Questions tagged [energy-economics]
The energy-economics tag has no usage guidance.
44
questions
1
vote
1answer
28 views
Does countries building gas plants result in rising gas prices?
Looking at the following chart
we can see that while volatile, the gas price is reaching new record heights.
Now I want to refer to some articles: Germany has to decide on gas-to-power plants quickly ...
0
votes
1answer
43 views
How do you convert or move from a linear cost function to a quadratic cost function?
I am reading a book on electricity cost modelling. I understand equation 2.7 below, which indicates that the total cost for an ith plant is a function of fixed cost(FC), fuel cost(FL), plant ...
1
vote
1answer
82 views
Uniform price vs. pay-as-bid auctions in energy markets
These two types of auctions are most commonly used in the energy trading markets. What would be advantages and disadvantages of each? And in the end, can we expect them to deliver similar outcome?
One,...
2
votes
2answers
146 views
If renewable energy is now cheaper than non-renewable energy, why are we still worried about the climate?
From a recent Our World In Data post,
For the world to transition to low-carbon electricity, energy from these sources needs to be cheaper than electricity from fossil fuels.
Fossil fuels dominate ...
0
votes
1answer
44 views
Why offer curves of a power plant are stepwise increasing?
I was wondering why the supply curve of a power plant in the auction for the Day-Ahead Market is stepwise increasing and not a continuous function with first and second derivative strictly positive.
I ...
0
votes
0answers
14 views
how to adjust price data due to clock changes?
I'm trying to analyze the hourly price variation of the electricity market. However, because of clock changes, due to daylight saving time, we have a missing hour in March and an additional hour in ...
0
votes
0answers
28 views
Necessary Goods, Price Elasticity, Long-Term Calculations
My question is a conceptual one, though it arose from a concrete calculation that I'm working on. I'm looking at the economic viability of thermal retrofits, and this author suggests including the ...
3
votes
0answers
91 views
Calculating Social Welfare from an Energy Subsidy
In Allcott and Greenstone's paper, "Is there an energy efficiency gap?", one finds the following figure
I quote now from p. 13:
"When there are investment inefficiencies, the original marginal
...
0
votes
2answers
41 views
Benchmarking an Energy Investment
I am currently working on a calculation to see whether it is economically feasible for a household to invest in an energy retrofit. I obtain a total profit of around $13\%$ over the lifetime of the ...
4
votes
3answers
90 views
Are businesses and individuals buying clean / green / renewable energy contribute to slowing down the climate change?
I'm not sure if an individual choosing a "green energy supplier" is making any difference.
My (potentially naive, uneducated) logic is as follows:
...
1
vote
1answer
37 views
Uniform price vs discriminatory price double auction
Uniform price and discriminatory price double auctions are the most commonly used auction mechanisms in the trading markets especially in peer-to-peer energy trading markets. However, I could not find ...
0
votes
1answer
47 views
Costs of transportation
I assume that it makes sense to ask for the energy costs of transportation of different goods per weight and volumetric mass density, depending on the means of transportation (truck, train, ship, etc.)...
3
votes
0answers
57 views
Can technical change have a negative growth rate?
Using the following nested CES function
I have backed out augmentation indices $A_L$ and $A_E$. Where $A_L$ is a labour-augmenting technical change index and $A_E$ is an energy-augmenting technical ...
5
votes
1answer
241 views
Was the 2008 financial crisis caused more by the US subprime mortgage lending or more by an international energy and oil pricing crisis?
I recently read The Big Short by Michael Lewis in which the depiction of the role of subprime mortgage lending in the US and then run away speculation on CDOs are shown to be the central and primary ...
1
vote
0answers
21 views
Market modelling with prosumers
I am working on energy integration modelling in a system with prosumers. I was wondering if there is any well-known theory or model in the economics literature for markets (specially multi-commodity ...
1
vote
1answer
28 views
Energy Costs by Source over Time
I'm looking for a comparison I can make between "traditional" energy sources and solar energy.
Ideally, I'd like to show how much solar energy has yet to come down in price before it is cheaper than,...
1
vote
1answer
80 views
Electric Vehicle effects on family and macro-economics?
What happens economically when cars last 1000,000 miles on cheap local energy?
EV's can save an average family 2000 dollars a year on energy costs, and 2000 per year on automotive investment.
That'...
4
votes
2answers
215 views
If 1% of the solar energy of the Sahara can power the entire world, why isn't it happening?
There is an article on Forbes where Mehran Moalem, UC Berkeley professor, argues:
1.2% of the Sahara desert is sufficient to cover all of the energy needs of the world in solar energy. [...] The ...
0
votes
1answer
76 views
What is the best example social norm effect economy?
Here is my example.
I read the paper called "Social norms and Energy Conservation" (2010) by Hunt Allcott, about the energy conservation of households by providing them with the amount of energy ...
3
votes
2answers
736 views
How can energy consumption be an indicator of per capita availability of capital?
"An important indicator of low capital per head available in developing countries is the consumption of energy". I could not decipher the concept.
0
votes
1answer
78 views
Levelized cost of electricity, to calculate the absolute costs?
I'm doing my master thesis about the renewable energies. So my goal is to calculate how much it will cost to switch our fuel based energy generation to renewable energy generation. So my first thought ...
25
votes
4answers
4k views
How can power/electricity prices be negative?
Bloomberg shows this chart:
I understand the above chart to mean that consumers were actually paid to use electricity. (Please correct me if I'm mistaken.)
I was wondering how this is possible? How ...
2
votes
1answer
32 views
Energy saving technology and energy service price
I want to assess the effects of energy saving technologies on output growth using time series data. My work would benefit from time series data on patents for energy saving innovations, but this is ...
1
vote
0answers
98 views
Technology, Prices, and the Derived Demand for Energy
I was reading the paper by Berndt and Wood (1975), "Technology, Prices, and the Derived Demand for Energy". It was an interesting paper to read but there has not been anything done on this in nearly ...
0
votes
1answer
49 views
Locational Marginal Pricing when different prices and when the same?
I am kinda confused about this YouTube video.
So the LMP with no constraints is the same in both nodes. For me it was the same because I used those offers from node 1 also in node 2 and we chose the ...
1
vote
2answers
271 views
Are risk-costs a form of external costs?
An example to make to question more clear: With the use of nuclear power plants come several risk-costs (the risk of a nuclear disaster). These costs aren't included in the energy price and there is ...
2
votes
2answers
122 views
Are there any drawbacks to a hypothetical climate policy?- Carbon tax for reducing Income tax
Disclaimer: I do not have a formal education in economics
Here is the idea of my hypothetical policy: graduated over a period, say about 10 years or longer, the income tax is phased out and a carbon ...
2
votes
0answers
66 views
Economics of grid extension versus off-grid electrification in developing countries
Quite a bit of research is available on the local economic effects of electrification in communities in developing countries (this article and its references go into quite a bit of detail on the topic)...
6
votes
3answers
99 views
Why does BC Hydro want us to use less power?
I live in British Columbia, Canada, and we have a hydro electric company called BC hydro that supplies our power. They run ads encouraging us to use less power. I have been wondering why they would do ...
0
votes
0answers
430 views
Capital - augmenting and energy-augmenting technical progress
I've read a number of papers on factor - augmenting technical progress and directed technical change. Authors do not note about the implications of factor - augmentation in sufficient details. Assume ...
3
votes
1answer
2k views
Electricity as inelastic good
Could be electricity considered as an inelastic good?
I am interested in the electricity delivered to final consumers in member countries of Nordpool Spot (Norway, Sweden, Finland, Denmark, Estonia, ...
1
vote
1answer
56 views
What are the implication of state-run oil production vs. private production from leases?
I'm not any kind of expert in this area, so please be gentle.
It seems that we speak of oil (and other natural resources) as though control of output and revenue from extraction adheres to the ...
1
vote
1answer
39 views
Dec 2015: What would cause natural gas and crude oil to go up?
Natural gas prices are down like crazy this year as you can see from the chart below:
I don't understand how these prices are maintainable. I know these this price trend is largely because of the ...
2
votes
1answer
721 views
Principal Components Analysis in Economic analysis
I have a data set of annual prices of various energy carriers over several decades. I want to estimate a model of output using these price series - I guess, I will do a co-integration analysis. There ...
2
votes
1answer
136 views
Ireland wholesale electricity prices are higher during the weekends
Some data from Ireland SEMO (weekday electricity prices) and quarterly prices from the European Commission imply that Irish weekend prices are greater than weekday prices.
The same datasets used ...
2
votes
1answer
113 views
How do oil prices rise when crude oil inventories fall?
I am new to economics, I am reading a post on CNBC which states
Weekly crude oil inventories unexpectedly fell, supporting further gains in oil prices.
1) Why does crude oil inventories unexpetedly ...
3
votes
1answer
51 views
Composition of EEX energy prices
I am working currently on EEX energy price data from Germany and so far I couldn't find out, if the prices already include taxes and the German Renewable Energy Act feed-in tarif (EEG-Umlage).
I ...
2
votes
2answers
934 views
In Indonesia, reducing fuel subsidy strongly impacts the price of everyday goods. Why?
In Indonesia, petrol/gasoline price is regulated by the government and historically it is heavily subsidized. I know, economists typically consider fuel subsidy to be a bad policy, for many reasons, ...
3
votes
1answer
124 views
Introductory or Primer text on Economics?
I've been meaning to learn more about economics, and am looking for an introductory text or a primer on the topic.
I've already taken a subject on this back in high school, but I guess what I'm ...
4
votes
1answer
141 views
If Americans drive more and consume more oil, why are cars less efficient?
According to this figure from the Center for Climate and Energy Solutions, US, Canada, or Australia car fuel efficiencies are considerably lower than those for Europe or Japan:
At the same time, ...
4
votes
3answers
108 views
What oil price will minimise new resource extraction?
A higher oil price would increase incentives to develop new oil resource extraction, but it also increases the competitiveness of sustainable energy sources.
Conversely, a low oil price might mean ...
12
votes
5answers
909 views
What is the reasoning behind the sharp fall of oil prices starting in mid 2014?
Things I have considered:
Poor economic conditions around the world could have caused an unpredicted decrease in demand. The resulting surplus has begun driving prices down.
This could be ...
3
votes
1answer
178 views
Oil as a function of GDP
In Mankiw, N. (2012). Principles of Macroeconomics (6th ed.)., on pg 456 Mankiw says "The amount of oil used to produce a unit of real GDP has declined about 40 percent since the OPEC shocks of the ...
5
votes
1answer
311 views
Usage of natural gas in 1970 (where was the demand elasticity?)
The following historical graph of US Marketable Natural Gas volume has me puzzled:
How was the gas used in 1970 (a peak production period), given that we would seem to be using a lot more gas now? ...
