Spatial Development and Energy Consumption

Previous literature has suggested that the urban form (i.e., city size, density, and center distribution pattern) influences urban energy consumption. It has been argued that more dense development is likely to result in more energy-efficient and sustainable cities. However, very little is known about the precise magnitude of possible energy savings from more compact urban form. Moreover, practically no research has been done to investigate which urban policies are likely to be effective in making cities more energy efficient and to quantify those potential energy savings. In this paper we discuss the potential effectiveness of urban policies at improving energy efficiency. First, we analyze several abstract scenarios suggested by the literature to see whether making a previously dispersed city more compact would result in improved energy efficiency. Then we model realistic transportation and land-use policies and examine whether those policies are likely to reduce energy consumption in the urban context.energy consumption, urban form, general equilibrium, land use, transportation, government policy

Washington START Transportation Model

The document describes the Washington START transportation simulation model. In particular, it provides information about the model structure, the equilibrium concept, and the data used to calibrate the model. It also briefly describes the reference scenario and the elasticity analysis. Finally, the document discusses past and potential future applications and possible directions for model extensions.transportation simulation, policy analysis, general equilibrium, travel demand, transportation network, mode of transportation

Marginal Social Cost Pricing on a Transportation Network: Comparison of Second-Best Policies

In this paper we evaluate and compare long-run economic effects of six road-pricing schemes aimed at internalizing social costs of transportation. In order to conduct this analysis, we employ a spatially disaggregated general equilibrium model of a regional economy that incorporates decisions of residents, firms, and developers, integrated with a spatially-disaggregated strategic transportation planning model that features mode, time period, and route choice. The model is calibrated to the greater Washington, DC metropolitan area. We compare two social cost functions - one restricted to congestion alone and another that accounts for other external effects of transportation. We find that when the ultimate policy goal is a reduction in the complete set of motor vehicle externalities, cordon-like policies and variable-toll policies lose some attractiveness compared to policies based primarily on mileage. We also find that full social cost pricing requires very high toll levels and therefore is bound to be controversial.traffic congestion, social cost pricing, land use, welfare analysis, road pricing, general equilibrium, simulation, Washington DC

Double Moral Hazard and the Energy Efficiency Gap

We investigate how moral hazard problems can cause sub-optimal investment in energy efficiency, a phenomenon known as the energy efficiency gap. We focus on contexts where both the seller and the buyer of an energy saving technology can take hidden actions. For instance, a home retrofit contractor may cut on the quality of installation to save costs, while the homeowner may increase her use of energy service when provided with higher energy efficiency. As a result, neither energy efficiency quality nor energy use are fully contractible. We formalize the double moral hazard problem and discuss how it can help rationalize the energy efficiency gap. We then compare two policy instruments: minimum quality standards and energy-savings insurance. Their relative efficiency depends on the balance between the monitoring costs associated with the former and the deadweight loss of the consumer's action induced by the latter. Calibrating the model to the U.S. retrofit industry, we find that at current market conditions, standards tend to outperform insurance. We also find that the welfare gains from undoing the double moral hazard are substantially larger than those from internalizing carbon dioxide externalities associated with underlying energy use

How Consumers Respond to Product Certification and the Value of Energy Information

I study how consumers respond to competing pieces of information that differ in their degree of complexity and informativeness. In particular, I study the choice of refrigerators in the U.S., where a mandatory disclosure labeling program provides detailed information about energy cost, and a certification labeling program provides a simple binary-star rating related to energy use. I find that the coarse certification may help some consumers to pay attention to energy information, but for others, it may crowd out efforts to process more accurate, but complex, energy information. The effect of the certification on overall energy use is thus ambiguous

Long-Term Consequences of Congestion Pricing: A Small Cordon in the Hand Is Worth Two in the Bush

We evaluate and compare the long-term economic effects of three cordon-based road pricing schemes applied to the Washington, DC, metropolitan area. To conduct this analysis, we employ a spatially disaggregated general equilibrium model of a regional economy that incorporates the decisions of residents, firms, and developers, integrated with a spatially disaggregated strategic transportation planning model that features mode, time period, and route choice. We find that all cordon pricing schemes increase welfare of the residents, as well as lead to GDP growth. At the optimum, the larger cordon and a double cordon lead to higher benefits than the small cordon encompassing downtown core. Nevertheless, the small cordon seems to be a safer bet because when the toll charge is set suboptimally, the net benefits from the small cordon compared to the optimum change negligibly, while the net benefits from the larger cordon decline sharply as the charge deviates from the optimal level.traffic congestion, cordon tolls, land use, welfare analysis, road pricing, general equilibrium, simulation, Washington DC

Congestion Pricing: Long-Term Economic and Land-Use Effects

We employ a spatially disaggregated general equilibrium model of a regional economy that incorporates decisions of residents, firms, and developers integrated with a spatially disaggregated strategic transportation planning (START) model that features mode, time period, and route choice to evaluate economic effects of congestion pricing. First, we evaluate the long-run effects of a road-pricing policy based on the integrated model of land use, strategic transport, and regional economy (LUSTRE) and compare them with the short-term effects obtained from the START model alone. We then look at distributional effects of the policy in question and point out differences and similarities in the short run versus the long run. Finally, we analyze the mechanisms at the source of the economic and land-use effects induced by the road-pricing policy.traffic congestion, welfare analysis, CGE modeling, cordon tolls, distributional effects

Regulating the Unknown: The Case of Cooling Technologies across Africa

The impacts of climate change and the resources to adapt to it are unequally distributed. Africa, the hottest and poorest continent, is already being adversely affected by rising temperatures; a trend that will continue. Building climate resilience is a bigger challenge in Africa than anywhere else. When it comes to climate adaptation, cooling technologies – including fans and air conditioners (AC) – have been shown to improve the quality of life. In rapidly urbanising and warming Africa, the widespread deployment of cooling technologies could save millions of lives in the coming decades. At this point, however, AC adaptation rates in Africa are only in the single digits with less than 5 %. In contrast, 88 % of households in the US, the country with one of the highest AC penetration rates, have an air conditioner. This is about to change as the number of air conditioners and cooling fans in Africa are expected to double this decade. We should therefore expect an exponential increase in the demand for electricity for these technologies in the coming decades. This raises the important question of where Africa will be on the AC energy efficiency frontier. At this point, Africa imports most of its cooling technology from global companies in China, Japan, South Korea and the US. The quality these companies choose to offer in the current African market will shape the continent’s equipment stock and electricity demand for years to come. There are currently only a few regulations in Africa encouraging the diffusion of energy-efficient cooling technologies. Worse still, there is a lack of basic information needed to introduce the right regulations. The aim of this paper is to show that consumers currently have limited access to information about the energy consumption of the cooling technologies available in Africa. To demonstrate this, the authors built a novel database by scraping Africa’s largest e-commerce platform in 13 different countries over a period of more than three years. Overall, it was found that less than 10 % of all ACs offered (N = 1382) have information related to energy consumption. In addition, we discovered that the disclosure of this information is highly idiosyncratic and does not appear to have strategic goals. In particular, it is unlikely that only the most efficient AC models would provide the information and that the communication of energy information in the market would occur without government intervention

Distributional Consequences of Public Policies: An Example from the Management of Urban Vehicular Travel

This paper uses a spatially disaggregated computable general equilibrium model of a large US metropolitan area to compare two kinds of policies, “Live Near Your Work” and taxation of vehicular travel, that have been proposed to help further the aims of “smart growth.” Ordinarily, policy comparisons of this sort focus on the net benefits of the two policies; that is, the total monetized net welfare gains or losses to all citizens. While the aggregate net benefits are certainly important, in this analysis we also disaggregate these benefits along two important dimensions: income and location within the metropolitan area. The resulting identification of gainers and losers with these policies, though undoubtedly important to matters such as fairness and political feasibility, are rarely made. We find that these distributional effects are quite sensitive to the details of policy design

Distributional Consequences of Public Policies: An Example from the Management of Urban Vehicular Travel

This paper uses a spatially disaggregated computable general equilibrium model of a large US metropolitan area to compare two kinds of policies, “Live Near Your Work” and taxation of vehicular travel, that have been proposed to help further the aims of “smart growth.” Ordinarily, policy comparisons of this sort focus on the net benefits of the two policies; that is, the total monetized net welfare gains or losses to all citizens. While the aggregate net benefits are certainly important, in this analysis we also disaggregate these benefits along two important dimensions: income and location within the metropolitan area. The resulting identification of gainers and losers with these policies, though undoubtedly important to matters such as fairness and political feasibility, are rarely made. We find that these distributional effects are quite sensitive to the details of policy design