In the period 2006-2013, China’s power sector adopted a policy which aimed to add large scale units (larger than 600 MW) and decommission small, old (but still technically functioning) and inefficient power plants in order to accelerate energy saving and mitigate emissions. The early-retirement (ER) of nearly 90 GW of capacity and massive new coal…
Assessing the viability of Energy-Only Markets with 100% Renewables
Abstract – Efficient wholesale electricity markets should drive preference revealing bidding where generators offer the majority of their power at their short run marginal cost (SRMC). However, most renewables have very low SRMCs, which in a competitive market is likely to lead to an increasing proportion of low priced periods. Combined with concerns around the…
Measuring Energy Efficiency: Accounting for the Hidden Costs of Product Failure
Several recent studies suggest that minimum energy efficiency standards for appliances have resulted in higher-quality products with little or no increase in price. We have conducted case studies for the two major household appliances—clothes washers and refrigerators—subject to Department of Energy (DOE) energy efficiency standards implemented over the 2001 to 2011 period. We identify three…
Projecting Energy and Climate for the 21st Century
The growing evidence of severe climate change impacts on human life and the global economy has created the increasing need for an assessment of low-carbon pathways. While the ultimate goal of zero- or near-zero global emissions is clear, the timing and trajectory to achieve low-carbon economic system is not. Projecting energy and climate is getting…
Book Reviews
On the Techno-economic Benefits of a Global Energy Interconnection
The discussion about the benefits of a global energy interconnection is gaining momentum in recent years. The techno-economic benefits of this integration are broadly discussed for the major regions around the world. While there has not been substantial research on the techno-economic benefits, however, some initial results of the global energy interconnection are presented in…
Towards a general “Europeanization” of EU Member States’ energy policies?
It is often argued that energy policy is too fragmented across EU Member States and should be “Europeanized” to pave the way towards an efficiently organized European power system, which rests on the internal market for energy and a pan-European super-grid. However, this view neglects i) the heterogeneity of European energy policies in terms of…
Book Reviews
Symposium on “International Climate Negotiations” – Introduction
Internalizing the Climate Externality: Can a Uniform Price Commitment Help?
It is difficult to resolve the global warming free-rider externality problem by negotiating many different quantity targets. By contrast, negotiating a single internationally-binding minimum carbon price (the proceeds from which are domestically retained) counters self-interest by incentivizing agents to internalize the externality. In this contribution I attempt to sketch out, mostly with verbal arguments, the…