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In this new era of energy transition, access to reliable and correctly functioning electricity markets is a huge concern for all economies. The restructuring path taken by most electricity markets involves the movement towards green generation structures and the increasing integration of wind and solar photovoltaic energy sources. Furthermore, it involves the electrification of energy systems, which implies a substantial increase in electricity demand levels. It is also important to add that electricity use has been pivotal in achieving efficient productivity levels in many sectors and is thus crucial to boosting economic activity. Nevertheless, this shift in generation structures has raised several challenges in electricity markets, mainly because the electricity produced from wind and solar photovoltaics is intermittent. In turn, adopting green power sources has been claimed to increase electricity price volatility and thus increase pricing risks. Therefore, to ensure that the right market signals are being sent to investors, the behaviour of electricity prices should be carefully assessed. There are three main types of pricing mechanisms commonly used in electricity markets: zonal, uniform and nodal. This study provides a short literature survey on these three pricing mechanisms. Our analysis has revealed that the assessment of the behaviour of nodal electricity price volatility is rarely studied in the literature. This fact has motivated the exploration of this topic and the consideration of the New Zealand electricity market case. The New Zealand electricity market is an energy-only system with no interconnections with other electricity markets. Furthermore, it has plenty of electricity produced from hydropower, which has a high potential to reduce price volatility through its backup role. The nodal pricing mechanism is complex, and data on it are hard to process. This paper elucidates the main challenges in processing electricity big data. Three different procedures to make this data more useable are described in detail. The main conclusions of this paper highlight the need to access easy-to-manage data and identify certain variables that significantly affect nodal prices for data which are unavailable. [ABSTRACT FROM AUTHOR]

The design of energy policies, particularly those focused on supporting renewable energy sources, is crucial for facing the major challenges of combining economic growth and sustainable development. This paper focuses on forty-six countries across the world, in three datasets of Global, European, and OECD countries. The timespan under analysis runs from 1996 until 2017, which makes it possible to capture the effects of renewable energy policies in their introductory phase. The policy-related database has been in construction since 1971, the date of the first implemented policy to support renewables. This paper contributes to the literature by assessing the nature of the effects of energy policies on both the installed capacity and the electricity generated by wind power, solar photovoltaic, and a multiple of all non-hydro renewables. A further major innovation of this paper is that it assesses both the short- and long-run effects of adjustments dynamics in policies for implementing renewable energy. The characteristics of the datasets required the use of the Driscoll and Kraay estimator with fixed effects. The results reveal that public policies have dissimilar effects in the short-run and the long-run. It is known that policy-based instruments are essential to implement renewable energy in both the short- and long-run. On the whole, the majority of these instruments are directly linked with public budgets, a position which can lead to an excessive burden on economies. Conversely, market-based instruments have been shown to promote the deployment of renewable energy only in the long-run. The results show that market-based instruments are not capable of promoting the early diffusion of renewable technologies into the market, i.e., in the short-run. In fact, market-based instruments are only effective when renewable technologies are mature and well-integrated in the electricity market, i.e., in the long-run. Therefore, this suggests that an optimal public policy involves a mix of policy-based instruments to enable early market diffusion, and a mix of market-based instruments to maintain investment in renewable energies in the long-run. [ABSTRACT FROM AUTHOR]

Abstract The worldwide electricity mix has become diversified, mainly through the exploitation of endogenous and green resources. However, doubt has been cast on the much-vaunted advantages of renewables due to some of their characteristics, such as availability, security and affordability. In fact, growth in the installed capacity of renewable energy has increased electricity prices, which raises the question of how households have withstood the cost of energy transition. The main aim of this study is to empirically assess and discuss: (i) whether different types of household have suffered dissimilar effects from the promotion of renewables; (ii) the consequences of promoting renewables on household income; and (iii) if the promotion of renewables has reduced the risk of poverty and social exclusion. A panel data of European countries has been analysed using Kao's residual cointegration test, and an Autoregressive Distributed Lag approach, to assess the relationships. This paper proves that both income and risk of household poverty are directly linked with renewable energies, in both the short- and long-run. The energy transition to renewables has had negative consequences for households. Thus, the disadvantaged households should be helped to meet the increased cost arising from the energy transition. Highlights • The impact of deploying renewables on income and the risk of poverty for households. • The Kao test verifies the long-run relation between renewables and risk of poverty. • The ARDL technique takes into consideration both short- and long-run effects. • Solar PV deployment has increased the overall risk of poverty for households. • Policies are required to mitigate the negative effects of RES on society. [ABSTRACT FROM AUTHOR]

The transition towards a low-carbon transport sector (TS) plays a fundamental role on the decarbonisation of economies. The effects of both conventional (fossil fuels) and alternative (renewable fuels and electricity) energy consumption in the transport sector, economic growth, and carbon dioxide emissions were analysed by using a panel vector autoregressive of 21 high-income Organization for Economic Co-operation and Development countries from 1990 to 2014. The results support the feedback hypothesis between both conventional and alternative TS energy sources and economic growth. In other words, electricity use on TS has enlarged the economic growth, while consumption of renewable fuels is actually hampering it. Additionally, TS fossil fuels consumption is contributing to economic growth. With reference to the environmental impacts of TS energy use, this paper highlights the harmful effect of conventional energy sources on the environment. However, there is no evidence wherein TS alternative energy sources are directly linked with a reduction of carbon dioxide emissions. Accordingly, the promotion of alternative TS energy sources should deserve further attention. On the one hand, there is evidence that the use of renewable fuels is obstructing economic growth. On the other hand, the use of both TS electricity and renewable fuels is not reducing carbon dioxide emissions. [ABSTRACT FROM AUTHOR]

Statistics from the United States (US) Energy Information Administration and the US Census Bureau reveal that a growing number of households are threatened by energy poverty. Both argue that energy poverty is becoming more common than traditional poverty. Recently, dynamic pricing programmes have been made possible by the increasing use of smart meters and other devices which enable consumers to play a more active role in electricity systems. This study aims to determine if dynamic pricing programmes can reduce the energy burden on households and diminish the number suffering from energy poverty. Data from the Annual Electric Power Industry Report and the American Community Survey were merged and analysed by state and year to assess the impact of dynamic pricing on energy poverty for 51 US states from 2013 until 2021. The results show that time-of-use and critical-peak-pricing tariffs can reduce the number of households suffering from energy poverty. Conversely, CPP and RTP increase the number of households in energy poverty. These findings indicate that policymakers and retailers need to develop pricing programmes that will encourage consumers to modify their consumption habits and enhance the integration of intermittent renewable energy sources and reduce energy poverty. • This research extensively studies the economic and social impacts of dynamic pricing. • This is the first research analsying the impact of dynamic tariffs on energy poverty. • US states were evaluated from 2013 to 2021 using dynamic panel estimators. • Dynamic tariffs, except for the CPP, did not reduce energy poverty as expected. • ToU tariffs contribute to reducing the number of households in energy poverty. [ABSTRACT FROM AUTHOR]

To meet their climate targets, European countries have sought to move from fossil fuels to clean energy. Some of the major elements in this energy transition have involved cutting investment in fossil-fuel generation, decommissioning coal-fired power plants, and increasing investment in technological innovation in energy sources, mainly through Research, Development and Demonstration (RD&D). A large part of these, predominately public, RD&D budgets has been assigned to Renewable Energy Sources (RES), while the potential benefits during the transition of technological innovation in fossil-fuel technology have largely been disregarded. The current limitations of RES, such as their intermittency, dependency on weather conditions and lack of effective storage, mean that, in the absence of viable alternatives, fossil fuel energy sources will continue to play a crucial role in ensuring the supply of electricity for some time. Investing in innovation is clearly important for tackling climate change, but a proper understanding of the broader economic and social implications of this investment should consider the entire energy sector, and not be limited to RES. Thus, this study sets out to assess the impact on electricity prices of public RD&D investment in both RES and fossil fuels. To do this, a Feasible Generalised Least Squares model was applied to a panel of 10 European countries using annual data from 2008 to 2021. Our findings provide empirical evidence that public spending on RD&D for fossil-fuel technology reduced electricity prices for households by 0.0028% and for industry by 0.0059%, whereas public spending on RD&D for RES technology seemed to increase household electricity prices by 0.0049%. These findings may be explained by the relative maturity and competitiveness of the respective energy types, which crucially affect the ease with which new technologies are adopted and commercialised. [Display omitted] • Assessment of the influence on electricity prices of RD&D for RES and fossil fuels. • Annual data for 10 EU countries from 2008 to 2021 analysed using FGLS. • Increased public RD&D in RES increases electricity prices. • Increased public RD&D in fossil fuels reduces electricity prices. [ABSTRACT FROM AUTHOR]

This article researches the impact of financial openness on environmental degradation in the MERCOSUR countries over the time spanning from 1980 to 2014. The Panel Autoregressive Distributed Lag (PARDL), in the form of Unrestricted Error Correction Model (UECM), was computed with the purpose of decomposing the total effects of variables in their short- and long-run ones. The results of short-run impacts and elasticities of PARDL model showed that the financial openness increases the CO2 emissions both in the short- and in the long-run. Moreover, the results also support that economic growth, consumption of primary energy, and agricultural production are responsible for an increase of emissions in the MERCOSUR countries. Therefore, these empirical findings will help expand the literature that assesses the impact of financial development on the environment. The results also point out to the need of policymakers to change the way the energy mix is financed. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to review the literature focused on the energy/electricity-growth nexus, highlighting how the focus has shifted from aggregated energy/electricity consumption towards specific energy sources. Moreover, it aims to shed light on the relationships between different energy/electricity sources and economic growth. Empirically, the paper focuses on the analysis of interactions between electricity generation in Spain under both the Special Regime ( SR ) and the Ordinary Regime ( OR ), and their relationship with economic activity. Data for Spain is studied for a time span from January 2003 to January 2016. The Toda-Yamamoto causality test is carried out to check for causality relationships. Additionally, both short- and long-run effects are assessed by using the ARDL bounds test approach. Overall, the results reveal high internal consistency when comparing the ARDL results with the causality analysis. The substitution effect was detected between OR and SR. However, the negative effect of the SR on economic activity deserves special attention by energy policymakers. This paper argues that the main challenge of renewable sources for policymakers is their cost-effectiveness. [ABSTRACT FROM AUTHOR]

In the last two decades, there has been a rich debate about the environmental degradation that results from exposure to solid urban waste. Growing public concern with environmental issues has led to the implementation of various strategic plans for waste management in several developed countries, especially in the European Union. In this paper, the relationships were assessed between economic growth, renewable energy extraction and greenhouse gas (GHG) emissions in the waste sector. The Environmental Kuznets Curve hypothesis was analysed for the member states of the European Union, in the presence of electricity generation, landfill and GHG emissions for the period 1995 to 2012. The results revealed that there is no inverted-U-shaped relationship between income and GHG emissions in European Union countries. The renewable fuel extracted from waste contributes to a reduction in GHG, and although the electricity produced also increases emissions somewhat, they would be far greater if the waste-based generation of renewable energy did not take place. The waste sector needs to strengthen its political, economic, institutional and social communication instruments to meet its aims for mitigating the levels of pollutants generated by European economies. To achieve the objectives of the Horizon 2020 programme, currently in force in the countries of the European Union, it will be necessary to increase the share of renewable energy in the energy mix. [ABSTRACT FROM AUTHOR]

The impact of renewable energy policies in carbon dioxide emissions was analysed for a panel of ten Latin American countries, for the period from 1991 to 2012. Panel autoregressive distributed lag methodology was used to decompose the total effect of renewable energy policies on carbon dioxide emissions in its short- and long-run components. There is evidence for the presence of cross-sectional dependence, confirming that Latin American countries share spatial patterns. Heteroskedasticity, contemporaneous correlation, and first-order autocorrelation cross-sectional dependence are also present. To cope with these phenomena, the robust dynamic Driscoll-Kraay estimator, with fixed effects, was used. It was confirmed that the primary energy consumption per capita, in both the short- and long-run, contributes to an increase in carbon dioxide emissions, and also that renewable energy policies in the long-run, and renewable electricity generation per capita both in the short- and long-run, help to mitigate per capita carbon dioxide emissions. [ABSTRACT FROM AUTHOR]

This paper uses monthly data from Aug. 2004 to Feb. 2014 and employs the Autoregressive Distributed Lag bounds test approach to study the short and long-run relationship of renewable and non-renewable electricity with economic growth in Greece. Dummies reveal most of the major energy policy adaptations taking place in Greece to overcome the economic crisis and reach stipulated renewable energy targets. Results show that in the short-run, fossil sources play the baseload role in electricity production and there is a clear substitution effect between sources, while in the long-run, fossil sources contribute to the development of renewable energy sources as backup energy. [ABSTRACT FROM AUTHOR]

This paper uses monthly data for the time span 2006:M01 to 2014:M06, to study the relationship between electricity generation regimes, both ordinary and special, and economic activity in Portugal. An autoregressive distributed lag bounds test approach is pursued to analyse the short- and long-run dynamics between renewable/non-renewable electricity sources and industrial production. Results show that both ordinary thermal sources and hydro sources are driving forces behind electricity from the special regime. Economic activity is stimulating the special regime, but, conversely, the special regime hampers the growth of industrial production. It is demonstrated that a crucial role is being played by large-scale hydropower in accommodating the special regime in the electricity mix. This source is causing economic activity, while at the same time, backing up new renewable sources. [ABSTRACT FROM AUTHOR]

The interactions between electricity generation sources and industrial production in Greece were analysed from August 2004 to October 2013. Greece has been subject to a tough economic adjustment under external financial assistance guidelines. In the meantime, the country has remained committed to international agreements concerning the use of renewables. The variables interact with each other, and this endogeneity has been analysed using a VECM model. A short-run, causal relationship from conventional fossil sources to economic growth, was proved. However, there is no evidence of causal relationships from renewable electricity to economic growth, either in the short- or long-run. Only economic growth gives rise to renewable electricity, whether in the short- or long-run. A fresh insight on the current state of dynamics between electricity sources within an electricity generation system, is thus added to the literature. These findings will inform energy policymakers in designing policies both to encourage the incorporation of national technology into renewables and to reduce electricity consumption without hampering economic growth. [ABSTRACT FROM AUTHOR]

Abstract: In renewables, namely wind power, the evidence of discrepancy between the installed and the used capacity needs to be studied in depth. The wind idle capacity is analysed, through panel data techniques, for a set of 18 European countries for the time span 1998–2011. Notwithstanding the so-called common policy guidelines within the countries, contemporaneous effects among countries were not proven. Socio-economic factors should be considered in order to understand the phenomenon of wind idle capacity. Policy measures that stimulate additional wind capacity are also contributing towards increasing the phenomenon of idleness. This fact should be taken into consideration by policymakers, who must refocus their policies towards enhancing technological efficiencies. Both the substitution effect and the lobbying effect are found for conventional sources, which could be smoothing larger idle capacity inefficiencies. [Copyright &y& Elsevier]

Abstract: Qualitative and theoretical literature indicates public policies as a major driver in the development of renewables. This paper empirically tests this claim, within a context of several drivers of renewables, by focusing on a large panel of European countries. Given the presence of heteroskedasticity and contemporaneous correlation resulting from the uniformity of public policies supporting renewables, we use a Panel Corrected Standard Errors estimator. Results are consistent with the usual drivers indicated by the literature and they give empirical support to the notion that public policy measures contribute, as a whole or disaggregated, to wider use of renewables. Specifically, policies of incentives/subsidies (including feed-in tariffs) and policy processes prove to be significant drivers of improved RE use. We show that the usual panel data estimators, random effects and fixed effects, are inefficient and lead to the erroneous exclusion of these policies as renewables’ drivers. [Copyright &y& Elsevier]

This paper analyses the impact of several factors on the use of renewable energy sources in a set of European Union countries, by applying a quantile regression approach. We find that different factors are effective for different levels of renewable energy commitment and the magnitudes of some effects evolve in accordance with the level of renewable energy sources used. Consequently, some policies that do not take into account the different stages could carry different effects. The results suggest that the lobbying effect of the established industries hampers the development of renewable sources, and that this effect is greater for lower initial level of renewable energy use. The results reveal that environmental concerns have not yet achieved enough pressure to stimulate major developments on renewables. We include two new drivers, geographic area and European Union Directive 2001/77/EC. That Directive was effective in signaling the commitment to renewables, namely for countries with lower renewables use. [ABSTRACT FROM AUTHOR]

Abstract: This paper analyses the factors behind the deployment of renewable energy, focusing particularly on the effect of energy efficiency policies and measures. The impact of these factors is appraised within the context of several phases of the use of renewable sources. We therefore apply the quantile regression technique to a set of 21 European Countries in two time spans: from 1990 to 1998, and from 1999 to 2006. We control variables of policy, environment, socioeconomic characteristics, and electricity generation. For the second period, energy efficiency policies and measures concerning renewable sources effectively promote renewables, namely in the take-off phase. We shed light on the lobbying effect of traditional energy industries, showing that it depends both on the period under analysis, and on the kind of traditional energy source. [Copyright &y& Elsevier]

Abstract: We study the commitment to renewable energy sources, focusing on a set of 24 European countries, and applying panel dynamic estimators. Europe is a leading player in the fight against climate change, and the estimators we use reveal themselves to be appropriate in handling the persistency effect on renewables. The level of renewable energy use in the previous period has a positive and highly significant effect on the current level of use. Traditional energy sources restrain the impetus towards renewables. Social awareness of sustainability, climate change mitigation and CO2 reduction targets are not enough to motivate the switch from traditional to renewables energy sources. Income and prices of fossil-based fuels were not significant for the development of renewables in the period from 1990 to 2006, suggesting that it was not the market that encouraged renewables. [Copyright &y& Elsevier]

This study investigates the relationship between wholesale electricity price behaviour and the integration of new renewable energy sources in the electricity system in Portugal. The research analyses two different samples, namely: the significant deployment of wind power versus the abrupt increase in the installed capacity of solar photovoltaic. Daily data from 2011 until 2019 and, a SARMAX/EGARCH approach has been conducted to assess the merit-order effect. The main results suggest that electricity production from wind power is decreasing the price of electricity but increasing its volatility. In addition, there is evidence for the leverage effect in electricity price. • Daily data from 2011 to 2019 and an EGARCH approach has been applied. • Electricity production from wind power underlines the merit-order effect. • High persistence of volatility highlights its dependence on past volatility. • There is a leverage effect in the wholesale electricity price in Portugal. [ABSTRACT FROM AUTHOR]