6,542 research outputs found
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Why Do More British Consumers Not Switch Energy Suppliers? The Role of Individual Attitudes
Consumers' activities play an important role in determining the extent to which any market may become competitive. Although energy prices and switching tariffs and suppliers become very salient politically over 2013-14 in the UK and the number and share of small suppliers increased dramatically over that period, relatively fewer customers switched suppliers in UK electricity and gas markets despite the potential for financial gains, suggesting that non-price factors may affect switching decisions. Using a unique nation-wide British survey, we investigate the determinants of consumers' switching behavior in electricity and gas markets, by emphasizing the effects of individual attitudes towards energy issues as well as perception of switching cost and benefit. We find that the complexity of household energy tariffs, consumers' lack of attention to issue of energy prices, expectation on the costs of switching process and lack of switching experience discourage switching. Political allegiance also appears to play a role as Labour Party voters are more likely to switch. Few demographic factors are found to affect the likelihood of switching. Higher education qualifications are related to increased activity in energy markets. Households paying by direct debit are more likely to switch than those paying by other ways. Financial hardship a household suffers does not matter for switching decisions, suggesting there is no clear relationship between switching and income. We conclude that policies which emphasize simplification of energy tariffs, increasing convenience of switching, improving consumers' concerns about energy issues, improving consumers' confidence to exercise switch are likely to increase consumer activity
Electricity Demand and Basic Needs: Empirical Evidence from China's Households
An increasing block tariff (IBT) has been implemented nationwide in the residential sector in China since July 2012 as part of a process towards liberalizing electricity prices. However, knowledge about IBT design is still limited, particularly how to determine the electricity volume for the first block of an IBT scheme. Assuming the first block should be set based on some measure of electricity poverty, we attempt to model household electricity demand such that the range of basic needs can be established. We find that in Chinese households there exists a threshold for electricity consumption with respect to income, which might be considered a measure of electricity poverty, and the threshold differs between rural and urban areas. For rural (urban) families, electricity consumption at the level of 7th (5th) income decile households can be considered the threshold for basic needs or a measure of electricity poverty since household electricity demand in rural (urban) areas does not respond to income changes until after the 7th (5th) income decile. Further, for the case of China's electricity consumption, we find that if there is a saturation point, after which household energy needs would not rise further proportionately with increasing income, it is far from having been reached. Whereas the first IBT block was set at 240 kWh per household for Beijing, we estimate basic needs to be roughly 90 kWh per month for rural households and 150 kWh for urban households. The first IBT block therefore appears to have been set at a level that is too high, roughly equivalent to the average consumption of the top decile of urban residents. Over time however, given continued rapid growth, the IBT will begin to better reflect actual basic needs
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It's the Society, Stupid! Communicating Emergent Climate Technologies in the Internet Age
Emergent or unproven technologies occupy a central role in post-Paris debates about climate change goals and their feasibility. New technologies have often faced major political and social challenges and the way they are communicated is changing as technical experts and scientists play a greater role in communicating directly online. We review the scope and key characteristics of communications on carbon dioxide capture and storage (CCS) technologies presenting data from a comprehensive survey of websites compiled to assess the state of global CCS communications. Our key empirical finding is that existing communications are techno-centric in their framing, overlooking economic, political and institutional aspects of CCS as a societal arrangement. We also find an overrepresentation of traditionally less trusted actors from business and government (resulting in a pro-CCS bias), rather than by independent academic researchers or NGOs. We offer some recommendations for how CCS and similarly emergent climate technologies might be better communicated in the age of the Internet, not just in terms of their technical features but also in terms of their societal impacts and the role they might play in a wider social and political context
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Energy subsidies at times of economic crisis: A comparative study and scenario analysis of Italy and Spain
From 2005-2012, Spain and Italy saw significant investment in renewable energy, most notably in onshore wind and solar, driven by generous subsidies, the expectation of rising carbon prices and falling renewables (especially solar panel) costs. As a result of the Global Financial Crisis, both countries were faced with massive fiscal deficits and were forced to curtail their renewable support schemes, although these efforts took several years to take effect after the onset of the initial crisis. Ironically, both Spain and Italy incurred the lion's share of their liability for renewables support after the onset of the crisis particularly because of the rapid drop in costs of solar PV panels, while subsidy levels remained high. In spite of changes to their support regimes, Italy is likely to meet its 2020 climate and renewable targets, whereas Spain is unlikely to meet its 2020 renewables target based on current trajectories. Following a comparative historical survey of the two large EU member states, we present a scenario analysis that contrasts alternative futures of 2030 where renewable support remain at current levels (essentially zero) or is revived and where carbon prices stay at current low levels (€5/t CO2) or rises to levels needed to accomplish the proposed 40% EU 2030 reduction target. We find that, by 2030, in large parts of Spain, solar PV will be cost-competitive even under low-carbon price and low renewable support regimes, whereas concentrated solar power (CSP) and onshore wind, will require at least either a sustained renewable support regime or a high carbon price to become cost competitive. In Italy, solar PV becomes cost competitive in the low-carbon, low-renewable support scenario except when fossil fuel prices are unusually low. By 2030, there would be large-scale penetration of onshore wind and geothermal in Italy if there is either a high-carbon price or a high renewable support regime or both. In general, if the current levels of carbon price were to exist post-2020, both Italy and Spain would find it rather difficult to increase the penetration of renewables in their electricity mix. A high subsidy world, on the other hand, would be result in the most favourable outcome, particularly for Spain, although it may incur additional costs in comparison to a high carbon price world.Spai
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Electricity demand and basic needs: empirical evidence from China's households
An increasing block tariff (IBT) has been implemented nationwide in the residential sector in China since 2012. However, knowledge about IBT design is still limited, particularly how to determine the electricity volume for the first block of an IBT scheme. Assuming the first block should be set based on some measure of electricity poverty; we attempt to model household electricity demand such that the range of basic needs can be established. We show that in Chinese households there exists a threshold for electricity consumption with respect to income, which could be considered a measure of electricity poverty, and the threshold differs between rural and urban areas. For rural (urban) families, electricity consumption at the level of 7th (5th) income decile households can be considered the threshold for basic needs or a measure of electricity poverty since household electricity demand in rural (urban) areas does not respond to income changes until after 7th (5th) income decile. Accordingly, the first IBT block for some provinces (e.g., Beijing) appears to have been set at a level that is too high. Over time however, given continued rapid growth, the IBT will begin to better reflect actual basic needs.XH gratefully acknowledges supports from the National Natural Science Foundation of China (Nos. 71203187 and 71573217) and the Fundamental Research Funds for the Central Universities (Nos. 20720151028 and 20720151039)
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Dynamics of Evolution in the Global Fuel-Ethanol Industry
We employ a value chain analysis approach to examine the forces shaping the industry structure, entry and inter-firm governance modes. Forty largest global and regional companies in the ethanol manufacturing stage have been classified according to their pre-entry industry of origin. Firms with pre-entry history in feedstock supply have shown higher resilient to market shock especially compared to de novo firms. In addition, we observe a trend of dual-directional vertical integration. Firms backward integrate to secure feedstock supply; firms forward integrate to gain access to the retail market. Security of feedstock has been identified as a critical success factor of the manufacturer in this resource intensive industry. Another critical success factor is gaining control over the end user market via forward integration. We propose that critical success factor is the important determinants of inter-firm governance mode
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The race to solve the sustainable transport problem via carbon-neutral synthetic fuels and battery electric vehicles
Carbon-neutral synthetic fuels (CNSFs) could offer sustainable alternatives to petroleum distillates that currently dominate the transportation sector, and address the challenge of decarbonising the fuel mix. CNSFs can be divided into synthetic biofuels and 'electrofuels' produced from CO2 and water with electricity. We provide a framework for comparing CNSFs to battery electric vehicles (BEVs) as alternatives to reduce vehicle emissions. Currently, all three options are significantly more expensive than conventional vehicles using fossil fuels, and would require carbon prices in excess of 150/bbl to become competitive. BEVs are emerging as a competitive option for short distances, but their competitiveness quickly deteriorates at higher ranges where synthetic biofuels are a lower-cost option. For electrofuels to be viable, the challenge is not simply technological learning, but access to a low-cost ultra-low-carbon electric power system, or to low-carbon electric generators with high annual availability
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Consumer Engagement in Energy Markets: The Role of Information and Knowledge
External information (e.g., monetary and opportunity costs, retailer messaging), internal information (e.g., consumer knowledge, information processing), and the interaction between different forms of information can affect consumer engagement in markets. We employ an analytical framework which embraces both economic and psychological motives behind consumer behavior to investigate the motives and obstacles associated with household behavior in energy markets, using data from over 18,000 randomly selected responses drawn from three annual surveys of British households commissioned by the UK energy regulator. Three forms of household engagement – switching to a new electricity and/or gas supplier, changing electricity or/and gas tariffs, and changing payment methods of energy bills – are explored using a multiple-discrete choice framework. We find that internal information pathways have robust and strong effects on switching suppliers and tariffs. Concretely, a lack of belief in tariff differences discourages participation in energy markets. By contrast, professed knowledge of household energy spending and familiarity with energy tariffs drives consumer engagement. External information – supplier messages and Internet information may enhance each other in promoting market participation, conditional on message source and participation form. We also find that engagement by incumbent retailers (such as through consumer messages) can be effective in discouraging households from switching suppliers
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The political economy of negative emissions technologies: consequences for international policy design
© 2017 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. Negative emissions technologies (NETs), especially bioenergy with carbon capture and storage and direct air capture and storage, have been invoked as necessary to achieve the aspirational 1.5°C target of the Paris Agreement. However, currently their costs are estimated to be very high, NETs do not seem to offer co-benefits besides mitigating climate change and there are significant concerns regarding possible negative impacts of their large-scale implementation on sustainable development. Costs can vary significantly due to locational factors such as availability of biomass resources and geological storage capacity. It will be up to progressive industrialized countries to take first steps to mobilize the mitigation potential of NETs. In order to understand whether NETs can prov ide a significant contribution to mitigation, financial incentives are needed that allow implementing the most attractive NET activities at the global scale. We see the market mechanism under Article 6.4 of the Paris Agreement–colloquially called ‘Sustainable Development Mechanism’–as a possible cornerstone of such a policy instrument. While initially NETs will not be competitive on the free market, the mechanism can facilitate bilateral financial transfers for NETs, where mitigation units accrue to the financier. We discuss the functions and design elements that an international policy instrument may need to fulfil to successfully mobilize NETs. This includes in particular robust quantification of removed carbon under international oversight and preventing social and environmental conflicts particularly on land and water use by NETs to ensure long-term acceptability. Key policy insights International policy instruments that mobilize negative emissions technologies are inexistent despite most mitigation pathways relying on large-scale NETs implementation later this century. Feasibility of NETs at large-scale is highly uncertain due to high expected costs and political economy challenges. Practical experience is necessary for better understanding feasibility. For cost-effective global deployment of NETs, a policy instrument would need to mobilize international financial flows and implement safeguards concerning sustainable development impacts. The sustainable development mechanism established in Article 6.4 of the Paris Agreement could be a good basis for this if it includes a robust approach to evaluating sustainable development impacts building on the sustainable development goals
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European industrial energy intensity: innovation, environmental regulation, and price effects
We investigate the direct role of technological innovation and other factors influencing industrial energy intensity across 17 EU countries over 1995–2009. We develop an innovative industry-level patent dataset and find compelling evidence that patent stock negatively influences industrial energy intensity. In particular, we find a much stronger effect of patent stock on energy-intensive industries with an estimated coefficient of -0.138 which almost double that of less energy-intensive industries (estimated at -0.085). While our results show that energy price remains the major determinant of energy intensity, the chemicals industry, which is not covered by the EU Emissions Trading Scheme (ETS) during the sample period, appears more susceptible to energy prices relative to other energy-intensive industries that are covered by the EU ETS. Exploring regional differences in carbon taxation, we find a significant decline in energy intensity in Northern Europe owing to the carbon tax policy implemented in the early 1990s across the Nordic countries.EPSRC EP/N024567/
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