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Abstract In this paper, we analyze the rationale for an energy policy mix when the European Emissions Trading Scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes (1) efficient policy design and (2) climate protection as the single objective of policy intervention. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies (1) contributes to a more effective ETS-design and (2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix.

Abstract The increasing share of renewables in the electricity system results in congestion on all network levels. To address this congestion, the EU Commission proposed that distribution network operators become responsible for local congestion management. Within this paper we analyze the institutional implications of the introduction of local congestion markets (also referred to as flexibility markets) and identify three discrimination concerns related to the DSO's role on these markets. We will argue that the standard governance models (legal unbundling, ownership unbundling, IDSO) do either not sufficiently address the identified discrimination concerns, or come with additional challenges which make their application less feasible. Instead, we discuss two novel approaches: The introduction of Independent Distribution Operators (IDO) or alternatively, a Common Flexibility Platform (CFP). While the IDO results in a change of the regulatory regime in Europe, the CFP could be applied given the current European unbundling rules. Since the CFP does not require stronger unbundling of DSOs, we recommend to investigate this solution further.

This paper aims to fill a research gap in the area of consumer-citizen attitudes to business models for decentralized energy storage, at the level of households and buildings. The study focuses on the interaction of such attitudes and their underlying motivation factors with socio-cultural, contextual factors. Self-determination theory (SDT) is used as a theoretical framework, to connect interpersonal and contextual factors, addressing the question of how contexts influence the motivation to support energy storage. Drawing on SDT, this study examines the role of autarky (independence from the energy system), autonomy (control over energy management) and relatedness (degree of sharing required) in this regard, embedded and interpreted in the socio-cultural local context of two demonstration sites in Sweden and Portugal. A mixed method approach is used. Quantitative survey data provides information on local social and cultural dimensions, followed by stakeholder consultation workshops that elicit participants’ views on different models of decentralized energy storage. The findings raise questions of how to improve autarky and autonomy for prosumers, while keeping the need for time investment low and provide flexibility regarding the required degree of interaction between prosumers. Implications for business models and policy support for citizen-centered sustainable urban energy systems are derived.

Abstract Energy efficiency improvement will reduce the effective price of energy services, and hence at least partially mitigate original expected energy conservation. Therefore, the magnitude of rebound effect is important for the design and timing of an effective energy conservation policy. Under the framework of translog cost share equations, we estimates the direct rebound effect for heavy industry in China for the first time by conducting an empirical research on the relationship between the direct rebound effect and the ease with which energy services can substitute for other inputs. Additionally, asymmetric price responses are specified in the model for the rebound effect estimation. Empirical results in our paper indicate that the rebound effect for heavy industry in China is about 74.3%. This reveals that energy efficiency improvement can save energy to a certain degree since the rebound effect is less than 100% (“back-fire”), but most of the expected reduction in heavy industry energy consumption is mitigated. These findings prove that energy pricing reforms and energy taxes should be further implemented to achieve effective energy conservation in China’s 12th Five Years Plan.

Decarbonisation of energy systems requires deep structural change. The purpose of this research was to analyse the rates of change taking place in the energy systems of each Member State of the European Union (EU), and the EU in aggregate, in the light of the EU's climate change mitigation objectives. Trends on indicators such as sectoral activity levels and composition, energy intensity, and carbon intensity of energy were compared with decadal benchmarks derived from deep decarbonisation scenarios. The methodology applied provides a useful and informative approach to tracking decarbonisation of energy systems. The results show that while the EU has made significant progress in decarbonising its energy system. On a number of indicators assessed the results show that a significant acceleration from historical levels is required in order to reach the rates of change seen on the future benchmarks for deep decarbonisation. The methodology applied provides an example of how the research community and international organisations could complement the transparency mechanism developed by the Paris Agreement on climate change, to improve understanding of progress toward low-carbon energy systems.

Abstract Despite the comparatively limited stock of vehicles, heavy-duty road transport is responsible for a major share of CO2 emissions from the European transport sector. Electric trucks powered by overhead lines, so-called trolley trucks or catenary hybrid trucks, have been proposed as a potential GHG mitigation option. However, from the perspective of the energy system, trolley trucks constitute an additional and inflexible electricity demand. Here, we analyse scenarios with an ambitious European market diffusion of trolley trucks and their impact on the electricity system and CO2 emissions. Our results show that trolley trucks can noteworthily reduce the CO2 emissions from heavy road transport even when the additional CO2 emissions from electricity generation are taken into account. Furthermore, the actual impact of the additional load from trolley trucks on the total energy system is limited. Compared to the anticipated electricity demand from passenger cars in 2030, trolley trucks require less energy and the load is more equally distributed over daytime. Our findings thus show that electric trucks are an interesting option for CO2 mitigation in heavy road transport.

Abstract Transition towards a renewable energy supply initiates a physical (re)shaping of places and a social transformation of communities into renewable energy communities. Although socio-cultural challenges of energy transition have been recognised ( Field, 2015 , IPCC, 2011 , Teske et al., 2015 ), understandings about socio-geographic places of energy transition and their underlying social processes and structures are insufficiently studied and often remain underestimated. To close this gap, we theoretically and empirically analysed the multifaceted interplay between place, local entrepreneurship and ‘community renewable energy’. Our study is based on an analysis of regional documents and policy reports, and on qualitative interviews undertaken with inhabitants in the case-study municipality of Reusenkoge (Germany). Our findings reveal two important aspects: Firstly, people's individual and shared place meanings which materialised in social, physical, historical and climate-related place-attachments and meanings of contested and innovative place are important ingredients bearing an impact on processes of adopting or rejecting renewables. Secondly, differentiated characteristics of entrepreneurs, namely grounded, collaborative, innovative, change-making, economic, communicating, networking and political aspects, appeared to be relevant for the acceptance and support in community-based renewable energy projects. Our findings reveal that energy policies, funding schemes and administrative structures should recognise local socio-geographic important elements in the context of a sustained and decentralised energy transition.

Abstract Public participation is often part of planning and decision-making processes relating to the German energy transformation (Energiewende). Factors influencing the active involvement of individuals have not been fully investigated, although these factors may impact the outcome of participatory decision making. However, a few concepts are discussed relating to what kind of people participate in governance processes: political efficacy, place attachment, value orientation, and sociodemographic characteristics. We further assumed that the aspects of attitudes toward renewable energy technologies, general knowledge about environment and energy, specific knowledge about electricity-generating technologies, personality strength, and living situation might influence people's participation in planning and decision making related to energy issues. In this study, we examine the relevance of these concepts based on a survey for which (n=) 2400 respondents were recruited from an access panel to build up a quota sample on the three crossed characteristics: gender, age, and school education. Many of the respondents are aware of participation options but very few become actively engaged in participation processes. The multivariate analyses conducted showed that attitudes towards renewable energy technologies, value orientation towards nature, political efficacy, personality strength, and individuals' specific knowledge have a strong influence on whether someone becomes actively involved or not.