• Energy Research
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Abstract The housing growth programme could offer an opportunity for accelerating the deployment of decentralised renewable energy systems (DRES) in the UK. The Government hopes to leverage private sector investment into DRES as part of new housing projects. The aim of this paper is to assess whether current regulatory and funding frameworks are sufficient to achieve this. The question is explored by drawing on the experience of developers, local authorities, energy utilities and service companies operating in the largest housing growth region in the UK–Thames Gateway. Their experience suggests that the current low intervention approach will be insufficient to generate the shift required in both industries. In order to be more successful economic and regulatory instruments should focus on producers (house-builders and energy providers) rather than consumers (households). Tighter regulation is needed to ensure that producers have a responsibility to install DRES as part of new developments, to enable connection to the grid, to ensure a sustained financial return from investment and revenue is spent on the expansion of new renewable energy infrastructure. This regulatory framework must be under-pinned by substantial funds focused on producers. Greater intervention is needed if DRES is to be included in new housing development.

Abstract In this paper, we discuss a number of ways to define and measure the affordability of energy consumption, and we examine the emergence of energy poverty in Italy in the period from 1998 to 2011. The paper examines the eligibility criteria for claiming the benefits available to support energy consumption for vulnerable families and it identifies the potential beneficiaries. The study assesses the appropriateness of the eligibility criteria by comparing the population targeted by the policy with the population actually facing affordability problems. A simulation exercise, using the hypothetical scenario most likely to result in energy benefits being made available, shows that, regardless of the affordability index adopted, the provision of state energy benefits has little impact on fuel poverty.

A brisk building boom of hydropower mega-dams is underway from China to Brazil. Whether benefits of new dams will outweigh costs remains unresolved despite contentious debates. We investigate this question with the "outside view" or "reference class forecasting" based on literature on decision-making under uncertainty in psychology. We find overwhelming evidence that budgets are systematically biased below actual costs of large hydropower dams - excluding inflation, substantial debt servicing, environmental, and social costs. Using the largest and most reliable reference data of its kind and multilevel statistical techniques applied to large dams for the first time, we were successful in fitting parsimonious models to predict cost and schedule overruns. The outside view suggests that in most countries large hydropower dams will be too costly in absolute terms and take too long to build to deliver a positive risk-adjusted return unless suitable risk management measures outlined in this paper can be affordably provided. Policymakers, particularly in developing countries, are advised to prefer agile energy alternatives that can be built over shorter time horizons to energy megaprojects.

Abstract The industry in China has been developing extensively in the last few decades. Large investments in China's industry may cause congestion because congestion is a widely observed economic phenomenon in such a scenario. In order to know the performance and allocate resources well, it is necessary for the Chinese government to measure congestion of the industry. Many scholars have studied this topic by means of data envelopment analysis (DEA). However, previous studies only pay attention to the framework of desirable outputs. In fact, undesirable outputs often accompany desirable outputs in production. Thus, in this study, a new approach for measuring congestion with undesirable outputs is proposed and applied to analyzing congestion of the industry in 31 administrative regions of China. The results show that five regions have congestion in their industry in 2010. Besides, the regions located in the east of the country perform the best in ecological efficiency, followed by regions in central and west China. Based on these findings, this paper proposes some political schemes to improve regional industrial efficiency.

Abstract Energy utilization of crop straw is of high economic, social and ecological benefit. In this paper, based on the beneficiary pays principle, we use biogas production from crop straw as an example and analyze households' willingness to pay (WTP) for the local government-led project on energy utilization of crop straw. “Interpersonal trust” and “institutional trust” variables are introduced to improve the unified theory of acceptance and use of technology (UTAUT) model, on the basis of which, Probit and Interval Regression Models are employed to explore the determinants of households' WTP. Results show that: 1) Most households are willing to pay for biogas utilization of crop straw, and the average expected value of households' WTP is about 20.72 RMB per household monthly; 2) Crop straw program cost and benefit trade-offs, convenience of logistics and technology, and trust factors all play an important role in households’ WTP; 3) If the cultivation of trust is neglected, even if households have high expectations for the ecological performance of biogas production from crop straw, their WTP will not be improved. Conclusions are summarized to provide an important reference for the formulation of policies to improve energy utilization of crop straw in developing countries or regions.

Abstract Using country level panel data from East Asia over the period 1998–2011, this paper examines the implications of international production fragmentation-induced intermediate goods trade on the link between energy consumption and carbon pollution. The paper focuses on the interaction effect between energy consumption and trade in intermediate goods on carbon emission. The empirical results presented suggest that international trade in intermediate goods decreases the positive impact on carbon emission of energy consumption. When compared with the trade in final goods, intermediate goods trade contributes to a greater decrease in carbon pollution resulting from energy consumption. These results confirm that the link between energy consumption and carbon pollution in East Asia is significantly affected by international production fragmentation-induced trade in intermediate goods. The results presented in this paper have some important policy implications.

Abstract This paper provides an overview of economic issues involved in timing limitations on CO2 emissions from energy systems. It highlights issues relating to technology availability, development and diffusion, and the inertia of energy systems, as being particularly important. The paper sets this in the context of wider uncertainties surrounding the problem and briefly considers other aspects relevant to timing. The paper is stimulated by the debate in the USA about optimal abatement paths, in particular recent claims that it would be economically preferable to defer such abatement action, in favour of measures that support technology development but do not affect emission trends for many years. This paper categorizes the various economic issues involved and concludes that for each economic argument that has been advanced to justify deferring emission constraints, there are counter-vailing economic arguments that could be used in support of rapid near term emissions abatement. Rational policy lies between these extremes. A policy of deferring all emissions abatement exposes economic systems and industries, as well as the environment, to significantly greater costs and risks than those arising from a more balanced approach. Furthermore the modelling studies that have been used to justify deferring emissions abatement do so because they embody the economic factors favourable to delay and largely neglect the countervailing issues, to the point where their results have little relevance to the overall problem of timing emissions abatement.

China faces growing environmental problems as rapid economic growth comes at the cost of excessive resource consumption. Sustainable development can only be realized by reducing energy intensity. Although some general factors that influence energy intensity have been described, less information is available to compare energy intensity in different regions. Here we use existing literature to assess the effects of three internal factors (economic structure, energy consumption structure, and technological progress) on energy intensity in three regions of China. We use panel data from 2000 to 2009 and find that the effects of each factor differ in each region. We further differentiate these effects by decomposing technological progress into three parts using the DEA-Malmquist approach. We find three components of technological change have completely different effects in each region. Furthermore, these findings are applied to propose relevant suggestions to reduce energy intensity in different regions of China.

Abstract The European Union (EU) has the world's most extensive regional power trade, making it essential for the EU environmental energy policies. Understanding the nexus amongst water, power and CO2 emissions is essential for sustainable water and energy resource management. Although a number of related studies on the nexus have been conducted, integrating virtual water and CO2 emission footprints for the power sector requires further attention. The current study analyses the virtual water and CO2 emissions embodied in the power supply, demand and regional trade. A network model is developed to track the virtual water and CO2 emissions of the inter-regional power trade for the case of EU-27 countries in 2017. The total virtual CO2 emissions and the embodied virtual water in the EU inter-regional power trade are estimated as 7.0 × 104 t CO2 and 5.6 × 108 m3, with a hydropower contribution of 37.8%. The largest virtual water and CO2 emissions exporters are identified by France (8.8 × 107 m3) and Germany (2 × 104 t), whilst the largest virtual CO2 importer is Austria (1 × 104 t). The identified synergy of climate mitigation and water scarcity provides a benchmark for policymakers to develop strategies for sustainable power development considering the virtual footprint in trade flow simultaneously.