• Energy Research
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This paper analyzes the co-movements of prices of fossil fuels, energy stock markets and EU allowances. This analysis is conducted in order to identify the spillover effect of volatility and correlation among these financial markets, and to provide a scientific basis that shows the interest of incorporating sustainable assets in the design of minimum risk strategies of investment. To achieve this goal, we have used a Vector Autoregressive-Dynamic Conditional Correlation-Generalized Autoregressive Conditional Heteroscedasticity (VAR-DCC-GARCH) model that also incorporates a stock index of industrial companies as a leading indicator of the level of economic activity. In addition, the paper conducts an impulse response analysis to determine how unexpected shocks to prices are propagated along time, and, in particular, how they affect prices of the others, both in mean, variance and correlation. Therefore, the results of this one- and two-dimensional analysis allow for the study of short and long run dynamics of the relationship among those prices, thus, providing greater meaning and information for investors, which has implications for building their portfolios. The analyzed period was from January 2010 to February 2021, so that the data include half of phase II, full phase III and the onset of phase IV of the EU ETS, as well as the COVID-19 outbreak in the European context. We also analyzed whether the EUA price impulses the demand of clean energy stocks, which has important implications for the objective of triggering the investment in clean energy. Our results show the transmission mechanism of all of those prices, which are relevant not only for investors but also for policymakers to construct an early-warning system, revealing the most important transmission channels. Moreover, from an investment viewpoint, we observe a decline in dirty energies and a rise in the clean energy market, which might be an indication of the progress towards the energy transition to renewables sources within a circular economy perspective. Therefore, this shows that the EU ETS is achieving its goals, and that clean energy companies, aligned with their role towards socially responsible initiatives, are also gaining acceptance in terms of investments, which would be beneficial for the environment.

The outbreak of SARS-COV-2 disease 2019 (COVID-19) abruptly changed the patterns in electricity consumption, challenging the system operations of forecasting and balancing supply and demand. This is due to the mitigation measures that include lockdown and Work from Home (WFH), which decreased the aggregated demand and remarkably altered its profile. Here, we characterise these changes with various quantitative markers and compare it with pre-COVID-19 business-as-usual data using Great Britain (GB) as a case study. The ripple effects on the generation portfolio, system frequency, forecasting accuracy and imbalance pricing are also analysed. An energy data extraction and pre-processing pipeline that can be used in a variety of similar studies is also presented. Analysis of the GB demand data during the March 2020 lockdown indicates that a shift to WFH will result to a net benefit for flexible stakeholders, such as consumer on variable tariffs. Furthermore, the analysis illustrates a need for faster and more frequent balancing actions, as a result of the increased share of renewable energy in the generation mix. This new equilibrium of energy demand and supply will require a redesign of the existing balancing mechanisms as well as the longer-term power system planning strategies.

Transit-Oriented Development (TOD) is advocated for achieving sustainable transportation through development around transit stations. TOD’s global implementation revealed varied outcomes, with many cities failing to achieve the intended objectives. TOD implementation in the Jakarta Metropolitan area still in its infancy. Through a geospatial information system and a survey of 400 commuters who live inside the 1 km radius of planned TOD, this longitudinal study aimed to examine an eight-year lapse between 2013 and 2020 of changes in two aspects, specifically land-use and spatial distribution as well as commuters’ travel behavior and preferences in TOD implementation and travel changes due to the COVID-19 pandemic. Key findings are as follows: increased diversity in the residential function around planned TOD areas in the Jakarta capital and a decrease in the suburbs, reflecting the commuters’ improved readiness to reside in planned TOD areas. Furthermore, kinship relations were the commuters’ main reason when selecting house locations, with no capacity to change their workplaces. A significant increase in public facilities at the expense of green open space (GOS) indicates that TOD implementation was conducted by the government with the sole authority to manage GOS, lacking private sector involvement. The cost factor was the most dominant reason for the commuter’s use of public transportation, instead of new transport modes such as MRT and LRT. Moreover, the commuter’s travel behavior in all studied transit stations, whilst it showed evidence of changes in time and frequency, was not greatly influenced by the COVID-19 related restrictions.

Abstract We exploit changes in air quality seen during the COVID-19 lockdown over China to show how a cleaner atmosphere has notable co-benefits for solar concentrator photovoltaic energy generation. We use satellite observations and analyses of the atmospheric state to simulate surface broadband and spectrally resolved direct normal irradiance (DNI). Over Wuhan, the first city placed under lockdown, we show how the atmospheric changes not only lead to a 19.8% increase in broadband DNI but also induce a significant blue-shift in the DNI spectrum. Feeding these changes into a solar cell simulator results in a 29.7% increase in the power output for a typical triple-junction photovoltaic cell, with around one-third of the increase arising from enhanced cell efficiency due to improved spectral matching. Our estimates imply that these increases in power and cell efficiency would have been realised over many parts of China during the lockdown period. This study thus demonstrates how a cleaner atmosphere may enable more efficient large scale solar energy generation. We conclude by setting our results in the context of future climate change mitigation and air pollution policies.

We assess the effect of the COVID-19 pandemic on global fossil fuel consumption and CO2 emissions over the two-year horizon 2020Q1-2021Q4. We apply a global vector autoregressive (GVAR) model, which captures complex spatial-temporal interdependencies across countries associated with the international propagation of economic impact due to the virus spread. The model makes use of a unique quarterly data set of coal, natural gas, and oil consumption, output, exchange rates and equity prices, including global fossil fuel prices for 32 major CO2 emitting countries spanning the period 1984Q1-2019Q4. We produce forecasts of coal, natural gas and oil consumption, conditional on GDP growth scenarios based on alternative IMF World Economic Outlook forecasts that were made before and after the outbreak. We also simulate the effect of a relative price change in fossil fuels, due to global scale carbon pricing, on consumption and output. Our results predict fossil fuel consumption and CO2 emissions to return to their pre-crisis levels, and even exceed them, within the two-year horizon despite the large reductions in the first quarter following the outbreak. Our forecasts anticipate more robust growth for emerging than for advanced economies. The model predicts recovery to the pre-crisis levels even if another wave of pandemic occurs within a year. Our counterfactual carbon pricing scenario indicates that an increase in coal prices is expected to have a smaller impact on GDP than on fossil fuel consumption. Thus, the COVID-19 pandemic would not provide countries with a strong reason to delay climate change mitigation efforts.

Abstract Fossil fuel and aerosol emissions have played important roles on climate over the Indian subcontinent over the last century. As the world transitions toward decarbonization in the next few decades, emissions pathways could have major impacts on India’s climate and people. Pathways for future emissions are highly uncertain, particularly at present as countries recover from COVID-19. This paper explores a multimodel ensemble of Earth system models leveraging potential global emissions pathways following COVID-19 and the consequences for India’s summertime (June–July–August–September) climate in the near- and long-term. We investigate specifically scenarios which envisage a fossil-based recovery, a strong renewable-based recovery and a moderate scenario in between the two. We find that near-term climate changes are dominated by natural climate variability, and thus likely independent of the emissions pathway. By 2050, pathway-induced spatial patterns in the seasonally-aggregated precipitation become clearer with a slight drying in the fossil-based scenario and wetting in the strong renewable scenario. Additionally, extreme temperature and precipitation events in India are expected to increase in magnitude and frequency regardless of the emissions scenario, though the spatial patterns of these changes as well as the extent of the change are pathway dependent. This study provides an important discussion on the impacts of emissions recover pathways following COVID-19 on India, a nation which is likely to be particularly susceptible to climate change over the coming decades.

ACS has made all coronavirus-related research published in our 60+ portfolio of journals open access and free-to-read since learning of the novel coronavirus outbreak. The most effective way to access this research is through this virtual issue, which is being updated regularly as new articles are published. Additionally, ACS has made all COVID-19 related research published in ACS journals freely and immediately available in the National Institutes of Health PubMed and World Health Organization (WHO) databases. Full paper is free for download at: https://doi.org/10.1021/acsenergylett.0c01304