energy consumption and economic growth relationship evidence from panel data for low and middle income countries abstract this paper uses the panel data of energy consumption ec and economic growth gdp for 51 countries from 1971 to 2005 these countries are divided into three groups low income group lower middle income group and upper middle income group countries firstly a relationship between energy consumption and economic growth is investigated by employing pedroni 1999 panel cointegration method secondly panel causality test is applied to investigate the way of causality between the energy consumption and economic growth finally we test whether there is a strong or weak relationship between these variables by using pedroni 2001 method the empirical results of this study are as follows i energy consumption and gdp are cointegrated for all three income group countries ii the panel causality test results reveal that there is long run granger causality running from gdp to ec for low income countries and there is bidirectional causality between ec and gdp for middle income countries iii the estimated cointegration factor is not close to 1 in other words no strong relation is found between energy consumption and economic growth for all income groups considered in this study the findings of this study have important policy implications and it shows that this issue still deserves further attention in future research

optimal bidding scheduling and deployment of battery systems in california day ahead energy market an optimal supply and demand bidding scheduling and deployment design framework is proposed for battery systems it takes into account various design factors such as the day ahead and real time market prices and their statistical dependency as well as the location size efficiency lifetime and charge and discharge rates of the batteries utilizing second life used batteries is also considered without loss of generality our focus is on the california independent system operator iso energy market and its two available bidding options namely self schedule bidding and economic bidding while the formulated stochastic optimization problems are originally nonlinear and difficult to solve we propose a methodology to decompose them into inner and outer subproblems accordingly we find the global optimal solutions within a short amount of computational time all case studies in this paper are based on real market data

relational goods and participation incorporating sociability into a theory of rational action theoretical explanations of why rational individuals would participate in politics remain unsatisfactory this paper addresses the problem by developing and analyzing models which include among citizens payoffs relational goods objectives which depend upon interactions among persons the models predict more participation than do the standard approaches for example under some circumstances persons will be more likely to act if they believe others will act contrary to free rider logic more importantly conditions are identified under which leaders could increase mass activity thus a model is provided of mobilization in terms of the preferences and decisions of a rational individual

on electricity consumption and economic growth in china abstract the invention and application of the electric power technology triggered the second industrial revolution in human history which marked the human society entered the age of electricity electricity provides the sustainable power for economic and social development with the rapid development of economy the electricity consumption is also increasing the increase of electricity consumption has further promoted the progress of the industrial economy in order to achieve the goal of improving the level of economic development while reducing energy consumption it is necessary to reveal the relationship between electricity consumption and economic growth this study is an extensive overview of the literature surrounding this topic in this paper we focus on the relationship between electricity consumption and economic growth in china we first analyze the general situation of china s electricity consumption and economic development then we explore the relationship between china s electricity consumption and economic growth from three dimensions i e the time dimension the regional dimension and the industrial dimension finally we study the key issues in the research of the relationship between electricity consumption and economic growth including variable selection model construction and results discussion this work suggests that the nature of the nexus in china should and can be explored from a wider perspective by developing a suitable integrated methodological framework

the solaria syndrome social capital in a growing hyper technological economy we develop a dynamic model to analyze the sources and the evolution of social participation and social capital in a growing economy characterized by exogenous technical progress starting from the assumption that the well being of agents basically depends on material and relational goods we show that the best case scenarios hold when technology and social capital both support just one of the two productions at the expenses of the other however trajectories are possible where technology and social interaction balance one another in fostering the growth of both the social and the private sector of the economy along such tracks technology may play a crucial role in supporting a socially sustainable economic growth

a multivariate cointegrated modelling approach in testing temporal causality between energy consumption real income and prices with an application to two asian ldcs unlike previous studies on the casual relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multiple cointegration tests preceded by various unit root or nonstationarity tests we test for cointegration between total energy consumption real income and price level of two asian ldcs thailand and sri lanka nonrejection of cointegration between variables rules out granger noncausality and implies at least one way of granger causality either unidirectional or bidirectional secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample grangerexogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total

a dynamic panel study of economic development and the electricity consumption growth nexus abstract this study examines the relationship between electricity consumption and economic growth for 88 countries categorized into four panels based on the world bank income classification high upper middle lower middle and low income within a multivariate panel framework over the period 1990 2006 the larsson et al 2001 panel cointegration test indicates there is a long run equilibrium relationship between real gdp coal consumption real gross fixed capital formation and the labor force for the high upper middle and lower middle income country panels the results from the panel vector error correction models reveal 1 bidirectional causality between electricity consumption and economic growth in both the short and long run for the high income and upper middle income country panels 2 unidirectional causality from electricity consumption to economic growth in the short run but bidirectional causality in the long run for the lower middle income country panel and 3 unidirectional causality from electricity consumption to economic growth for the low income country panel

long run welfare under externalities in consumption leisure and production a case for happy degrowth vs unhappy growth in this paper we contribute to the debate on the relationship between growth and well being by examining an endogenous growth model where we allow for externalities in consumption leisure and production we analyze three regimes a decentralized economy where each household makes isolated choices without considering their external effects a planned economy where a myopic planner fails to recognize both leisure and consumption externalities but recognizes production externalities and a planned economy with a fully informed planner we first compare the balanced growth paths under the three regimes and then we numerically investigate the transition to the optimal balanced growth path we provide a number of findings first in a decentralized economy growth or labor or both are greater than in the regime with a fully informed planner and hence are sub optimal from a welfare standpoint second a myopic intervention which overlooks consumption and leisure externalities leads to more growth and labor than in both the decentralized and the fully informed regime third we provide a case for happy degrowth a transition to the optimal balanced growth path that is associated with downscaling of production a reduction in private consumption and an ongoing increase in leisure and well being

the relationship between gdp and electricity consumption in 10 asian countries the purpose of this study is to estimate the relationships between gdp and electricity consumption in 10 newly industrializing and developing asian countries using both single data sets and panel data procedures the empirical results from single data set indicate that the causality directions in the 10 asian countries are mixed while there is a uni directional short run causality running from economic growth to electricity consumption and a bi directional long run causality between electricity consumption and economic growth if the panel data procedure is implemented these empirical findings imply that electricity conservation policies through both rationalizing the electricity supply efficiency improvement to avoid the wastage of electricity and managing demand side to reduce the electricity consumption without affecting the end user benefits could be initiated without adverse effect on economic growth the findings on the long run relationship indicate that a sufficiently large supply of electricity can ensure that a higher level of economic growth

do urbanization income and trade affect electricity consumption across chinese provinces abstract the aim of this paper is to investigate the short and long run links among urbanization output gross domestic product gdp trade openness and electricity consumption in china using a rich dataset at the provincial level the short run granger causality analysis discloses a unidirectional causal relationship running from electricity to output and weak feedback effects between trade and urbanization the long run granger causality analysis shows output urbanization and trade trigger electricity consumption whereas trade urbanization and electricity cause output the group mean and lambda pearson causality tests reveal a large heterogeneity in the long run effects which suggests there is no one size fits all policy and each region should formulate a differentiated urbanization growth strategy based on its own characteristics to control electricity utilization

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time

optimal emission tax with endogenous location choice of duopolistic firms this study explores an optimal pre committed or ex ante environmental tax policy in a three stage game in which polluting firms strategically choose the location of their plants after the government has chosen the optimal emission tax rate we show not only that the optimal emission tax is non decreasing with the declining cost of relocation e g setup or fixed costs or else the progress of globalization but also that the firms may move back their relocated plants to the home country causing the resulting welfare to decline as a consequence the domestic welfare varies in a non monotonic way we also show that such a counterintuitive non monotonic relationship does not arise under time consistent ex post emission taxes

a simple theory of predation abstractwe propose a simple theory of predatory pricing based on incumbency advantages scale economies and sequential buyers or markets the prey needs a critical scale to be successful the incumbent or predator has an initial advantage and is ready to make losses on earlier buyers to deprive the prey of the scale it needs thus making monopoly profits on later buyers several extensions are considered including cases in which scale economies exist because of demand externalities or two sided market effects and in which markets are characterized by common costs conditions under which predation may or may not take place in actual cases are also discussed

an investigation of co integration and causality between energy consumption and economic activity in taiwan applying hsiao a version of the granger causality method this paper examines the causality between energy and gnp and energy and employment by applying recently developed techniques of co integration and hsiao s version of the granger causality to taiwanese data for the 1955 1993 period the phillips perron tests reveal that the series with the exception of gnp are not stationary and therefore differencing is performed to secure stationarity the study finds causality running from gdp to energy consumption without feedback in taiwan it is also found that causality runs from gdp to energy but not vice versa

a review of residential tiered electricity pricing in china abstract at present the unformed market oriented pricing mechanism has become a great challenge faced by china s electricity pricing and the unreasonable electricity pricing caused by cross subsidization has become increasingly serious with the economic development and energy shortage tiered electricity price tep which was developed and used since 1970s was introduced into china as a new electricity pricing method for residential electricity consumption the tep can also improve the tariffs the behaviors and the efficiency of residential electricity consumption in this study we use the fundamental theory of the electricity economics to analyze the pricing methods and the forms of china s power market with the reform of electric power industry we also point out the characteristics of residential tiered electricity pricing in china which is also compared with other countries such as the united states and japan the main factors influencing the residential tiered electricity pricing design are discussed in this paper from the perspectives of users the electric power enterprise and government regulation then we point out the main problems of china s existing tiered electricity pricing including inadequate level of public awareness and acceptance unreasonable tiered and electricity price standard insufficient reflection in regional differences less combination with other electricity pricing forms and low level of smart meter application

risk based electricity procurement for large consumers in a competitive electricity market consumers seek strategies to procure their energy needs from different resources pool bilateral contracts and their own generation facilities at minimum cost while controlling the risk in this paper a novel method is proposed to address the electricity procurement problem of large consumers using the concept of information gap decision theory the method can be used as a tool for assessing the risk levels considering whether a large consumer is risk taking or risk averse regarding its midterm procurement strategies in the proposed method procurement decisions are evaluated by means of two criteria the first criterion is the robustness of the decision against experiencing high procurement costs and the second one is the opportunity of taking advantage of low procurement costs the pool price is considered an uncertain variable and it is assumed that the large consumer has an estimate of the prices in this study two models of uncertainty are addressed for the pool price based on the concept of weighted mean squared error using a variance covariance matrix and the expected procurement cost is modeled using a joint normal probability distribution function a case study illustrates the working of the proposed technique

empirical evidence regarding electricity consumption and urban economic growth links between electricity consumption and economic growth are fairly well documented for national economies but less so for urban economies the analysis of such relationships at the sub national

environmental and social degradation as the engine of economic growth abstract in this paper a commonly owned resource an environmental or social asset and a private good are substitutes in consumption the households can buy the private good on the market while the resource is available for free the resource is renewable but its ability to regenerate declines with the level of aggregate production each single firm producing the private good has only a negligible impact on the resource but the impact caused by the entire population of firms is considerable in the face of a decrease in the stock of the resource households are induced to increase their participation in market activities in order to raise their income and buy more private goods hence each household contributes to a further increase in aggregate production thus causing additional damage to the resource s ability to regenerate and feeding the growth process given the presence of negative externalities multiple equilibrium paths are possible in this situation social conventions may guide individuals to coordinate expectations and behavior toward a particular steady state one can speculate that the dominance of cultural values favorable to a lifestyle based on a mix of high consumption and hard work leads the economy to converge on a pareto inferior steady state

risk constrained generation asset arbitrage in power systems a competitive generating company genco can maximize its payoff by optimizing its generation assets this paper considers the genco s arbitrage problem using stochastic price based unit commitment while considering the associated risks the genco may consider arbitrage opportunities in purchases from qualifying facilities qfs as well as simultaneous trades with spot markets for energy ancillary services fuel and emission allowance the tradeoff between maximizing expected payoffs and minimizing risks due to market price uncertainties is modeled explicitly by including the expected downside risk as a constraint the downside risk is defined as the unfulfilled profit the monte carlo simulation is applied to generate scenarios and scenario reduction techniques are applied to reduce the number of scenarios while maintaining a good approximation of the exact solution the proposed case studies illustrate the significance of arbitrage in multi commodity markets and the importance of considering the uncertainty of market prices

the relation between chinese economic development and energy consumption in the different periods since the 1980s chinese economy grew rapidly with the rapid economic growth chinese energy consumption sharply increased the relation between chinese energy consumption and economic growth is focused on and many researchers have studied this issue by applying the methods such as granger causality test however the results just reveal the relation in a very long period in this paper the history of chinese economy is divided into four periods and the relation between chinese energy consumption and economic growth is examined by applying grey incidence analysis which is one of the most important methods of grey system theory which can be applied to solve the problems with small samples the results show that the relations in different periods are not the same the degree of grey incidences between total energy consumption and values added of secondary industry is larger and the degree of grey incidences between gdp and consumption of coal is larger too and the policy implications of these results are explained

energy consumption and economic growth evidence from china at both aggregated and disaggregated levels using a neo classical aggregate production model where capital labor and energy are treated as separate inputs this paper tests for the existence and direction of causality between output growth and energy use in china at both aggregated total energy and disaggregated levels as coal oil and electricity consumption using the johansen cointegration technique the empirical findings indicate that there exists long run cointegration among output labor capital and energy use in china at both aggregated and all three disaggregated levels then using a vec specification the short run dynamics of the interested variables are tested indicating that there exists granger causality running from electricity and oil consumption to gdp but does not exist granger causality running from coal and total energy consumption to gdp on the other hand short run granger causality exists from gdp to total energy coal and oil consumption but does not exist from gdp to electricity consumption we thus propose policy suggestions to solve the energy and sustainable development dilemma in china as enhancing energy supply security and guaranteeing energy supply especially in the short run to provide adequate electric power supply and set up national strategic oil reserve enhancing energy efficiency to save energy diversifying energy sources energetically exploiting renewable energy and drawing out corresponding policies and measures and finally in the long run transforming development pattern and cut reliance on resource and energy dependent industries

social capital innovation and growth evidence from europe this paper investigates the interplay between social capital innovation and economic growth in the european union we identify innovation as an important mechanism that transforms social capital into economic growth in an empirical investigation of 102 european regions in the period 1990 2002 we show that higher innovation performance is conducive to economic growth and that social capital affects growth indirectly by fostering innovation our estimates suggest that there is only a limited role for a direct effect of social capital on economic growth

electricity consumption and economic growth in china abstract this paper applies the error correction model to examine the causal relationship between electricity consumption and real gdp for china during 1971 2000 our estimation results indicate that real gdp and electricity consumption for china are cointegrated and there is unidirectional granger causality running from electricity consumption to real gdp but not vice versa in order to overcome the constraints on electricity consumption the chinese government has to speed up the nation wide interconnection of power networks to upgrade urban and rural distribution grids and to accelerate rural electrification

electricity consumption and economic growth in china cointegration and co feature analysis abstract this paper applies the cointegration theory to examine the causal relationship between electricity consumption and real gdp gross demostic product for china during 1978 2004 our estimation results indicate that real gdp and electricity consumption for china are cointegrated and there is only unidirectional granger causality running from electricity consumption to real gdp but not the vice versa then hodrick prescott hp filter is applied to decompose the trend and fluctuation component of the gdp and electricity consumption series the estimation results indicate that there is cointegration between not only the trend components but also the cyclical components of the two series which implies that the granger causality is probably related with the business cycle the estimation results are of policy implication to the development of electric sector in china

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

a note on the causal relationship between energy and gdp in taiwan abstract this paper re examines the causality between energy consumption and gdp by using updated taiwan data for the period 1954 1997 as a secondary contribution we investigate the causal relationship between gdp and the aggregate as well as several disaggregate categories of energy consumption including coal oil natural gas and electricity applying granger s technique we find bidirectional causality between total energy consumption and gdp we find further that different directions of cause exist between gdp and various kinds of energy consumption

thou shalt not covet prohibitions temptation and moral values abstract this paper proposes a theory of the relationship between prohibitions and temptation in the presence of self control problems moral values may increase individual material welfare and utility by serving as a self commitment device the model investigates the relationship between morality and temptation the individual gains from morality the interaction between external sanctions and moral self punishment and the spread and strength of individually optimal moral values the empirical analysis based on survey data for a large set of countries documents a hump shaped pattern of morality in social class which supports the theoretical predictions of the model

self scheduling of large consumers with second order stochastic dominance constraints this paper develops a decision making framework for mid term scheduling problems of the large industrial consumers the proposed approach is based upon the recently introduced class of stochastic programming problems established by the concept of second order stochastic dominance ssd in this paper it is assumed that the electricity price and the rate of availability unavailability of the generating unit forced outage rate are the sources of uncertainty in the decision making problem in the developed ssd constrained stochastic programming problem the consumer risk is managed by minimization of the pool procurement as the objective function and economic issues e g cost minimization are considered in the sd constraint furthermore while most approaches optimize the cost subject to an assumed demand profile our method enforces the electricity consumption to follow an optimum profile for mid term time scheduling i e three months 12 weeks so that the total production will remain constant simulation results for a typical cement factory as an industrial consumer and comparison to a mean risk approach with cvar risk measure revealed the interesting results and benefits of the proposed approach

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

what goes up recent trends in china s energy consumption since 1996 china s energy output has dropped by 17 while primary energy use has fallen by 4 driven almost entirely by shrinking output from coal mines and declining direct use since china is the world s second largest emitter of greenhouse gases it is important to understand the sources of this apparent transformation and whether it portends a permanent change in patterns of energy use this remarkable reversal of the long term expansion of energy use has occurred even as the economy has continued to grow albeit more slowly than in the early 1990s generation of electric power has risen implying a steep fall in end uses particularly in industry available information points to a variety of forces contributing to this phenomenon including rapid improvements in coal quality structural changes in industry shutdowns of factories in both the state owned and non state segments of the economy improvements in end use efficiency and greater use of gas and electricity in households a combination of slowing economic growth industrial restructuring broader economic system reforms and environmental and energy efficiency policies has apparently led to at least a temporary decline in and perhaps a long term reduction in the growth of energy use and therefore greenhouse gas emissions

electricity market reform failures uk norway alberta and california an analysis of electricity market reforms already taken place in the uk norway alberta canada and california usa leads to our overall conclusion that the introduction of a competitive generation market of itself has failed to deliver reliable service at low and stable prices the market reform failures are attributed to market power abuse by few dominant sellers especially at times of transmission congestion poor market design that invites strategic bidding by suppliers the lack of customer response to price spikes capacity shortage caused by demand growth not matched by new capacity and thin trading of forward and futures contracts that are critical for price discovery and risk management the paper then explains why an electricity market reform can easily fail to deliver the promised gains of better service at lower and more stable prices the policy implication is that an electric market reform can be extremely risky and may lead to a disastrous outcome thus it is imprudent to implement such a reform in countries with limited sites for newgeneration and no indigenous fuels e g israel and hong kong these countries should therefore consider introducing performance based regulation that can immediately benefit electricity consumers in terms of lower prices more stable prices improved reliability more choices while encouraging the electric sector to pursue efficient operation and investment r 2003 elsevier science ltd all rights reserved

optimal energy management of an industrial consumer in liberalized markets this paper presents an optimization model for mid term management of a thermal and electricity supply system of an industrial consumer under liberalized energy markets electricity is supplied from the electric grid or from a gas engine while thermal energy is satisfied through a boiler or the mentioned gas engine the objective is to minimize the overall annual energy supply costs in order to make optimal contracting decisions mixed integer linear programming is applied to solve the problem since binary decision and operation variables have been employed a realistic case is presented to illustrate the model capabilities

price maker economic bidding in two settlement pool based markets the case of time shiftable loads in this paper a new scenario based stochastic optimization framework is proposed for price maker economic bidding in day ahead and real time markets the presented methodology is general and can be applied to both demand and supply bids that is no restrictive assumptions are made on the characteristics of the pool and its agents however our focus is on the operation of time shiftable loads with deadlines because they play a central role in creating load flexibility and enhancing demand response and peak load shaving programs both basic and complex time shiftable load types are addressed where the latter includes time shiftable loads that are uninterruptible have per time slot consumption limits or ramp constraints or comprise several smaller time shiftable subloads four innovative analytical steps are presented in order to transform the originally nonlinear and hard to solve price maker economic bidding optimization problem into a tractable mixed integer linear program accordingly the global optimal solutions are found for the price and energy bids within a relatively short amount of computational time a detailed illustrative case study along with multiple case studies based on the california energy market data are presented it is observed that the proposed optimal price maker economic bidding approach outperforms optimal price maker self scheduling as well as even load distribution

a dynamic equilibrium of electricity consumption and gdp in hong kong an empirical investigation abstract public debates on electricity policy in hong kong focus on the regulation regime but seldom discuss the macroeconomic impact in this paper we use the novel dataset on electricity consumption and report the following findings 1 there is a long run equilibrium relationship between real gdp and electricity consumption 2 a one way causal effect exists from electricity consumption to real gdp 3 a significant adjustment process occurs when equilibrium is interrupted 4 there exists possible structural change in the relationship between electricity consumption and economic activities in 1990s

purchase allocation and demand bidding in electric power markets the purchase allocation problem is one of the most important problems faced by an electric energy service provider under new market environments the optimal purchase allocation problem for dual electric power markets and demand bid generation are discussed in this paper the price volatility is explicitly considered in purchase allocation problems and the sequential nature is modeled by conditional stochastic characteristics an analytical solution for the optimal allocation is derived with given demand and statistical characteristics of the market prices the method for generating demand bids for purchaser based on market allocation and price forecasting is then developed the numerical simulations for market allocation and bid generation are demonstrated based on the actual data of the u s california power market

competition cooperation and the neighboring farmer effect abstract in this paper we propose a model that explains how cooperation can emerge spontaneously between firms in a highly competitive market environment the basic idea is that the more competitive is the market the less costly it is for firms to help each other like good neighbors cooperation takes the form of sharing technical know how which speeds up the adoption of new technologies normally developed elsewhere that spur industrial development the model comports with the development history of japan s first example of successful industrial development its cotton spinning industry whose conditions match those of firms in small open economies today

electricity consumption and economic growth in india abstract this paper tries to examine the granger causality between electricity consumption per capita and gross domestic product gdp per capita for india using annual data covering the period 1950 51 to 1996 97 phillips perron tests reveal that both the series after logarithmic transformation are non stationary and individually integrated of order one this study finds the absence of long run equilibrium relationship among the variables but there exists unidirectional granger causality running from economic growth to electricity consumption without any feedback effect so electricity conservation policies can be initiated without deteriorating economic side effects

demand side management in china the context of china s power industry reform abstract the reform of china s power industry has lasted for decades while the implementation of demand side management dsm in china is still in its infancy in this paper we present a comprehensive study of the dsm and demand response dr programs in china under the context of china s power industry reform we first present a brief introduction of the background including the socio economic status and geographical location of china the energy policy of china china s power industry the smart grids and microgrid in china and the reform of china s power industry then based on the introduction of dsm and the analysis of dsm practices in some countries we discuss the development status of dsm and the reform of electricity pricing in china finally the main challenges in five aspects for the future development of dsm programs in china are proposed and discussed these challenges include customer understanding and participation advanced metering infrastructure ami and information and communication technology ict pricing mechanisms and optimal scheduling big data analytics based decision support as well as government regulations and market policies

impact of unit failure on forward contracting a generating unit can sell its production in the pool facing the financial risk inherent to volatile pool prices alternatively it can sell its production through the futures market at comparatively stable but smaller average prices unlike the pool forward contracts involve an obligation to sell during a specified time period and if the unit fails it should buy energy from the pool to meet its futures market commitments hence taking into account its forced outage rate the unit should determine the appropriate mix of pool and futures market involvement so that its expected profit is maximized for a prespecified risk level on profit variability within this context this paper analyzes the impact of the degree of unavailability of the generating unit on its forward contracting decisions a detailed case study illustrates the analysis performed

long term electricity demand in china from quantitative to qualitative growth abstract this paper develops scenarios of electricity demand in china until 2010 at a national a sectoral and a regional level it takes into account the recent macroeconomic downturn in the chinese economy and the potential effects of deregulation and price increases in the power sector the medium growth scenario hints at a gross electricity demand of 1500 twh in 2010 should the structural change from agriculture and heavy industry towards light industry and services accelerate electricity demand may be another 10 lower these figures are significantly below the projections fixed in the government s 9th five year plan which forecasts a demand of 2500 twh the aggregate and sectoral scenarios imply that current development plans for generating capacity and coal consumption until 2010 too need to be scaled down the disaggregation at the level of the 13 inter provincial and provincial power grids hints at potential regional discrepancies the large industrial areas in eastern china and the central region are likely to face overcapacity whereas north china and the peripheral regions may face deficits

the power industry reform in china 2015 policies evaluations and solutions abstract more than a decade ago in china s electric power industry the investment for generation side and power grids was inadequate and the gap between power supply and demand kept enlarging in order to relief the problems above power industry reform has been carried out in 2002 under the guidance of no 5 document by the central government the reform in 2002 has made a series of achievements including the enhancement of operation efficiency of power industry and the fulfillment of power demand all over the country during the past decade as the rapid development of the society and economy the external environment of china s power industry has changed greatly however the pricing and planning mechanism of china s power industry still operates following the requirements of no 5 document this has led to a number of problems including twisted pricing mechanism irrational power system planning inefficient utilization of renewable energy and so on these problems have not only hindered the development of power industry in china for quite a long time but also brought negative influence on the business operation of upstream and downstream industries therefore chinese government has issued no 9 document in 2015 and launched a new round of power industry reform policies were carried out to form new pricing mechanism new policies about renewable energy generation and power system planning process to solve the problems mentioned above this paper has reviewed the history of reform in 2002 and summarized the existing problems of china s power industry besides the main policies of no 9 document were deeply analyzed and their significance as well as backwards were illustrated at last solutions were proposed accordingly and these solutions have considerable theoretical and practical significance to china s electric power industry reform in the future

how much have electricity shortages hampered china s gdp growth abstract based on an econometric analysis of the annual growth data for china s gdp and electricity generation from 1953 to 2010 we find that electricity generation growth granger causes gdp growth but not vice versa we also find that the gdp elasticity of electricity generation is about 0 6 implying that a 1 increase in china s electricity generation growth would increase gdp growth by 0 6 while deng s reform raised china s gdp growth rate by about 5 per year it did not alter the gdp elasticity of electricity generation hence an obvious strategy to promote china s economic growth would be accelerating electricity generation expansion rapidly adding thermal generation units however could have large scale adverse environmental impacts we therefore support china s 2011 five year plan which calls for expanding investments in renewable energy conservation and energy efficiency as well as improving china s integrated electricity planning and cost based pricing decisions

china s experiment on the differential electricity pricing policy and the struggle for energy conservation abstract differential electricity pricing was promulgated by china s central government to guide the development of high energy consuming industries which are significant for energy conservation this paper examines the twists and turns of the policy implementation at the provincial level and seeks to elucidate the difficulties in its implementation local governments concerned that following the central directives would hurt local interests have tried to deviate from the central orders while the central revises the policy from time to time to ensure local compliance three difficulties are analyzed 1 the current relations between the central and local energy regulatory institutions make these local institutions difficult to perform their duties and affect incentives for local governments to respond to central directives 2 financial reform puts a great burden on local governments to raise revenues to cover expenditures making local governments focus mainly on economic development rather than serving merely as political agents of the central government 3 the aggressive attitude of local governments in pursuing gdp growth is not necessarily driven by the central government but by pressure from competition among localities and the need to win local support solving these difficulties is important for making national energy conservation polices effective and efficient

costs and potentials of energy conservation in china s coal fired power industry a bottom up approach considering price uncertainties abstract energy conservation technologies in the coal fired power sector are important solutions for the environmental pollution and climate change issues however a unified framework for estimating their costs and potentials is still needed due to the wide technology choices especially considering their economic feasibility under fuel and carbon price uncertainties therefore this study has employed a bottom up approach to analyze the costs and potentials of 32 key technologies new promotions during the 13th five year plan period 2016 2020 which combines the conservation supply curve csc approach and break even analysis findings show that 1 these 32 technologies have a total coal conservation potential of 275 77 mt with a cost of 238 82 billion yuan and their break even coal price is 866 yuan ton 2 steam water circulation system has the largest energy conservation potential in the coal fired power industry 3 considering the co benefits will facilitate these technologies promotions because their break even coal prices will decrease by 2 35 yuan ton when the carbon prices increase by 1 yuan ton 4 discount rates have the largest impacts on the technologies cost effectiveness while the future generation level affect their energy conservation potentials most

price maker self scheduling in a pool based electricity market a mixed integer lp approach this paper addresses the self scheduling problem faced by a price maker to achieve maximum profit in a pool based electricity market an exact and computationally efficient mixed integer linear programming milp formulation of this problem is presented this formulation models precisely the price maker capability of altering market clearing prices to its own benefits through price quota curves no assumptions are made on the characteristics of the pool and its agents a realistic case study is presented and the results obtained are analyzed in detail

social capital inclusive networks and economic performance abstract empirical studies show that the relationship between social capital and economic performance is ambiguous the paper points to the potential trade off between the sustainability of self enforcement and the magnitude of gains from trade in social networks as an explanation based on an infinitely repeated multi player prisoners dilemma it is shown how self enforcement of cooperation within a network is influenced by its inclusiveness its communication capacity and the complexity of the exchange setting the paper shows that inclusive social capital can combine both low enforcement costs and high gains from trade even in a complex exchange setting

trust and development in this paper we examine linkages between social trust and economic development using for the first time a panel of data we confirm earlier cross sectional studies finding that trust is a significant factor in development and also show for the first time that trust significantly interacts with both investment in physical and human capital we provide a robustness analysis of our results via a set of jackknife experiments on our main equations and the trust coefficients and interactions are very tightly distributed indicating that the results are not highly sample dependent we also consider whether trust directly influences investment and find that in a panel framework it does not unless we allow for a trust education interaction in the investment equation

altruism in the family and selfishness in the market place adam smith argued in a famous passage that people are selfish in their market transactions it is not from the benevolence of the butcher the brewer or the baker that we expect our dinner but from their regard to their own interest we address ourselves not to their humanity but to their self love and never talk to them of our own necessities but of their advantages 1937 p 14 in an earlier study he said with irony we are not ready to suspect any person of being defective in selfishness 1853 p 446 selfishness in market transactions has been assumed in practically all subsequent discussions of the economic system objections were dismissed with vague allusions to human nature or with an assertion that altruism loses out to selfishness in the struggle to survive in the market sector yet altruism is generally recognized to be important within a family again adam smith said

estimating the economic impacts of power supply interruptions abstract the cost of power system rationing which is a crucial parameter for determining optimal resilience investments is usually estimated using reduced form linear models or ordinary input output analysis however such methods do not properly address either consumers rational reactions to rationing policy or policy design nonlinearities to solve this problem this paper estimates the effects of power system rationing using a general equilibrium model the model solution shows that the power cut distribution among industries is a critical variable for quantifying policy effects and provides insights into optimal policy design