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Abstract China's electricity sector faces the challenge of managing cost increases, improving reliability, and reducing its environmental footprint even as operating conditions become more complex due to increasing renewable penetration, growing peak demand, and falling system load factors. Addressing these challenges will require changes in how power generation is planned, priced, and dispatched in China. This is especially true for natural gas generation, which is likely to play an important role in power systems worldwide as a flexible generation resource. Although natural gas is commonly perceived to be economically uncompetitive with coal in China, these perceptions are based on analysis that fails to account for the different roles that natural gas generation plays in power systems—baseload, load following, and peaking generation. Our analysis shows that natural gas generation is already cost-effective for meeting peak demand in China, resulting in improved capacity factors and heat rates for coal-fired generators and lower system costs. We find that the largest barrier to using natural gas for peaking generation in China is generation pricing, which could be addressed through modest reforms to support low capacity factor generation.

Abstract Fostering the global development of low-carbon technology is crucial to mitigating greenhouse gas emissions. This paper analyzes the effect of energy-efficiency policies on lighting patenting between 1992 and 2007, using data for 19 OECD countries. We examine levels of energy-efficiency RDD however, the technology-push policy does not. These findings suggest that demand-pull policies can help to transform international markets for low-carbon technology innovation, and they underscore the importance of the often-overlooked international dimension of domestic energy-efficiency policies. To the extent that our findings are generalizable, our research suggests that governance processes that strengthen energy performance standards and steady investment in RD&D could spur energy innovation in industrialized nations across the world.

Regulatory inspection and violation reports provide insight into the impact of natural gas extraction on the surrounding environment, human health, and public safety. Inspection reports for natural gas wells in Pennsylvania were collected from the Pennsylvania DEP Compliance Report from 2000 to 2014. Analysis of 215,444 inspection records for 70,043 conventional and unconventional wells was conducted in order to compare the odds of violations occurring under different circumstances. Logistic regression models were used to estimate the probability of violations occurring for both conventional and unconventional wells. When inspected, conventional wells had 40% higher odds of having a violation. However, unconventional wells had higher odds for environmental violations related to waste discharge as well as cementing and casing failures. Large operators had 40% lower odds of having any violation than smaller operators. While larger operators had fewer violations, a few of the largest companies had rates of violation much higher than the average for all operators, with some reaching violation rates as high as 1 in 4 active wells. A well also has a higher chance of being in violation if it is in the first year (85%) or second year (109%) since its spud date.

Abstract In this paper we analyze the economic impact of a decision to produce ethanol in Mexico, comparing the effect of a subsidy to initiate ethanol production with that of alternative public policies. Public support of biofuels has been a public policy goal since 2008, and the promotion of ethanol remains an active part of the government agenda. The evidence used to encourage or alter the policy is (by necessity) chiefly based on international experience. In this study we use a computable general equilibrium model (CGE) to estimate the impact of ethanol production on the Mexican economy. Using cost data from Brazil we introduce ethanol into a Mexican social accounting matrix, and insert a latent sector into the model to analyze ethanol promotion. Our results show that subsidies to ethanol would increase agriculture production but at the expense of aggregate welfare. By contrast, alternative "clean energy" policies appear to advance economic growth to a greater extent.

Abstract Utility conservation programmes are designed to benefit both participants and non-participants. This article outlines the issues involved in designing conservation programmes for utilities and determining the appropriate amount of incentives that can be provided to participants without harming non-participants. More importantly, the article discusses the issue of access to the programmes by utility customers. It concludes that it is the existing restrictions to participation, and not the level of compensation, that are of greatest concern to non-participants. A number of utility programmes designed to eliminate the problem of non-participation are reviewed.

Abstract States, regions, and municipalities have a growing importance in innovating policies to promote renewable sources of energy. This article examines the contribution of three state governments in developing and deploying wind and solar energy technologies in Brazil. The Brazilian electricity sector represents an interesting case of a middle-income country that is distinguished by strong federal involvement in energy governance and a reliance on hydroelectric power, followed by natural gas and coal. Using interviews conducted with policymakers and energy professionals, we find that regional energy transitions emerge as part of a process where state-level actors frame renewable energy choices primarily in terms of economic development opportunities and improving energy security. The engagement of regional institutions and organizations with energy priorities further influences the development of renewable technologies. The main policy implication is that state governments can have a strong role in the learning and niche formation of renewable alternatives that have been given less priority at the national level. This paper concludes that future policies should investigate how to scale up state renewable energy programs and initiatives.

The benefits of using a combined cooling, heating, and power system with dual power generation units (D-CCHP) is examined in nine different U.S. locations. One power generation unit (PGU) is operated at base load while the other is operated following the electric load. The waste heat from both PGUs is used for heating and for cooling via an absorption chiller. The D-CCHP configuration is studied for a restaurant benchmark building, and its performance is quantified in terms of operational cost, primary energy consumption (PEC), and carbon dioxide emissions (CDE). Cost spark spread, PEC spark spread, and CDE spark spread are examined as performance indicators for the D-CCHP system. D-CCHP system performance correlates well with spark spreads, with higher spark spreads signifying greater savings through implementation of a D-CCHP system. A new parameter, thermal difference, is introduced to investigate the relative performance of a D-CCHP system compared to a dual PGU combined heat and power system (D-CHP). Thermal difference, together with spark spread, can explain the variation in savings of a D-CCHP system over a D-CHP system for each location. The effect of carbon credits on operational cost savings with respect to the reference case is shown for selected locations.

Abstract This paper addresses the cost effectiveness of renewable energy technologies in achieving low abatement costs and promoting sustainable developments under the Clean Development Mechanism (CDM). According to the results of our optimal energy option's analysis, at project scale, compared with a diesel-only energy option, photovoltaic (PV)–diesel (PVDB), wind–diesel (WDB) and PV—wind–diesel (PVWDB) hybrids are very cost-effective energy options. Moreover, energy options with high levels of renewable energy, including 100% renewables, have the lowest net present cost and they are already cost effective without CDM. On the other hand, while the removal of about 87% carbon dioxide emissions could be achieved at negative cost, initial investment could increase by a factor of 40, which is one of the primary barriers hindering wider renewable energy applications in developing countries, among others. Thus, in order to increase developing countries’ participation in the carbon market, CDM policy should shift from a purely market-oriented approach to investigating how to facilitate renewable energy projects through barrier removal. Thus, we recommend that further research should focus on how to efficiently remove renewable energy implementation barriers as a means to improve developing countries’ participation in meaningful emission reduction while at the same time meeting the needs of sustainable economic development.

Abstract South Korea initiated an emissions trading scheme (ETS) on January 1, 2015. Based on this environmental policy, at the 21st Conference of Parties (COP) meeting, the Korean government announced that it would decrease carbon emissions 37% from business as usual (BAU) levels by 2030. Since this target is too ambitious for the Korean economy, a number of studies have analyzed the economic impacts of emissions trading in Korea, but few have distinguished between industries covered and not covered by the ETS, notwithstanding the lack of industry-level data on quotas and emissions. This study overcomes such shortcomings by converting a dataset of 525 firms covered by the South Korea ETS (SK-ETS) into a 28-sector database consistent with the Global Trade Analysis Project (GTAP) classifications. We implement a simulation of the SK-ETS with a computational general equilibrium (CGE) model. Simulation results suggest that while SK-ETS has significant abatement effects (−2.56% from the base case), it only has mild negative impacts on GDP (0.41%) and household consumption (0.11%). Industry output on average falls by 0.54%, with the gas and air transport sectors most adversely affected. The most noticeable price changes are from the electricity sector, whose output price goes up by 3.75%. It is noteworthy that because of the export-oriented economy, many global business leaders and politicians have argued that the ETS will disadvantage exporting companies, while the simulation results showed a higher trade surplus based on enhanced competitiveness.