs. The prices of drugs outside the National List of Essential Medicines (NLEM), as well as the country's newer drugs, tended to be higher than their calculated equitable prices. The majority of drugs in Thailand priced higher than equitable prices were unaffordable for most Thai citizens. The uncertainty analyses revealed that almost all results were relatively robust. Most single-source drug prices in Thailand were higher than their equitable prices, and were likely to be unaffordable to Thai citizens.

Promoting nuclear energy: market price or regulated tariffs? - 5042

International Nuclear Information System (INIS)

Percebois, J.

2015-01-01

Because of its negative effects, the scheme for aiding renewable energies presently in force in Europe is likely to penalise investments in nuclear energy. The F.I.T. system is a costly mechanism and a source of perverse effects as a switching of the merit order curve on the spot electricity market (with sometimes negative prices). Restoring an equity and 'equal opportunity' for nuclear energy in Europe needs to implement a 'Contract for Differences' scheme for nuclear energy, like the model now gaining favour in the U.K. The contract for differences signed between EDF and the UK government means that if the wholesale price that EDF secures for Hinckley's power falls below the index-linked preset value, the difference will be covered by payments from the UK government. It appears that nuclear power has weakened in Europe by the system of guaranteed purchase prices for renewable energies. Moreover this system is costly. New fairer rules must be implemented in the market. Either the market is left on its own to send the signals to all investors (including renewable energies), or a minimum of regulation is introduced in order to limit the costly surges of under and over capacity. But in the latter case it is necessary to treat all the energy sources in an equal way and guarantee the nuclear industry that it will also recover its fixed costs over the long term)

Energy pricing under uncertain supply

International Nuclear Information System (INIS)

Serra, P.J.

1997-01-01

This paper introduces a new pricing system - based on the Chilean tariff regulations - to deal with an uncertain energy supply. It consists of a basic rate for each unit actually consumed and a compensation that the utilities pay their customers for each unit of energy that they voluntarily reduce below their normal consumption during an energy shortage. Within the framework of a model that portrays the stylized facts of the Chilean electric system, and assumes risk-neutral agents, this paper shows the equivalency of the new pricing system with both contingent pricing and priority pricing. (Author)

Energy efficieny policy and carbon pricing

Energy Technology Data Exchange (ETDEWEB)

Ryan, Lisa; Moarif, Sara; Levina, Ellina; Baron, Richard

2011-08-15

The main message of this paper is that while carbon pricing is a prerequisite for least-cost carbon mitigation strategies, carbon pricing is not enough to overcome all the barriers to cost-effective energy efficiency actions. Energy efficiency policy should be designed carefully for each sector to ensure optimal outcomes for a combination of economic, social and climate change goals. This paper aims to examine the justification for specific energy efficiency policies in economies with carbon pricing in place. The paper begins with an inventory of existing market failures that attempt to explain the limited uptake of energy efficiency. These market failures are investigated to see which can be overcome by carbon pricing in two subsectors -- electricity use in residential appliances and heating energy use in buildings. This analysis finds that carbon pricing addresses energy efficiency market failures such as externalities and imperfect energy markets. However, several market and behavioural failures in the two subsectors are identified that appear not to be addressed by carbon pricing. These include: imperfect information; principal-agent problems; and behavioural failures. In this analysis, the policies that address these market failures are identified as complementary to carbon pricing and their level of interaction with carbon pricing policies is relatively positive. These policies should be implemented when they can improve energy efficiency effectively and efficiently (and achieve other national goals such as improving socio-economic efficiency).

Energy Efficiency Policy and Carbon Pricing

Energy Technology Data Exchange (ETDEWEB)

NONE

2011-07-01

The main message of this paper is that while carbon pricing is a prerequisite for least-cost carbon mitigation strategies, carbon pricing is not enough to overcome all the barriers to cost-effective energy efficiency actions. Energy efficiency policy should be designed carefully for each sector to ensure optimal outcomes for a combination of economic, social and climate change goals. This paper aims to examine the justification for specific energy efficiency policies in economies with carbon pricing in place. The paper begins with an inventory of existing market failures that attempt to explain the limited uptake of energy efficiency. These market failures are investigated to see which can be overcome by carbon pricing in two subsectors -- electricity use in residential appliances and heating energy use in buildings. This analysis finds that carbon pricing addresses energy efficiency market failures such as externalities and imperfect energy markets. However, several market and behavioural failures in the two subsectors are identified that appear not to be addressed by carbon pricing. These include: imperfect information; principal-agent problems; and behavioural failures. In this analysis, the policies that address these market failures are identified as complementary to carbon pricing and their level of interaction with carbon pricing policies is relatively positive. These policies should be implemented when they can improve energy efficiency effectively and efficiently (and achieve other national goals such as improving socio-economic efficiency).

Rise of oil prices and energy policy

International Nuclear Information System (INIS)

2005-01-01

This document reprints the talk of the press conference given by D. de Villepin, French prime minister, on August 16, 2005 about the alarming rise of oil prices. In his talk, the prime minister explains the reasons of the crisis (increase of worldwide consumption, political tensions in the Middle East..) and presents the strategy and main trends of the French energy policy: re-launching of energy investments in petroleum refining capacities and in the nuclear domain (new generation of power plants), development of renewable energy sources and in particular biofuels, re-launching of the energy saving policy thanks to financial incentives and to the development of clean vehicles and mass transportation systems. In a second part, the prime minister presents his policy of retro-cession of petroleum tax profits to low income workers, and of charge abatement to professionals having an occupation strongly penalized by the rise of oil prices (truckers, farmers, fishermen, taxi drivers). (J.S.)

State energy-price system: 1981 update

Energy Technology Data Exchange (ETDEWEB)

Fang, J.M.; Imhoff, K.L.; Hood, L.J.

1983-08-01

This report updates the State Energy Price Data System (STEPS) to include state-level energy prices by fuel and by end-use sectors for 1981. Both physical unit prices and Btu prices are presented. Basic documentation of the data base remains generally the same as in the original report: State Energy Price System; Volume 1: Overview and Technical Documentation (DOE/NBB-0029 Volume 1 of 2, November 1982). The present report documents only the changes in procedures necessitated by the update to 1981 and the corrections to the basic documentation.

Energy transition. A complete view on costs, performance, flexibility and prices of energies - Journal nr 11

International Nuclear Information System (INIS)

Boncorps, Jean-Claude; Larzilliere, Marc; Bomo, Nicole; Bruder, Michel; Buscailhon, Jean-Marie; Cappe, Daniel; DobiaS, Georges; Fregere, Jean-Pierre; Garipuy, Yves; Hougueres, Gerard; Martin, Jean-Loup; Mollard, Dominique; Moncomble, Jean-Eudes; Wiltz, Bruno; Roudier, Jacques

2013-02-01

This publication aims at proposing information on the issues of energy prices, of energy production costs and of energy delivery costs, and at showing their complexity while clearing up some wrong ideas about them. After an introduction on the addressed problematic, on information sources and on uncertainties, the authors give a general overview of the definitions of a cost, of a price, of primary, secondary and final energies, of user diversity and energy demand variation in time, of energy production variations in time, and present energy taxing in France and in the European Union, the CO 2 market, and energy savings in France in various sectors (transports, buildings, industry). Then, they address the various primary energies (coal, oil, natural gas, biomass, geothermal heat, thermal solar) and secondary energies (nuclear, hydroelectricity, ground-based wind energy, renewable sea energies, geothermal electricity, electricity grids, heat networks and co-generation) and discuss for each or some of them issues like: world market, costs and pricing, perspectives, resources and constraints, technologies

Energy trading and pricing in microgrids with uncertain energy supply

DEFF Research Database (Denmark)

Ma, Kai; Hu, Shubing; Yang, Jie

2017-01-01

This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE) generation (wind power) determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profi....... In particular, the uncertainty of the energy supply from the energy provider is considered. Simulation results show that the energy provider can obtain more profit using the proposed decision-making scheme.......This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE) generation (wind power) determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profit...

International Energy Prices(Exchange Rate and PPP)

Energy Technology Data Exchange (ETDEWEB)

Jo, Sung Han; Yoo, Dong Heon [Korea Energy Economics Institute, Euiwang (Korea)

2000-11-01

Energy is to be specially important to the Korean economy. In the past the major purpose of Korea's energy policies was to ensure that the energy was supplied at the low cost to encourage and sustain economic development and growth. Therefore, energy prices are distorted by government intervention. And this was the cause of inefficiency in usage of energy. In order to improve the energy efficiency and reduce the environmental impact of energy consumption, new energy pricing should be needed to the energy industry and the Korean economy. It is necessary to compare the domestic energy prices with other countries to improve the energy pricing system including tax, the relative structure of energy price, etc. In order to compare the domestic energy prices to those of other countries, the exchange rate, purchasing power parity and Big Mac index are used for calculation of common currency. We select 12 countries, which are Belgium, France, Germany, Greece, Ireland, Italy, Portugal, Spain, Switzerland, Taiwan, Mexico and England. The oil products(gasoline, diesel, heavy fuel oil and light fuel oil), natural gas and electricity are selected to compare the price. (author). 12 refs., 13 tabs.

Renewable Energy and Electricity Prices in Spain

OpenAIRE

Liliana Gelabert; Xavier Labandeira; Pedro Linares

2011-01-01

Growing concerns about climate change and energy dependence are driving specific policies to support renewable or more efficient energy sources in many regions, particularly in the production of electricity. These policies have a non-negligible cost, and therefore a careful assessment of their impacts seems necessary. In particular, one of the most-debated impacts is their effect on electricity prices, for which there have been some ex-ante studies, but few ex-post studies. This article prese...

Effects of stochastic energy prices on long-term energy-economic scenarios

International Nuclear Information System (INIS)

Krey, Volker; Martinsen, Dag; Wagner, Hermann-Josef

2007-01-01

In view of the currently observed energy prices, recent price scenarios, which have been very moderate until 2004, also tend to favor high future energy prices. Having a large impact on energy-economic scenarios, we incorporate uncertain energy prices into an energy systems model by including a stochastic risk function. Energy systems models are frequently used to aid scenario analysis in energy-related studies. The impact of uncertain energy prices on the supply structures and the interaction with measures in the demand sectors is the focus of the present paper. For the illustration of the methodological approach, scenarios for four EU countries are presented. Including the stochastic risk function, elements of high energy price scenarios can be found in scenarios with a moderate future development of energy prices. In contrast to scenarios with stochastic investment costs for a limited number of technologies, the inclusion of stochastic energy prices directly affects all parts of the energy system. Robust elements of hedging strategies include increasing utilization of domestic energy carriers, the use of CHP and district heat and the application of additional energy-saving measures in the end-use sectors. Region-specific technology portfolios, i.e., different hedging options, can cause growing energy exchange between the regions in comparison with the deterministic case. (author)

End user prices in liberalised energy markets

Energy Technology Data Exchange (ETDEWEB)

Lijesen, M.G. [Afdeling Energie en Grondstoffen, Centraal Planbureau CPB, Den Haag (Netherlands)

2002-12-01

As European energy markets move towards deregulation, energy prices shift from classic 'cost plus' prices towards market prices. We develop a model for the retail and wholesale energy markets in Europe, based on Bertrand competition in a two part pricing structure with switching costs. We use the model to forecast end user electricity and natural gas prices and find that the introduction of competition in energy retail and wholesale markets will decrease standing charges, lowering total costs for energy users. A larger number of entrants, a cost advantage for one of the suppliers, or lower switching costs reduces standing charges further.

Energy prices and the promotion of energy conservation. A background study for energy conservation programme

International Nuclear Information System (INIS)

1994-01-01

The prices of fuels in the international markets affect the development of consumer prices of energy in Finland. In the near future no factors can be foreseen, which would cause major increases in the prices of oil, coal or gas. It can thus not be expected that increased fuel prices would motivate more efficient energy conservation. In international comparison, consumer prices of energy have been relatively low in Finland. This applies especially to electricity. After the removal of price controls, energy prices have been determined by the markets. The influence of the public authorities in energy pricing is put into effect through taxation. The price of energy has a fairly small effect on energy consumption in a short term, but longer term effects are more significant. Energy products are faxed in all western countries. (orig.)

Tomorrow's Energy Prices: An Analysis of System, Actors and Shaping Factors. Crude price drop and its consequences

International Nuclear Information System (INIS)

Chevalier, Jean-Marie; Chauvin, Dominique

2017-01-01

If one sector in recent decades has been a byword for how difficult it is to anticipate future developments at the global level, it has been the energy sector. We have seen fears over the dangers of a hydrocarbon shortage, the announcement of 'peak oil' and a boom in shale gas and oil. Forecasts based on major trends within the field have been revised as non-conventional sources with a substantial impact on price levels have emerged. Added to this is the need to confront climate change and hence to revamp our modes of energy production to give an enhanced role to renewables. In such a context, as Jean-Marie Chevalier stresses here, it is quite tricky to say how energy prices will develop or how energy production systems will change. This is why, in addition to the overview of possible developments in the prices of oil, natural gas and coal which this article provides, it particularly stresses the many elements of uncertainty that still prevail. Chevalier demonstrates the multiplicity of factors - and actor - involved in the way energy systems and prices develop and highlights the key elements that will play a role in enhancing or curbing those developments in the medium-to-long term. (author)

Quantifying the value that energy efficiency and renewable energy provide as a hedge against volatile natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Bachrach, Devra; Golove, William

2002-05-15

Advocates of energy efficiency and renewable energy have long argued that such technologies can mitigate fuel price risk within a resource portfolio. Such arguments--made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001--have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that these sources provide. In evaluating this benefit, it is important to recognize that alternative price hedging instruments are available--in particular, gas-based financial derivatives (futures and swaps) and physical, fixed-price gas contracts. Whether energy efficiency and renewable energy can provide price stability at lower cost than these alternative means is therefore a key question for resource acquisition planners. In this paper we evaluate the cost of hedging gas price risk through financial hedging instruments. To do this, we compare the price of a 10-year natural gas swap (i.e., what it costs to lock in prices over the next 10 years) to a 10-year natural gas price forecast (i.e., what the market is expecting spot natural gas prices to be over the next 10 years). We find that over the past two years natural gas users have had to pay a premium as high as $0.76/mmBtu (0.53/242/kWh at an aggressive 7,000 Btu/kWh heat rate) over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost to hedge gas price risk exposure is potentially large enough - particularly if incorporated by policymakers and regulators into decision-making practices - to tip the scales away from new investments in variable-price, natural gas-fired generation and in favor of fixed-price investments in energy efficiency and renewable energy.

Quantifying the value that energy efficiency and renewable energy provide as a hedge against volatile natural gas prices

International Nuclear Information System (INIS)

Bolinger, Mark; Wiser, Ryan; Bachrach, Devra; Golove, William

2002-01-01

Advocates of energy efficiency and renewable energy have long argued that such technologies can mitigate fuel price risk within a resource portfolio. Such arguments-made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001-have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that these sources provide. In evaluating this benefit, it is important to recognize that alternative price hedging instruments are available-in particular, gas-based financial derivatives (futures and swaps) and physical, fixed-price gas contracts. Whether energy efficiency and renewable energy can provide price stability at lower cost than these alternative means is therefore a key question for resource acquisition planners. In this paper we evaluate the cost of hedging gas price risk through financial hedging instruments. To do this, we compare the price of a 10-year natural gas swap (i.e., what it costs to lock in prices over the next 10 years) to a 10-year natural gas price forecast (i.e., what the market is expecting spot natural gas prices to be over the next 10 years). We find that over the past two years natural gas users have had to pay a premium as high as$0.76/mmBtu (0.53/242/kWh at an aggressive 7,000 Btu/kWh heat rate) over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost to hedge gas price risk exposure is potentially large enough - particularly if incorporated by policymakers and regulators into decision-making practices - to tip the scales away from new investments in variable-price, natural gas-fired generation and in favor of fixed-price investments in energy efficiency and renewable energy

Easing the natural gas crisis: Reducing natural gas prices through increased deployment of renewable energy and energy efficiency

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark; St. Clair, Matt

2004-12-21

Heightened natural gas prices have emerged as a key energy-policy challenge for at least the early part of the 21st century. With the recent run-up in gas prices and the expected continuation of volatile and high prices in the near future, a growing number of voices are calling for increased diversification of energy supplies. Proponents of renewable energy and energy efficiency identify these clean energy sources as an important part of the solution. Increased deployment of renewable energy (RE) and energy efficiency (EE) can hedge natural gas price risk in more than one way, but this paper touches on just one potential benefit: displacement of gas-fired electricity generation, which reduces natural gas demand and thus puts downward pressure on gas prices. Many recent modeling studies of increased RE and EE deployment have demonstrated that this ''secondary'' effect of lowering natural gas prices could be significant; as a result, this effect is increasingly cited as justification for policies promoting RE and EE. This paper summarizes recent studies that have evaluated the gas-price-reduction effect of RE and EE deployment, analyzes the results of these studies in light of economic theory and other research, reviews the reasonableness of the effect as portrayed in modeling studies, and develops a simple tool that can be used to evaluate the impact of RE and EE on gas prices without relying on a complex national energy model. Key findings are summarized.

Energy Prices and Internal Costs in Croatian Energy System Restructuring

International Nuclear Information System (INIS)

Potocnik, V. , Magdic, M.

1995-01-01

After social and political changes in 1990, energy prices in Croatia have been getting closer to the West European averages, faster than in the most European countries in transition. The energy prices for industry are almost at the West European level, while the energy prices of electricity and natural gas for households and those of the gasoline are well behind. If the population purchasing power parity (PPP) is taken into account, these relations change. While the internalization of external energy costs is under way in the developed world, it has not practically started yet in Croatia. The Croatian energy system restructuring shall require gradual adjustment of energy prices, together with multistage internalization of external energy costs. (author). 6 refs., 3 tabs., 2 figs

International crude oil prices and the stock prices of clean energy and technology companies: Evidence from non-linear cointegration tests with unknown structural breaks

International Nuclear Information System (INIS)

Bondia, Ripsy; Ghosh, Sajal; Kanjilal, Kakali

2016-01-01

Increasing greenhouse gas emissions, exhaustibility and geo-politics induced price volatility of crude oil has magnified the importance of looking for alternative sources of energy. In this paper, we investigate the long term relationship of stock prices of alternative energy companies with oil prices in a multivariate framework. To this end, we use threshold cointegration tests, which endogenously incorporate possible regime shifts in long run relationship of underlying variables. In contrast to the findings of the previous study by Managi and Okimoto (2013), our results indicate presence of cointegration among the variables with two endogenous structural breaks. This study confirms that ignoring the presence of structural breaks in a long time series data, as has been done in previous study, can produce misleading results. In terms of causality, while the stock prices of alternative energy companies are impacted by technology stock prices, oil prices and interest rates in the short run, there is no causality running towards prices of alternative energy stock prices in the long run. The study discusses the possible reasons behind the empirical findings and concludes with a discussion on short run and long run investment opportunities for the investors. - Highlights: • Cointegration between alternative energy companies stock price and oil price. • Threshold cointegration tests are employed. • Cointegration among the variables exists with two endogenous structural breaks. • Alternative energy companies stock price impacted by oil prices in short run. • No causality running towards prices of alternative energy stock prices in long run.

DCCA analysis of renewable and conventional energy prices

Science.gov (United States)

Paiva, Aureliano Sancho Souza; Rivera-Castro, Miguel Angel; Andrade, Roberto Fernandes Silva

2018-01-01

Here we investigate the inter-influence of oil prices and renewable energy sources. The non-stationary time series are scrutinized within the Detrended Cross-Correlation Analysis (DCCA) framework, where the resulting DCCA coefficient provides a useful and reliable index to the evaluate the cross correlation between events at the same time instant as well as at a suitably chosen time lags. The analysis is based on the quotient of two successive daily closing oil prices and composite indices of renewable energy sources in USA and Europe in the period 2006-2015, which was subject to several social and economic driving forces, as the increase of social pressure in favor of the use of non-fossil energy sources and the worldwide economic crisis that started in 2008. The DCCA coefficient is evaluated for different window sizes, extracting information for short and long term correlation between the indices. Particularly, strong correlation between the behavior of the two distinct economic sectors are observed for large time intervals during the worst period of the economic crisis (2008-2012), hinting at a very cautious behavior of the economic agents. Before and after this period, the behavior of two economic sectors are overwhelmingly uncorrelated or very weakly correlated. The results reported here may be useful to select proper strategies in future similar scenarios.

Energy pricing and implications for the Nigerian environment

International Nuclear Information System (INIS)

Iwayemi, A.

1999-01-01

Energy pricing has been shown to have direct impact on energy demand and hence on energy efficiency. Regulated pricing which is below actual production price encourages inefficient use of energy with sometimes associated environmental problems. The important consideration presently being given to development of energy in an environmentally safe and economically prosperous society implies that energy pricing an play an important role in achieving these objectives

Empirical assessment of energy-price policies: the case for cross-price elasticities

International Nuclear Information System (INIS)

Frondel, M.

2004-01-01

Evaluations of energy-price policies are necessarily based on measures of the substitution of energy and non-energy inputs. Facing a variety of substitution elasticities, the central question arises which measure would be appropriate. Apparently, for a long time, this question has not been at issue: Allen's elasticities of substitution (AES) have been the most-used measures in applied production analysis. This paper's main contribution is an instructive survey of the origin of substitution measures and of the trinity of empirical substitution elasticities-AES, cross-price elasticities, and the Morishima elasticities of substitution (MES)-with particular emphasis on their interpretations and the perspectives that will be captured by these measures. This survey clarifies why classical cross-price elasticities are to be preferred for many practical purposes. Berndt and Wood's (Rev. Econom. Stat. 57(1975) 259) frequently applied data set of US manufacturing is used to illustrate why assessments of energy-price policies would be better based on cross-price elasticities like the energy-price elasticity of capital, rather than on AES or MES. (author)

Empirical assessment of energy-price policies: the case for cross-price elasticities

International Nuclear Information System (INIS)

Frondel, Manuel

2004-01-01

Evaluations of energy-price policies are necessarily based on measures of the substitution of energy and non-energy inputs. Facing a variety of substitution elasticities, the central question arises which measure would be appropriate. Apparently, for a long time, this question has not been at issue: Allen's elasticities of substitution (AES) have been the most-used measures in applied production analysis. This paper's main contribution is an instructive survey of the origin of substitution measures and of the trinity of empirical substitution elasticities - AES, cross-price elasticities, and the Morishima elasticities of substitution (MES) - with particular emphasis on their interpretations and the perspectives that will be captured by these measures. This survey clarifies why classical cross-price elasticities are to be preferred for many practical purposes. Berndt and Wood's (Rev. Econom. Stat. 57 (1975) 259) frequently applied data set of US manufacturing is used to illustrate why assessments of energy-price policies would be better based on cross-price elasticities like the energy-price elasticity of capital, rather than on AES or MES

Energy markets and price relations

International Nuclear Information System (INIS)

Bergendahl, P.A.

1986-10-01

The aim of the report is to elucidate the way and extent of the dependence of the price of different energy species of one another and particularly of crude oil prices. Oil, coal and natural gas can substitute each other at many applications. The prices are dependent on mining, processing and transporting. Forecasting of prices and future trends are discussed

Correlations between energy economy and housing market prices in the EU-impacts on future sustainability

Directory of Open Access Journals (Sweden)

Maassen Maria Alexandra

2017-07-01

Full Text Available The global economic system is facing multiple challenges in terms of social development, technology and innovation, as well as sustainability needs. As a result, the value of existing assets is changing globally depending on the scarcity, necessity and effects on the business field leading to increased prices of traditional sources of energy and increased competition in the economic field. Thus, the EU energy market has progressed in reducing its dependence on external energy sourcing, by increasing production of renewable energy, such as wind or solar, as well as by further integration of the electric grid. Based on the Pearson coefficient this article intends to research the correlations between the economic, energy and house prices in recent years and the future possible impacts depending on their evolution. For example, gas prices in the past decade increasing household costs in most countries due to the dependence on third parties for energy, lead to the need of increasing the share of renewable energy in total energy consumption, which have consequently decreased electricity prices since 2008. However, this development has still not solved the additional costs issue of households due to the new technologies implemented although wind and solar energy receive in general low margins. Such energy issues, as well as the increased housing prices after the financial crisis in 2008 have caused on their own an additional burden on the economy and households spending income in the next years following.

Renewable energies and their effect on electricity prices: the case of the German nuclear phase-out

Energy Technology Data Exchange (ETDEWEB)

Comtesse, Daniel; Schroeer, Sebastian

2010-07-01

plants. The price effect therefore highly depends on the cost structure of the back-up power plants. In our article we use the example of the nuclear-phase out in Germany. This analysis is particularly in the current economic and political context relevant: while on the one hand in Germany, a country committed so far to a nuclear phase-out until 2020, the new government seems to reconsider this initial plan, on the other hand, worldwide we experience a fall in the share of nuclear power plants - with more nuclear power plants being closed than new ones build. Data and methodology Our analysis of price effects is based on spot market outcomes. Though only a minority of the market volume is traded at the spot markets, spot market prices have a strong impact on future transactions and bilateral contracts. In line with this idea, spot market prices are a good measurement for price effects. We use a basic spot market model, where the merit-order supply function aggregates different energy sources according to their marginal cost. This leads to an upward sloping supply function. We model the supply side by a stylized power plant fleet using International Energy Agency (IEA) data on marginal costs. Since in reality consumers can not change their usage grid and do not change their behaviour in the short run, the demand function is for simplicity assumed to be perfectly inelastic. We use data of the European Energy Exchange (EEX) on an hourly basis to model electricity demand. Based on comparative statics, we develop different scenarios and check for different base load capacities of renewable energies. The basic assumption of all scenarios is the substitutability of nuclear power plants by renewable energy sources. In order to show the effects of a nuclear phaseout against fluctuations of base load capacity of renewable energies, several back-up scenarios for base load capacity with other energy sources are developed. These scenarios contain extreme case settings in order to

The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms

International Nuclear Information System (INIS)

Moreno, Blanca; López, Ana J.; García-Álvarez, María Teresa

2012-01-01

The European Union electricity market has been gradually liberalized since 1990s. Theoretically, competitive markets should lead to efficiency gains in the economy thus reducing electricity prices. However, there is a controversial debate about the real effects of the electricity liberalization on electricity prices. Moreover, the increased generation of electricity from renewable energies RES-E (Electricity from Renewable Energy Sources) is also integrated in wholesale market reducing wholesale prices, but the final effect over household prices is not clear. In order to contribute to this debate, this paper provides an empirical investigation into the electricity prices determinants. In fact we develop econometric panel models to explore the relationship between the household electricity prices and variables related to the renewable energy sources and the competition in generation electricity market. More specifically we use a panel data set provided by Eurostat and covering 27 European Union countries during the period 1998–2009. Our results suggest that electricity prices increase with the deployment of RES-E and with the expansion of greenhouse gas emissions produced by energy industries- as a European Union CO 2 emission trading scheme exists. Results also reveal that country's characteristics can affect household electricity prices. -- Highlights: ► Electricity liberalized markets should lead to reduce electricity prices. ► The use of renewable energies (RES) reduce wholesale electricity prices. ► However, household electricity prices are increasing in European Union. ► Panel data models are developed to investigate the effect of RES and electricity competition on household electricity prices. ► We find that the deployment of RES increases prices paid by consumers in a liberalized market.

Projections of the energy prices

International Nuclear Information System (INIS)

Jankauskas, V.

1996-01-01

This article deals with the trends of the main fuel prices development in the Western European markets. There are two possible price development scenarios presented in the article. Transportation costs of various internationally traded fuels from various sources (Russia, Western Europe) are estimated and their most feasible values are considered. Fuel prices for the final big consumers are calculated adding the domestic distribution costs. Trends of heat and electricity price development in Lithuania during the period of 1991-1995 are analyzed. Forecasts of the electricity generation and supply costs are calculated according to various scenarios. Electricity prices will be lowest in the case of the further operation of the Ignalina NPP and low fuel prices in international markets. (author). 8 refs., 14 figs., 4 tabs

Opportunities for renewable energy sources in Central Asia countries

Energy Technology Data Exchange (ETDEWEB)

Obozov, A.J. [Project KUN (Kyrgyzstan); Loscutoff, W.V. [National Renewable Energy Lab., Golden, CO (United States)

1998-07-01

This report presents an overview of the state of conventional energy sources and the potential for development of renewable energy sources in the Central Asia countries of Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan. The region has a population of about 50 million in an area of more than four million square kilometers. The per capita gross internal product is more than $2,500, although the economy has been declining the past five years. The area has substantial coal, oil, uranium, and natural gas reserves, although they are not distributed equally among the five countries. Energy production is such that the countries do not have to rely heavily on imports. One of the problems in Central Asia is that the energy prices are substantially below the world prices. This is a factor in development of renewable energy sources. The primary renewable energy resources available are wind in Kazakhstan, solar in the entire region, biomass in Kyrgyzstan, and micro-hydropower stations in Kazakhstan and Kyrgyzstan. All of these have the potential to provide a significant amount of the required energy for the region. However, all of the countries have an abundance of various renewable energy resources. To effectively use these resources, however, a number of barriers to their development and commercialization must be overcome. These include low prices of conventional energy sources, absence of legislative support, lack of financing for new technologies, and lack of awareness of renewable energy sources by the population. A number of specific actions are proposed to overcome these barriers. These include establishment of a Central Asia coordinating council for renewable energy, development of a regional renewable energy program, and setting up a number of large demonstration projects. 16 figs.

Application of fuel cell and electrolyzer as hydrogen energy storage system in energy management of electricity energy retailer in the presence of the renewable energy sources and plug-in electric vehicles

International Nuclear Information System (INIS)

Nojavan, Sayyad; Zare, Kazem; Mohammadi-Ivatloo, Behnam

2017-01-01

Highlights: • Electricity retailer determines selling price to consumers in the smart grids. • Real-time pricing is determined in comparison with fixed and time-of-use pricing. • Hydrogen storage systems and plug-in electric vehicles are used for energy sources. • Optimal charging and discharging power of electrolyser and fuel cell is determined. • Optimal charging and discharging power of plug-in electric vehicles is determined. - Abstract: The plug-in electric vehicles and hydrogen storage systems containing electrolyzer, stored hydrogen tanks and fuel cell as energy storage systems can bring various flexibilities to the energy management problem. In this paper, selling price determination and energy management problem of an electricity retailer in the smart grid under uncertainties have been proposed. Multiple energy procurement sources containing pool market, bilateral contracts, distributed generation units, renewable energy sources (photovoltaic system and wind turbine), plug-in electric vehicles and hydrogen storage systems are considered. The scenario-based stochastic method is used for uncertainty modeling of pool market prices, consumer demand, temperature, irradiation and wind speed. In the proposed model, the selling price is determined and compared by the retailer in the smart grid in three cases containing fixed pricing, time-of-use pricing and real-time pricing. It is shown that the selling price determination based on real-time pricing and flexibilities of plug-in electric vehicles and hydrogen storage systems leads to higher expected profit. The proposed model is formulated as mixed-integer linear programming that can be solved under General Algebraic Modeling System. To validate the proposed model, three types of selling price determination under four case studies are utilized and the results are compared.

The impact of energy price shocks on the UK economy

International Nuclear Information System (INIS)

2007-01-01

This report describes the results of six scenarios considering the impact of energy price shocks on the UK economy. The six scenarios considered are: UK aggregate energy price scenario; pan-Europe aggregate energy price; global aggregate energy price; UK temporary gas price; UK permanent gas price; crude (Brent) oil price. As expected, shocks to aggregate energy prices cause the largest macroeconomic and energy demand effects (in terms of growth rate volatility). Shocks to gas prices produce a greater growth volatility for macroeconomic and energy demand than shocks to oil prices. In general terms, shocks specific to the UK market tend to produce more growth rate volatility than wider ranging price shocks (global or pan-European). All of the price shocks considered have a recursive effect on the main indicators, which tend to stabilise around the baseline level in the long run. The report summarises the results obtained in the different scenarios

Cuba's transition to market-based energy prices

International Nuclear Information System (INIS)

Perez-Lopez, J.F.

1992-01-01

Since 1960 the Soviet Union has been, for all practical purposes, Cuba's exclusive supplier of energy products. For certain time periods, Soviet sales of oil and oil products to Cuba were made at concessional prices; prior to 1991, they were priced using transferable rubles and were essentially bartered for Cuban goods, especially sugar. Effective January 1, 1991, the Soviet Union shifted to world market prices and convertible currency payments for all traded commodities, including energy products. The shift to market prices and convertible currencies in Cuban-Soviet energy trade has already brought - or is likely to bring - a number of adjustments in four areas: (1) the trade balance; (2) the ability to reexport oil and oil products; (3) energy consumption patterns; (4) and the structure of energy supplies. 33 refs., 8 tabs

Divisia amount and price index for energy consumption

International Nuclear Information System (INIS)

Bentzen, J.

1993-01-01

In connection with the calculation of total energy consumption related to aggregation of the individual fuel's combustion values, an alternative to Btu aggregation (combustion value measurement), designated the ''Divisia index'', is presented. This represents an economic measure for energy consumption. The Divisia index is demonstrated in relation to total national energy consumption and total energy consumption within the Danish housing sector and also with regard to the estimation of price and income elasticity within energy demand. It is only possible to utilize the Divisia index in relation to the last 20 years, which is the period where energy consumption has stagnated. The question of possible irreversible effects on energy consumption caused by large variations in energy prices is discussed. It is suggested that the reaction to a fall in prices is different and less significant than is the case with price rises. In the long term, results point at a reasonably high price elasticity within energy demand. (AB) (22 refs.)

Are energy-dense foods really cheaper? Reexamining the relation between food price and energy density.

Science.gov (United States)

Lipsky, Leah M

2009-11-01

The inverse relation between energy density (kcal/g) and energy cost (price/kcal) has been interpreted to suggest that produce (fruit, vegetables) is more expensive than snacks (cookies, chips). The objective of this study was to show the methodologic weakness of comparing energy density with energy cost. The relation between energy density and energy cost was replicated in a random-number data set. Additionally, observational data were collected for produce and snacks from an online supermarket. Variables included total energy (kcal), total weight (g), total number of servings, serving size (g/serving), and energy density (kcal/g). Price measures included energy cost ($/kcal), total price ($), unit price ($/g), and serving price ($/serving). Two-tailed t tests were used to compare price measures by food category. Relations between energy density and price measures within food categories were examined with the use of Spearman rank correlation analysis. The relation between energy density and energy cost was shown to be driven by the algebraic properties of these variables. Food category was strongly correlated with both energy density and food price measures. Energy cost was higher for produce than for snacks. However, total price and unit price were lower for produce. Serving price and serving size were greater for produce than for snacks. Within food categories, energy density was uncorrelated with most measures of food price, except for a weak positive correlation with serving price within the produce category. The findings suggest the relation between energy density and food price is confounded by food category and depends on which measure of price is used.

A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid

Directory of Open Access Journals (Sweden)

Jingwei Zhu

2014-01-01

Full Text Available Improvement of the overall efficiency of energy infrastructure is one of the main anticipated benefits of the deployment of smart grid technology. Advancement in energy storage technology and two-way communication in the electric network are indispensable components to achieve such a vision, while efficient pricing schemes and appropriate storage management are also essential. In this paper, we propose a universal pricing scheme which permits one to indirectly control the energy storage devices in the grid to achieve a more desirable aggregate demand profile that meets a particular target of the grid operator such as energy generation cost minimization and carbon emission reduction. Such a pricing scheme can potentially be applied to control the behavior of energy storage devices installed for integration of intermittent renewable energy sources that have permission to grid connection and will have broader applications as an increasing number of novel and low-cost energy storage technologies emerge.

Contribution of price/expenditure factors of residential energy consumption in China from 1993 to 2011: A decomposition analysis

International Nuclear Information System (INIS)

Liu, Zengming; Zhao, Tao

2015-01-01

Highlights: • Analysis about energy prices and the residential expenditure on energy in China. • Though the prices of energy declined, the price effect was negative. • The effect of price was the strongest restraining contribution. • Discussion on the proportion of energy expenditure in residential incomes. - Abstract: Since the establishment of the market economy in 1993, the residential consumption of commodities, including energy, has been highly influenced by prices in China. However, the contribution of the factors related to prices in residential energy consumption is relatively unexplored. This paper extends the KAYA identity with price and expenditure factors and then applies the LMDI method to a decomposition of residential energy consumption in China from 1993 to 2011. Our results show the following: (1) Though the prices of a majority of residential energy sources in China declined, the effect of energy prices restrained residential energy consumption because the expenditure structure changed during the period. (2) During the research period, the urban energy expenditure proportion experienced two progresses of rising and falling, and the rural proportion, which was stable before 2002, sharply increased. (3) The energy consumption intensity effect, which is the negative of the average energy price effect, contributed to most of the decrease in energy consumption, whereas residential income played a key role in the growth of consumption. According to the conclusions, we suggest further marketization and deregulation of energy prices, the promotion of advanced energy types and guidance for better energy consumption patterns

Can environmental sustainability be used to manage energy price risk?

International Nuclear Information System (INIS)

Henriques, Irene; Sadorsky, Perry

2010-01-01

Energy security issues and climate change are two of the most pressing problems facing society and both of these problems are likely to increase energy price variability in the coming years. This paper develops and estimates a model of a company's energy price exposure and presents evidence showing that increases in a company's environmental sustainability lowers its energy price exposure. This result is robust across two different measures of energy prices. These results should be useful to companies seeking new ways of addressing energy price risk as well as governments concerned about the impact that energy price risk can have on economic growth and prosperity. (author)

Testing causal relationships between wholesale electricity prices and primary energy prices

International Nuclear Information System (INIS)

Nakajima, Tadahiro; Hamori, Shigeyuki

2013-01-01

We apply the lag-augmented vector autoregression technique to test the Granger-causal relationships among wholesale electricity prices, natural gas prices, and crude oil prices. In addition, by adopting a cross-correlation function approach, we test not only the causality in mean but also the causality in variance between the variables. The results of tests using both techniques show that gas prices Granger-cause electricity prices in mean. We find no Granger-causality in variance among these variables. -- Highlights: •We test the Granger-causality among wholesale electricity and primary energy prices. •We test not only the causality in mean but also the causality in variance. •The results show that gas prices Granger-cause electricity prices in mean. •We find no Granger-causality in variance among these variables

The impact of renewable energy on electricity prices in the Netherlands

NARCIS (Netherlands)

Mulder, Machiel; Scholtens, Bert

Electricity markets may become more sensitive to weather conditions because of a higher penetration of renewable energy sources and climatic changes. We investigate whether weather conditions had a growing influence on the average daily day-ahead price in the Dutch electricity market in the period

International comparison of energy price using a purchasing power parity

Energy Technology Data Exchange (ETDEWEB)

Yoo, Dong Hun; Jo, Sung Han [Korea Energy Economics Institute, Euiwang (Korea)

1999-05-01

The price control of government results in price distortion as well as lowering efficiency of energy market and distortion of allocating resources. Consequently, such a price policy leads to energy overconsumption and has negative influences on other policies trying to reduce environmental burden resulted from energy consumption. When the energy price does not reflect the market price properly, it results in inefficiency of energy industry and it makes very difficult to supply investment funds. Therefore, the government is planning to implement liberalization of energy price step by step. The purpose of this study is to provide basic materials for establishing a reasonable energy price policy through the international comparison among OECD countries on major products price focusing on petroleum products. To overcome problems of exchange rate, a purchasing power indicator from OECD was used for comparative analysis with OECD countries. 11 refs. 1 fig., 23 tabs.

On the importance of commodity and energy price shocks for the macroeconomy

Science.gov (United States)

Edelstein, Paul S.

Although higher commodity prices are commonly thought to presage higher rates of inflation, the existing literature suggests that the predictive power of commodity prices for inflation has waned since the 1980s. In the first chapter, I show that this result can be overturned using state-of-the-art forecast combination methods. Moreover, commodity prices are shown to contain predictive information not contained in the leading principal components of a broad set of macroeconomic and financial variables. These improved inflation forecasts are of little value, however, for predicting actual Fed policy decisions. The remaining two chapters study the effect of energy price shocks on U.S. consumer and business expenditures. In the second chapter, I show that there is no statistical support for the presence of asymmetries in the response of real consumption to energy price increases and decreases. This finding has important implications for empirical and theoretical models of the transmission of energy price shocks. I then quantify the direct effect on real consumption of (1) unanticipated changes in discretionary income, (2) shifts in precautionary savings, and (3) changes in the operating cost of energy-using durables. Finally, I trace the declining importance of energy price shocks relative to the 1970s to changes in the composition of U.S. automobile production and the declining overall importance of the U.S. automobile sector. An alternative source of asymmetry is the response of nonresidential fixed investment to energy price shocks. In the third chapter, I show that the apparent asymmetry in the estimated responses of business fixed investment in equipment and structures is largely an artifact (1) of the aggregation of mining-related expenditures by the oil, natural gas, and coal mining industry and all other expenditures, and (2) of ignoring an exogenous shift in investment caused by the 1986 Tax Reform Act. Once symmetry is imposed and miningrelated expenditures

Machine learning for identifying demand patterns of home energy management systems with dynamic electricity pricing

NARCIS (Netherlands)

Koolen, D. (Derck); Sadat-Razavi, N. (Navid); W. Ketter (Wolfgang)

2017-01-01

textabstractEnergy management plays a crucial role in providing necessary system flexibility to deal with the ongoing integration of volatile and intermittent energy sources. Demand Response (DR) programs enhance demand flexibility by communicating energy market price volatility to the end-consumer.

The effect of expected energy prices on energy demand: implications for energy conservation and carbon taxes

International Nuclear Information System (INIS)

Kaufmann, R.K.

1994-01-01

This paper describes an empirical method for estimating the effect of expected prices on energy demand. Data for expected oil prices are compiled from forecasts for real oil prices. The effect of expectations on energy demand is simulated with an expectation variable that proxies the return on investment for energy efficient capital. Econometric results indicate that expected prices have a significant effect on energy demand in the US between 1975 and 1989. A model built from the econometric results indicates that the way in which consumers anticipate changes in energy prices that are generated by a carbon tax affects the quantity of emissions abated by the tax. 14 refs., 4 figs., 1 tab

Low-carbon-oriented dynamic optimization of residential energy pricing in China

International Nuclear Information System (INIS)

He, Yongxiu; Liu, Yangyang; Wang, Jianhui; Xia, Tian; Zhao, Yushan

2014-01-01

In China, the energy pricing mechanism has an insufficient linkage with other energy prices. As a result of the unreasonable price level, it is impossible to exploit fully the substitution elasticity among energy resources and there is a negative impact on achieving energy conservation and energy efficiency. This paper proposes an optimized mechanism for residential energy prices in China, which maximizes the total social surplus subject to some related constraints. Three types of energy pricing mechanisms are designed based on China's low-carbon targets and the optimization of residential energy price policies through the dynamic CGE model. Compared with the energy price linkage method, the results show that the market netback value mechanism has a greater impact on the total social surplus. In order to achieve further low-carbon targets, the proportion of second and third tier residents can be expanded, while the energy prices could be deregulated to some degree. In addition, considering residential affordability, the government may take into account different electricity pricing mechanisms for different tiers of residents. Electricity pricing for the first tier, the second tier and the third tier should be based respectively on cost, the integration of energy price linkage and the market netback value mechanism. - Highlights: • Residential energy price mechanisms can be considered in the D-CGE model. • The maximization of total social surplus is the optimized objective. • The market netback value mechanism has a greater impact on the total social surplus. • Production cost and energy price conduction should be considered in price mechanisms. • Government should take the energy system as a whole to optimize energy prices

The long-term relationships among China's energy consumption sources and adjustments to its renewable energy policy

International Nuclear Information System (INIS)

Zou Gaolu

2012-01-01

To reduce its consumption of coal and oil in its primary energy consumption, China promotes the development of renewable energy resources. I have analysed the long-term relationship among China's primary energy consumption sources. Changes in coal consumption lead those in the consumption of other energy sources in the long term. Coal and oil fuels substitute for each other equally. The long-term elasticities of China's coal consumption relative to its hydroelectricity consumption were greater than one and nearly equal during the two sample periods. Therefore, increased hydroelectricity consumption did not imply a reduction in coal consumption. China holds abundant hydroelectricity, wind and, solar energy potential. China must prevent an excessive escalation of its economy and resultant energy demand to realise a meaningful substitution of coal with hydroelectricity. Moreover, China must develop and use wind and solar energy sources. Natural gas can be a good substitute for coal, given its moderate price growth and affordable price levels. - Highlights: ► Coal consumption changes lead those of other energy sources in the long term. ► Coal and oil fuels substitute for each other equally. ► Increased hydroelectricity consumption has not meant lower coal consumption. ► Wind, solar and natural gas are China's promising energy sources.

Potential of building-scale alternative energy to alleviate risk from the future price of energy

International Nuclear Information System (INIS)

Bristow, David; Kennedy, Christopher A.

2010-01-01

The energy used for building operations, the associated greenhouse gas emissions, and the uncertainties in future price of natural gas and electricity can be a cause of concern for building owners and policy makers. In this work we explore the potential of building-scale alternative energy technologies to reduce demand and emissions while also shielding building owners from the risks associated with fluctuations in the price of natural gas and grid electricity. We analyze the monetary costs and benefits over the life cycle of five technologies (photovoltaic and wind electricity generation, solar air and water heating, and ground source heat pumps) over three audience or building types (homeowners, small businesses, large commercial and institutional entities). The analysis includes a Monte Carlo analysis to measure risk that can be compared to other investment opportunities. The results indicate that under government incentives and climate of Toronto, Canada, the returns are relatively high for small degrees of risks for a number of technologies. Ground source heat pumps prove to be exceptionally good investments in terms of their energy savings, emission, reductions, and economics, while the bigger buildings tend also to be better economic choices for the use of these technologies.

The analysis of security cost for different energy sources

International Nuclear Information System (INIS)

Jun, Eunju; Kim, Wonjoon; Chang, Soon Heung

2009-01-01

Global concerns for the security of energy have steadily been on the increase and are expected to become a major issue over the next few decades. Urgent policy response is thus essential. However, little attempt has been made at defining both energy security and energy metrics. In this study, we provide such metrics and apply them to four major energy sources in the Korean electricity market: coal, oil, liquefied natural gas, and nuclear. In our approach, we measure the cost of energy security in terms of supply disruption and price volatility, and we consider the degree of concentration in energy supply and demand using the Hirschman-Herfindahl index (HHI). Due to its balanced fuel supply and demand, relatively stable price, and high abundance, we find nuclear energy to be the most competitive energy source in terms of energy security in the Korean electricity market. LNG, on the other hand, was found to have the highest cost in term of energy security due to its high concentration in supply and demand, and its high price volatility. In addition, in terms of cost, we find that economic security dominates supply security, and as such, it is the main factor in the total security cost. Within the confines of concern for global energy security, our study both broadens our understanding of energy security and enables a strategic approach in the portfolio management of energy consumption.

Energy Prices in the International Market between Expectations and Political Reality

International Nuclear Information System (INIS)

Hill, Z.

1995-01-01

The author points out the necessity of complex analyses not only of relevant energy terms, primarily the relationship between supply and demand, but also of other most frequently neglected ones. This regards, first of all, the analyses of economic and political interests of factors engaged in this area, but also the situation and tendencies within the complex sphere of R and D. It is the only way to be able to comprehend the phenomenon of prices which are primarily the consequences and not the cause of numerous influences; naturally, it is impossible to exclude from these analyses a number of back-effects. Mentioning the examples of price projections from which the author derives parity relations not included in original data, he presents his projection of prices for energy products until the year 2010. Due to a limited space, the author does not get into the enumeration and analysis of all relevant guidelines (finding costs, transportation costs, environmental aspects, availability of energy products/sources and their location, ect.). (author). 12 refs., 3 tabs

Energy prices and substitution in United States manufacturing plants

Science.gov (United States)

Grim, Cheryl

Persistent regional disparities in electricity prices, growth in wholesale power markets, and recent deregulation attempts have intensified interest in the performance of the U.S. electric power industry, while skyrocketing fuel prices have brought renewed interest in the effect of changes in prices of all energy types on the U.S. economy. This dissertation examines energy prices and substitution between energy types in U.S. manufacturing. I use a newly constructed database that includes information on purchased electricity and electricity expenditures for more than 48,000 plants per year and additional data on the utilities that supply electricity to study the distribution of electricity prices paid by U.S. manufacturing plants from 1963 to 2000. I find a large compression in the dispersion of electricity prices from 1963 to 1978 due primarily to a decrease in quantity discounts for large electricity purchasers. I also find that spatial dispersion in retail electricity prices among states, counties and utility service territories is large, rises over time for smaller purchasers, and does not diminish as wholesale power markets expand in the 1990s. In addition, I examine energy type consumption patterns, prices, and substitution in U.S. manufacturing plants. I develop a plant-level dataset for 1998 with data on consumption and expenditures on energy and non-energy production inputs, output, and other plant characteristics. I find energy type consumption patterns vary widely across manufacturing plants. Further, I find a large amount of dispersion across plants in the prices paid for electricity, oil, natural gas, and coal. These high levels of dispersion are accounted for by the plant's location, industry, and purchase quantity. Finally, I present estimates of own- and cross-price elasticities of demand for both the energy and non-energy production inputs.

The cost of domestic energy prices to Saudi Arabia

International Nuclear Information System (INIS)

Alyousef, Yousef; Stevens, Paul

2011-01-01

The issue of subsidies on domestic energy prices has moved up the policy agenda, most recently as a result of the G20 commitment in September 2009 to phase out such subsidies. However, what constitutes a 'subsidy' is complex and controversial. The IEA in its last World Energy Outlook claimed that Saudi Arabia was second in the world in terms of its levels of subsidy on domestic energy prices. However, because Saudi Arabia is a price maker in the international oil market, the methodology used by the IEA is seriously flawed. This paper explains the problems with the methodology for computing subsidies and explains the correct method in the case of Saudi Arabia. It then attempts to measure the levels of subsidy in Saudi Arabia using this methodology. However, while it converts the IEA's 'subsidy' of $23 billion into a net 'profit' of $5.7 billion, it goes on to point out that the current low price regime is causing problems for Saudi Arabia. - Highlights: → How to define energy subsidies in the context of Saudi Arabia as the price maker for international oil prices? → How far do the low domestic energy price in Saudi Arabia represent subsidized prices? → What are the costs and benefits of low/subsidized domestic energy prices in Saudi Arabia? → What policy options are available to offset the very poor record of energy efficiency in Saudi Arabia?

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs.

Science.gov (United States)

He, Lingyun; Ding, Zhihua; Yin, Fang; Wu, Meng

2016-01-01

Significant effort has been exerted on the study of economic variables such as absolute energy prices to understand energy consumption and economic growth. However, this approach ignores general inflation effects, whereby the prices of baskets of goods may rise or fall at different rates from those of energy prices. Thus, it may be the relative energy price, not the absolute energy price, that has most important effects on energy consumption. To test this hypothesis, we introduce a new explanatory variable, the domestic relative energy price, which we define as "the ratio of domestic energy prices to the general price level of an economy," and we test the explanatory power of this new variable. Thus, this paper explores the relationship between relative energy prices and energy consumption in China from the perspective of inflation costs over the period from 1988 to 2012. The direct, regulatory and time-varying effects are captured using methods such as ridge regression and the state-space model. The direct impacts of relative energy prices on total energy consumption and intensity are -0.337 and -0.250, respectively; the effects of comprehensive regulation on energy consumption through the economic structure and the energy structure are -0.144 and -0.148, respectively; and the depressing and upward effects of rising and falling energy prices on energy consumption are 0.3520 and 0.3564, respectively. When economic growth and the energy price level were stable, inflation persisted; thus, rising energy prices benefitted both the economy and the environment. Our analysis is important for policy makers to establish effective energy-pricing policies that ensure both energy conservation and the stability of the pricing system.

A meta-analysis on the price elasticity of energy demand

International Nuclear Information System (INIS)

Labandeira, Xavier; Labeaga, José M.; López-Otero, Xiral

2017-01-01

Price elasticities of energy demand have become increasingly relevant in estimating the socio-economic and environmental effects of energy policies or other events that influence the price of energy goods. Since the 1970s, a large number of academic papers have provided both short and long-term price elasticity estimates for different countries using several models, data and estimation techniques. Yet the literature offers a rather wide range of estimates for the price elasticities of demand for energy. This paper quantitatively summarizes the recent, but sizeable, empirical evidence to facilitate a sounder economic assessment of (in some cases policy-related) energy price changes. It uses meta-analysis to identify the main factors affecting short and long term elasticity results for energy, in general, as well as for specific products, i.e., electricity, natural gas, gasoline, diesel and heating oil. - Highlights: • An updated and wider meta-analysis on price elasticities of energy demand. • Energy goods are shown to be price inelastic both in the short and long-term. • Results are relevant for a proper design and implementation of energy policies. • Our results refer to energy, as a whole, and specific energy goods.

The geopolitical impact of the shale revolution: Exploring consequences on energy prices and rentier states

International Nuclear Information System (INIS)

Auping, Willem L.; Pruyt, Erik; Jong, Sijbren de; Kwakkel, Jan H.

2016-01-01

While the shale revolution was largely a US’ affair, it affects the global energy system. In this paper, we look at the effects of this spectacular increase in natural gas, and oil, extraction capacity can have on the mix of primary energy sources, on energy prices, and through that on internal political stability of rentier states. We use two exploratory simulation models to investigate the consequences of the combination of both complexity and uncertainty in relation to the global energy system and state stability. Our simulations show that shale developments could be seen as part of a long term hog-cycle, with a short term drop in oil prices if unconventional supply substitutes demand for oil. These lower oil prices may lead to instability in rentier states neighbouring the EU, especially when dependence on oil and gas income is high, youth bulges are present, or buffers like sovereign wealth funds are too limited to bridge the negative economic effects of temporary low oil prices. - Highlights: • We quantitatively explore geopolitical consequences of the shale gas revolution. • We use a multi-model approach to generate and use energy price scenarios. • Simulations show that current low oil prices could be part of a hog cycle. • The shale gas boom was an early warning for the drop in oil prices. • Low prices due to shale gas can reduce internal stability in rentier states.

Machine Learning for Identifying Demand Patterns of Home Energy Management Systems with Dynamic Electricity Pricing

Directory of Open Access Journals (Sweden)

Derck Koolen

2017-11-01

Full Text Available Energy management plays a crucial role in providing necessary system flexibility to deal with the ongoing integration of volatile and intermittent energy sources. Demand Response (DR programs enhance demand flexibility by communicating energy market price volatility to the end-consumer. In such environments, home energy management systems assist the use of flexible end-appliances, based upon the individual consumer’s personal preferences and beliefs. However, with the latter heterogeneously distributed, not all dynamic pricing schemes are equally adequate for the individual needs of households. We conduct one of the first large scale natural experiments, with multiple dynamic pricing schemes for end consumers, allowing us to analyze different demand behavior in relation with household attributes. We apply a spectral relaxation clustering approach to show distinct groups of households within the two most used dynamic pricing schemes: Time-Of-Use and Real-Time Pricing. The results indicate that a more effective design of smart home energy management systems can lead to a better fit between customer and electricity tariff in order to reduce costs, enhance predictability and stability of load and allow for more optimal use of demand flexibility by such systems.

A closed-loop energy price controlling method for real-time energy balancing in a smart grid energy market

International Nuclear Information System (INIS)

Alagoz, B. Baykant; Kaygusuz, Asim; Akcin, Murat; Alagoz, Serkan

2013-01-01

Future smart grids will require a flexible, observable, and controllable network for reliable and efficient energy delivery under uncertain generation and demand conditions. One of the mechanisms for efficient and reliable energy generation is dynamic demand-responsive generation management based on energy price adjustments that creates a balance in energy markets. This study presents a closed-loop PID (proportional–integral–derivative) controller-based price control method for autonomous and real-time balancing of energy demand and generation in smart grid electricity markets. The PID control system can regulate energy prices online to respond dynamically and instantaneously to the varying energy demands of grid consumers. Independent energy suppliers in the smart grid decide whether to sell their energy to the grid according to the energy prices declared by the closed-loop PID controller system. Energy market simulations demonstrate that PID-controlled energy price regulation can effectively maintain an energy balance for hourly demand fluctuations of consumers. - Highlights: • This study presents a control theoretic approach for management of energy balance. • A closed-loop PID controller-based price controlling method is used in smart grid. • The simulation results demonstrate advantages of PID-based energy price control. • This method is appropriate for demand responsive management of smart grid markets

Current Research on Molasses as an Alternative Energy Source for Organic Dairy Herds

Science.gov (United States)

As organic grain prices have increased and organic milk prices have decreased, dairy farmers are seeking lower-cost supplementation strategies. Sugarcane molasses, a rich source of sucrose, seems to be a viable option as a source of energy. Molasses frequently costs less per pound of dry matter than...

Structural change and forecasting long-run energy prices

International Nuclear Information System (INIS)

Bernard, J.T.; Khalaf, L.

2004-01-01

Fluctuating energy prices have a significant impact on the economies of industrialized nations. A recent study has shown a strong non-linear relationship between changes in oil prices and growth in gross domestic product (GDP). In order to forecast the behaviour of energy prices, a complete model must take into account domestic and international supply and demand conditions, market regulations, technological advances and geopolitics. In 1999, Pindyck suggested that for long-term forecasting, a simple model should be adopted where prices grow in real terms and at a fixed rate. This paper tests the statistical significance of Pindyck's suggested class of econometric equations that model the behaviour of long-run real energy prices. The models assume mean-reverting prices with continuous and random changes in their level and trend. They are estimated using Kalman filtering. The authors used simulation-based procedures to address the issue of non-standard test statistics and nuisance parameters. Results were reported for a standard Monte Carlo test and a maximized Monte Carlo test. Results shown statistically significant instabilities for coal and natural gas prices, but not for crude oil prices. Various models were differentiated using out-of-sample forecasting exercises. 25 refs., 3 tabs

Energy price forecast by market analysis

International Nuclear Information System (INIS)

Jongepier, A.G.

2000-01-01

A power trader benefits from accurate price predictions. Based on market analyses, KEMA Connect has developed - in cooperation with Essent Energy Trading - a market model, enhancing the insight into market operation and one's own actions and thus resulting in accurate price predictions

Energy prices, multiple structural breaks, and efficient market hypothesis

Energy Technology Data Exchange (ETDEWEB)

Lee, Chien-Chiang; Lee, Jun-De [Department of Applied Economics, National Chung Hsing University, Taichung (China)

2009-04-15

This paper investigates the efficient market hypothesis using total energy price and four kinds of various disaggregated energy prices - coal, oil, gas, and electricity - for OECD countries over the period 1978-2006. We employ a highly flexible panel data stationarity test of Carrion-i-Silvestre et al. [Carrion-i-Silvestre JL, Del Barrio-Castro T, Lopez-Bazo E. Breaking the panels: an application to GDP per capita. J Econometrics 2005;8:159-75], which incorporates multiple shifts in level and slope, thereby controlling for cross-sectional dependence through bootstrap methods. Overwhelming evidence in favor of the broken stationarity hypothesis is found, implying that energy prices are not characterized by an efficient market. Thus, it shows the presence of profitable arbitrage opportunities among energy prices. The estimated breaks are meaningful and coincide with the most critical events which affected the energy prices. (author)

Energy prices, multiple structural breaks, and efficient market hypothesis

International Nuclear Information System (INIS)

Lee, Chien-Chiang; Lee, Jun-De

2009-01-01

This paper investigates the efficient market hypothesis using total energy price and four kinds of various disaggregated energy prices - coal, oil, gas, and electricity - for OECD countries over the period 1978-2006. We employ a highly flexible panel data stationarity test of Carrion-i-Silvestre et al. [Carrion-i-Silvestre JL, Del Barrio-Castro T, Lopez-Bazo E. Breaking the panels: an application to GDP per capita. J Econometrics 2005;8:159-75], which incorporates multiple shifts in level and slope, thereby controlling for cross-sectional dependence through bootstrap methods. Overwhelming evidence in favor of the broken stationarity hypothesis is found, implying that energy prices are not characterized by an efficient market. Thus, it shows the presence of profitable arbitrage opportunities among energy prices. The estimated breaks are meaningful and coincide with the most critical events which affected the energy prices. (author)

The message in North American energy prices

Energy Technology Data Exchange (ETDEWEB)

Serletis, A. [Department of Economics, The University of Calgary, Calgary, Alberta (Canada); Herbert, J. [Virginia Polytechnic Institute and State University, Blacksburg, Virginia (United States)

1999-10-01

How similar is the price behavior of North American natural gas, fuel oil, and power prices? Using current state-of-the-art econometric methodology, we explore the degree of shared trends across North American energy markets. Across these markets, there appear to be effective arbitraging mechanisms for the price of natural gas and fuel oil, but not for the price of electricity. 11 refs.

Estimation of demand response to energy price signals in energy consumption behaviour in Beijing, China

International Nuclear Information System (INIS)

He, Y.X.; Liu, Y.Y.; Xia, T.; Zhou, B.

2014-01-01

Highlights: • Demand response to energy price signals in energy consumption in Beijing is studied. • The electricity price is of great importance to Beijing’s energy market stability. • Industrial sectors have a large electricity self-elasticity and cross-elasticity. • When consuming electricity, customers pay more attention to natural gas price. • Analysis of demand response to energy price can provide guidance to energy policies. - Abstract: The energy price system in Beijing has not fully exploited customers’ price elasticity, and has a negative impact on achieving the goals of energy saving. This paper analyses the response behaviours of different customers to typical energy prices. As for electricity self-elasticity, the range of the primary, secondary, tertiary industry and residents are −0.026 to −0.033, −0.045 to −0.059, −0.035 to −0.047 and −0.024 to −0.032, respectively. As regards self-elasticity on coal, the range of the primary, secondary, tertiary industry and residents are −0.030 to −0.037, −0.066 to −0.093, −0.055 to −0.072 and −0.034 to −0.051, respectively. The self-elasticities on oil and natural gas are very weak. As for cross-elasticity, when consuming electricity and oil, customers mainly focus on the prices of natural gas, which are 0.185 and 0.112. When consuming coal and natural gas, customers are concerned about the electricity prices, and their cross-elasticities are 0.03 and 0.36, respectively. The estimation of demand response to energy price signals in energy consumption behaviours can provide a decision support for formulating rational energy price policies

Oil Prices and the Renewable Energy Sector

OpenAIRE

Kyritsis, Evangelos; Serletis, Apostolos

2017-01-01

Energy security, climate change, and growing energy demand issues are moving up on the global political agenda, and contribute to the rapid growth of the renewable energy sector. In this paper we investigate the effects of oil price shocks, and also of uncertainty about oil prices, on the stock returns of clean energy and technology companies. In doing so, we use monthly data that span the period from May 1983 to December 2016, and a bivariate structural VAR model that is modified to accommod...

Proceedings of the Fourth Forum: Energy Day of Croatia, Prices and Tariff Policy in Energy Supply

International Nuclear Information System (INIS)

1995-01-01

The principle topic of the four Forums ''Croatian Energy Day'' was ''prices and tariff policy in energy supply''. 23 papers were presented, which were subdivided into four groups: 16th World Energy Council Congress, planning and prices in energetics, oil and natural gas prices and tariffs, and electric energy prices and tariffs

The geopolitical impact of the shale revolution : Exploring consequences on energy prices and rentier states

NARCIS (Netherlands)

Auping, W.L.; Pruyt, E.; de Jong, Sijbren; Kwakkel, J.H.

2016-01-01

While the shale revolution was largely a US’ affair, it affects the global energy system. In this paper, we look at the effects of this spectacular increase in natural gas, and oil, extraction capacity can have on the mix of primary energy sources, on energy prices, and through that on internal

Optimal price/performance for energy storage systems. Doing more with less

International Nuclear Information System (INIS)

Broekhuizen, H.J.

2004-01-01

This article discusses the possibility of improving the price-performance ratio for thermal energy storage systems. It recommends restricting the source flow rate by a variety of measures, and trying to achieve equal maximum flow rates in summer and winter. Also recommended are the maximum deployment of sustainable system components and their use for various functions [nl

Prices make energy savings more then a slogan

International Nuclear Information System (INIS)

Jesny, M.; Hruz, J.

2003-01-01

Energy has become a commodity with economic price in Slovakia. For years the energy price has not fulfilled the basic economic criteria - covering of production costs. It was used as one of the instruments of Governments social policy. But the situation is changing. Another phase of bringing the prices to a realistic level brought along a price increase by tens of percents. As the energy prices are increasing and there is a perspective that they will grow further all possible reserves and cheaper energy sources have to be identified. A simplified energetic model of Slovak economy identifies three basic energy-consumer kinds - industry, buildings and transport. Industry uses about one half of the Slovakia's yearly energy-consume. Aim private companies to survive in a competitive environment guarantees of a rational approach towards energy consume. The fact that even in companies that use high volumes of primary raw material the energy consume is the highest cost item (many times higher then the labour costs) is the main incentive for looking for saving possibilities in this area. A decrease of the industries' share in energy consume may indicate some positive trends. The energy consume in industries has dropped by ten percent within ten years and its share on the overall consume is approaching the 45-percent level. This was partially caused by decreasing production volumes or closing down of production in several companies. Energy consume of buildings represents about 35 - 40 percent of the national consume i.e. is on a level similar to other European countries. This is a sector is the most important. It is its structure that is important. Currently there are 1,8 million flat units in Slovakia. Family houses represent 48 percent and the remaining 52 percent go to flats. In close to 800-thousand family houses owned by the people living in them nobody has to stress the importance of energy savings. The user knows exactly how much energy has been used. The ownership is

Wood-energy: success depends on the price of fossil energies and on the carbon tax level

International Nuclear Information System (INIS)

Defaye, Serge; Maindrault, Marc

2016-01-01

Illustrated by several graphs indicating the structure of fossil energy prices, the comparison between domestic fuel and wood-energy for public network exploitation, the levels of fossil prices and carbon tax for non-subsidised projects, this article analyses the development of biomass (and more particularly wood-energy), the success of which depends on the price of fossil energies and on the carbon tax level. It outlines the differences of price-building elements between fossil and renewable heat, that subsidies are necessary if reference prices are low. It discusses the influence of carbon tax level and of fossil prices. It finally identifies conditions to be met (reduction of fossil energy supply and therefore higher fossil prices, introduction of a carbon tax) to reach COP objectives

Nonlinear Pricing in Energy and Environmental Markets

Science.gov (United States)

Ito, Koichiro

This dissertation consists of three empirical studies on nonlinear pricing in energy and environmental markets. The first investigates how consumers respond to multi-tier nonlinear price schedules for residential electricity. Chapter 2 asks a similar research question for residential water pricing. Finally, I examine the effect of nonlinear financial rewards for energy conservation by applying a regression discontinuity design to a large-scale electricity rebate program that was implemented in California. Economic theory generally assumes that consumers respond to marginal prices when making economic decisions, but this assumption may not hold for complex price schedules. The chapter "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing" provides empirical evidence that consumers respond to average price rather than marginal price when faced with nonlinear electricity price schedules. Nonlinear price schedules, such as progressive income tax rates and multi-tier electricity prices, complicate economic decisions by creating multiple marginal prices for the same good. Evidence from laboratory experiments suggests that consumers facing such price schedules may respond to average price as a heuristic. I empirically test this prediction using field data by exploiting price variation across a spatial discontinuity in electric utility service areas. The territory border of two electric utilities lies within several city boundaries in southern California. As a result, nearly identical households experience substantially different nonlinear electricity price schedules. Using monthly household-level panel data from 1999 to 2008, I find strong evidence that consumers respond to average price rather than marginal or expected marginal price. I show that even though this sub-optimizing behavior has a minimal impact on individual welfare, it can critically alter the policy implications of nonlinear pricing. The second chapter " How Do

Carbon pricing. A lever for energy transition

International Nuclear Information System (INIS)

2016-01-01

The international community has set itself the target of limiting the global temperature rise to 2 deg. C. In today's world, the challenge is to invent new ways of manufacturing goods, producing food, travelling and keeping ourselves warm, without emitting more greenhouse gases (GHG) into the atmosphere than what we are technically able to remove from it. Climate action can be considered as an insurance for our societies against unacceptable costs generated by the risk of increasingly frequent climate-triggered natural disasters, irreversible damage to ecosystems and mass population migrations. In addition to avoid climate damage there are many benefits of climate action, including greater energy autonomy, reduced atmospheric pollution, which is harmful for human health, and the economic benefits of new green growth sectors. However, the efforts needed to make the transition to economies that emit fewer greenhouse gases must not be underestimated. This transition requires the mass redirection of investments into clean transport, renewable energy sources, building insulation and the development of agro-ecology, in a highly restricted financial and budgetary context. The economic and financial tools used for explicit or implicit carbon pricing give clear messages about the benefits of emitting less carbon, or alternatively the cost of greenhouse gas emissions for society. Consequently, they make it possible to accelerate the energy transition. 74 countries and over 1,000 businesses formed a coalition for carbon pricing during the United Nations Climate Summit in September 2014, held at the invitation of the UN Secretary-General. The goal of the coalition is to promote productive dialogue between public and private decision-makers concerning opportunities to extend carbon pricing policies. It has been officially launched on November 30, 2015, on the opening day of COP21. It has been officially launched on November 30, 2015, on the opening day of COP21. Members of the

Induced innovation, energy prices, and the environment

Science.gov (United States)

Popp, David Clifford

The process of developing new technologies is a central question for economic theory as well as for public policy in many areas. For example, the development of cleaner, more efficient energy technologies will play an important role in reducing the threat of global warming. To study how technology evolves over time, this dissertation uses patent data on energy innovations from 1970 to 1991 to examine the impact of energy prices on energy-efficient innovations. Before this can be done, however, information on supply-side factors which influence innovation is also needed. In the case of innovation, supply-side factors are the usefulness of the existing base of scientific knowledge. Patent citations are used for this purpose. Subsequent citations to patents granted each year since 1970 are used to show that the returns to research and development (R&D) fall over time for most of the technologies studied. These estimates are then combined with data on demand-side factors, such as energy prices, to estimate a model of induced innovation in energy technologies. Both energy prices and the supply of knowledge are found to have strongly significant positive effects on innovation. Next, the Yale Technology Concordance (YTC), which maps patents to the industries in which they are used, is employed to construct a stock of energy-related knowledge for 14 energy intensive industries. The effect of changes in this stock on energy consumption in these industries is estimated. On average, the present value of energy savings resulting from a new patent is eight million dollars, with the maximum savings coming about five years after the initial patent application. Finally, the results of each regression are combined to simulate the impact of a ten percent energy tax. Initially, simple factor substitution due to the price change has the largest effect. However, because of the cumulative nature of R&D, induced innovation has a much larger effect than factor substitution in the long run

Price sensitivity of residential energy consumption in Norway

International Nuclear Information System (INIS)

Nesbakken, R.

1999-01-01

The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993-1995. The parameter estimates are stable within a 95% confidence interval. However, the estimated impact of the energy price variable on energy consumption was considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households. 19 refs

Comparative analysis of public's perception of economic feasibility and reality for selected energy sources in Korea

International Nuclear Information System (INIS)

Roh, Seungkook; Jeong, Ik; Lee, Kibog; Kim, Dongwook; Kim, Hyunjin

2016-01-01

Controversy on nuclear energy has persisted ever since, but nuclear energy has maintained around 30% of electricity generation in Korea. This is because Korean wants to secure energy security and diversity of energy sources, but the most rational driver behind nuclear energy is the economic feasibility. Looking at the actual prices of electricity traded in the Korean Power Exchange, the price of electricity generated by nuclear energy is 39.1 Korean won per kWh, which is lower than that of other sources: 58.9 (bituminous coal), 221.8 (oil), 158.6 (gas), 170.9 (hydropower), 162.8 (wind) and 463.1 (photovoltaic). However only experts, regulators and people from electricity generation industry are aware of this fact and the public does not seem to be perceiving this correctly. This research, therefore, will compare the economic feasibility of energy sources and how it is perceived by the public in general. This research was able to identify the large gap between public's perception on and reality of economic feasibility of energy sources. There are two possible reasons for the gap. Firstly, the electricity price paid by the public is agnostic of energy sources. Therefore, it is difficult for the public to be aware that the electricity from nuclear energy is benefiting them and hence the public would be indifferent to the real economic feasibility. Secondly, public's awareness of nuclear reactor decommissioning and spent fuel processing along with easier access to relevant information the media would have played a role. In fact, number of press and media has questioned the economic feasibility of nuclear energy. However, the price of electricity generated by nuclear energy includes costs for future activities such as decommissioning, radioactive waste disposal and spent fuel disposal. The public seems to be not aware of such fact and therefore favoring the media. Such analysis leads to two major policy implications. Most importantly, the government should emphasize the

Estimating the common trend rate of inflation for consumer prices and consumer prices excluding food and energy prices

OpenAIRE

Michael T. Kiley

2008-01-01

I examine the common trend in inflation for consumer prices and consumer prices excluding prices of food and energy. Both the personal consumption expenditure (PCE) indexes and the consumer price indexes (CPI) are examined. The statistical model employed is a bivariate integrated moving average process; this model extends a univariate model that fits the data on inflation very well. The bivariate model forecasts as well as the univariate models. The results suggest that the relationship betwe...

Electrical energy prices and losses respect to Turkish social-economic situations

International Nuclear Information System (INIS)

Berktay, Ali; Demirbas, Ayhan; Kocak, Saim; Nas, Bilgehan

2004-01-01

Electricity is a basic part of nature and it is one of the most widely used forms of energy. Electricity, which is a secondary energy source, can be generated from the conversion of other sources of energy, such as coal, natural gas, oil, nuclear power and renewable resources. Electricity prices have a deep impact on the competitiveness of a country's industry. Some electricity losses may occur during the process of transmission and distribution from generators to consumers. Generally there are two types of losses, one is technical losses which cover transmission losses and the other is non-technical losses including distribution losses and the incidence of illegal usage. The aim of this paper is to present the electricity usage and prices and is also to focus on the electricity losses occur both technical and non-technical means. An 'electricity losses map' was produced to illustrate the electricity losses. For this purpose, a vector based Geographic Information System (GIS) software package Arc GIS 8.3 was employed to map the data. The rate of losses within the electricity provided to the national network was about 19% in Turkey. The incidence of illegal usage and hence the rate of non-technical losses could be reduced dramatically through establishing regular action. (Author)

Legislation on renewable energy sources in Central America

International Nuclear Information System (INIS)

Rebollo, Jose

2000-01-01

This paper presents the development of renewable energy in Central America and the cooperation given by the European Comission in the promotion of renewable energy sources. Also discuss the current situation in energy demand in Central America and possible solutions linked to legislation that promotes the inversion of the private sector. The legal framework in each country of Central America is presented and its impact in the increasing of generation of energy through tax reductions, trading and prices

Determinants of the energy price system in the Federal Republic of Germany

Energy Technology Data Exchange (ETDEWEB)

Hennicke, P.

1983-01-01

The seven theses presented in this article are to illustrate some basic determinants of the West German energy price system systematically and - at present mainly - empirically. The theses are related to the following sub-aspects: - relation between the consumption structure of primary energy and the heat-price relations, - influence of energy imports on the domestic energy price level, - existence and dimensions of differential revenues, - reproaches of bulling made to the petroleum industry, - extent and development of the differentiation of energy prices, - influence of governmental interventions on the energy price level, - theoretical price fixing principles and actual tariff policy.

The effects of the energy price reform on households consumption in Iran

International Nuclear Information System (INIS)

Moshiri, Saeed

2015-01-01

The substantial subsidizing of energy prices over the years has led to high energy consumption, inefficiencies, fiscal pressures, and environmental problems in Iran. To address the increasing socio-economic problems associated with the energy subsidies, the government embarked on an aggressive energy price reform through which energy subsidies were removed and cash handouts were given to all households in 2010. In this paper, I analyze the effectiveness of the energy price reform in Iran by estimating energy demand elasticities for households in different income groups. I apply a two-stage consumer optimization model and estimate the system of energy expenditures shares using the household budget survey data for the period 2001–2008. The results show that the overall price elasticities of demand are small, but income elasticities are close to one. The results also indicate heterogeneous responses to energy price and income changes in different income groups. Specifically, the urban households show stronger response to price changes, but rural households, particularly mid-income households, to income changes. These findings suggest that the current policy of price increases would not solely be able to reduce energy consumption and, therefore, it should be geared towards increasing energy efficiency through a series of price and non-price measures. - Highlights: • The effectiveness of the recent energy price reform in Iran is analyzed. • Energy demand elasticities for households in different income groups are estimated. • A two-stage optimization model was applied to estimate the system of equations using micro-data for 2001–2008. • The price elasticities are small and income elasticities rather large, but responses are heterogeneous. • A price and non-price reform policy package is needed for different income groups and regions

Pricing and Hedging Quanto Options in Energy Markets

DEFF Research Database (Denmark)

Benth, Fred Espen; Lange, Nina; Myklebust, Tor Åge

approach we derive a closed form option pricing formula for energy quanto options, under the assumption that the underlying assets are log-normally distributed. Our approach encompasses several interesting cases, such as geometric Brownian motions and multifactor spot models. We also derive delta and gamma......In energy markets, the use of quanto options have increased significantly in the recent years. The payoff from such options are typically written on an underlying energy index and a measure of temperature and are suited for managing the joint price and volume risk in energy markets. Using an HJM...... expressions for hedging. Furthermore, we illustrate the use of our model by an empirical pricing exercise using NYMEX traded natural gas futures and CME traded Heating Degree Days futures for New York....

Management of development of renewable energy sources

Directory of Open Access Journals (Sweden)

Inić Branimir P.

2014-01-01

Full Text Available The aim of the paper: 'Management of development of renewable energy sources is to point out the possible solutions for neutralizing the threat of energy shortages. The paper outlines major short and long term energy problems facing humanity. The increase of world human population is, inevitably, accompanied by higher energy consumption. Reserves decrease of nonrenewable energy sources like oil, gas, and coal is a major threat to maintaining current living conditions, and thus requires solutions in order to neutralize the threat. This is why the management of development of renewable energy sources is an imperative for Serbia. The paper emphasizes the use of solar energy, because the annual average of solar radiation in Serbia is about 40% higher than the European average, however, the actual use of the sun's energy to generate electricity in Serbia is far behind the countries of the European Union. Solar energy is clean, renewable, and the fact that 4.2 kilowatt-hours are received daily per square meter averaged over the entire surface of the planet, makes it an almost unused energy source, Compared to EU countries, the price of non-renewable derived energy is, on average, higher in Serbia. Taking this into consideration, the use of solar energy, as an unused resource, imposes itself as indispensable.

Energy prices, volatility, and the stock market. Evidence from the Eurozone

International Nuclear Information System (INIS)

Oberndorfer, Ulrich

2009-01-01

This paper constitutes a first analysis on stock returns of energy corporations from the Eurozone. It focuses on the relationship between energy market developments and the pricing of European energy stocks. According to our results, oil price hikes negatively impact on stock returns of European utilities. However, they lead to an appreciation of oil and gas stocks. Interestingly, forecastable oil market volatility negatively affects European oil and gas stocks, implying profit opportunities for strategic investors. In contrast, the gas market does not play a role for the pricing of Eurozone energy stocks. Coal price developments affect the stock returns of European utilities. However, this effect is small compared to oil price impacts, although oil is barely used for electricity generation in Europe. This suggests that for the European stock market, the oil price is the main indicator for energy price developments as a whole. (author)

Nuclear power: tomorrow's energy source

International Nuclear Information System (INIS)

2002-01-01

In France, 76% of electricity is produced by nuclear power. The industry's pricing levels are among the most competitive in Europe. Thanks to its 58 nuclear reactors France enjoys almost 50% energy autonomy thus ensuring a highly stable supply. Equally, as a non-producer of greenhouse gases, the nuclear sector can rightfully claim to have an environmentally friendly impact. Against a background to increasing global demand with predictions that fossil fuels will run out and global warming a central issue, it is important to use production methods which face up to problems of this nature. There is no question that nuclear energy has a vital role to play alongside other energy sources. (authors)

A Simple Operating Strategy of Small-Scale Battery Energy Storages for Energy Arbitrage under Dynamic Pricing Tariffs

Directory of Open Access Journals (Sweden)

Enrico Telaretti

2015-12-01

Full Text Available Price arbitrage involves taking advantage of an electricity price difference, storing electricity during low-prices times, and selling it back to the grid during high-prices periods. This strategy can be exploited by customers in presence of dynamic pricing schemes, such as hourly electricity prices, where the customer electricity cost may vary at any hour of day, and power consumption can be managed in a more flexible and economical manner, taking advantage of the price differential. Instead of modifying their energy consumption, customers can install storage systems to reduce their electricity bill, shifting the energy consumption from on-peak to off-peak hours. This paper develops a detailed storage model linking together technical, economic and electricity market parameters. The proposed operating strategy aims to maximize the profit of the storage owner (electricity customer under simplifying assumptions, by determining the optimal charge/discharge schedule. The model can be applied to several kinds of storages, although the simulations refer to three kinds of batteries: lead-acid, lithium-ion (Li-ion and sodium-sulfur (NaS batteries. Unlike literature reviews, often requiring an estimate of the end-user load profile, the proposed operation strategy is able to properly identify the battery-charging schedule, relying only on the hourly price profile, regardless of the specific facility’s consumption, thanks to some simplifying assumptions in the sizing and the operation of the battery. This could be particularly useful when the customer load profile cannot be scheduled with sufficient reliability, because of the uncertainty inherent in load forecasting. The motivation behind this research is that storage devices can help to lower the average electricity prices, increasing flexibility and fostering the integration of renewable sources into the power system.

Pricing strategies in inelastic energy markets: can we use less if we can't extract more?

Science.gov (United States)

Voinov, Alexey; Filatova, Tatiana

2014-03-01

Limited supply of nonrenewable energy resources under growing energy demand creates a situation when a marginal change in the quantity supplied or demanded causes non-marginal swings in price levels. The situation is worsened by the fact that we are currently running out of cheap energy resources at the global scale while adaptation to climate change requires extra energy costs. It is often argued that technology and alternative energy will be a solution. However, alternative energy infrastructure also requires additional energy investments, which can further increase the gap between energy demand and supply. This paper presents an explorative model that demonstrates that a smooth transition from an oil-based economy to alternative energy sources is possible only if it is started well in advance while fossil resources are still abundant. Later the transition looks much more dramatic and it becomes risky to rely entirely on technological solutions. It becomes increasingly likely that in addition to technological solutions that can increase supply we will need to find ways to decrease demand and consumption. We further argue that market mechanisms can be just as powerful tools to curb demand as they have traditionally been for stimulating consumption. We observe that individuals who consume more energy resources benefit at the expense of those who consume less, effectively imposing price externalities on the latters. We suggest two transparent and flexible methods of pricing that attempt to eliminate price externalities on energy resources. Such pricing schemes stimulate less consumption and can smooth the transition to renewable energy.

Pricing and Hedging Quanto Options in Energy Markets

DEFF Research Database (Denmark)

Benth, Fred Espen; Lange, Nina; Myklebust, Tor Åge

2015-01-01

–Jarrow–Morton approach, we derive a closed-form option pricing formula for energy quanto options under the assumption that the underlying assets are lognormally distributed. Our approach encompasses several interesting cases, such as geometric Brownian motions and multifactor spot models. We also derive Delta and Gamma......In energy markets, the use of quanto options has increased significantly in recent years. The payoff from such options are typically written on an underlying energy index and a measure of temperature. They are suited to managing the joint price and volume risk in energy markets. Using a Heath...... expressions for hedging. Further, we illustrate the use of our model by an empirical pricing exercise using NewYork Mercantile Exchange-traded natural gas futures and Chicago Mercantile Exchange-traded heating degree days futures for NewYork....

A supply and demand based volatility model for energy prices

International Nuclear Information System (INIS)

Kanamura, Takashi

2009-01-01

This paper proposes a new volatility model for energy prices using the supply-demand relationship, which we call a supply and demand based volatility model. We show that the supply curve shape in the model determines the characteristics of the volatility in energy prices. It is found that the inverse Box-Cox transformation supply curve reflecting energy markets causes the inverse leverage effect, i.e., positive correlation between energy prices and volatility. The model is also used to show that an existing (G)ARCH-M model has the foundations on the supply-demand relationship. Additionally, we conduct the empirical studies analyzing the volatility in the U.S. natural gas prices. (author)

A supply and demand based volatility model for energy prices

Energy Technology Data Exchange (ETDEWEB)

Kanamura, Takashi [J-POWER, 15-1, Ginza 6-Chome, Chuo-ku, Tokyo 104-8165 (Japan)

2009-09-15

This paper proposes a new volatility model for energy prices using the supply-demand relationship, which we call a supply and demand based volatility model. We show that the supply curve shape in the model determines the characteristics of the volatility in energy prices. It is found that the inverse Box-Cox transformation supply curve reflecting energy markets causes the inverse leverage effect, i.e., positive correlation between energy prices and volatility. The model is also used to show that an existing (G)ARCH-M model has the foundations on the supply-demand relationship. Additionally, we conduct the empirical studies analyzing the volatility in the U.S. natural gas prices. (author)

TRADING ACTIVITY AND PRICES IN ENERGY FUTURES MARKET

Directory of Open Access Journals (Sweden)

Aysegul Ates

2016-04-01

Full Text Available This paper aims to examine trading activity and the relationship between futures trading activity by trader type and energy price movements in three energy futures markets –natural gas, crude oil and heating oil. We find that the level of net positions of speculators are positively related to future returns and in contrast net positions of hedgers are negatively related to futures price changes in all three markets. The changes in net positions are relatively more informative compare to the level of net positions in predicting price changes in related markets.

Action plan for renewable energy sources

International Nuclear Information System (INIS)

2000-03-01

In the Finnish Energy Strategy, approved by the Finnish Government in 1997, the emphasis is laid on the importance of bioenergy and other renewable energy sources for the creation of such prerequisites for the Finnish energy economy that the supply of energy can be secured, the price on energy is competitive and the emissions from energy generation are within the limits set by the international commitments made by Finland. In 1998, the European Union Meeting of the Ministers of Energy adopted a resolution taking a positive attitude to the Communication from the Commission 'Energy for the future: Renewable sources of energy' - White Paper for a Community Strategy and Action Plan. National measures play a key role in the achievement of the objectives set in the White Paper. This Action Plan for Renewable Energy Sources is a national programme in line with the EU's White Paper. It comprises all renewable sources of energy available in Finland. It encompasses even peat, which in Finland has traditionally been considered to be a solid biofuel but is internationally classified as one of the non-renewable sources of energy. In the Action Plan, objectives are set for the volume of renewable energy sources used in the year 2010 including a prognosis on the development by the year 2025. The goal is that by the year 2010 the volume of energy generated using renewable energy sources has increased by 50% compared with the year 1995. This would mean an increase by 3 Mtoe, which is about 1 Mtoe more than anticipated in the outlook based on the Finnish Energy Strategy. A further goal is to double the use of renewable energy sources by the year 2025. The aggregate use of renewable energy sources depends to a large extent both on the development of the price on energy produced using other energy sources and on possible changes in the production volume of the Finnish forest industry. The most important objective stated in the Action Plan is to improve the competitiveness of renewable

Energy symposium 2007 - energy secured?... for what price. Summary of the congress contributions

International Nuclear Information System (INIS)

2008-01-01

With its topical title ''Energy secured?.. for what price'' the 2007 Energy Symposium has added yet another milestone to its success story. Energy is a fundamental aspect of our industrial society. It is of essential importance that the demand for low-cost energy is strategically secured. Energy prices are basic to calculations on products that have to be sold and exported. They are therefore also an essential factor in securing Europe as an industrial region

Determinants of food price inflation in Finland—The role of energy

International Nuclear Information System (INIS)

Irz, Xavier; Niemi, Jyrki; Liu, Xing

2013-01-01

The agricultural commodity crisis of 2006–2008 and the recent evolution of commodity markets have reignited anxieties in Finland over fast-rising food prices and food security. Little is known about the strength of the linkages between food markets and input markets, such as the energy market. Using monthly series of price indices from 1995 to 2010, we estimate a vector error-correction (VEC) model in a cointegration framework in order to investigate the short-term and long-term dynamics of food price formation. The results indicate that a statistically significant long-run equilibrium relationship exists between the prices of food and those of the main variable inputs consumed by the food chain, namely agricultural commodities, labour, and energy. When judged by the magnitude of long-run pass-through rates, farm prices represent the main determinant of food prices, followed by wages in food retail and the price of energy. The parsimonious VEC model suggests that the dynamics of food price formation are dominated by a relatively quick process of adjustment to the long-run equilibrium, the half life of the transitional dynamics being six to eight months following a shock. - Highlights: • We investigate the dynamics of food price formation in Finland. • We establish the existence of a long-run equilibrium relationship between the prices of food, energy, agricultural commodities, and wages. • Energy price plays a significant but limited role in determining the equilibrium level of food prices

Price and income elasticities of residential energy demand in Germany

International Nuclear Information System (INIS)

Schulte, Isabella; Heindl, Peter

2017-01-01

We apply a quadratic expenditure system to estimate price and expenditure elasticities of residential energy demand (electricity and heating) in Germany. Using official expenditure data from 1993 to 2008, we estimate an expenditure elasticity for electricity of 0.3988 and of 0.4055 for space heating. The own price elasticity for electricity is −0.4310 and −0.5008 in the case of space heating. Disaggregation of households by expenditure and socio-economic composition reveals that the behavioural response to energy price changes is weaker (stronger) for low-income (top-income) households. There are considerable economies of scale in residential energy use but scale effects are not well approximated by the new OECD equivalence scale. Real increases in energy prices show a regressive pattern of incidence, implying that the welfare consequences of direct energy taxation are larger for low income households. The application of zero-elasticities in assessments of welfare consequences of energy taxation strongly underestimates potential welfare effects. The increase in inequality is 22% smaller when compared to the application of disaggregated price and income elasticities as estimated in this paper. - Highlights: • We estimate price, income, and expenditure elasticities for residential energy demand in Germany. • We differentiate elasticities by income groups and household type. • Electricity and space heating are necessary goods since the expenditure elasticities are smaller than unity. • Low-income households show a weaker reaction to changing prices when compared to high-income households. • Direct energy taxation has regressive effects, meaning that larger burdens fall upon low-income households.

Non-fiscal price incentives. The energy-efficiency impact of differentiated energy prices; Niet-fiscale prijsprikkels. Onderzoek naar het besparingseffect van gedifferentieerde energieprijzen

Energy Technology Data Exchange (ETDEWEB)

Leguijt, C.; Blom, M.B.J.; Schepers, B.L.; Warringa, G.E.A.

2012-02-15

An exploratory study has been carried out on the potential impact of non-fiscal energy incentives. The study will feed into the Dutch government policies on energy efficiency in the built environment. The study takes in both electricity and gas, and private dwellings as well as utility buildings. The following non-fiscal price incentives were considered: (1) consumer prices indexed to consumption volume; (2) consumer prices indexed to time of consumption; (3) the energy-efficiency impact of 'autonomous' increases in energy prices. The energy-efficiency effects of price changes (options 1 and 3) were calculated on the basis of price elasticities, while for option 2 use was made of the results of the Social Cost-Benefit Analysis of Smart Grids carried out by CE Delft in collaboration with KEMA. The conclusions of the study are as follows: (a) Although differentiating consumer prices by consumption volume may yield energy savings of up to 2%, this would require market agreements in breach of the competition rules underpinning the liberalised energy market. This option is therefore unfeasible via consumer prices; (b) The energy savings accruing from indexing consumer prices to time of consumption are uncertain, as the main impact will be a temporal shift in consumption. This option is highly feasible, as such differentiation will in all likelihood evolve of its own accord with the roll-out of smart meters and smart grids; (c) The energy-efficiency impact of autonomous energy price rises is 0.2 to 0.4% per annum [Dutch] CE Delft heeft in opdracht van het Ministerie van Binnenlandse Zaken en Koninkrijkrelaties (BZK) een verkenning uitgevoerd naar de mogelijkheden voor niet-fiscale energieprijsprikkels. De studie maakt onderdeel uit van het plan van aanpak energiebesparing gebouwde omgeving van BZK. De verkenning betreft zowel elektriciteit als gas, en zowel huishoudens als utiliteitbouw. De niet-fiscale prijsprikkels die zijn verkend betreffen: (1

Price regulation in the Spanish energy sectors: who benefits?

International Nuclear Information System (INIS)

Arocena, Pablo; Contin, Ignacio; Huerta, Emilio

2002-01-01

This paper analyses the distribution of benefits between firms and consumers due to the price regulation of the Spanish energy sectors (electricity, oil fuels and gas) during the decade 1987-1997. To that effect, we compare the actual evolution of energy prices with alternate benchmarks in order to assess the potential existence of a pro-industry or a pro-consumer bias in the pricing policies followed by the regulator. Our results show a pro-industry-biased regulatory context, where consumers benefited very little from price control. The successive price adjustments over time allowed the companies to keep all the productivity gains and cost reductions and to increase their profitability rates relative to those achieved in the manufacturing sector. (Author)

Price regulation in the Spanish energy sectors: who benefits?

Energy Technology Data Exchange (ETDEWEB)

Arocena, Pablo; Contin, Ignacio; Huerta, Emilio [Departamento de Gestion de Empresas, Universidad Publica de Navarra, Campus de Arrosadia. 31006, Pamplona (Spain); [Canterbury Business School, University of Kent Canterbury (United Kingdom)

2002-08-01

This paper analyses the distribution of benefits between firms and consumers due to the price regulation of the Spanish energy sectors (electricity, oil fuels and gas) during the decade 1987-1997. To that effect, we compare the actual evolution of energy prices with alternate benchmarks in order to assess the potential existence of a pro-industry or a pro-consumer bias in the pricing policies followed by the regulator. Our results show a pro-industry-biased regulatory context, where consumers benefited very little from price control. The successive price adjustments over time allowed the companies to keep all the productivity gains and cost reductions and to increase their profitability rates relative to those achieved in the manufacturing sector. (Author)

Effects of the uncertainty of energy price and water availability forecasts on the operation of Alpine hydropower reservoir systems

Science.gov (United States)

Anghileri, D.; Castelletti, A.; Burlando, P.

2016-12-01

European energy markets have experienced dramatic changes in the last years because of the massive introduction of Variable Renewable Sources (VRSs), such as wind and solar power sources, in the generation portfolios in many countries. VRSs i) are intermittent, i.e., their production is highly variable and only partially predictable, ii) are characterized by no correlation between production and demand, iii) have negligible costs of production, and iv) have been largely subsidized. These features result in lower energy prices, but, at the same time, in increased price volatility, and in network stability issues, which pose a threat to traditional power sources because of smaller incomes and higher maintenance costs associated to a more flexible operation of power systems. Storage hydropower systems play an important role in compensating production peaks, both in term of excess and shortage of energy. Traditionally, most of the research effort in hydropower reservoir operation has focused on modeling and forecasting reservoir inflow as well as designing reservoir operation accordingly. Nowadays, price variability may be the largest source of uncertainty in the context of hydropower systems, especially when considering medium-to-large reservoirs, whose storage can easily buffer small inflow fluctuations. In this work, we compare the effects of uncertain inflow and energy price forecasts on hydropower production and profitability. By adding noise to historic inflow and price trajectories, we build a set of synthetic forecasts corresponding to different levels of predictability and assess their impact on reservoir operating policies and performances. The study is conducted on different hydropower systems, including storage systems and pumped-storage systems, with different characteristics, e.g., different inflow-capacity ratios. The analysis focuses on Alpine hydropower systems where the hydrological regime ranges from purely ice and snow-melt dominated to mixed snow

Mathematical modelling of electricity market with renewable energy sources

International Nuclear Information System (INIS)

Marchenko, O.V.

2007-01-01

The paper addresses the electricity market with conventional energy sources on fossil fuel and non-conventional renewable energy sources (RESs) with stochastic operating conditions. A mathematical model of long-run (accounting for development of generation capacities) equilibrium in the market is constructed. The problem of determining optimal parameters providing the maximum social criterion of efficiency is also formulated. The calculations performed have shown that the adequate choice of price cap, environmental tax, subsidies to RESs and consumption tax make it possible to take into account external effects (environmental damage) and to create incentives for investors to construct conventional and renewable energy sources in an optimal (from the society view point) mix. (author)

Energy Trading and Pricing in Microgrids with Uncertain Energy Supply: A Three-Stage Hierarchical Game Approach

Directory of Open Access Journals (Sweden)

Kai Ma

2017-05-01

Full Text Available This paper studies an energy trading and pricing problem for microgrids with uncertain energy supply. The energy provider with the renewable energy (RE generation (wind power determines the energy purchase from the electricity markets and the pricing strategy for consumers to maximize its profit, and then the consumers determine their energy demands to maximize their payoffs. The hierarchical game is established between the energy provider and the consumers. The energy provider is the leader and the consumers are the followers in the hierarchical game. We consider two types of consumers according to their response to the price, i.e., the price-taking consumers and the price-anticipating consumers. We derive the equilibrium point of the hierarchical game through the backward induction method. Comparing the two types of consumers, we study the influence of the types of consumers on the equilibrium point. In particular, the uncertainty of the energy supply from the energy provider is considered. Simulation results show that the energy provider can obtain more profit using the proposed decision-making scheme.

Energy performance ratings and house prices in Wales: An empirical study

International Nuclear Information System (INIS)

Fuerst, Franz; McAllister, Pat; Nanda, Anupam; Wyatt, Pete

2016-01-01

This paper investigates the effect of Energy Performance Certificate (EPC) ratings on residential prices in Wales. Drawing on a sample of approximately 192,000 transactions, the capitalisation of energy efficiency ratings into house prices is investigated using two approaches. The first adopts a cross-sectional framework to investigate the effect of EPC rating on price. The second approach applies a repeat-sales methodology to investigate the impact of EPC rating on house price appreciation. Statistically significant positive price premiums are estimated for dwellings in EPC bands A/B (12.8%) and C (3.5%) compared to houses in band D. For dwellings in band E (−3.6%) and F (−6.5%) there are statistically significant discounts. Such effects may not be the result of energy performance alone. In addition to energy cost differences, the price effect may be due to additional benefits of energy efficient features. An analysis of the private rental segment reveals that, in contrast to the general market, low-EPC rated dwellings were not traded at a significant discount. This suggests different implicit prices of potential energy savings for landlords and owner-occupiers.

A model for energy pricing with stochastic emission costs

International Nuclear Information System (INIS)

Elliott, Robert J.; Lyle, Matthew R.; Miao, Hong

2010-01-01

We use a supply-demand approach to value energy products exposed to emission cost uncertainty. We find closed form solutions for a number of popularly traded energy derivatives such as: forwards, European call options written on spot prices and European Call options written on forward contracts. Our modeling approach is to first construct noisy supply and demand processes and then equate them to find an equilibrium price. This approach is very general while still allowing for sensitivity analysis within a valuation setting. Our assumption is that, in the presence of emission costs, traditional supply growth will slow down causing output prices of energy products to become more costly over time. However, emission costs do not immediately cause output price appreciation, but instead expose individual projects, particularly those with high emission outputs, to much more extreme risks through the cost side of their profit stream. Our results have implications for hedging and pricing for producers operating in areas facing a stochastic emission cost environment. (author)

Influence of rising commodity prices on energy policy

International Nuclear Information System (INIS)

Keppo, I.J.

2009-04-01

During the past few years we have first witnessed a rapid increase in the prices of commodities and then later, as a consequence of the economic downturn, an even more drastic drop. Simultaneously with the commodity price increase, an increase in the investment costs of power plants was experienced. The rise in material costs was often stated as one of the reasons for this increase. In this study the relationship between commodity costs and energy prices is studied. A bottom-up approach is used for estimating what kind of an impact increased commodity prices alone could be expected to have on the investment costs on the one hand, and how increased energy prices may affect commodity production costs on the other. The results indicate that although the commodity production costs usually have a fairly large energy component, even high increases in commodity prices, and therefore raw material costs of power plant investments, can not explain the recently experienced hikes in power plant investment costs; a doubling of the costs of the main raw material flows could explain an investment cost increase of some 5-10%, depending on the power plant type. This would seem to indicate that other contributing factors, such as bottlenecks in the production of power plant components, may play an important role in the recent investment cost increase

Oil price and food price volatility dynamics: The case of Nigeria

Directory of Open Access Journals (Sweden)

Ijeoma C. Nwoko

2016-12-01

Full Text Available This study examines the long and short run relationships between oil price and food price volatility as well as the causal link between them. The study used annual food price volatility index from FAO from 2000 to 2013 and crude oil price from U.S. Energy Information and Administration (EIA from 2000 to 2013. The Johansen and Jesulius co-integration test revealed that there is a long run relationship between oil price and domestic food price volatility. The vector error correction model indicated a positive and significant short run relationship between oil price and food price volatility. The Granger causality test revealed a unidirectional causality with causality running from oil price to food price volatility but not vice versa. It is recommended that policies and interventions that will help reduce uncertainty about food prices such as improved market information, trade policies and investment in research and development among others should be encouraged. Also to reduce the effect of oil price shock, it is recommended that government should subsidise pump price of refined oil, seek alternative sources of energy and there should be less dependence on oil for fertilizer production.

Energy sector pricing: On the role of neglected nonlinearity

International Nuclear Information System (INIS)

Kyrtsou, Catherine; Malliaris, Anastasios G.; Serletis, Apostolos

2009-01-01

Modern economies have been subjected to a number of shocks during the past several years such as the burst of the Internet bubble, terrorist attacks, corporate scandals, the war in Iraq, the uncertainty about energy prices, and the recent subprime mortgage crisis. In particular, during the last few years, the energy shock has caused concerns for potential stagflation for both the United States and numerous other countries. We perform numerous univariate tests for non-linearity and chaotic structure using price data from the energy sector to resolve whether the sector's fundamentals or exogenous shocks drive these prices.

Energy sector pricing: On the role of neglected nonlinearity

Energy Technology Data Exchange (ETDEWEB)

Kyrtsou, Catherine [University of Macedonia (Greece); Malliaris, Anastasios G. [Loyola University Chicago (United States); Serletis, Apostolos [University of Calgary (Canada)], E-mail: Serletis@ucalgary.ca

2009-05-15

Modern economies have been subjected to a number of shocks during the past several years such as the burst of the Internet bubble, terrorist attacks, corporate scandals, the war in Iraq, the uncertainty about energy prices, and the recent subprime mortgage crisis. In particular, during the last few years, the energy shock has caused concerns for potential stagflation for both the United States and numerous other countries. We perform numerous univariate tests for non-linearity and chaotic structure using price data from the energy sector to resolve whether the sector's fundamentals or exogenous shocks drive these prices.

Energy sector pricing. On the role of neglected nonlinearity

Energy Technology Data Exchange (ETDEWEB)

Kyrtsou, Catherine [University of Macedonia (Greece); Malliaris, Anastasios G. [Loyola University Chicago (United States); Serletis, Apostolos [University of Calgary (Canada)

2009-05-15

Modern economies have been subjected to a number of shocks during the past several years such as the burst of the Internet bubble, terrorist attacks, corporate scandals, the war in Iraq, the uncertainty about energy prices, and the recent subprime mortgage crisis. In particular, during the last few years, the energy shock has caused concerns for potential stagflation for both the United States and numerous other countries. We perform numerous univariate tests for non-linearity and chaotic structure using price data from the energy sector to resolve whether the sector's fundamentals or exogenous shocks drive these prices. (author)

The relation between food price, energy density and diet quality

Directory of Open Access Journals (Sweden)

Margareta Bolarić

2013-01-01

Full Text Available Low energy density diet, high in fruits and vegetables, is related to lower obesity risk and to better health status, but is more expensive. High energy density diet, high in added sugar and fats, is more affordable, but is related to higher obesity and chronic diseases risk. The aim of this study was to report prices according to energy density (low vs. high of food items and to show how food affordability could affect food choice and consumers’ health. Data was collected for 137 raw and processed foods from three purchase sites in Zagreb (one representative for supermarket, one smaller shop and green market. Results showed that low energy density food is more expensive than high energy density food (for example, the price of 1000 kcal from green zucchini (15 kcal/100 g is 124.20 kn while the price of 1000 kcal from sour cream (138 kcal/100 g is 13.99 kn. Food energy price was significantly different (p<0.05 between food groups with highest price for vegetable products (159.04 ± 36.18 kn/1000 kcal and raw vegetables (97.90 ± 50.13 kn/1000 kcal and lowest for fats (8.49 ± 1.22 kn/1000 kcal and cereals and products (5.66 ± 0.76 kn/1000 kcal. Negative correlation (Spearman r=-0.72, p<0.0001 was observed for energy density (kcal/100 g and price of 1000 kcal. Therefore, it is advisable to develop strategies in order to reduce price of low energy density food and encourage its intake since it would improve diet quality, which could lead to better costumers’ health.

Energy prices. How energy supply companies can make the jump out of the price trap; Energiepreise. EVU kann der Sprung aus der Preisfalle gelingen

Energy Technology Data Exchange (ETDEWEB)

Weinreich, Uwe; Hoffmann, Christian [SNPC GmbH, Berlin (Germany)

2012-12-15

While differentiated price strategies have long been in use in other branches, energy supply companies are still often caught in the habit of thinking from the power plant end. When one starts one's thinking from the customer and the market it opens the way to better product and price strategies - strategies that deliver added value to both customer and energy supplier. However, energy supply companies must align their product and market strategies accordingly in order for this to be successful. Four levels of price management can be distinguished in developing profitability potentials in the energy economy.

Stationarity changes in long-run energy commodity prices

International Nuclear Information System (INIS)

Zaklan, Aleksandar; Abrell, Jan; Neumann, Anne

2016-01-01

Situated at the intersection of the literatures on speculative storage and non-renewable commodity scarcity, this paper considers whether changes in persistence have occurred in long-run U.S. prices of the energy commodities crude oil, natural gas and bituminous coal. We allow for a structural break when testing for a break in persistence to avoid a change in the stochastic properties of prices being confounded by an unaccounted-for deterministic shift in the price series. We find that coal prices are trend stationary throughout their evolution and that oil prices change from stationarity to non-stationarity in the decade between the late 1960s to late 1970s. The result on gas prices is ambiguous. Our results demonstrate the importance of accounting for a possible structural shift when testing for breaks in persistence, while being robust to the exact date of the structural break. Based on our analysis we caution against viewing long-run energy commodity prices as being non-stationary and conclude in favor of modeling commodity market fundamentals as stationary, meaning that speculative storage will tend to have a dampening effect on prices. We also cannot reject that long-run prices of coal and, with some hesitation, gas follow a Hotelling-type rule. In contrast, we reject the Hotelling rule for oil prices since the late 1960s/early 1970s. - Highlights: • This paper contributes to the literatures on speculative storage and scarcity. • We test if long-run U.S. coal, oil and gas prices became non-stationary. • We pre-test for structural breaks when testing for changes in persistence. • Coal prices are found to be trend stationary, oil prices become non-stationary. • We caution against modeling commodity market fundamentals as non-stationary.

Economic impact of the energy price increase in Mexico

International Nuclear Information System (INIS)

Uri, N.D.; Boyd, R.

1997-01-01

One unknown with regard to the price increases for gasoline and electricity is what will be the expected impact as the Mexican economy struggles to rebound. This is of more than spurious concern since many Mexican industries rely both intensively and extensively on gasoline and electricity to produce their goods and services. For example, the petrochemical and steel manufacturing industries are major consumers in Mexico's industrial sector which accounts for 55% of total energy consumption. Mexico's steel industry is one of the most electricity intensive in the world, with heavy reliance on electric arc furnace technology. Mexico's transportation sector accounts for about 30% of total energy consumption. Higher energy prices are expected to affect significantly the price and quantity of the goods and services produced. The nature and extent of this effect is the subject of this article. Also the modelling approach to be used in assessing the impact of higher energy prices will be discussed. 2 tabs., 20 refs

Comparative analysis of public's perception of economic feasibility and reality for selected energy sources in Korea

Energy Technology Data Exchange (ETDEWEB)

Roh, Seungkook; Jeong, Ik; Lee, Kibog [Korea Atomic Energy Research Institute, Daejeon (Korea, Republic of); Kim, Dongwook [KAIST, Daejeon (Korea, Republic of); Kim, Hyunjin [Korea Nuclear Energy Agency, Seoul (Korea, Republic of)

2016-10-15

Controversy on nuclear energy has persisted ever since, but nuclear energy has maintained around 30% of electricity generation in Korea. This is because Korean wants to secure energy security and diversity of energy sources, but the most rational driver behind nuclear energy is the economic feasibility. Looking at the actual prices of electricity traded in the Korean Power Exchange, the price of electricity generated by nuclear energy is 39.1 Korean won per kWh, which is lower than that of other sources: 58.9 (bituminous coal), 221.8 (oil), 158.6 (gas), 170.9 (hydropower), 162.8 (wind) and 463.1 (photovoltaic). However only experts, regulators and people from electricity generation industry are aware of this fact and the public does not seem to be perceiving this correctly. This research, therefore, will compare the economic feasibility of energy sources and how it is perceived by the public in general. This research was able to identify the large gap between public's perception on and reality of economic feasibility of energy sources. There are two possible reasons for the gap. Firstly, the electricity price paid by the public is agnostic of energy sources. Therefore, it is difficult for the public to be aware that the electricity from nuclear energy is benefiting them and hence the public would be indifferent to the real economic feasibility. Secondly, public's awareness of nuclear reactor decommissioning and spent fuel processing along with easier access to relevant information the media would have played a role. In fact, number of press and media has questioned the economic feasibility of nuclear energy. However, the price of electricity generated by nuclear energy includes costs for future activities such as decommissioning, radioactive waste disposal and spent fuel disposal. The public seems to be not aware of such fact and therefore favoring the media. Such analysis leads to two major policy implications. Most importantly, the government should

Optimal stochastic energy management of retailer based on selling price determination under smart grid environment in the presence of demand response program

International Nuclear Information System (INIS)

Nojavan, Sayyad; Zare, Kazem; Mohammadi-Ivatloo, Behnam

2017-01-01

Highlights: • Stochastic energy management of retailer under smart grid environment is proposed. • Optimal selling price is determined in the smart grid environment. • Fixed, time-of-use and real-time pricing are determined for selling to customers. • Charge/discharge of ESS is determined to increase the expected profit of retailer. • Demand response program is proposed to increase the expected profit of retailer. - Abstract: In this paper, bilateral contracting and selling price determination problems for an electricity retailer in the smart grid environment under uncertainties have been considered. Multiple energy procurement sources containing pool market (PM), bilateral contracts (BCs), distributed generation (DG) units, renewable energy sources (photovoltaic (PV) system and wind turbine (WT)) and energy storage system (ESS) as well as demand response program (DRP) as virtual generation unit are considered. The scenario-based stochastic framework is used for uncertainty modeling of pool market prices, client group demand and variable climate condition containing temperature, irradiation and wind speed. In the proposed model, the selling price is determined and compared by the retailer in the smart grid in three cases containing fixed pricing, time-of-use (TOU) pricing and real-time pricing (RTP). It is shown that the selling price determination based on RTP by the retailer leads to higher expected profit. Furthermore, demand response program (DRP) has been implemented to flatten the load profile to minimize the cost for end-user customers as well as increasing the retailer profit. To validate the proposed model, three case studies are used and the results are compared.

Energy consumption and economic development after the energy price increases of 1973

International Nuclear Information System (INIS)

Danielewski, J.

1993-01-01

The interdependence between energy consumption and economic development are highlighted in this research, which focuses on energy price rises between 1973 and 1989. Three groups of countries are identified, developing and developed market economies and centrally planned economies. Two areas of interdependence are examined, firstly the dynamic relationship between primary energy consumption growth and real economic growth and secondly the static relationship between primary energy consumption and national income. In the period under review, developing market economies reacted most strongly to higher energy prices, with lower energy consumption while maintaining real growth in the Gross Domestic Product. However developing countries and centrally planned economies increased their energy consumption per unit of national income although the rate of increase slowed after 1975. (UK)

North American natural gas liquids pricing and convergence : an energy market assessment

International Nuclear Information System (INIS)

2001-05-01

A background on natural gas liquids (NGL) pricing was presented along with a discussion regarding the impact of energy price convergence. The high energy prices in the fall of 2000 were a result of many factors, including the high price of NGLs. All NGL components such as ethane, propane and butane can be used as petrochemical feedstock. In the winter of 2000/2001 the relationship between liquids and crude oil prices collapsed when high energy prices led to a situation where, for a short while, extraction of liquids from natural gas became uneconomic since producers got more value for NGLs left in the gas stream. As a result, when the supply and demand balances for NGL tightened in many regions of North America, NGL prices were reflecting the unprecedented high natural gas prices. This paper also explained how the four major North American NGL trading hubs in Alberta, Ontario, Kansas and Texas operate. The pricing events of 2000 have impacted on the NGL industry and energy prices remain an issue since both crude oil and natural gas price are forecasted to remain strong in the near future. 5 figs

Development of alternative/renewable sources of energy in Pakistan

International Nuclear Information System (INIS)

Sharif, M.

2005-01-01

The depleting Conventional Energy Resources and highly raised prices of fuel oil, coal, firewood and such other fossil fuels, have forced the mankind to think about the utilization of Alternative / Renewable Sources of Energy. Alternative / Renewable Energy is very attractive, reliable and cost competitive energy. Sun is readily available to provide a clean, abundant and virtually infinite energy to meet the significant portion of mankind's energy-needs. The possible use of renewable-energy sources is discussed in this paper, in order to fill the estimated gap between the available energy-sources and energy-needs of our country in the near future. Designing, Fabrication and Installation of different renewable-energy devices by PCSIR are also discussed in this paper. Different renewable-energy devices such as, solar water heaters, solar cookers, solar dehydrators, solar water-desalination plants, solar heating and cooling of buildings, solar operated absorption-type chiller, solar furnace, solar architecture, developed by PCSIR are discussed in some detail so that the role of renewable-energy sources for their direct use (as heat and power) can be determined. Various technical aspects are discussed to reduce the unit cost with improved efficiency. (author)

From a bundled energy-capacity pricing model to an energy-capacity-ancillary services pricing model

International Nuclear Information System (INIS)

Raineri, Ricardo; Arce, Raul; Rios, Sebastian; Salamanca, Carlos

2008-01-01

In this paper, we extend the Chilean power generation pricing mechanism, with capacity and energy payments, to one where ancillary services (AS), as frequency regulation and voltage control, are explicitly recognized. Adequacy and security attributes of the electric system and the public good characteristics of AS are set within the payment structure to distribute the financing of AS among those who benefit from their provision. The contribution to finance the provision of AS is determined assessing the value assigned to the system security by each agent, following what's an efficient pricing mechanism in the presence of public goods

Can Deployment of Renewable Energy and Energy Efficiency PutDownward Pressure on Natural Gas Prices

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark

2005-06-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy and energy efficiency. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent U.S.-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy and energy efficiency on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in U.S. natural gas demand could lead to long-term average wellhead price reductions of 0.8% to 2%, and that each megawatt-hour of renewable energy and energy efficiency may benefit natural gas consumers to the tune of at least $7.5 to $20.

FEATURES OF THE USE OF ALTERNATIVE ENERGY SOURCES IN UKRAINE AND THE WORLD

Directory of Open Access Journals (Sweden)

Olena Liutak

2017-09-01

Full Text Available The purpose of the work is to consider the theoretical applied foundations of the use of alternative sources of energy in Ukraine and the world, the study of the theoretical bases, and specificity of the use of existing alternative energy sources in the context of globalization, the world practice of the use of alternative sources of energy; lighted up the features of the use of alternative energy sources in Ukraine in modern conditions. A special attention is focused on the analysis of energy efficiency of Ukrainian regions and its determinants, and investigated the general trend regarding the situation in the oil market and investment in renewable energy. Methodology The study is based on the indicators of renewable energy and energy efficiency of the regions of Ukraine in 2015 and the inclusion of indicators of the average oil price, investment in renewable energy sources, the rate of growth of prices, growth rates of investments in 2004–2016. In general, in mainland Ukraine, there are several dozens of solar power plants capacity from 1 to 15 MW, and more than a dozen SES have a capacity from 20 to 120 MW (some under construction. Thanks to a special “green tariff”, which is valid since 2011, solar energy has become a lucrative business that has attracted foreign investors. According to statistics, the volume of commissioning of new solar power plants in 2013 almost doubled compared to 2012. Results. It is determined that an important element of policy implementation in the field of energy saving and use of alternative sources is the introduction of financial, organizational and economic activities that give the opportunity to implement principles of sustainable development in public administration, and in terms of decentralization – by local governments. In the management, the determining are such policies in the field of energy efficiency as: pricing mechanisms; mechanisms of regulation and control; financial measures and fiscal

Rise of energy price, rise of agricultural prices: what medium- and long-term relations and implications?

International Nuclear Information System (INIS)

Voituriez, T.

2009-01-01

We review in this study the different factors which have been presented by the scientific community as possible explanations of the sudden upsurge in commodity prices between 2006 and 2008. We examine whether scientific evidence validates any causal relationship, and particularly emphasize the role of explanatory variables underpinning the co-movement of energy and food price rises. Our aim is to provide an up-to-date understanding of food and energy market relationships, so as to better anticipate the possible changes in the evolution of prices in the coming years. (author)

The logic of the primary energy prices evolution

International Nuclear Information System (INIS)

Giraud, P.N.

1992-01-01

This paper deals, very briefly, with the basis factors determining the prices levels of the primary energies and the logic of their evolution both in the short and in the long term. It first gives definitions: of the limits of mineral commodities prices fluctuations and of the long term equilibrium prices. Then, it tries to demonstrate three points: (1) Coal and nuclear electricity prices are driven in the long term only by their own production and environmental costs. Moreover, coal prices fluctuations are surrounded by factors which are basically independent from oil prices. (2) There is no such thing as one single equilibrium price for oil, but several ones, depending on political factors, and among them, on the degree of consensus between the 'Five' of the Gulf (Saudi Arabia, Iran, Irak, Koweit, The Emirates). (3) Natural gas prices are in an intermediate situation, but tend to get closer to the case of coal and nuclear prices. 4 figs

Governmental interventions in the energy market. Study of the Dutch level playing field for fossil fuels, renewable sources, nuclear energy and energy conservation

International Nuclear Information System (INIS)

De Visser, E.; Winkel, T.; De Jager, D.; De Vos, R.; Blom, M.; Afman, M.

2011-06-01

This study has made an inventory of 53 governmental interventions in the Dutch energy market. Moreover, the consequences for the playing field for fossil fuels, renewable sources, nuclear energy and energy saving have been quantified. It shows that the government still stimulates the use of energy and fossil fuels more than it stimulates use of renewable energy sources. Policy that focuses on decreasing the price differences between sustainable and fossil should therefore focus on the phase-out of this support and subsequently on bridging the remaining financial gap. [nl

Modelling energy spot prices by Lévy semistationary processes

DEFF Research Database (Denmark)

Barndorff-Nielsen, Ole; Benth, Fred Espen; Veraart, Almut

This paper introduces a new modelling framework for energy spot prices based on Lévy semistationary processes. Lévy semistationary processes are special cases of the general class of ambit processes. We provide a detailed analysis of the probabilistic properties of such models and we show how...... they are able to capture many of the stylised facts observed in energy markets. Furthermore, we derive forward prices based on our spot price model. As it turns out, many of the classical spot models can be embedded into our novel modelling framework....

Optimal portfolio selection between different kinds of Renewable energy sources

Energy Technology Data Exchange (ETDEWEB)

Zakerinia, MohammadSaleh; Piltan, Mehdi; Ghaderi, Farid

2010-09-15

In this paper, selection of the optimal energy supply system in an industrial unit is taken into consideration. This study takes environmental, economical and social parameters into consideration in modeling along with technical factors. Several alternatives which include renewable energy sources, micro-CHP systems and conventional system has been compared by means of an integrated model of linear programming and three multi-criteria approaches (AHP, TOPSIS and ELECTRE III). New parameters like availability of sources, fuels' price volatility, besides traditional factors are considered in different scenarios. Results show with environmental preferences, renewable sources and micro-CHP are good alternatives for conventional systems.

Demand response power system optimization in presence of renewable energy sources

Directory of Open Access Journals (Sweden)

Dumbrava Virgil

2017-07-01

Full Text Available This paper optimizes the price-based demand response of a large customer in a power system with stochastic production and classical fuel-supplied power plants. The implemented method of optimization, under uncertainty, is helpful to model both the utility functions for the consumers and their technical limitations. The consumers exposed to price-based demand can reduce their cost for electricity procurement by modifying their behavior, possibly shifting their consumption during the day to periods with low electricity prices. The demand is considered elastic to electricity price if the consumer is willing and capable to buy various amounts of energy at different price levels, the demand function being represented as purchasing bidding blocks. The demand response is seen also by the scientific literature as a possible source of the needed flexibility of modern power systems, while the flexibility of conventional generation technologies is restricted by technical constraints, such as ramp rates. This paper shows how wind power generation affects short term operation of the electricity system. Fluctuations in the amount of wind power fed into the grid require, without storage capacities, compensating changes in the output of flexible generators or in the consumers’ behavior. In the presented case study, we show the minimization of the overall costs in presence of stochastic wind power production. For highlighting the variability degree of production from renewable sources, four scenarios of production were formulated, with different probabilities of occurrence. The contribution brought by the paper is represented by the optimization model for demand-response of a large customer in a power system with fossil fueled generators and intermittent renewable energy sources. The consumer can reduce the power system costs by modifying his demand. The demand function is represented as purchasing bidding blocks for the possible price forecasted realizations

The Impact of Energy Price Decline on China's Energy-Economy-Environment System Variables Using a CGE Model

DEFF Research Database (Denmark)

Guo, Zhengquan; Wang, Daojuan; Chen, Chong

In recent years, prices of coal and crude oil have fallen significantly. These declines have had a large impact on China’s energy-economy-environment system variables. This paper establishes a computable general equilibrium model to systematically analyse the impact of coal price changes alone...... or the decline of both coal and oil prices on the variables of China's energy-economy-environment system. The results of the analysis show that the decline of the coal price alone or of coal and crude oil prices together will lead to a significant increase in demand for either coal and total energy or coal...

Gradual reforms and the emergence of energy market in China: Evidence from tests for convergence of energy prices

International Nuclear Information System (INIS)

Ma Hengyun; Oxley, Les; Gibson, John

2009-01-01

This study investigates the emergence of energy markets by testing for convergence of energy prices with a new dataset on energy spot prices in 35 major cities in China. Both descriptive statistics and unit root are employed to test the convergence of energy prices for each of four fuel price series. The whole study period is divided into two sub-periods in order to reconcile the gradual energy reforms. The results show the steady improvement in energy market performance in China, especially during the second sub-period, which suggests that the market appears to be playing an increasing role in determining energy prices. While panel unit root tests show energy markets are integrated in China as a whole, city-by-city univariate unit root tests suggest that there are still many regional energy markets, probably because energy reserves (especially coal) vary widely across regions. Since China's energy economy is gradually moving towards market-oriented mechanisms, the existing literature may become obsolete soon.

Energy price dispute - companies are confident

International Nuclear Information System (INIS)

Marcan, P.; Slovak, P.

2007-01-01

Energy prices stipulated for 2003 were not compliant with the valid legislation. The Constitutional Court has repeatedly confirmed this fact. The dispute between several Slovak companies and the state will address the damage caused by illegal actions taken by the public authority, including loss of profit. A group of claimants represented by the Club 500 association is claiming up to 2 bil. Sk (57.97 mil. EUR) as compensation for the mistake made by the Office for Regulation of Network Industries (URSO), including the unclear calculation of the lost profit of companies. It will be up to the courts to decide whether the price deregulation really caused damage to the companies or whether they just took advantage of the faulty legislation.The companies base their claims on a decision of the Constitutional Court. Last year the Court twice announced that the 2003 energy prices were not compliant with valid legislation. At that time, Slovakia lacked a generally binding regulation that should have been in place according to the Act on Regulation of Network Industries. Currently, the role of these missing regulations has been taken over by URSO decrees. These stipulate justified costs and adequate profit of energy suppliers. The regulator had such a decree prepared at the end of 2002, but due to material stipulations and time constraints it did not publish it. (authors)

Wholesale pricing policies for energy in developing countries

International Nuclear Information System (INIS)

de Lucia, R. J.

1990-01-01

This chapter focuses on wholesale pricing policies with particular emphasis on domestic fuels. There are several characteristics of the supply system that affect wholesale pricing: Source of the fuel (imported or domestic); Characteristics of the fuel (tradable or non-tradable); Nature of the supply companies (public or private and, if private, local or multinational); and stage of development of the resource. Each of these characteristics has implications for how the components of the efficient wholesale price of fuels are determined. (author). 13 refs., 3 figs., 5 tabs

Actuarial pricing of energy efficiency projects: lessons foul and fair

Energy Technology Data Exchange (ETDEWEB)

Mathew, Paul E-mail: pamathew@lbl.gov; Kromer, J. Stephen; Sezgen, Osman; Meyers, Steven

2005-07-01

Recent market convulsions in the energy industry have generated a plethora of post-mortem analyses on a wide range of issues, including accounting rules, corporate governance, commodity markets, and energy policy. While most of these analyses have focused on business practices related to wholesale energy trading, there has been limited analysis of retail energy services, particularly energy efficiency projects. We suggest that there were several business concepts and strategies in the energy efficiency arena whose inherent value may have been masked by the larger failure of companies such as Enron. In this paper, we describe one such concept, namely, actuarial pricing of energy efficiency projects, which leverages a portfolio-based approach to risk management. First, we discuss the business drivers, contrasting this approach with conventional industry practice. We then describe the implementation of this approach, including an actuarial database, pricing curves, and a pricing process compatible with commodity pricing. We conclude with a discussion of the prospects and barriers for the further development of transparent and quantifiable risk management products for energy efficiency, a prerequisite for developing energy efficiency as a tradeable commodity. We address these issues from an experiential standpoint, drawing mostly on our experience in developing and implementing such strategies at Enron.

Actuarial pricing of energy efficiency projects: lessons foul and fair

International Nuclear Information System (INIS)

Mathew, Paul; Kromer, J. Stephen; Sezgen, Osman; Meyers, Steven

2005-01-01

Recent market convulsions in the energy industry have generated a plethora of post-mortem analyses on a wide range of issues, including accounting rules, corporate governance, commodity markets, and energy policy. While most of these analyses have focused on business practices related to wholesale energy trading, there has been limited analysis of retail energy services, particularly energy efficiency projects. We suggest that there were several business concepts and strategies in the energy efficiency arena whose inherent value may have been masked by the larger failure of companies such as Enron. In this paper, we describe one such concept, namely, actuarial pricing of energy efficiency projects, which leverages a portfolio-based approach to risk management. First, we discuss the business drivers, contrasting this approach with conventional industry practice. We then describe the implementation of this approach, including an actuarial database, pricing curves, and a pricing process compatible with commodity pricing. We conclude with a discussion of the prospects and barriers for the further development of transparent and quantifiable risk management products for energy efficiency, a prerequisite for developing energy efficiency as a tradeable commodity. We address these issues from an experiential standpoint, drawing mostly on our experience in developing and implementing such strategies at Enron

Long memory in German energy price indices

Energy Technology Data Exchange (ETDEWEB)

Barros, Carlos P. [Lisbon Univ. (Portugal). Inst. Superior de Economia e Gestao; Caporale, Guglielmo Maria [Brunel Univ., London (United Kingdom). Centre for Empirical Finance; Gil-Alana, Luis A. [Navarra Univ., Pamplona (Spain). Faculty of Economics and Business Administration

2012-09-15

This study examines the long-memory properties of German energy price indices (specifically, import and export prices, as well as producer and consumer prices) for hard coal, lignite, mineral oil and natural gas adopting a fractional integration modelling framework. The analysis is undertaken using monthly data from January 2000 to August 2011. The results suggest nonstationary long memory in the series (with orders of integration equal to or higher than 1) when breaks are not allowed for. However, endogenous break tests indicate a single break in all series except for producer prices for lignite for which two breaks are detected. When such breaks are taken into account, and with autocorrelated disturbances, evidence of mean reversion is found in practically all cases.

Arbitrage free pricing of forward and futures in the energy market

International Nuclear Information System (INIS)

Kloster, Kristian

2003-01-01

This thesis will describe a method for an arbitrage-free evaluation of forward and futures contracts in the Nordic electricity market. This is a market where it is not possible to hedge using the underlying asset which one normally would do. The electricity market is a relatively new market, and is less developed than the financial markets. The pricing of energy and energy derivatives are depending on factors like production, transport, storage etc. There are different approaches when pricing a forward contract in an energy market. With motivation from interest rate theory, one could model the forward prices directly in the risk neutral world. Another approach is to start out with a model for the spot prices in the physical world, and then derive theoretical forward prices, which then are fitted to observed forward prices. These and other approaches are described by Clewlow and Strickland in their book, Energy derivatives. This thesis uses the approach where I start out with a model for the spot price, and then derive theoretical forward prices. I use a generalization of the multifactor Schwartz model with seasonal trends and Ornstein Uhlenbeck processes to model the spot prices for electricity. This continuous-time model also incorporates mean-reversion, which is an important aspect of energy prices. Historical data for the spot prices is used to estimate my variables in the multi-factor Schwartz model. Then one can specify arbitrage-free prices for forward and futures based on the Schwartz model. The result from this procedure is a joint spot and forward price model in both the risk neutral and physical market, together with knowledge of the equivalent martingale measure chosen by the market. This measure can be interpreted as the market price of risk, which is of interest for risk management. In this setup both futures and forward contracts will have the same pricing dynamics, as the only difference between the two types of contracts is how the payment for the

Market-driven energy pricing necessary to ensure China's power supply

International Nuclear Information System (INIS)

Wang, Qiang; Qiu, Huan-Ning; Kuang, Yaoqiu

2009-01-01

China's rapid economic growth has strained its power supply, as manifested for instance by the widespread 2008 power shortage. The cause for this shortage is thought to be the current Chinese energy pricing system, which is mainly government rather than market controlled. Government-regulated price-caps for coal have seriously affected coal supply. At the same time price-caps for electricity supply have caused suspension of power plant operation. As a result, the average operating time of coal-fired power plants declined 50 h annually across the nation in the first half of 2008 compared to the previous year, despite clear power shortages. Here, it will be suggested that energy pricing, set by supply and demand may effectively discourage excessive growth in heavy industry, substantially encourage energy conservation and efficiency, and curb the rapid electricity demand in China. It will be argued that a market-oriented electricity pricing mechanism is required for China to secure its future power supply. (author)

Energy pricing. Economics and principles

Energy Technology Data Exchange (ETDEWEB)

Conkling, Roger L. [Portland Univ., OR (United States). School of Business Administration

2011-07-01

This book describes the processes through which rates for energy consumption are derived, ranging from initial analyses of the supply and demand parameters to the final forms and levels of end-use consumer prices. The author argues against aggressive accounting procedures, and suggests criteria for choosing firm's position on pending public policy issues. A handbook on energy formulae for non-professionals is included in the book. The author is adjunct professor at the University of Portland. (orig.)

An analysis of Renewable Portfolio Standard policy formulation and its influence on state level energy prices

Science.gov (United States)

McCollester, Peter Colin

Over the past two decades, environmental concern has crept to the forefront of the world policy agenda. This concern has manifested itself differently throughout the world. In the United States, this has come in the form of Renewable Portfolio Standards (RPS) which have become one of the primary policy tools which states use to encourage renewable energy generation. The advent of RPS has spurred intense debate at a federal and state level, centering on the economic merits of promoting renewable energy generation. Detractors argue that RPS will raise electricity rates, since generation from renewable sources is typically costlier than energy generated from fossil fuels. At this point, evidence to the relationship between RPS on electricity prices remains unclear. Researchers have attempted to understand this relationship through a variety of means. The most common being regression based models, which utilize readily available United States Energy Information Agency (US EIA) data, and have uncovered a number of important independent variables which are incorporated into the model in this study. Examples include personal income, state population, and deregulation of an energy market. In addition to empirical studies, the National Renewable Energy Laboratory (NREL) has created complex mathematical models which generate scenario projections based on a number of assumptions. While interesting, these are forward looking tools and as such have not yielded a tremendous amount of insight into the underlying policy mechanics of RPS. A challenge of addressing this topic which is worth noting is that much of the research available which analyzes the merits of RPS caters to distinct political or private sector agendas. The research gathered for this study is comprehensive, and attempts to avoid studies with any clear political, ideological, or financial motivation. Using the insights from previous researchers this study develops a rigorous fixed effects regression model to

Contract Source Selection: An Analysis of Lowest Price Technically Acceptable and Tradeoff Strategies

Science.gov (United States)

2016-06-15

using- spss - statistics.php Lamoureux, J., Murrow, M., & Walls, C. (2015). Relationship of source selection methods to contract outcomes: an analysis ...Contract Source Selection: an Analysis of Lowest Price Technically Acceptable and Tradeoff Strategies 15 June 2016 LCDR Jamal M. Osman, USN...ACQUISITION RESEARCH PROGRAM SPONSORED REPORT SERIES Contract Source Selection: an Analysis of Lowest Price Technically Acceptable and Tradeoff

Renewable energy made easy free energy from solar, wind, hydropower, and other alternative energy sources

CERN Document Server

Craddock, David

2008-01-01

Studies have shown that the average North American family will spend more than a quarter of a million dollars on energy in a lifetime. What many other countries, including Germany, Spain, France, Denmark, China, Brazil, and even Iceland, have realized is that there is a better way to power our homes, businesses, and cars by using renewable energy sources. Recently, the United States has begun to understand the importance of reducing its reliance on coal, natural gas, nuclear power, and hydropower plants, which comprise the majority of the nation's electricity, due to increasing oil prices.

Russian energy prices, taxes and costs 1993

International Nuclear Information System (INIS)

1994-01-01

The Russian energy industry may be the country's most promising exporter, but it is struggling to free itself from the heavy regulation and economic distortions inherited from the Soviet era. This analysis examines Russian price and tax policies as well as production costs in 1993, and their effect on supply and demand in the oil, coal, gas and electricity sectors. The study underscores the broad consensus among both Western and Russian experts that primary energy prices should be lifted to world levels. It offers a framework for addressing the great question about how fast this should be done in a country undergoing a tremendous social and political transformation

Differential electricity pricing and energy efficiency in South Africa

International Nuclear Information System (INIS)

Kohler, Marcel

2014-01-01

By international standards the economy of South Africa is extremely energy intensive with only a few countries having higher intensities. SA's primary energy use per unit of GDP is amongst the highest in the world. The high energy and electricity intensity of the economy partly reflects SA's resource endowments (in particular the abundance of coal) but is also a function of the historical under-pricing of coal and electricity by the authorities. South African mining and industrial electricity efficiency is particularly concerning and considerably lower than the global average. This paper sets out to fill a significant gap in the South African energy literature by highlighting the importance of incorporating electricity demand factors as part of the country's energy policy and electricity planning horizon. The paper focuses its attention on modelling the electricity consumption of SA's industrial and mining sectors given these account for the lion's share of electricity demand. A differential electricity pricing policy which targets electricity intensive industrial and mining activities (as practised in China since 2004) is viewed by the author to be a superior policy to blanket electricity price increases administered by authorities in an effort to encourage electricity savings and improve energy efficiency in South Africa. - Highlights: • SA's primary energy use per unit of GDP is amongst the highest in the world. • SA industrial electricity efficiency is considerably lower than the global average. • A differential electricity pricing policy which targets electricity intensive activities. • Differential tariffs raise the cost of energy inefficiency and induces energy saving. • Highlights importance of energy demand modelling in electricity supply planning

Energy Statistics

International Nuclear Information System (INIS)

Anon.

1994-01-01

For the years 1992 and 1993, part of the figures shown in the tables of the Energy Review are preliminary or estimated. The annual statistics of the Energy Review appear in more detail from the publication Energiatilastot - Energy Statistics issued annually, which also includes historical time series over a longer period. The tables and figures shown in this publication are: Changes in the volume of GNP and energy consumption; Coal consumption; Natural gas consumption; Peat consumption; Domestic oil deliveries; Import prices of oil; Price development of principal oil products; Fuel prices for power production; Total energy consumption by source; Electricity supply; Energy imports by country of origin in 1993; Energy exports by recipient country in 1993; Consumer prices of liquid fuels; Consumer prices of hard coal and natural gas, prices of indigenous fuels; Average electricity price by type of consumer; Price of district heating by type of consumer and Excise taxes and turnover taxes included in consumer prices of some energy sources

Energy prices and the post oil/energy crisis Brazilian inflation: an input-output study

Energy Technology Data Exchange (ETDEWEB)

Lara-Resende, M.deM.

1982-01-01

This study is an attempt to understand the implications of the OPEC-induced severalfold increase in the international price of oil for average and sectoral domestic prices in Brazil, a large oil-importing open developing economy. Rather than using a Keynesian model (focusing on the universal characteristics of an economy), the study makes use of an open-price input-output model (capturing the structural characteristics of the Brazilian economy). The first three chapters, descriptive in nature, place in perspective the following three, which detail the model and the empirical results. The main conclusion is that, despite the significant increase observed in the post-crisis period, the relative percentage contribution of primary energy to wholesale inflation in Brazil is still relatively minor. A conservative estimate suggests that, in the years of substantial acceleration (1974 and 1979), approximately 15% of the wholesale inflation was due to energy (basically crude oil and oil derivatives). Though such low estimates are partly due to the limitations and assumptions underlying input-output analysis, it seems that the acceleration of inflation is related to more than cost increases originating in energy prices. It also seems to be related to agricultural and labor prices, as well as to the government's decision to abruptly and inopportunely raise several important product prices.

Decrease of energy and emission prices undesired. Unfair attack on CO2-levies

International Nuclear Information System (INIS)

Blom, M.; De Keizer, I.; Benner, J.

2005-01-01

Recently, in the Netherlands, fuel taxes and prices for CO2 emission are criticised. High energy prices are used to suggest other forms of pricing regulations. However, the higher energy prices and CO2-levies are very useful in realizing a sustainable energy supply. More transparency in the market for emissions trading is required to prevent unfair on-charge expenses of CO2-charges [nl

Renewable Energy Price-Stability Benefits in Utility Green Power Programs

Energy Technology Data Exchange (ETDEWEB)

Bird, L. A.; Cory, K. S.; Swezey, B. G.

2008-08-01

This paper examines utility experiences when offering the fixed-price benefits of renewable energy in green pricing programs, including the methods utilized and the impact on program participation. It focuses primarily on utility green pricing programs in states that have not undergone electric industry restructuring.

Innovation and the price of wind energy in the US

International Nuclear Information System (INIS)

Berry, David

2009-01-01

In the last ten years, the wind energy industry has experienced many innovations resulting in wider deployment of wind energy, larger wind energy projects, larger wind turbines, and greater capacity factors. Using regression analysis, this paper examines the effects of technological improvements and other factors on the price of wind energy charged under long-term contracts in the United States. For wind energy projects completed during the period 1999-2006, higher capacity factors and larger wind farms contributed to reductions in wind energy contract prices paid by regulated investor owned utilities in 2007. However, this effect was offset by rising construction costs. Turbine size (in MW) shows no clear relationship to contract prices, possibly because there may be opposing factors tending to decrease costs as turbine size increases and tending to increase costs as turbine size increases. Wind energy is generally a low-cost resource that is competitive with natural gas-fired power generation.

Accounting for asymmetric price responses and underlying energy demand trends in OECD industrial energy demand

International Nuclear Information System (INIS)

Adeyemi, Olutomi I.; Hunt, Lester C.

2014-01-01

This paper explores the way technical progress and improvements in energy efficiency are captured when modelling OECD industrial energy demand. The industrial sectors of the developed world involve a number of different practices and processes utilising a range of different technologies. Consequently, given the derived demand nature of energy, it is vital when modelling industrial energy demand that the impact of technical progress is appropriately captured. However, the energy economics literature does not give a clear guide on how this can be achieved; one strand suggests that technical progress is ‘endogenous’ via asymmetric price responses whereas another strand suggests that it is ‘exogenous’. More recently, it has been suggested that potentially there is a role for both ‘endogenous’ technical progress and ‘exogenous’ technical progress and consequently the general model should be specified accordingly. This paper therefore attempts to model OECD industrial energy demand using annual time series data over the period 1962–2010 for 15 OECD countries. Using the Structural Time Series Model framework, the general specifications allow for both asymmetric price responses (for technical progress to impact endogenously) and an underlying energy demand trend (for technical progress and other factors to impact exogenously, but in a non-linear way). The results show that almost all of the preferred models for OECD industrial energy demand incorporate both a stochastic underlying energy demand trend and asymmetric price responses. This gives estimated long-run income elasticities in the range of 0.34 to 0.96; estimated long-run price-maximum elasticities in the range of − 0.06 to − 1.22; estimated long-run price-recovery elasticities in the range of 0.00 to − 0.27; and estimated long-run price-cut elasticities in the range of 0.00 to − 0.18. Furthermore, the analysis suggests that when modelling industrial energy demand there is a place for �

Correlation between Chinese and international energy prices based on a HP filter and time difference analysis

International Nuclear Information System (INIS)

He, Yongxiu; Wang, Bing; Wang, Jianhui; Xiong, Wei; Xia, Tian

2013-01-01

To establish a reasonable system and mechanism for Chinese energy prices, we use the Granger causality test, Hodrick–Prescott (HP) filter and time difference analysis to research the pricing relationship between Chinese and international energy prices. We find that Chinese and international crude oil prices changed synchronously while Chinese refined oil prices follow the changes of international oil prices with the time difference being about 1 month to 2 months. Further, Australian coal prices Granger causes Chinese coal prices, and there is a high correlation between them. The U.S. electricity price is influenced by the WTI crude oil price, the U.S. gasoline price and the HenryHub gas price. Due to the unreasonable price-setting mechanism and regulation from the central government, China′s terminal market prices for both electricity and natural gas do not reflect the real supply–demand situation. This paper provides quantitative results on the correlation between Chinese and international energy prices to better predict the impact of international energy price fluctuations on China′s domestic energy supply and guide the design of more efficient energy pricing policies. Moreover, it provides references for developing countries to improve their energy market systems and trading, and to coordinate domestic and international energy markets. -- Highlights: •The Hodrick-Prescott filter and time difference analysis are used to research the correlation among energy prices. •Our study finds that the U.S. and British refined oil prices Granger cause the Chinese refined oil price. •Both Chinese and the Australian coal prices play an important role in the international coal market. •The Chinese terminal electric power and terminal natural gas prices are not highly correlated. •The results are useful for guiding the design of more efficient energy pricing policies in China

The empirical relationship between energy futures prices and exchange rates

International Nuclear Information System (INIS)

Sadorsky, P.

2000-01-01

This paper investigates the interaction between energy futures prices and exchange rates. Results are presented to show that futures prices for crude oil, heating oil and unleaded gasoline are co-integrated with a trade-weighted index of exchange rates. This is important because it means that there exists a long-run equilibrium relationship between these four variables. Granger causality results for both the long- and short-run are presented. Evidence is also presented that suggests exchange rates transmit exogenous shocks to energy futures prices. 22 refs

Renewable energy as a natural gas price hedge: the case of wind

International Nuclear Information System (INIS)

Berry, David

2005-01-01

Electric utilities use natural gas to fuel many of their power plants, especially those plants which provide electricity at peak and intermediate hours. Natural gas prices are highly volatile and have shown a general upward trend. Wind energy can provide a cost-effective hedge against natural gas price volatility or price increases. This conclusion is based on analysis of the costs of marginal conventional generation given the historical probability distribution of natural gas prices, the cost of wind energy, wind integration costs, transmission costs for wind energy, the capacity value of wind, and environmental benefits of wind energy for a hypothetical utility in the Southwestern United States. The efficacy of using wind energy as a hedge at a particular utility will depend on site specific conditions

Exploring the impact of co-varying water availability and energy price on productivity and profitability of Alpine hydropower

Science.gov (United States)

Anghileri, Daniela; Botter, Martina; Castelletti, Andrea; Burlando, Paolo

2016-04-01

Alpine hydropower systems are experiencing dramatic changes both from the point of view of hydrological conditions, e.g., water availability and frequency of extremes events, and of energy market conditions, e.g., partial or total liberalization of the market and increasing share of renewable power sources. Scientific literature has, so far, mostly focused on the analysis of climate change impacts and associated uncertainty on hydropower operation, underlooking the consequences that socio-economic changes, e.g., energy demand and/or price changes, can have on hydropower productivity and profitability. In this work, we analyse how hydropower reservoir operation is affected by changes in both water availability and energy price. We consider stochastically downscaled climate change scenarios of precipitation and temperature to simulate reservoir inflows using a physically explicit hydrological model. We consider different scenarios of energy demand and generation mix to simulate energy prices using an electricity market model, which includes different generation sources, demand sinks, and features of the transmission lines. We then use Multi-Objective optimization techniques to design the operation of hydropower reservoirs for different purposes, e.g. maximization of revenue and/or energy production. The objective of the work is to assess how the tradeoffs between the multiple operating objectives evolve under different co-varying climate change and socio-economic scenarios and to assess the adaptive capacity of the system. The modeling framework is tested on the real-world case study of the Mattmark reservoir in Switzerland.

The long-run forecasting of energy prices using the model of shifting trend

International Nuclear Information System (INIS)

Radchenko, Stanislav

2005-01-01

Developing models for accurate long-term energy price forecasting is an important problem because these forecasts should be useful in determining both supply and demand of energy. On the supply side, long-term forecasts determine investment decisions of energy-related companies. On the demand side, investments in physical capital and durable goods depend on price forecasts of a particular energy type. Forecasting long-run rend movements in energy prices is very important on the macroeconomic level for several developing countries because energy prices have large impacts on their real output, the balance of payments, fiscal policy, etc. Pindyck (1999) argues that the dynamics of real energy prices is mean-reverting to trend lines with slopes and levels that are shifting unpredictably over time. The hypothesis of shifting long-term trend lines was statistically tested by Benard et al. (2004). The authors find statistically significant instabilities for coal and natural gas prices. I continue the research of energy prices in the framework of continuously shifting levels and slopes of trend lines started by Pindyck (1999). The examined model offers both parsimonious approach and perspective on the developments in energy markets. Using the model of depletable resource production, Pindyck (1999) argued that the forecast of energy prices in the model is based on the long-run total marginal cost. Because the model of a shifting trend is based on the competitive behavior, one may examine deviations of oil producers from the competitive behavior by studying the difference between actual prices and long-term forecasts. To construct the long-run forecasts (10-year-ahead and 15-year-ahead) of energy prices, I modify the univariate shifting trends model of Pindyck (1999). I relax some assumptions on model parameters, the assumption of white noise error term, and propose a new Bayesian approach utilizing a Gibbs sampling algorithm to estimate the model with autocorrelation. To

Pricing and Capacity Planning Problems in Energy Transmission Networks

DEFF Research Database (Denmark)

Villumsen, Jonas Christoffer

strategy. In the Nordic electricity system a market with zonal prices is adopted. We consider the problem of designing zones in an optimal way explicitly considering uncertainty. Finally, we formulate the integrated problem of pipeline capacity expansion planning and transmission pricing in natural gas...... necessitates a radical change in the way we plan and operate energy systems. Another paradigm change which began in the 1990’s for electricity systems is that of deregulation. This has led to a variety of different market structures implemented across the world. In this thesis we discuss capacity planning...... and transmission pricing problems in energy transmission networks. Although the modelling framework applies to energy networks in general, most of the applications discussed concern the transmission of electricity. A number of the problems presented involves transmission switching, which allows the operator...

The turning black tide : energy prices and the Canadian dollar

International Nuclear Information System (INIS)

Issa, R.; Lafrance, R.; Murray, J.

2008-01-01

This paper examined the relationship between energy prices and the Canadian-United States dollar real exchange rate. The researchers evaluated the standard Amano-van Norden (AvN) equation formulated to demonstrate that higher real energy prices lead to a depreciation of the Canadian dollar. Major developments in the Canadian energy market were discussed, as well as policy initiatives designed to address Canada's trade balance by increasing energy exports. The study examined the AvN equation using Monte Carlo experiments to determine the parameter stability of the equation. Results indicated that the co-integrating relationship in the standard AvN equation were no longer supported. Structural break tests were used to demonstrate that major changes in Canada's energy policies and cross-border trade and investment strategies have led to an increase in the Canadian dollar's value when energy prices are high. The study presented a new equation designed to account for Canadian dollar's appreciation since 2003. It was concluded that net energy exports in the 1990s outweighed the negatives associated with Canada's energy-intensive production processes. 39 refs., 6 tabs., 10 figs

Energy prices, technological knowledge and green energy innovation. A dynamic panel analysis of patent counts

International Nuclear Information System (INIS)

Kruse, Juergen; Wetzel, Heike; Koeln Univ.

2014-01-01

We examine the effect of energy prices and technological knowledge on innovation in green energy technologies. In doing so, we consider both demand-pull effects, which induce innovative activity by increasing the expected value of innovations, and technology-push effects, which drive innovative activity by extending the technological capability of an economy. Our analysis is conducted using patent data from the European Patent Office on a panel of 26 OECD countries over the period 1978-2009. Utilizing a dynamic count data model for panel data, we analyze 11 distinct green energy technologies. Our results indicate that the existing knowledge stock is a significant driver of green energy innovation for all technologies. Furthermore, the results suggest that energy prices have a positive impact on innovation for some but not all technologies and that the e.ect of energy prices and technological knowledge on green energy innovation becomes more pronounced after the Kyoto protocol agreement in 1997.

The impact of intermittently renewable energy on Italian wholesale electricity prices: Additional benefits or additional costs?

International Nuclear Information System (INIS)

Gullì, Francesco; Balbo, Antonio Lo

2015-01-01

Most studies of the literature find that the development of renewable energy sources determines a decrease in the wholesale prices. Some authors use this finding to state that the current subsidies for renewable technologies cannot be considered as excessive. By carrying out a hybrid analysis (both simulation and ex-post empirical analyses) of the case of photovoltaic energy in Italy, this article demonstrates that this result cannot be generalised. Under market power, an increase in PV production can provide benefits in terms of a wholesale price decrease only beyond a specific threshold and especially if combined with other effects. Otherwise, it is likely that PV development could imply an increase in prices. Therefore, on the one hand, caution is necessary when using the estimated change in wholesale prices to evaluate the net cost for consumers of the supporting policies for renewables: either the simulation-based models or the full empirical analyses may be misleading. On the other hand, if 'decarbonisation' is the main objective, the energy policies should be designed in order to assure a deep and balanced penetration of the clean technologies, regardless of their estimated transitory impact on wholesale prices (and in the meantime reviewing the organisation of power markets). -- Highlights: •We use a hybrid analysis based on a combined approach (both simulation and ex-post empirical analyses). •There is a critical threshold of RES penetration within which prices may increase. •Price increases are more likely with PV rather than with wind power. •Either the simulation models or the full empirical analyses may be misleading. •Caution is necessary when using the results of these analyses for policy decisions

The energy price equivalence of carbon taxes and emissions trading—Theory and evidence

International Nuclear Information System (INIS)

Chiu, Fan-Ping; Kuo, Hsiao-I.; Chen, Chi-Chung; Hsu, Chia-Sheng

2015-01-01

Highlights: • The price equivalence of carbon taxes and emissions trading from theoretical and empirical models are developed. • The theoretical findings show that the price effects of these two schemes depend on the market structures. • Energy prices under a carbon tax is lower than an issions trading in an imperfectly competitive market. • A case study from Taiwan gasoline market is applied here. - Abstract: The main purpose of this study is to estimate the energy price equivalence of carbon taxes and emissions trading in an energy market. To this end, both the carbon tax and emissions trading systems are designed in the theoretical model, while alternative market structures are taken into consideration. The theoretical findings show that the economic effects of these two schemes on energy prices depend on the market structures. Energy prices are equivalent between these two schemes given the same amount of greenhouse gas emissions (GHGE) reduction when the market structure is characterized by perfect competition. However, energy prices will be lower when a carbon tax is introduced than when emissions trading is implemented in an imperfectly competitive market, which implies that the price effects of a carbon tax and emissions trading depend on the energy market structure. Such a theoretical basis is applied to the market for gasoline in Taiwan. The empirical results indicate that the gasoline prices under a carbon tax are lower than under emissions trading. This implies that the structure of the energy market needs to be examined when a country seeks to reduce its GHGE through the implementation of either a carbon tax or emissions trading.

China's coal price disturbances: Observations, explanations, and implications for global energy economies

International Nuclear Information System (INIS)

Yang, Chi-Jen; Xuan, Xiaowei; Jackson, Robert B.

2012-01-01

Since China decontrolled coal prices, its coal price has risen steadily and been unusually volatile. In 2011 in particular, high coal prices and capped electricity prices in China discouraged coal-fired power generation, triggering widespread power shortages. We suggest that these coal-price disturbances could be symptomatic of a major change in pricing dynamics of global fossil-fuel markets, with increasing correspondence between coal and oil prices globally. Historically, global coal prices have been more stable and lower than oil and natural gas prices on a per-heat basis. In recent years, however, coal prices have been increasingly volatile worldwide and have tracked other fossil fuel prices more closely. Meanwhile, the recent development of unconventional gas has substantially decoupled US natural gas and oil prices. Technically, low US natural gas prices, with potential fuel switching, could drive US domestic coal prices lower. However, this effect is unlikely to counteract the overall trend in increasing coal consumption globally. China's market size and unique, partially-controlled energy system make its reform agenda a key force in the global economy. Policymakers in the US, E.U. and elsewhere should monitor China's economic reform agenda to anticipate and respond to changes accompanying China's increasing importance in the global energy economy. - Highlights: ► Since China decontrolled its coal prices, the price of coal has risen steadily in China, accompanied by unusual volatility. ► Relatively high and volatile coal prices have triggered widespread power shortages in China. ► Coal and oil prices have already become, and continue to become, more closely linked globally. ► China's demand will likely drive up global coal prices and make them as volatile as that of other fossil fuels. ► Policymakers should monitor China's economic reform agenda to anticipate and respond to changes in the global energy economy.

The evolution of the support scheme for promoting renewable energy sources in Romania

Directory of Open Access Journals (Sweden)

Atănăsoae Pavel

2016-01-01

Full Text Available The paper presents an analysis of the evolution of the support scheme for promoting renewable energy sources in Romania, following: the annual mandatory quotas of green certificate purchase and those achieved; the price of green certificates; the evolution of the RES-E installed capacity and implicitly of the investments in renewable energy sources; the structure of the installed power in RES-E (wind power plants, photovoltaic power plants, hydroelectric power plants with an installed capacity that is not larger than 10 MW, biomass power plants; the contribution of the renewable energy sources to the production of electricity in Romania.

Occupancy-based demand response and thermal comfort optimization in microgrids with renewable energy sources and energy storage

NARCIS (Netherlands)

Korkas, C; Baldi, S.; Michailidis, I; Kosmatopoulos, EB

2016-01-01

Integration of renewable energy sources in microgrids can be achieved via demand response programs, which change the electric usage in response to changes in the availability and price of electricity over time. This paper presents a novel control algorithm for joint demand response management and

Oil crops: requirements and possibilities for their utilization as an energy source

Energy Technology Data Exchange (ETDEWEB)

Boerner, G; Schoenefeldt, J; Mehring, I [OeHMI Forschung und Ingenieurtechnik GmbH, Magdeburg (Germany)

1995-12-01

Although vegetable oils have been used as an energy source for centuries, they were used almost exclusively in oil lamps. Their value as a foodstuff and the availability and low price of mineral oil had for a long time kept them from being seriously considered as a potential energy source. Now, owing to the increasing cost of fossil fuel, particularly oil, and increasing industrial energy consumption, as well as the negative impact of fossil fuel use on the environment, there is interest in a number of alternative energy sources, including vegetable oils. The discussion in this paper focuses on the use of untreated vegetable oils, particularly rapeseed oil. The energy potential of rapeseed oil is explored first. Then, conditions under which the use of oil crops as an energy source is feasible are briefly discussed; two concepts for decentralized oil-seed processing are described and, finally, future possibilities for use of vegetable oils as a fuel source are reviewed. (author) 5 refs, 4 figs, 4 tabs

Oil crops: requirements and possibilities for their utilization as an energy source

International Nuclear Information System (INIS)

Boerner, G.; Schoenefeldt, J.; Mehring, I.

1995-01-01

Although vegetable oils have been used as an energy source for centuries, they were used almost exclusively in oil lamps. Their value as a foodstuff and the availability and low price of mineral oil had for a long time kept them from being seriously considered as a potential energy source. Now, owing to the increasing cost of fossil fuel, particularly oil, and increasing industrial energy consumption, as well as the negative impact of fossil fuel use on the environment, there is interest in a number of alternative energy sources, including vegetable oils. The discussion in this paper focuses on the use of untreated vegetable oils, particularly rapeseed oil. The energy potential of rapeseed oil is explored first. Then, conditions under which the use of oil crops as an energy source is feasible are briefly discussed; two concepts for decentralized oil-seed processing are described and, finally, future possibilities for use of vegetable oils as a fuel source are reviewed. (author)

A theoretical analysis of price elasticity of energy demand in multistage energy conversion systems

International Nuclear Information System (INIS)

Lowe, R.

2003-01-01

The objective of this paper is an analytical exploration of the problem of price elasticity of energy demand in multi-stage energy conversion systems. The paper describes in some detail an analytical model of energy demand in such systems. Under a clearly stated set of assumptions, the model makes it possible to explore both the impacts of the number of sub-systems, and of varying sub-system elasticities on overall system elasticity. The analysis suggests that overall price elasticity of energy demand for such systems will tend asymptotically to unity as the number of sub-systems increases. (author)

Structural Break, Stock Prices of Clean Energy Firms and Carbon Market

Science.gov (United States)

Wang, Yubao; Cai, Junyu

2018-03-01

This paper uses EU ETS carbon future price and Germany/UK clean energy firms stock indices to study the relationship between carbon market and clean energy market. By structural break test, it is found that the ‘non-stationary’ variables judged by classical unit root test do own unit roots and need taking first difference. After analysis of VAR and Granger causality test, no causal relationships are found between the two markets. However, when Hsiao’s version of causality test is employed, carbon market is found to have power in explaining the movement of stock prices of clean energy firms, and stock prices of clean energy firms also affect the carbon market.

Price-structure of electricity and district-heating. A background study for energy conservation programme

International Nuclear Information System (INIS)

1994-01-01

The present report deals with the pricing and price-structure of electricity and district-heating with their effects on energy saving. It constitutes part of the groundwork for the new Government Energy Conservation Programme. The report describes principles for the pricing of electricity and district-heating in Finland, and gives some examples of tariffs in foreign countries, which are interesting from the point of view of energy saving. Different utilities apply quite similar pricing principles but there are big differences in price levels between the utilities. The difference in consumer prices can be almost 100 % in the case of electricity and over 150 % as concerns district-heating. The change in retail prices in the last ten years has not had a big general impact on the consumption of electricity or on energy saving. On the other hand, when the price increases of individual utilities are studied, the impact on energy saving at least in the short term can be seen. It seems that an increase of the fixed charges in relation to energy rates has been as a general trend after 1990. To promote energy saving the changing energy rates should be given special emphasis in determining electricity and district-heating tariffs. The opening of the electricity market means that the electricity suppliers face a new situation also when pricing their products. Customers and their expectations will play an increasingly role. (orig.)

The price of energy efficiency in the Spanish housing market

International Nuclear Information System (INIS)

Ayala, Amaia de; Galarraga, Ibon; Spadaro, Joseph V.

2016-01-01

The housing sector is a substantial consumer of energy, and therefore a focus for energy savings efforts. The Energy Performance of Buildings Directive (EPBD), introduced in 2002 and revised in 2010, is a key instrument to increase the energy performance of buildings across the European Union. Following the implementation of the EPBD into Spanish law, all properties offered for sale or rented out in Spain are required to have an Energy Performance Certificate (EPC). Given that the implementation of the EPC scheme for new, existing and advertised properties is still very low in Spain, unlike other European housing markets, the Spanish one lacks market data on energy efficiency (EE) labels and their impact on housing price. To overcome this gap, we determine the EE ratings of a sample of 1507 homes across Spain on the basis of information collected previously through household surveys. This allowed us to answer the question of whether or not, and to what extent, Spanish housing markets capitalise the value of EE. We apply the hedonic-price technique and observe that more energy efficient dwellings have a price-premium between 5.4% and 9.8% compared to those with the same characteristics but lower EE level. - Highlights: •The Spanish housing market lacks data on energy efficiency (EE) labels. •We determine the EE ratings of a sample of 1507 homes across Spain. •Homes labelled A, B and C account for less than 10% of the housing stock. •Energy efficient dwellings have a price-premium between 5.4% and 9.8%, ceteris paribus.

Relationships among energy price shocks, stock market, and the macroeconomy: evidence from China.

Science.gov (United States)

Cong, Rong-Gang; Shen, Shaochuan

2013-01-01

This paper investigates the interactive relationships among China energy price shocks, stock market, and the macroeconomy using multivariate vector autoregression. The results indicate that there is a long cointegration among them. A 1% rise in the energy price index can depress the stock market index by 0.54% and the industrial value-adding growth by 0.037%. Energy price shocks also cause inflation and have a 5-month lag effect on stock market, which may result in the stock market "underreacting." The energy price can explain stock market fluctuations better than the interest rate over a longer time period. Consequently, investors should pay greater attention to the long-term effect of energy on the stock market.

Price, technology, and ore reserves, ch. 2

International Nuclear Information System (INIS)

McAllister, A.L.

1976-01-01

Factors determining ore reserves in view of future uses are investigated: existing mining technologies, new techniques, price-technology relationship, effects of the use of different energy sources, exploration techniques, and price change are discussed. The effect of price and technology on reserves of specific commodities is dealth with. A section is also devoted to uranium

The turning black tide : energy prices and the Canadian dollar

Energy Technology Data Exchange (ETDEWEB)

Issa, R.; Lafrance, R.; Murray, J. [Bank of Canada, Ottawa, ON (Canada)

2008-08-15

This paper examined the relationship between energy prices and the Canadian-United States dollar real exchange rate. The researchers evaluated the standard Amano-van Norden (AvN) equation formulated to demonstrate that higher real energy prices lead to a depreciation of the Canadian dollar. Major developments in the Canadian energy market were discussed, as well as policy initiatives designed to address Canada's trade balance by increasing energy exports. The study examined the AvN equation using Monte Carlo experiments to determine the parameter stability of the equation. Results indicated that the co-integrating relationship in the standard AvN equation were no longer supported. Structural break tests were used to demonstrate that major changes in Canada's energy policies and cross-border trade and investment strategies have led to an increase in the Canadian dollar's value when energy prices are high. The study presented a new equation designed to account for Canadian dollar's appreciation since 2003. It was concluded that net energy exports in the 1990s outweighed the negatives associated with Canada's energy-intensive production processes. 39 refs., 6 tabs., 10 figs.

Water: The Only Factor Influencing the Price of Energy in the Spot Market?

Directory of Open Access Journals (Sweden)

Vinicius Mothé Maia

2016-04-01

Full Text Available The Brazilian electric energy generation system is based on its hydroelectric power plants, making the country dependent on proper rainfall and, thus, raising the possibility of energy stress situations, such as the energy-rationing scenario observed in the beginning of the century and the latest water crisis (2014. Moments of water scarcity are followed by an increase in energy prices, which affects the economy as whole. Therefore, it is relevant to understand which factors in the Brazilian Electric System affect the energy price and the individual importance of each. This paper aimed to analyze which the key variables influencing the energy price in the spot market are by using official data from the National Electric System Operator. The used data was from the period July/2001 to July/2014, which was employed in a multiple regression methodology along with time series. The results suggest an inverse relationship between the natural flow of rivers (directly related to rainfall and the energy price. Moreover, they also point to an inverse relationship between the potential energy stored in reservoirs as water and the energy price.

Mass and energy-capital conservation equations to study the price evolution of non-renewable energy resources

International Nuclear Information System (INIS)

Gori, F.

2006-01-01

Mass conservation equation of non-renewable resources is employed to study the resources remaining in the reservoir according to the extraction policy. The energy conservation equation is transformed into an energy-capital conservation equation. The Hotelling rule is shown to be a special case of the general energy-capital conservation equation when the mass flow rate of extracted resources is equal to unity. Mass and energy-capital conservation equations are then coupled and solved together. It is investigated the price evolution of extracted resources. The conclusion of the Hotelling rule for non-extracted resources, i.e. an exponential increase of the price of non-renewable resources at the rate of current interest, is then generalized. A new parameter, called 'Price Increase Factor', PIF, is introduced as the difference between the current interest rate of capital and the mass flow rate of extraction of non-renewable resources. The price of extracted resources can increase exponentially only if PIF is greater than zero or if the mass flow rate of extraction is lower than the current interest rate of capital. The price is constant if PIF is zero or if the mass flow rate of extraction is equal to the current interest rate. The price is decreasing with time if PIF is smaller than zero or if the mass flow rate of extraction is higher than the current interest rate. (author)

The response of the Beijing carbon emissions allowance price (BJC) to macroeconomic and energy price indices

International Nuclear Information System (INIS)

Zeng, Shihong; Nan, Xin; Liu, Chao; Chen, Jiuying

2017-01-01

In 2013, China opened pilot carbon emission trading markets in seven provinces, where carbon emission allowances have now been traded for more than two years. In this paper, we employ a structural VAR model and the price of the Beijing carbon emission allowance to study the dynamic relationships among the price of the carbon emission allowance, economic development and the price of energy. This paper's data cover the period from April 2, 2014 to November 6, 2015. This paper provides information that will be helpful to both investors and governmental policy makers. The results show that (1) an increase of one standard deviation in the coal price leads to an initial increase of approximately 0.1% in the Beijing carbon price. After 2 days, there is a decrease of less than 0.1%, and the price gradually increases by approximately 0.1% after 30 days; (2) the price of the Beijing carbon emission allowance is mainly affected by its own historical price; (3) the Beijing carbon emission allowance price, crude oil price, natural gas price and economic development have positive – albeit non-significant – correlations. - Highlights: • This paper examines the response of the Beijing carbon emission allowance price. • A rise in coal prices will have different effects in different lag stages. • There are positive correlations between the BJC and economic development.

Responding to high energy prices: energy management services

International Nuclear Information System (INIS)

Raynolds, M.

2001-01-01

Rapid growth in the number and sophistication of energy management companies has been observed in the wake of rising energy prices. These companies offer energy-efficiency consulting services to utilities, government and industry with the promise of improved cost efficiency, marketplace competitiveness and environmental commitments. The environmental benefits result from the reduction in emissions and pollutants associated with power production and natural gas used for space heating. In general, the stock in trade of these energy management companies is the energy audit involving evaluation of existing equipment in buildings and facilities and the resulting recommendations to install energy-efficient equipment such as lighting retrofits, boiler replacement, chiller replacement, variable speed drives, high-efficiency motors, improved insulation and weather proofing, water heaters and piping. The North American market for energy management services was estimated in 1997 at $208 billion (rising to $350 billion by 2004). Current market penetration is less than two per cent

Regional Differences in the Price-Elasticity of Demand for Energy

Energy Technology Data Exchange (ETDEWEB)

Bernstein, M. A.; Griffin, J.

2006-02-01

At the request of the National Renewable Energy Laboratory (NREL), the RAND Corporation examined the relationship between energy demand and energy prices with the focus on whether the relationships between demand and price differ if these are examined at different levels of data resolution. In this case, RAND compares national, regional, state, and electric utility levels of data resolution. This study is intended as a first step in helping NREL understand the impact that spatial disaggregation of data can have on estimating the impacts of their programs. This report should be useful to analysts in NREL and other national laboratories, as well as to policy nationals at the national level. It may help them understand the complex relationships between demand and price and how these might vary across different locations in the United States.

Presenting a multi-objective generation scheduling model for pricing demand response rate in micro-grid energy management

International Nuclear Information System (INIS)

Aghajani, G.R.; Shayanfar, H.A.; Shayeghi, H.

2015-01-01

Highlights: • Using DRPs to cover the uncertainties resulted from power generation by WT and PV. • Proposing the use of price-offer packages and amount of DR for implement DRPs. • Considering a multi-objective scheduling model and use of MOPSO algorithm. - Abstract: In this paper, a multi-objective energy management system is proposed in order to optimize micro-grid (MG) performance in a short-term in the presence of Renewable Energy Sources (RESs) for wind and solar energy generation with a randomized natural behavior. Considering the existence of different types of customers including residential, commercial, and industrial consumers can participate in demand response programs. As with declare their interruptible/curtailable demand rate or select from among different proposed prices so as to assist the central micro-grid control in terms of optimizing micro-grid operation and covering energy generation uncertainty from the renewable sources. In this paper, to implement Demand Response (DR) schedules, incentive-based payment in the form of offered packages of price and DR quantity collected by Demand Response Providers (DRPs) is used. In the typical micro-grid, different technologies including Wind Turbine (WT), PhotoVoltaic (PV) cell, Micro-Turbine (MT), Full Cell (FC), battery hybrid power source and responsive loads are used. The simulation results are considered in six different cases in order to optimize operation cost and emission with/without DR. Considering the complexity and non-linearity of the proposed problem, Multi-Objective Particle Swarm Optimization (MOPSO) is utilized. Also, fuzzy-based mechanism and non-linear sorting system are applied to determine the best compromise considering the set of solutions from Pareto-front space. The numerical results represented the effect of the proposed Demand Side Management (DSM) scheduling model on reducing the effect of uncertainty obtained from generation power and predicted by WT and PV in a MG.

Energy price spread as a driving force for combined generation investments: A view on Europe

International Nuclear Information System (INIS)

Kavvadias, K.C.

2016-01-01

Combined generation of heat, cooling and power has a large potential to increase its share in distributed generation of energy. Such investments are driven by energy savings which result to operational profits. These profits are very sensitive to the prices of the competitive energy products: electricity and gas. In this work a theoretical indicator is developed between energy prices, the technical characteristics of cogeneration and conventional generation equipment and the investment viability. Through this indicator, the operational profitability of cogeneration equipment is mapped and discussed. Empirical rules are extracted which can give a clear view of the sensitivity of energy prices on energy efficiency investments. The European cogeneration status quo is analyzed in terms of energy prices and market share. The developed indicator is also used, to analyze market related barriers and highlight the importance of energy pricing policy as a tool to minimize the risk exposure of energy efficiency investments. - Highlights: • Energy price spread of competitive fuels affects combined generation profitability. • Its uncertainty is the most important barrier for new investments. • The minimum energy price spread had been generalized and mathematically justified. • Can be used as a tax-based mechanism to hedge the risk of fuel price fluctuations. • For a typical installation, power has to be at least 2 times more expensive than gas.

Principles, effects and problems of differential power pricing policy for energy intensive industries in China

International Nuclear Information System (INIS)

Lin, Boqiang; Liu, Jianghua

2011-01-01

The Chinese government canceled the preferential power pricing policies for energy intensive industries and imposed a reverse differential pricing policy in order to promote energy efficiency and the adjustment and upgrading of the industrial structure. This article analyzes the principles of China's differential power pricing policy, the externalities of energy and the modified Ramsey pricing rule, and also points out the policy implications of China's differential power pricing policy. In our samples, we investigate eight power intensive products in the Henan province with respect to their power consumption per unit (power intensity), electricity cost, total cost, the electricity tariff and profit, in order to test the effects of the differential power pricing policy. The results show that the primary effect of the differential power pricing policy is that enterprises decrease their total costs and improve their productive efficiencies in advance, in anticipating a higher electricity tariff. -- Research highlights: → The article suggests a modified Ramsey pricing model where demand elasticity is replaced by elasticity of energy consumption and polluting elasticity to internalize the negative externality of high energy intensive industry. → The article assesses the effects of differential pricing policy through on-site survey of high energy intensive industries in Henan province and analyzes the reasons behind those effects. → The article presents the lessons and policy implications of implementing differential pricing policy aimed at energy conservation and emission reduction.

Energy prices in the presence of plant indivisibilities

International Nuclear Information System (INIS)

Fischer, Ronald; Serra, Pablo

2003-01-01

In several countries (Chile, Bolivia, Argentina and Peru, among others), power plants are dispatched according to merit order, i.e. based on the marginal operating costs of the plants. In this scheme, the operating plant with the highest marginal cost sets the spot price at which firms trade the energy required to fulfill their contracts. The underlying peak-load pricing model assumes that plants can operate at any level up to capacity, whereas real power plants have minimum operating levels. This implies that a low cost plant might have to reduce its supply in order to accommodate the minimum operating level of a more expensive power plant. This paper derives the welfare maximizing price rules in this case and shows that the standard peak-load pricing rules no longer apply

Importance of biomass energy sources for Turkey

International Nuclear Information System (INIS)

Demirbas, Ayhan

2008-01-01

Various agricultural residues such as grain dust, crop residues and fruit tree residues are available in Turkey as the sources of biomass energy. Among the biomass energy sources, fuelwood seems to be one of the most interesting because its share of the total energy production of Turkey is high at 21% and the techniques for converting it to useful energy are not necessarily sophisticated. Selection of a particular biomass for energy requirements is influenced by its availability, source and transportation cost, competing uses and prevalent fossil fuel prices. Utilization of biomass is a very attractive energy resource, particularly for developing countries since biomass uses local feedstocks and labor. Like many developing countries, Turkey relies on biomass to provide much of its energy requirement. More efficient use of biomass in producing energy, both electrical and thermal, may allow Turkey to reduce petroleum imports, thus affecting its balance of payments dramatically. Turkey has always been one of the major agricultural countries in the world. The importance of agriculture is increasing due to biomass energy being one of the major resources in Turkey. Biomass waste materials can be used in Turkey to provide centralized, medium- and large-scale production of process heat for electricity production. Turkey's first biomass power project is under development in Adana province, at an installed capacity of 45 MW. Two others, at a total capacity of 30 MW, are at the feasibility study stage in Mersin and Tarsus provinces. Electricity production from biomass has been found to be a promising method in the nearest future in Turkey

Volatility in energy prices

International Nuclear Information System (INIS)

Duffie, D.

1999-01-01

This chapter with 58 references reviews the modelling and empirical behaviour of volatility in energy prices. Constant volatility and stochastic volatility are discussed. Markovian models of stochastic volatility are described and the different classes of Markovian stochastic volatility model are examined including auto-regressive volatility, option implied and forecasted volatility, Garch volatility, Egarch volatility, multivariate Garch volatility, and stochastic volatility and dynamic hedging policies. Other volatility models and option hedging are considered. The performance of several stochastic volatility models as applied to heating oil, light oil, natural gas, electricity and light crude oil are compared

Oil prices, nuclear energy consumption, and economic growth: New evidence using a heterogeneous panel analysis

International Nuclear Information System (INIS)

Lee, Chien-Chiang; Chiu, Yi-Bin

2011-01-01

This paper applies panel data analysis to examine the short-run dynamics and long-run equilibrium relationships among nuclear energy consumption, oil prices, oil consumption, and economic growth for developed countries covering the period 1971-2006. The panel cointegration results show that in the long run, oil prices have a positive impact on nuclear energy consumption, suggesting the existence of the substitution relationship between nuclear energy and oil. The long-run elasticity of nuclear energy with respect to real income is approximately 0.89, and real income has a greater impact on nuclear energy than do oil prices in the long run. Furthermore, the panel causality results find evidence of unidirectional causality running from oil prices and economic growth to nuclear energy consumption in the long run, while there is no causality between nuclear energy consumption and economic growth in the short run. - Research highlights: → We examine the relationship among nuclear energy consumption, oil prices, oil consumption, and economic growth for developed countries. → The existence of the substitution relationship between nuclear energy and oil. → Real income has a greater impact on nuclear energy than do oil prices in the long run. → An unidirectional causality running from oil prices and economic growth to nuclear energy consumption in the long run.

A Study on strengthening demand management of energy price

Energy Technology Data Exchange (ETDEWEB)

Seo, Jung Hwan [Korea Energy Economics Institute, Euiwang (Korea)

1999-02-01

Until 1980s, energy sector had been operated as a monopoly of public enterprises in most countries. Price regulation of government had an influence on energy supply and demand by not fully giving information on market situation (supply and demand). Recently, as energy related technology and information technology have developed, the developed countries including UK and some developing countries could raise efficiency of industry through competitive market by recognizing the limit of government regulation and opening up many sectors of energy industry to the private sector. Korea is also implementing a measure for introducing competition through the participation of private sector into electricity and natural gas industries step by step. If the private sector is participated and competition is introduced, energy price cannot be a policy instrument setting up by the government, so demand management through price regulation is meaningless. Under such circumstances, a policy function should be converted to the direction of promoting competition and increasing market efficiency. In this study, it examines how the government regulation and industry has been changed through the transition of natural gas and electricity industries in UK, USA, and France and then it tries to derive suggestions to Korea. (author). 49 refs., 58 figs., 32 tabs.

Impacts of carbon pricing, brown coal availability and gas cost on Czech energy system up to 2050

International Nuclear Information System (INIS)

Rečka, L.; Ščasný, M.

2016-01-01

A dynamic partial equilibrium model, TIMES (​The Integrated MARKAL-EFOM System), is built to optimize the energy system in a post-transition European country, the Czech Republic. The impacts of overall nine scenarios on installed capacity, capital and fuel costs, air quality pollutant emission, emission of CO_2 and environmental and health damage are quantified for a period up to 2050. These scenarios are built around three different price sets of the EUA (EU allowance) to emit greenhouse gasses alongside a policy that retains the ban on brown coal mining in two Czech mines, a policy that will allow the re-opening of mining areas under this ban (i.e. within the territorial ecological limits), and a low natural gas price assumption. We found that the use of up until now dominant brown coal will be significantly reduced in each scenario, although reopening the coal mines will result in its smaller decline. With low EUA price, hard coal will become the dominant fuel in electricity generation, while nuclear will overtake this position with a 51% or even 65% share assuming the central price of EUA, or high EUA price, respectively. The low price of natural gas will result in an increasing gas share from an almost zero share recently up to about 42%. This stimulus does not however appear at all with low EUA price. Neither of these scenarios will achieve the renewable energy sources 2030 targets and only a high EUA price will lead to almost full de-carbonization of the Czech power system, with fossil fuels representing only 16% of the energy mix. The low EUA price will result in an increase in CO_2 emissions, whereas the high EUA price will reduce CO_2 emission by at least 81% compared to the 2015 reference level. Those scenarios that will result in CO_2 emission reduction will also generate ancillary benefits due to reduction in air quality emissions, on average over the entire period, at least at 38€ per t of avoided CO_2, whereas scenarios that will lead to CO_2

Review of uranium market price

International Nuclear Information System (INIS)

Maragatham Kumar; Nik Arlina Nik Ali; Koh You Beng

2007-01-01

Uranium is used as an abundant source of concentrated energy and is the principal fuel for the generation of electricity by nuclear reactors. In nuclear reactors, the uranium fuel is assembled in such a way that a controlled fission chain reaction can be achieved. Since uranium is the main source of nuclear energy, demand prospects for uranium has increased dramatically with the renewed global interest in nuclear power generation in recent years. Although the global uranium market is relatively small worldwide, compared to other mineral and energy sources, it is a very important market as nuclear power generation accounts for about 18% of global electricity supply. After reaching historic lows in 1990s, uranium prices have risen substantially in recent years. The outlook for nuclear power has changed since 2000, with concerns over global warming, proven excellent safety record, competitive costs, progress on nuclear waste disposal issues and also continuing new nuclear plant construction around the world. These and various other influencing factors have resulted in the uranium market evolving from one that was driven by excess secondary supplies to that by primary production. This paper reviews the global market prices for the years 1987 until 2006 and the factors, which influence the changes in global uranium market prices. (Author)

Rise of energy prices: why and up to how much?

International Nuclear Information System (INIS)

Maillard, D.; Gonnot, F.M.

2004-01-01

This article is a presentation given by D. Maillard, general director of the general direction of energy and raw materials (DGEMP) of the French ministry of economy, finances and industry (Minefi), at the occasion of a colloquium held in Paris on December 8, 2004, and organised by the energy and development club. In his talk, D. Maillard explains the reasons of the rise of energy prices in 2004: international factors (volatility of the oil and gas markets) and European factors (liberalization and re-structuration of the electricity market, spot prices, increase of demand). (J.S.)

State energy price projections for the residential sector, 1992--1993

International Nuclear Information System (INIS)

1992-01-01

The purpose of this report, State Energy Price Projections for the Residential Sector, 1992--1993, is to provide projections of State-level residential prices for 1992 and 1993 for the following fuels: electricity, natural gas, heating oil, liquefied petroleum gas (LPG), kerosene, and coal. Prices for 1991 are also included for comparison purposes. This report also explains the methodology used to produce these estimates and the limitations

Estimating the Value of Price Risk Reduction in Energy Efficiency Investments in Buildings

Directory of Open Access Journals (Sweden)

Pekka Tuominen

2017-10-01

Full Text Available This paper presents a method for calculating the value of price risk reduction to a consumer that can be achieved with investments in energy efficiency. The value of price risk reduction is discussed to some length in general terms in the literature reviewed but, so far, no methodology for calculating the value has been presented. Here we suggest such a method. The problem of valuating price risk reduction is approached using a variation of the Black–Scholes model by considering a hypothetical financial instrument that a consumer would purchase to insure herself against unexpected price hikes. This hypothetical instrument is then compared with an actual energy efficiency investment that reaches the same level of price risk reduction. To demonstrate the usability of the method, case examples are calculated for typical single-family houses in Finland. The results show that the price risk entailed in household energy consumption can be reduced by a meaningful amount with energy efficiency investments, and that the monetary value of this reduction can be calculated. It is argued that this often-overlooked benefit of energy efficiency investments merits more consideration in future studies.

Unfair and excessive prices in the energy sector

International Nuclear Information System (INIS)

Van der Woude, M.

2008-01-01

The concept of competition refers to a process where firms dispute the favour of their customers by proposing better products at the lowest possible price. This consumer welfare creating process is to a large extent Darwinian in nature: those who cannot compete must die. The law of supply and demand is ruthless and so is competition law. Principles of fairness and justice are extraneous to competition law: the lion eats the deer. Still, EC competition law is not amoral, as illustrated by the very first example of abusive conduct given by Article 82 EC: 'directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions' can constitute an abuse. The concept of fairness as a constituent element of EC competition law may disturb those who analyze the competitive process through a scientific lens. Fairness does not relate to economic effects and cannot be measured or quantified. It is a concept that appeals to ethics and norms. The dichotomy between competition as an amoral welfare creating process, that can be the subject of economic research, and the normative concept of fairness does not necessarily lead to a contradiction. Fairness becomes relevant where the competitive process has ceased to play its welfare creating role: i.e. where monopolies prevail over perfect competition. When confronted to a monopoly, abstention is the customer's only choice and for some goods, such as food, clothing and housing, abstention is not considered as a realistic choice. In scenarios where the monopolist faces an inelastic demand curve, fairness is probably the customer's only safety buoy. The energy sector is one of the sectors where these situations occur. In our modern societies, customers expect the light to go on, when they turn the switch, and their houses to be heated, when activating their boilers. Candles and jumpers not offering realistic alternatives, demand is close to inelastic, at least on the short term. Moreover, the energy sector

The Hurst exponent in energy futures prices

Science.gov (United States)

Serletis, Apostolos; Rosenberg, Aryeh Adam

2007-07-01

This paper extends the work in Elder and Serletis [Long memory in energy futures prices, Rev. Financial Econ., forthcoming, 2007] and Serletis et al. [Detrended fluctuation analysis of the US stock market, Int. J. Bifurcation Chaos, forthcoming, 2007] by re-examining the empirical evidence for random walk type behavior in energy futures prices. In doing so, it uses daily data on energy futures traded on the New York Mercantile Exchange, over the period from July 2, 1990 to November 1, 2006, and a statistical physics approach-the ‘detrending moving average’ technique-providing a reliable framework for testing the information efficiency in financial markets as shown by Alessio et al. [Second-order moving average and scaling of stochastic time series, Eur. Phys. J. B 27 (2002) 197-200] and Carbone et al. [Time-dependent hurst exponent in financial time series. Physica A 344 (2004) 267-271; Analysis of clusters formed by the moving average of a long-range correlated time series. Phys. Rev. E 69 (2004) 026105]. The results show that energy futures returns display long memory and that the particular form of long memory is anti-persistence.

A theoretical analysis of price elasticity of energy demand in multi-stage energy conversion systems

International Nuclear Information System (INIS)

Lowe, Robert

2003-01-01

The objective of this paper is an analytical exploration of the problem of price elasticity of energy demand in multi-stage energy conversion systems. The paper describes in some detail an analytical model of energy demand in such systems. Under a clearly stated set of assumptions, the model makes it possible to explore both the impacts of the number of sub-systems, and of varying sub-system elasticities on overall system elasticity. The analysis suggests that overall price elasticity of energy demand for such systems will tend asymptotically to unity as the number of sub-systems increases

Essays in the Application of Linear and Non-linear Bayesian VAR Models to the Macroeconomic Impacts of Energy Price Shocks

Science.gov (United States)

Nguyen, Bao H.

effects of world energy price shocks on China's macroeconomy. We propose a new index of primary commodity energy prices which accurately reflects both the structure of China's energy expenditure shares, as well as intertemporal fluctuations in international energy prices. The index is then in employed a sufficiently rich set of time varying BVARs, identified by a new set of agnostic sign restrictions. Uniformly sized positive energy price shocks are shown to consistently generate economic stagflation over the past two decades. Chapter 5 compares the macroeconomic effects of global oil and iron ore price shocks on the Australian economy. The main results suggest that, over the period 1990Q1 to 2014Q4, the oil shock has a relative larger impact than that of the iron ore shock on output and inflation while the iron ore shock is the dominant source of interest and exchange rate movements. The effects crucially depend on the underlying sources of oil or iron ore price shifts.

Managing Interactions Between Carbon Pricing and Existing Energy Policies. Guidance for Policymakers

Energy Technology Data Exchange (ETDEWEB)

Hood, Christina

2013-07-01

Carbon pricing can be a key policy tool to help countries move their energy sectors onto a cleaner development path. One important issue to consider when introducing carbon pricing is how it will integrate with other energy policies that also reduce greenhouse gas emissions, including policies to support low-carbon technologies (such as renewable energy) and energy efficiency programmes. Poor policy integration can undermine energy security and affordability, and affect the performance of renewable energy policies and energy markets. Climate objectives can also be undermined, through low and uncertain carbon prices and the risk of stop-start policy. Understanding how to manage policy interactions can improve the climate and energy policy package, reducing the trade-offs and advancing the synergies between energy and climate objectives. This will benefit the country in terms of a more effective and lower-cost low-carbon development path, as well as supporting a more energy-secure future.

Prices versus quantities: choosing policies for promoting the development of renewable energy

International Nuclear Information System (INIS)

Menanteau, Philippe; Finon, Dominique; Lamy, Marie-Laure

2003-01-01

Now that the risks of climate change have been confirmed and the European States have declared their willingness to pursue ambitious objectives for producing electricity from renewable energy sources, it becomes crucial to take a look at the relative efficiency of the different incentive schemes used. Such schemes may focus on quantities-defining national targets and setting up bidding systems, or quota systems providing for green certificate trading, or they may focus on prices-feed-in tariffs. Clearly, these instruments are much the same as those used in environmental policies, with similar discussion involved in their choice. Whatever the system chosen, the role of the public authorities is quite specific: to stimulate technical progress and speed up the technological learning processes so that ultimately renewable energy technologies will be able to compete with conventional technologies, once the environmental costs have been internalised. A comparison of instruments must thus take into account the characteristics of the innovation process and adoption conditions--uncertainties regarding cost curves, learning effects--which means also looking at dynamic efficiency criteria. The authors examine the efficiency of the different incentive schemes for the development of renewable energy sources, both from a theoretical point of view by comparing price-based approaches with quantity-based approaches, and from a practical point of view by looking at concrete examples of how these different instruments have been implemented. The paper concludes that a system of feed-in tariffs is more efficient than a bidding system, but highlights the theoretical interest of green certificate trading which must be confirmed through practice, given the influence of market structures and rules on the performance of this type of approach

The Clean-Development Mechanism, stochastic permit prices and energy investments

International Nuclear Information System (INIS)

Hieronymi, Philipp; Schüller, David

2015-01-01

We analyze the impact on energy investments stemming from different emission permit classes, by considering permits that are allocated inside the European Emission Trading Scheme and secondary Certified Emission Reduction (sCER) permits originating from the Clean Development Mechanism. One price taking firm which is subject to emission regulation has the choice to invest in gas or wind power plant. The firm faces uncertainty regarding stochastically evolving permit prices, while it receives a premium on the electricity price for wind energy. As a first step, we determine the value of the option to invest into a gas power plant over time. Then, we calculate the investment probability of a gas power investment in a range of policy scenarios. We find that allowing the usage of sCER permits in the present policy framework has a positive impact on gas power investment. Decoupling the price processes has a similar effect. If the quota of sCER permits is doubled, the decrease in the investment probability for wind power is large. We carry out sensitivity tests for different parameter values, and find that investment behavior changes significantly with differing interest rates, the wind energy premium and volatility. - Highlights: • We model the impact of two CO 2 permit classes on energy investments. • We present a real-options framework accounting for uncertainty. • Clean Development Mechanism permits have a negative influence on investment into renewable energy. • Interest rate and volatility values have a strong impact on the results

Inventory of energy sources: none can be overlooked

International Nuclear Information System (INIS)

Radin, A.

1976-01-01

Mr. Radin feels that energy in the form of electricity is the key to the broad concern about availability and price of energy. He summarizes four areas of concern confronting the U.S. in the power field--the amount of electricity needed, the sources, its cost, and who will pay for it. He believes that the basic aim ''should be to supply that amount of electricity needed to maintain and enhance the standard of living for all citizens,'' and further observes that, to do this, ''price increases are inequitable.'' Mr. Radin believes that, with the abundance of coal in the U.S., a switch back to coal must be made. The importance of the breeder in the future is reviewed. It is pointed out that if 10 percent of the 70 million homes in the U.S. were converted to solar energy for heating and cooling by 1990, only slightly more than one percent of our national energy demand would be met. MHD, fuel cells, or fusion will employ fuels in a more efficient manner, but scientific, engineering, and economic barriers must be hurdled before these devices can be effectively utilized. The safety of nuclear power is briefly discussed, then Great Britain's experience with nuclear power is reviewed. It is observed that whatever decisions are made concerning future production of energy, the costs of these choices will be paid by consumers

Energy efficiency: a source of savings; a priority objective

International Nuclear Information System (INIS)

Bethencourt, Anne de; Chorin, Jacky

2013-01-01

Energy efficiency is defined as consumption of less energy whilst delivering the same service. Significant progress has been made through the impact of technology, price increases and awareness of waste. Too often viewed as a constraint, energy efficiency nonetheless constitutes the leading potential source of domestic energy for the 2020 goal. Energy efficiency is or will be (depending on the will of the stakeholders, public authorities and society as a whole) a key market for the future and a pathway to creative innovation. Everything is pointing in that direction: the obligation to reduce greenhouse gas emissions fourfold, the new European Directive on Energy Efficiency to be incorporated, the expected increase in energy prices, the presence in France of industry leaders and of a small-scale but important industry in this sector. The goals in energy efficiency entail: - at Community level, that the objective of 20% energy savings for the 2020 goal becomes binding; - at national level, that public policies for energy efficiency are part of a long-term vision, based on the achievements of the Grenelle Environment Forum and avoid sending out any wrong signals which might adversely affect progress. The ESEC proposals are built around the following four themes: - (residential and service sector) buildings: Make energy efficiency into a real sector and a new opportunity 'work together', Optimise tools and regulations, Be innovative in terms of financial support; - fuel poverty; - industry and agriculture; - the particular situation of the overseas departments

Structure of production costs of different energy sources (fossile fuels and nuclear energy) (group 11)

International Nuclear Information System (INIS)

Girard, Ph.

2002-01-01

This article is the work of a group of students from the ''Ecole Nationale d'Administration'', they had to study the structure of the costs of the different energy sources. This analysis shows some common features between the energy sources. The cost is very dependent on the partial costs of technological constraints due to exploration, production, transport and distribution. For primary energies the market appears to be not very competitive, the price depends strongly on the market power of the operator and benefits are generally important. In France, taxes play a role to assure competitiveness of gas and coal against oil. Uranium fuel presents the lowest production and transformation costs at the same energy content. Transport costs are important for natural gas which implies a strong mutual dependence between gas producers and consumers. The irreplaceable use of oil in transport assures regular high revenues for oil companies. (A.C.)

Can renewable energy sources be financed through competitive power markets in the long run?; Koennen sich erneuerbare Energien langfristig auf wettbewerblich organisierten Strommaerkten finanzieren?

Energy Technology Data Exchange (ETDEWEB)

Kopp, Oliver; Essler-Frey, Anke; Engelhorn, Thorsten [MVV Energie AG, Mannheim (Germany)

2012-12-15

In this paper we address the issue of whether renewable energy sources can be integrated into power markets if the use of renewable energies is extended at the desired speed. Market integration means that renewable energy sources have to cover their full costs from revenues on competitive markets. In the first part of this paper, we evaluate the long-term revenues of intermittent renewable energy sources using a high resolution power market model. Considering the renewable targets of the German lead study of 2010, we show that due to the merit order effect, intermittent renewable energy sources, such as wind power and photovoltaic, cannot be financed through power markets alone, even if their full costs fall below those of conventional power plants. This is also true for scenarios with high CO{sub 2}-prices and increasing spot market prices. In the second part of this paper, we discuss whether in the long run additional instruments such as green certificates or capacity markets would allow for a more competitive financing of renewable energy sources. Center stage in the discussion is the question under which circumstances these instruments increase competitive pricing and decentralised market decisions. (orig.)

Research document no. 25. Prices versus quantities: environmental policies for promoting the development of renewable energy

International Nuclear Information System (INIS)

Menanteau, Ph.; Finon, D.; Lamy, M.L.

2001-05-01

Now that the risks of climate change have been confirmed and the European States have declared their willingness to pursue ambitious objectives for producing electricity from renewable energy sources, it becomes crucial to take a look at the relative efficiency of the different incentive schemes used. Such schemes may focus on quantities, or on prices. Whatever the system chosen, the role of the public authorities is quite specific: to stimulate technical progress and speed up the technological learning processes so that ultimately renewable energy technologies will be able to compete with conventional technologies, once the environmental costs have been internalized. The authors examine the efficiency of the different incentive schemes for the development of renewable energy sources, both from a theoretical point of view by comparing price-based approaches with quantity-based approaches, and from a practical point of view by looking at concrete examples of how these different instruments have been implemented. The paper concludes that a system of fixed feed-in tariffs is more efficient than a bidding system, but highlights the theoretical interest of green certificate trading which must be confirmed through practice, given the influence of market structures and rules on the performance of this type of approach. (A.L.B.)

Energy Aware Pricing in a Three-Tiered Cloud Service Market

Directory of Open Access Journals (Sweden)

Debdeep Paul

2016-09-01

Full Text Available We consider a three-tiered cloud service market and propose an energy efficient pricing strategy in this market. Here, the end customers are served by the Software-as-a-Service (SaaS providers, who implement customized services for their customers. To host these services, these SaaS providers, in turn, lease the infrastructure related resources from the Infrastructure-as-a-Service (IaaS or Platform-as-a-Service (PaaS providers. In this paper, we propose and evaluate a mechanism for pricing between SaaS providers and Iaas/PaaS providers and between SaaS providers and the end customers. The pricing scheme is designed in a way such that the integration of renewable energy is promoted, which is a very crucial aspect of energy efficiency. Thereafter, we propose a technique to strategically provide an improved Quality of Service (QoS by deploying more resources than what is computed by the optimization procedure. This technique is based on the square root staffing law in queueing theory. We carry out numerical evaluations with real data traces on electricity price, renewable energy generation, workload, etc., in order to emulate the real dynamics of the cloud service market. We demonstrate that, under practical assumptions, the proposed technique can generate more profit for the service providers operating in the cloud service market.

Some Simple Arguments about Cost Externalization and its Relevance to the Price of Fusion Energy

International Nuclear Information System (INIS)

Budny, R.; Winfree, R.

1999-01-01

The primary goal of fusion energy research is to develop a source of energy that is less harmful to the environment than are the present sources. A concern often expressed by critics of fusion research is that fusion energy will never be economically competitive with fossil fuels, which in 1997 provided 75% of the world's energy. And in fact, studies of projected fusion electricity generation generally project fusion costs to be higher than those of conventional methods. Yet it is widely agreed that the environmental costs of fossil fuel use are high. Because these costs aren't included in the market price, and furthermore because many governments subsidize fossil fuel production, fossil fuels seem less expensive than they really are. Here we review some simple arguments about cost externalization which provide a useful background for discussion of energy prices. The collectively self-destructive behavior that is the root of many environmental problems, including fossil fuel use, was termed ''the tragedy of the commons'' by the biologist G. Hardin. Hardin's metaphor is that of a grazing commons that is open to all. Each herdsman, in deciding whether to add a cow to his herd, compares the benefit of doing so, which accrues to him alone, to the cost, which is shared by all the herdsmen using the commons, and therefore adds his cow. In this way individually rational behavior leads to the collective destruction of the shared resource. As Hardin pointed out, pollution is one kind of tragedy of the commons. CO 2 emissions and global warming are in this sense classic tragedies

Impact of International Oil Price on Energy Conservation and Emission Reduction in China

Directory of Open Access Journals (Sweden)

Jian Chai

2016-05-01

Full Text Available In the context of “new normal” economy and frequent “haze”, the strategy of energy conservation and emission reduction aiming to lower costs and reduce pollution is currently still a major strategic direction in China and the world, and will remain so for some time in the future. This paper uses the annual data of West Texas Intermediate (WTI crude oil price in 1987–2014 as samples. We firstly present the direction and mechanism of the influence of oil price change on total consumption of every kind of energy by path analysis, and then consider establishing a Structural Vector Autoregression model of energy conservation and emission reduction in three statuses. Research shows that if the international oil price increases by 1%, the energy consumption per GDP and carbon dioxide emission increase by 0.092% and 0.053% respectively in the corresponding period. In the status of high energy consumption and high emission, if the international oil price increases by 1%, the energy consumption per GDP and carbon dioxide emission increase by 0.043% and 0.065% respectively in the corresponding period. In the status of low energy consumption and low emission, if the international oil price increases by 1%, the energy consumption per GDP per unit increases by 0.067% and carbon dioxide emission decreases by 0.085% in the corresponding period.

Unfair and excessive prices in the energy sector

Energy Technology Data Exchange (ETDEWEB)

Van der Woude, M. [Erasmus University, Rotterdam (Netherlands)

2008-05-15

The concept of competition refers to a process where firms dispute the favour of their customers by proposing better products at the lowest possible price. This consumer welfare creating process is to a large extent Darwinian in nature: those who cannot compete must die. The law of supply and demand is ruthless and so is competition law. Principles of fairness and justice are extraneous to competition law: the lion eats the deer. Still, EC competition law is not amoral, as illustrated by the very first example of abusive conduct given by Article 82 EC: 'directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions' can constitute an abuse. The concept of fairness as a constituent element of EC competition law may disturb those who analyze the competitive process through a scientific lens. Fairness does not relate to economic effects and cannot be measured or quantified. It is a concept that appeals to ethics and norms. The dichotomy between competition as an amoral welfare creating process, that can be the subject of economic research, and the normative concept of fairness does not necessarily lead to a contradiction. Fairness becomes relevant where the competitive process has ceased to play its welfare creating role: i.e. where monopolies prevail over perfect competition. When confronted to a monopoly, abstention is the customer's only choice and for some goods, such as food, clothing and housing, abstention is not considered as a realistic choice. In scenarios where the monopolist faces an inelastic demand curve, fairness is probably the customer's only safety buoy. The energy sector is one of the sectors where these situations occur. In our modern societies, customers expect the light to go on, when they turn the switch, and their houses to be heated, when activating their boilers. Candles and jumpers not offering realistic alternatives, demand is close to inelastic, at least on the short term. Moreover

Strategies for OPEC's pricing decisions. [Using model of world energy market

Energy Technology Data Exchange (ETDEWEB)

Gately, D; Kyle, J F; Fischer, D

1977-11-01

A model of the world energy market that incorporates price expectations and lagged adjustments of demand and supply is used to examine implications of various price-paths that could be selected by OPEC. After demonstrating the sensitivity of the results to changes in functional specifications and certain parameter values, the authors discuss a variety of rule-of-thumb pricing strategies under which OPEC sets prices in response to available market signals. A strategy that is relatively cautious about further major price increases serves OPEC relatively well in comparison with other stategies, but there exists a real possibility of major, abrupt price increases within the next ten years.

Higher energy prices are associated with diminished resources, performance and safety in Australian ambulance systems.

Science.gov (United States)

Brown, Lawrence H; Chaiechi, Taha; Buettner, Petra G; Canyon, Deon V; Crawford, J Mac; Judd, Jenni

2013-02-01

To evaluate the impact of changing energy prices on Australian ambulance systems. Generalised estimating equations were used to analyse contemporaneous and lagged relationships between changes in energy prices and ambulance system performance measures in all Australian State/Territory ambulance systems for the years 2000-2010. Measures included: expenditures per response; labour-to-total expenditure ratio; full-time equivalent employees (FTE) per 10,000 responses; average salary; median and 90th percentile response time; and injury compensation claims. Energy price data included State average diesel price, State average electricity price, and world crude oil price. Changes in diesel prices were inversely associated with changes in salaries, and positively associated with changes in ambulance response times; changes in oil prices were also inversely associated with changes in salaries, as well with staffing levels and expenditures per ambulance response. Changes in electricity prices were positively associated with changes in expenditures per response and changes in salaries; they were also positively associated with changes in injury compensation claims per 100 FTE. Changes in energy prices are associated with changes in Australian ambulance systems' resource, performance and safety characteristics in ways that could affect both patients and personnel. Further research is needed to explore the mechanisms of, and strategies for mitigating, these impacts. The impacts of energy prices on other aspects of the health system should also be investigated. © 2013 The Authors. ANZJPH © 2013 Public Health Association of Australia.

Economics of Carbon Dioxide Sequestration and Mitigation versus a Suite of Alternative Renewable Energy Sources for Electricity Generation in U.S.

Directory of Open Access Journals (Sweden)

Zheming Zhang

2011-01-01

Full Text Available An equilibrium economic model for policy evaluation related to electricity generation in U.S has been developed; the model takes into account the non-renewable and renewable energy sources, demand and supply factors and environmental constraints. The non-renewable energy sources include three types of fossil fuels: coal, natural gas and petroleum, and renewable energy sources include nuclear, hydraulic, wind, solar photovoltaic, biomass wood, biomass waste and geothermal. Energy demand sectors include households, industrial manufacturing and non-manufacturing commercial enterprises. Energy supply takes into account the electricity delivered to the consumer by the utility companies at a certain price which maybe different for retail and wholesale customers. Environmental risks primarily take into account the CO2 generation from fossil fuels. The model takes into account the employment in various sectors and labor supply and demand. Detailed electricity supply and demand data, electricity cost data, employment data in various sectors and CO2 generation data are collected for a period of nineteen years from 1990 to 2009 in U.S. The model is employed for policy analysis experiments if a switch is made in sources of electricity generation, namely from fossil fuels to renewable energy sources. As an example, we consider a switch of 10% of electricity generation from coal to 5% from wind, 3% from solar photovoltaic, 1% from biomass wood and 1% from biomass waste. The model is also applied to a switch from 10% coal to 10% from clean coal technologies. It should be noted that the cost of electricity generation from different sources is different and is taken into account. The consequences of this switch on supply and demand, employment, wages, and emissions are obtained from the economic model under three scenarios: (1 energy prices are fully regulated, (2 energy prices are fully adjusted with electricity supply fixed, and (3 energy prices and

Renewable Energy Price-Stability Benefits in Utility Green Power Programs. 36 pp

Energy Technology Data Exchange (ETDEWEB)

Bird, Lori A. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Cory, Karlynn S. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Swezey, Blair G. [Applied Materials, Santa Clara, CA (United States)

2008-08-01

This paper examines utility experiences when offering the fixed-price benefits of renewable energy in green pricing programs, including the methods utilized and the impact on program participation. It focuses primarily on utility green pricing programs in states that have not undergone electric industry restructuring.

Oil Price Volatility, Economic Growth and the Hedging Role of Renewable Energy

OpenAIRE

Rentschler, Jun E.

2013-01-01

This paper investigates the adverse effects of oil price volatility on economic activity and the extent to which countries can hedge against such effects by using renewable energy. By considering the Realized Volatility of oil prices, rather than following the standard approach of considering oil price shocks in levels, the effects of factor price uncertainty on economic activity are analy...

Risk hedging against the fuel price fluctuation in energy service business

International Nuclear Information System (INIS)

Bannai, Masaaki; Tomita, Yasushi; Ishida, Yasushi; Miyazaki, Takahiko; Akisawa, Atsushi; Kashiwagi, Takao

2007-01-01

Energy service business, or energy service company (ESCO), is expanding among industrial users as a means of energy saving. The ESCO business normally tends to become a long-term operation. During the operation, fluctuations of fuel and electricity costs significantly impact on the stability of the profit from ESCO business. Therefore, it is essential to reduce the risk of fuel and electricity cost fluctuations. Generally, a transaction called ''financial derivative'' is used as a measure of hedging against the fuel price fluctuation. In the case of ESCO business, it is necessary to manage the risk of both electricity and fuel price fluctuations because the variation in electricity price strongly affects the profit from ESCO as that in fuel price does. In this paper, the stabilization of the ESCO profit using financial derivatives was discussed by quantitative analyses of the actual data from existing plants. Case studies revealed that the appropriate volume of the fuel derivative implementation was less than a half of the fuel consumption at the ESCO facilities, and it ranged from 5% to 50%. (author)

The economic and financial crisis: impacts on energy balances and prices

International Nuclear Information System (INIS)

Hyafil, Antoine

2009-01-01

The current economic crisis finds its origin in the existence of a global market for human capital, without unified prices: the development of a debt economy in Western countries can be regarded as an attempt to maintain economic growth in spite of the resulting pressure on labor wages. While the sub-prime crisis has shown the limits of such an attempt, the author believes that debt driven economic growth will continue to prevail in Western countries until price imbalances on the global market for human capital are resolved. This probably implies a substitution of public to private debt, and of private consumption to public investment with the resulting implications on public deficits, supply and demand, and relative prices. Energy prices will be sensitive to public spending's both mechanical impact on economic growth and qualitative impact on energy efficiency

Estimation of several political action effects of energy prices

Directory of Open Access Journals (Sweden)

Andrew B. Whitford

2016-01-01

Full Text Available One important effect of price shocks in the United States has been increased political attention paid to the structure and performance of oil and natural gas markets, along with some governmental support for energy conservation. This article describes how price changes helped lead to the emergence of a political agenda accompanied by several interventions, as revealed through Granger causality tests on change in the legislative agenda.

Extreme prices in electricity balancing markets from an approach of statistical physics

Science.gov (United States)

Mureddu, Mario; Meyer-Ortmanns, Hildegard

2018-01-01

An increase in energy production from renewable energy sources is viewed as a crucial achievement in most industrialized countries. The higher variability of power production via renewables leads to a rise in ancillary service costs over the power system, in particular costs within the electricity balancing markets, mainly due to an increased number of extreme price spikes. This study analyzes the impact of an increased share of renewable energy sources on the behavior of price and volumes of the Italian balancing market. Starting from configurations of load and power production, which guarantee a stable performance, we implement fluctuations in the load and in renewables; in particular we artificially increase the contribution of renewables as compared to conventional power sources to cover the total load. We then determine the amount of requested energy in the balancing market and its fluctuations, which are induced by production and consumption. Within an approach of agent-based modeling we estimate the resulting energy prices and costs. While their average values turn out to be only slightly affected by an increased contribution from renewables, the probability for extreme price events is shown to increase along with undesired peaks in the costs. Our methodology provides a tool for estimating outliers in prices obtained in the energy balancing market, once data of consumption, production and their typical fluctuations are provided.

The duties of public service in relation to cogeneration and renewable energy sources

International Nuclear Information System (INIS)

Suzzoni, P.

2004-01-01

In France, the costs of programs for cogeneration and renewable energy are ultimately paid by consumers via mechanisms based on bids, the obligation to purchase at a guaranteed price, and an evaluation made by the energy regulation Commission. The emission permit (or green certificate) guaranties that the amount of electricity delivered by the producer to the distribution network comes from renewable primary energy sources. A special market devoted to emission permits could be set independently from that of electricity, this market would allow electricity producers to reach a minimal ratio of electricity issued from renewable energy sources. The suggestion made is to test in France marketed emission permits before creating a European market

Price and maternal obesity influence purchasing of low- and high-energy-dense foods2

Science.gov (United States)

Epstein, Leonard H; Dearing, Kelly K; Paluch, Rocco A; Roemmich, James N; Cho, David

2007-01-01

Background Price can influence food purchases, which can influence consumption. Limited laboratory research has assessed the effect of price changes on food purchases, and no research on individual differences that may interact with price to influence purchases exists. Objective We aimed to assess the influence of price changes of low-energy-density (LED) and high-energy-density (HED) foods on mother’s food purchases in a laboratory food-purchasing analogue. Design Mothers were randomly assigned to price conditions in which the price of either LED or HED foods was manipulated from 75% to 125% of the reference purchase price, whereas the price of the alternative foods was kept at the reference value. Mothers completed purchases for 2 income levels ($15 or $30 per family member). Results Purchases were reduced when prices of LED (P elasticity of HED foods and substitution of LED for HED foods. PMID:17921365

Marginal abatement cost curves in general equilibrium: The influence of world energy prices

International Nuclear Information System (INIS)

Klepper, Gernot; Peterson, Sonja

2006-01-01

Marginal abatement cost curves (MACCs) are a favorite instrument to analyze international emissions trading. This paper focuses on the question of how to define MACCs in a general equilibrium context where the global abatement level influences energy prices and in turn national MACCs. We discuss the mechanisms theoretically and then use the CGE model DART for quantitative simulations. The result is, that changes in energy prices resulting from different global abatement levels do indeed affect national MACCs. Also, we compare different possibilities of defining MACCs-of which some are robust against changes in energy prices while others vary considerably. (author)

Cogenerational sources of energies and their allocating problem

Directory of Open Access Journals (Sweden)

Badida Miroslav

1997-12-01

Full Text Available Energy production in industrial communities consume a main part of primary raw materials and it is one of the sources of ecologicall impact. Electric power plants and warm produce plants are mostly important investment – consuming establishments with a long time of return, what stress along with the economical, predictional, logistical and environmental decision making aspect of their allocating. Already input of the mentioned aspects along with the price movement after the energy depression motivate a formation of new conception of combinated so-called items, which are able to use the energetic potential of fuels with a higher concurrent efficiency and, on the other hand, can reduce ecologic impacts of fossil combustion.

Market prices for solar electricity in Ontario

International Nuclear Information System (INIS)

Rowlands, I.H.

2006-01-01

The Ontario electricity supply is facing considerable challenges while demand is increasing due to a growing population and increased economic growth needs. In response to these challenges, the government of Ontario established the Ontario Power Authority (OPA) in 2004 to ensure adequate, reliable and secure electricity supply and resources in Ontario. The OPA has also engaged in activities to facilitate the diversification of sources of electricity supply by promoting the use of cleaner energy sources and technologies, including alternative energy sources and renewable energy. The purpose of this paper was to advance discussions regarding the contribution that solar PV can make to Ontario's supply mix. In particular, it determined the value of the electricity that would have been produced by a PV system located in Waterloo, Ontario under the following 4 pricing regimes: (1) the conventional small user tariff system currently in place in Ontario, (2) the time-of-use pricing system that is voluntarily available to those who have smart meters installed in their facilities, (3) the spot market, hourly prices, to which some of Ontario's largest electricity users are exposed, and (4) the recently-proposed rate for standard offer contracts for PV systems. The study showed that a solar PV system that produces 3,000 kWh of electricity over the course of a year would generate different revenue amounts, ranging from the smallest amount of approximately $174.00 to $1,260.00, depending on the pricing regime. The pricing regime that reflects real, time-of-day electricity prices appears to be most advantageous to solar PV systems. It was recommended that additional work is needed regarding the other benefits of solar PV, such as avoided capacity/generation needs, avoided transmission and distribution cost and losses, environmental benefits, and job creation. 3 refs., 4 tabs., 8 figs

Oil prices and economic growth

International Nuclear Information System (INIS)

Babusiaux, D.; Lescaroux, F.

2006-01-01

There is no limit to the sources of hydrocarbons (whether pumped out of the earth or produced in factories) for the next few decades, but there is and will be a need for increasingly complex and costly techniques as the usual sources of petroleum run out. Does this mean that prices will keep on rising? Probably, since environmental costs must be added onto direct costs. The mining of oil out of 'tar sands', for example, or the production of hydrocarbons by the chemical industry will have a significant impact owing to the emission of greenhouse gases. If prices do rise in the short or middle term, the cause will have to do more with the calendar of investments than with the availability of energy and its costs. In the long run however, price hikes are not all that certain. A few points for analyzing and predicting the macro-and micro-economic effects of fluctuating oil prices are discussed. (author)

Can deployment of renewable energy put downward pressure on natural gas prices?

International Nuclear Information System (INIS)

Wiser, Ryan; Bolinger, Mark

2007-01-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent US-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in US natural gas demand could lead to long-term average wellhead price reductions of 0.8-2%, and that each megawatt-hour of renewable energy may benefit natural gas consumers to the tune of at least $7.5-20

Can deployment of renewable energy put downward pressure on natural gas prices?

International Nuclear Information System (INIS)

Wiser, R.; Bolinger, M.

2007-01-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent US-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in US natural gas demand could lead to long-term average wellhead price reductions of 0.8-2%, and that each megawatt-hour of renewable energy may benefit natural gas consumers to the tune of at least $7.5-20. [Author

Natural gas prices in the Maritimes : an energy market assessment

International Nuclear Information System (INIS)

2004-03-01

The National Energy Board monitors the supply and price of natural gas in the Maritimes. This report contains the results and analysis of a survey of the wholesale natural gas prices paid by Canadian buyers in the Maritimes from November 2002 to October 2003. The objective of the report is to improve the understanding of the market factors that influence wholesale natural gas prices in the Maritimes. A comparative evaluation of domestic and export prices shows that Canadian buyers have had access to gas at prices similar to the export market at St. Stephen, New Brunswick. Since the number of participants in the domestic market is low, only four large buyers have a major impact on average prices in the region. The challenge for small buyers will be to buy gas from others who can divert some of their own sales of use. However, these sellers may not want to over-commit to new firm sales in case they have to re-purchase the gas during shortages that may occur due to fluctuations in production or shipping. It was noted that a new gas supply into the region would support many buyers and sellers, and could lead to a more transparent Maritime natural gas market. The National Energy Board is satisfied that the Maritime natural gas market is currently performing as well as can be expected, given its young stage of development. 1 tab., 8 figs., 1 appendix

The duty of buying electricity from renewable sources and from cogeneration versus purchasing prices

International Nuclear Information System (INIS)

Piha, M.

1992-01-01

Electricity purchase prices are regulated and should not exceed the price at which electricity is purchased from the transmission system belonging to the dominant supplier, viz., the CEZ company. The suitability is discussed of the employed method of average price comparison. Drawbacks of such a comparison lie in the lower reliability of supplies from renewable sources, the necessity of having power reserves available for the case of renewable source failure, power supplies which are economically discriminated in favor of coal fired power plants based on costs which fail to cover simple reproduction, and failure to respect the supply prices in the different tariff classes. In fact, cost and price comparison is only reasonable if it concerns electricity supplies providing the same benefit and having the same or similar parameters and characteristics. Two approaches to the search of an optimum alternative are described, viz. the system approach, respecting the aspects of the complex integrated power system, and the market approach, which is based on the lowest operator's cost of electricity purchase. (J.B.). 1 tab

Natural gas prices force businesses to strategic energy policy

International Nuclear Information System (INIS)

Wisse, C.J.

2006-01-01

There are many factors which force businesses to think about a strategic energy policy: energy prices, supply security, regulations in the Netherlands and the European Union, technological developments with regard to fuels, etc. By using a decision making model several criteria can be assessed for different scenarios [nl

The contribution of the DOE's R ampersand D budget in natural gas to energy price security

International Nuclear Information System (INIS)

Sutherland, R.J.

1992-01-01

The energy price volatility model suggests that some of the proposed natural gas programs can contribute to energy price stability. The sector most vulnerable to fuel price variations is, of course, the transportation sector. The most effective strategy to achieve energy pace stability is to reduce petroleum consumption in this sector. The natural gas vehicle program is therefore recommended as potentially important and worthy of further consideration. At this point, distinguishing the merits of various subprograms is not feasible. This result farther supports the conclusion that the DOE's energy R ampersand D portfolio is not efficiently balanced and an increase in oil and gas research should be a high priority. The DOE has responded favorably and has significantly increased its proposed research with the explicit objective of displacing oil in the transportation sector. The enhanced research and development program for energy security, in the NES, proposes major funding, increases in this area. To recommend the further increases proposed by the industry, a careful analysis of incremental benefits and costs is required. The proposed natural as supply program is intended to enhance the future supply of natural gas. As explained above, enhanced gas supplies can reduce the volatility of gas prices and severe the link between gas and oil prices. The gas supply program is recommended as a potentially important strategy to ensure energy price stability. The importance of this point merits restatement. Oil price volatility affects directly the transportation and industrial sectors. The residential, commercial and electric utility sectors are not highly oil dependent. However, oil prices have affected gas prices and gas is used extensively the residential, commercial, industrial and electric utility sectors. Energy price stability is enhanced in these sectors by severing, the link, between oil and gas prices

The entry of Colombian-sourced heroin into the US market: the relationship between competition, price, and purity.

Science.gov (United States)

Rosenblum, Daniel; Unick, George Jay; Ciccarone, Daniel

2014-01-01

There have been large structural changes in the US heroin market over the past 20 years. Colombian-sourced heroin entered the market in the mid-1990s, followed by a large fall in the price per pure gram and the exit of Asian heroin. By the 2000s, Colombian-sourced heroin had become a monopoly on the east coast and Mexican-sourced heroin a monopoly on the west coast with competition between the two in the middle. We estimate the relationship between these changes in competitive market structure on retail-level heroin price and purity. We find that the entry of Colombian-sourced heroin is associated with less competition and a lower price per pure gram of heroin at the national level. However, there is wide variation in changes in market concentration across the US. Controlling for the national fall in the heroin price, more competition in a region or city is associated with a lower price per pure gram. Copyright © 2013 Elsevier B.V. All rights reserved.

Business cycles and the behavior of energy prices

OpenAIRE

Serletis, Apostolos; Hulleman, Vaughn

1994-01-01

This paper tests the theory of storage--the hypothesis that the marginal convenience yield on inventory falls at a decreasing rate as inventory increases in energy markets (crude oil, heating oil, and unleaded gas markets). We use the Fama and French (1988) indirect test, based on the relative variation in spot and futures prices. The results suggest that the theory holds for the energy markets.

Dynamic electricity pricing for electric vehicles using stochastic programming

International Nuclear Information System (INIS)

Soares, João; Ghazvini, Mohammad Ali Fotouhi; Borges, Nuno; Vale, Zita

2017-01-01

Electric Vehicles (EVs) are an important source of uncertainty, due to their variable demand, departure time and location. In smart grids, the electricity demand can be controlled via Demand Response (DR) programs. Smart charging and vehicle-to-grid seem highly promising methods for EVs control. However, high capital costs remain a barrier to implementation. Meanwhile, incentive and price-based schemes that do not require high level of control can be implemented to influence the EVs' demand. Having effective tools to deal with the increasing level of uncertainty is increasingly important for players, such as energy aggregators. This paper formulates a stochastic model for day-ahead energy resource scheduling, integrated with the dynamic electricity pricing for EVs, to address the challenges brought by the demand and renewable sources uncertainty. The two-stage stochastic programming approach is used to obtain the optimal electricity pricing for EVs. A realistic case study projected for 2030 is presented based on Zaragoza network. The results demonstrate that it is more effective than the deterministic model and that the optimal pricing is preferable. This study indicates that adequate DR schemes like the proposed one are promising to increase the customers' satisfaction in addition to improve the profitability of the energy aggregation business. - Highlights: • A stochastic model for energy scheduling tackling several uncertainty sources. • A two-stage stochastic programming is used to tackle the developed model. • Optimal EV electricity pricing seems to improve the profits. • The propose results suggest to increase the customers' satisfaction.

Interdependencies in the energy-bioenergy-food price systems: A cointegration analysis

International Nuclear Information System (INIS)

Ciaian, Pavel; Kancs, d'Artis

2011-01-01

The present paper studies the interdependencies between the energy, bioenergy and food prices. We develop a vertically integrated multi-input, multi-output market model with two channels of price transmission: a direct biofuel channel and an indirect input channel. We test the theoretical hypothesis by applying time-series analytical mechanisms to nine major traded agricultural commodity prices, including corn, wheat, rice, sugar, soybeans, cotton, banana, sorghum and tea, along with one weighted average world crude oil price. The data consists of 783 weekly observations extending from January 1994 to December 2008. The empirical findings confirm the theoretical hypothesis that the prices for crude oil and agricultural commodities are interdependent including also commodities not directly used in bioenergy production: an increase in oil price by 1 $/barrel increases the agricultural commodity prices between 0.10 $/tonne and 1.80 $/tonne. Contrary to the theoretical predictions, the indirect input channel of price transmission is found to be small and statistically insignificant. (author)

Impact of energy prices: a housing-market analysis

Energy Technology Data Exchange (ETDEWEB)

Zaki, A.S.; Isakson, H.R.

1983-04-01

This paper investigates the effect of energy costs on the housing-market response. As the effect of energy costs has not been specifically investigated before in the literature, both a linear and nonlinear model were investigated. The choice of the appropriate model was determined using the Box-Cox transformation technique. The chosen model was then validated. The results reveal that in the Spokane, Washington, area, where energy costs are relatively low, energy prices do not have a significant effect on market response. However, applying the same methodology to areas where energy costs are higher might produce different results. 29 references, 3 tables.

Economic impact on the Florida economy of energy price spikes

International Nuclear Information System (INIS)

Mory, J.F.

1992-01-01

A substantial disturbance in oil supplies is likely to generate a large price upsurge and a downturn in the level of economic activity. Each of these two effects diminishes demand by a certain amount. The specific price surge required to reduce demand to the lower level of supply can be calculated with an oil demand function and with empirical estimations of the association between price spikes and declines in economic activity. The first section presents an energy demand model for Florida, which provides the price and income elasticities needed. The second section includes theoretical explanations and empirical estimations of the relationship between price spikes and recessions. Based on historical evidence, it seems that Florida's and the nation's economic systems are very sensitive to oil price surges. As price spikes appear damaging to the economy, it could be expected that reductions in the price of oil are beneficial to the system. That is likely to be the case in the long run, but no empirical evidence of favorable short-term effects of oil price decreases was found. Several possible explanations and theoretical reasons are offered to explain this lack of association. The final section presents estimates of the effect of oil disruptions upon specific industries in Florida and the nation

Reserve price: Lessons learned from Brazilian electricity procurement auctions

International Nuclear Information System (INIS)

Rego, Erik Eduardo

2013-01-01

Auctions have been used in several formats in the electric energy industry. In general, regulators may be uncomfortable initiating a reverse auction at a higher-than-expected final price, fearing that participants may sell their energy at an excess profitability. Nevertheless, evidence from electricity procurement auctions conducted in Brazil supports the findings that these types of auctions have the opposite effect. By attracting a larger number of agents, these auctions can trigger stronger competition and lead to lower settlement pricing. Accordingly, the Brazilian cases examined in this article present significant evidence to support this directional theory. In fact, there are some cases of electricity procurement auctions that show that inadequate auction reserve pricing leads to inefficient outcomes and may also cause the auction to fail. On the other hand, auctions with adequate price caps have led to lower final clearing prices, thus contributing to reasonable final energy pricing. - Highlights: • Outcomes from Brazilian electricity procurement auctions were analyzed. • Cases of success and frustration after adopting (in)adequate reserve prices. • Setting different price caps per source is inefficient. • Higher-than-normal price cap is more effective than fine-tuning reserve prices

Essays on energy derivatives pricing and financial risk management =

Science.gov (United States)

Madaleno, Mara Teresa da Silva

This thesis consists of an introductory chapter (essay I) and five more empirical essays on electricity markets and CO2 spot price behaviour, derivatives pricing analysis and hedging. Essay I presents the structure of the thesis and electricity markets functioning and characteristics, as well as the type of products traded, to be analyzed on the following essays. In the second essay we conduct an empirical study on co-movements in electricity markets resorting to wavelet analysis, discussing long-term dynamics and markets integration. Essay three is about hedging performance and multiscale relationships in the German electricity spot and futures markets, also using wavelet analysis. We concentrate the investigation on the relationship between coherence evolution and hedge ratio analysis, on a time-frequency-scale approach, between spot and futures which conditions the effectiveness of the hedging strategy. Essays four, five and six are interrelated between them and with the other two previous essays given the nature of the commodity analyzed, CO2 emission allowances, traded in electricity markets. Relationships between electricity prices, primary energy fuel prices and carbon dioxide permits are analyzed on essay four. The efficiency of the European market for allowances is examined taking into account markets heterogeneity. Essay five analyzes stylized statistical properties of the recent traded asset CO2 emission allowances, for spot and futures returns, examining also the relation linking convenience yield and risk premium, for the German European Energy Exchange (EEX) between October 2005 and October 2009. The study was conducted through empirical estimations of CO2 allowances risk premium, convenience yield, and their relation. Future prices from an ex-post perspective are examined to show evidence for significant negative risk premium, or else a positive forward premium. Finally, essay six analyzes emission allowances futures hedging effectiveness, providing

Nuclear power: tomorrow's energy source; Le nucleaire: une energie pour l'avenir

Energy Technology Data Exchange (ETDEWEB)

NONE

2002-07-01

In France, 76% of electricity is produced by nuclear power. The industry's pricing levels are among the most competitive in Europe. Thanks to its 58 nuclear reactors France enjoys almost 50% energy autonomy thus ensuring a highly stable supply. Equally, as a non-producer of greenhouse gases, the nuclear sector can rightfully claim to have an environmentally friendly impact. Against a background to increasing global demand with predictions that fossil fuels will run out and global warming a central issue, it is important to use production methods which face up to problems of this nature. There is no question that nuclear energy has a vital role to play alongside other energy sources. (authors)

Modeling energy price dynamics: GARCH versus stochastic volatility

International Nuclear Information System (INIS)

Chan, Joshua C.C.; Grant, Angelia L.

2016-01-01

We compare a number of GARCH and stochastic volatility (SV) models using nine series of oil, petroleum product and natural gas prices in a formal Bayesian model comparison exercise. The competing models include the standard models of GARCH(1,1) and SV with an AR(1) log-volatility process, as well as more flexible models with jumps, volatility in mean, leverage effects, and t distributed and moving average innovations. We find that: (1) SV models generally compare favorably to their GARCH counterparts; (2) the jump component and t distributed innovations substantially improve the performance of the standard GARCH, but are unimportant for the SV model; (3) the volatility feedback channel seems to be superfluous; (4) the moving average component markedly improves the fit of both GARCH and SV models; and (5) the leverage effect is important for modeling crude oil prices—West Texas Intermediate and Brent—but not for other energy prices. Overall, the SV model with moving average innovations is the best model for all nine series. - Highlights: • We compare a variety of GARCH and SV models for fitting nine series of energy prices. • We find that SV models generally compare favorably to their GARCH counterparts. • The SV model with moving average innovations is the best model for all nine series.

Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectations

International Nuclear Information System (INIS)

Amstalden, Roger W.; Kost, Michael; Nathani, Carsten; Imboden, Dieter M.

2007-01-01

The aim of this paper is to analyse the profitability of energy-efficient retrofit investments in the Swiss residential building sector from the house owner's perspective. Different energy price expectations, policy instruments such as subsidies, income tax deduction and a carbon tax, as well as potential future cost degression of energy efficiency measures were taken into account. The discounted cash flow method was used for the investment analysis of different retrofit packages applied to a model building scheduled for renovation, i.e. a single-family house constructed between 1948 and 1975. The results show that present Swiss policy instruments push investments for energy-efficient retrofitting to profitability. Cost degression has a minor significance for investment profitability. However, the most relevant factor for the investment analysis is the expected energy price. Expecting a future fuel oil price at the level of 2005, efficiency investments are close to profitability even without policy support. If higher energy prices were expected, energy-efficient retrofitting would be an attractive investment opportunity

Cost and Price Metrics for Automotive Lithium-Ion Batteries

Energy Technology Data Exchange (ETDEWEB)

None

2017-02-01

Values of current energy technology costs and prices, available from a variety of sources, can sometimes vary. While some of this variation can be due to differences in the specific materials or configurations assumed, it can also reflect differences in the definition and context of the terms "cost" and "price." This fact sheet illustrates and explains this latter source of variation in a case study of automotive lithium-ion batteries.

Energy price increases and economic development in Malaysia.

OpenAIRE

Fong CO

1984-01-01

ILO pub-WEP pub. Working paper on the impact of higher energy costs (particularly petroleum price increases) on economic development in Malaysia, 1973 to 1983 - outlines trends in gross domestic product, balance of payments, trade and economic growth; considers household income and fuel expenditure of low income rural communitys; deals with choice of technology and employment in certain high power consumption industries; discusses energy policy implications. Graphs, maps, questionnaires, refe...

Business cycles and the behavior of energy prices

Energy Technology Data Exchange (ETDEWEB)

Serletis, A.; Hulleman, V. [Univ. of Calgary, Alberta (Canada)

1994-12-31

This paper tests the theory of storage - the hypothesis that the marginal convenience yield on inventory falls at a decreasing rate as inventory increases in energy markets (crude oil, heating oil, and unleaded gas markets). We use the Fama and French (1988) indirect test, based on the relative variation in spot and futures prices. The results suggest that the theory holds for the energy markets. 11 refs., 4 tabs.

Canadian natural gas market: dynamics and pricing -- an energy market assessment

International Nuclear Information System (INIS)

2000-11-01

This publication is part of the Energy Market Assessment Program of the National Energy Board. It focuses on identifying factors that affect natural gas prices and describe the current functioning of domestic regional markets in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and in the Atlantic provinces.The report emphasizes the growth in demand for natural gas throughout North America, and the aggressive response by producers to the current high price environment with increased drilling programs. The report also predicts a supply and demand adjustment over time, and an accompanying relief in natural gas prices, although the Board is not able to predict with certainty any movements in commodity markets. The Board's findings indicate that domestic users of natural gas paid less than export customers until 1998, at which point the two prices have converged. The end result of the convergence was that Canadians have had access to natural gas under terms and conditions which were no less favourable than those in effect for export customers. The influence of electronic trading systems is reviewed, noting that spot markets and futures markets such as the NYMEX and AECO-C/NIT have had a significant impact on the pricing of natural gas, mostly by allowing market participants to manage price volatility by forward contracting. 1 tab., 42 figs., 1 glossary

Pricing electricity for sustainability : climate change and Canada's electricity sector

International Nuclear Information System (INIS)

2010-01-01

The electricity sector is Canada's largest single source of greenhouse gas (GHG) emissions. This paper discussed electricity and carbon pricing approaches to reducing GHG emissions in the electricity sector. An overview of the links between electricity pricing and climate change was presented, and current and emerging trends in electricity pricing related to encouraging energy conservation were reviewed. Market prices and failures were discussed. Approaches to pricing electricity included an increase in block prices; time-of-use prices; demand-side management and energy efficiency; and carbon pricing in Canada and electricity pricing signals. The study showed that several provincial utilities in Canada are experimenting with market-based pricing approaches for electricity and carbon that may help to reduce GHG emissions over time. Concerns over electricity supply and the negative environmental impacts of electricity production may lead to the full social pricing of electricity in some regions of Canada. 46 refs., 3 tabs., 5 figs.

A logistic regression approach to model the willingness of consumers to adopt renewable energy sources

Science.gov (United States)

Ulkhaq, M. M.; Widodo, A. K.; Yulianto, M. F. A.; Widhiyaningrum; Mustikasari, A.; Akshinta, P. Y.

2018-03-01

The implementation of renewable energy in this globalization era is inevitable since the non-renewable energy leads to climate change and global warming; hence, it does harm the environment and human life. However, in the developing countries, such as Indonesia, the implementation of the renewable energy sources does face technical and social problems. For the latter, renewable energy sources implementation is only effective if the public is aware of its benefits. This research tried to identify the determinants that influence consumers’ intention in adopting renewable energy sources. In addition, this research also tried to predict the consumers who are willing to apply the renewable energy sources in their houses using a logistic regression approach. A case study was conducted in Semarang, Indonesia. The result showed that only eight variables (from fifteen) that are significant statistically, i.e., educational background, employment status, income per month, average electricity cost per month, certainty about the efficiency of renewable energy project, relatives’ influence to adopt the renewable energy sources, energy tax deduction, and the condition of the price of the non-renewable energy sources. The finding of this study could be used as a basis for the government to set up a policy towards an implementation of the renewable energy sources.

The 'mini' and 'micro' energy sources and their limitations; Les ''minis'' et ''micros'' sources d'energie et leurs limites

Energy Technology Data Exchange (ETDEWEB)

Anon.

2004-03-01

The 'Science and defense 2003' colloquium took place in Paris on December 2 and 3. It was organized by the general delegation of armament (DGA), the French atomic energy commission (CEA) with the participation of the national center of scientific research (CNRS) and the French ministry of research and new technologies. The main topic was the needs and the solutions implemented in the domain of energy sources both for civil and military portable applications. This article make a general summary of the content of this colloquium only in the domain of small power energy sources: emergence of new miniaturized portable devices (phones, computers, cameras, autonomous medical systems, wireless communication systems, soldiers equipments, drones etc..), improvement of batteries energy density and price, new needs linked with new functionalities, technological challenges (energy generation and recovery systems, miniaturized fuel-cells, use of recoverable energy sources, implantation of power sources in the human body etc..), new technological files (new electrode materials, micron- or sub-micron scale mechanical and electronic components, sensors, micro-motors, transfer of microelectronics technologies, hybrid systems..), international competition. (J.S.)

Rising energy prices and the economics of water in agriculture

NARCIS (Netherlands)

Zilberman, D.; Sproul, T.; Rajagopal, D.; Sexton, S.; Hellegers, P.J.G.J.

2008-01-01

Rising energy prices will alter water allocation and distribution. Water extraction and conveyance will become more costly and demand for hydroelectric power will grow. The higher cost of energy will substantially increase the cost of groundwater, whereas increasing demand for hydroelectric power

A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid

OpenAIRE

Zhu, Jingwei; Chen, Michael Z. Q.; Du, Baozhu

2014-01-01

Improvement of the overall efficiency of energy infrastructure is one of the main anticipated benefits of the deployment of smart grid technology. Advancement in energy storage technology and two-way communication in the electric network are indispensable components to achieve such a vision, while efficient pricing schemes and appropriate storage management are also essential. In this paper, we propose a universal pricing scheme which permits one to indirectly control the energy storage devic...

The world energy demand in 2005: confirmed increase in energy consumptions, despite soaring crude oil prices

International Nuclear Information System (INIS)

Chateau, Bertrand

2006-01-01

The world energy demand growth remains strong: 2004 experienced the highest growth since 19987, and brent prices had moderate impact in 2005: Very strong rise of energy consumptions despite high oil prices, Economic situation still favorable, Evolutions principally due to China. 2005 world energy consumption: 11,4 Gtoe: Asia accounts for 35% of the world energy consumption, China's weight (15%) continues to increase by one point every year (+5 points since 2000). Asia increases its pressure on the world energy growth in 2005: China accounts for almost half of the world energy consumption increase in 2005, the whole Asia accounts for 70%; The European consumption growth represents less than 5% of China's Growth; The American energy consumption decreases for the first time. 2005 world consumption by energy: With an increasing market share by 0,7 points, coal penetration increases; The oil market has lost 0,4 point, with an accelerating relative decrease; The relative weight of gas remains stable, with 21%. Energy efficiency and energy intensity of GDP: Slow-down of the world energy intensity decrease since 2001, whereas the economic growth is faster, due to changes in trends in China (increase in the recent years). Increase less sharp in China in 2005 (price effect). Energy intensity trends of GDP: Fast decrease in CIS since the recovery of the economic growth; Slow-down of the decrease in EU since 2000 and recovery in 2005 whereas the decrease has accelerated in the USA. Since 2000, the energy consumption increases less rapidly than the GDP almost everywhere, except for the Middle East. Projections until 2020: China and India could represent one third of the world energy growth, the whole of Asia more than 50%; Growth prospects for energy demand are low in the EU and CIS; America would account for 20% of the world energy growth (8% USA); In the rest of the world, high growth in Africa and in the Middle East. Gas could cover more than 40% of the world energy

Renewable Energy Sources - Technologies and Development of the Economy

International Nuclear Information System (INIS)

Car, S.

2010-01-01

The usage of renewable energy sources is a substitute for usage of fossil fuels, whose quantities are limited, and it represents an essential contribution to the reduction of greenhouse gases; at the same time it has a great economic significance for the development of new industries and creation of new jobs. To speed up gradual transition from fossil to renewable sources, governments of all EU member states harmonise their legislations and subordinate regulations promoting investments in usage of renewable sources and thus creating opportunities for new jobs especially in the production of plants and equipment for utilisation of wind power, solar energy, small hydro power plants, biomass and other kinds of renewable sources. In the last 10 years Croatia has adopted a number of acts and regulations that also stimulate investors to utilise renewable sources, and the source of such subsidies is a higher price of electricity paid by all the consumers. On the other hand, the development of domestic industry and gaining references necessary for gaining new contracts are very difficult because of stiff international competition and foreign sources of finance, which often require purchase of foreign equipment as a condition for contract award. In such conditions the utilisation of renewable sources does not contribute either to economic development or creating new jobs in Croatia, but in the countries in which such equipment is produced.(author).

Is there a price premium for energy efficiency labels? Evidence from the Introduction of a Label in Korea

International Nuclear Information System (INIS)

Park, Ju Young

2017-01-01

This study examines the price premium from Korea's Energy Efficiency Grade Label. The Korean government recently began energy certification of televisions, providing a setting to analyze a possible price effect of the new label. Hedonic regression results seem to show that a price premium exists for products with the Energy Efficiency Grade Label. However, potential unobserved heterogeneity is a concern. Difference-in-difference and fixed-effects models are used to capture the net effect of the label by controlling for time and product differences. The results suggest that any price premium does not result from the energy efficiency label itself. Instead, energy-efficient products already had higher prices before the introduction of the energy efficiency label. The finding turns our attention to the importance of careful design of labeling programs. - Highlights: • The study examines the price premium from Korea's Energy Efficiency Grade Label. • Difference-in-difference and fixed-effects models are used to address potential unobserved heterogeneity and to capture the net effect of the label by controlling for time and product differences. • The result suggests that any price premium does not result from the energy efficiency label itself; instead, energy-efficient products already have higher prices before the introduction of the energy efficiency label. • The finding turns our attention to the importance of careful design of labeling programs.

The price of natural gas

International Nuclear Information System (INIS)

Bakhtiari, A.M.S.

2001-01-01

Natural gas used to be a relatively cheap primary energy source, always at a discount to crude oil (on a comparative British thermal unit basis). It gradually evolved into a major resource during the 20th century - reaching a 24 per cent share of global primary energy in 1999. In the year 2000, natural gas prices in the USA rose to unheard-of highs of 10/million US dollars Btu, ushering in a new era, with natural gas at a 120 per cent premium to crude oil. This clearly was a watershed for gas, somehow similar to the 1973-74 watershed for oil prices. And similarly, any return to the status quo-ante looks rather improbable, although a number of experts (alongside the International Energy Agency) still believe the 2000 price 'spike' to have been ''only transitory''. The consequences of higher gas prices (at a level equal to crude oil prices on a Btu basis) will be multifaceted and momentous, altering habits and uses in downstream industries and economic sectors, as well as providing added income for major gas-exporters, such as Russia, Canada and Algeria. Another potential consequence of the 2000 watershed might be to propel US standard prices (such as the 'Henry Hub' spot) to international status and gas price-setter, as the 'WTI spot' became an 'international benchmark' for crude oils in the post-1993 era. For the time being, the equality of gas and oil prices has become the new norm; but, in the longer term, a discount of crude oil relative to natural gas might be envisaged, as the latter is a cleaner fuel and emits less carbon dioxide when used. (author)

The Impact of Energy Prices on Employment and Environmental Performance: Evidence from French Manufacturing Establishments

International Nuclear Information System (INIS)

Marin, Giovanni; Vona, Francesco

2017-01-01

This paper evaluates the historical influence of energy prices on a series of measures of environmental and economic performance for a panel of French manufacturing establishments over the period 1997-2010. The focus on energy prices is motivated by the fact that changes in environmental and energy policies have been dominated by substantial reductions in discounts for large consumers, making the evaluation of each policy in isolation exceedingly difficult. To identify price effects, we construct a shift-share instrument that captures only the exogenous variation in establishment-specific energy prices. Our results highlight a trade-off between environmental and economic goals: although a 10 percent increase in energy prices brings about a 6 percent reduction in energy consumption and to a 11 percent reduction in CO_2 emissions, such an increase also has a modestly negative impact on employment (-2.6 percent) and very small impact on wages and productivity. The negative employment effects are mostly concentrated in energy-intensive and trade-exposed sectors. Simulating the effect of a carbon tax, we show that job losses for the most exposed sectors can be quite large. However, these effects are upper bounds and we show that they are significantly mitigated in multi-plant firms by labor reallocation across establishments. (authors)

Economic aspects and potentials of renewable energy sources in Germany

International Nuclear Information System (INIS)

Mannsbart, W.; Reichert, J.

1992-01-01

While there is a high theoretical potential for renewable energy sources in Germany, assessing theoretical potentials is more or less like playing with numbers; severe technical shortcomings and economic factors prevent then from being fully achieved. Unsuitable azimuth and slope of roofs, shading, absence of central hot water systems limit the application of collectors. The present storage technology is not suitable for a solar share higher than 50%. Individual space heating is not feasible under local climatic conditions. The broad application of biomass fuels fails because of limited resources. Feeding high amounts of fluctuating electricity generated by wind and photovoltaic systems into utility grids causes stability and storage problems. Insufficient training of installation personnel, lack of incentives for multi-family housing owners and high investment costs hinder the market penetration of renewable energy sources. Drastic cost reductions can only be expected from mass production. Therefore, appropriate policy measures - raised energy prices, as well as, subsidies or tax reliefs are necessary for market breakthrough

Nuclear energy consumption, oil prices, and economic growth: Evidence from highly industrialized countries

International Nuclear Information System (INIS)

Lee, Chien-Chiang; Chiu, Yi-Bin

2011-01-01

This study utilizes the Johansen cointegration technique, the Granger non-causality test of Toda and Yamamoto (1995), the generalized impulse response function, and the generalized forecast error variance decomposition to examine the dynamic interrelationship among nuclear energy consumption, real oil price, oil consumption, and real income in six highly industrialized countries for the period 1965-2008. Our empirical results indicate that the relationships between nuclear energy consumption and oil are as substitutes in the U.S. and Canada, while they are complementary in France, Japan, and the U.K. Second, the long-run income elasticity of nuclear energy is larger than one, indicating that nuclear energy is a luxury good. Third, the results of the Granger causality test find evidence of unidirectional causality running from real income to nuclear energy consumption in Japan. A bidirectional relationship appears in Canada, Germany and the U.K., while no causality exists in France and the U.S. We also find evidence of causality running from real oil price to nuclear energy consumption, except for the U.S., and causality running from oil consumption to nuclear energy consumption in Canada, Japan, and the U.K., suggesting that changes in price and consumption of oil influence nuclear energy consumption. Finally, the results observe transitory initial impacts of innovations in real income and oil consumption on nuclear energy consumption. In the long run the impact of real oil price is relatively larger compared with that of real income on nuclear energy consumption in Canada, Germany, Japan, and the U.S.

Nuclear energy consumption, oil prices, and economic growth: Evidence from highly industrialized countries

Energy Technology Data Exchange (ETDEWEB)

Lee, Chien-Chiang, E-mail: cclee@cm.nsysu.edu.tw; Chiu, Yi-Bin

2011-03-15

This study utilizes the Johansen cointegration technique, the Granger non-causality test of Toda and Yamamoto (1995), the generalized impulse response function, and the generalized forecast error variance decomposition to examine the dynamic interrelationship among nuclear energy consumption, real oil price, oil consumption, and real income in six highly industrialized countries for the period 1965-2008. Our empirical results indicate that the relationships between nuclear energy consumption and oil are as substitutes in the U.S. and Canada, while they are complementary in France, Japan, and the U.K. Second, the long-run income elasticity of nuclear energy is larger than one, indicating that nuclear energy is a luxury good. Third, the results of the Granger causality test find evidence of unidirectional causality running from real income to nuclear energy consumption in Japan. A bidirectional relationship appears in Canada, Germany and the U.K., while no causality exists in France and the U.S. We also find evidence of causality running from real oil price to nuclear energy consumption, except for the U.S., and causality running from oil consumption to nuclear energy consumption in Canada, Japan, and the U.K., suggesting that changes in price and consumption of oil influence nuclear energy consumption. Finally, the results observe transitory initial impacts of innovations in real income and oil consumption on nuclear energy consumption. In the long run the impact of real oil price is relatively larger compared with that of real income on nuclear energy consumption in Canada, Germany, Japan, and the U.S.

The impact of ownership on price-setting in retail-energy markets—The German case

International Nuclear Information System (INIS)

Nikogosian, Vigen; Veith, Tobias

2012-01-01

This paper analyzes whether public ownership has an impact on providers' price-setting. Under the assumption of more efficient energy provision which benefits customers a large number of former energy monopolists have been privatized in line with the liberalization of energy markets in Germany at the end of the 1990s. However, current re-municipalizations are justified by similar arguments in the public debate. Based on a dataset on the ownership structure of energy providers we find that public property or private property itself is not the decisive factor for lower retail and wholesale prices. Rather, a high ownership concentration leads to low prices, regardless of the type of owner. As public investors often seek total ownership of a provider, households, which are less willing to switch, benefit at least indirectly from public ownership. Tests for robustness of our results applying different owner and concentration measures confirm the results independently from the underlying estimation specification. - Highlights: ► No difference between publicly or privately owned companies in retail price choice. ► The higher the ownership concentration the lower the retail price. ► No ownership impact on distribution charges, regulation effective against strategic ownership decisions.

Price determinants of the European carbon market and interactions with energy markets

Energy Technology Data Exchange (ETDEWEB)

Schumacher, Katja; Cludius, Johanna; Matthes, Felix [Oeko Institut e.V., Berlin (Germany); Diekmann, Jochen; Zaklan, Aleksandar [Deutsches Institut fuer Wirtschaftsforschung, Berlin (Germany); Schleich, Joachim [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany)

2012-06-15

This report explores the determinants of short run price movements in the carbon market and their interaction with energy markets, in particular with the electricity market. Focusing on Phase 2 of the EU ETS we conduct econometric time series analysis based on continental EU and UK market data. Our findings suggest that market fundamentals have a dominant effect on the EUA price, but that non-fundamental factors may also play a role. We further found that the electricity price has a significant positive impact on the carbon price in the short run.

How the removal of energy subsidy affects general price in China: A study based on input–output model

International Nuclear Information System (INIS)

Jiang, Zhujun; Tan, Jijun

2013-01-01

In China, most energy prices are controlled by the government and are under-priced, which means energy subsidies existing. Reforming energy subsidies have important implications for sustainable development through their effects on energy price, energy use and CO 2 emission. This paper applies a price-gap approach to estimate China's fossil-fuel related subsidies with the consideration of the external cost. Results indicate that the magnitude of subsidies amounted to CNY 1214.24 billion in 2008, equivalent to 4.04% of GDP of that year. Subsidies for oil products are the largest, followed by subsidies for the coal and electricity. Furthermore, an input–output model is used to analyze the impacts of energy subsidies reform on different industries and general price indexes. The findings show that removal of energy subsidies will have significant impact on energy-intensive industry, and consequently push up the general price level, yet with a small variation. Removing oil products subsidies will have the largest impact, followed by electricity, coal and natural gas. However, no matter which energy price increases, PPI is always the most affected, then GDP deflator, with CPI being the least. Corresponding compensation measures should be accordingly designed to offset the negative impact caused by energy subsidies reform. - Highlights: • China's fossil-fuel subsidies were CNY 1214.24 billion in 2008 including external cost. • Removing energy subsidies will have the largest impact on energy-intensity industry. • Removal of oil products subsidies will have the largest impact. • The effect of removing energy subsidies on general price is: PPI>GDP deflator>CPI

The bio-energies development: the role of biofuels and the CO2 price

International Nuclear Information System (INIS)

Jouvet, Pierre-Andre; Lantz, Frederic; Le Cadre, Elodie

2012-01-01

Reduction in energy dependency and emissions of CO 2 via renewable energies targeted in the European Union energy mix and taxation system, might trigger the production of bio-energy production and competition for biomass utilization. Torrefied biomass could be used to produce second generation biofuels to replace some of the fuels used in transportation and is also suitable as feedstock to produce electricity in large quantities. This paper examines how the CO 2 price affects demand of torrefied biomass in the power sector and its consequences on the profitability of second generation biofuel units (Biomass to Liquid units). Indeed, the profitability of the BtL units which are supplied only by torrefied biomass is related to the competitive demand of the power sector driven by the CO 2 price and feed-in tariffs. We propose a linear dynamic model of supply and demand. On the supply side, a profit-maximizing torrefied biomass sector is modelled. The model aims to represent the transformation of biomass into torrefied biomass which could be sold to the refinery sector and the power sector. A two-sided (demanders and supplier) bidding process led us to arrive at the equilibrium price for torrefied biomass. The French case is used as an example. Our results suggest that the higher the CO 2 price, the more stable and important the power sector demand. It also makes the torrefied biomass production less vulnerable to uncertainty on demand coming from the refining sector. The torrefied biomass co-firing with coal can offer a near-term market for the torrefied biomass for a CO 2 emission price lower than 20 euros/tCO 2 , which can stimulate development of biomass supply systems. Beyond 2020, the demand for torrefied biomass from the power sector could be substituted by the refining sector if the oil price goes up whatever the CO 2 price. (authors)

Energy statistics. France

International Nuclear Information System (INIS)

2002-10-01

This document summarizes in a series of tables the energy statistical data for France: consumption since 1973; energy supplies (production, imports, exports, stocks) and uses (refining, power production, internal uses, sectoral consumption) for coal, petroleum, gas, electricity, and renewable energy sources; national production and consumption of primary energy; final consumption per sector and per energy source; general indicators (energy bill, US$ change rate, prices, energy independence, internal gross product); projections. Details (resources, uses, prices, imports, internal consumption) are given separately for petroleum, natural gas, electric power and solid mineral fuels. (J.S.)

The price of crude oil

International Nuclear Information System (INIS)

Bakhtiari, A.M.S.

1999-01-01

The price of crude oil is among the most important prices quoted daily across the world - which is not surprising, since crude oil is the most widely used source of energy worldwide, as well as being a unique commodity. When petroleum burst onto the world stage in 1859, its price first went through some initial gyrations (1860-70), before settling in the $1.00 - 2.00 per barrel range (barring a few exceptions) for a full century. Then, the price underwent two 'shocks' (1973 and 1980), followed by the 'counter-shock' of 1986. Thereafter, the price entered the relative stability of the $15 - 20 /b consensus, where it lingered until recently. Some day, there is bound to be a fresh paradigm of 'insufficient oil reserves', thus ushering in a new era for oil prices. Taking into consideration available data on reserves and expert analysis, it would seem that that day may be years rather than decades away

Energy savings potential in China's industrial sector: From the perspectives of factor price distortion and allocative inefficiency

International Nuclear Information System (INIS)

Ouyang, Xiaoling; Sun, Chuanwang

2015-01-01

China's industrial energy consumption accounted for 70.82% of national and 14.12% of world energy usage in 2011. In the context of energy scarcity and environmental pollution, the industrial sector in China faces unsustainable growth problems. By adopting the stochastic frontier analysis (SFA) framework, this paper analyzes the factor allocative efficiency of China's industrial sector, and estimates the energy savings potential from the perspective of allocative inefficiency. This paper focuses on three issues. The first is examining the factor allocative inefficiency of China's industrial sector. The second is measuring factor price distortion by the shadow price model. The third is estimating the energy savings potential in China's industrial sector during 2001–2009. Major conclusions are thus drawn. First, factor prices of capital, labor and energy are distorted in China due to government regulations. Moreover, energy price is relatively low compared to capital price, while is relatively high compared to labor price. Second, the industry-wide energy savings potential resulted from energy allocative inefficiency was about 9.71% during 2001–2009. The downward trend of energy savings potential implies the increasing energy allocative efficiency in China's industrial sector. Third, a transparent and reasonable pricing mechanism is conducive to improving energy allocative efficiency. - Highlights: • We measure energy savings potential resulted from allocative inefficiency in China's industrial sector. • Allocative inefficiency is explained based on the theoretical and empirical models. • Factor prices of capital, labor and energy are distorted because of government regulations. • Energy pricing reform is conducive to improving energy allocative efficiency

Internalising externalities of energy use through price mechanism: a developing country perspective

International Nuclear Information System (INIS)

Bhattacharyya, S.C.

1995-01-01

As concern grows about the environmental aspect of energy use, it is increasingly suggested in recent years that energy pricing should take negative externalities of energy use into account. A large body of literature, both theoretical and applied, has grown up over the years proposing a variety of options and methods for internalising environmental costs. However, most of these theories and methods, developed in the industrialised countries, have hitherto neglected two aspects of developing economies: the existence of informal sector in the economy and widespread use of traditional energies. This paper discusses the issues related to internalising environmental costs through price mechanism when these two aspects are included. It also calls for a more careful analysis of energy and environmental policies. (author)

Entropy, pricing and macroeconomics of pumped-storage systems

Science.gov (United States)

Karakatsanis, Georgios; Mamassis, Nikos; Koutsoyiannis, Demetris; Efstratiadis, Andreas

2014-05-01

We propose a pricing scheme for the enhancement of macroeconomic performance of pumped-storage systems, based on the statistical properties of both geophysical and economic variables. The main argument consists in the need of a context of economic values concerning the hub energy resource; defined as the resource that comprises the reference energy currency for all involved renewable energy sources (RES) and discounts all related uncertainty. In the case of pumped-storage systems the hub resource is the reservoir's water, as a benchmark for all connected intermittent RES. The uncertainty of all involved natural and economic processes is statistically quantifiable by entropy. It is the relation between the entropies of all involved RES that shapes the macroeconomic state of the integrated pumped-storage system. Consequently, there must be consideration on the entropy of wind, solar and precipitation patterns, as well as on the entropy of economic processes -such as demand preferences on either current energy use or storage for future availability. For pumped-storage macroeconomics, a price on the reservoir's capacity scarcity should also be imposed in order to shape a pricing field with upper and lower limits for the long-term stability of the pricing range and positive net energy benefits, which is the primary issue of the generalized deployment of pumped-storage technology. Keywords: Entropy, uncertainty, pricing, hub energy resource, RES, energy storage, capacity scarcity, macroeconomics

Threshold effect of the economic growth rate on the renewable energy development from a change in energy price. Evidence from OECD countries

International Nuclear Information System (INIS)

Chang, Ting-Huan; Huang, Chien-Ming; Lee, Ming-Chih

2009-01-01

This paper uses a panel threshold regression (PTR) model to investigate the influence that energy prices have on renewable energy development under different economic growth rate regimes. The empirical data are obtained from each of the OECD member-countries over the period from 1997 to 2006. We show that there is one threshold in the regression relationship, which is 4.13% of a one-period lag in the annual gross domestic product (GDP) growth rate. The consumer price index (CPI), in so far as it relates to variations in energy, is significantly positively correlated with the contribution of renewables to energy supply in the regime with higher-economic growth, but there is no relationship in the regime with lower economic growth. Therefore, countries characterized by high-economic growth are able to respond to high energy prices with increases in renewable energy use, while countries characterized by low-economic growth countries tend to be unresponsive to energy price changes when they come to their level of renewable energy. (author)

Utility Green Pricing Programs: Design, Implementation, and Consumer Response

Energy Technology Data Exchange (ETDEWEB)

Bird, L.; Swezey, B.; Aabakken, J.

2004-02-01

The term green pricing refers to programs offered by utilities in traditionally regulated electricity markets, which allow customers to support the development of renewable energy sources by paying a small premium on their electric bills. Since the introduction of the concept in the United States, the number of unique utility green pricing programs has expanded from just a few programs in 1993 to more than 90 in 2002. About 10% of U.S. utilities offered a green pricing option to about 26 million consumers by the end of 2002. This report provides: (1) aggregate industry data on consumer response to utility programs, which indicate the collective impact of green pricing on renewable energy development nationally; and (2) market data that can be used by utilities as a benchmark for gauging the relative success of their green pricing programs. Specifically, the paper presents current data and trends in consumer response to green pricing, as measured by renewable energy sales, participants, participation rates, and new renewable energy capacity supported. It presents data on various aspects of program design and implementation, such as product pricing, ownership of supplies, retention rates, marketing costs, the effectiveness of marketing techniques, and methods of enrolling and providing value to customers.

Pricing Electric Power in the Czech Republic and in Selected Countries

Directory of Open Access Journals (Sweden)

Eva Mazegue Pavelková

2016-01-01

Full Text Available This paper focuses on state intervention in the pricing of electricity from renewable power sources in the Czech Republic when compared with the pricing in the Slovak Republic, Germany, France and Italy. In these countries the state intervention is implemented in different forms, but the critical part of the price is regulated everywhere by the state. The price of electricity is determined by its production costs, which depend on the source from which electricity is produced. The highest cost of electricity is required to generate renewable energy, particularly solar power, while the lowest costs of power are associated with its production by coal-fired and natural gas-fired thermal power plants. However, hydroelectric power plants attain clearly the lowest cost for generating electricity. State intervention includes supporting power generation from renewable power sources by guaranteeing purchase prices.

How Do Oil Prices, Macroeconomic Factors and Policies Affect the Market for Renewable Energy?:Oil Price, Macroeconomic Factors and Renewable Energy

OpenAIRE

Shah, Imran; Hiles, Carlie; Morley, Bruce

2017-01-01

The aim of this study is to determine the nature of any relationship between renewable energy investment, oil prices, GDP and the interest rate, using a time series approach. We concentrate on three countries with different relationships to the renewable energy industry, with Norway and the UK being oil-exporters for most of the sample and the USA an importer. Following estimation using a VAR model, the results provide evidence of considerable heterogeneity across the countries, with the USA ...

The world energy demand in 2007: How high oil prices impact the global energy demand? June 9, 2008

International Nuclear Information System (INIS)

2008-01-01

How high oil prices impact the global energy demand? The growth of energy demand continued to accelerate in 2007 despite soaring prices, to reach 2,8 % (+ 0,3 point compared to 2006). This evolution results from two diverging trends: a shrink in energy consumption in most of OECD countries, except North America, and a strong increase in emerging countries. Within the OECD, two contrasting trends can be reported, that compensate each other partially: the reduction of energy consumption in Japan (-0.8%) and in Europe (-1.2%), particularly significant in the EU-15 (-1.9%); the increase of energy consumption in North America (+2%). Globally, the OECD overall consumption continued to increase slightly (+0.5%), while electricity increased faster (2,1%) and fuels remained stable. Elsewhere, the strong energy demand growth remained very dynamic (+5% for the total demand, 8% for electricity only), driven by China (+7.3%). The world oil demand increased by 1% only, but the demand has focused even more on captive end usages, transports and petrochemistry. The world gasoline and diesel demand increased by around 5,7% in 2007, and represents 53% of the total oil products demand in 2007 (51% in 2006). If gasoline and diesel consumption remained quasi-stable within OECD countries, the growth has been extremely strong in the emerging countries, despite booming oil prices. There are mainly two factors explaining this evolution where both oil demand and oil prices increased: Weak elasticity-prices to the demand in transport and petrochemistry sectors Disconnection of domestic fuel prices in major emerging countries (China, India, Latin America) compared to world oil market prices Another striking point is that world crude oil and condensate production remained almost stable in 2007, hence the entire demand growth was supported by destocking. During the same period, the OPEC production decreased by 1%, mainly due to the production decrease in Saudi Arabia, that is probably more

Energy consumption, prices and economic growth in three SSA countries: A comparative study

International Nuclear Information System (INIS)

Odhiambo, Nicholas M.

2010-01-01

In this paper we examine the causal relationship between energy consumption and economic growth in three sub-Saharan African countries, namely South Africa, Kenya and Congo (DRC). We incorporate prices as an intermittent variable in a bivariate setting between energy consumption and economic growth-thereby creating a simple trivariate framework. Using the ARDL-bounds testing procedure, we find that the causality between energy consumption and economic growth varies significantly across the countries under study. The results show that for South Africa and Kenya there is a unidirectional causal flow from energy consumption to economic growth. However, for Congo (DRC) it is economic growth that drives energy consumption. These findings have important policy implications insofar as energy conservation policies are concerned. In the case of Congo (DRC), for example, the implementation of energy conservation policies may not significantly affect economic growth because the country's economy is not entirely energy dependent. However, for South Africa and Kenya there is a need for more energy supply augmentations in order to cope with the long-run energy demand. In the short-run, however, the two countries should explore more efficient and cost-effective sources of energy in order to address the energy dependency problem.