Energies

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25 pages, 1337 KiB

Open AccessArticle

Policy Implications of the Clean Heating Transition: A Case Study of Shanxi

by Eun Ju Lee, Moon Joon Kim and Jae-Seung Lee

Energies 2021, 14(24), 8431; https://doi.org/10.3390/en14248431 - 14 Dec 2021

Cited by 4 | Viewed by 1882

This study provides empirical evidence of the impact of recentralized governance on environmental performance by examining the implementation of a clean heating transition. It investigated the impact of a centralized clean heating transition on sulfur dioxide (SO₂) levels in Shanxi province [...] Read more.

This study provides empirical evidence of the impact of recentralized governance on environmental performance by examining the implementation of a clean heating transition. It investigated the impact of a centralized clean heating transition on sulfur dioxide (SO₂) levels in Shanxi province from January 2015 to March 2021. Using a difference-in-differences approach, this study found that the centralized clean heating transition led to a significant improvement in air quality; however, the excessive response of Shanxi province prevented adequate heating supply for residents. As a result, the Chinese government had to reverse its initial plans for a coal ban and the promotion of gas plants. This outcome implies that recentralization cannot control the autonomy of local governments in responding to and achieving the central targets, even though it may provide incentives to prioritize environmental issues. The recentralization proved to be ineffective, in contrast to what was theoretically anticipated, and even undermined the energy transition efforts. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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14 pages, 920 KiB

Open AccessArticle

A Comparative Study of the Impacts of Human Capital and Physical Capital on Building Sustainable Economies at Different Stages of Economic Development

by Xiaohao Ding, Yifan Huang, Wenjuan Gao and Weifang Min

Energies 2021, 14(19), 6259; https://doi.org/10.3390/en14196259 - 1 Oct 2021

Cited by 13 | Viewed by 3196

Abstract

This study investigated the contributions of human capital and physical capital to economies at different stages by measuring the economic development with the traditional GDP and green GDP. The traditional GDP stood for the quantity of economic growth, and the green GDP, taking [...] Read more.

This study investigated the contributions of human capital and physical capital to economies at different stages by measuring the economic development with the traditional GDP and green GDP. The traditional GDP stood for the quantity of economic growth, and the green GDP, taking both the energy consumption and environmental pollution into account, was employed to represent the sustainability of economic development. We used a panel data of 143 countries and regions during the period from 1990 to 2014, and results showed that the elasticities of output with respect to human capital were greater compared to physical capital, while green GDP was significantly more sensitive to changes in human capital than the traditional GDP. In particular, considering the unbalanced distribution of economic growth among countries and regions, we employed the quantile regression model to explore the heterogeneous roles of physical and human capital in different stages of economic development, which evidenced not only the significance but also the stability of human capital. As national economic levels grew, countries became less dependent on physical capital, yet human capital maintained its outstanding role at different stages of economic development, particularly for the building of more sustainable economies. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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21 pages, 2160 KiB

Open AccessArticle

Does Investor Sentiment Affect Clean Energy Stock? Evidence from TVP-VAR-Based Connectedness Approach

by Tiantian Liu and Shigeyuki Hamori

Energies 2021, 14(12), 3442; https://doi.org/10.3390/en14123442 - 10 Jun 2021

Cited by 15 | Viewed by 3008

Abstract

We investigated the connectedness of the returns and volatility of clean energy stock, technology stock, crude oil, natural gas, and investor sentiment based on the time-varying parameter vector autoregressive (TVP-VAR) connectedness approach. The empirical results indicate that the average total connectedness is higher [...] Read more.

We investigated the connectedness of the returns and volatility of clean energy stock, technology stock, crude oil, natural gas, and investor sentiment based on the time-varying parameter vector autoregressive (TVP-VAR) connectedness approach. The empirical results indicate that the average total connectedness is higher in the volatility system than in the return system. The investor sentiment has a weak impact on clean energy stock. Our results show that the dynamic total connectedness across assets in the system varies with time. Furthermore, the dynamic total connectedness increases significantly during financial turmoil. Dynamic total volatility connectedness is more sensitive to financial turmoil. By comparing the connectedness estimated by the TVP-VAR model with the rolling-window VAR model, we find the dynamic total return connectedness of the TVP-VAR model is similar to the estimated results of a 200 day rolling-window VAR model. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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23 pages, 42250 KiB

Open AccessArticle

Greening Energy Finance of Multilateral Development Banks: Review of the World Bank’s Energy Project Investment (1985–2019)

by Jeong Won Kim and Jae-Seung Lee

Energies 2021, 14(9), 2648; https://doi.org/10.3390/en14092648 - 5 May 2021

Cited by 9 | Viewed by 3325

Abstract

To effectively mitigate global greenhouse gas emissions, both industrialized and developing countries should participate in the energy transition that to replace fossil fuels with renewable energy. Multilateral development banks (MDBs) have been scaling up their renewable energy finance to developing countries to help [...] Read more.

To effectively mitigate global greenhouse gas emissions, both industrialized and developing countries should participate in the energy transition that to replace fossil fuels with renewable energy. Multilateral development banks (MDBs) have been scaling up their renewable energy finance to developing countries to help them achieve their renewable energy targets. This study examines the evolution of energy financing of the World Bank, the oldest and largest MDB, by reviewing and estimating its sector-specific energy investments made over the last 35 years (1985–2019). The results confirm that the World Bank is on the right track supporting energy transition in developing countries, overall; however, limitations exist. While the share of investments in non-hydro renewable energy (NHRE) in the World Bank’s total energy finance was expanded from 1% (1985–1990) to 16.5% (2011–2019), the share of fossil fuels contracted from 51.8% (1985–1990) to 15.2% (2011–2019). However, commitments to fossil fuels have been sustained, but financing for NHRE—US$1.2 billion per year after the adoption of the Paris Agreement—is still insufficient to meet demand. Moreover, NHRE finance tended to be concentrated in middle-income developing countries. To accelerate the energy transition in developing countries, the World Bank needs to increase NHRE finance with more support for low-income countries while reducing fossil fuel finance. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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32 pages, 6837 KiB

Open AccessArticle

Assessing the Level of Energy and Climate Sustainability in the European Union Countries in the Context of the European Green Deal Strategy and Agenda 2030

by Magdalena Tutak, Jarosław Brodny and Peter Bindzár

Energies 2021, 14(6), 1767; https://doi.org/10.3390/en14061767 - 22 Mar 2021

Cited by 56 | Viewed by 5582

Abstract

The concept of sustainable development integrates activities in the economic, environmental and social areas. Energy policy, which is very closely linked to climate protection, is of key importance for achieving the goals of the concept in question. All these elements are connected by [...] Read more.

The concept of sustainable development integrates activities in the economic, environmental and social areas. Energy policy, which is very closely linked to climate protection, is of key importance for achieving the goals of the concept in question. All these elements are connected by the European Green Deal strategy and Agenda 2030. Their implementation requires the evaluation of previous actions undertaken within the framework of sustainable development and the diagnosis of the current state. Therefore, this article presents the results of such research in relation to the key industry connected with this process, which is the energy sector. The research methodology was based on the analysis of 14 indicators that characterize four basic areas (dimensions) related to energy and climate sustainability. These indicators concern energy and climate as well as social and economic issues. This approach makes it possible to comprehensively assess the actions taken so far in the implementation of sustainable economic development in the energy and climate area in the European Union (EU) countries. The entropy-complex-proportional-assessment (COPRAS) methodologies, which belong to the group of multiple criteria decision-making methods, were used for this study. The conducted research allowed for the assessment of the changes in the EU countries in terms of energy and climate sustainability between 2009–2018. In addition, the effects of the introduced changes in individual years and in relation to the studied areas (dimensions) were also evaluated. Based on the results, considering the adopted criteria, the EU countries were divided into groups similar to the level of energy and climate sustainability. The results constitute a valuable set of data, which allows for a wide and in-depth multicriteria analysis. This allows for a very objective and broad assessment of the effects of sustainable development policies in the EU countries and the current state in the context of the European Green Deal strategy and Agenda 2030. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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15 pages, 263 KiB

Open AccessArticle

Tax Reform for the Energy Transition in Korea’s Power Generation Sector

by Sung-Jin Cho and Yoon Kyung Kim

Energies 2020, 13(19), 5233; https://doi.org/10.3390/en13195233 - 8 Oct 2020

Cited by 2 | Viewed by 2015

Abstract

The tax structure capable of achieving an energy transition in the power sector was analyzed by applying the Pigouvian tax on generation fuels. Under the 2018 Tax Act Amendment, the tax rate criteria for the excise tax on power generation fuels changed from [...] Read more.

The tax structure capable of achieving an energy transition in the power sector was analyzed by applying the Pigouvian tax on generation fuels. Under the 2018 Tax Act Amendment, the tax rate criteria for the excise tax on power generation fuels changed from the calorific value to environmental externalities of the fuel. However, to reverse the merit order of bituminous coal generation with liquefied natural gas (LNG) generation, reflecting only some external costs of the environment as a tax is not enough. In this paper, we established four tax reform scenarios for bituminous coal and LNG considering environmental externalities, and we analyzed the reversal of dispatch priority using the electricity system unit commitment and M-Core economic dispatch model. According to the analysis results, the share of bituminous coal generation will be reduced to 10–20% depending on the scenario, reflecting the relative tax rate equalizing the fuel costs of bituminous coal and LNG power. To achieve an energy transition by reversing the merit order of bituminous coal and LNG generation, the tax rate of bituminous coal must be more than twice that of LNG. Moreover, to achieve an eco-friendly generation mix through tax reform, the external costs of the environment by fuel source should be accurately estimated and efficient taxation that can adequately reflect these external costs of the environment while considering tax fairness, neutrality and simplicity should be established. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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16 pages, 1048 KiB

Open AccessArticle

Market Impacts of a Transmission Investment: Evidence from the ERCOT Competitive Renewable Energy Zones Project

by Heesun Jang

Energies 2020, 13(12), 3199; https://doi.org/10.3390/en13123199 - 19 Jun 2020

Cited by 7 | Viewed by 2382

Abstract

Texas has experienced a rapid development of wind power over the last 20 years. Since wind power was developed mostly in desolate areas that are remote from urban centers due to its nature conditions, Texas implemented the Competitive Renewable Energy Zones (CREZ) project, [...] Read more.

Texas has experienced a rapid development of wind power over the last 20 years. Since wind power was developed mostly in desolate areas that are remote from urban centers due to its nature conditions, Texas implemented the Competitive Renewable Energy Zones (CREZ) project, the goal of which is to integrate the wind supply regions with the large demand centers. The objectives of this paper are two-fold. The first is to investigate the impact of the CREZ project on market price convergence. Specifically, this paper analyzes the extent that the transmission project affected wholesale price level, variance, and difference between the regions. The second is to measure environmental benefits obtained from displacement of fossil fuel generators by wind power. The results provide a strong evidence for price convergence across the ERCOT market following the completion of the CREZ project. As well as price convergence, wholesale price level and variance are also reduced significantly. Specifically, the results show that the price difference between Houston and West which diverged up to around $100/MWh converges to zero after the project completed. The impacts are more significant during the high demand hours. The results also document significant reductions in emissions, as NOx emissions was reduced by around 4000 pounds in Texas as a whole. Effects on SO₂ and CO₂ are also calculated. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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22 pages, 5237 KiB

Open AccessArticle

Unintended Consequences of National Climate Policy on International Electricity Markets—Case Finland’s Ban on Coal-Fired Generation

by Anahita Farsaei, Sanna Syri, Ville Olkkonen and Ali Khosravi

Energies 2020, 13(8), 1930; https://doi.org/10.3390/en13081930 - 14 Apr 2020

Cited by 7 | Viewed by 2758

Abstract

Finland has adopted a high profile in climate change mitigation. A national target of achieving carbon neutrality by 2035 has been declared. As a part of this, the use of coal for energy purposes has been banned from May 2029 onwards. The Nordic [...] Read more.

Finland has adopted a high profile in climate change mitigation. A national target of achieving carbon neutrality by 2035 has been declared. As a part of this, the use of coal for energy purposes has been banned from May 2029 onwards. The Nordic electricity market was a world fore-runner in creating a liberalized, multi-national electricity market in the 1990s. At present, the electricity systems of Finland, Sweden, and Norway are already very low-carbon. The Baltic countries Estonia, Latvia, and Lithuania joined the Nordic market about a decade ago. Estonian electricity production is the most carbon-intensive of all the EU countries due to the extensive use of domestic oil shale. Especially Lithuania still suffers from capacity deficit created by the closure of the Soviet time nuclear reactor Ignalina in Lithuania. This paper presents the ambitions of the EU and national level energy and climate policies and models the multi-national impacts of Finland’s forthcoming closure of coal-fired generation. We also take into account Sweden’s planned decrease in nuclear generation. We find that these national-level policies have an impact on the Baltic countries as reduced import possibilities and increasing electricity prices, and the expected rise of the EU CO₂ allowance prices amplifies these. We further find that the abandonment of coal and nuclear power plants increases the net import and increases CO₂ emissions in neighboring regions. Full article

(This article belongs to the Special Issue Energy Economic Analysis: Energy Transition and Sustainability)

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