Archive for category Climate change

Local Programmes for Energy Efficiency

ECONOMIC AND ENVIRONMENTAL IMPACT OF THE ENERGY EFFICIENCY PLAN OF THE CITY OF BILBAO, by Juan Delgado, Ibon Galarraga, Mikel González and Josu Lucas

DYNA Energía y Sostenibilidad, January 2015, vol. 4, no. 1, p.1-8.

Energy efficiency programmes aim to rationalize energy consumption and reduce carbon emissions. In the past 10 years an increasing number of cities and regions have developed efficiency plans. Energy efficiency programmes generally require new upfront investments in more efficient infrastructure and equipment which are offset by lower recurring energy costs. This paper analyses the economic and (direct and indirect) environmental effects of an energy efficiency plan based on a real case study in the city of Bilbao. Our analysis strives to differentiate between new and additional measures included in the plan and those that would have been implemented in any case, and to take into account alternative uses of the funds allocated to the programme. These issues are critical in understanding the real economic and environmental effects of such plans and to avoid double accounting for multiplicatier effects.

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Climate Policy Fine-tuning

Interactions Between Climate Policies in the Power Sector, by Paulina Beato and Juan Delgado

Published in Green Energy and Efficiency: An Economic Perspective. A. Ansuátegi, J. Delgado and I. Galarraga (eds.). Ed. Springer, 2014.

For the purpose of limiting global temperature increases, governments have designed a broad range of policy instruments in order to reduce carbon emissions such as carbon taxes, carbon markets and renewable energy support policies. Although such instruments aim to serve the same purpose, they are rarely fine-tuned to guarantee their consistency. Carbon markets are in theory the most efficient instrument to reduce emissions. The use of other instruments is justified under the presence of circumstances that undermine the effectiveness of carbon markets such as market design flaws or innovation externalities. In such cases, the optimal climate policy mix should be carefully designed to take into account the potential interactions between policy instruments.

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The Economics of Green Energy and Efficiency

Green Energy and Efficiency: An Economic Perspective. A. Ansuátegi, J. Delgado and I. Galarraga (eds.). Ed. Springer, 2014.

9783319036328Energy efficiency technologies represent a key driver for the reduction of energy demand through a more efficient use of energy. The progressive switch to green sources of energy allows using the same amount of energy while reducing carbon emissions. The combination of measures to increase the efficient use of energy and to switch to cleaner sources of energy allows reducing energy demand and reducing the emissions per unit of energy produced. Energy efficiency and the development of alternative sources of clean energy are key elements for the attainment of global climate objectives. The cost and effectiveness of efficiency measures and of the transition to a greener energy world is not however absent of controversy.

This book presents up-to-date research on the economics of green energy and energy efficiency from a variety of perspectives, from a general overview of the economics of green energy and efficiency to the detailed analysis of specific policies and investment decisions.

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Restructuring the Spanish Power Industry

El Sudoku Eléctrico I: un Diagnóstico (The Spanish power industry sudoku: a diagnostic)

El Sudoku Eléctrico II: un Marco para su Reforma (The Spanish power industry sudoku: a framework for restructuring)

By Juan Delgado.

Nada es Gratis, un blog de economía casi siempre en español.

The Spanish Government is in the process of restructuring the power sector. Juan Delgado offers a diagnostic and a framework for restructuring in the economics blog “Nada es Gratis”. Competitive markets, capacity markets, a long term renewables support mechanism and a transparent price formation process are proposed as the axes of a long-term perspective restructuring process.

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Renewable Energy: The Whys and the Why-nots

Energías Renovables: Por Qué Sí y Por Qué No (Renewable Energies: The Whys and the Why-nots), by Juan Delgado.

PAPELES DE ECONOMÍA ESPAÑOLA. El sector energético español; (2013), nº 134

Portada publicación

Renewable energies are meant to play a leading role in climate policies. All EU member states have put in place policies to promote renewable energies. However, the multiplicity of objectives and the poor design of such mechanisms have limited their impact on reducing greenhouse gas emissions. For a proper design of renewables policies, we first need to identify the market failure we are trying to solve. In the case of renewables, greenhouse gas emissions are the «big failure» and technology externalities help to solve such failure.

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Towards a Sustainable Power Sector

Hacia un Sector Eléctrico Sostenible (Towards a Sustainable Power Sector), by Juan Delgado.

ZOOM ECONÓMICO

The Spanish government approved on September 14th a partial reform of the power sector. Juan Delgado analyses the terms of the reform and establishes the main ingredients a true power sector reform should contain, i.e., the promotion of market mechanisms, a long-term de-carbonization agenda and the implementation of market mechanisms to guarantee supply.

A shorter version is posted at the Fundación Alternativas Blog

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The Future of Energy

La energía del futuro se decide hoy (The energy of the future should be decided now), by Paulina Beato and Juan Delgado.

EL PAÍS

The global energy landscape has changed dramatically in the last year due mainly to two events: the Fukushima accident and the discovery of new and abundant gas reserves. The challenges for the energy policy remain: securing energy supply in a competitive and environmentally sustainable way, but the path to meet them has changed. The strategy to meet these challenges should be implemented now.

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