aggregate demand for electricity in south africa an analysis using the bounds testing approach to cointegration abstract electricity demand in south africa has grown at a very rapid rate over the past decade as part of reform initiatives to enhance long term sustainability of the country s electricity industry south africa s authorities have in recent years sought to develop an electricity pricing framework that is cost reflective and forms the cornerstone of demand management schemes meant to foster changes in consumption behaviour and enhance efficiency in resource use the effects of any pricing policy on aggregate electricity consumption will depend on a useful understanding of the factors that influence electricity demand and the magnitude to which electricity demand responds to changes in such factors in this context this paper applies the bounds testing approach to cointegration within an autoregressive distributed lag framework to examine the aggregate demand for electricity in south africa during the period 1960 2007 the results indicate that in the long run income is the main determinant of electricity demand with electricity prices having an insignificant effect on aggregate electricity demand future pricing policies will need to ensure that electricity prices are cost reflective and enhance efficiency of electricity supply and use

elements for the development of public policies in the residential sector of mexico based in the energy reform and the energy transition law abstract mexico has entered in an important dynamic of structural changes in the energy area proof of this it is the energy reform 2013 and the energy transition law published the last december 24th 2015 thus it is important to carry out studies of the impacts of future politics in the consumption of the population so this study estimate an energy demand system using microdata collected from 97 817 households in a national households income and expenditure survey enigh acronyms in spanish encuesta nacional de ingresos y gastos de los hogares in the 20 years period from 1994 to 2014 the magnitudes of all the fuels are smaller than one indicating that electricity lpg gasoline and public transport are normal goods while lpg is the most inelastic energy source the geographic factor shows that households in the north of mexico tend to consume more gasoline whereas in the south of the country the lowest share of lpg expenditure is reported the rigorous evaluation of energy demanded in households will help policy makers to put forward more efficient reforms

measuring the financial impact of demand response for electricity retailers abstract due to the integration of intermittent resources of power generation such as wind and solar the amount of supplied electricity will exhibit unprecedented fluctuations electricity retailers can partially meet the challenge of matching demand and volatile supply by shifting power demand according to the fluctuating supply side the necessary technology infrastructure such as advanced metering infrastructures for this so called demand response dr has advanced however little is known about the economic dimension and further effort is strongly needed to realistically quantify the financial impact to succeed in this goal we derive an optimization problem that minimizes procurement costs of an electricity retailer in order to control demand response usage the evaluation with historic data shows that cost volatility can be reduced by 7 74 peak costs drop by 14 35 and expenditures of retailers can be significantly decreased by 3 52

determinants of import demand for non renewable energy petroleum products empirical evidence from nigeria abstract this study estimated determinants of import demand for refined petroleum products in nigeria for the period 1984 2013 it employed the autoregressive distributed lag ardl bounds test cointegration method and analysed both long run and short run determinants of import demand for total and specific petroleum products in the long run aggregate and sectoral incomes are significant determinants of import of refined kerosene further real effective exchange rate reer aggregate income gdp manufacturing sector s income domestic energy production dep and population growth rate pgr are drivers of import of refined motor spirit moreover reer dep and manufacturing sector s income are propellers of import of refined distillate fuel also reer and total output of petroleum products are major drivers of total import of refined petroleum products short run results show that previous period gdp pgr and manufacturing and service sectors incomes are determinants of import demand for refined kerosene moreover reer gdp previous pgr and manufacturing sector s income exert significant effects on the import of refined motor spirit further significant effects of reer dep previous pgr domestic output of the product and manufacturing and service sectors incomes on the import demand for distillate fuel were found policy implications of the foregoing are articulated in the paper

price and income elasticities of electricity demand evidence from jamaica abstract jamaica s electricity sector faces supply side challenges demand side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions in this paper i use the bounds testing approach to cointegration to obtain long run price elasticity of demand estimates for the period 1970 2014 the analysis focuses on aggregate electricity demand and three categories of consumers residential commercial and industrial the findings suggest that residential and industrial consumers are most responsive to price changes with long run price elasticities of demand of 0 82 and 0 25 respectively price based approaches are likely to be more successful in slowing electricity demand growth in these sectors

can poor consumers pay for energy and water an affordability analysis for transition countries low income households spend a substantial share of their income on utility services such as electricity heating and water the difficulty of these socially vulnerable consumers to absorb further price increases is often used as an argument against tariff reform however detailed quantitative information on the affordability of tariff adjustments for low income consumers is actually quite scarce much of the available information is based on households this paper takes a more detailed look at the affordability of electricity district heating and water for low income consumers in transition countries while the available data are incomplete the paper finds that affordability is a problem for low income consumers in most countries in particular in the water sector and in the commonwealth of independent states cis the affordability consequences of tariff reform ultimately depend on the speed of tariff adjustments relative to the growth in household income the level of tariffs needed for cost recovery the level of effective tariffs at the outset tariffs adjusted for non payment and the demand response to the tariff increase the paper finds that delaying tariff reform by a few years makes little difference to affordability constraints and may therefore not be an effective way to mitigate the social impact of utility reform

the role of corporate sustainability performance for economic performance a firm level analysis of moderation effects abstract this paper analyses the link between sustainability management and economic performance its main research question concerns the association of social responsibility and environmental management with economic performance determinants of the latter and possible moderation effects based on data collected from financial databases and kinder lydenberg domini for the period 1992 to 2003 the paper analyses the link of corporate sustainability performance with economic performance using panel estimation techniques the analysis shows that advertising intensity moderates the association of corporate sustainability performance and economic performance as measured by tobin s q for research and development efforts relative to firm size no moderating role on the link between corporate sustainability and economic performance is identified a sensitivity analysis using separate measures for social and environmental performance reveals that the latter only has a direct effect and the former only a fully moderated effect on economic performance policy and management implications of these findings are discussed

finance as a driver of corporate social responsibility finance is grease to the economy therefore we assume that it may affect corporate social responsibility csr and the sustainability of economic development too this paper discusses the transmission mechanisms between finance and sustainability we find that there is no simple one to one relationship between financial development and sustainable development but there are various often indirect linkages it appears that most of the literature concentrates on the role of public shareholders when it comes to changing corporate policy and performance in a more sustainable direction however this focus neglects the potential impact of the credit channel and private equity on a firm s non financial policies and performance these very powerful mechanisms can govern business policies and practices therefore there appears to be much more scope for finance to promote socially and environmentally desirable activities and to discourage detrimental activities than has been acknowledged in the academic literature so far

abatement investments and green goodwill this paper develops and estimates a dynamic model that links profits to green goodwill assuming that abatement investments generate green goodwill and using data from the swedish pulp industry we are able to test the effects of green goodwill on firm level output price and profits the results suggests that swedish pulp plant output prices and profits may be positively related to changes in green goodwill furthermore no evidence is found to support the existence of adjustment costs due to abatement investments

global warming and the energy efficiency of spanish industry this paper uses a stochastic frontier production function model to analyze the energy efficiency of spanish industry we used minimum cost input demand equations as the reference in order to calculate the demand for electricity gas and other fuels on this basis we found that there is no inherent conflict between the objectives of achieving productive efficiency and reducing energy consumption indeed it is possible to reduce the industrial emissions of co2 by up to 29 4 by means of a bottom up energy efficiency policy however if the government wants firms to reduce their emissions even further then it would be necessary to implement some form of energy regulatory policy in this respect we estimate the cost of reducing co2 emissions by 20

residential consumption of gas and electricity in the u s the role of prices and income abstract we study the residential demand for electricity and gas working with nationwide household level data that cover recent years namely 1997 2007 our dataset is a mixed panel multi year cross sections of dwellings households in the 50 largest metropolitan areas in the united states as of 2008 we estimate static and dynamic models of electricity and gas demand we find strong household response to energy prices both in the short and long term from the static models we get estimates of the own price elasticity of electricity demand in the 0 860 to 0 667 range while the own price elasticity of gas demand is 0 693 to 0 566 these results are robust to a variety of checks contrary to earlier literature metcalf and hassett 1999 reiss and white 2005 we find no evidence of significantly different elasticities across households with electric and gas heat the price elasticity of electricity demand declines with income but the magnitude of this effect is small these results are in sharp contrast to much of the literature on residential energy consumption in the united states and with the figures used in current government agency practice our results suggest that there might be greater potential for policies which affect energy price than may have been previously appreciated

dynamic demand for residential electricity in taiwan under seasonality and increasing block pricing abstract this paper studies the dynamic demand for residential electricity in taiwan employing a monthly panel data set composed of 19 counties and spanning the period from 2007 01 to 2013 12 the partial adjustment model used addresses the endogeneity of the electricity price that results from the increasing block pricing the estimated results show that there is a significant seasonal difference in the demand for electricity between the summer and non summer periods both the adjustment speed and own price elasticity during the summer months are found to be lower than those in the non summer months due to the hot weather in summer it is easier for consumers to adjust their electricity consumption in response to the changes in electricity pricing during the non summer time the estimated inelastic short run and long run income effects show that electricity is a necessity for consumers moreover the controversial electricity conservation policies are found to be ineffective measures for reducing electricity consumption in taiwan

the dynamics of electricity demand in pakistan a panel cointegration analysis abstract this paper examines the dynamics of electricity demand in pakistan at the aggregate and sectoral levels over the period 1978 2012 panel cointegration test and fully modified ordinary least squares method is employed to determine the long run relationship between electricity consumption real income real price of electricity and domestic price of non energy products the results reveal that electricity demand is more responsive to changes in income than changes in prices at the aggregate and disaggregate levels short run and long run income elasticities are positive and statistically significant supporting the conservation hypothesis it appears from the results that long run price elasticities are negative and significant at the aggregate level and for the agriculture commercial residential sectors and public utilities the short run price elasticities are significant but low in magnitude which implies that changes in electricity price exert minimal effect on the electricity consumption in pakistan the domestic price of non energy products is positive and significant for aggregate sample in the short run the domestic price of non energy products exert significant negative positive impact on electricity demand in the agriculture industrial sectors the results thus provide important information to the agents operating in the electricity market regarding the income and pricing policies and helps in planning the future strategy of electricity demand management

why do manufacturing facilities introduce environmental management systems improving and or signaling performance abstract in this paper we explore the motivation for the introduction of environmental management systems and their certification a distinction is drawn between their role in bringing about better compliance or improved performance and as external indicators of good environmental practices to both other market participants and regulatory authorities drawing upon a database of approximately 4000 facilities in seven oecd countries empirical evidence is found for the role that both factors play in encouraging the adoption and certification of ems s but that the relative importance of different factors varies according to facility size

short run and long run elasticities of import demand for crude oil in turkey abstract the aim of this study is to attempt to estimate the short run and the long run elasticities of demand for crude oil in turkey by the recent autoregressive distributed lag ardl bounds testing approach to cointegration as a developing country turkey meets its growing demand for oil principally by foreign suppliers thus the study focuses on modelling the demand for imported crude oil using annual data covering the period 1980 2005 the bounds test results reveal that a long run cointegration relationship exists between the crude oil import and the explanatory variables nominal price and income but not in the model that includes real price in domestic currency the long run parameters are estimated through a long run static solution of the estimated ardl model and then the short run dynamics are estimated by the error correction model the estimated models pass the diagnostic tests successfully the findings reveal that the income and price elasticities of import demand for crude oil are inelastic both in the short run and in the long run

modelling aggregate domestic electricity demand in ghana an autoregressive distributed lag bounds cointegration approach in spite of the varying supply boosting efforts made by various governments to deal with the existing demand supply gap in the electricity sector the incessant growth in aggregate domestic electricity demand has made these efforts futile as an objective this paper attempts to identify the factors responsible for the historical growth trends in aggregate domestic electricity demand quantifying their effects both in the short run and long run periods using the ardl bounds cointegration approach and the sample period 1975 to 2005 in the long run real per capita gdp industry efficiency structural changes in the economy and degree of urbanisation are identified as the main driving force behind the historical growth trend in aggregate domestic electricity demand however in the short run real per capita gdp industry efficiency and degree of urbanisation are the main drivers of aggregate domestic electricity demand industry efficiency is the only factor that drives aggregate domestic electricity demand downwards however the negative efficiency effect is insufficient to have outweighed the positive income output and demographic effects hence the continual growth in aggregate domestic electricity demand as a policy option we recommend that appropriate electricity efficiency standards be implemented at the industry level

a real options approach to abatement investments and green goodwill in this paper we adopt the green goodwill argument as to why firms voluntarily invest in abatement capital we investigate the effects on the abatement investment decision of changes in uncertainty about future green goodwill competitor abatement investments regulations etc using a real options framework our results indicate that increased uncertainty about consumers willingness to pay for green products in the future discourage voluntary abatement investments the model also suggests that voluntary abatement investments are promoted by an increased threat of regulation and competitor abatement investments furthermore the benefit cost ratio of the abatement investment project at the point where it is optimal to invest is independent of what regulatory regime stringent or lenient the firm operates in we also conclude that despite the fact that voluntary abatement investment exists there may still be room for environmental policy

technical inefficiency in manufacturing industries this article examines technical inefficiency of manufacturing industry in the united kingdom based on data for 19 023 establishments in 151 industries these data drawn from the annual census of production for 1977 have been used to estimate technical inefficiency in each industry by fitting translog stochastic frontier production functions and decomposing the residuals into two components one measuring inefficiency and the other unobservable random factors the work is the first step in a larger project to explain the sources of technical inefficiency and to compare efficiency between countries similar studies are currently taking place in australia the united states canada japan south korea and norway the first phase of estimation has been completed for the united states caves 1988 for the united kingdom green and mayes 1989 and australia harris 1989

household and industrial electricity demand in europe abstract this paper examines the electricity demand and its determinants in 29 european countries during the liberalization of the electricity market based on panel data for these countries for the years 1995 2015 and using a dynamic partial adjustment model price elasticities are estimated for both residential and industrial electricity demand these elasticities and effects of other variables on electricity consumption are estimated using both gmm generalized method of moments and ml maximum likelihood approaches it is found that the price elasticities are very small especially in the short run while the income elasticities are relatively large especially for households and in the long run

the demand for residential industrial and total electricity 1973 1998 this paper estimates residential industrial and total electricity demand by a partial adjustment approach and by a simultaneous equation approach simultaneous equation models are more appropriate since they provide negative price elasticity estimates for the residential industrial and total electricity samples flow adjustment models yield positive price elasticity estimates in some cases suggesting they fail to identify proper supply considerations that may be influencing prices the simultaneous equation approach suggests that residential customers are more price sensitive than industrial customers weather seems to have the greatest impact on the residential sector and cold weather appears to affect demand more than hot weather

residential electricity demand dynamics in turkey abstract this article provides fresh empirical evidences for the income and price elasticies of the residential energy demand both in the short run and long run for turkey over the period 1968 2005 using the bounds testing procedure to cointegration the computed elasticities of income and price are consistent with the previous studies and as expected the long run elasticities are greater than the short run elasticities an augmented form of granger causality analysis is implemented among residential electricity income price and urbanization in the long run causality runs interactively through the error correction term from income price and urbanization to residential energy but the short run causality tests are inconclusive the parameter stability of the short run as well as long run coefficients in the residential energy demand function are tested the results of these tests display a stable pattern

quality leadership when regulatory standards are forthcoming in many markets governments set minimum quality standards while some sellers compete on the basis of quality by exceeding them such quality leadership strategies often win public acclaim especially when they involve environmental attributes using a duopoly model of vertical product differentiation we show that if the high quality firm can commit to a quality level before regulations are promulgated it induces the regulator to weaken standards and welfare falls our results raise doubts about the social benefits of corporate self regulation and highlight the dangers of lengthy delays between legislative mandates for new regulations and their implementation

the evolution of price elasticity of electricity demand in south africa a kalman filter application abstract in south africa the electricity mismatch of supply and demand has been of major concern additional to past problems the 2008 electricity crisis made the solution crucial after its damaging consequences to the economy the disagreement on the need and consequences of the continuous electricity price hikes worsens the situation to contribute to the recent electricity debate this paper proposes a time varying price elasticity of demand for electricity the sensitivity of electricity consumption to price fluctuations changes throughout the years the main purpose of this study is the estimation of the price elasticity of electricity in south africa during the period 1980 2005 by employing an advanced econometric technique the kalman filter apart from the decreasing effect of electricity prices to consumption 71 8 in the 1990s and 94 5 in the 2000s in average our results conclude to an important finding the higher the prices for example in the 1980s the higher the sensitivity of consumers to price fluctuations thus further increases of the electricity prices may lead to changes in the behaviour of electricity consumers focusing their efforts on improving their efficiency levels by introducing demand side management techniques or even turning to other sources of cheaper energy

modeling industrial energy demand in greece using cointegration techniques abstract this paper attempts to shed light on the determinants of industrial energy demand in greece for this purpose we used cointegration analysis in order to capture short run and long run elasticities for oil and electricity industrial demand respectively the sample spans the period 1970 2004 from the empirical analysis and the johansen s maximum likelihood procedure we found cointegration for oil and electricity demand the results suggest that industrial energy demand is inelastic both in the short and the long run while electricity and oil are substitutes also oil and electricity prices are weakly exogenous both in the short and the long run

is it more effective to bring time of use pricing into increasing block tariffs evidence from evaluation of residential electricity price policy in anhui province abstract reform of energy prices in china has stepped into a crucial stage it has become a controversial issue after the reform of increasing block tariffs ibts for household electricity followed by a time of use tou pricing policy using eles model this paper estimates the price elasticity of residential electricity demand based on perceived price and price elasticity a power structure model demand response for nonlinear electricity price is proposed taking anhui province as a case this paper analyzes the attainment situation of such policy objectives as electricity saving consumer welfare equity improvement and peak shaving with the introduction of tou pricing into ibts for household electricity the results show that ibts helps reduce electricity consumption by 0 74 0 93 with minor energy effect ibts may lead to a maximum 1 57cny increase of electricity expense per household per month which is acceptable for residents it also may reduce cross subsidy to some extent after introducing tou pricing the efficiency of peak shaving is only 2 25 2 78 and the load decrement at peak periods is far lower than the increase at valley periods while the effect of electricity conservation and cross subsidy reduction have been alleviated in other words peak valley price is not only difficult to achieve its own objective effectively but also prohibits the effect of ibts based on the above conclusions some policy recommendations are provided to improve the price reform of residential electricity natural gas and other public resources in various regions of china and foreign regions with similar electricity market

modeling energy demand some emerging issues abstract the proliferation of papers on energy demand modeling has offered different dimensions both in terms of methodology and estimation while this development has strengthened our understanding of the subject it may render the identification of gaps in the literature arduous for future research thus this study sets out to document some emerging issues that seem to have engendered new directions on energy demand modeling ranging from asymmetric price responses time varying demand parameters triangulation analyses to seasonal and climate change effects it is hoped that access to this review complemented with the previous ones will facilitate the comprehension of the extant literature as well as areas of future research in energy demand modeling

inverse productivity or inverse efficiency evidence from mexico abstractusing a unique panel data set from rural mexico we find strong evidence of a negative relationship between farm size and both productivity and technical efficiency large farms not only have a lower value of output per hectare than small farms they also produce further from the efficiency frontier our findings suggest that in spite of the ongoing transformation of agricultural supply chains and economists recommendations for small farmers to exit crop production there may be sustained advantages for smallholder farms our analysis offers new insights into inverse farm size relationship the productivity efficiency relationship and the use of stochastic frontier techniques

response of residential electricity demand to price the effect of measurement error abstract in this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 us states from 1995 to 2007 earlier literature has examined residential energy consumption at the state level using annual or monthly data focusing on the variation in price elasticities of demand across states or regions but has failed to recognize or address two major issues the first is that when fitting dynamic panel models the lagged consumption term in the right hand side of the demand equation is endogenous this has resulted in potentially inconsistent estimates of the long run price elasticity of demand the second is that energy price is likely mismeasured to address these issues we estimate a dynamic partial adjustment model using the kiviet corrected least square dummy variables lsdv 1995 and the blundell bond 1998 estimators we find that the long term elasticities produced by the blundell bond system gmm methods are largest and that from the bias corrected lsdv are greater than that from the conventional lsdv from an energy policy point of view the results obtained using the blundell bond estimator where we instrument for price imply that a carbon tax or other price based policy may be effective in discouraging residential electricity consumption and hence curbing greenhouse gas emissions in an electricity system mainly based on coal and gas power plants

how a symmetric is the response of import demand to changes in its determinants evidence from european energy imports abstract energy imports are crucial for european countries yet little is known about determinants of their import demand we update long outdated estimates of import demand elasticities using recent data for crude and derived energy products and contribute to the debate on the asymmetry of import demand by using recent developments in econometric modelling our results have important implications for the geopolitics of energy markets in europe asymmetric income seems to be the most relevant determinant of import demand economic growth and fossil fuel consumption are correlated even in the context of the european agenda towards renewables our results suggest that european economic recovery may derail the drive for lower fossil consumption and that changes in the natural gas market may further complicate this drive especially regarding russia as the primary supplier to the eurozone

income and price elasticities of electricity demand aggregate and sector wise analyses abstract cointegration and vector error correction modeling approaches are widely used in electricity demand analysis the study rigorously examines the determinants of electricity demand at aggregate and sectoral levels in pakistan in the backdrop of severe electricity shortages our empirical findings give support to the existence of a stable long run relationship among the variables and indicate that electricity demand is elastic in the long run to both income and price at aggregate level at sectoral level long run income and price elasticity estimates follow this pattern except in agricultural sector where electricity demand is found elastic to output but inelastic to electricity price on the contrary the coefficients for income and price are rather small and mostly insignificant in the short run we employed temperature index price of diesel oil and capital stock at aggregate and sectoral levels as exogenous variables these variables account for most of the variations in electricity demand in the short run it shows that mechanization of the economy significantly affect the electricity demand at macro level moreover elastic electricity demand with respect to electricity price in most of the sectors implies that electricity price as a policy tool can be used for efficient use and conservation

climate change adaptation a study of fuel choice and consumption in the us energy sector abstract using cross sectional data this paper estimates a national energy model of fuel choice by both households and firms consumers in warmer locations rely relatively more heavily on electricity rather than natural gas oil and other fuels they also use more energy climate change will likely increase electricity consumption on cooling but reduce the use of other fuels for heating on net american energy expenditures will likely increase resulting in welfare damages that increase as temperatures rise for example if the us warms by 5 c by 2100 we predict annual welfare losses of 57 billion

the economics of corporate social responsibility a firm level perspective survey this paper analyzes the economics of corporate social responsibility csr as a private response to market imperfections in order to satisfy social preferences depending on whether they affect regulation competition or contracts market imperfections driving csr decisions are classified in three categories public goods and bads and altruism imperfect competition and incomplete contracts we successively present these drivers of csr decisions and highlight the nature of incentives external or internal at work and the testable and tested hypotheses in the reviewed studies we finally review the link between csr and financial performance as well as between csr and social and environmental performance a twofold discrepancy appears in the literature opening future research paths a disconnection between our understanding of csr drivers and csr impacts and a knowledge gap between csr financial and social consequences the latter having received little attention

the economic impacts of voluntary environmental performance of firms a critical review new trends in studies on the governance of natural assets include substantial consideration of the role of voluntary initiatives a traditional economic view states that there is a trade off between being green and being competitive according to that view no voluntary environmental action is expected to occur to undertake an in depth analysis of the scope for voluntary action this paper reviews empirical literature that analyzes the relationship between manufacturing firms environmental initiatives or performance and economic results this review moves beyond the general test of the pay to be green hypothesis preferring instead to systematize empirical results in more specific research questions empirical findings of the reviewed literature generally support that there is no penalty for being green in addition the typology of firms the methods utilized for implementing environmental initiatives the intensity of abatement efforts and stockholders valuation of green firms have all been shown to have a sizeable influence on the actual economic results of environmental action or management consequently the findings of this paper challenge the traditional strategic theory that predicts widespread free riding it holds major implications for environmental policy making and environmental business decisions

voluntary environmental investment and responsive regulation instances of corporate voluntary environmental investments have been rising in recent years motivations for such activities include corporate image building regulatory preemption and production cost savings while some of these investments arise from industry attempts to set environmental standards where none currently exist many investments seem to be aimed at reducing the costs of complying with existing regulations using a simple game theoretic model we investigate firm motivations for and welfare consequences of these types of voluntary investments by focusing on the role regulatory enforcement might play we find that such investments unambiguously increase when an enforcement regulator acts as a stackelberg follower a regulatory structure we refer to as responsive regulation in setting its monitoring and enforcement strategy these additional investments may be socially undesirable necessitating a restructuring of non compliance penalties

price knowledge in household demand for utility services a household s decision to acquire price knowledge is endogenous in the demand for utility services and may affect elasticities and consumption levels a simultaneous equation model with endogenous switching is developed to evaluate the effects of price knowledge and other sources of heterogeneity results indicate informed households were more responsive to average and marginal price signals informed households also use less water but this is due to heterogeneity rather than price knowledge controlling for heterogeneity price knowledge actually increases monthly water usage the implications of accounting for differences in price knowledge in utility demand modeling and demand management policy are discussed

modelling oecd industrial energy demand asymmetric price responses and energy saving technical change abstract the industrial sector embodies a multifaceted production process consequently modelling the derived demand for energy is a complex issue made all the more difficult by the need to capture the effect of technical progress of the capital stock this paper is an exercise in econometric modelling of industrial energy demand using panel data for 15 oecd countries over the period 1962 2003 exploring the issue of energy saving technical change and asymmetric price responses although difficult to determine precisely it is tentatively concluded that the preferred specification for oecd industrial energy demand incorporates asymmetric price responses but not exogenous energy saving technical change

regional electric power demand elasticities of japan s industrial and commercial sectors abstract in the assessment and review of regulatory reforms in the electric power market price elasticity is one of the most important parameters that characterize the market however price elasticity has seldom been estimated in japan instead it has been assumed to be as small as 0 1 or 0 without proper examination of the empirical validity of such a priori assumptions we estimated the regional power demand functions for nine regions in order to quantify the elasticity and found the short run price elasticity to be 0 09 0 30 and the long run price elasticity to be 0 12 0 56 inter regional comparison of our estimation results suggests that price elasticity in rural regions is larger than that in urban regions popular assumptions of small elasticity of 0 1 for example could be suitable for examining japan s aggregate power demand but not power demand functions that focus on respective regions furthermore assumptions about smaller elasticity values such as 0 01 and 0 could not be supported statistically by this study

abatement and allocation in the pilot phase of the eu ets we use historical industrial emissions data to assess the level of abatement and over allocation that took place across european countries during the pilot phase 2005 2007 of the european union emission trading scheme using a dynamic panel data model we estimate the counter factual business as usual emissions scenario for eu member states comparing this baseline to allocated and verified emissions we find that both over allocation and abatement occurred along with under allocation and emissions inflation over the three trading years of the pilot phase we find over allocation of approximately 280 million euas and total abatement of 247 mt co2 however we calculate that emissions inflation of approximately 73 mt co2 also occurred possibly due to uncertainty about future policy design features

emission abatement untangling the impacts of the eu ets and the economic crisis abstract in this study we use historical emission data from installations under the european union emissions trading system eu ets to evaluate the impact of this policy on greenhouse gas emissions during the first two trading phases 2005 2012 as such the analysis seeks to disentangle two causes of emission abatement that attributable to the eu ets and that attributable to the economic crisis that hit the eu in 2008 09 to do so we use a dynamic panel data approach our results suggest that by far the biggest share of abatement was attributable to the effects of the economic crisis this finding has serious implications for future policy adjustments affecting core elements of the eu ets including the distribution of eu emission allowances

measuring the welfare effects of reducing a subsidy on a commodity using micro models an application to kuwait s residential demand for electricity abstract this paper provides a conceptual and empirical approach for evaluating the direct benefits and costs that are associated with reforming the price of a subsidized commodity using a micro model the welfare analysis is based on two alternative scenarios a hypothetical percentage increase in the price of the commodity and a hypothetical percentage decrease in the amount of subsidy the latter is considered to be a simultaneous problem in which the exact price of the commodity that reduces consumption and subsequently the subsidy to the specific target level needs to be determined first as a case study the paper utilizes the most recent household expenditure survey in the state of kuwait to estimate residential electricity demand for different household groups i e low middle and high income and employs a partial equilibrium model to measure the welfare implications that may result from a reduction in the electricity subsidy rates the empirical findings show that a small increase in the price of electricity would reduce annual consumption by 4741 million kwh and annual subsidy by us 734 million the results also show that the loss in consumers welfare is approximately us 145 million while the financial and environmental benefits to the society ranges between us 658 million and us 889 million the magnitude of these welfare gains suggests that electricity price reforms combined with a rebate scheme to compensate households for their welfare loss offsetting any political resistance to reform is a win win situation

product market competition and the financing of new ventures this paper examines the interaction between venture risk product market competition and the entrepreneur s choice between bank financing and venture capital vc financing under bank financing a debt type contract emerges as optimal which allows the entrepreneur to retain full control of the venture and thus yields strong effort incentives as long as the entrepreneur can service the debt repayment however this leads to liquidation in the case of default making the venture s success quite sensitive to exogenous even temporary shocks that may hinder debt repayment under vc financing an equity type contract emerges as optimal although it is not sensitive to exogenous shocks this contract requires the entrepreneur to share a fraction of the rents with the financier thus yielding lower effort incentives for the entrepreneur there exists a threshold level of venture risk such that bank financing is optimal if and only if venture risk is below that threshold product market competition increases the value of stronger entrepreneurial incentives and thus increases the maximum level of risk the entrepreneur is willing to take before switching from bank financing to vc financing this is a robust result that is shown to hold in various models of competition including the hotelling salop dixit stiglitz and cournot to bertrand switch this paper was accepted by lee fleming entrepreneurship and innovation

a review of time use models of residential electricity demand residential electricity demand in most european countries accounts for a major proportion of overall electricity consumption the timing of residential electricity demand has significant impacts on carbon emissions and system costs this paper reviews the data and methods used in time use studies in the context of residential electricity demand modelling it highlights key issues which are likely to become more topical for research on the timing of electricity demand following the roll out of smart metres

market structure in the us electricity industry a long term perspective we estimate changes in market structure in the us electric power industry during the last three decades using two independent approaches first we estimate an industry wide conjectural variations parameter we find that industry concentration was generally rising during the 1970s but has been gradually and consistently falling since the early 1980s to check the robustness of these results we then use a translog production function to estimate the lerner index the results confirm that the industry was becoming less concentrated during the 1980s though the lerner index tended to fluctuate during the late 1980s and early 1990s our results suggest that the current state of the electricity industry may have more to do with long term changes in market structure than recent attempts to establish competitive wholesale electricity markets

environmental technological change and governance in sustainable development policy abstract an evolutionary economics perspective between technological innovation and public policy is applied to analyse the relationships between technological change sustainable development and industrial competitiveness this leads us to emphasise the fundamental role that firm s strategies vis a vis the endogenisation of technological change can play for giving effect to win win strategies however allowing industrial competition to become the only factor determining win win strategies could lead to locked technological and social options being chosen which do not contribute to overall goals of ecological social and economic sustainability for this reason we introduce as complements to competitiveness the requirement of new forms of governance in pursuit of ecological economic sustainability

technological inefficiency and the skewness of the error component in stochastic frontier analysis this paper concentrates on negatively skewed one sided distributions as an explanation of the occurrence of positive negative skewness in the case of stochastic production cost frontier analysis it takes as an example the binomial distribution that can have negative or positive skew and derives the method of moments estimators

corporate social responsibility business strategy and the environment we examine the concept of firms sacrificing profits in the social interest within the environmental realm with particular focus on the case of the united states by addressing four key questions may they do so within the scope of their fiduciary responsibilities to their shareholders can they do so on a sustainable basis or will the forces of a competitivemarketplace render such efforts and their impacts transient at best do firms in fact frequently or at least sometimes behave this way reducing their earnings by voluntarily engaging in environmental stewardship should firms carryout such profit sacrificing activities i e is this an efficient use of social resources we address these questions through the lens of economics including insights from legal and business scholarship

the efficiency of firms what difference does competition make in cournot oligopoly the efficiency of a firm relative to others determines its market share this relationship gives an incentive to improve efficiency the incentives are greater in markets where firm behaviour is more competitive components of firm efficiency are identified by frontier production function techniques in 19 uk manufacturing sectors technical change average efficiency of each firm relative to the frontier and the efficiency of each firm relative to its own best practice in each period short run declines in market shares and profits induce the firm to improve efficiency relative to its best practice long run differences in efficiency are correlated with differences in gross investment

response of residential electricity demand to price in this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 us states from 1995 to 2007 we estimate a dynamic partial adjustment model using the kiviet corrected lsdv 1995 and the blundell bond 1998 estimators in addition to the lagged dependent variable our equation includes energy prices income cooling and heating degree days and average household size we find that the short run own price elasticity of consumption is similar across ldsv bias corrected lsdv and the variant of the blundell bond where we instrument for price the short run elasticity is the lowest when we use the blundell bond gmm approach that treats the price of electricity as exogenous the long term elasticities produced by the blundell bond system gmm methods are largest and that from the bias corrected ldsv is greater than that from the conventional lsdv from an energy policy point of view the results obtained using the blundell bond estimator where we instrument for price imply that there is room in an electricity system mainly based on coal and gas power plants for discouraging residential electricity consumption and curbing greenhouse gas emissions by imposing a carbon tax

price elasticities of residential electricity demand estimates from household panel data in bangladesh abstract we collect a household level panel dataset to estimate the price elasticities of electricity demand for different types of urban households in bangladesh we use an instrumental variable estimation strategy which exploits exogenous variation in average electricity prices induced by a value added tax shock the results indicate significant heterogeneity in price elasticities by electricity consumption levels we conduct a number of simulations under alternative policy scenarios to illustrate how incorporating the heterogeneous nature of price elasticities into pricing policy can help decrease electricity demand supply mismatch and inequality in electricity consumption the results have important policy implications for developing countries aiming to address major energy issues by implementing tariff reforms

fdi trade and spillover efficiency evidence from china s manufacturing sector using firm data from the 1995 third industrial census of china this paper finds that the presence of foreign ownership has a positive and significant effect on domestic firms productivity moreover trading with more advanced countries helps china gain access to new technology and information which improves its productivity and enables it to compete in international markets it is found that china s imports from oecd and the four asian tigers and exports to oecd have positive effects on domestic firms productivity by dividing industries into high technology gap and low technology gap groups it is found that the spillover effects of fdi are larger for the low technology gap group than for the high technology gap group however the estimation results of the trade induced technology spillover effect support the technology gap learning theory and the significance of importing appropriate technology

morally motivated self regulation 2 this paper focuses on self regulation motivated by altruistic moral concerns the context is one in which individuals can voluntarily self regulate in the presence of opportunities to free ride on the self regulation of their trading partners moral preferences can mitigate free riding but moral preferences can be limited in the sense that they may be weaker the greater the socioeconomic distance from a trading partner and can depend on whether others are expected to reciprocate the scope of self regulation can be increased by moral suasion but individuals can also form organizations to reduce free riding this paper characterizes the scope of self regulation as a function of the form and strength of moral preferences and explains the effectiveness of organizations in expanding that scope moral preferences can be conditional on the actions of others or limited by socioeconomic distance a citizen thus may self regulate when interacting with someone close but not with someone far away moral preferences can also be conditional or unconditional unconditional moral preferences are independent of the action of others whereas with conditional preferences a citizen is more willing to self regulate if other citizens are expected to reciprocate 3

residential energy demand in the united states analysis using static and dynamic approaches abstract the residential sector is the main consumer of energy in the united states and reducing energy consumption is an important goal for policymakers in each state to know how reducing residential energy demand could be achieved this study develops a set of static and dynamic models to investigate and identify the impact of socio economic and demographic characteristics building age energy prices and weather conditions on residential energy demand at the state level from 2005 to 2013 next this study proposes two alternative scenarios to reduce residential energy demand based on the most precise model for every 10 000 dollars of per capita income in each state 1 increasing residential electricity price by 1 cent per kw h and 2 decreasing average building age by 1 in the first scenario the findings indicate that annual residential electricity demand would decrease by 7 3 on average with the highest reductions in washington 11 9 north dakota 10 9 and idaho 9 7 in the second scenario residential gas demand would decrease by an average of 15 8 annually with the highest reduction in connecticut 33 2 followed by new york 33 0 and massachusetts 30 7 these proposed scenarios assist policymakers in optimizing decisions and investments to reduce residential energy consumption

market failure and government failure f or several decades a debate has been raging in development economics on the relative virtues of the free market as opposed to state intervention with the help of analytical models of a market economy the interventionists demonstrate what they consider serious instances of market failure that is the inability of a market economy to reach certain desirable outcomes in resource use the protagonists of free markets on the other hand compile impressive lists of ill conceived and counterproductive policy measures implemented by the governments of different countries at various times leading to wasteful use of resources in their economies this debate inevitably remains inlconclusive the analytical results on market failure do not disappear in the face of the evidence that most governments or for that matter most economies of less developed countries with or without state intervention have performed rather badly when there appears to be scope for imnprovement over the market outcome the search for the appropriate corrective measures goes on some protagonists of government failure question the significance of such market failures others voice skepticism about the ability of governments to take any action in the economy which is not counterproductive but none of them seems to be able to explain why a less developed country like india failed to grow during the first half of this century under a non interventionist colonial adnministration thus while the debate goes on neither side succeeds in convincing the other

short and long run electricity demand elasticities at the subsectoral level a cointegration analysis for german manufacturing industries in this paper we use multivariate cointegration analysis to estimate electricity demand elasticities at the subsectoral industry level this enables us to reap the benefits of lower heterogeneity within the electricity consuming sectors investigated and of retaining additional information otherwise blurred by aggregation the annual data set used covers eight subsectors of the german economy for the period 1970 2007 by employing a cointegrated var model specification and accounting for structural breaks we find cointegration relationships for five of the eight subsectors studied the long run elasticities range between 0 70 and 1 90 for economic activity and between 0 52 and zero for the price of electricity the short run elasticities are estimated by single equation error correction modeling and found to be between 0 17 to 1 02 for economic activity and 0 57 to zero for electricity price granger causality tests indicate that in the long term causality runs from both economic activity and electricity price to electricity consumption while granger causality from electricity price and electricity consumption to economic activity is detected in only two subsectors electricity price is found to be granger caused neither in the long nor the short run finally an impulse response analysis yields plausible results confirming the usefulness of the approach adopted

does environmental performance affect financial performance a meta analysis abstract what do we know about the impact of environmental regulations performance on firm performance after more than three decades of theoretical as well as empirical research the results seem to remain inconclusive some papers suggest that regulations harm firms while others claim that regulations may contribute positively and give an impetus to innovations therefore i examine the heterogeneity in financial environmental performance nexus empirically carrying out a meta regression analysis of 64 outcomes from 37 empirical studies to uncover the underlying factors which can influence the observed variation in the empirical results the results suggest both that the empirical method used matters for the nexus and that the likelihood of finding a negative link between environmental and financial performance significantly increases when using simple correlation coefficients instead of more advanced econometric analysis the results also indicate that the portfolio studies tend to report a negative link between environmental and financial performance this likely reflects the omitted factors in portfolio studies the positive link is found more frequently in common law countries than in civil law countries the results also point to the importance of appropriate time coverage to establish a positive link between environmental and financial performance

sensitivity of price elasticity of demand to aggregation unobserved heterogeneity price trends and price endogeneity evidence from u s data abstract price elasticity estimates of residential electricity demand vary widely across the energy economics and policy literature in this paper we seek to explain these findings using three nationwide datasets from the u s the american housing survey forms eia 861 and the residential energy consumption survey we examine the role of the sample period level of aggregation use of panel data use of instrumental variables and inclusion of housing characteristics and capital stock our findings suggest that price elasticities have remained relatively constant over time upon splitting our panel datasets into annual cross sections we do observe a negative relationship between price elasticities and the average price whether prices are rising or falling appears to have little effect on our estimates we also find that aggregating our data can result in both higher and lower price elasticity estimates depending on the dataset used and that controlling for unit level fixed effects with panel data generally results in more inelastic demand functions addressing the endogeneity of price and or measurement error in price with instrumental variables has a small but noticeable effect on the price elasticities finally controlling for housing characteristics and capital stock produces a lower price elasticity

household demand for electricity the role of market distortions and prices in competition policy abstract this paper examines residential demand for electricity in sri lanka using survey data collected over a five year period between 2011 and 2015 the study finds that the major determinants of demand for residential electricity are the result of price or market distortions i e subsidies socioeconomic variables and energy saving technology the effects of these variables are particularly relevant to competition policy estimated elasticities with respect to average price subsidies under marginal cost pricing subsidies under average cost pricing and income are found to be 0 015 0 021 0 036 and 0 046 respectively we find that demand for electricity is inelastic and is categorised as a normal good however elasticities with respect to subsidy variables are found to be higher than the price variable this implies that under an increasing block rate system any price change used as a policy measure to control electricity consumption will not be effective this is because price changes could alter the subsidy received by the consumer and therefore reverse the objective of the price change further results of this study find that price and elasticities with respect to subsidy variables are relatively higher for low income groups while income elasticity is relatively larger for high income groups

regionally varying and regionally uniform electricity pricing policies compared across four usage categories the objective of our research is to predict how electricity demand varies spatially between status quo regionally uniform electricity pricing and hypothetical regionally varying electricity pricing across usage categories we summarize the empirical results of a case study of electricity demand in south korea with three key findings and their related implications first the price elasticities of electricity demand differ across usage categories specifically electricity demands for manufacturing and retail uses are price inelastic and close to unit elastic respectively while those for agricultural and residential uses are not statistically significant this information is important in designing energy policy because higher electricity prices could reduce electricity demands for manufacturing and retail uses resulting in slower growth in those sectors second spatial spillovers in electricity demand vary across uses understanding the spatial structure of electricity demand provides useful information to energy policy makers for anticipating changes in demand across regions via regionally varying electricity pricing for different uses third simulation results suggest that spatial variations among electricity demands by usage category under a regionally varying electricity pricing policy differ from those under a regionally uniform electricity pricing policy differences in spatial changes between the policies provide information for developing a realistic regionally varying electricity pricing policy according to usage category

a bargaining model of farrell inefficiency abstract an enormous number of empirical papers have estimated technical efficiency the distance of firms inside a frontier following the model of farrell farrell 1957 the measurement of productive efficiency journal of the royal statistical society series a 120 3 253 290 we propose a theory that explains the distance these empirical papers seek to measure the theory is based on the idea that workers can bargain low effort high crew sizes etc if they and the firm have some monopoly power we provide simple theoretical expressions for the empirical measures of technical and allocative efficiency and compare them to those in the statistical literature we also consider the relation between competition and efficiency

environmental regulation and mnes location does csr matter abstract we investigate whether firms with relatively low environmental standards are more often located in countries that are poor corrupt or have weak environmental regulations we find new empirical evidence in favor of the pollution haven hypothesis which states that mnes are transferring their dirty operations to countries with weak environmental regulation our findings suggest that these are not necessarily the poorest or most corrupt countries we establish that mnes with strong social responsibility avoid locating their operations in countries with weak environmental regulation

estimation of elasticity price of electricity with incomplete information abstract the sharp increase in energy prices and growing concern for environmental issues among other things are behind the renewed interest in energy demand estimation however there is scarce academic literature that takes real situation of energy suppliers into account high quality but incomplete data in this paper we propose a useful and rather simple instrument for estimating electricity demand with the incomplete and or imperfect data currently available to suppliers in particular using real expenditure and consumption data on electricity we employ a model of random effects for panel data to estimate residential and industrial electricity demand in spain

generation expansion planning with large amounts of wind power via decision dependent stochastic programming power generation expansion planning needs to deal with future uncertainties carefully given that the invested generation assets will be in operation for a long time many stochastic programming models have been proposed to tackle this challenge however most previous works assume predetermined future uncertainties i e fixed random outcomes with given probabilities in several recent studies of generation assets planning e g thermal versus renewable new findings show that the investment decisions could affect the future uncertainties as well to this end this paper proposes a multistage decision dependent stochastic optimization model for long term large scale generation expansion planning where large amounts of wind power are involved in the decision dependent model the future uncertainties are not only affecting but also affected by the current decisions in particular the probability distribution function is determined by not only input parameters but also decision variables to deal with the nonlinear constraints in our model a quasi exact solution approach is then introduced to reformulate the multistage stochastic investment model to a mixed integer linear programming model the wind penetration investment decisions and the optimality of the decision dependent model are evaluated in a series of multistage case studies the results show that the proposed decision dependent model provides effective optimization solutions for long term generation expansion planning

the variation of productivity within british and german industries unweighted average labor productivities indicate an even larger german advantage over britain than the usual employment weighted averages the difference between these two averages is used to compare the dispersion of productivity within fifteen matched industries with positive correlations between productivity and size in eight of them the dispersion of productivity in britain appears to be higher which is consistent with a long tail of low productivity businesses vulnerable to the single european market british vulnerability in the remaining seven industries is even greater copyright 1992 by blackwell publishing ltd

modelling demand for crude oil products in spain this paper develops an econometric model for the five most important crude oil products demand in spain the aim is the estimation of a range of elasticities of such demands that would serve as the basis for an applied general equilibrium model used for forecasting energy demand in a broader framework the main distinctive features of the system with respect to previous literature are i it takes advantage of monthly information coming from very different information sources and ii multivariate unobserved components uc models are implemented allowing for a separate analysis of long and short run relations uc models decompose time series into a number of unobserved though economic meaningful components mainly trend seasonal and irregular a module is added to such structure to take into account the influence of exogenous variables necessary to compute price cross and income elasticities since all models implemented are multivariate in nature the demand components are allowed to interact among them through the system noises similar to a seemingly unrelated equations model the results show unambiguously that the main factor driving demand is real income with prices having little impact on energy consumption

estimating residential demand for electricity in the united states 1965 2006 abstract this paper examines the residential demand for electricity in the us economy as a function of the per capita income the price of electricity the price of oil for heating purposes the weather conditions and the stock of occupied housing over the period 1965 2006 this paper has two novelties first the occupied stock of houses as a proxy for the stock of electrical appliances and second the identification of a possible equilibrium relationship among the variables is ascertained through the recently advanced ardl approach to cointegration our empirical findings give support to a stable long run relationship implying also short run and long run elasticities whose size and sign are comparable to other similar studies

estimating short and long term residential demand for electricity new evidence from sri lanka this study investigates the short run dynamics and long run equilibrium relationship between residential electricity demand and factors influencing demand per capita income price of electricity price of kerosene oil and price of liquefied petroleum gas using annual data for sri lanka for the period 1960 2007 the study uses unit root cointegration and error correction models the long run demand elasticities of income own price and price of kerosene oil substitute were estimated to be 0 78 0 62 and 0 14 respectively the short run elasticities for the same variables were estimated to be 032 0 16 and 0 10 respectively liquefied petroleum lp gas is a substitute for electricity only in the short run with an elasticity 0 09 the main findings of the paper support the following 1 increasing the price of electricity is not the most effective tool to reduce electricity consumption 2 existing subsidies on electricity consumption can be removed without reducing government revenue 3 the long run income elasticity of demand shows that any future increase in household incomes is likely to significantly increase the demand for electricity and 4 any power generation plans which consider only current per capita consumption and population growth should be revised taking into account the potential future income increases in order to avoid power shortages ill the country

industrial and residential electricity demand dynamics in japan how did price and income elasticities evolve from 1989 to 2014 abstract this study estimates the price and income elasticities of industrial and residential electricity demand in japan with the annual data from 1989 to 2014 a time varying parameter tvp model with the kalman filter is applied to monitor the evolution of consumer behaviors in the post bubble period given the exogenous shock financial crisis in 2008 and the structural breaks electricity deregulation and fukushima daiichi crisis the tvp model can provide a robust estimation of elasticities and can detect the outliers and the structural breaks the results suggest that both industrial and residential consumers become less sensitive to price after the electricity deregulation and the financial crisis and more sensitive to price after the fukushima daiichi crisis especially the industrial sector is less sensitive to price after the retail deregulation by contrast the income elasticities of industrial and residential sector consumers are stable during the examined period results also indicate that a negative relationship exists between the price elasticity of electricity demand and the price level of electricity after the electric sector deregulation some insights on the further electric sector reform and the environmental taxation in japan are also provided

estimation of japanese price elasticities of residential electricity demand 1990 2007 abstract this paper estimates elasticities of japanese residential price electricity from 1990 to 2007 the first difference generalized method of moment estimator is employed to avoid dynamic panel bias which is not considered in most previous studies the results show that while short run elasticities are similar to those in previous studies long run elasticities are significantly lower in our study we also find that the price elasticity of japanese residential electricity consumption is notably affected by income inequality and severe weather based on these results we provide some insights to tailor environmental taxation so as to effectively attain the kyoto protocol