Regulating the development of renewable energy: a model-based analysis of electricity utilities in Europe

The thesis analyses some features of the liberalised electricity markets, from the perspective of its dealing with the development of renewable energy. It does so by following essentially three broad topics. The introduction starts from a short discussion on the debate on renewables currently in place in the EU, focusing on the issue of financing their development through incentives for investors in the sectors. Here I also state the research questions and the motivation behind this research. The dissertation is composed of three parts. In the first part, I try to put the discussion in its proper frame by analysing in detail the functioning of the electricity markets and the different approaches used by the economic literature to address its modelling. I start by the essentials, explaining why these markets need to be regulated, why there are subsidies to support the renewables in the first place, and how can these subsidies be economically justified. Then I classify the different approaches that have been used to model power markets and highlight the most important works. The second part analyses some different market structures to enhance the investment in renewable energies. An agent-based model is utilised that represents a wholesale electricity market, characterised by ten symmetric firms that compete through a uniform auction. The model allows us to monitor the pattern of wholesale prices, profits and, through some indicators, the probability of investment. The simulations aim at analysing the effects of larger share of wind power on wholesale prices and investment in the electricity market. This chapter shows many interesting results, most notably that subsidies to enhance wind energy deployment may not be as essential as it seems after a certain stage. Furthermore, we account for the possibility of firms to act strategically by withholding some of their capacity to artificially increase prices, and see how the results are affected by this circumstance. In Chapter 4, the discussion is moved towards security of supply, and how it is affected by wind penetration. Since the very beginning of the electricity liberalisation process, one of the key questions posed has been whether the market let on its own would have been able to provide adequate security of supply at the power generation level, or if some additional regulatory mechanism needed to be introduced instead. The risk of underinvestment in generating capacity is particularly severe in the case of peaking plants, i.e. the generating plants that are used in case of an unanticipated peak of demand and that are the instrument par excellence to manage the issue of system reliability. This section discusses the features and the limits of the energy only markets (i.e. a system with the least intervention possible by regulators) and on the mechanisms to coordinate investments in new capacity such as capacity payments. Then I use again the agent-based model developed in Chapter 3, adapting it for the different purposes of this research. The simulations aim at analysing how an increasing share of wind impacts on the security of supply, and from this the discussion is led on the implication the results have in terms of policy both to increase capacity and to increase renewable energy. The results show that in times of high demand the peaking price is lower for generators with wind than for generators that do not have wind in their technology portfolio. The conclusions are the following: there is need to coordinate incentives in renewables and incentives in new capacity, because the incentives for renewables basically are incentives in order to build new capacity, and having two types of incentives to get the same outcome is inefficient. I argue that an adequate and differentiated development of energy from renewable sources lessens the need for incentives in building new capacity; existing fossil fuels plants can become peaking units and be replaced as baseload units by the new renewable-energy units

The development of gas hubs in Europe

This paper investigates the development of wholesale markets for natural gas at the different stages of market liberalization. We identify three steps in the process: wholesale trade initially develops to cope with balancing needs when the shippers and suppliers segments become more fragmented; once the market becomes more liquid, it turns out to be a second source of gas procurement in alternative to long term contracts; finally, to manage price risk financial instruments are traded

The Greener the Better: Job Creation and Environmentally-Friendly Technological Change

This paper investigates the link between environment related innovation and job creation at firm level, employing Italian data

The greener the better? Job creation effects of environmentally-friendly technological change

This article investigates the link between environment-related innovation and job creation at firm level. Employing Italian data on 4507 manufacturing firms, matched with patent records for the period 2001–2008, we test whether “green” innovation, measured by the number of environment-related patents, has a positive effect on long-run employment growth that is specific with respect to non-environmental innovation. Results show a strong positive impact of “green” innovation on long-run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for patents’ quality and cost differential between generic and “green” innovation and endogeneity

The greener the better? Job creation effects of environmentally-friendly technological change

This article investigates the link between environment-related innovation and job creation at firm level. Employing Italian data on 4507 manufacturing firms, matched with patent records for the period 2001–2008, we test whether “green” innovation, measured by the number of environment-related patents, has a positive effect on long-run employment growth that is specific with respect to non-environmental innovation. Results show a strong positive impact of “green” innovation on long-run job creation, substantially bigger than the effect of other innovations. Our findings are robust to a number of additional tests including controls for patents’ quality and cost differential between generic and “green” innovation and endogeneity

Volcanic Pozzolan from the Phlegraean Fields in the Structural Mortars of the Roman Temple of Nora (Sardinia)

In this paper, we discuss the presence of volcanic pozzolans in the structural mortars of the Roman Temple of Nora in Sardinia (3rd c. AD), represented by pyroclastic rocks (pumices and tuffs) employed as coarse and fine aggregates. The provenance of these materials from the Phlegraean Fields was highlighted through a multi-analytical approach, involving Polarized Light Microscopy on thin sections (PLM), Scanning Electron Microscopy with Energy Dispersive Spectroscopy (SEM-EDS), Quantitative Phase Analysis by X-ray Powder Diffraction (QPA-XRPD), and X-ray Fluorescence (XRF) investigations. These volcanic pozzolans, outcropping in the Bay of Naples between Pozzuoli and the Vesuvius, are traditionally associated with the pulvis puteolana, the famous pozzolanic ash prescribed by Vitruvius and Pliny in order to confer strength and waterproofing capabilities to ancient concretes. This is the first evidence of the trade of this volcanic material from the Neapolitan area to Sardinia, starting at least by the Middle Imperial Age. The use of the pulvis puteolana in the Roman Temple of Nora seems primarily targeted to strengthen above-ground masonries, while waterproofing capabilities were not strictly pursued. This opens new questions about the construction reasons for which the demand and commercialization for this product was intended

Oocyte Quality Assessment in Breast Cancer: Implications for Fertility Preservation

Background: The aim of this study was to evaluate the effects of breast cancer on the ovarian response and on oocyte quality following controlled ovarian hyperstimulation (COH). Methods: This retrospective case-control study evaluated the effects of breast cancer on the ovarian response and on the oocyte quality. Oncological patients with breast cancer undergoing controlled ovarian stimulation cycles for fertility preservation, and age- and date-matched controls undergoing COH for in vitro fertilization (IVF) for male or tubal factor infertility were included in the study. Two hundred and ninety-four women were enrolled: 105 affected by breast cancer and 189 healthy women in the control group. Both groups were comparable in terms of age, BMI, and AMH value. Maximal estradiol levels on the triggering day, duration of stimulation, total amount of gonadotropins administered, number of oocytes retrieved, rate of metaphase 2 oocyte production, and numbers of immature and dysmorphic oocytes were analyzed. Results: Considering factors influencing the oocyte quality, such as age, BMI, AMH, duration of stimulation, E2 level on the triggering day, total FSH cumulative dose, stage, histotype, BRCA status, and hormone receptors, the univariate and multivariate analyses identified breast cancer as a risk factor for the presence of dysmorphic oocytes. Conclusions: The diagnosis of breast cancer does not seem to be associated with the impairment of the ovarian reserve, but is linked to a worsening oocyte quality