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Hydrogen is one of the alternative transport fuels expected to replace conventional oil based fuels. The paper finds that it is possible for non-fossil-based hydrogen to become the lowest cost fuel without favourable tax treatment. The order of per kilometre cost depends on performance in hydrogen production, the international oil price, and fuel taxes. At low oil prices, the highest per kilometre costs were found for non-fossil power-based hydrogen, the second highest for natural gas-based hydrogen, and the lowest for conventional fuels. At high oil prices, this ranking is reversed and non-fossil power-based hydrogen becomes the most cost competitive fuel. General fuel taxes lower the threshold at which the international oil price reverses this competitiveness order. The highest fuel tax rates applied in Europe lowers this threshold oil price considerably, whereas the lowest fuel taxes may be insufficient to make hydrogen competitive without tax favours. Alternative adjustments of the EU minimum fuel tax rates with a view to energy efficiency and CO2-emissions are discussed

Abstract The article examines the climate action plans (CAPs) of local governments (LGs) in Denmark. Applying a quantitative content analysis approach, all Danish LG action plans within the climate and energy field has been collected and coded, giving insight into the extent of LG CAPs. We assess the extent, targets and scope of LG CAPs and find that Danish LGs are highly involved in mitigation activities with a widespread CAP adoption and an overall high degree of sectoral coverage on base year accounts and action plans, albeit with some significant shortcomings. If current LG CAPs were to form the basis of a decentralised climate governance system, some improvements in target level and sectoral coverage should be implemented. The utilization of regional supporting structures facilitating a gradual improvement seems especially promising. In addition the research points to the significant mitigation potential of considering the full spectrum of local government actors, not simply the pioneers and how local CAPs outside urban pioneers require additional local policy framing to succeed. Focusing on the mutual benefits for national and local actors of an integrated planning system, and the multiple benefits locally, will be key in motivating further action.

This paper explores the geographical and policy context for an emergent business model from Better Place to deliver battery electric car mobility in Denmark. It argues that the combination of radically different technologies and a highly complex multi-agency operating environment theoretically provide the conditions and requirements for such an emergent business model. While focused on battery electric cars, renewable energy generation and smart grids, the paper has wider applicability to an understanding of the interplay between place, innovation and sustainability which suggests that diverse solutions are likely to be the characteristic solution rather than ubiquity and standardization. The paper argues, however, that the innovative business model, the deployment of electric vehicles, and the use of renewable energy systems, in this case largely based on wind power, while mutually supportive and contributing to wider policy aims with respect to the reduction of carbon emissions, may still fail in the face of entrenched practices. At the theoretical level it is concluded that theorization of business models needs a broader perspective beyond the typical ‘value creation, value capture’ rubric to better understand the wider role such models have in meeting societal goals, and to understand the structural impediments to organizational and technical innovation.

Abstract The Chinese grid-connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence. The scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other. By comparing three historically distinct phases of wind energy in China it is shown how policy reforms have changed largely from a state of “fragmented authoritarianism” towards policy coordination. In the initial phase (1986–1993), wind energy was expanding very slowly with disjointed policy making and in the incremental phase (1994–1999), the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output. The latest coordinated phase (2000–2006), however, developed a coherent renewable energy agenda and policy regime for the wind power sector. It is found that this phase with coordinated market regulations and incentives has helped give birth to a take-off in Chinese wind energy installations and substantial cost reductions, although the latter is threatening the profitability of wind farms. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should continue, and improve, the coordination of regulations and incentives.

Abstract In this paper, we set out to investigate the price and quantity fluctuations in Western Denmark, which took place during the winter season 2002–2003. It was a period, which exhibited critical supply conditions in the Nordic area due to a shortage of hydropower. On average, the market in Western Denmark helped to ease the situation by large net exports. However, a more detailed investigation reveals anomalies in market behaviour that do not fit well into this overall positive description of the situation. Several explanations of the anomalies are offered. These may work separately or act in concert. In particular, we look at: the exercise of market power and gaming of the dominant power generator; the role of the large capacity of volatile wind power; the role of the guaranteed fixed prices and the design and functioning of the special auction system of transmission capacity in the interface between Western Denmark and Germany.

Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices.

Abstract Global climate warming mitigation efforts are more likely to be successful if they are based on per-capita emissions rather than on complex negotiated emission rights. I propose a path to temperature stabilisation optimised for each country and reaching a common per-capita rate of greenhouse gas emissions by the end of the 21st century. Consistent emission pathways for given levels of temperature stabilisation are calculated by use of a simple model that is consistent with the circulation models and data sets surveyed by the Intergovernmental Panel on Climate Change. The allowable emissions are detailed on a regional level and on individual country level. I discuss the merits of this type of approach relative to other policy approaches, as well as some of the objections that may be voiced.

Liberalisation of the electricity market has taken place in most European countries within the last decade. It is considered a precondition of successful liberalisation to establish so-called independent regulatory authorities. In this article, we compare the status and practice of them in 16 European countries, and discuss the relationship between the organisation of the regulation and the market outcome.

Abstract A high degree of coverage of electricity demand by wind energy conversion is possible only with access to energy storage. For regions with both hydro and wind resources, the hydro power system and the wind power system may complement each other and alleviate the need for any other energy storage. Scandinavia is such a region, and this article uses a simulation model to assess the conditions under which all the electricity needs of Norway and Denmark could be satisfied by a combination of the existing Norwegian hydro power system with a hypothetical all wind-based Danish power system.