historical review of demand side management in china management content operation mode results assessment and relative incentives abstract traditional power load management in china is featured by power rationing without considering user demand however since the 1990s demand side management dsm has been introduced by local governments and enterprises in china to improve terminal power efficiency and optimize resources allocation and certain breakthrough have already been achieved demand response aims at improving the energy efficiency of end users and achieving emission reduction targets based on the development status of power industry and electricity market in china this paper firstly reviews the three key development stages of traditional dsm including management content operation mode and results assessment secondly this paper analyzes the demand side management aimed at energy conservation and emissions reduction selecting the core elements and key processes influencing terminal power efficiency of dsm development in addition dsm safeguard system and incentive mechanism including political economic technical and managerial measures are further discussed to achieve the aim of energy conservation and emission reduction finally this paper systematically analyzes related policies and regulations proposed by the government and put forward relative policy recommendations for dsm development in china

role of residential demand response in modern electricity markets abstract electricity generation must match the demand at each instant following seasonal patterns and instantaneous fluctuations thus one of the biggest drivers of costs and capacity requirements is the electricity demand that occurs during peak periods this paper reviews market related problems of modern electric grids and possible solutions to address them in particular one techno economical solution namely residential demand response programs enabled by a smart grid is analyzed and modeled in detail the implications of this solution from both economic and policy perspectives are discussed the analysis results in several insights first a local optimum does not generally lead to a global optimum especially for complex markets second in this approach there exists a disconnection between the locus of the problem electric utilities and the locus of the solution change of demand third any techno economic solution must be carefully designed and global impact should be evaluated to ensure that the final objective is achieved and fourth two way communication is an essential requirement for the successful deployment of smart grids

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

workplace compensation practices and the rise in benefit inequality this article aims to explain why inequality in fringe benefits has grown faster than wage inequality over the past four decades we depart from previous income inequality research by studying benef

impact of oil prices economic diversification policies and energy conservation programs on the electricity and water demands in kuwait abstract this paper describes the influences of oil revenue and government s policies toward economic developments and energy efficiency on the electricity and water demands a kuwait specific electricity and water demand model was developed based on historic data of oil income gross domestic product gdp population and electric load and water demand over the past twelve years 1998 2010 moreover the model took into account the future mega projects annual new connected loads and expected application of energy conservation programs it was run under six circumstances representing the combinations of three oil income scenarios and two government action policies toward economic diversification and energy conservation the first government policy is the status quo with respect to economic diversification and applying energy conservation programs the second policy scenario is the proactive strategy of raising the production of the non oil sector revenue and enforcing legislations toward energy demand side management and conservation in the upcoming 20 years the average rates of change of the electric load and water demand increase are 0 13 gw and 3 0 migd respectively per us dollar oil price increase moreover through proactive policy the rates of average load and water demand decrease are 0 13 gw and 2 9 migd per year respectively

demand side bidding agents modeling and simulation problems such as price volatility have been observed in electric power markets demand side participation is frequently offered as a potential solution by promising to increase market efficiency when hockey stick type offer curves are present however the individual end consumer will surely value electricity differently which makes demand side participation difficult as a group and at a bus in this paper demand is categorized into two groups one that highly values reliability and one that does not the two types are modeled separately and a new optimal bidding function is developed and tested based on this model

residential peak electricity demand response highlights of some behavioural issues electricity demand response refers to consumer actions that change the utility load profile in a way that reduces costs or improves grid security the focus of demand response has mainly been on the commercial and big industrial sectors because of the large demand reduction that they can offer to the utility grid operators utilities are showing increasing interest in residential demand response rdr rdr can be treated as an energy resource which can be assessed and commercially developed however there are still some issues that remain to be addressed for rdr to be successful these include price unresponsiveness of some residential consumers equity issues and high cost of the metering infrastructure the aim of this paper is to investigate and present some of the challenges in achieving effective voluntary demand reduction based on a review of residential demand response literature as well as the general residential energy use behaviour literature the authors propose the use of a hybrid engineering approach using social psychology and economic behaviour models to overcome these challenges and realize the benefits of supply security and cost management

market clearing with stochastic security part i formulation the first of this two paper series formulates a stochastic security constrained multi period electricity market clearing problem with unit commitment the stochastic security criterion accounts for a pre selected set of random generator and line outages with known historical failure rates and involuntary load shedding as optimization variables unlike the classical deterministic reserve constrained unit commitment here the reserve services are determined by economically penalizing the operation of the market by the expected load not served the proposed formulation is a stochastic programming problem that optimizes concurrently with the pre contingency social welfare the expected operating costs associated with the deployment of the reserves following the contingencies this stochastic programming formulation is solved in the second companion paper using mixed integer linear programming methods two cases are presented a small transmission constrained three bus network scheduled over a horizon of four hours and the ieee reliability test system scheduled over 24 h the impact on the resulting generation and reserve schedules of transmission constraints and generation ramp limits of demand side reserve of the value of load not served and of the constitution of the pre selected set of contingencies are assessed

energy efficiency and sustainable growth in industrial sectors in european union countries a nonlinear ardl approach abstract it can be said that economic growth providing it ensures a clean and safe environment is one of the main objectives of many countries with this in mind an important question needs to be asked what is the relationship between energy efficiency and economic growth this can only be answered through an empirical analysis by carrying out such an analysis using the energy efficiency of the industrial sector for 11 european union countries for a time span from 1997 to 2015 it should be possible to understand if the energy efficiency measures and investments being made are driving economies towards greater energy efficiency and sustainable growth this paper uses a nonlinear ardl model which allows short and long run relationships to be analysed for the ascending and descending movements of variables the results indicate that investment is increasing energy efficiency while at the same time reducing greenhouse gas emissions economic growth is driving economies to greater energy efficiency the same result is found in the industrial energy price index to verify robustness the environmental kuznets curve was estimated using gross domestic product per capita and as an alternative the industrial production index to ensure increased energy efficiency along with sustainable growth policymakers must adapt their policies and devise new ones to both incentivise investment and control energy pricing alternative ways of electricity generation such as renewable sources could allow the economy to grow in a more sustainable way such mechanisms would let policymakers develop policies for greener and more sustainable growth while at the same time encouraging the efficient use of energy

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

optimal energy efficiency policies and regulatory demand side management tests how well do they match abstract under conventional models subsidizing energy efficiency requires electricity to be priced below marginal cost its benefits increase when electricity prices increase to finance the subsidy with high prices subsidies are counterproductive unless consumers fail to make efficiency investments when private benefits exceed costs if the gain from adopting efficiency is only reduced electricity spending capping revenues from energy sales may induce a utility to substitute efficiency for generation when the former is less costly this goes beyond standard decoupling of distribution revenues from sales requiring complex energy price regulation the models results are used to evaluate tests in the 2002 california standard practice manual for assessing demand side management programs its ratepayer impact measure test best conforms to the condition that electricity price is too low its total resource cost and societal cost tests resemble the condition for expanded decoupling no test incorporates optimality conditions apart from consumer choice failure

controlling electricity consumption by forecasting its response to varying prices in a real time electricity pricing context where consumers are sensitive to varying prices having the ability to anticipate their response to a price change is valuable this paper proposes models for the dynamics of such price response and shows how these dynamics can be used to control electricity consumption using a one way price signal estimation of the price response is based on data measurable at grid level removing the need to install sensors and communication devices between each individual consumer and the price generating entity an application for price responsive heating systems is studied based on real data before conducting a control by price experiment using a mixture of real and synthetic data with the control objective of following a constant consumption reference peak heating consumption is reduced by nearly 5 and 11 of the mean daily heating consumption is shifted

assessing the impact of incentive regulation for innovation on res integration investing in innovative smart grids sgs technology can reduce overall investments in distribution systems with unpredictable renewable energy sources res regulators should therefore decide what incentives are desirable and design a flexible economic regulatory framework able to encourage distribution system operators dnos to decide for innovation in the sgs an innovative method that can support the regulators in encouraging res exploitation by determining the right incentives to favor investments in innovation in an electrical distribution network is proposed in this paper the method allows stakeholders like regulators distribution companies and developers evaluating the long term economic effects of their decisions the effectiveness of the proposed method based on non dominated sorting genetic algorithm nsga ii and on multi period optimal power flow mp opf is verified on an 84 bus network

reducing energy demand a review of issues challenges and approaches most commentators expect improved energy efficiency and reduced energy demand to provide the dominant contribution to tackling global climate change but at the global level the correlation between increased wealth and increased energy consumption is very strong and the impact of policies to reduce energy demand is both limited and contested different academic disciplines approach energy demand reduction in different ways emphasising some mechanisms and neglecting others being more or less optimistic about the potential for reducing energy demand and providing insights that are more or less useful for policymakers this article provides an overview of the main issues and challenges associated with energy demand reduction summarises how this challenge is framed by key academic disciplines indicates how these can provide complementary insights for policymakers and argues that a sociotechnical perspective can provide a deeper understanding of the nature of this challenge and the processes through which it can be achieved the article integrates ideas from the natural sciences economics psychology innovation studies and sociology but does not give equal weight to each it argues that reducing energy demand will prove more difficult than is commonly assumed and current approaches will be insufficient to deliver the transformation required

a survey of load control programs for price and system stability load control and demand side load management programs have been implemented in a large number of competitive power markets these programs can provide enhanced system security and many benefits to participants this paper reviews and compares existing economically driven programs

optimal generation mix with short term demand response and wind penetration demand response defined as the ability of load to respond to short term variations in electricity prices plays an increasingly important role in balancing short term supply and demand especially during peak periods and in dealing with fluctuations in renewable energy supplies however demand response has not been included in standard models for defining the optimal generation technology mix three different methodologies are proposed to integrate short term responsiveness into a generation technology mix optimization model considering operational constraints elasticities are included to adjust the demand profile in response to price changes including cross price elasticities that account for load shifts among hours as energy efficiency programs also influence the load profile interactions of efficiency investments and demand response are also modeled comparison of model results for a single year optimization with and without demand response shows peak reduction and valley filling effects impacting the optimal amounts and mix of generation capacity increasing demand elasticity also increases the installed amount of wind capacity suggesting that demand response yields environmental benefits by facilitating integration of renewable energy

benefits and challenges of electrical demand response a critical review advances in it control and forecasting capabilities have made demand response a viable and potentially attractive option to increase power system flexibility this paper presents a critical review of the literature in the field of demand response providing an overview of the benefits and challenges of demand response these benefits include the ability to balance fluctuations in renewable generation and consequently facilitate higher penetrations of renewable resources on the power system an increase in economic efficiency through the implementation of real time pricing and a reduction in generation capacity requirements nevertheless demand response is not without its challenges the key challenges for demand response centre around establishing reliable control strategies and market frameworks so that the demand response resource can be used optimally one of the greatest challenges for demand response is the lack of experience and the consequent need to employ extensive assumptions when modelling and evaluating this resource this paper concludes with an examination of these assumptions which range from assuming a fixed linear price demand relationship for price responsive demand to modelling the highly diverse distributed and uncertain demand response resource as a single centralised negative generator adopting fixed characteristics and constraints

energy gdp relationship revisited an example from gcc countries using panel causality abstract this work investigates the causality relationship between gross domestic product gdp and energy consumption in the six countries of the gulf cooperation council gcc recently developed panel cointegration and causality techniques are used to uncover the direction of energy gdp causality in the gcc empirical results indicate a unidirectional causality running from gdp to energy consumption evidence shows no support for the hypothesis that energy consumption is the source of gdp growth in the gcc countries such results suggest that energy conservation policies may be adopted without much concern about their adverse effects on the growth of gcc economies

aggregate industrial energy consumer response to wholesale prices in the restructured texas electricity market abstract the aggregate response of consumers to wholesale price signals is very limited in the restructured electric reliability council of texas ercot market an overall average own price elasticity of demand of 0 000008 for industrial energy consumers served at transmission voltage is estimated using a symmetric generalized mcfadden cost function model to date ercot has sought to promote demand response to price signals without reliance on stand alone demand response programs but with a market structure that is designed to facilitate economic demand response this very limited responsiveness to wholesale price signals may prove problematic in light of policy decisions to pursue an energy only resource adequacy mechanism for ercot

how to fit demand side management dsm into current chinese electricity system reform abstract dsm is one of the best and most practical policy tools available to china for balancing environmental protection and economic growth the new round of electricity system reform provides a good opportunity to consolidate and integrate dsm policy and expedite its development and implementation dsm policy can be upgraded by incorporating it into the current electricity system reform comparing the potential acceleration of electricity price reform with the possibility of imposing a system benefit charge sbc the author argues that support for a sbc would be much easier to gather among policymakers and stakeholders in a short time and would have a much better policy effect in the current situation the author discusses three kinds of price discrimination related to the dsm development in china time based electricity pricing electricity price discrimination for industrial structure adjustment in china fujian province as a case and direct power purchases by large customers and preferential tariff policy these can be well designed to be combined with dsm and energy efficiency policy

how serious is the aggregation problem an empirical illustration heterogeneity in consumer behaviour may create problems with aggregation across consumers if so we may not be able to make correct inferences about behaviour based on aggregated data however using micro estimates to predict aggregate demand responses to policy changes may also create a bias if not aggregated properly this may sound like a catch 22 situation but it is not as it is possible to calculate both micro and aggregate demand responses based on microdata the size of the aggregation bias is an empirical question in this article we show how to calculate theoretically consistent aggregate demand responses we use both micro and macro data for norwegian household electricity consumption to illustrate the magnitude and direction of different aggregation biases we find considerable aggregation biases in particular when estimating with macro data

an economic welfare analysis of demand response in the pjm electricity market abstract we analyze the economic properties of the economic demand response dr program in the pjm electricity market in the united states using dr market data pjm s program provided subsidies to customers who reduced load in response to price signals the program incorporated a trigger point at a locational marginal price of 75 mwh at or beyond which payments for load reduction included a subsidy payment particularly during peak hours such a program saves money for the system but the subsidies involved introduce distortions into the market we simulate demand side bidding into the pjm market and compare the social welfare gains with the subsidies paid to price responsive load using load and price data for year 2006 the largest economic effect is wealth transfers from generators to non price responsive loads based on the incentive payment structure that was in effect through the end of 2007 we estimate that the social welfare gains exceed the distortions introduced by the subsidies lowering the trigger point increases the transfer from generators to consumers but may result in the subsidy outweighing the social welfare gains due to load curtailment we estimate that the socially optimal range for the incentive trigger point would be 66 77 mwh

demand side management and european environmental and energy goals an optimal complementary approach demand side management dsm in electricity markets could improve energy efficiency and achieve environmental targets through controlled consumption for the past 10 years or so dsm programmes have registered significant results however detailed analysis of its real impact as observed by a large number of pilot studies suggests that such programmes need to be fine tuned to suit clearly identified conditions this study aims to provide recommendations for the instruments to be used to prompt demand response with a view to maximizing energy and environmental efficiencies of various countries the present study suggests that different dsm models should be deployed depending on the specific generation mix in any given country beside the natural benefits from cross borders infrastructures dsm improves the flexibility and reliability of the energy system absorbing some shock on generation mix we show efficiency increases with demand response but at a decreasing rate so according to rebound and report effects simple dsm tools could be preferred

are energy conservation policies effective without harming economic growth in the gulf cooperation council countries abstract this study explores the fossil fuels electricity consumption growth of the gross domestic product gdp relationship in the six gulf cooperation council gcc countries for the period 1980 2012 the aim of this study is to examine whether energy conservation policies are appropriate for these countries to reduce their high levels of electricity consumption the autoregressive distributed lag ardl and the toda yamamoto dolado lutkepohl tydl methodologies were employed to investigate this relationship the ardl results revealed that fossil fuels electricity consumption has a long run positive effect on gdp growth in the gcc countries however the tydl granger causality revealed different causality relationships among the countries a bi directional causality was found between fossil fuels electricity consumption and gdp growth in bahrain and the united arab emirates uae while one way causality from fossil fuels electricity consumption to gdp growth was found in oman and qatar on the other hand no causality was concluded between the variables in kuwait and saudi arabia from the results it is clear that energy conservation is not an ideal policy for the bahrain uae oman and qatar because it will have a negative consequence on their output however this policy can be implemented in kuwait and saudi arabia since it will not harm their output

exploring public perceptions of energy security risks in the uk along with climate change and affordability concerns about energy security are key drivers behind proposals for major energy system change in the uk and numerous other countries unlike climate change we know very little about how the public thinks and feels about this aspect of sustainability and energy policy beyond engaging critically with conceptual and theoretical discussions empirical data from two surveys cardiff postal survey n 520 online uk survey n 499 using a ten item energy security scale are presented and discussed here we show that aspects of energy security are certainly of concern to the uk public with particularly high concern around dependence on fossil fuels imports and relatively lower expressed concern for actual disruption of energy supply however public concerns around energy security are only emerging and likely to change depending on the context in which it is discussed e g in comparison to climate change in addition findings from public interviews are used to further contextualise the survey findings showing unfamiliarity among the uk public with regards to the term energy security we discuss implications and further work that would be useful for understanding public perceptions in more depth

non renewable and renewable energy consumption and co2 emissions in oecd countries a comparative analysis abstract this paper attempts to explore the determinants of co 2 emissions using the stirpat model and data from 1980 to 2011 for oecd countries the empirical results show that non renewable energy consumption increases co 2 emissions whereas renewable energy consumption decreases co 2 emissions further the results support the existence of an environmental kuznets curve between urbanisation and co 2 emissions implying that at higher levels of urbanisation the environmental impact decreases therefore the overall evidence suggests that policy makers should focus on urban planning as well as clean energy development to make substantial contributions to both reducing non renewable energy use and mitigating climate change

taxation and on the job training decisions this paper is an econometric analysis of the on the job training ojt decisions of a group of white american males during 1975 the data are obtained from the panel study of income dynamics which asked a very careful series of questions concerning the individual s ojt status each individual s internal rate of return is estimated and used as an explanatory variable to predict the probability of taking ojt the individual s marginal tax rate is also entered in the equation the results suggest that income taxation has tended to increase the probability of being involved in ojt i conjecture that this is because income taxation makes investment in physical capital a less desirable vehicle for carrying consumption into the future and hence increases the attractiveness of human capital this abstract was borrowed from another version of this item

interruptible electricity contracts from an electricity retailer s point of view valuation and optimal interruption we consider interruptible electricity contracts issued by an electricity retailer that allow for interruptions to electric service in exchange for either an overall reduction in the price of electricity delivered or for financial compensation at the time of interruption we provide a structural model to determine electricity prices based on stochastic models of supply and demand we use stochastic dynamic programming to value interruptible contracts from the point of view of an electricity retailer and describe the optimal interruption strategy we also demonstrate that structural models can be used to value contracts in competitive markets our numerical results indicate that in a deregulated market interruptible contracts can help alleviate supply problems associated with spikes of price and demand and that competition between retailers results in lower value and less frequent interruption

explaining the contract terms of energy performance contracting in china the importance of effective financing abstract energy service company esco uses energy performance contracting epc to provide energy saving services to its clients under an epc both esco and the client invest in the energy efficiency measures according to a negotiated share of investment within the length of the contract the esco and its client divide up the saved energy bill according to a negotiated share once the contract expires the client claims all of the saved energy bills if the energy efficiency measures still last different epc projects have different contract terms including total investment share of investment and length of contract these contract terms directly determine the resulted energy savings thus it is essential and important to look at how these contract terms are formed and what are the major influencing factors this paper first builds a theoretical bargain model between esco and its client to find out the structural relationship among these contract terms then using the information of about 140 epc contracts in china in 2010 and 2011 the paper empirically estimates the impacts of various factors on the contract terms and the resulted energy savings we find that cost of capitals for escos and the clients especially for escos is a major factor influencing contract terms and the resulted energy savings thus providing effective financing is critical for the development of epc in china

volatility of power grids under real time pricing the paper proposes a framework for modeling and analysis of the dynamics of supply demand and clearing prices in power systems with real time retail pricing and information asymmetry characterized by passing on the real time wholesale electricity prices to the end consumers real time pricing creates a closed loop feedback system between the physical layer and the market layer of the system in the absence of a carefully designed control law such direct feedback can increase sensitivity and lower the system s robustness to uncertainty in demand and generation it is shown that price volatility can be characterized in terms of the system s maximal relative price elasticity defined as the maximal ratio of the generalized price elasticity of consumers to that of the producers as this ratio increases the system may become more volatile since new demand response technologies increase the price elasticity of demand and since increased penetration of distributed generation can also increase the uncertainty in price based demand response the theoretical findings suggest that the architecture under examination can potentially lead to increased volatility this study highlights the need for assessing architecture systematically and in advance in order to optimally strike the trade offs between volatility robustness and performance metrics such as economic efficiency and environmental efficiency

power markets in transition decarbonization energy efficiency and short term demand response abstract energy efficiency and short term demand response are key issues in the decarbonization of power markets however their interaction and combined impact on market prices as well as on the supply side is yet to be understood we develop a framework to implement short term demand response and investments in energy efficiency in detailed partial equilibrium power market models we quantify our results using the eu regen model for the european power market under an 80 emission reduction target energy efficiency contributes only 11 of carbon emission reductions intermittent renewable energies such as wind and solar power account for the major share of 53 in comparison to a scenario without short term demand response and energy efficiency investments 70 gw gas power is decommissioned immediately and 180 gw less gas capacity is needed in 2050 which underlines the need for immediate action by policy makers to avoid locking the eu power market into an inefficient path

energy consumption and economic growth the case of oil exporting countries this paper examines the causal relationship between the per capita energy consumption and the per capita gdp in a panel of 11 selected oil exporting countries by using panel unit root tests and panel cointegration analysis the results show a unidirectional strong causality from economic growth to energy consumption for the oil exporting countries the findings have practical policy implications for decision makers in the area of macroeconomic planning in most major oil exporting countries government policies keep domestic prices bellow free market level resulting in high levels of domestic energy consumption the results imply that the energy conservation through reforming energy price policies has no damaging repercussions on economic growth for this group of countries

growing apart the changing firm size wage premium and its inequality consequences wage inequality in the united states has risen dramatically over the past few decades prompting scholars to develop a number of theoretical accounts for the upward trend this study argues that large firms have been a prominent labor market institution that mitigates inequality by compensating their low and middle wage employees with a greater premium than their higher wage counterparts large u s firms reduced overall wage dispersion yet broader changes to employment relations associated with the demise of internal labor markets and the emergence of alternative employment arrangements have undermined large firms role as an equalizing institution using data from the current population survey and the survey of income and program participation we find that in 1989 although all private sector workers benefited from a firm size wage premium the premium was significantly higher for individuals at the lower end and middle of the wage distribution compared to those at the higher end between 1989 and

the challenge of dual and radical theories of the labor market to orthodox theory ideally a paper that attempts to evaluate a challenge to established theory should accomplish the following objectives 1 present the theoretical substance of the challenging theory which is here called the dual and radical theories and indicate how it differs from the existing theory which i will refer to as neoclassical or orthodox theory 2 point out the empirical implications of the new theories and explain their differences with the existing theory 3 assess the empirical basis for discriminating between the competing hypotheses or if this is lacking provide the theoretical or evidential counterarguments of the neoclassical response to the dual and radical challenge and finally 4 spell out the policy implications of the competing theories meeting these objectives is an impossible task for a short paper the space constraint is compounded by the fact that in my judgment the dual and radical theories are too varied incomplete and amorphous to present concisely the strategy i adopt to describe these theories in the longer paper consists of first discussing their linkages to historical criticisms of classical and neoclassical theory second developing their empirical challenges to orthodox theory only the second part is emphasized below to establish the context of the challenge let us begin with the observation of leo rogin p 13 that new systems of economic doctrines first emerge in the guise of arguments in the context of social reform the dual and radical or d r for short theories began to emerge in the 1960 s when the movement for social reform mainly involved the war on poverty and the drive for full participation in the economy by minority groups including women dissatisfaction with the pace and progress of reform in these areas and dissatisfaction with the conventional analysis of the problems and their remedies have led to arguments within the economics profession especially on the part of the younger labor economists let me simply assert without defending the proposition as i do in the longer paper that the neoclassical school does dominate department of economics and institute for research on poverty university of wisconsin this is an abbreviated version of a longer paper which is available from the institute for research on poverty university of wisconsin madison wisconsin 53706 the longer version contains a bibliography which is omitted here i am indebted to a number of people at the u s department of labor especially fred siskind and at the institute for research on poverty for their support they are not responsible for errors nor do they necessarily agree with the interpretations expressed in the report i am grateful to marc p freiman for his extensive assistance

wage fairness in a subcontracted labor market abstract labor market subcontracting is a global phenomenon this paper presents a theory of wage fairness in a subcontracted labor market where workers confront multi party employment relationships and deep wage inequities between regular and subcontractor mediated hires we show that subcontracting derives its appeal from a downward revision of workers fair wage demand when producers delegate employment decisions down the supply chain furthermore subcontracting creates a holdup problem resulting in wages that workers deem unfair along with adverse worker morale consequences in equilibrium these insights reveal the efficiency costs of subcontracting as an employer strategy to redress workers demand for fair wages

a bilevel model for electricity retailers participation in a demand response market environment abstract demand response programmes are seen as one of the contributing solutions to the challenges posed to power systems by the large scale integration of renewable power sources mostly due to their intermittent and stochastic nature among demand response programmes real time pricing schemes for small consumers are believed to have significant potential for peak shaving and load shifting thus relieving the power system while reducing costs and risk for energy retailers this paper proposes a game theoretical model accounting for the stackelberg relationship between retailers leaders and consumers followers in a dynamic price environment both players in the game solve an economic optimisation problem subject to stochasticity in prices weather related variables and must serve load the model allows the determination of the dynamic price signal delivering maximum retailer profit and the optimal load pattern for consumers under this pricing the bilevel programme is reformulated as a single level milp which can be solved using commercial off the shelf optimisation software in an illustrative example we simulate and compare the dynamic pricing scheme with fixed and time of use pricing we find that the dynamic pricing scheme is the most effective in achieving load shifting thus reducing retailer costs for energy procurement and regulation in the wholesale market additionally the redistribution of the saved costs between retailers and consumers is investigated showing that real time pricing is less convenient than fixed and time of use price for consumers this implies that careful design of the retail market is needed finally we carry out a sensitivity analysis to analyse the effect of different levels of consumer flexibility

does unmeasured ability explain inter industry wage differentials this paper provides empirical assessments of the two leading explanations of measured inter industry wage differentials 1 true wage differentials exist across industries and 2 the measured differentials simply reflect unmeasured differences in workers productive abilities first we summarize the existing evidence on the unmeasured ability explanation second we construct a simple model which shows that if matching is important then endogenous job change decisions can create important self selection biases even in first differenced estimates of industry wage differentials third we analyze a sample that approximates the experiment of exogenous job loss we find that i the wage change experienced by a typical industry switcher closely resembles the difference in the relevant industry differentials estimated in a cross section and ii pre displacement industry affiliation plays an important role in post displacement wage determination

policy redesign for solving the financial bottleneck in demand side management dsm in china abstract dsm is one of the best and most practical policy tools for china to balance environmental protection and economic growth however the bottleneck lies in the lack of long term stable sufficient and gradually increasing funds to flow into dsm projects the author redesigns the practical system benefit charge sbc policy which will provide long term and stable funding for dsm the policy to facilitate the financial support from banking sector and capital market and investigates the possibility of dsm funding from cdm projects sbc is the best way to boost long term stable and sufficient funding for dsm at present in china the current low inflation rate and natural resource price are favored to expedite the implementation of sbc and dsm developments with regard to the uneven development china needs to design relative policies to offset the impact in different areas such as tax reduction and fiscal subsides it is time for china to develop a definite and clear target and timetable to implement dsm which will give the public and enterprises a definite and clear expectation for the future the government should publicize a clear and integrated dsm development plan and relative policy outline in the near medium and long term

energy consumption and gdp revisited a panel analysis of developed and developing countries this paper applies a new panel data stationarity testing procedure first developed by carrion i silvestre et al 2005 econometrics journal 8 159 175 with panel vars that employ the generalized method of moment techniques in order to re investigate the dynamic interactions between energy consumption per capita lec and real gdp per capita lry in 22 developed and 18 developing countries when multiple breaks in the series are taken into account there is convincing evidence of panel stationarity for lec and lry in both groups the energy crises evidently had a substantive impact on both lec and lry in all sample countries furthermore our panel vars attest to bidirectional causality between lec and lry in developed countries but there is uni directional causality from lry to lec in developing countries finally from the orthogonalized impulse response functions all of the variables in the panel vars have a positive effect on each other but their impact is greater and more persistent in developing countries some important policy implications do emerge

coupon incentive based demand response theory and case study this paper presents the formulation and critical assessment of a novel type of demand response dr program targeting retail customers such as small medium size commercial industrial and residential customers who are equipped with smart meters yet still face a flat rate enabled by pervasive mobile communication capabilities and smart grid technologies load serving entities lses could offer retail customers coupon incentives via near real time information networks to induce demand response for a future period of time in anticipation of intermittent generation ramping and or price spikes this scheme is referred to as coupon incentive based demand response cidr in contrast to the real time pricing or peak load pricing dr programs cidr continues to offer a flat rate to retail customers and also provides them with voluntary incentives to induce demand response theoretical analysis shows the benefits of the proposed scheme in terms of social welfare consumer surplus lse profit the robustness of the retail electricity rate and readiness for implementation the pros and cons are discussed in comparison with existing dr programs numerical illustration is performed based on realistic supply and demand data obtained from the electric reliability council of texas ercot

does outsourcing reduce wages in the low wage service occupations evidence from janitors and guards outsourcing of labor services grew substantially during the 1980s and 1990s and was associated with lower wages fewer benefits and lower rates of unionization the authors focus on two occupations for which they can identify outsourcing in those two decades using industry and occupation codes janitors and guards across a wide array of specifications they find that the outsourcing wage penalty ranged from 4 to 7 for janitors and from 8 to 24 for guards their findings on health benefits mirror those on wages evidence suggests that the outsourcing penalty was not due to compensating differentials for higher benefits or lower hours skill differences or the types of industries that outsourced rather outsourcing seems to have reduced labor market rents for workers especially for those in the upper half of the occupational wage distribution industries with higher historical wage premia were more likely to outsource service work

demand response in smart electricity grids equipped with renewable energy sources a review abstract dealing with renewable energy resources rers requires sophisticated planning and operation scheduling along with state of art technologies among many possible ways for handling rers demand response dr is investigated in the current review because of every other year modifications in dr definition and classification announced by federal energy regulatory commission ferc the latest dr definition and classification are scrutinized in the present work moreover a complete benefit and cost assessment of dr is added in the paper measurement and evolution methods along with the effects of dr in electricity prices are discussed next comes dr literature review of the recent papers majorly published after 2008 eventually successful dr implementations around the world are analyzed

the rate of return to investments in on the job training in this paper we use the overtaking method to calculate marginal rates of return to on the job training as we have no prior information on who invests in ojt and who does not we use a switching regression model with unknown regimes to obtain parameter estimates of the wage profiles the estimation results show that lower intercepts are associated with steeper wage profiles this confirms the prediction that those who invest in ojt have lower initial wages but higher wage growth we further find that the marginal rate of return to ojt is high and increases with education

a review on implementation strategies for demand side management dsm in kuwait through incentive based demand response programs abstract since the export of fossil fuel is the backbone of kuwait s economy the enormous upsurge in the internal fuel consumption creates anguish and bane at present 46 of the internal fossil fuel consumption is used for electricity generation the increase in fuel consumption hurled kuwait as one of the highest per capita electricity consuming as well as co 2 emitting countries in the world consumers pay only 6 of the production cost of electricity the government subsidizes the balance which is one of the major reasons behind the high electricity consumption in the country any reduction in electricity consumption can positively reflect on both per capita electricity consumption and co 2 emission additionally the saved fossil fuel can be exported to generate revenue to support the country s economy worldwide demand side management dsm is considered as an effective tool to curtail electricity demand the objective of this review paper is to explore the available literature to find out the most suitable dsm measures to control the growth of per capita electricity consumption in kuwait after conducting a detailed strengths weaknesses opportunities and threats swot analysis it is concluded that incentive based demand response programs can be considered as one of the most suitable solutions to address this problem

the production of human capital and the lifecycle of earnings variations on a theme in this work i enquire into the empirical validity and some implications of yoram ben porath s insights section ii answers the question are the shapes and magnitudes of growth in wage profiles largely attributable to human capital investments section iii tests the proposition that over the working age capacity wages decline before observed wages do implied timing of labor supply provides the test in section iv implications are drawn from ben porath s model for interpersonal differences and for the correlation between schooling and training

longitudinal analyses of the effects of trade unions but union members are different from nonmembers in unobserved ways biasing your estimates y ou should make a selectivity bias correction simultaneously determine union status and economic outcomes develop an unobservables model use longitudinal data archetypical comment on virtually any study of the economic effects of umomsm or suitably modified on any other empirical subject

how renewables will change electricity markets in the next five years photovoltaic pv cells onshore wind turbines internet technologies and storage technologies have the potential to fundamentally change electricity markets in the years ahead photovoltaic cells are the most disruptive energy technology as they allow consumers of all sizes to produce power by themselves new actors in the power market can begin operating with a new bottom up control logic unsubsidised pv markets may start to take off in 2013 fuelling substantial growth where pv power is getting cheaper than grid or diesel backup electricity for commercial consumers managing loads and achieving a good match between power consumption and weather dependent power production will likely become a key issue this consumption production balance may trigger massive innovation and investment in energy management technologies involving different kinds of storage and controls increasing autonomy and flexibility of consumers challenges the top down control logic of traditional power supply and pushes for a more decentralised and multi layered system how rapidly and smoothly this transformation occurs depends to a large extent on the adaptation speed of the regulatory framework and on the ability of market players to develop appropriate business models the paper discusses conflicts of interest hurdles and drivers opportunities and traps for this perspective

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

categorization of residential electricity consumption as a basis for the assessment of the impacts of demand response actions abstract in a smart er grid context the existence of dynamic tariffs and bidirectional communications will simultaneously allow and require an active role from the end user concerning electricity management however the residential end user will not be always available to manage energy resources and decide based on price signals and preferences needs the best response actions to implement or the best usage of the electricity produced locally therefore energy management systems are required to monitor consumption generation storage and to make the best decisions according to input signals and the user s needs and preferences the design of adequate algorithms to be implemented in those systems require the prior characterization of domestic electricity demand and categorization of loads according to availability typical usage patterns working cycles and technical constraints automated demand response actions must be tailored and chosen according to this previous analysis of load characteristics in this paper a characterization of household electricity consumption is presented and an operational categorization of end use loads is proposed the existing potential for demand response to a diversified set of management actions is described and a tool to assess the impact of implementing several actions with different rates of penetration of energy management systems is presented the results obtained show the potential savings for the end user and expected changes in the load diagram with a decrease of the aggregated peak electricity demand and a smoothed valley

why do wages increase with tenure on the job training and life cycle wage growth observed within firms empirical results in this paper indicate that firm specific wage growth occurs almost exclusively during periods of on the job training this finding suggests that within firm wage growth is mainly determined by contemporaneous productivity growth the results provide no evidence that contractual considerations are an important source of firm specific wage growth copyright 1989 by american economic association

the rise of domestic outsourcing and the evolution of the german wage structure the nature of the relationship between employers and employees has been changing over the past three decades with firms increasingly relying on contractors temp agencies and franchises rather than hiring employees directly we investigate the impact of this transformation on the wage structure by following jobs that are moved outside the boundary of lead employers to contracting firms we develop a new method for identifying outsourcing of food cleaning security and logistics services in administrative data using the universe of social security records in germany we document a dramatic growth of domestic outsourcing in germany since the early 1990s event study analyses show that wages in outsourced jobs fall by approximately 10 15 relative to similar jobs that are not outsourced we find evidence that the wage losses associated with outsourcing stem from a loss of firm specific rents suggesting that labor cost savings are an important reason firms choose to contract out these services finally we tie the increase in outsourcing activity to broader changes in the german wage structure in particular showing that outsourcing of cleaning security and logistics services alone accounts for around 9 of the increase in german wage inequality since the 1980s

methodology for the identification evaluation and prioritization of market handicaps which prevent the implementation of demand response application to european electricity markets this paper presents a methodology for the identification analysis and comparative assessment of the handicaps which nowadays prevent the higher implementation of demand response dr in the electricity market its application provides a hierarchical organization of handicaps from the most critical to the less critical and then from the easiest to the most difficult to overcome this makes possible to determine which barriers would be a priority which may indicate the direction of regulatory changes to properly address these handicaps and so stimulating a higher participation of the demand side in electricity markets after applying the methodology to three european countries 34 handicaps have been identified analyzing which of these handicaps affect such stakeholders as grid operators retailers and customers and how these stakeholders are affected for each handicap the criticality and difficulty to overcome the different handicaps have been studied based on detailed information coming from personal interviews to experts representing the different stakeholders in the electricity trading chain regulatory barriers have been identified as the most critical and difficult to overcome together with regulatory changes the promotion of aggregators and the training of customers on dr applications are some of the most significant initiatives

a review of demand side management policy in the uk abstract demand side management dsm refers to actions undertaken on the demand side of energy metres a broad definition of dsm is proposed to include current policy objectives for emissions reduction energy security and affordability and encompasses energy efficiency demand response and on site back up generation and storage the paper reviews the concept of dsm outlines the historical impacts of dsm globally since the energy crises of the 1970s analyses uk dsm policy and examines the influence of eu directives on uk dsm policy as the country is currently deciding on how to include the demand side in its electricity market reform proposals and wider energy policy much of the focus of previous research has been on dsm technological trials and modelling studies rather than dsm policy and the paper contributes to filling this gap policy recommendations for the uk context are discussed and it is clear that the success of dsm policies is determined primarily by regulatory support and utility financial incentives it is important that policy clarity is provided and that current and new policies do not overlap

consumer responses to time varying prices for electricity abstract we report new experimental evidence of the household response to weekday differentials in peak and off peak electricity prices the data come from auckland new zealand where peak residential electricity consumption occurs in winter for heating peak off peak price differentials ranged over four randomly selected groups from 1 0 to 3 5 on average there was no response except in winter in winter participant households reduced electricity consumption by at least 10 took advantage of lower off peak prices but did not respond to the peak price differentials response varied with house and household size time spent away from home and whether water was heated with electricity

evaluating the impacts of real time pricing on the cost and value of wind generation one of the costs associated with integrating wind generation into a power system is the cost of redispatching the system in real time due to day ahead wind resource forecast errors one possible way of reducing these redispatch costs is to introduce demand response in the form of real time pricing rtp which could allow electricity demand to respond to actual real time wind resource availability using price signals a day ahead unit commitment model with day ahead wind forecasts and a real time dispatch model with actual wind resource availability is used to estimate system operations in a high wind penetration scenario system operations are compared to a perfect foresight benchmark in which actual wind resource availability is known day ahead the results show that wind integration costs with fixed demands can be high both due to real time redispatch costs and lost load it is demonstrated that introducing rtp can reduce redispatch costs and eliminate loss of load events finally social surplus with wind generation and rtp is compared to a system with neither and the results demonstrate that introducing wind and rtp into a market can result in superadditive surplus gains

integration scenarios of demand response into electricity markets load shifting financial savings and policy implications abstract demand response allows for the management of demand side resources in real time i e shifting electricity demand according to fluctuating supply when integrated into electricity markets demand response can be used for load shifting and as a replacement for both control reserve and balancing energy these three usage scenarios are compared based on historic german data from 2011 to determine that load shifting provides the highest benefit its annual financial savings accumulate to 3 110 m for both households and the service sector this equals to relative savings of 2 83 compared to a scenario without load shifting to improve demand response integration the proposed model suggests policy implications reducing bid sizes delivery periods and the time lag between market transactions and delivery dates in electricity markets

energy consumption economic growth and co2 emissions in middle east and north african countries this article extends the recent findings of liu 2005 ang 2007 apergis et al 2009 and payne 2010 by implementing recent bootstrap panel unit root tests and cointegration techniques to investigate the relationship between carbon dioxide emissions energy consumption and real gdp for 12 middle east and north african countries mena over the period 1981 2005 our results show that in the long run energy consumption has a positive significant impact on co2 emissions more interestingly we show that real gdp exhibits a quadratic relationship with co2 emissions for the region as a whole however although the estimated long run coefficients of income and its square satisfy the ekc hypothesis in most studied countries the turning points are very low in some cases and very high in other cases hence providing poor evidence in support of the ekc hypothesis co2 emission reductions per capita have been achieved in the mena region even while the region exhibited economic growth over the period 1981 2005 the econometric relationships derived in this paper suggest that future reductions in co2 emissions per capita might be achieved at the same time as gdp per capita in the mena region continues to grow

assessment of transformation strategies for the german power sector under the uncertainty of demand development and technology availability abstract the long term energy strategy issued by the german government in 2010 and 2011 embraces a substantial reduction of co 2 emissions and high shares of renewable energy in electricity production along with energy efficiency improvements and an accelerated nuclear phase out while several studies illustrate scenarios reaching these targets there are substantial uncertainties pertaining to key assumptions particularly long term electricity demand and the large scale availability of offshore wind and carbon capture and storage ccs this paper explores conditions under which model based scenarios for the german electricity sector comply with the official targets for co 2 emission reductions and renewable shares we apply the energy system model limes d which allows for a joint optimization of generation and transmission capacities the results indicate that reducing electricity demand plays a crucial role for attaining the government s targets scenarios for which either offshore wind or ccs is not available show an even stronger need for a decreasing electricity demand to reach the targets and a different pattern of transmission capacity expansion than is the case with full technology availability hence a broad technology portfolio could in turn hedge against future power demand increases that may challenge the joint attainment of the german decarbonization and renewable energy targets

how large are learning externalities the quantitative features of human capital externalities are not fully understood although static externalities are estimated in some studies learning externalities remain mostly unestimated by calibrating a growth model this article provides an estimate of learning externalities the calibration uses an equilibrium condition that equates private returns on physical capital and human capital the results suggest that sizable learning externalities exist even in a conservative setup the estimated social rate of return on human capital is 9 0 compared to the private rate of return 6 6 therefore human capital externalities are an important source of economic growth