A consignment auction aims to increase political feasibility by reducing the financial burden of initial permits allocation and to do the role of price discovery. However, previous analytical models presented contradictory results for the price discovery function of a consignment auction. Thus, this study reexamines whether a consignment auction can perform its price discovery function. The study uses a simple game model with several assumptions differentiated from previous analytical models: explicit consideration of the secondary market and firms as price-takers with various behaviors to respond to uncertainty about the price in the secondary market. Firms are classified into three types: speculators who seek arbitrage, doctrinarians who determine a permit demand based on an estimation of their marginal abatement cost, and neutralists who keep a permit demand the same as initial emission endowments. The results reveal that when a consignment auction was introduced, the expected equil... [more]

This paper poses the question: ‘can energy innovation initiatives in Innovation Playgrounds foster a new ‘energy urbanity’ through active citizen participation in the energy transition?’ The concept of ‘Innovation Playgrounds’ and an accompanying Framework are described and linked to implementation evidence of the EU H2020 positive energy research and innovation project +CityxChange, related to emergent active citizen participation in two cities: Limerick, Ireland and Trondheim, Norway. The purpose of the study is to demonstrate that spatially clustered energy innovation initiatives in urban areas involving active citizen participation contribute to a new ‘energy urbanity’ for the energy transition. The research methods are based on a comparative case study approach and close observation of two case sites, with a focus on the ‘Innovation Playground’ area of each city. The article’s three main conclusions are: that a Framework approach to active citizen participation in energy innovatio... [more]

The new energy industry (NEI) is key to achieving a clean and low-carbon economy. Improving its technical efficiency, a factor reflecting the ability of an enterprise or industry to produce maximum economic outputs from a given set of inputs and production technologies, is vital for the healthy development of the NEI. Nevertheless, due to the fragmentation of industry data, it is still difficult to accurately measure the technical efficiency of China’s NEI and understand the driving factors behind it. Based on the panel data derived from 17,457 observations on new energy enterprises in 29 Chinese provinces during 1998 and 2013 (latest data available), this paper uses data envelopment analysis (DEA) and geographically and temporally weighted regression (GTWR) for the first time to investigate the spatiotemporal characteristics and driving factors of the technical efficiency of China’s NEI. The results show that the technical efficiency of China’s NEI was relatively low and increased mod... [more]

The main objective of the research is to analyze the impact of financial sector development indicators and financial institutions access on primary energy use based on a sample of European Union transition members over 20 years period (1996−2017) through panel cointegration and causality tests that allow for cross-section dependence. The causality analysis revealed that the direction of the causality among financial development indicators, financial institutions access, and primary energy use varied among the countries. On the other side, panel cointegration coefficients disclosed that the financial development index positively affected the primary energy use, but private credit did not have a significant effect on the primary energy use. Furthermore, financial institutions’ access had a significant negative impact on primary energy use. However, country-level cointegration coefficients indicated that the financial development index positively affected the primary energy use in Bulgari... [more]

This study investigates the influence of oil price shocks on GDP per capita, exchange rate, and total trade turnover in Azerbaijan using the Structural Vector Autoregressive (SVAR) method to data collected from 1992 to 2019. The estimation results of the SVAR method conclude that oil price shocks (rise in oil prices) affect GDP per capita and total trade turnover positively, whereas its influence on the exchange rate is negative in the case of Azerbaijan. According to results of this study, Azerbaijan and similar oil-exporting countries should reduce the dependence of GDP per capita, the exchange rate, and total trade turnover from oil resources and its prices in the global market. Therefore, these countries should attempt to the diversification of GDP per capita, the exchange rate, and other sources of total trade turnover.

Accurate and timely macro forecasting requires new and powerful predictors. Carbon emissions data with high trading frequency and short releasing lag could play such a role under the framework of mixed data sampling regression techniques. This paper explores the China case in this regard. We find that our multiple autoregressive distributed lag model with mixed data sampling method setup outperforms either the auto-regressive or autoregressive distributed lag benchmark in both in-sample and out-of-sample nowcasting for not only the monthly changes of the purchasing managers’ index in China but also the Chinese quarterly GDP growth. Moreover, it is demonstrated that such capability operates better in nowcasting than h-step ahead forecasting, and remains prominent even after we account for commonly-used macroeconomic predictive factors. The underlying mechanism lies in the critical connection between the demand for carbon emission in excess of the expected quota and the production expans... [more]

The theft of electrical energy is one of the main problems faced by electricity distribution utilities, especially in developing countries. Aware of the difficulties in combating non-technical losses (NTLs) in Brazil, the National Electric Energy Agency (ANEEL) established tolerable limits for the percentage of non-technical losses to each Brazilian distribution utility. Despite the notable progress made by ANEEL, when comparing public utility NTLs and their regulatory targets in the last decade, it was observed that the goals defined by this agency were not able to lead to a general reduction in NTLs in the country. Thus, the search for alternative methodologies to deal with the topic is necessary. A more attractive alternative to the ANEEL’s model is an efficient frontier model. This paper describes a stochastic frontier cost model for panel data whose equation is specified to provide the tolerable limits for the percentage of NTLs. The proposed model was applied to a panel of data c... [more]

With the deregulation of the retail electricity market and the increase of the types of electricity price packages, electricity retail companies provide the recommended service of price packages for users, so as to improve the market competitiveness and user stickiness of enterprises. The existing research does not fully consider the impact of user characteristics and package attributes on recommendation results. This paper proposes a hybrid recommendation method of retail electricity price package based on the characteristics of power users and the multi-attribute utility of price package. Firstly, the hierarchical model of hybrid characteristics of power users in retail electricity market is constructed based on the tree structure, and all characteristics are analyzed quantitatively by proximity measurement method. Then, based on the multi-attribute utility theory, the utility model of retail electricity price package to users is constructed. Secondly, the accurate recommendation of... [more]

This paper examines the dynamic relationship between crude oil prices and the U.S. exchange rate within the structural break detection context. Based on monthly data from January 1996 to April 2019, this paper identifies structural breaks in movements of oil price and examines the dynamic relationship between crude oil prices and the U.S. exchange rate movement by introducing the economic policy uncertainty and using the TVP-VAR (Time-Varying Parameter-Vector Auto Regression ) model. Empirical results indicate that shocks to crude oil prices have immediate and short-term impacts on movements in the exchange rate which are emphasized during the confidence intervals of structural breaks. Oil price shocks and economic policy uncertainty are interrelated and influence movements in the U.S. exchange rate. Since the U.S. dollar is the main currency of the international oil market and the U.S. has become a major exporter of crude oil, the transmission of price shocks to the U.S. exchange rate... [more]

To support regional electricity markets, accurate and reliable energy demand (G) forecast models are vital stratagems for stakeholders in this sector. An online sequential extreme learning machine (OS-ELM) model integrated with a maximum overlap discrete wavelet transform (MODWT) algorithm was developed using daily G data obtained from three regional campuses (i.e., Toowoomba, Ipswich, and Springfield) at the University of Southern Queensland, Australia. In training the objective and benchmark models, the partial autocorrelation function (PACF) was first employed to select the most significant lagged input variables that captured historical fluctuations in the G time-series data. To address the challenges of non-stationarities associated with the model development datasets, a MODWT technique was adopted to decompose the potential model inputs into their wavelet and scaling coefficients before executing the OS-ELM model. The MODWT-PACF-OS-ELM (MPOE) performance was tested and compared w... [more]

The aim of this review was to map synergies and trade-offs between sustainable development and energy efficiency and savings regarding exterior lighting. Exterior lighting, such as public road and street lighting, requires significant amounts of energy and hinders sustainable development through its increasing of light pollution, ecological impact, and global climate change. Interlinkages between indicators in sustainability and energy that have positive interactions will lead to a mutual reinforcement in the decision-making process, and vice versa, interlinkages between trade-offs may lead to unwanted and conflicting effects. Very few studies have presented a clear vision of how exterior lighting should be contributing to, and not counteracting, the sustainable development of our planet. This study was conducted through a theoretical and systematic analysis that examined the interactions between sustainable development and energy performance based on a framework using indicators and v... [more]

Renewable fuel standards for biofuels have been written into policy in the U.S. to reduce the greenhouse gas (GHG) intensity of transportation energy supply. Biofuel feedstocks sourced from within a regional market have the potential to also address sustainability goals. The U.S. Mid-Atlantic region could meet the advanced fuel designation specified in the Renewable Fuel Standard (RFS2), which requires a 50% reduction in GHG emissions relative to a gasoline baseline fuel, through ethanol produced from winter barley (Hordeum vulgare L.). We estimate technology configurations and winter barley grown on available winter fallow agricultural land in six Mid-Atlantic states. Using spatially weighted stochastic GHG emission estimates for winter barley supply from 374 counties and biorefinery data from a commercial dry-grind facility design with multiple co-products, we conclude that winter barley would meet RFS2 goals even with the U.S. EPA’s indirect land use change estimates. Using a conser... [more]

The paper reports a methodology developed to map energy consumption of the building stock at the urban scale on a GIS environment. Energy consumption has been investigated, focusing on the shift from the individual building scale to the district one with the purpose of identifying larger homogenous energy use areas for addressing policies and plans to improve the quality and the performance levels at the city scale. The urban planning zoning concept was extended to the energy issue to include the energy behavior of each zone that depends on the performance of its individual buildings. The methodology generates GIS maps providing a district scale visualization of energy consumption according to shared criteria. A case study in Bologna city (Italy) is provided. In the specific case, the last update of Emilia-Romagna regional urban planning regulation required a mapping action regarding energy efficiency of homogeneous urban portions defined by the General Urban Plan. The main achieved re... [more]

The introduction of the Green Deal in 2019 by the European Commission poses a significant challenge for EU member states whose power generation is based primarily on fossil fuels. In Poland, nearly 80% of the electricity is produced from fossil fuels. This paper presents an analysis of the risks related to the delays in the accomplishment of investment programs in the Polish power industry. Three scenarios were prepared for balancing the deficiency of about 3 GW of power and 20 TWh of electricity in the national power grid in the years 2031−2040, which may emerge as a result of the delayed accomplishment of investment programs, particularly in nuclear energy. The first scenario presents a variant entailing the rapid phasing out of coal and the replacement of the decommissioned power units with new gas-powered units, where the missing power volume would be partially balanced by import, and partially through gas-based production in the new power units. The second scenario assumes that th... [more]

Boosting the externalities across the water, energy, food, and waste (WEFW) sectors is challenging, especially considering tightening constraints such as population growth, climate change, resource-intensive lifestyles, increased waste production, sanitary crises and many others. The nexus approach supports the transition to a more sustainable future because intersectoral trade-offs can be reduced and externalities exploited, making imperative for decision makers, entrepreneurs, and civil society to simultaneously engage, with respect to all the components of the nexus. This research addressed intersectoral synergies and trade-offs in the case of the WEFW nexus in Romania, judging from the perspectives of entrepreneurial activity and economic results. The objective of this research was to explore the nexus in-depth by statistically analyzing the financial and economic indicators reported by active enterprises at county-level, based on the Romanian Ministry of Public Finance data. Resea... [more]

The participation of central banks in the fight against climate change has recently been advanced in several academic articles and policy papers. Since the emerging consensus is that climate change poses financial risks, the envisaged green central banking has a responsibility to address environmental sustainability as a means of promoting financial stability—an increasingly accepted goal of central banks in the post-financial crisis world. Thus far, the pro side of the argument is well represented in the literature, though often the benefits remain implicit: with the help of central banks via monetary and macroprudential policies, a smooth transition to a low-carbon economy would be somehow beneficial to all of us. With this article, we aim to add to this literature by looking at the costs and trade-offs of this course of action in light of the observation that the con side of the proposal has been only marginally addressed. We put forward a framework for the analysis of the costs and... [more]

California has set two ambitious targets aimed at achieving a high level of decarbonization in the coming decades, namely (i) to generate 60% and 100% of its electricity using renewable energy (RE) technologies, respectively, by 2030 and by 2045, and (ii) introducing at least 5 million zero emission vehicles (ZEVs) by 2030, as a first step towards all new vehicles being ZEVs by 2035. In addition, in California, photovoltaics (PVs) coupled with lithium-ion battery (LIB) storage and battery electric vehicles (BEVs) are, respectively, the most promising candidates for new RE installations and new ZEVs, respectively. However, concerns have been voiced about how meeting both targets at the same time could potentially negatively affect the electricity grid’s stability, and hence also its overall energy and carbon performance. This paper addresses those concerns by presenting a thorough life-cycle carbon emission and energy analysis based on an original grid balancing model that uses a combin... [more]

The residential building stock represents one of the major players in energy use and greenhouse gas emissions; thus, it is fundamental to reduce the energy used. Simulation tools are becoming more and more accurate in compliance with the new requirements both at the single-building and at the district scale, although they are not affordable by non-specialist users such as policymakers. The research concerns the evaluation of the energy demand for space heating for a historical district that is representative of the Italian building stock. The work compares dynamic and specialist-oriented urban scale tools such as Energy Urban Resistance Capacitance Approach (EUReCA) and City Energy Analyst (CEA)) as well as a quasi-steady-state calculation method (Excel spreadsheet), which is more affordable for non-specialist users. The work was carried out to assess the possible deviation of the results between the dynamic and quasi-steady-state calculation methods, as well as to identify any limits... [more]

Natural gas is expected to play an important role in the coming low-carbon energy transition. However, conventional gas resources are gradually being replaced by unconventional ones and a question remains: to what extent is net-energy production impacted by the use of lower-quality energy sources? This aspect of the energy transition was only partially explored in previous discussions. To fill this gap, this paper incorporates standard energy-return-on-investment (EROI) estimates and dynamic functions into the GlobalShift bottom-up model at a global level. We find that the energy necessary to produce gas (including direct and indirect energy and material costs) corresponds to 6.7% of the gross energy produced at present, and is growing at an exponential rate: by 2050, it will reach 23.7%. Our results highlight the necessity of viewing the energy transition through the net-energy prism and call for a greater number of EROI studies.

The recent trend in New Economics is the establishment of measures of sustainable wealth and welfare which take into account all the parameters of economic, environmental, and social life and progress, juxtaposed to the conventional and myopic GDP. This review summarizes results from a series of recent papers in the energy-growth nexus field, which have perused a proxy for the sustainable GDP instead of the conventional GDP and discusses the difference in results and policy implications. The energy-growth nexus field itself has generated a bulk of work since the seminal study of Kraft and Kraft (1978), but still the field needs new perspectives in order to generate results with a consensus. The bidirectional causality between energy consumption and sustainable economy provides evidence for the Feedback Hypothesis, a statement that essentially warns that it is too early for sustainability to be feasible without fossil energy consumption, and vice versa. The unidirectional causality reve... [more]

The sustainability transition of rural areas is a must due to rapid climate changes and biodiversity loss. Given the limited resources of rural communities, policy should facilitate a just sustainability transition of the EU rural areas. The analysis of EU development policies, past performance and the envisaged scope of reform, presented in this study point to a serious inconsistency between the declaration and implementation of relevant policies. Namely, the marginal role rural areas perform in common agricultural policy and cohesion policy; a result of the lack of a complex approach to rural development. The analysis was based on the concept of good governance and took a multi-level perspective. It advocates territorial justice as an approach that should be at the core of creating a comprehensive policy for rural areas in the EU, including their diversity and empowering local communities to choose the transition pathway that is most in line with their current situation and developme... [more]

The paper aims to identify the significant heterogeneity of socio-economic rural development in Poland by identifying different types of rural areas and clarifying the existing diversity. This objective requires the following: (1) defining the rural development in Polish conditions, (2) abandoning the urban−rural continuum concept, and (3) conducting an analysis involving data aggregated from the local administrative units (2173 gminas/communes). The approach is exploratory and is limited to two questions elaborating the main problem related to the scale and character of rural variety: What socio-economic types of rural area are found in Poland? How are they distributed spatially? The statistical procedure is based on Diday’s dynamic clouds typological analysis. This yielded seven types of rural areas that exhaust their diversity. The main indicator of the character of the different types is related to the level of deagrarianisation of the local economy. The authors argue that the a pr... [more]

Ocean energy is a promising source of clean renewable energy, with clear development targets set by the European Commission. However, the ocean energy sector faces non-technological challenges and opportunities that are frequently overlooked in deployment plans. The present study aimed to provide a critical evaluation of the ocean energy sector’s legal, institutional, and political frameworks with an identification and analysis of both barriers and enabling features for the deployment of ocean energy. In the first stage, a literature review on the current political and regulatory frameworks of a set of European countries was carried out, setting the basis for the main challenges and enabling factors faced by the sector. Secondly, a critical analysis of the main non-technological barriers and enablers was performed, which was supported by questionnaires sent to regulators, technology developers, and test-site managers. This questionnaire allowed us to collect and integrate the views, pe... [more]

The principal goal of this paper is to investigate the views of local government officials on revitalisation priorities in Polish municipalities. To accomplish this, the perception of revitalisation objectives by local government representatives (who, according to Polish regulations, are responsible for revitalisation planning and carrying it out) was examined. A catalogue of revitalisation objectives, which were assessed by the respondents, was drawn up on the basis of a review of research on the conceptualisation and measurement of sustainable revitalisation and social sustainability at the local level. Exploratory factor analysis was the method used in the study. In total, the list of the examined revitalisation objectives includes 26 objectives related to the following revitalisation dimensions: infrastructure, community, economy, environment, space, co-governance, and inclusion. A survey of the executive bodies of 573 municipalities in Poland revealed a discrepancy between the sus... [more]

A key question for European energy transition is which forms of renewable energy technologies will play a central role in this process. The recent dynamic growth in offshore wind power together with the vast wind energy potential of the European seas, including the Baltic Sea, make this technology an increasingly attractive and viable option. Considering the high installation and connection costs, government support is considered essential for the development of offshore wind power. The aim of this article is to analyze Poland’s public policy tools, which govern offshore wind farm development, and to present them from a wider geostrategic perspective. Authors identify, classify, and evaluate individual public policy tools with the use of multi-criteria and multi-dimensional methods while explaining their impact on offshore wind development in Poland. The analysis of the individual tools has shown that the currently applied tools give a high probability of achieving public policy object... [more]