Affordable and Clean Energy

ifo DICE Report 1 / 2020 (Spring): Carbon Pricing

Submitted by Eugenia Leon on 2 July 2020

Since 2003, ifo DICE Report has offered a forum for the discussion
of institutional questions written by internationally renowned experts. The editorial team’s aim was to present findings on current topics in an accessible way. In 2019, we asked readers of all ifo publications how we can make our offer even more useful for their work. Many respondents said their focus was on relevance and topicality, no matter if the topic is presented from a macroeconomic or an institutional economics view. And they would like to have the

Dynamics of Connectedness in Clean Energy Stocks

Submitted by César Salazar on 30 July 2020
EfD Authors:

This paper examines the dynamics of connectedness among the realized volatility indices of 16 clean energy stocks belonging to the SPGCE and the implied volatility indices of two important stock markets—the S&P 500 and the STOXX50—and two commodities markets—the crude oil and gold markets. The empirical results show a unidirectional connectedness from the implied volatility indices to the clean energy stocks. Our analysis further reveals similar volatility connectedness behaviors among companies in the same energy production subsector.

Climate Change, Energy

The persistence of energy poverty: A dynamic probit analysis

Submitted by Eugenia Leon on 29 July 2020

This paper contributes to the growing literature on energy poverty in developing countries. We use a dynamic probit estimator on three rounds of panel data from urban Ethiopia to estimate a model of the probability of being energy poor and to investigate the persistence of energy poverty. We also study the impact of energy price in!ation,which Ethiopia experienced during 2007–2009, on energy use and energy poverty.We"nd strong evidence of state dependence in energy poverty. A household that is energy poor in one round is up to 16% more likely to be energy poor in the subsequent round.

Energy

The importance of incorporating intertemporal and spatial log market dynamics in projections of residue-based biomass supply for liquid biofuel production in western Oregon and Washington, USA

Submitted by Stephanie Scott on 21 July 2020
EfD Authors:

New methods of fiber pre-processing and cellulosic fermentation may allow production of isoparaffinic kerosene, a bio-based jet fuel, from abundant post-logging biomass residues in western Oregon and Washington, USA. Since production of these residues is characterized by complex spatial patterns that can shift markedly over time, and since residues may comprise roughly one-fifth of annual refinery operating costs, careful evaluation of residue supply (quantity/price) behavior is warranted.

Energy

Implementation and scale-up of a biomass pellet and improved cookstove enterprise in Rwanda

Submitted by Stephanie Scott on 29 June 2020

This paper reviews the experience of a for-profit firm in Rwanda promoting biomass pellets and a fan micro-gasification improved cookstove as a clean cooking alternative to charcoal. Consumers purchase locally produced biomass pellets and receive the improved cookstove on a lease basis. The cost of the pellets and stove(s) is lower than the cost of cooking with charcoal in the urban setting where our study takes place. Inyenyeri has been piloting its business model since 2012.

Energy, Health

Household Air Pollution (HAP), Microenvironment and Child Health: Strategies for Mitigating HAP Exposure in Urban Rwanda

Submitted by Stephanie Scott on 29 June 2020

Exposure to household air pollution (HAP) from cooking and heating with solid fuels is major risk factor for morbidity and mortality in sub-Saharan Africa. Children under five are particularly at risk for acute lower respiratory infection. We use baseline data from randomized controlled trial evaluating a household energy intervention in Gisenyi, Rwanda to investigate the role of the microenvironment as a determinant of children's HAP-related health symptoms. Our sample includes 529 households, with 694 children under five.

Energy, Health

Early Adoption of an Improved Household Energy System in Urban Rwanda

Submitted by Stephanie Scott on 29 June 2020

Cooking with solid fuels and inefficient cookstoves has adverse consequences for health, environment, and human well-being. Despite the promise of improved cookstoves to reduce these impacts, adoption rates are relatively low. Using a 2-wave sample of 144 households from the baseline and first midline of an ongoing 4-year randomized controlled trial in Rwanda, we analyze the drivers and associations of early adoption of a household energy intervention marketed by a private sector firm.

Energy

Supply Considerations for Scaling Up Clean Cooking Fuels for Household Energy in Low‐ and Middle‐Income Countries

Submitted by Stephanie Scott on 29 June 2020
EfD Authors:

Promoting access to clean household cooking energy is an important subject for policy making in low‐ and middle‐income countries, in light of urgent and global efforts to achieve universal energy access by 2030 (Sustainable Development Goal 7). In 2014, the World Health Organization issued “Guidelines for Indoor Air Quality: Household Fuel Combustion”, which recommended a shift to cleaner fuels rather than promotion of technologies that more efficiently combust solid fuels.

Energy

Are South African consumers arm-chair environmentalists? Implications for renewable energy

Submitted by Stephanie Scott on 28 June 2020
EfD Authors:

Discussions between policymakers about renewable energy have gained momentum in recent years, amid growing recognition of the need for more investment in green energy sources. The question is whether households in developing countries like South Africa will support green energy actions if it comes at an additional cost or whether they are simply arm-chair environmentalist. To assess this, we use the contingency valuation method (CVM) to identify the determinants of support for renewable energy.

Energy

Pricing electricity blackouts among South African households

Submitted by Stephanie Scott on 28 June 2020
EfD Authors:

South African households, like households in many other developing countries, are faced with regular power outages. This is a big problem, since the outages that the households experience are both frequent and long in duration. Efficient electricity infrastructure investment decisions are possible only if the welfare loss of electricity blackouts is determined. We estimate a measure for welfare analysis. We subject respondents to eight power outage scenarios. We use a random parameter panel Tobit model to account for both zero willingness to pay (WTP) and cross-sectional heterogeneity.

Energy