Clean Electrification

To combat climate change, many leading states have adopted the aim of creating a “participatory” grid. In this new model, electricity is priced based on time of consumption and carbon content, and consumers are encouraged to adjust their behavior and adopt new technologies to maintain affordable electricity. Although a more participatory grid is an important component of lowering greenhouse gas emissions, it also raises a new problem of clean energy justice: utilities and consumer advocates claim that such policies unjustly benefit the rich at the expense of the poor, given the type of consumer best able to participate in the grid. These arguments pitting clean energy against equity often prove persuasive to energy regulators considering whether to adopt or maintain clean energy policies. But these arguments fail to seriously engage the question of how energy law’s historical equity norms should be interpreted and applied in the era of climate change. This Article concludes that there are legitimate and underappreciated equity concerns with the participatory grid, given that participation in the grid is likely to stratify along income lines. However, these equity concerns do not justify slowing progress on climate change, given the extreme inequities raised by that problem itself. Fortunately, however, there is a longstanding tradition of attention to equity concerns within electricity law that paves a way forward. Throughout the twentieth-century project of electrification, electricity law focused on expanding the range of Americans able to access affordable electricity. Twenty-first century regulators, in contrast, plan to require consumers to participate in the grid in order to maintain affordable power. This new vision requires a new instantiation of electricity law’s long-standing equity commitment: a project of “clean electrification,” which seeks to expand participation in emerging clean energy marketplaces to all Americans

Essays on Energy Portfolio Management

Diese englischsprachige Dissertation behandelt ausgewählte Fragen zum Thema Portfoliomanagement in Energiemärkten. Im Kontext der modernen Portfoliotheorie werden theoretische Verteilungsannahmen untersucht, die einen optimalen Mittelwert-Varianz-Ansatz implizieren. Der Bereich zu Energiemärkten befasst sich einerseits mit Kurzfristprognosen von Day-Ahead-Preisen auf dem Strommarkt. Andererseits werden auf dem Erdgasmarkt die von komplexen Energiederivaten impliziten Volatilitäten analysiert. Einige interessante Beiträge, die diese Dissertation liefert, sind beispielsweise (i) die Erkenntnis, dass sich der Mittelwert-Varianz-Ansatz zur Bestimmung eines optimalen Portfolios von Vermögensgegenständen auch im Falle einer schiefen Renditeverteilung theoretisch rechtfertigen lässt, (ii) eine umfangreiche Vergleichsstudie mit verschiedenen Ansätzen zur Reduktion der Komplexität von multivariaten Strompreisprognosen und (iii) die Entwicklung eines theoretischen Rahmens und effizienten Algorithmus zur Übersetzung von Preisen für Swing-Optionen in implizite Volatilitäten

Simulating The Impact of Emissions Control on Economic Productivity Using Particle Systems and Puff Dispersion Model

A simulation platform is developed for quantifying the change in productivity of an economy under passive and active emission control mechanisms. The program uses object-oriented programming to code a collection of objects resembling typical stakeholders in an economy. These objects include firms, markets, transportation hubs, and boids which are distributed over a 2D surface. Firms are connected using a modified Prim’s Minimum spanning tree algorithm, followed by implementation of an all-pair shortest path Floyd Warshall algorithm for navigation purposes. Firms use a non-linear production function for transformation of land, labor, and capital inputs to finished product. A GA-Vehicle Routing Problem with multiple pickups and drop-offs is implemented for efficient delivery of commodities across multiple nodes in the economy. Boids are autonomous agents which perform several functions in the economy including labor, consumption, renting, saving, and investing. Each boid is programmed with several microeconomic functions including intertemporal choice models, Hicksian and Marshallian demand function, and labor-leisure model. The simulation uses a Puff Dispersion model to simulate the advection and diffusion of emissions from point and mobile sources in the economy. A dose-response function is implemented to quantify depreciation of a Boid’s health upon contact with these emissions. The impact of emissions control on productivity and air quality is examined through a series of passive and active emission control scenarios. Passive control examines the impact of various shutdown times on economic productivity and rate of emissions exposure experienced by boids. The active control strategy examines the effects of acceptable levels of emissions exposure on economic productivity. The key findings on 7 different scenarios of passive and active emissions controls indicate that rate of productivity and consumption in an economy declines with increased scrutiny of emissions from point sources. In terms of exposure rates, the point sources may not be the primary source of average exposure rates, however they significantly impact the maximum exposure rate experienced by a boid. Tightening of emissions control also negatively impacts the transportation sector by reducing the asset utilization rate as well as reducing the total volume of goods transported across the economy