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Price, Environmental Regulation, and Fuel Demand: Econometric Estimates for Japanese Manufacturing Industries

Isamu Matsukawa, Yoshifumi Fujii and Seishi Madono

Year: 1993
Volume: Volume14
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No4-3
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Abstract:
In this paper, we analyze interfuel substitution according to Japanesemanufacturing sectors. We examine the impact of environmental regulations and technical changes on fuel choice, and the effects of price on fuel substitution, using pooled data on fuel consumption and purchase price for 58 regions in the period 1980-88. The empirical results, based on the estimation of translog unit fuel cost functions by sector, indicate that (1) substitution possibilities were found for most combinations of fuel types in every sector; and (2) environmental regulations and technical changes significantly impact fuel consumption for most sectors, but their effects on fuel demand differ both across sectors and fuel types.



Electricity Sectors in Transition

Paul L. Joskow

Year: 1998
Volume: Volume19
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No2-3
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Abstract:
This paper discusses the structural and regulatory changes that are affecting electricity sectors around the world. The direction of change is toward promoting competition in the supply of generation services, restructuring of electricity supply enterprises to clearly separate the provision of competitive generation services from monopoly transmission and distribution services, and the application of new regulations governing access to the transmission and distribution networks and the associated costs of the services provided by these networks. The potential impacts of these changes on electricity costs and prices, economic development, the distribution of income, the choice of generating technologies, research and development and the environment are discussed. Differences in the current performance and the likely future impacts of electricity sector restructuring on developing and developed countries are discussed.



Emissions of SO2, NOx and CO2 in Transition Economies: Emission Inventories and Divisia Index Analysis

Laurent Viguier

Year: 1999
Volume: Volume20
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No2-3
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Abstract:
This paper analyses SO2, NOx, and CO2 emissions in three Eastern countries (Hungary, Poland and Russia) and in three OECD countries (France, the United Kingdom and the United States) for 1971-1994. The energy balances method is used to evaluate the emissions from major economic sectors. The emphasis is on explaining high levels of per capita emissions in transition economies. The analysis of the environment-economic growth relationship shows high emission intensities compared to OECD countries. A Divisia index approach is used to decompose the change in emission intensities into the effects of four components: emission factors, fuel mix, economic structure, and energy intensity. The main contribution to high emission intensities in transition economies is from the persistence of high energy intensities.



Price Effects of Boutique Motor Fuels: Federal Environmental Standards, Regional Fuel Choices, and Local Gasoline Prices

W. David Walls and Frank W. Rusco

Year: 2007
Volume: Volume 28
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No3-8
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Abstract:
Federal clean air regulations have spawned a proliferation of motor fuel types that have created differentiated markets for motor fuels, increased the cost of supplying these fuels, and reduced the capacity of the supply infrastructure. In this paper we examine wholesale gasoline prices in 99 US cities over a time horizon of 204 weeks using a panel data regression model to explain fuel prices as a function of fuel attributes, the price of crude oil, and seasonal and city-market-specific effects. Our results show that fuel prices are related to the use of a special blend not widely available in the region and more costly to make, and the situation of the particular city market in relation to major refining centers or other sources of supply.



Environmental and Energy Efficiency of EU Electricity Industry: An Almost Spatial Two Stages DEA Approach

Simona Bigerna, Maria Chiara D’Errico, and Paolo Polinori

Year: 2019
Volume: Volume 40
Number: The New Era of Energy Transition
DOI: 10.5547/01956574.40.1.sbig
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Abstract:
This study analyzes the relationship between the energy efficiency and the stringency of environmental and market regulation in the electricity sectors has been analyzed. Using 19 European Union countries (2006-2014), we decomposed the environmental policy stringency index, the OECD regulatory indicators and the total factor productivity growth to highlight the complexity of the relations between electricity sector and regulatory policies. In the first stage we compute the three main components of total factor productivity. These three efficiency measures are used in the second stage to assess the impact of the regulatory policies on the total factor productivity also controlling for spatial effect. Results suggest that market and environmental regulations have not unidirectional impacts on the three components of total factor productivity. Pure and scale efficiency index are negatively affected by sectorial regulation that positively affect the shift of technological frontier. Environmental policy negatively affects the shift of the efficient frontier, but has a positive effect on the scale efficiency.



The Effects of Fuel Prices, Environmental Regulations, and Other Factors on U.S. Coal Production, 2008-2016

John Coglianese, Todd D. Gerarden, and James H. Stock

Year: 2020
Volume: Volume 41
Number: Number 1
DOI: 10.5547/01956574.41.1.jcog
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Abstract:
We decompose the decline in coal production from 2008 to 2016 into the contributions of several sources. In particular, we estimate the effects of declining natural gas prices and the introduction of new environmental regulations along with several other factors, using both monthly state-level data and annual information on coal plant closings. We estimate that the declining price of natural gas relative to coal is responsible for 92 percent of the total decline in coal production over this period and that environmental regulations account for an additional six percent, with other factors making small and offsetting contributions.



Coal-Biomass Co-firing within Renewable Portfolio Standards: Strategic Adoption by Heterogeneous Firms and Emissions Implications

Brayam Valqui, Mort D. Webster, Shanxia Sun, and Thomas W. Hertel

Year: 2023
Volume: Volume 44
Number: Number 5
DOI: 10.5547/01956574.44.4.bval
View Abstract

Abstract:
As electricity from coal declines, co-firing coal plants with biomass has been proposed to extend coal unit life, increase production, and reduce carbon emissions. Previous studies reach conflicting conclusions on whether coal biomass co-firing would result in a net increase or decrease in carbon emissions. We explore whether biomass co-firing would decrease emissions using a novel framework that includes two critical features of electricity markets: strategic adoption decisions by firms and intertemporal constraints on power plant operations. We apply this framework to a case study based on the Midwestern U.S. electricity market and show that profit maximizing firms will retrofit mid-efficiency coal units, rather than the most or least efficient units. We demonstrate that, contrary to expectations, this strategy leads to a net increase in system-wide carbon emissions under high carbon prices because of the other generators displaced by co-firing units.





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