[en] Highlights: • South Korea will increase domestic wind power facilities for employment and growth. • The price premium for power generated from the domestic facilities is estimated. • A contingent valuation survey of 1000 households was conducted. • The price premium was worth 21.4% of the electricity price. • It should be noted that 58.3% of the interviewees reported zero price premium. South Korea tried to drastically expand the capacity of wind power generation from 1.8 GW in 2020 to 24.9 GW in 2034. Moreover, the “Green New Deal” policy is being implemented to promote employment and growth by using domestic wind power facilities. This article estimates additional willingness to pay (WTP) or price premium, for electricity generated from domestic wind power facilities over that from imported ones. For this purpose, a contingent valuation survey of 1000 households was carried out employing the closed-ended question during September 2020. A spike model is utilized to reflect the zero WTP values reported by 58.3% of the interviewees. Several factors affecting the price premium were also analyzed to derive implications. The average price premium for electricity generated from domestic wind power generation facilities was estimated to be KRW 22.5 (USD 0.019) per kWh with statistical significance. This value reaches 21.4% of the electricity price for 2019 (KRW105 or USD 0.089 per kWh). It should be noted that more than half of the people reported a zero price premium, as they thought that “Green” is more important than “New Deal,” or they worried that the supply of domestic wind power facilities could raise electricity bills.

[en] Highlights: • The analysis shows how effects of carbon pricing differ among population segments. • Regressivity differs severely due to structural factors and socio-demographics. • Using the full potential of EASI demand system by including household heterogeneity. • Design and evaluation of target-group specific compensation measures. • Considering household heterogeneity is essential to yield socially-fair carbon tax. This paper studies the distributional impacts of a carbon tax in Austria and explores compensating measures to mitigate negative side effects. We extend previous studies by focussing on household heterogeneity, i.e. how housing attributes and socio-demographics govern a household's vulnerability to energy price increases. We apply the EASI demand system, which captures non-linear Engel curves and heterogeneous preferences; both crucial to estimate energy consumption. By simulating stylised, separate price increases we identify how seemingly overall similar welfare effects differ, depending on the energy good taxed, the region a household lives in, year of construction and household composition. These impact channels, with the severity of impacts differing according to various household characteristics are also reflected by the carbon tax scenario and reveal the importance of targeted support schemes. Although, each of the tested transfer schemes is able to enhance equality and cushion negative welfare effects, transfer schemes focussing on household size or on particular vulnerable population segments show the strongest effects in terms of equality, proportionality of the tax burden and welfare. Consequently, in order to yield a socially fair energy or carbon tax regime, taking household heterogeneity into account is essential.

[en] Highlights: • A Nash-Cournot model is used to study a proposed power-purchase agreement (PPA). • A key feature of the PPA is a profit guarantee that is attained via a subsidy. • Perverse incentives created by the subsidy lead to reduced output and higher prices. • Effects particularly pronounced under corporate-separation asset-ownership model. • Numerical case study illustrates deleterious social-welfare effects of the proposal. We investigate the incentive, market-behavior, and welfare effects of a proposed profit guarantee and associated power purchase agreement (PPA), which was introduced to ensure that generating firms remain viable through periods of higher-than-normal costs. The PPA ensures a guaranteed profit level either by transferring excess revenues from the affected firms to consumers or levying a surcharge on consumers to fund a subsidy for the affected firms. We develop and analyze a stylized Nash-Cournot model of a wholesale electricity market to examine the incentive effects of the proposed PPA. We find that the proposed PPA has incentive impacts that are contrary to its stated aim. The PPA incentivizes uneconomic firms to remain in the market when otherwise they would exit and incentivizes the shutdown of otherwise economically viable firms to restrict output, increasing prices. We find that the effects are pronounced by the corporate-separation asset-ownership structure that is employed in many jurisdictions. The theoretical results of the Nash-Cournot analysis are illustrated with a numerical case study which shows the deleterious consumer- and social-welfare effects of this incentive scheme. We discuss practical implications for regulatory policy, namely, that the proposed mechanism is ill-conceived, inefficient, and creates perverse incentives.

[en] Highlights: • We estimate the price elasticity of residential electricity consumption in Switzerland. • We use a unique longitudinal household survey of around 5000 households. • We use an instrumental variables approach to obtain consistent estimates of the price elasticity. • Results indicate that the short-to medium-run price elasticity is around −0.7 • Policy makers can use pricing policy to reduce or stabilise electricity consumption in Switzerland. In this paper, we estimate the price elasticity of residential electricity consumption in Switzerland using a unique longitudinal household survey of around 5000 households. The survey contains information on a household's stock of appliances, use of appliances, and various socio-demographic characteristics. Our empirical model is derived from a variant of household production theory that posits electricity demand as being a derived demand for energy services. Based on this, we extend our basic model by using information on energy services, e.g. the amount of washing and the amount of cooking. We also use an instrumental variables approach to obtain consistent estimates of the price elasticity to account for potential endogeneity concerns with the average price. Our results indicate that the short-to medium-run price elasticity is around −0.7. This implies that policy makers concerned about reducing electricity consumption can use pricing policy, with a combination of other policies, to effectively reduce or, at least, stabilise electricity consumption in Switzerland.

[en] Highlights: • Long-term simulation of residential battery storage diffusion in Germany. • Joint application of a prosumer model and an agent-based electricity market model. • Battery storage systems will become profitable even under an unfavorable regulation. • Moderate impacts of residential battery diffusion on utilities' expansion planning. • Operational strategy has a crucial impact on the system integration of renewables. Cost reductions of rooftop photovoltaics and battery storage, increasing retail electricity prices as well as falling feed-in remuneration provide strong incentives for many German households to engage in self-consumption. These developments may also affect the electricity system as a whole. Against this background, we jointly apply a prosumer simulation and an agent-based electricity market simulation in order to investigate the long-term impacts of a residential battery storage diffusion on the electricity market. We analyze different regulatory frameworks and find significant effects on the household level, yet only moderate system impacts. In the long run, the diffusion of residential battery storage seems difficult to govern, even under a restrictive regulation. In contrast, the way the batteries are operated may be easier to regulate. Policymakers and regulators should focus on this aspect, since a system-friendly battery operation supports the system integration of residential photovoltaics while having little impact on the households’ self-sufficiency.

[en] Highlights: • A structured analysis of the policy barriers to energy transition in South Africa. • The derivation of a new generic taxonomy of policy barriers. • Insightful contributions from 28 interviews with key energy experts. • Policy recommendations to the South African government. A transition away from fossil fuels in South Africa is required to meet the obligations of the Paris Agreement, and to address the challenge of climate change. The country remains on an unsustainable path towards increasing fossil fuel dependency, while its immense potential for renewable energy lies untapped. Urgent work is needed to identify and assess the policy barriers which are holding the country back. The limited literature on barrier theory is reviewed, and a new taxonomy of policy barriers is developed. This is then used to interpret the findings of 28 elite semi-structured interviews with key organisations and individuals, which are analysed to ascertain what lies beneath the current direction of travel, and how these barriers are impeding progress. The paper develops the policy implications of those findings and presents conclusions for action needed by the South African government and others. It further concludes that the techniques developed are applicable to a wide range of transitional situations.

[en] Highlights: • Experts evaluated identified threats on security of natural gas supply in Serbia. • The most effective strategic measures for diminishing threats were prioritized. • Fuzzy AHP was applied for the analysis of the experts' judgments. • The priorities are establishing new import sources, routes, and interconnections. • The results are verified with the N-1 indicator and the Herfindahl-Hirschman Index. To strengthen the security of supply of the Serbian gas sector, it is necessary to analyze the impact of planned strategic measures. The analysis involves the identification of the most influential threats to the security of natural gas supply and prioritization of the strategic measures for overcoming the consequences of threats. The proposed methodology is based on Fuzzy Analytic Hierarchy Process. The obtained weights for the identified threats and strategic measures are formed according to experts' judgments. The results of the experts’ judgments indicate that the most influential threats are termination of supply at the border with Hungary, termination of supply from Russia, and termination of supply from gas storage. The strategic measure with the highest priority is the so-called “Turkish Stream” project. Two additional strategic measures (gas interconnection Serbia – Bulgaria and the project of expanding the capacities of underground gas storage) could also be beneficial. The final results are validated by two security of supply indicators - Infrastructural Supply Standard (N-1) and Herfindahl-Hirschman Index (HHI). The N-1 is implemented to examine the preparedness of the gas system for disruption of the largest source in the network, while the HHI is implemented to examine the diversification of the imports.

[en] Highlights: • PM_2.5 concentration increase in primarily commercial and middle-income residential areas during COVID-19 lockdown. • Higher ambient PM_2.5 concentrations during lockdown (2020) compared with 2019 differs from findings in other cities. • PM_2.5 concentration increase during lockdown driven by home heating with wood, evidenced by higher fine fraction of PM₁₀. • PM_2.5 concentration decrease in low-income residential areas during lockdown likely due to a decline in wood heating. • PM_2.5 concentration decreases during COVID-19 lockdown are likely the result of energy poverty in Temuco. The effect of COVID-19 lockdowns on ambient air pollution levels in urban south-central Chile, where outdoor air pollution primarily originates indoors from wood burning for heating, may differ from trends in cities where transportation and industrial emission sources dominate. This quasi-experimental study compared hourly fine (PM_2.5) and coarse (PM₁₀) particulate matter measurements from six air monitors (three beta attenuation monitors; three low-cost sensors) in commercial and low/middle-income residential areas of Temuco, Chile between 2019 and 2020. The potential impact of varying annual meterological conditions on air quality was also assessed. During COVID-19 lockdown, average monthly ambient PM_2.5 concentrations in a commercial and middle-income residential neighborhood of Temuco were up to 50% higher (from 12 to 18 μg/m³) and 59% higher (from 22 to 35 μg/m³) than 2019 levels, respectively. Conversely, PM_2.5 levels decreased by up to 52% (from 43 to 21 μg/m³) in low-income areas. The fine fraction of PM₁₀ in April 2020 was 48% higher than in April 2017–2019 (from 50% to 74%) in a commercial area. These changes did not appear to result from meterological differences between years. During COVID-19 lockdown, higher outdoor PM_2.5 pollution from wood heating existed in more affluent areas of Temuco, while PM_2.5 concentrations declined among poorer households refraining from wood heating. To reduce air pollution and energy poverty in south-central Chile, affordability of clean heating fuels (e.g. electricity) should be a policy priority.

[en] Highlights: • Around 40 photovoltaic and wind farms have been proposed in Yucatan, Mexico. • This region is recognized by its biodiversity richness and vulnerable ecosystems. • However, 19 Environmental Impact Assessment processes have been already authorized. • Environmental controversies are analyzed for 5 wind farms on the Yucatan coast. • This analysis would help to reduce environmental impacts and social discontent. Through the analysis of the corresponding Environmental Impact Assessment (EIA) for five wind projects set up on the Yucatan coast, in Mexico, this work seeks to draw attention to the environmental controversies that these projects generate. To carry out our analysis, we resorted to three sources of information that are part of the EIA process: (i) the Environmental Impact Statement (EIS), presented by private companies, for these wind farms; (ii) observations and criticisms of the EIS, presented by the civil society during the public process to which the EIS is submitted; and (iii) the rulings emitted by the federal environmental authorities. This documentation was complemented by participation in a number of forums and some interviews. Based on this analysis, we defined a series of deficiencies in the EIA process. Accordingly, we can affirm that in Mexico, as in other countries, there is no wind energy plan capable of reconciling energy objectives with nature conservation. Renewable energy projects in Mexico have been designed solely based on the distribution of wind or solar resources, completely ignoring environmental or social issues. In this regard, a sustainable energy transition requires strengthening the environmental management capabilities of governments, and the application of mechanisms that will allow the integration of environmental variables in the early stages of decision making, using instruments such as the Strategic Environmental Assessment.

[en] Highlights: • The work explores the impact of party polarization on renewable energy consumption. • It uses data from the European Union countries, spanning the period 2003–2017. • The results show party polarization reduces renewable energy consumption. • Policy recommendations discussed to mitigate the negative effect of polarization. The essential role of renewable energy in mitigating the negative consequences of climate change has led to a growing body of literature that has examined the determinants of renewable energy consumption. Most of the existing studies focused on the macroeconomic, environmental, institutional, and energy-related determinants of renewable energy consumption and neglected the potential role of partisan polarization. The adverse effects of party polarization have been well documented by the literature, but the impact of party polarization on renewable energy consumption has not been examined. To fill this existing gap, this study explicitly explores the association between renewable energy consumption and partisan polarization across 25 European Union countries, spanning the period 2003–2017. The findings document that party polarization is negatively associated with renewable energy consumption after accounting for an extensive set of macroeconomic, environmental, institutional, and energy-related determinants and the use of a different set of estimation methodologies. The paper's findings show another adverse effect of party polarization by demonstrating its negative impact on renewable energy consumption.