In several OECD countries such as the United Kingdom, the United States and France, nuclear power is envisioned as having a role to play alongside renewables to reduce greenhouse gas emissions. Leaving aside post-Fukushima-Daiichi safety concerns, the major issue for nuclear power is whether new builds could be achieved at reasonable costs. In fact, ever…
Month: February 2026
From Boom to Bust? A Critical Look at US Shale Gas Projections
U.S. shale gas production is generally expected to continue its fast rise of the last years. However, a cautious evaluation is needed. Shale gas resources are potentially overestimated and it is uncertain to what extent they can be economically produced. The adverse environmental effects of ever more wells being drilled may lead to a fall…
Decision Framework for Selecting Flexibility Mechanisms in Distribution Grids
Residential Welfare-Loss from Electricity Supply Interruptions in South Africa: Cost-Benefit Analysis of Distributed Energy Resource Subsidy Programs
This paper uses market data on income, electricity price, and electricity demand to estimate residential welfare loss caused by electricity supply interruptions in South Africa. The welfare-loss estimation (or “willingness-to-pay”) uses cross-sectional data from 16,851 South African households. A two-part (probit and OLS) estimation method is used to model price and income elasticities, and a…
Evaluating Renewable Portfolio Standards for In-State Renewable Deployment: Accounting for Policy Heterogeneity
Renewable portfolio standards (RPS) are the most common state-level policies for promoting renewable electricity in the United States. State RPS policies are heterogeneously designed, particularly with respect to their use of flexibility mechanisms that allow obligations to be met with renewable energy generated in other states. However, the renewable energy that is produced within an…
The Green Paradox of U.S. Biofuel Subsidies: Impact on Greenhouse Gas Emissions
This paper presents the first comprehensive estimates of the impact of U.S. biofuel subsidies on greenhouse gas emissions. Although U.S. support for biofuels is large and growing, the associated impact on greenhouse gas emissions remains unclear. The effect of biofuel subsidies on emissions is determined by the relative magnitudes of countervailing substitution and price effects….
The Dynamics of Energy Poverty: Evidence from Spain
Reducing the proportion of households defined as energy poor is an increasingly important policy objective. This paper uses longitudinal data to examine the level and dynamics of energy poverty in Spain, comparing the results to the level and dynamics of income poverty. Two alternative measures of energy poverty are used in the analysis – one…
Book Reviews
Power System Transformation toward Renewables: Investment Scenarios for Germany
We analyze distinctive investment scenarios for the integration of fluctuating renewables in the German power system. Using a combined model for dispatch, transmission, and investment, three different investment options are considered, including gas-fired power plants, pumped hydro storage, and transmission lines. We find that geographically optimized power plant investments dominate in the reference scenarios for…
The German “Energiewende”—An Introduction
The German government’s multi-decade effort to transition to a low-carbon, renew-ables-based energy economy is now commonly known as “energiewende” (“energy transition”). The transition has four major objectives: increasing the share of renewables to at least 80% (in electricity) and 60% for total final energy consumption, reducing greenhouse gas emissions by 80-95% (basis: 1990), phasing out…