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Abstract Given the need to reduce the CO2 emissions coming from the manufacturing sector, it is important, for planning purposes, to know which countries and which manufacturing sub-sectors have the greatest potential for reducing energy use. Using data from the International Atomic Energy Agency and the United Nations Industrial Development Organization, the authors estimate trends in global decoupling of energy use and manufacturing value added, compare energy-use intensity in six country groups and estimate the potential for reducing energy use and CO2 emissions under two scenarios and compare selected sub-sector energy intensity and estimate the potential for reducing energy use CO2 emissions. The comparison of energy intensities across country groups and among countries suggests that there still remains significant potential to reduce energy use and associated CO2 emissions. The analysis of four sub-sectors in developing and transition economies also shows similar but varied potential for reducing energy use and associated CO2 emissions.

Abstract This paper provides a forecast of electricity consumption in Cyprus up to the year 2030, based on econometric analysis of energy use as a function of macroeconomic variables, prices and weather conditions. If past trends continue electricity use is expected to triple in the coming 20–25 years, with the residential and commercial sectors increasing their already high shares in total consumption. Besides this reference scenario it was attempted to assess the impact of climate change on electricity use. According to official projections, the average temperature in the Eastern Mediterranean is expected to rise by about 1 °C by the year 2030. Using our econometrically estimated model, we calculated that electricity consumption in Cyprus may be about 2.9% higher in 2030 than in the reference scenario. This might lead to a welfare loss of 15 million Euros in 2020 and 45 million Euros in 2030; for the entire period 2008–2030 the present value of costs may exceed 200 million Euros (all expressed in constant Euros of 2007). Moreover, we assessed the additional peak electricity load requirements in the future because of climate change: extra load may amount to 65–75 Megawatts (MW) in the year 2020 and 85–95 MW in 2030.

Abstract The study presents recent developments in the Turkish power market and introduces an Analytic Hierarchy Process model to evaluate and compare the relative overall attractiveness of power plant options for Turkey. The developed model incorporates technical characteristics, resource availability, socio-economic, environmental, cost, political, legal and organisational aspects, for evaluating and prioritising power plant types (biomass, coal, geothermal, hydro, natural gas, nuclear, petroleum, solar and wind). The study incorporates perspectives of different experts that represent various stakeholders of the Turkish power sector. The study reveals that supply reliability, investment costs and contribution to national economy are perceived as most important factors, whereas waste disposal and decommissioning costs are perceived as least important factors. Considering the overall weights, the most attractive power plant types for the Turkish power market are coal, hydro and natural gas power plants. The study indicates that Turkey should drastically decrease the installed capacity share of traditionally dominant power plants (to 58% from 89% in 2016) and fossil fuel power plants (to 40% from 56% in 2016), and increase the share of renewable power plants (to 52% from 44% in 2016), indigenous resource based power plants (to 67% from 56% in 2016) and nuclear power plants.

Abstract Long time series of the IEA and international patent offices offer a huge potential for scientific investigations of the energy innovation process. Thus, this paper deals with a broad literature review on innovation drivers and barriers, and an analysis of the knowledge induced by public research and development expenditures (R&D) and patents in the energy sector. The cumulative knowledge stock induced by public R&D expenditures in 14 investigated IEA-countries is 102.3 bn EUR in 2013. Nuclear energy has the largest share of 43.9 bn EUR, followed by energy efficiency accounting for 14.9 bn EUR, fossil fuels with 13.5 bn EUR, and renewable energy with 12.1 bn EUR. A regression analysis indicates a linear relation between the GDP and the cumulative knowledge, with each billion EUR of GDP leading to an additional knowledge of 3.1 mil EUR. However, linearity is not given for single energy technologies. Further, the results show that appropriate public R&D funding for research and development associated with a subsequent promotion of the market diffusion of a niche technology may lead to a breakthrough of the respective technology.

Abstract The study uses the two-stage bias-corrected DEA approach of Simar and Wilson (2007) to assess the efficiency of the EU countries in terms of their wind power investment in 2015. The set of input variables includes installed wind power capacity and average wind power density, while output variables include wind-generated electricity and three additional aspects: environmental, economic and energy security. Next, the study examines the effect of renewable energy policy regarding wind energy, the energy mix, and the offshore wind power utilisation on the wind power efficiency of the analysed countries. The results obtained reveal that the United Kingdom, Sweden, Denmark, and Ireland are the most efficient countries in terms of wind power investment. The inclusion of additional aspects demonstrates the greatest improvement of efficiency in Belgium, Cyprus, the Netherlands, Estonia and Germany. The results seem to indicate that economic instruments used within renewable energy policy have a positive effect on wind power efficiency, while policy support and regulatory instruments might negatively impact. Moreover, the results show that the energy mix explains the variation of the efficiency of the EU countries when their economic and environmental aspects are considered. The analysis of the geographic location indicates that countries with a high share of offshore wind capacity are the most efficient.

This paper presents a methodical framework, which is the basis for the economic analysis of the mid-term planning of development of the Polish energy system. The description of the partial equilibrium model and its results are demonstrated for different scenarios applied. The model predicts the generation, investment and pricing of mid-term decisions that refer to the Polish electricity and heat markets. The current structure of the Polish energy sector is characterised by interactions between the supply and demand sides of the energy sector. The supply side regards possibilities to deliver fuels from domestic and import sources and their conversion through transformation processes. Public power plants, public CHP plants, industry CHP plants and municipal heat plants represent the main producers of energy in Poland. Demand is characterised by the major energy consumers, i.e. industry and construction, transport, agriculture, trade and services, individual consumers and export. The relationships between the domestic electricity and heat markets are modelled taking into account external costs estimates. The volume and structure of energy production, electricity and heat prices, emissions, external costs and social welfare of different scenarios are presented. Results of the model demonstrate that the internalisation of external costs through the increase in energy prices implies significant improvement in social welfare.

The residential sector was the focus of most of the energy policies in International Energy Agency (IEA) countries after the oil price shocks of the 1970s. In order to assess the impact of these policies, it is important to construct and establish a set of key, internationally accepted, energy efficiency indicators for use in cross-country comparisons. This paper focuses on the methodological issues rather than comprehensive applications of cross-country comparisons. The major conclusions are as follows: 1. (1) end uses can be identified with reasonable reliability; 2. (2) in principle, the energy and CO2 indicators necessary for policy assessment can be identified and derived; 3. (3) the key factors for both normalization (climate) and comparison are understood; 4. (4) the development of more disaggregated structural indicators is the key to gaining a better understanding of the evolution of the demand of energy services; 5. (5) a better measurement of the impact of life-styles is necessary for meaningful cross-country comparisons.

Do consumers value the fuel economy of cars? In this paper we examine this question, taking advantage of the recent introduction of hybrid and battery-electric vehicles, which promise to reduce the use of fossil fuels in road transport, and hence carbon emissions and dependence on oil imports. The price of these vehicles may however create hurdles to their widespread adoption. Automakers claim that these technologies come with higher production costs. Consumers should be willing to pay a price differential for these cars just equal to the savings in fuel costs—unless their utility depends on considerations beyond car quality, performance and fuel economy. We specifically ask three related questions. First, do consumers value fuel economy, even among all-electric and hybrids? Second, do the prices of electric vehicles reflect the so-called “range anxiety”? Third, is there evidence of an all-electric or hybrid “premium” above and beyond the savings in fuel costs made possible by these cars over their conventional counterparts? We answer these questions using detailed data on new cars sold in eight European Union countries from January 2011 to September 2017, combined with gasoline, diesel and electricity prices and taxation information. Using hedonic pricing regressions and careful sample design, we find that, all else the same, more fuel-efficient variants of the same cars do cost more, but either the fuel economy is undercapitalized, or consumers and automakers are assuming a payback period of 2.5-4.6 years. We also find evidence of large all-electric and plug-in hybrid premiums above and beyond the savings in fuel costs, while regular hybrids cars carry a modest premium—one that is comparable to that of diesel cars or other types of technologies. Individuals who purchase all-electric or plug-in hybrids may be motivated by other considerations in addition to fuel costs, or automakers may be setting prices to take advantage of government incentives. We find no evidence that the prices of all-electric cars reflect their battery range.