• Energy Research
• 2021-2025close
• Energy Policy close

Abstract To solve the different environmental problems caused by the over-use of fossil fuels, multiple environmental policies currently coexist. How these environmental policies interact with each other and how to optimise them are a few issues that need to be resolved urgently in practice. We established an environmental dynamic stochastic general equilibrium model (E-DSGE) to analyse the dynamic interactive effects of the SO2 emission tax and CO2 emission trading in China and the optimal design of these two environmental policies. We have calibrated the model based on China's actual data. The results indicate that synergistic emission reduction effects have led to an overlap between the two policies, because both SO2 and CO2 emissions share a common root—fossil fuels. Currently there is no obvious conflict between them. When the SO2 emission tax is levied at 12.6 CNY/kg, the CO2 emission cap should be lower than 76.1%. Second, the synergistic emission reduction effect between CO2 emission trading and the SO2 emission tax can enhance the automatic stabilisation function of both. Third, we suggest to optimise both policies pro-cyclically. However, if either of these two policies is ineffective, the optimal SO2 emission tax will be counter-rather than pro-cyclical.

Developing effective policy solutions to transition away from the use of solid fuels for residential heating purposes can be hindered by the lack of reliable data on its use. One such issue is the extent of informal solid fuel use, that is, consumption from sources outside of formal commercial channels. This is an area which has been largely ignored in previous empirical research. Using a survey of residential solid fuel users, the extent of solid fuel use in the residential sector in Ireland from informal sources for two fuels, sod peat and wood, is quantified. Sod peat is found to be almost exclusively sourced informally while just over half of wood use is estimated to be sourced by households in this way. Factors including location, household income, being a primary user of the fuel and having strong cost motivations all effect the probability of sourcing solid fuels informally relative to formal sources. The sizeable extent to which informal sources of solid fuels are used in Ireland arising from the analysis in this paper, highlights the potential for substitution to this unregulated alternative. This should be carefully monitored for effective implementation of new and existing solid fuel regulations.

The energy transition process that is being driven by the decentralization and electrification of energy systems impacts significantly on electricity distribution grids. The fast-evolving technical and policy landscape prompts distribution system operators (DSOs) to modernize their operational strategies. This underscores the critical significance of digitalization investments, particularly in optimizing grid performance, managing renewable energy integration, and meeting evolving consumer demands. Despite the expected gains from digital technologies, their deployment in power distribution grids remains limited and partial. This study comprehensively examines the barriers hindering the digitalization of distribution grids, including the technical, organizational, regulatory, economic and human factors. By combining insights from existing literature with interviews with European DSO representatives, we have ranked the barriers by order of significance and identified those that need priority action. We ultimately provide policy guidance with practical recommendations and associated measures to overcome them. The outcomes of our joint analysis inform DSOs, policy-makers and field experts, and serve to formulate detailed policy recommendations to accelerate digitalization.