• Energy Research
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In the UK electricity market, generators are obliged to produce part of their electricity with renewable energy resources in accordance with the Renewable Obligation Order. Since 2009 technology banding has been added, meaning that different technologies are rewarded with a different number of certificates. We analyze these two different renewable obligation policies in a mathematical representation of an electricity market with random availabilities of renewable generation outputs and random electricity demand. We also present another, alternative, banding policy. We provide revenue adequate pricing schemes for the three obligation policies. We carry out a simulation study via sampling. A key finding is that the UK banding policy cannot guarantee that the original obligation target is met, hence potentially resulting in more pollution. Our alternative provides a way to make sure that the target is met while supporting less established technologies, but it comes with a significantly higher consumer price. Furthermore, as an undesirable side effect, we observe that a cost reduction in a technology with a high banding (namely offshore wind) leads to more CO2 emissions under the UK banding policy and to higher consumer prices under the alternative banding policy.

Abstract Wood use for residential space heating has become an important topic of study in the US Pacific northwest. This article presents wood use profiles, estimates on the amount of electricity (kWh) wood use displaces and reasons that house-holds use wood. The data indicate that many households can easily switch between wood and electricity for space heating. One conclusion is that utilities in this region should be cognizant of large possible swings in electricity demand resulting from changes in electricity prices and availability of wood. In general, wood use has the potential to complicate regional energy planning efforts to fashion cost-effective residential conservation programmes.

The global warming debate has neglected and thus underestimated the importance of technical change in considering reduction in greenhouse gases and adaptation to climate change. Relevant quantitative cases of long-run technical change during the past 100 years are presented in computing, communications, transport, energy, and agriculture. A noteworthy technological trajectory is that of decarbonization, or decreasing carbon intensity of primary energy. If human societies have not yet reached the end of the history of technology, the cost structure for mitigation and adaptation changes could be cheap.

Abstract Among natural gas producing nations, there has been some concern about how the Asia Pacific will meet future demand for energy. We argue that natural gas, both regional and global, will play a vital role. Estimates of potential gas consumption in the region are analyzed and used to develop consensus projections to 2030. These consumption profiles are compared with gas supply estimates including indigenous, pipeline and LNG for the Asia Pacific market. From this analytical framework, we find that demand will be sufficiently large to accommodate supplies from diverse sources including North America, the Middle East, Central Asia, Russia, and the Asia Pacific itself. An important policy implication is that gas producing and consuming nations should benefit from promoting gas trade and not be concerned about a situation of potential lack of demand coupled with oversupply.

Abstract The United States (US) Environmental Protection Agency's (EPA) Greenhouse Gas (GHG) Mandatory Reporting Program (GHGRP) is designed to collect accurate and timely facility-level emissions data that might be used by policy makers to support sound climate policy decisions in the future. After reviewing the US Inventory and the expected improvements under GHGRP, we find that the benefits of GHGRP are minimal and quite possibly zero while the cost of implementation is relatively high, that the stated goal of reducing emissions uncertainty is not met by the program in its current form, and that the additional emissions data to be collected is likely not needed given the ongoing non-committal environment of US GHG regulation. Our review also highlights the need for EPA to make its US Inventory GHG models accessible to the public, which would enable a more thorough review of its assumptions and methods by the broader scientific community.

How to set policy in the presence of uncertainty has been central in debates over climate policy. Concern about costs has motivated the proposal for a cap-and-trade program for carbon dioxide, with a "safety valve" that would mitigate against spikes in the cost of emission reductions by introducing additional emission allowances into the market when marginal costs rise above the specified allowance price level. We find two significant problems, both stemming from the asymmetry of an instrument that mitigates only against a price increase. One is that most important examples of price volatility in cap-and-trade programs have occurred not when prices spiked, but instead when allowance prices collapsed. Second, a single-sided safety valve may have unintended consequences for investment. We illustrate that a symmetric safety valve provides environmental and welfare improvements relative to the conventional one-sided approach.

The recent push to develop unconventional sources of oil and gas both in the U.S. and abroad via hydraulic fracturing (“fracking”) has generated a great deal of controversy. Effectively engaging stakeholders and setting appropriate policies requires insights into current public perceptions of this issue. Using a nationally representative U.S. sample (N¼1061), we examine public perceptions of hydraulic fracturing including: “top of mind” associations; familiarity with the issue; levels of support/ opposition; and predictors of such judgments. Similar to findings on other emerging technologies, our results suggest limited familiarity with the process and its potential impacts and considerable uncertainty about whether to support it. Multiple regression analysis (r 2 ¼ .49) finds that women, those holding egalitarian worldviews, those who read newspapers more than once a week, those more familiar with hydraulic fracturing, and those who associate the process with environmental impacts are more likely to oppose fracking. In contrast, people more likely to support fracking tend to be older, hold a bachelor's degree or higher, politically conservative, watch TV news more than once a week, and associate the process with positive economic or energy supply outcomes. Based on these findings, we discuss recommendations for future research, risk communication, and energy policy.

Abstract Data on European residential space cooling demands are scarce and often of poor quality. This can be concluded from a review of the Comprehensive Assessments on the energy efficiency potential in the heating and cooling sector performed by European Union Member States under Art. 14 of the Energy Efficiency Directive. This article estimates the potential space cooling demands in the residential sector of the EU and the resulting impact on electricity generation and supply systems using the United States as a proxy. A georeferenced approach was used to establish the potential residential space cooling demand in NUTS-3 regions of EU. The total potential space cooling demand of the EU was estimated to be 292 TW h for the residential sector in an average year. The additional electrical capacity needed was estimated to 79 GW. With proper energy system development strategies, e.g. matching capacity of solar PV with cooling demand, or introduction of district cooling, the stresses on electricity system from increasing cooling demand can be mitigated. The estimated potential of space cooling demand, identified in this paper for all EU Members States, could be used while preparing the next iteration of EU MS Comprehensive Assessments or other energy related studies.