Sectoral Targets for Developing Countries: Combining "Common but Differentiated Responsibilities" with "Meaningful participation"

Although a global cap-and-trade system is seen by many researchers as the most cost-efficient solution to reduce greenhouse gas emissions, developing countries governments refuse to enter into such a system in the short term. Hence, many scholars and stakeholders, including the European Commission, have proposed various types of commitments for developing countries that appear less stringent, such as sectoral approaches. In this paper, we assess such a sectoral approach for developing countries. More precisely, we simulate two policy scenarios in which developed countries continue with Kyoto-type absolute commitments, whereas developing countries adopt an emission trading system limited to electricity generation and linked to developed countries' cap-and-trade system. In a first scenario, CO2 allowances are auctioned by the government, which distributes the auctions receipts lump-sum to households. In a second scenario, the auction receipts are used to reduce taxes on, or to give subsidies to, electricity generation. Our quantitative analysis, led with a hybrid general equilibrium model, shows that such options provide almost as much emission reductions as a global cap-and-trade system. Moreover, in the second sectoral scenario, GDP losses in developing countries are much lower than with a global cap-and-trade system and so is the impact on the electricity price.Sectoral Approach, Sectoral Target

Impacts of plug-in hybrid vehicles and combined heat and power technologies on electric and gas distribution network losses

Distribution network operators (DNOs) require strategies that can offset the tradeoffs new embedded technologies have on their assets. This paper employs modelling to show that through control device manipulation, gas and electric (G&E) network operators can influence savings in energy losses under the presence of plug-in hybrid vehicles (PHEVs) and combined heat and power technologies (CHPs). An integrated gas and electric optimal power flow (OPF) tool is introduced to undertake various case studies. The OPF tool evaluates the technical impacts experienced in the networks when DNOs apply a "plug and forget" operation strategy and then compares the results against a "loss minimisation" strategy. Results show the benefits in applying different strategies are more considerable in electric networks than in gas networks. The study corroborates that an integrated G&E analysis offers a fresh perspective for stakeholders in evaluating energy service networks performance under different operation strategies

Think Again: Higher Elasticity of Substitution Increases Economic Resilience

This paper shows that, counter-intuitively, a higher elasticity of substitution in model production function can lead to reduced economic resilience and larger vulnerability to shocks in production factor prices. This result is due to the fact that assuming a higher elasticity of substitution requires a recalibration of the production function parameters to keep the model initial state unchanged. This result has consequences for economic analysis, e.g., on the economic vulnerability to climate change.Substitution, Calibration, Constant Elasticity of Substitution, Shock

Choice of State Estimation Solution Process for Medium Voltage Distribution Systems

As distribution networks are turning into active systems, enhanced observability and continuous monitoring becomes essential for effective management and control. The state estimation (SE) tool is therefore now considered as the core component in future distribution management systems. The development of a novel distribution system SE tool is required to accommodate small to very large networks, operable with limited real time measurements and able to execute the computation of large volumes of data in a limited time frame. In this context, the paper investigates the computation time and voltage estimation qualities of three different SE optimization solution methods in order to evaluate their effectiveness as potential distribution SE candidate solutions

How CO2 Capture and Storage Can Mitigate Carbon Leakage

Most CO2 abatement policies reduce the demand for fossil fuels and therefore their price in international markets. If these policies are not global, this price decrease raises emissions in countries without CO2 abatement policies, generating “carbon leakage”. On the other hand, if the countries which abate CO2 emissions are net fossil fuel importers, they benefit from this price decrease, which reduces the abatement cost. In contrast, CO2 capture and storage (CCS) does not reduce fossil fuel demand, therefore it generates neither this type of leakage nor this negative feedback on abatement costs. We quantify these effects with the global hybrid general equilibrium model Imaclim-R and show that they are quantitatively important. Indeed, for a given unilateral abatement in OECD countries, leakage is more than halved in a scenario with CCS included among the abatement options, compared to a scenario prohibiting CCS. We show that the main reason for this difference in leakage is the above-mentioned international fossil fuel price feedback. This article does not intend to assess the desirability of CCS, which has many other pros and cons. It just identifies a consequence of CCS that should be taken into account, together with many others, when deciding to what extent CCS should be developed.CO2 Capture and Storage, Carbon Leakage

Strategic distribution network planning with smart grid technologies

This paper presents a multiyear distribution network planning optimization model for managing the operation and capacity of distribution systems with significant penetration of distributed generation (DG). The model considers investment in both traditional network and smart grid technologies, including dynamic line rating, quadrature-booster, and active network management, while optimizing the settings of network control devices and, if necessary, the curtailment of DG output taking into account its network access arrangement (firm or non-firm). A set of studies on a 33 kV real distribution network in the U.K. has been carried out to test the model. The main objective of the studies is to evaluate and compare the performance of different investment approaches, i.e., incremental and strategic investment. The studies also demonstrate the ability of the model to determine the optimal DG connection points to reduce the overall system cost. The results of the studies are discussed in this paper