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While the International Association for Energy Economics (IAEE) makes every effort to ensure the veracity of the material and the accuracy of the data therein, IAEE is not responsible for the citing of this content until the article is actually printed in a final version of Economics of Energy & Environmental Policy. For example, preprinted articles are often moved from issue to issue affecting page numbers, and actual volume and issue numbers. Care should be given when citing Economics of Energy & Environmental Policy preprint articles.

Economics of Energy & Environmental Policy
Volume 10, Number 2



Electric Vehicles Rollout—Two Case Studies

Fridrik M. Baldursson, Nils-Henrik M. von der Fehr, and Ewa Lazarczyk

DOI: 10.5547/2160-5890.10.2.fbal
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Abstract:
We present and discuss evidence on electric-vehicle rollout in The Netherlands and Norway, two forerunners in this area. We demonstrate that the uptake of electric vehicles is essentially driven by financial and other benefits offered to their owners, and that a partial electrification of the vehicle fleet may be achieved even with limited public charging infrastructure; indeed, infrastructure has tended to follow the development of electric vehicles. The impact on the electricity industry in general and electricity networks in particular has so far been limited, even given the relatively high penetration of electric vehicles.




Empower the Consumer! Energy-related Financial Literacy and its Implications for Economic Decision Making

Julia Blasch, Nina Boogen, Claudio Daminato, and Massimo Filippini

DOI: 10.5547/2160-5890.10.2.jbla
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Abstract:
Untapped energy savings potential in the residential sector might lead to substantial welfare losses. While several studies have focused on the role of behavioral biases in explaining the lack of adoption of energy-efficient durable goods, little is known about the role of limited energy-specific knowledge and financial literacy. In this paper, we propose an integrated concept of ‘energy-related financial literacy’, which combines both energy cost-specific knowledge and skills needed to process this information. Using data from a large household survey in three European countries, we explore the determinants of different measures of literacy and, most importantly, we provide empirical evidence on the association between limited knowledge and skills to perform an intertemporal optimization and the adoption of energy-efficient light bulbs. Our findings support the promotion of energy-specific financial education programs and tools to increase the adoption of energy-efficient durable goods.




Incentive Regulation of Electricity and Gas Networks in the UK: From RIIO-1 to RIIO-2

Tooraj Jamasb

DOI: 10.5547/2160-5890.10.2.tjam
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Abstract:
The regulatory and operating context of energy networks is dynamic and constantly evolving. Achieving a multitude of economic, environmental, social and policy objectives is a challenging task for the sector regulators. In 2010, the UK energy regulator Ofgem replaced its approach to energy network price control and incentive regulation with a Revenue-Incentive-Innovation-Output (RIIO-1) model. This paper reviews the incentive areas that influence the performance of the next version of the model (RIIO-2). Guided by the principles of regulatory economics and evidence in the literature, we discuss key aspects and incentive properties of the regulation model under revision by the regulator. The lessons of experience from the RIIO models are also relevant for regulators in other countries and can inform their design of incentive regulation of energy networks.





 

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