Investment spikes and uncertainty in the petroleum refining industry

This paper investigates the effect of uncertainty on the investment decisions of petroleum refineries in the US. We construct uncertainty measures from commodity futures market and use data on actual capacity changes to measure investment episodes. Capacity changes in US refineries occur infrequently and a small number of investment spikes account for a large fraction of the change in industry capacity. Given the lumpy nature of investment adjustment in this industry, we empirically model the investment process using hazard models. An increase in uncertainty decreases the probability a refinery adjusts its capacity. The results are robust to various investment thresholds. Our findings lend support to theories that emphasize the role of irreversibility in investment decisions.Investments ; Uncertainty ; Petroleum industry and trade

Willingness to pay for climate change mitigation:evidence from China

China has become the largest emitter of carbon dioxide in the world. However, the Chinese public's willingness to pay (WTP) for climate change mitigation is, at best, under-researched. This study draws upon a large national survey of Chinese public cognition and attitude towards climate change and analyzes the determinants of consumers' WTP for energy-efficient and environment-friendly products. Eighty-five percent of respondents indicate that they are willing to pay at least 10 percent more than the market price for these products. The econometric analysis indicates that income, education, age and gender, as well as public awareness and concerns about climate change are significant factors influencing WTP. Respondents who are more knowledgeable and more concerned about the adverse effect of climate change show higher WTP. In comparison, income elasticity is small. The results are robust to different model specifications and estimation techniques. © 2016 by the IAEE. All rights reserved

Solar Power for Resilient Healthcare Systems in Nigeria: Regulatory, Financial, and Organizational Options for Sustainable Business Models

This article investigates sustainable business models for the electrification of primary healthcare facilities (PHCs) through Renewable Energy (RE) in Nigeria. The PHCs using Luminous or lithium batteries require careful allocation of costs potentially among the government, financial institutions and donors. PHCs are unable to bear the operation and maintenance costs, as well as battery replacement in the long term. The university teaching hospitals and small and medium-sized businesses in the surrounding areas can be an option to keep the system working. The Nigerian Rural Electrification Agency (REA) is strategically positioned to coordinate initiatives in integrating the health and energy sectors

Solar Power for Resilient Healthcare Systems in Nigeria: Regulatory, Financial, and Organizational Options for Sustainable Business Models

This article investigates sustainable business models for the electrification of primary healthcare facilities (PHCs) through Renewable Energy (RE) in Nigeria. The PHCs using Luminous or lithium batteries require careful allocation of costs potentially among the government, financial institutions and donors. PHCs are unable to bear the operation and maintenance costs, as well as battery replacement in the long term. The university teaching hospitals and small and medium-sized businesses in the surrounding areas can be an option to keep the system working. The Nigerian Rural Electrification Agency (REA) is strategically positioned to coordinate initiatives in integrating the health and energy sectors

The intersection of fuel and transport policy in Scotland : a review of policy, definitions and metrics

This paper is a literature review of fuel and transport poverty in the U.K. with a focus on contextualising this challenge in Scotland. Building on the discussion in the literature, we see that the objective of policy interventions should be to provide a mechanism for identifying vulnerable households. First, we analyse the definitions of fuel, energy, and transport poverty and observe that definitions in policy have been used to limit the scope of the issue to make it more easily addressable. In contrast, academic research points out that fuel poverty should not only encompass all energy use, including household heating, but that transport poverty should be considered under the same umbrella as the drivers overlap. We then consider the indicators used to measure fuel and transport poverty, finding that the thresholds set are arbitrary and only measure one of many possible drivers, namely expenditure. Through an analysis of the drivers, it is clear that both fuel and transport poverty are complex multidimensional challenges requiring a combination of indicators to allow the policy to accurately identify vulnerable households

Fuel and transport poverty in Scotland : actions towards accurately identifying fuel and transport

Fuel poverty is characterized by the inability to access energy and adequately heat homes. Transport poverty is an adjacent issue often stemming from the same underlying vulnerability, and is inherently linked to fuel poverty with both being associated with household spending decisions. Fuel poverty in Scotland is a growing concern. Although the Fuel Poverty Act was recently introduced to formalise the national strategy, research suggests that the criteria for identifying vulnerable households will not adequately identify those in fuel poverty. The National Transport Strategy proposing equitable and affordable transport does not intersect with policy on fuel poverty and lacks recent data. Similar to fuel poverty, the government strategy to address transport poverty considers cost as the primary driver despite clear evidence in the literature that the issue is multidimensional, with many contributing factors. The research literature suggests the existence of 'double energy vulnerability', i.e., households are often vulnerable to both transport and fuel poverty for often overlapping reasons, and that risk-based assessments of vulnerability should guide indicators for both conditions. Using multidimensional indicators which take account non-expenditure-based factors may lead to better identification of fuel and transport poverty, allowing to mitigate negative consequences associated with both phenomena, including mortality

Have the Chinese National Oil Companies Paid Too Much in Overseas Asset Acquisitions?

This paper provides both a quantitative and qualitative analysis of whether the Chinese national oil companies have “overpaid” than their international counterparts in overseas asset acquisitions during 2001–2017. Using a hedonic pricing framework, we find that while the Chinese companies did not pay more than international oil companies for the period of 2001–2008, there is statistically significant evidence that they overpaid during the 2009–2016 period. A counterfactual analysis was conducted to quantify the extent of the overpayment. Interviews and qualitative analysis suggest that the overpayment mainly results from a rush to gain projects in a period of high oil prices and easier bank loans after the global financial crisis rather than concerns about energy security or other political considerations