the impact of renewable energy consumption to economic growth a panel data application internationally the importance of renewable energy in the energy mix has been increasingly appreciated the advantages of the renewable energy usage for the world s energy security and the environment are indisputable and much discussed in the literature however its effects on the economic welfare of the countries are yet to be examined fully and described quantitatively the purpose of this paper is to estimate the impact of the renewable energy consumption to economic welfare by employing panel data techniques the results show that the influence of renewable energy consumption or its share to the total energy mix to economic growth is positive and statistically significant from a policy point of view promoting renewable energies bears benefits not only for the environment but also for the economic conditions of the countries

towards a sustainable electrification in ghana a review of renewable energy deployment policies abstract ghana has been facing perennial power rationing over the years due to fuel supply challenges the country s energy system is likely to suffer additional strain from rising energy demand fueled by population growth rapid urbanization and economic development fortunately there are enormous renewable energy resources which can provide sustainable electrification as backbone to socioeconomic development while curbing global warming ghana s energy strategy targets 100 access to electricity and 10 share of sustainable power in national generation mix by 2020 despite the existence of numerous policies and a renewable energy act current contribution of non conventional renewable energy to electricity generation is less than 1 the right mix of policies to address the unique domestic conditions and achieve its specific development goals remains insufficient this study reviews the regulatory framework financing incentives and other provisions of ghana s renewable energy act it critically examines the policy s strengths weaknesses opportunities and treats based on comparative analysis and lessons drawn from failed and successful implementation of similar policies around the world the study also assesses the impact of policy on project development it was found that the performance of ghana s renewable energy policy on grid connected electricity has been poor compared to its target the fundamental reasons for this unsatisfactory performance may be attributed to partial implementation of policies lack of market driven support schemes lack of pricing policy framework weak grid network limited access to funds and inconsistencies in renewable energy development strategies this study proposes the following countermeasures i ghana should comprehensively harmonize renewable energy regulatory and fiscal policies with domestic electricity pricing regime ii market driven support schemes should be prioritized for cost effectiveness and minimum governmental influence these reforms can help eliminate some of the major barriers to sustainable electrification in ghana while the lessons provide a learning curve for other african countries

stabilization of emissions of co 2 a computable general equilibrium assessment a multisector computable general equilibrium model is used to study economic development perspectives in norway if carbon dioxide emissions were stabilized the effects discussed include impacts on main macroeconomic indicators and economic growth sectoral allocation of production and effects on the market for energy the impact of pollutants other than carbon dioxide on emissions is assessed along with the related impact on noneconomic welfare the results indicate that carbon dioxide emissions might be stabilized in norway without dramatically reducing economic growth sectoral allocation effects are much larger a substantial reduction in emissions to air other than carbon dioxide is found yielding considerable gains in noneconomic welfare copyright 1992 by the editors of the scandinavian journal of economics

a review on global wind energy policy with the increasing negative effects of fossil fuel combustion on the environment in addition to limited stock of fossil fuel have forced many countries to inquire into and change to environmentally friendly alternatives that are renewable to sustain the increasing energy demand energy policy plays a vital role to mitigate the impacts of global warming and crisis of energy availability this paper explores the wind energy industry from the point of view of the wind energy policy it is noticed that energy policy could help increasing wind power generation as well as stimulating the energy industry it may be stated that without specific energy policy a country would not be able to solve the acute problems like reducing greenhouse gases ghgs emission scarcity of energy etc this paper discussed the existing successful energy policies for few selected countries based on literatures it has been found that fit rps incentives pricing law and quota system are the most useful energy policies practiced by many countries around the world then status of wind energy policy for malaysia was investigated and compared with few selected countries around the world

policies and legislation driving taiwan s development of renewable energy abstract under the current wave of international responses to the growing threat of climate change taiwan cannot afford to step back from its goal of advancing its renewable energy strengthening its energy self sufficiency and energy security this paper will first analyze the high level dependency structure of taiwan s energy demands then we will explore taiwan current situation in terms of renewable energy development furthermore from an overview of the course of changes and development in taiwan s energy policy highlight the commitment to and aims of taiwan s renewable energy development made by the government at the annual national energy conference fourth we shall analyse technological r d incentives taxes market reforms and other related policy tools fifth in light of public announcements and budgets set in recent years for taiwan s renewable energy research plan highlight main strategies being given impetus by the government sixth the author will discuss the implications of recent significant legal reforms to the development of renewable energy in taiwan and from the correlating aspects of industrial structures and energy consumption take the first steps in emphasizing the urgent need for adjustments to be made to taiwan s industrial structure finally this paper will conclude by examining current policies legislation and strategies which are in place to promote this area in taiwan and discuss the potential competitiveness and future scenarios which the development of renewable energy could mean for taiwan

total factor productivity non neutral technical change and economic growth abstract the traditional approach to productivity analysis relies on the assumptions of constant return to scale neutral technical change and payments to factors according to their marginal productivity intuitively one feels that such simplifications might give biased results specifically in a planned developing economy where the last assumption is most likely violated this study develops a parametric approach to the analysis of total and specific factor productivity which does not rely on the above assumptions and applies it to the industrial sector on iraq we measure the biases in the direction of technical change and analyze their implications for employment problems in ldc s

is the gasoline tax regressive in the twenty first century taking wealth into account abstract poterba 1991a has much influenced the literature on the distributional effects of carbon pricing poterba argues that the incidence of energy environmental taxes across households is better appreciated if the relative tax burdens are measured against total expenditure interpreted as a proxy for lifetime income instead of annual income this way however since the distribution of total expenditure is structurally more uniform the incidence of energy price increases is always less regressive than when annual income is used this outcome is often taken to lessen the relevance of equity concerns regarding carbon pricing almost twenty five years after poterba 1991a piketty 2014 revived the idea that wealth is a dimension of economic welfare constituting an increasingly important source of inequality we show that omitting wealth in measuring ability to pay means underestimating the regressivity of carbon pricing and its inequity towards younger people using household level data and statistical matching we revisit poterba s application and compare the distributional incidence of the us gasoline tax for different measures of ability to pay total expenditure income and wealth adjusted income regressivity is not a reason to forgo carbon pricing as a cost effective approach to climate mitigation but calls for consideration and compensation of the distributional effects

a real option model for renewable energy policy evaluation with application to solar pv power generation in china abstract this study proposes a policy evaluation model from the perspective of government and investors the proposed model which integrates american option method and two factor learning curve method can be used to evaluate the unit decision value and save path rate for renewable energy development and examine the existence of balance point of interest several uncertain factors including non renewable energy cost carbon price renewable energy cost and price subsidy are all considered in this model the model has been applied to evaluate the solar photovoltaic pv power generation in china our empirical results show that real option analysis roa is more effective than net present value analysis npv when handling uncertainty under current level of subsidy the government would suffer loss and the investors could benefit so that it is difficult to achieve the balance of interest during the planning period with the reduction of subsidy rate they can achieve the balance of interest

the development of renewable energy in resource rich region a case in china abstract with the largest population living in rural areas the lack of clean energy supply is an important problem in china and the utilization of renewable energy not only meets the demand of energy but also provides a basis for environmental protection and sustainable development this paper reviews use of clean energy in a resource rich region including the basic principle of the development of recycling agriculture the potential the present status and the future of renewable energy in the region rural areas if the project will be finished there will be 300 000 families benefiting from it and it can bring at least 2 2 108 us dollars revenue increase directly the indirect revenue increase will be 0 15 billion us dollars the environment will be improved and the living standard in jincheng s rural areas is also be greatly improved because of developing biogas project based on the developing status and constraint conditions the solutions to further promote renewable energy projects in this region are also proposed

modeling the causal linkages between nuclear energy renewable energy and economic growth in developed and developing countries abstract this article investigates the causal relationship between two types of energy variables and economic growth using dynamic simultaneous equation panel data models for 17 developed and developing countries our results indicate that there is a unidirectional causality running from nuclear consumption to economic growth in belgium and spain while a unidirectional causality running from economic growth to nuclear consumption is supported in bulgaria canada netherlands and sweden a bidirectional relationship appears in argentina brazil france pakistan and the usa while no causality exists in finland hungary india japan switzerland and the u k second the results for the second nexus among renewable energy and economic growth show that there is a unidirectional causality running from renewable consumption to economic growth in hungary india japan netherlands and sweden while there exist a unidirectional running from economic growth to renewable consumption in argentina spain and switzerland a bidirectional relationship is supported in belgium bulgaria canada france pakistan and the usa while no causality exists in brazil finland and switzerland third we find the existence of a bidirectional causality between nuclear consumption and economic and a unidirectional causality running from economic growth to renewable energy consumption for the global panel

analysis of the policy effects of downstream feed in tariff on china s solar photovoltaic industry abstract the chinese government initiated the feed in tariff fit policy for downstream power generation in august 2013 the effectiveness of the downstream fit policy has attracted the attention of academia and government using the quarterly data of listed solar pv companies between 2009 and 2015 this paper provides an empirical analysis regarding the effects of the downstream fit policy we find that 1 the fit policy has significantly enhanced the inventory turnover of listed pv firms and improved their profitability 2 the fit policy has significant effects on the inventory turnover of midstream companies and mixed industry chain companies mainly engaged in downstream operations 3 fit policy is more favorable towards increasing the inventory turnover of private enterprises our results indicate that the fit policy can have substantial effects on the sustainable development of china s solar photovoltaic industry

application of real options valuation for analysing the impact of public r d financing on renewable energy projects a company s perspective abstract this paper contrasts the financial benefit of grants given to research and development projects with the reduction in managerial flexibility they impose which implies a loss in the value of the project to quantify this loss of value real options analysis has been adopted as the most suitable framework to assess and quantify managerial flexibility this idea is illustrated by the case of a research and development project in renewable energy specifically concentrated solar power our results show that the value added by the grants is less than the nominal incentives received as a result of the loss of flexibility for managers they cannot apply certain options such as deferral nor can they abandon the project therefore a break even grant is proposed that equals the financial incentive with the loss of managerial flexibility under this break even point the grant should be rejected this paper will create awareness for both policy makers and private companies regarding a more accurate assessment of grants to research and development funding as well as provide insights to improve grant schemes without increasing the amount of public funds

economic social and environmental impacts of fuel subsidies a revisit of malaysia abstract subsidizing energy has been widely used but is economically unfavorable the malaysian government has shown strong intention to reduce energy subsidies recently but face challenges to prepare policy instruments to manage the impact this study develops a computable general equilibrium cge model with breakdown of households by income level to evaluate the potential impacts of removing energy subsidies on the malaysian economy it is shown that removing petroleum and gas subsidy would improve economic efficiency and increase gdp up to 0 65 budget deficit would be largely reduced after removing the petroleum subsidies especially when the saved subsidy cost is not budgeted for other expenditure households would be worse off in most scenarios due to higher price level but some compensation policy could make the lowest income group no worse than baseline without harm the economy the reduction in carbon emissions ranges 1 84 6 63 in different scenarios the simulation results suggest malaysia to completely remove all fuel subsidies and use the saved funding to cut budget deficit or spend on education health and other service sector it is also necessary to set a compensation scheme to minimize public resistance and make sure such scheme is affordable

design of an economically efficient feed in tariff structure for renewable energy development abstract evidence suggests albeit tentatively that feed in tariffs fits are more effective than alternative support schemes in promoting renewable energy technologies rets fits provide long term financial stability for investors in rets which at the prevailing market price of electricity are not currently cost efficient enough to compete with traditional fossil fuel technologies on the other hand if not properly designed fits can be economically inefficient as is widely regarded to have been the case under the public utility regulatory policies act of 1978 purpa under purpa too high a guaranteed price led to the creation of so called purpa machines poorly performing generating units that could survive financially only because of heavy subsidies that came at the expense of retail customers similarly because of their adverse impacts on retail electricity rates german fits have been subject to increasing political pressure from utilities and customers in this paper we propose an innovative two part fit consisting of both a capacity payment and a market based energy payment which can be used to meet the renewables policy goals of regulators our two part tariff design draws on the strengths of traditional fits relies on market mechanisms is easy to implement and avoids the problems caused by distorting wholesale energy markets through above market energy payments the approach is modeled on forward capacity market designs that have been recently implemented by several regional transmission organizations in the usa to address needs for new generating capacity to ensure system reliability

carbon markets and technological innovation this paper examines the effects of firm level innovation in carbon abatement technologies on optimal cap and trade schemes with and without price controls we characterize optimal cap and trade regulation with a price cap and a price floor and compare it to the special cases of pure taxation and a simple emissions cap innovation shifts the tradeoff between price and quantity based instruments towards quantitybased emissions trading schemes more specifically an increase in innovation effectiveness lowers the optimal emissions cap and leads to relaxed price controls unless the slope of the marginal environmental damage curve is small because of the decrease in the emissions cap innovation in abatement technologies can lead to a higher expected carbon price so as to provide sufficient incentives for private r d investments the expected carbon price decreases once innovative technologies are widely used

evaluating energy security of resource poor economies a modified principle component analysis approach abstract this study proposes to aggregately measure energy security performance with the principal component analysis in its application of the methodology to four resource poor yet economically advanced island economies in east asia singapore south korea japan and taiwan this study establishes a novel framework to conceptualize energy security the framework incorporates three dimensions vulnerability efficiency and sustainability three indicators being allocated to each dimension the study finds that all the three dimensions are critical for the resource poor economies but have different weights in each of them an urgent task for these four economies is to implement energy efficiency and conservation measures liberalization of electricity sector can be a helpful tool to reduce energy consumption and increase efficiency all of them have been committed to promoting renewable energy development which shall be further expanded in these economies

the causal relationship between electricity consumption and economic growth in the asean countries abstract this paper investigates the causal relationship between electricity consumption and economic growth among the association of south east asian nations asean 4 members namely indonesia malaysia singapore and thailand using modern time series techniques for the period 1971 2002 the results indicate that there is a bi directional causality between electricity consumption and economic growth in malaysia and singapore this means that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption in the two countries however uni directional causality runs from economic growth to electricity consumption in indonesia and thailand without any feedback effect thus electricity conservation policies can be initiated without deteriorating economic side effects in the two countries

an assessment of the greek incentives scheme for photovoltaics abstract after two years of elaboration a new legislation was enacted in 2006 in greece providing an appealing feed in tariff fit scheme for photovoltaics pvs the response of the market was immediate with more than 7947 licenses having been submitted in less than 2 years time the effectiveness however of an incentives scheme cannot be judged solely by the response of prospective investors aim of this paper is to present and discuss a quantitative assessment of this newly introduced fit law in greece with respect to its attractiveness to investors its effectiveness towards launching a new market its cost efficiency and its ability to lift non economic barriers that led to significant delays in the diffusion of res over the last 10 years

renewable energy in eastern asia renewable energy policy review and comparative swot analysis for promoting renewable energy in japan south korea and taiwan abstract japan south korea and taiwan are deficient of domestic fossil energy sources and depend significantly on imported fuels since the oil shock in the 1970s all three countries have promoted renewable energy as an alternative energy source to improve energy security currently renewable energy is being promoted to build low carbon economies this study reviews the development of renewable energy policies and roadmaps it also examines and compares strengths weaknesses opportunities and threats swot of these countries in the context of advancing renewable energy policies and technologies and expanding domestic renewable energy installations as well as strategically positioning themselves in the international renewable energy market as exporters of clean energy technologies through the swot analysis this paper identifies a capacity for additional renewable energy deployment in these countries and highlights the necessity of increased cooperation between the three countries to strengthen their domestic and regional renewable energy sectors and compete in the global renewable energy market in the post fukushima era

real option valuation in renewable energy literature research focus trends and design abstract in light of intensive development of the renewable energy re sector a growing number of academic papers address the complexity of re investment planning and valuation to take account of the high risk profile and irreversibility of re investments researchers have resorted to sophisticated real options ro approaches that enable flexibility to be incorporated into project design in the face of an uncertain environment the variety of different frameworks and models adopted as well as a lack of aggregated analysis of the field suggest a need for a critical review of ro methodology and design in re assessment this study describes the research focus trends and design found in contemporary academic literature devoted to re valuation with a ro approach particular attention is given to ro in project and policy design the results give a comprehensive picture of existing research on the topic thus providing researchers with a solid foundation for further study and indications of directions for future development furthermore the findings provide policymakers and project planners with valuable insights into key aspects of re project and policy design

comparing the feed in tariff incentives for renewable electricity in ontario and germany the development of feed in tariff fit programs to support green electricity in ontario the green energy and green economy act of 2009 and germany the erneuerbare energien gesetz of 2000 is compared the two policies are highly comparable offering similar rates for most renewable electricity technologies major differences between the policies include the level of differentiation found in the german policy as well as the use of a price degression strategy for fit rates in germany compared to an escalation strategy in ontario the german renewable electricity portfolio is relatively balanced compared to ontario where wind power dominates the portfolio at the federal level canada does not yet have a policy similar to the european directive on renewable energy and this lack may impact decisions taken by manufacturers of renewable technologies who consider establishing operations in the province ontario s green energy and green economy act could be benefit from lessons in the german system especially with regard to degression of feed in tariff rates over time which could significantly reduce payments to producers over the course of a contract and in turn encourage greater competitiveness among renewable power providers in the future

development of taiwanese government s climate policy after the kyoto protocol applying policy network theory as an analytical framework abstract given its limited involvement in and recognition by international organizations taiwan is not presently a signatory to the united nations framework convention on climate change unfccc or the kyoto protocol the objective of this study is to analyze how and the extent to which changes in an exogenous factor namely the kyoto protocol and post kyoto climate negotiations affect and ultimately lead to the formulation of and changes in the taiwanese government s climate policy this study applies policy network theory to examine the development of and changes in the taiwanese government s climate policy the results demonstrate that international climate agreements and negotiations play a key role in the development of changes to and transformation of taiwan s climate policy scarce evidence was found in this study to demonstrate that domestic or internal factors affect climate change policy despite its lack of participation in the unfccc and the kyoto protocol taiwan has adopted national climate change strategies action plans and programs to reduce greenhouse gas emissions however these climate policies and measures are fairly passive and aim to only conform to the minimal requirements for developing countries under international climate agreements and negotiations this process results in inconsistent and variable climate policies targets and regulations

using real option analysis for highly uncertain technology investments the case of wind energy technology this study examines the feasibility of using a theoretical model and empirical analysis methods to value renewable energy re investment from perspective of real option analysis roa based on use of a roa approach the re value is evaluated with respect to its ability to conform to the main sensitivity analysis of re investment as well as an empirical method devised to value re investment by using actual data the economic intuitiveness underlying the decision making process for re investment is elucidated while empirical analysis is performed to demonstrate the effectiveness of the options value embedded in current development planning in taiwan for wind energy in addition to revealing the advantages of re development when considering real option analytical results indicate that roa is a highly effective means of quantifying how investment planning uncertainty including managerial flexibility influences re development besides evaluating the value of current re investment this study demonstrates that results of the theoretical model empirical analysis and sensitivity analysis correlate well with each other restated the value of developing re increases when increasing the underlying price time to maturity risk free rate and volatility conversely the value of developing re decreases when increasing the exercise price

governmental intervention approaches to promote renewable energies special emphasis on japanese feed in tariff abstract almost all countries have issued laws and regulations to promote renewable energy re however the applications and motivations of such laws as well as achievements have been different currently the japanese government has announced its targets to expand the electricity feed in tariff scheme for solar power along with other energy sources within two years to meet the goal set by the japanese prime minister who in the 15th united nations climate change conference cop15 held in september 2009 proclaimed to cut 25 of greenhouse gas ghg emissions from the 1990 levels by 2020 in this paper the current japanese energy policies and measures for promoting re in comparison to popular methods followed worldwide are explored furthermore a least cost feed in tariff lcfit simulation model for japanese case was developed to calculate the optimal mix of technologies to reach certain targets the lcfit also calculates the tariff that should be proposed for each technology and the total cost for the program with and without a carbon tax and estimates the premium added to the bill of the customer every month

taiwan s renewable energy strategy and energy intensive industrial policy abstract since taiwan is a densely populated island with almost no fossil energy resources the development of renewable energy is an important issue in the past industries with low energy productivity were encouraged for economic development but this structure of low energy productivity industries should now be adjusted to promote renewable energy and energy efficiency by analyzing the gross domestic product together with the energy consumption and co2 emissions for major industries in taiwan this paper considers what kinds of industries should be encouraged or discouraged for taiwan s future development in addition the recommendations for taiwan s renewable energy and energy intensive industrial policy are presented

optimizing the level of renewable electric r d expenditures using real options analysis abstract one of the primary objectives of the united states federal non hydro renewable electric r d program is to promote the development of technologies that have the potential to provide consumers with stable and secure energy supplies in order to quantify the benefits provided by continued federal renewable electric r d this paper uses real option pricing techniques to estimate the value of renewable electric technologies in the face of uncertain fossil fuel prices within the real options analysis framework the current value of expected future supply from renewable electric technologies net of federal r d expenditures is estimated to be 30 6 billion of this value 86 can be attributed to past federal r d efforts and 14 can be attributed to future federal r d efforts assuming continued federal r d funding at 300 million yr in addition real options analysis shows that the value of renewable electric technologies increases as current and future r d funding levels increase this indicates that the current level of federal renewable electric r d funding is sub optimal

the renewable energy growth and environmental kuznets curve in turkey an ardl approach abstract this study examines the potential of renewable energy sources in reducing the impact of ghg emissions in turkey using autoregressive distributed lag ardl approach the relationship between co 2 emissions electricity generated using renewables and gdp in turkey has been investigated during 1961 2010 moreover the validity of environmental kuznets curve ekc hypothesis has been tested model results show that the coefficient of electricity production from renewable sources hydro power excluded with respect to co 2 emissions is negative and significant in the long run although this effect is positive and statistically significant in the short run since the ecm term is 0 82 it becomes negative around 1 year this means that renewable electricity production will contribute to environmental enhancement with a one year lag our results also suggest a u shaped ekc relationship between per capita ghgs and income estimations from a long run regression show that although the peak point of gdp per capita has been calculated to be 9920 us dollars this turning point was outside of the observed sample period therefore ghg emissions start to decrease with an increase in per capita gdp in the following years model research implies the potential and the importance of renewable energy sources in controlling of emissions in turkey

structural changes and sustainability a selected review of the empirical evidence abstract the paper offers a review of selected topics in the empirical literature on structural change and sustainability we focus on aspects of structural change that directly affect emissions and energy intensity changes of the sectoral composition of economies trade and international fragmentation of production technological change and innovation and demand we identify several empirical facts first only a few countries have experienced a decoupling between growth and emissions due to proportionately faster growth rather than greater energy efficiency second the long term shift from manufacturing to services has not led in all cases to the de materialisation of economies and a lower environmental burden exploitation of energy efficiency increases depends on the ability of the service sectors to incorporate technical changes to reduce energy intensity third global trade and energy and emissions intensity trends support the pollution haven hypothesis which predicts displacement of the environmental burden from developed to emerging countries the pursuit by developing countries of a long term strategy of trading jobs for emissions is likely to exacerbate the asymmetry related to emissions intensities between developed and less developed economies the review should inform debate on environmental policy within the broader context of innovation and development policies

how sensitive is nordhaus to weitzman climate policy in dice with an alternative damage function abstract the damage function in the famous climate economy model dice has received much criticism weitzman 2010 has proposed an alternative approach that gives more serious attention to climate change impacts for larger temperature increases we calculate optimal climate policy with dice using this approach optimal emission abatement trajectories turn out to be very sensitive to the damage specification we summarise the difference between the associated optimal abatement costs in npv terms

compound real options valuation of renewable energy projects the case of a wind farm in serbia abstract renewable energy sources have become a very important issue due to environmental and sustainability concerns in addition most renewable energy electricity generation res e projects are characterized by considerable uncertainty and sequential decision making these projects net present value npv is very often close to zero which renders them a good candidate for the application of real options valuation methodology of investment project appraisal this paper examines the real options valuation of a potential onshore wind farm project in serbia the binomial tree model spans a 15 year period consisting of a 2 year investment period and a 13 year operating period the first 12 years of which are protected by feed in tariffs according to local renewable energy regulations the authors examine a multi phased compound nested path dependent real option consisting of mutually exclusive options a sequential option to invest as well as expand repower contract and abandon options volatility which is calculated by means of a monte carlo simulation according to the logarithmic present value returns approach shows predominant sensitivity to the capacity factor simulated with the rescaled weibull s probability distribution the final binomial tree results show that the proposed sequence of options increases project value by transforming higher risk and lower return in the initial discounted cash flow model to lower risk and higher return in the ro model this paper contributes to the existing literature in at least two ways it presents in depth analysis of the real option application to the res e project and provides decision makers with sophisticated tool for improving strategic thinking capital budgeting and decision making processes

enhancing renewable and sustainable energy development based on an options based policy evaluation framework case study of wind energy technology in taiwan global warming and climate change have shifted the focus of industrial development towards low carbon renewable energy re as evidence by global efforts to develop re based sustainable energy policies however the generally cost ineffective nature of re investments explains continued governmental subsidies and draft assistance measures to encourage related industrial development reduce research and development r d costs and increase innovativeness besides measures to accelerate supply and reduced demand for energy sustainable energy policies must enact thoroughly planned legal and regulatory mechanisms notable examples of establishing a legal basis for a low carbon society in taiwan include the energy management act renewable energy development bill greenhouse gas reduction act draft and energy tax act draft however such legislative efforts occasionally conflict or compete with each other warranting further integration additionally re technologies are characterized by high r d costs long term planning and high investment risks therefore based on global trends in wind power development and related policy planning this study analyzes the feasibility of implementing management strategies in the development process and the correlations between such strategies additionally the achievements polices functions mechanisms promotion measures and future plans for related renewable and sustainable energy laws in taiwan is thoroughly reviewed an options based policy evaluation framework is also constructed based on governmental administrative considerations moreover the characteristics of options that lead to unforeseen circumstances during the planning of re development policies are discussed allowing us to derive real time response measures with a decision making value results of this study provide a valuable reference for governmental efforts to evaluate the merits and limitations of related policies concisely ultimately facilitating the formulation of re development policies

optimal design of subsidy to stimulate renewable energy investments the case of china this paper proposes a real options model for estimating the optimal subsidy for renewable energy power generation project by using stochastic process to describe the market price of electricity co2 price and investment cost two indicators i e project value and threshold value are used to derive the optimal subsidy the least squares monte carlo simulation method is used to solve the model the proposed model is used to empirically evaluate the optimal level of subsidy for solar photovoltaic power generation in china the results show that carbon emission trading scheme helps reduce subsidy unit generating capacity market price of electricity co2 price and the volatility of investment cost are negatively related with subsidy whereas investment cost and the volatility of electricity price and co2 price are positively related with subsidy it is suggested that chinese governments take some measures e g promoting technological progress establishing a nationwide carbon emission trading market promoting the competition in renewable energy industry as well as maintaining the stability of co2 price and electricity price to reduce the required subsidy

a real option analysis of investments in hydropower the case of norway abstract this paper presents a valuation study of hydropower investment opportunities in the norwegian context according to nve norwegian water resources and energy directorate the regulator there is a potential of 39 twh not yet developed generation in a normal year is approximately 120 twh by using the conceptual real option framework of dixit and pindyck 1994 investment under uncertainty princeton university press princeton nj one can estimate the value of investment opportunities to nok 11 million gwh eur 1 4 million gwh furthermore the optimal trigger price for initiating an investment based on electricity forward prices is calculated to nok 0 32 kwh eur 0 04 kwh the analysis shows consistency between real option theory and aggregate investment behaviour in norwegian hydropower

a real options evaluation model for the diffusion prospects of new renewable power generation technologies this study presents a policy planning model that integrates learning curve information on renewable power generation technologies into a dynamic programming formulation featuring real options analysis the model recursively evaluates a set of investment alternatives on a year by year basis thereby taking into account that the flexibility to delay an irreversible investment expenditure can profoundly affect the diffusion prospects of renewable power generation technologies price uncertainty is introduced through stochastic processes for the average wholesale price of electricity and for input fuel prices demand for electricity is assumed to be increasingly price sensitive as the electricity market deregulation proceeds reflecting new options of consumers to react to electricity price changes such as time of use pricing unbundled electricity services and choice of supplier the empirical analysis is based on data for the turkish electricity supply industry apart from general implications for policy making it provides some interesting insights about the impact of uncertainty and technical change on the diffusion of various emerging renewable energy technologies

optimal climate policies in a dynamic multi country equilibrium model abstract this paper develops a dynamic general equilibrium model with an arbitrary number of different regions to study the economic consequences of climate change under alternative climate policies regions differ with respect to their state of economic development factor endowments and climate damages and trade on global markets for capital output and exhaustible resources our main result derives an optimal climate policy consisting of an emissions tax and a transfer policy the optimal tax can be determined explicitly in our framework and is independent of any weights attached to the interests of different countries such weights only determine optimal transfers which distribute tax revenues across countries we infer that the real political issue is not the tax policy required to reduce global warming but rather how the burden of climate change should be shared via transfer payments between different countries we propose a simple transfer policy which induces a pareto improvement relative to the laissez faire solution a calibrated example quantifies pareto improving transfers between rich and poor countries

renewable energy diffusion in asia can it happen without government support the dramatically increasing population of asia necessitates equally as dramatic increase in energy supply to meet demand rapidly increasing energy demand is a major concern for asian countries because the increase in demand is being met through the increased use of fossil fuel supply largely domestic coal and imported fuel renewable energy supply presents a lower emission pathway that could be a viable option for steering off the higher emissions path however several market economic institutional technical and socio cultural barriers hinder countries in moving from high to low emission pathway following a discussion on the rising demand for energy in asia and the prospects of partly satisfying it with renewable energy we outline the reasons for government support to tackle the barriers for widespread diffusion of grid based renewable energy additionally we also discuss workable models for strategic government intervention to support diffusion of grid based renewable energy in asia

on the causal dynamics between economic growth renewable energy consumption co2 emissions and trade openness fresh evidence from brics countries abstract the current study investigates the causal relationship between economic growth and renewable energy consumption in the brics countries over the period 1971 2010 within a multivariate framework the ardl bounds testing approach to cointegration and vector error correction model vecm are used to examine the long run and causal relationships between economic growth renewable energy consumption trade openness and carbon dioxide emissions empirical evidence shows that based on the ardl estimates there exist long run equilibrium relationships among the competing variables regarding the vecm results bi directional granger causality exists between economic growth and renewable energy consumption suggesting the feedback hypothesis which can explain the role of renewable energy in stimulating economic growth in brics countries

analysis on energy intensive industries under taiwan s climate change policy abstract this study addresses the planning and implementation of energy industry and carbon economy policies concerning the development of the taiwan s energy intensive industries from perspective of climate change as a newly industrialized country taiwan attaches greater importance to the development of green energy and low carbon industries in cooperation with global pressure for carbon reduction due to climate changes through energy and industrial conferences thus in the past year the taiwanese government constructed four laws concerning energy and carbon reduction in order to drive the green energy industry furthermore it plans to reduce current carbon emission benchmarks nevertheless statistical analysis found that in the last decade energy intensive industries have presented structural unbalance regarding energy consumption co 2 emissions energy intensity contributions to the gdp and product value industries in the industrial sector have high energy consumption high carbon emissions and increase total domestic consumption and carbon emissions which have disproportionate contributions to industrial added value nevertheless the government continues to approve investments for such energy intensive industries and results in continuous increases in energy consumption and carbon emissions this contradictory phenomenon indicates that newly industrialized countries rely on a manufacturing economic structure which is difficult to adjust and violates the trends of a global low carbon economy hence the government must examine and adjust such unbalanced industrial structures where such adjustments are executed in a fair and just manner and encourage the development of high value added measures for low carbon manufacturing and service sectors to become equal with competitors in a global economy

short term generation asset valuation a real options approach this paper discusses using real options to value power plants with unit commitment constraints over a short term period we formulate the problem as a multistage stochastic problem and propose a solution procedure that integrates forward moving monte carlo simulation with backward moving dynamic programming we assume that the power plant operator maximizes expected profit by deciding in each hour whether or not to run the unit that a certain lead time for commitment and decommitment decisions is necessary to start up and shut down a unit and that these commitment decisions once made are subject to physical constraints such as minimum uptime and downtime we also account for the costs associated with starting up and shutting down a unit last we assume that there are hourly markets for both electricity and the fuel used by the generator and that their prices follow ito processes using numerical simulation we show that failure to consider physical constraints may significantly overvalue a power plant

socio economic development and electricity access in developing economies a long run model averaging approach abstract access to electricity continues to be a popular subject in empirical studies however the choice of key factors related to electricity access in the literature to date has been ad hoc due to the lack of a theoretical framework this paper adopts a bayesian model averaging bma approach to selects important factors related to electricity access from 26 socioeconomic indicators using a sample of 48 developing countries and reveal their long term relationship with electricity access the bma approach allows us to identify the optimal empirical model when a theoretical foundation is not available moreover it allows us to address the relative importance of variables using posterior inclusion probabilities and thus has clear policy relevance our results show that access to finance education economic development infrastructure and industrialisation are positively related to electricity access in the long run although the long run relationship does not indicate causality it shows that to maintain this relationship policy adjustments against any deviations from the relationship are needed our study suggests that electrification needs not only economic educational and infrastructural development but also private sector participation governments commitment and political will and integration with poverty reduction and other development schemes

willingness to pay for renewable energy investment in korea a choice experiment study abstract renewable energy sources are considered as alternatives for coping with the high price of oil and global warming the korean government has set a target that 11 of the total primary energy supply should be obtained through renewable energy sources until 2030 in order to develop proper policies for renewable energy investment it is necessary to analyze the benefits of renewable energy investment based on households willingness to pay this study attempts to apply a choice experiment ce for assessing renewable energy investment in korea moreover we employ a multinomial probit mnp model to relax the assumption that all respondents have the same preferences for the attributes being valued which is usually required in empirical ce studies an mnp model allows the most flexible pattern of error correlation structure the results reveal that the korean public puts a value on the protection of wildlife reduction of pollution and increased employment opportunities on the other hand respondents do not derive significant values from the improvement of landscapes this study is expected to provide policy makers with useful information for evaluating and planning policies related to renewable energy investment

the opportunity cost of climate policy aquestion of reference the cost of climate policy depends on the no policy alternative without which the opportunity cost of climate action cannot be determined this reference path has to reflect the current failure in the market for carbon emissions due to a negative externality private investment decisions do not consider the climate damage they entail agents overinvest in conventional capital and underinvest in climate capital internalization of climate damage lowers the private return to capital agents reduce investment in favor of mitigation and consumption optimal climate mitigation increases welfare of the present and the future simulation of the inefficient no policy scenario in dice 07 confirms that this point numerically author s abstract

renewable energy and growth evidence from heterogeneous panel of g7 countries using granger causality abstract in this paper we examine the causal relationship between renewable energy consumption and economic growth across the g7 countries using annual data for the period of 1990 2011 by employing the causality methodology proposed by emirmahmutoglu and kose 2011 8 we investigate if there is a causal relationship between the variables the advantage of this methodology is that it takes into account possible slope heterogeneity and cross sectional dependency in a multivariate panel the empirical results support the existence of a bi directional causal relationship between economic growth and renewable energy for the overall panel however looking at the individual results for each country the neutrality hypothesis is confirmed for canada italy and the us while for france and uk there is a unidirectional causality from gdp to renewable energy and the opposite for germany and japan

simultaneous attainment of energy goals by means of green certificates and emission permits abstract we discuss the analytical effects of introducing emission permits and green certificates and the corresponding quotas as regulatory mechanisms to respectively reduce emissions from electricity production and ensure a certain deployment of renewable energy the different case studies in this paper show that both instruments can be used in order to reach an emission goal or a goal of renewable energy however the combination of these instruments and the way they are used is shown to be important for the price faced by consumers it is shown that the effect on the consumer price is not an unambiguous increase with the introduction of a green quota there is a choice between quotas leading to a lower consumer price and quotas leading to a higher consumer price as a result of this it is shown that it is always optimal to reach a renewable energy deployment goal by the use of green certificates however to reach an emission goal it is sometimes most favourable with respect to consumer prices to use green certificates and sometimes to use emission permits

land use dynamics and the environment we build a benchmark framework to study optimal land use encompassing land use activities and environmental degradation we focus on the spatial externalities of land use as drivers of spatial patterns even if land is immobile by nature location s actions affect the whole space through pollution which flows across locations resulting in both local and global damages in contrast to the previous literature on spatial dynamics we prove that the social optimum problem is well posed i e the solution exists and is unique taking advantage of this result we illustrate the richness of our model by means of a numerical analysis considering a global dynamic algorithm we find that our model reproduces a great variety of spatial patterns related to the interaction between land use activities and the environment in particular we identify the central role of abatement technology as pollution stabilizer allowing the economy to achieve stable steady states that are spatially heterogeneous

simulating price patterns for tradable green certificates to promote electricity generation from wind abstract this article uses computer simulation to anticipate the price dynamics in a market for tradable green certificates tgcs these markets have been used in europe to promote generation of electricity from renewable resources like wind similar markets have been proposed in the united states of america usa where the certificates are called renewable energy credits recs the certificates are issued to the generating companies for each megawatt hour of renewable electricity generation the companies may sell the certificates in a market and the revenues from certificate sales provide an extra incentive to invest in new generating capacity proponents argue that this market based incentive can be designed to support government mandates for a growing fraction of electricity generation from renewable sources in the usa these mandates are set by the states and are known as renewable portfolio standards rps we simulate the price dynamics of a market designed to support an aggressive mandate for wind generation in the northwestern usa the simulations show that the certificate price climbs rapidly to the cap in the early years after the market opens investors then react to these high prices with construction of new wind capacity after a few years wind generation meets and then exceeds the requirement we show that this pattern appears again and again when the simulations are repeated with wide variations in the estimates of behavioral parameters we use the model to study the impact of different trading strategies by the wind companies and by the distribution companies we also study the simulated market response if the usa adopts the carbon allowance market envisioned in the climate stewardship act the article concludes with recommendations for policy makers involved in tgc market design

the social cost of carbon emissions seven propositions determining the social cost of carbon emissions scc is a crucial step in the economic analysis of climate change policy as the us government s recent decision to use a range of estimates of the scc centered at 77 tc or equivalently 21 tco2 in cost benefit analyses of proposed emission control legislation underlines this note reviews the welfare economics theory fundamental to the estimation of the scc in both static and intertemporal contexts examining the effects of assumptions about the typical agent s pure rate of time preference and elasticity of marginal felicity of consumption production and mitigation technology and the magnitude of climate change damage on estimates of the scc we high light three key conclusions i an estimate of the scc is conditional on a specific policy scenario the details of which must be made explicit for the estimate to be meaningful ii the social discount rate relevant to intertemporal allocation decisions also depends on the policy scenario and iii the scc is uniquely defined only for policy scenarios that lead to an efficient growth path because marginal costs and benefits of emission mitigation diverge on inefficient growth paths we illustrate these analytical conclusions with simulations of a growth model calibrated to the world economy authors abstract

risk constrained self scheduling of hydro wind units for short term electricity markets considering intermittency and uncertainty abstract in view of the intermittency and uncertainty associated with both the electricity production sector of restructured power system and their competitive markets it is necessary to develop an appropriate risk managing scheme so that it is desirable to trade off between optimum utilization of intermittent generation resources i e renewable energy resources uncertain market prices and related risks in order to maximize participants benefits and minimize the corresponding risks in the multi product market environment the main goal of this paper is to investigate risk management by introducing a novel multi risk index to quantify expected downside risk edr which is caused by both the wind power and market price uncertainties value at risk var method is used to assess the mentioned risk issue by the proposed weighted edr so that an optimal trade off between the profit and risk is made for the system operations also the roulette wheel mechanism is employed for random market price scenario generation wherein the stochastic procedure is converted into its respective deterministic equivalents moreover the autoregressive integrated moving average arima model is employed to characterize the stochastic wind farm wf generation by predetermined mean level and standard deviation of wind behavior as well as temporal correlation the problem is formulated as a mixed integer stochastic framework for a hydro wind power system scheduling and tested on a generation company genco

assessment of the feed in tariff mechanism for renewable energies in taiwan abstract due to taiwan s lack of natural resources dependence on imported energy and pursuit of sustainable development renewable energies are extremely important for taiwan s future energy supply since taiwan s feed in tariff fit is still in its initial stage one must examine whether the current system is compatible with a well designed fit scheme this study examines the main features of taiwan s fit system and assesses design options using several criteria additionally one of the most important elements of a fit scheme namely a tariff system is discussed taiwan s fit scheme has the design options required by well functioning fits and the guaranteed return tariff system coincides with the spirit underlying leading global fits however many issues such as setting goals by stages refinement of the tariff calculation methodology and elimination of other non economic barriers must be addressed to achieve future developmental goals and green industry growth

evaluation of r d investments in wind power in korea using real option abstract in recent years many countries put an emphasis on the development and deployment of renewable energy to cope with the global environmental crisis such as depletion of fossil energy climate convention to control emissions of greenhouse gases among the various new and renewable energy sources the korean government selected wind power energy as one of the core areas for r d investments in this paper we evaluate the economic value of the investment in wind power energy r d in korea and optimal deployment timing of wind power technology by using the real option approach the real option model adopted in this paper assumes that a decision maker has a compound option to abandon deployment or continue the r d as a result by using empirical data of korea it is found that there exists a considerable amount of positive economic value of investments in wind power energy r d

solar electricity development and policy support in ghana abstract limited fossil resources the continuous increment in fuel prices and severe environmental problems require new sustainable electricity generation options which utilize renewable energies solar photovoltaic generation is a proven renewable energy technology and has the potential to become cost effective in the future for it produces electricity from the solar radiation in ghana the electricity demand is rapidly increasing at a rate of 10 annually in the attempt to change the conventional energy intensive economical development and its negative impact on the environment the government has begun to support the development of the solar photovoltaic technology strongly in this paper the state of solar photovoltaic the challenges facing the industry the potential of the technology the policies and strategies to promote development of the technology have been presented

the interface between environmental and trade policies last march i gave the frank paish lecture to the society under the title economic life in a greenhouse in my lecture i tried both to survey professional opinion as to some of the possible climatic implications of the greenhouse effect and also to draw out the economic consequences which might follow towards the end of my talk i made reference to some preliminary joint work with randy wigle 2 a colleague at wilfrid laurier university in canada on the global consequences of carbon tax schemes designed to limit and or reduce the build up of co2 emissions a key element underlying the greenhouse effect the written version of the lecture consciously does not reproduce the survey material which made up the first part of the lecture instead it elaborates on the issues raised towards the end it incorporates the work by randy wigle and myself and offers some thoughts on what seems to be a growing issue for the iggos namely the consequences for the international trading system of interactions between trade issues and both future global and current national environmental policies what follows emphasises that if they occur in the next few decades global policy responses3 carbon taxes tradeable permit schemes to environmental concerns will almost certainly have large economic effects among these are likely to be significant effects on trade patterns and trade volumes large interregional effects will also accompany such policies depending upon how such policies are implemented also the i99os may see a growing use of trade measures to achieve objectives set for environmental policies environmental policies towards such countries as brazil the philippines and others where deforestation is a concern may increasingly take the form of threatened trade sanctions unless compliance with global environmental policy objectives occurs 4

a review on promoting share of renewable energy by green trading mechanisms in power system abstract in order to promote the development of renewable energy power generation many countries have issued corresponding policies meanwhile some green trading mechanisms have been implemented in power industry and this paper has mainly presented a review on promoting share of renewable energy by green trading mechanisms in power system with a focus on promotion effects of three mechanisms feed in tariff renewable portfolio standard and emission trading scheme apart from a review summaries comparisons and an outlook for future study are also presented our review suggests that feed in tariff and renewable portfolio standard can effectively increase the share of renewable energy power and lead to renewable resource diversity in addition emission trading also provides stimulus for development of renewable energy besides mitigation of carbon emission

the progressive inefficiency of replacing renewable obligation certificates with contracts for differences in the uk electricity market abstract this paper looks at the emerging risk return profile for new renewable assets as a conventional wholesale electricity market progressively decarbonises using a detailed fundamental model of price formation risks under increasing replacement of fossil fuel facilities with onshore and offshore wind we show that the risk return profile becomes less attractive over time and may therefore need sustained and possibly increasing policy support furthermore we show that green certificate trading may become progressively more attractive as a supplementary support to wholesale prices compared to fixed feed in tariffs this is because the increasingly negative correlation between renewable output and wholesale prices reduces its revenue risk compared to fixed feed in tariffs if other factors remain constant and thereby improves conventional financial performance risk metrics in particular this suggests that the recent energy policy change in britain to move away from green certificates and into contracts for differences may have been ill founded

why is south korea s renewable energy policy failing a qualitative evaluation abstract this study explores the causes of the south korean government s failure to successfully deploy its renewable energy policy despite the south korean government s ongoing efforts since 2002 to promote the deployment of renewable energy the established deployment target has not been met and the share of renewable energy supply in total primary energy supply is poor compared to peer countries with a similar level of economic development therefore we attempt to find the causes of this policy failure using qualitative evaluation methods through the analyses conducted using focused interviews and secondary data we found that the domination of the fossil fuel and nuclear power industry s interests inconsistent policy shifts policy design that lacks sufficient support schemes poorly coordinated government activities and unsystemic and untimely monitoring and feedback have led to the failure of renewable energy deployment policies in south korea to overcome these problems we suggest that the south korean government should set more ambitious policy goals establish a new independent organization that focuses on energy policy issues use a varied policy mix and secure political support from diverse policy actors

renewable energy consumption economic growth nexus for china abstract the aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in china for the period 1977 2011 autoregressive distributed lag approach ardl to cointegration and johansen cointegration techniques are employed by including intermittent variables namely carbon dioxide emissions and labor we also employed granger causality test in order to determine the direction of the causality among the variables the results show that there is a bi directional long term causality between renewable energy consumption and economic growth this finding implies that growing economy in china is propitious for the development of renewable energy sector which in turn helps to boost economic growth we also find that labor influences renewable energy consumption in the short term however there is no evidence of long or short run causality between carbon emissions and renewable energy consumption this implies that actual level of renewable energy in china is still insignificant and not considerably exploited in order to contribute to the mitigation of carbon dioxide emissions

the main support mechanisms to finance renewable energy development considering that the major part of greenhouse gases is carbon dioxide there is a global concern aimed at reducing carbon emissions additionally major consumer countries are looking for alternati

impacts of increasing renewable energy subsidies and phasing out fossil fuel subsidies in china abstract subsidies to fossil fuel consumption have made china s energy system fragile and unsustainable it is necessary for china to reform fossil fuel subsidies and reflect the resource cost and environmental cost in energy prices considering the life cycle external costs this paper estimates the scale of fossil fuel subsidy and the true cost of renewable energy in 2010 and evaluates impacts of increasing renewable energy subsidies and phasing out fossil fuel subsidies on macro economy and energy system in china based on scenario analysis simulation results show that the negative impacts on economic growth can be reduced from 4 460 to 0 432 if only 10 of fossil fuel subsidies were removed increasing subsidies for renewable energy has positive impacts on macroeconomic variables although the economic benefits per unit of subsidies for renewable energy are lower than those for fossil fuels by 0 06 0 19 cny the revenue gap can be narrowed by shifting more subsidies from fossil fuels to renewables increasing subsidies for renewable energy helps optimize china s energy system in three ways the first is making energy consumption structure cleaner the second is improving energy efficiency and the third is addressing the problem of imbalanced distribution and consumption of energy

energy sustainability from analysis of sustainable development indicators a case study in taiwan abstract as taiwan has a dense population and only limited natural resources the government began actively establishing a taiwan s sustainable development indicators tsdi system in 2003 which was developed with reference to the pressure state response psr framework to evaluate the progress towards sustainability energy is a very important factor in leading to sustainable development at the national level however there are only two indicators concerning the energy sustainability in the tsdi system this paper summarizes the current status of energy supply energy consumption carbon dioxide co 2 emissions and renewable energy production since the year 2000 the updated information on the tsdi was also addressed and analyzed to imply the progress towards energy sustainability during 2000 2008 finally the weighted sum method was proposed to make an analysis of energy sustainability from taiwan s renewable energy production showing that this country has experienced a significant progress toward energy sustainability in recent years

renewable energy in five south east asian countries review on electricity consumption and economic growth abstract the present study is an archival statistical overview of the possibility of renewable energy production in five south east asian countries and their economic capacity the five south east asian countries under review are the philippines thailand malaysia indonesia and singapore all of which have a combined population of 420 million this number is a little less than the population of 25 european countries these five countries have created a large market in the world and have enjoyed significant economic growth in recent years tropical climate in the region facilitates the potential for using clean and green energies this article clarifies the effective relation between energy capacities and economic indices in these countries and analyzes the results using a survey the paper shows that despite the shortage of energy in these countries brought by their fast economic growth the share of renewable energy in energy production is constantly declining and more reliance is still placed on fossil fuels for energy production

economics and climate change integrated assessment in a multi region world this paper develops a model that integrates the climate and the global economy an integrated assessment model with which different policy scenarios can be analyzed and compared the model is a dynamic stochastic general equilibrium setup with a continuum of regions thus it is a full stochastic general equilibrium version of rice nordhaus s pioneering multi region integrated assessment model like rice our model features traded fossil fuel but otherwise has no markets across regions there is no insurance nor any intertemporal trade across them the extreme form of market incompleteness is not fully realistic but arguably not a bad approximation of reality its major advantage is that along with a set of reasonable assumptions on preferences technology and nature it allows a closed form model solution we use the model to assess the welfare consequences of carbon taxes that differ across as well as within oil consuming and producing regions we show that surprisingly only taxes on oil producers can improve the climate taxes on oil consumers have no effect at all the calibrated model suggests large differences in views on climate policy across regions

assessing output performance of information technology service industries productivity innovation and catch up abstract the purpose of this paper is to assess the output performance of information technology it service industries of twelve organization of economic cooperation and development oecd countries over the years from 2000 to 2011 we use malmquist productivity index mpi as the performance metric and stochastic production frontier spf as the measurement approach we then decompose mpi into two ingredient components that represent technological change for innovation capability and efficiency change for catch up effort it is found that the it service industries display an impressive annual rate of 7 4 for productivity growth during the study period the parametric decomposition of mpi unveils that almost all of the productivity growth observed is enabled by technological advance made to the production process by it service providers while efficiency change has little effect moreover each country s it service industry demonstrates a distinctive pattern relating to the three measures of productivity growth technological change and efficiency change this observation suggests that each country s it service industry possesses certain strengths that become the sources of its competitive advantage and there are weaknesses that could be targets for performance improvement based on our empirical results we offer practical implications and identify future research topics for performance evaluation of it service and other industries

conceptualization of energy security in resource poor economies the role of the nature of economy abstract this paper studies how energy security is conceptualized in four resource poor advanced island economies singapore south korea japan and taiwan it is found that the energy security conceptualization of the four economies in effect returns to the very original and conventional one stable and reliable energy supply however these economies are different in the level of stability and reliability demanded why are they similar in energy security conceptualization whereas different in the level of stability and reliability demanded adopting documentation analysis comparative study and the varieties of capitalism theory we find that the nature of economy constitutes the decisive factor that shapes energy security conceptualization the coordinated market economies cmes are more concerned about energy supply disruption than the liberalized market economies lmes the paper demonstrates that despite numerous energy security concepts in the literature resource poor economies still adopt the original and conventional one in practice the findings suggest that security of supply is the top measure for resource poor economies to improve their energy security and creating a joint petroleum and lng market would be desirable for the four economies in this study

modeling the long run drivers of total renewable energy consumption evidence from top five heavily polluted countries abstract a boom in renewable energy consumption as a percentage of final energy consumption rec has a significant impact on cleaner production and environmental sustainability however studies on rec as for an individual country case and panel case approach for top emitters are rare against this backdrop this study investigates the long run drivers of rec by using a time series data from 1990 to 2015 the fmols grouped results indicate that economic growth and trade openness increase rec whereas population growth has a negative but significant impact on rec to check for causal links the innovating accounting approach using variance decomposition analysis is applied the results show that there is a unidirectional causality running from economic growth trade openness and population growth to rec further the predictive accuracy of the fmols based econometric output and the bi directional long short term memory bi lstm is analyzed the bi lstm formulated algorithm outperformed the econometric output the bi lstm is utilized to forecast rec to the year 2030 the output from the bi lstm shows that china the us india the russian federation s and japan s rec will hit 11 3395 11 1245 34 6969 2 9097 and 7 4859 respectively the us and japan s rec levels will increase while that of china india and russia federation will decrease as a policy implication new policy directives for china india and the russian federation are required to boost rec levels

energy consumption and economic growth new insights into the cointegration relationship abstract this paper examines the long run relationship between energy consumption and real gdp including energy prices for 25 oecd countries from 1981 to 2007 the distinction between common factors and idiosyncratic components using principal component analysis allows to distinguish between developments on an international and a national level as drivers of the long run relationship indeed cointegration between the common components of the underlying variables indicates that international developments dominate the long run relationship between energy consumption and real gdp furthermore the results suggest that energy consumption is price inelastic causality tests indicate the presence of a bi directional causal relationship between energy consumption and economic growth

renewable energy policies in promoting financing and investment among the east asia summit countries quantitative assessment and policy implications many countries have implemented various policies for renewable energy development ranging from setting power purchase agreements and the legislation of renewable energy requirements to providing incentives and imposing carbon taxes the evaluation of the effectiveness of such policies however is fragmented which raises a need for a comprehensive analysis this paper aims to assess whether and how policies promoting renewable energy investment have achieved the intended goals it employs five broadly defined criteria market uncertainty profitability technology and financial resources to build an index to assess respectively if such policies have helped create a market for renewable energy maximize potential profits reduce risks relating to the investment develop and adopt new technologies and improve the access to financial resources each criterion is reflected by three indicators values of each indicator are converted into ordinal values for analysis the index not only scans comprehensively all relevant renewable energy investment policies in the east asia summit countries but also provides systematic and quantitative measures to compare the effectiveness of policies in these countries with respect to the creation of market the degree of uncertainty the potential of profitability the development and adoption of technology and the accessibility of financial resources

economic growth and climate the carbon dioxide problem in contemplating the future course of economic growth in the west scientists are divided between one group crying wolf and another which denies that species existence one persistent concern has been that man s economic activities would reach a scale where the global climate would be significantly affected unlike many of the wolf cries this one in my opinion should be taken very seriously the present article will first give a brief overview of the climatic implications of economic activity with special reference to carbon dioxide and then will present possible strategies for control a more complete report with references to the literature on climatic change is contained in nordhaus 1976 it is thought that the economic activities which most affect climate are agriculture and energy of these the latter is probably more significant is certainly more easily analyzed and will be discussed here in the energy sector emissions of carbon dioxide particulate matter and heat are of significance for the global climate

energy consumption in china and underlying factors in a changing landscape empirical evidence since the reform period abstract in recent decades the phenomenal growth in the chinese economy has created increasing energy consumption this is the first study analysing energy consumption in china considering economic social and political dimensions of globalisation along with the effects from trade and financial sectors the time period covers the full trajectory since the start of economic reform until recent times in this respect we use the konjunkturforschungsstelle kof globalisation index to explore the dynamic link between economic growth financial development trade and various dimensions of globalisation and energy consumption modern time series econometric techniques are used in establishing stationarity long run dynamics and causality of the series the findings suggest that globalisation decreases energy consumption in the short run but increases it in the long run however the effect of financial development on energy consumption in china is opposite to the globalisation effect on energy consumption granger causality reveals a feedback effect between economic globalisation and financial development globalisation in china can only reduce energy consumption if china develops its financial sector to a greater extent in future china should invest in its financial sector and low carbon energy alternatives to achieve sustainable development prevention of energy shortfalls and cleaner environment would assist in bridging the gap both from social and political aspects to ensure china benefits significantly with high economic growth in this asian century

renewable energy in russia the take off in solid bioenergy abstract triggered by debates on climate change and energy security renewable energy sources are presently high on the political agenda in many countries in this regard russia seems to stand aside worldwide developments until recently russia s enormous potential in renewable energy sources remained poorly utilised however russia s formal commitment to the global climate change regime its new energy strategy 2030 and an increase in wood pellet production suggest a discontinuity this paper investigates and explains the limited progress in the solid bioenergy sector in northwest russia with little russian experience in this sector poor technological knowledge on renewables and inadequate domestic market structures the development of a domestic solid bioenergy sector is far from easy hence northwest russian wood pellet developments cannot be traced back to new federal policies only partly to local demand and stimulation and significantly to foreign drivers major eu demand for wood pellets and intensified collaboration with foreign companies and organisations leading in the field of solid bioenergy research technology and trade have triggered these developments but it is a long way before russia will be released from its fossil fuel addiction as repeatedly promised by governmental officials

innovation and total factor productivity in organic farming this article measures the contribution of innovations to total factor productivity tfp of organic olive farmers by constructing an innovation variable instead of using a time trend technical change is replaced by technical difference and tfp growth becomes tfp difference primary cross section data on organic olive enterprises from a greek region is used in the application of the stochastic frontier profit function farmers are classified into groups according to their innovative profile tfp difference among consecutive innovation groups is decomposed into technical difference and adjustment in innovativeness effects results indicate that more innovative farmers perform better than less innovative ones regarding tfp scores the rate of technical difference is always positive to the formation of tfp difference whereas the adjustment in innovativeness effects varies among the innovation groups nevertheless high tech capital is to a different extent under utilized regardless of the innovation group

the effects of militarization on biofuel consumption and co2 emission abstract the cointegration and causal relation among co2 emissions economic growth militarization and biofuel consumption were tested from 1984 to 2015 period for unite states us the autoregressive distributed lag and three supplementary long run estimators the dynamic ols canonical cointegration regression and fully modified ols were employed to reveal the long run impacts of economic growth militarization and biofuel consumption on co2 emissions toda and yamamoto s mwald and rao f tests were applied to find out the direction of causality the evidence of bi directional causality between biofuel consumption and economic growth between economic growth between militarization and biofuel consumption and co2 emissions and between biofuel consumption and co2 emissions was determined the results of forecast error variance determined 50 1 of the forecast error variance of co2 emissions is explained by the forecast error variance of militarization and 59 4 by energy consumption

what drives carbon dioxide emissions in the long run evidence from selected south asian countries abstract this study empirically investigates the relationship between co 2 emission and four of its potentially contributing factors i e energy consumption income trade openness and population using time series data from 1971 to 2013 on five selected economies of south asia after confirming that all the series are stationary using unit root test process the study incorporates three different and advance panel cointegration tests i e pedroni kao and johansen fisher panel cointegration all the panel cointegration tests confirm that all the variables cointegrated the long run association between the variables is checked using fmols grouped and individual cross section country in the panel the fmols grouped results show that energy consumption trade openness and population increases environmental degradation in the panel countries with exception of income which has negative impact and sounds the existence of environmental kuznet curve between income and emission the innovative accounting approach using variance decomposition test and impulse response function is applied to examine the causality amongst the underlined vectors the results show that there is bidirectional causality between energy consumption and trade openness and uni directional causality running from energy consumption trade openness and population to co 2 emission the results enumerate that the energy consumption and population density will increase in long run and foresee further environmental degradation in the region

overall review of renewable energy subsidy policies in china contradictions of intentions and effects abstract china is vast abundant and particularly plentiful in energy sources due to which it has obtained remarkable achievements on economy however its energy structure is too simple to support the sustainable development of economy as coal still contributes to the majority of energy consumption in china as a consequence renewable energy law was enacted in 2005 and chinese government announced a series of policies to boom renewable energy industry subsidy policy is one of the major forms of these policies this paper aims to present these subsidy policies and to analyze their effects according to relative data in energy industry 2005 2013 to find out the deficiencies and enlighten possible policy improvements the original intentions and abstracts of 5 different levels of subsidy related policies are summarized and the effects in reality are attentively analyzed it can be concluded that subsidy policies have different short term effect on different renewable energies and they all show some negative effect to a certain extent 6 core problems are summarized in this paper and remedy strategies are suggested

a hierarchical cost learning model for developing wind energy infrastructures renewable energy has been increasingly promoted and used to substitute non renewable fossil fuels which cause negative effects on the environment the taiwan statute for renewable energy development has regulated and promoted renewable energy since 2009 a feed in tariff fit for renewable energy is one of the incentives that the government uses to promote the installation of green power generation facilities the price of the electricity feed in tariff is based on the current and future costs of renewable energy generation when analyzing cost trends for renewable energy installation many researchers use a single factor cost learning curve model however past studies indicate that there are multiple factors affecting the overall cost of installing renewable energy hence this research develops a hierarchical installation cost learning model which considers multiple factors to accurately model and forecast wind energy development this research uses wind power development data from taiwan as a case study we identify the cost factors evaluate the learning effects and compare the hierarchical learning curve model to the basic non hierarchical learning curve model the research results show an improved fit between the hierarchical model and the actual data when compared to the basic learning model the study also provides new insights between the wind power learning progression of taiwan and three countries in europe

comprehensive measurement of energy market integration in east asia an application of dynamic principal component analysis abstract the energy market integration emi in east asia has been carried out for over a decade despite the efforts exerted by countries in the region little has been known about the emi progress this paper innovatively applies the dynamic principal component analysis to measure the emi and its evolution in east asia between 1995 and 2011 the emi is measured by using information from all the five dimensions that have been identified in the literature 1 energy trade liberalisation 2 investment liberalisation 3 development of energy infrastructure and its associated institutional arrangements 4 domestic market openness and 5 energy pricing reform results show that although significant progress has been made for emi in east asia there are significant cross country disparities in different aspects moreover we show that further efforts towards emi in general should focus on liberalising national markets first then phasing out fossil fuel subsidies and finally liberalising investment regime since national market liberalisation is the least developed dimensions certain countries that lag behind in emi need to learn from either their past experiences or from other nations and focus their efforts on their relatively weak dimensions

the nobel memorial prize for william d nordhaus william d nordhaus and paul m romer received the 2018 sveriges riksbank prize in economic sciences in memory of alfred nobel this paper surveys nordhaus contributions on integrating climate change into long run macroeconomic analysis for which he was recognized with this prize

wind electricity in denmark a survey of policies their effectiveness and factors motivating their introduction this paper surveys the development of the policies supporting the introduction of wind electricity in denmark in the last 15 years with special attention to the new policy introduced after a 2 year long debate the aim of this paper is to explore the roles of financial support policy certainty and planning constraints in the diffusion of wind electricity in denmark and the reasons prompting the change of the system in the current decade it is discovered that political uncertainty has badly affected the effectiveness of the feed in law in the years immediately after its introduction with regard to the new system it is concluded that the change has been prompted by generous conditions under the feed in law and by the desire to facilitate the modernisation of old turbines it is also concluded that incentive based systems can be more effective than tradable quotas in promoting the modernisation of renewable plants this finding is relevant to the development of energy policy in countries such as germany and spain where the average age of wind turbines is much younger than those existing in denmark

a review of biofuel policies in the major biofuel producing countries of asean production targets policy drivers and impacts since the turn of this century development of biofuels have progressed rapidly in indonesia malaysia philippines and thailand the major biofuels producing countries in the asean association of south east asian nations the article analyses the biofuel polices underlying drivers and way forward for sustained biofuel development in these countries favorable regulatory and economic mechanisms have played an important role in the production utilization and market penetration of biofuels in these countries a large variety of biofuel support policies are in place ranging from policy targets blending mandates tax incentives and other financial schemes to stimulate the development and adoption of biofuels indonesia is leading the region in biodiesel production and thailand is leading in ethanol production though each of these countries have had occasional setbacks in their production in totality there has been positive growth in biofuel production and an upward trend in future is likely with increased demand consumption enforcement of mandates and realization of policy targets the biofuel development of these countries is motivated by several factors mainly their concerns for energy security e g to reduce the dependence of oil imports and socio economic development e g to increase income generating opportunities climate change is not the primary motive of these countries to pursue biofuel development however sustainable production of biofuels and reliance on second generation biofuels can provide opportunities for these countries to translate their growth potential into economic revenues under carbon finance and thus address greenhouse gas emissions and climate change concerns

modeling and analysis of renewable energy obligations and technology bandings in the uk electricity market in the uk electricity market generators are obliged to produce part of their electricity with renewable energy resources in accordance with the renewable obligation order since 2009 technology banding has been added meaning that different technologies are rewarded with a different number of certificates we analyze these two different renewable obligation policies in a mathematical representation of an electricity market with random availabilities of renewable generation outputs and random electricity demand we also present another alternative banding policy we provide revenue adequate pricing schemes for the three obligation policies we carry out a simulation study via sampling a key finding is that the uk banding policy cannot guarantee that the original obligation target is met hence potentially resulting in more pollution our alternative provides a way to make sure that the target is met while supporting less established technologies but it comes with a significantly higher consumer price furthermore as an undesirable side effect we observe that a cost reduction in a technology with a high banding namely offshore wind leads to more co2 emissions under the uk banding policy and to higher consumer prices under the alternative banding policy

the future of asean energy mix a swot analysis this paper assesses competing outlooks for energy mix in the association of southeast asian nations asean highlighting the paradox of its fossil fuel dominated outlooks when contrasted with its aspirations to move toward a green energy mix and reviews green energy strategies using the strengths weaknesses opportunities and threats swot analysis method the paper argues that despite the looming brown outlooks due to the expected surge of coal the asean region has many advantages in providing cleaner energy for its green vision however reduction of co2 emissions has not been explicitly set in the region s policy agenda and thus green energy potential is underdeveloped to achieve a greener energy mix asean needs to make further efforts such as cleaner use and removal of subsidies of fossil fuels promotion of renewables and energy efficiency regional market integration and connectivity and execution of existing plans by nations ultimately each of these strategies will require sustained leadership political determination and concrete actions from stakeholders in particular national governments across the region