• Energy Research

Carbon pricing, technological supports, and energy subsidies comprise the most‐often implemented energy and climate policies. The cost of these policies has grown in recent years, resulting in equity impacts receiving greater attention by academics, policymakers, and the general public. While precise impacts are specific to particular circumstances, there are a number of primary channels through which energy and climate policies affect welfare. This paper gives an overview of how these channels operate. Where applicable, drivers of policy cost are outlined to show how these policies may grow to represent a meaningful welfare impact. Through case study analyses, we explain the most common mechanisms through which these policy costs drive equity outcomes. We review their implementation to date to give insight into the prevalence of these equity outcomes in an international context. Finally, we analyze the ability of remedial measures to counteract inequitable impacts. WIREs Energy Environ 2016, 5:492–509. doi: 10.1002/wene.201This article is categorized under: Energy Efficiency > Economics and Policy Energy Infrastructure > Economics and Policy Energy and Climate > Economics and Policy

Smart-metering allows electricity utilities to provide consumers with better information on their energy usage and to apply time-of-use pricing. These measures have been shown to reduce electricity consumption and induce time-shifting of demand. Less is known about how they affect residential energy efficiency investment behaviour. We use data from a randomised-controlled trial on a sample of almost 2500 Irish consumers, conducted over a 12-month period to investigate the effect of smart-metering and residential feedback on household investment behaviour. The results show that exposure to time-of-use pricing and information stimuli, while reducing overall and peak usage, can also have the unintended effect of reducing investment in energy efficiency measures within the home. Our findings indicate that households exposed to treatment were less likely to adopt any energy saving measure (23–28 % on average), and those households adopted less energy saving features than those in the control group (15–21 % on average). This result highlights the potential for behavioural interventions to have unintended consequences on behaviours other than those specifically targeted. Furthermore, it underlines the importance of examining a wider range of outcomes and allowing longer time-scales when evaluating this type of experiment.

This paper investigates the economic implications of disruptions of one to ninety days to the supply of natural gas in Ireland. We assess the impact of a hypothetical gas supply disruption in both winter and summer in 2008 (with observed market characteristics) and in 2020 (with projected market characteristics). The cost of a natural gas outage includes the cost of natural gas being unavailable for heating and other purposes in the industrial and commercial sectors, lost consumer surplus in the residential sector, the cost of lost electricity in all sectors and lost VAT on the sale of gas and electricity. Ireland generates much of its electricity from natural gas and the loss of this electricity accounts for the majority of the cost of a natural gas outage. Losing gas-fired electricity would cost 0.1-1.0 billion euro per day, depending on the time to the week, the time of year and rationing. Industry should be rationed before households to minimise economic losses, but current emergency protocols do the opposite. If gas-fired electricity is unavailable for three months, the economic loss could be up to 80 billion euro, about half of Gross Domestic Product. Losing gas for heating too would add up to approximately 8 billion euro in economic losses. We also discuss some options to increase Ireland's security of supply, and find that the cost is a small fraction of the avoided maximum damage. © 2012.

There is substantial evidence of links between green spaces and better health status. However, the ways in which green space are measured are varied, including both objective and subjective measures. This paper examines factors associated with individuals’ perceiving a lack of open public space, including the objective quantity of green space and wider problems in the area. This is analysed using a combination of principal component analysis and logistic regression. We use data from the Healthy Ireland Survey 2016, a cross sectional survey of over 7000 adults in Ireland. The results suggest that objective green space has a significant negative association with whether an individual perceives a problem with lack of open public space. The analysis also reveals that area safety, area cleanliness, and area service provision are important factors explaining perceived adequacy of open public space. The findings of this analysis have implications for the methods by which researchers and policymakers measure and analyse green space in an area.

Abstract This paper examines household energy use and appliance ownership in Ireland. Logit regression analyses on a large micro-dataset reveal how household characteristics can help explain the ownership of energy using appliances. Using OLS regression models, we explore the factors affecting residential energy demand conditional on appliance ownership. Results suggest that the methods of space and water heating employed by a household are even more important than electrical appliances in explaining domestic energy usage. However, the stock of appliances must be included in such models so that results will not be biased. The methods employed in this paper can be easily adopted for studies of household energy use in other countries where household expenditure survey data are available.

Globally, coal is still widely used for heating. However, there are concerns about its effect on ambient air quality and health. We estimated the effect of bans prohibiting the sale and use of so-called “smoky coal” on the prevalence of chronic lung disease in older people. Our identification strategy relied on the phased extension of smoky coal bans to Irish towns after 2010. We examined five waves of The Irish Longitudinal Study on Ageing (TILDA), a large nationally representative survey containing detailed information on health, housing, and socioeconomic status. Controlling for relevant factors, smoky coal bans reduced the probability that an older person reports being diagnosed with chronic lung disease by between three and five percentage points. In models where we estimated the effect of the ban on the incidence of new cases of chronic lung disease, rather than existing cases, we found the effect was between -0.96 and -2.5 percentage points. Our findings were robust to estimating the model using different sub-samples and control variables. Furthermore, to address potential endogeneity of the ban, we examined subsamples defined by whether participants lived in towns within a range of the population threshold at which the ban was imposed. Estimating our model using these subsamples showed a consistently negative effect of the ban. We also showed parallel trends in health outcomes before the treatment, and that the treatment did not affect attrition from the sample.

Smart meters, in conjunction with time-of-use (TOU) pricing, can facilitate an improvement in energy efficiency by providing consumers with enhanced information about electricity consumption and costs, and thereby encourage a shift away from consumption during peak hours. In 2009-10, the Irish Commission for Energy Regulation co-ordinated a randomised controlled trial in the Irish residential electricity market. Smart meters were introduced in approximately 5,000 households, divided into control and treatment groups, with treatment groups exposed to a variety of TOU tariffs and information stimuli. This paper analyses the response of Irish households at different times of the day to the introduction of TOU tariffs and information stimuli. We find that these measures have a significant effect in reducing electricity consumption in Ireland, particularly during peak hours. However, while households reduce peak demand significantly after the introduction of TOU tariffs and associated information, there is little incremental response to increasing differentials between peak and off-peak prices.