04049 Second-best energy policies for heterogeneous firms

04049 Second-best energy policies for heterogeneous firms

17 Energy (supplies, policy, economics, forecasts) Energy in central Asia and northwest China: major 99/04038 trends and opportunities for regional...

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17

Energy (supplies, policy, economics,

forecasts)

Energy in central Asia and northwest China: major 99/04038 trends and opportunities for regional cooperation Doriana, J. P. er al. Energy Policy, 1999, 27, (5), 281-297. On an energy-equivalent basis Central Asia is predominantly a gas producing region. However. potential for oil and hydropower development is vast. This paper examines the current and predicted future status of the cnrrgy industry of Central Asia, and assesses opportunities for regionalwide co-operation in development, transportation and trade. The findings are based on a just-completed Asian Development Bank survey of Uzbekistan, Kazakstan, the Kyrgyz Republic and Xinjiang, the People’s Republic of China. Investment and trade of energy is being sought by government officials in the region as a means of boosting local economies. Importantly, the co-operation is being influenced by centuries-old cultural and ethnic ties.

The evolution of the ‘carbonization index’ in developing countries

99104039

Mielnik, 0. and Goldemberg, J. Energy Policy, 1999, 27, (5), 307-308. The ‘carbonization index’ (carbon/energy) is a useful indicator to assess the evolution patterns of industrialized and developing countries regarding climate change. While Annex I countries (industrialized) are ‘decarbonizing’, data indicates that Non-Annex I countries (developing) are in fact ‘carbonizing’. The indicator can be used to establish baselines for the emission of certified emission credits to benefit from joint implementation projects or the Clean Development Mechanism of the Kyoto Protocol. 99104040

Fuel economy standards in a model of automobile

quality Plourde, C. and Bardis, V. Energy Economics, 1999, 21, (4), 309-319. The car manufacturers’ choice of model line is interpreted as quality provision by discriminating firms in this paper. Existing models of selfsrlecting consumers and discriminating production are modified and interpreted to apply to the trade-off between quality of automobiles and their fuel efficiency. It is shown that the effects of a constraint representing legislation regarding automobile fleet fuel averaging [referred to as corporate average fuel economy (CAFE)] are not invariant to the strategies available to car manufacturers in choosing the optimal model line. When firms are unable to perfectly discriminate, the optimal adjustment entails firms relying more heavily on improving the fuel economy of small cars rather than that of the more profitable large cars as compared to the case of perfect discrimination or perfect competition This allows several implications to be drawn when the results are discussed in conjunction with recent empirical evidence regarding the effects of CAFE on pollution abatement, safety as well as CAFE’s relation to the alternative of taxation.

Global impacts of the Kyoto agreement: results from the MS-MRT model 99104041

Bernstein, P. M. et al. Resource and Energy Economics, 1999, 21, (3/4), 375-413. The economic impacts of a global agreement to limit carbon emissions on different regions of the world are analysed in this work. A multi-sector, multi-region trade model (MS-MRT) has been developed that focuses on the international trade aspects of climate change policy. These include the distribution of impacts on economic welfare, international trade and investment across regions, the spillover effects of carbon emission limits in Annex I countries on non-Annex I countries, carbon leakage, changes in terms of trade and industry output and the effects of international emissions trading. The central estimates are presented with a set of sensitivity tests to assess the extent to which the conclusions depend on elasticity and baseline assumptions. A technical appendix presents algebraic details of the model structure and calibration.

The impact of a carbon tax on the Susquehanna River Basin economy

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Kamat, R. er al. Energy Economics, 1999, 21, (4) 363-384. This paper presents the first study of the economic impacts of a carbon tax on an environmentally delineated, sub-national area. The study is based on a 32-sector computable general equilibrium model of the Susquehanna River Basin (SRB) of the USA. A special feature of the analysis is that it incorporates changes in prices of traded goods facing the focal region as a result of the imposition of a tax imposed globally. The results show that a tax of $16.96 per ton of carbon could have rather negligible negative impacts on the SRB economy as a whole, but that the negative impacts on its energy industries could be sizeable. In addition, several sensitivity tests on closure rules and key parameter values indicate that the results are rather robust. 99104043 Increased energy use in Jiangsu province of China with protection of the environment Wang, X. et al. Energy, 1999, 24, (5), 413-417. Increased energy supplies are essential for social and economic development in Jiangsu, China. The total energy used was 81.0 MTce in 1995 and about 80% of it is coal. The energy demand per 10,000 yuan ONP was 2.45 Tee. Jiangsu has become one of the most severely polluted provinces in China and should well consider the pollution caused by energy use. Low polluted energy supplies as a strategy are discussed.

422

Fuel and Energy Abstracts

November 1999

Inter-regional comparisons of energy-related COz emissions using the decomposition technique

99104044

Ang, B. W. and Zhang, Z. Q. Energy, 1999, 24, (4). 297-305. The decomposition technique was used for comparing energy-related COz emission levels between countries/regions. Application studies pertaining to total and per capita COa emissions for three OECD regions and three world regions are presented. These studies demonstrate how the difference in annual COa emission level between two regions may be expressed in terms of inter-regional differences in fuel share in energy demand, aggregate energy intensity, incomer and population. The recently proposed logarithmic mean Divisia decomposition approach can be conveniently applied in such comparative studies.

The optimal choice of climate change policy in the presence of uncertainty

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Pizer, W. A. Resource and Energy Economics, 1999, 21, (3/4), 255-287. Both the consequences of climate change and their valuation over horizons of decades or centuries are surrounded by considerable uncertainty. Yet, there have been few attempts to factor such uncertainty into current policy decisions concerning stringency and instrument choice. This paper presents a framework for determining optimal climate change policy under uncertainty and compares the resulting prescriptions to those derived from a more typical analysis with best-guess parameter values. Uncertainty raises the optimal level of emission reductions and leads to a preference for taxes over rate controls, suggesting that analyses which ignore uncertainty can lead to inefficient policy recommendations.

Optimization of electrical distribution networks fed by conventional and renewable energy sources

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Chedid, R. et al. ht. J. Enera Res., 1999, 23, (9) 751-766. This paper provides a methodology for the optimization of an existing electrical distribution network when upgraded by renewable energies. The contribution of renewable energy in electricity generation is decided upon through both network design optimization and proper load management whereby applications that can be satisfied by non-electrical means are separated from the main load. The remaining load will then be satisfied by an optimal mix of renewable energy which will be injected to the existing grid. The proposed problem will be formulated using multi-objective linear programming in conjunction with fuzzy logic. It will be shown that optimization using fuzzy logic can provide decision makers with more flexibility that would assist them in the allocation of various energy resources to optimally meet the various end uses and solve the problem of renewable energy connection to existing distribution networks.

Regarding a new variant methodology to estimate globally the ecologic Impact of thermopower plants

99104047

CLrdu, M. and Baica, M. Energy Comers. Manage., 1999, 40, (14), 15691575. A variant of the methodology introduced in a previous paper which was used to estimate the atmospheric pollution by the flue gases of thermopower plants (TPPs) is presented. It will take into consideration two virtual fuels, treated as limiting cases, in order to compare them with other real fuels. Conclusions are drawn regarding the character of fuels used and optimal ways to use the energy of the fuels burned in TPPs from the ecological impact point of view and also of the efficiency of the electrical and/or thermal energy produced.

The regulating power market on the Nordic power exchange Nord Pool: an econometric analysis

99104048

Skytte, K. Energy Economics, 1999, 21, (4) 295-308. The way the balance from the spot market is maintained until the actual, physical delivery takes place, via the regulating power market in Norway. differentiates the structure of Nord Pool from other power exchanges around the world. This paper reveals the pattern of the prices on the regulating power market, by analysing the cost of being unable to fulfil the commitments made on the spot market. Some power producers with unpredictable fluctuations (e.g. wind) will need to buy regulation services. The disclosed pattern implies that these producers must pay a limited premium of readiness in addition to the spot price; this premium is independent of the amount of regulation. The level of the premium of readiness for down-regulation is shown to be strongly influenced by the level of the spot price. On the other hand, it is demonstrated that the premium for up-regulation is less correlated to the spot price. Furthermore. it is found that the amount of regulation affects the price of regulating power for up-regulation more strongly than it does for down-regulation. The disclosed cost of using the regulating power market is a quadratic function of the amount of regulation. This asymmetric cost may encourage bidders with fluctuating production to be more strategic in their way of bidding on the spot market. By using such strategies the extra costs (for example wind power) needed to counter unpredictable fluctuations may be limited. 99104049

Second-best energy policies for heterogeneous

firms Verhoef, E. T. and Nijkamp, P. Energy Economics, 1999.21, (2), 111-134. Second-best issues in the regulation of external costs of energy use by heterogeneous firms are investigated. The efficiency of regulatory energy policies depends in general on the policy incentives given for both output reduction and input substitution. The resulting endogeneity of firms’ supply

18 functions appears to lead to complicated policy rules. In contrast to earlier efforts, the analysis considers an arbitrarily large number of non-identical price-taking firms in a joint market; a large variety of possible production functions, including varying levels of economies of scale and possibilities for input substitution; and elasticities of market demand which may vary from completely elastic to completely inelastic. Two second-best instruments are considered, namely output taxes and energy-efficiency standards, and are compared to the benchmark of first-best energy taxes. The underlying market factors determining the relative efficiency of these second-best instruments, when used optimally, are identified. 99104050

A second-best evaluation of eight policy

instruments to reduce carbon emissions

Parry, I. W. H. and Williams, III, R. C. Resource and Energy Economics, 1999, 21, (3/4), 347-373. A numerical general equilibrium model is used to compare the costs of alternative policies for reducing carbon emissions in a second-best setting with a distortionary tax on labour. A carbon tax, two energy taxes and both narrow-based and broad-based emissions permits and performance standards are placed under investigation. The presence of pre-existing tax distortions raises the costs of all these policies and can affect their relative cost rankings. In fact, the superiority of emissions taxes and emissions permits over other instruments can hinge on whether these policies generate revenues that are used to reduce other distortionary taxes.

99104051

Second-law analysis: approaches and implications

Rosen, M. A. Int. J. Energy Res., 1999, 23, (5), 415-429. A comparison is presented of the main approaches to second-law analysis (SLA) reported in the literature. Five SLAs are considered: exergy, negentropy and entropy analyses. physical-exergy, exergy-consumption, The application of the SLAs is exemplified. In addition, several significant implications of SLA are examined in the fields of environmental impact and economics. The presentation is expected to enhance understanding of SLA and improve its usefulness.

Supply- and demand-side effects of carbon tax in the Indonesian power sector: an integrated rerource planning analysis

99104052

Shrestha, R. M. and Marpaung, C. 0. P. Energy Policy, 1999,27, (4). 185194. The implications of carbon tax for power sector development, demand-side management programmes and environmental emissions, in the case of Indonesia from a long-term integrated resource planning perspective, are examined. Introduction of carbon tax is found to result in improvements of system load factor, system reliability and overall efficiency of thermal power generation, while the capacity utilization factor deteriorated. At low tax rates, CO* mitigation due to changes in electricity price is found to be higher than that due to technological substitution and fuel switching while the opposite was the case at medium and high tax rates. It is also found that tax revenue need not always increase with carbon tax.

What to expect from an international system of 99104053 tradable permits for carbon emissions

McKibbin, W. J. et al. Resource and Energy Economics, 1999, 21, (3/4), 319-346. multi-sector general equiliAn econometrically-estimated multi-region, brium model of the world economy is employed to examine the effects of using a system of internationally tradable emissions permits to control world carbon dioxide emissions. In particular, the focus rests on the effects of the system on flows of trade and international capital. The results show that international trade and capital flows significantly alter projections of the domestic effects of emissions mitigation policy, compared with analyses that ignore international capital flows and that under some systems of international permit trading, the United States is likely to become a significant permit seller, contrary to conventional wisdom.

Energy conversion and recycling

18 ENERGY CONVERSION AND RECYCLING 99104054 Production and engine test of methyl ester fuels from waste food oils Yoshimura, T. Pefrorech., 1998, 21, (lo), 967-972. (In Japanese) An experimental study has been carried out into the production of methyl ester fuels from waste food oils, in terms of properties of waste food oils, pre-treatment, esterification and post-treatment. In engine performance of a diesel engine, the methyl ester fuel is comparable to light fuel oil. though somewhat inferior exhaust behaviour is observed.

99104055 Recycling of power plant residues in mining Hasse, J. Restabfallbehandl., Deponietech., Entsorgung.sbergbau Alrlasrenprobl., Konferenzber. DepoTech Abfaliwirtschafistag., 4th, 1998, 22 I-227. (In German). Edited by Hengerer, D., Balkema, Rotterdam, The Netherlands. Power plant residues, such as fluidized-bed coal ash and ashes from dry flue gas desulfurization, can be used as a backfill and as a pumpable low-grade cement slurry for filling in chambers, providing beam support, etc., in coal mines. The ashes and other wastes are used as a substitute for previously used low-quality cement, in which the ashes are mixed into a pumpable water slurry.

99104056

The role of materials in maximizing the energy utilization from solid waste fuels. Recent developments in material optimization and process design

Mayrhuber, J. and Cerjak, H. Schr. Forschungszent. Juelich, Reihe EnergietechLEnergy Technol., 1998, 5, (2, Materials for Advanced Power Engineering 1998, Pt. 2), 741-750. For attainment of the 1997 Kyoto conference goals for greenhouse gas reduction, energy utilization from thermal waste treatment could be an important factor. High-temperature corrosion of heat exchanger currently can cause operating problems and lower efficiency of incineration plants compared to fossil power plants. Laboratory and field investigation during COST-programme and failure case analyses led to the formulation of a mechanistic model for the formation of the corrosive flue gas and the interaction between flue-gas, deposits and the metal surfaces. The relevant parameters of the flue gas are described and their effects are quantified using a model flue gas. A corrosion mechanism is deduced from the analysed samples. The possible improvements by different materials selection for evaporator and superheater tubes are described based on field tests and operators experience. The need and potential of further work are outlined.

Systems for waste treatment with heat recovery 99104057 Matsuda, S. Kagaku Kogaku, 1998, 62, (12), 734-737. (In Japanese) The energy value of waste materials, forms for efficient utilization of thermal energy and power generation from trash incineration are explored.

Treated oil shale as flocculant in regeneration of waste lubricating oils

99104056

Li, J. Faming Zhuanli Shenqing Gongkai Shuomingshu CN 1,120,581 (Cl. ClOM175/00), 17 Apr 1996, Appl. 94,116,740, 11 Ott 1994, 7 pp. (In Chinese). The flocculant is prepared by treating Daxinganlin shale with 20% HCI and 1% HNOA (or HISO or HCI) for 8-12 h, then drying and grinding and sieving with 900 holes/cm’ screen. Waste lubricating oils are treated in a method comprising: (1) heating the waste oil to 80-90°C in reduced pressure evaporator to eliminate water, (2) heating to 120-150°C and adding the flocculant (at a 2-20 wt% treating level) to flocculate the waste oil, (3) subjecting the treated oil to settling for 8-24 h at 40-80°C and draining the precipitate and (4) filtering the decantate through a sawdust filter to obtain acceptable recycled lubricating oil. The invention can avoid secondary pollution by acid sludge and acid water.

Fuel and Energy Abstracts

November 1999

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