Energy PolicyPub Date : 2025-07-18DOI: 10.1016/j.enpol.2025.114770
Yiang Guo , Derek E.H. Olmstead , Andrew H. Wilkins
{"title":"What drives consumers to switch retailers? Evidence from the Alberta electricity market","authors":"Yiang Guo , Derek E.H. Olmstead , Andrew H. Wilkins","doi":"10.1016/j.enpol.2025.114770","DOIUrl":"10.1016/j.enpol.2025.114770","url":null,"abstract":"<div><div>This study examines consumer switching behaviour in Alberta’s retail electricity market, focusing on the impact of rate volatility, income, education, and age on search rates and product premia. The analysis reveals significant consumer inertia, with many customers remaining on default rate even when competitive alternatives offer lower rates. Higher electricity rates were found to significantly increase search activity and switching rates. Contrary to expectations, consumers living in higher-income and higher-educated areas more often made less cost-effective choices, often opting for the more expensive default rate, called the Regulated Rate Option (RRO). Consumers living in lower-income areas, despite being presumptively more price-sensitive, also showed a preference for the RRO, indicating potential market misjudgment. The findings highlight the importance of consumer information to foster a more competitive and efficient market, as many consumers appear to make non-cost-minimizing or suboptimal switching decisions, particularly during periods of rapid rate increases.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114770"},"PeriodicalIF":9.3,"publicationDate":"2025-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144662356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-18DOI: 10.1016/j.enpol.2025.114785
Jinling Guo , Junlian Gao , Kejia Yan , Bo Zhang , He Liu
{"title":"Castles in the Sky: Revisiting the global methane pledge","authors":"Jinling Guo , Junlian Gao , Kejia Yan , Bo Zhang , He Liu","doi":"10.1016/j.enpol.2025.114785","DOIUrl":"10.1016/j.enpol.2025.114785","url":null,"abstract":"<div><div>The entry into force of the Global Methane Pledge (GMP) signifies a pivotal shift in climate governance, elevating methane (CH<sub>4</sub>) mitigation from a peripheral concern to a central global priority. While the GMP has significantly raised global ambition regarding CH<sub>4</sub> reduction, the growing number of participations has yet to close the gap between pledges and actual implementation. This discrepancy arises from interrelated challenges related to the strength of mitigation commitments, data accuracy, regulatory scope, and technological readiness. A review of CH<sub>4</sub> emissions inventories from 160 participants reveals that 77% lacked a 2020 baseline inventory, and the credibility of official data in several developed countries has also come under scrutiny. Most participants—including the European Union and the United States—have emphasized exploratory frameworks and policy rather than adopting concrete, quantitative reduction targets. Overall, CH<sub>4</sub> mitigation efforts remain in an early development phase. Their future effectiveness will hinge on progress in four key areas: stronger mitigation commitments, enhanced data transparency, more comprehensive regulatory structures, and the deployment of innovative technologies. These findings underscore the urgent need for both participants and non-participants to strengthen international cooperation and activate untapped mitigation potential. Elevating CH<sub>4</sub> reduction to a prominent position on the COP30 agenda and establishing a more binding framework for action will be crucial in the years ahead.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114785"},"PeriodicalIF":9.3,"publicationDate":"2025-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144655734","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-18DOI: 10.1016/j.enpol.2025.114766
Desiderio Romero-Jordán , Pablo del Río , Fernando Pinto
{"title":"Does energy productivity boost total factor productivity?","authors":"Desiderio Romero-Jordán , Pablo del Río , Fernando Pinto","doi":"10.1016/j.enpol.2025.114766","DOIUrl":"10.1016/j.enpol.2025.114766","url":null,"abstract":"<div><div>Decarbonising our economies and energy systems requires a more productive use of energy resources. Improving energy efficiency or, similarly, reducing energy intensity and increasing energy productivity are considered critical factors to achieve economic growth and reduce environmental impacts. In particular, energy productivity (EP), defined as the amount of economic output that is produced per unit of gross available energy, could have positive effects on green growth and competitiveness. However, the impact of EP on Total Factor Productivity (TFP), which is regarded as an important driver of changes in living standards, has not received much attention in the past. This paper fills this gap. Its aim is to analyse the impact of EP on TFP in 29 European countries between 2000 and 2022. The econometric analyses show that the effects are positive in both the short and long terms. Our findings lend credence to the Porter Hypothesis. They show that strict energy efficiency targets which enhance EP do not have a negative impact on economic performance in the long run. However, the less positive short-term effects compared to the long-term effects suggest that governments should consider mechanisms to cushion the immediate economic impacts of the transition towards more energy-efficient economic systems.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114766"},"PeriodicalIF":9.3,"publicationDate":"2025-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144655694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-18DOI: 10.1016/j.enpol.2025.114759
Estibalitz Ruiz Irusta, Ivan Pavić
{"title":"Will the European Union’s emission trading system drive industrial steam electrification?","authors":"Estibalitz Ruiz Irusta, Ivan Pavić","doi":"10.1016/j.enpol.2025.114759","DOIUrl":"10.1016/j.enpol.2025.114759","url":null,"abstract":"<div><div>Driven by the European Union’s climate-neutral ambitions, industries are being urged to electrify fossil fuel-based technologies. Historically, fossil fuels were the preferred choice due to their lower cost compared to electricity. However, as carbon allowance prices under the European Union’s Emission Trading System continue to rise, industries are experiencing a substantial increase in their energy costs. The European Union anticipates that if these prices increase sufficiently, the cost gap between fossil fuels and electricity will close, encouraging a shift toward full electrification. In this paper, based on the consumption profiles of two large plastic manufacturing companies, we demonstrate that projected carbon prices will be insufficient to achieve the European Union’s targeted 55 % of CO<sub>2</sub> reduction by 2030. Instead, we estimate a reduction of only 34 %. Moreover, we calculate that full electrification can be incentivized by 2050, but only if carbon allowance prices reach 237.2 €/t CO<sub>2</sub>, on average. Nevertheless, this shift would significantly increase the energy costs for industrial companies. Even when participating in balancing markets, results indicate a net energy cost increase of 6.7 %, compared to their current costs. These findings highlight the need for policy measures beyond carbon pricing to protect industrial competitiveness and achieve decarbonization goals.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114759"},"PeriodicalIF":9.3,"publicationDate":"2025-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144655733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-17DOI: 10.1016/j.enpol.2025.114769
Jing Liang , Yuqi Wang , Wei Li , Weihan Wang
{"title":"Quantitative evaluation of China’s energy storage policies: A ChatGPT-based PMC index modelling approach","authors":"Jing Liang , Yuqi Wang , Wei Li , Weihan Wang","doi":"10.1016/j.enpol.2025.114769","DOIUrl":"10.1016/j.enpol.2025.114769","url":null,"abstract":"<div><div>Efficient energy grid systems can improve operational efficiency and reduce carbon emissions by integrating diverse renewable energy generation sources. As a distinct asset class within the electric grid, energy storage necessitates well-defined regulatory and financial policies to support its development and large-scale deployment. This makes it essential to establish an effective and consistent policy evaluation framework to support the growth of the energy storage industry. In this study, we propose a ChatGPT-based Policy Model Consistency framework to evaluate 203 energy supply policies issued by China’s central and local governments during the “14th Five-Year Plan” period (2021–2024). The results demonstrate the effectiveness of AI-powered policy analysis in building quantitative and objective policy evaluation systems. In addition, the findings highlight the ability of the system to provide a comprehensive analysis and practical recommendations for the development of energy storage systems in China.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114769"},"PeriodicalIF":9.3,"publicationDate":"2025-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144655695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-16DOI: 10.1016/j.enpol.2025.114778
Rui Yin , Junxia Liu
{"title":"How does corruption hinder energy transition? A perspective from Sub-Saharan Africa","authors":"Rui Yin , Junxia Liu","doi":"10.1016/j.enpol.2025.114778","DOIUrl":"10.1016/j.enpol.2025.114778","url":null,"abstract":"<div><div>The imperative to shift from fossil-based systems of energy to renewable energy has never been more urgent. Corruption is one of the major stumbling blocks to this transition, especially in Sub-Saharan Africa, where governance institutions are weak and socio-economic challenges are enormous. Utilizing case studies from Transparency International's Climate and Corruption Case Atlas, this research examines critical corruption typologies and their hindrance on energy transition efforts. Building on the analysis of the current corruption landscape, this research further investigates the unique socio-economic and political characteristics of Sub-Saharan Africa that render the region's energy transition more vulnerable to corruption. In light of these challenges, this paper proposes policy measures involving strengthening governance and regulatory frameworks, enhancing institutional and financial capacity, raising public awareness and stakeholder engagement, and encouraging international cooperation and aid alignment.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114778"},"PeriodicalIF":9.3,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144655735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-16DOI: 10.1016/j.enpol.2025.114763
F. Ignacio Aguilar , Christina E. Hoicka , Ali Seifitokaldani
{"title":"Limited scientific evidence for decarbonization of energy end-uses and the challenges to learning and empowerment of green hydrogen niches - insights from Canada","authors":"F. Ignacio Aguilar , Christina E. Hoicka , Ali Seifitokaldani","doi":"10.1016/j.enpol.2025.114763","DOIUrl":"10.1016/j.enpol.2025.114763","url":null,"abstract":"<div><div>Supporting inappropriate uses for hydrogen can delay climate action and decarbonization efforts should limit hydrogen to difficult-to-electrify end-uses. The introduction of novel green hydrogen niches to markets requires learning about which end-uses are appropriate for hydrogen and the empowerment of these niches. This work identifies and collates scientific evidence of when to use hydrogen over electrification of end-uses. The hydrogen end-uses being empowered by legitimization through discourse and resource mobilization are assessed in investment advice, 11 government plans, and 47 policies in Canada. The findings confirm the inattention to when to electrify and when to use hydrogen, observed in the very limited scientific evidence of only two approaches to prioritization, the lack of harmonization between the approaches, and the lack of legitimization of this information. Although some hydrogen end-uses being empowered align with scientific evidence, the most appropriate set of hydrogen end-uses that could contribute to decarbonization are not being legitimized and empowered in Canada. More attention should be paid and resources allocated to developing and legitimizing robust and scientifically based evidence of when to electrify and when to use hydrogen for energy end-uses. This novel method is globally applicable to other emerging technologies and policy analysis.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114763"},"PeriodicalIF":9.3,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144633264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-16DOI: 10.1016/j.enpol.2025.114777
Minglai Li , Cong Li , Qiang Li
{"title":"From tradition to transition: The effect of clan culture on energy poverty","authors":"Minglai Li , Cong Li , Qiang Li","doi":"10.1016/j.enpol.2025.114777","DOIUrl":"10.1016/j.enpol.2025.114777","url":null,"abstract":"<div><div>A deeper understanding of the nexus between traditional clan culture and energy poverty holds significant implications for advancing energy transition and improving human well-being. This paper investigates the role of clan culture, a deeply embedded element of China's historical heritage, in shaping patterns of energy poverty. Utilizing a national representative sample, we uncover that clan culture has a significantly negative effect on energy poverty. Specifically, a 10 % increase in the geographical density of clan culture is associated with an average reduction of 0.29 % in the probability of households experiencing energy poverty. The finding also implies that clan cultural effects could potentially lift approximately 1.43 million households, representing over 4.29 million individuals, out of energy poverty. Moreover, the impact of clan culture is more pronounced among Han Chinese populations compared to ethnic minority groups; the effect of the Clean Heating Plan in Northern Regions also varies substantially across regions with differing intensities of clan culture. Our findings suggest that clan culture helps form social capital through mechanisms such as resilience and supplements to formal institutions. We also conduct a series of robustness checks and employ an instrument variable approach to further support our findings. Our evidence calls the attention of policymakers to consider the interplay between formal and informal institutions when designing energy poverty interventions.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114777"},"PeriodicalIF":9.3,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144633267","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-14DOI: 10.1016/j.enpol.2025.114776
Shu Mo , Xinghua Liu
{"title":"Strengthening the resilience of urban energy systems amid renewable energy transition: A new method based on double machine learning","authors":"Shu Mo , Xinghua Liu","doi":"10.1016/j.enpol.2025.114776","DOIUrl":"10.1016/j.enpol.2025.114776","url":null,"abstract":"<div><div>Renewable energy transition can fully leverage transformative potential and provide impetus for improving the resilience of urban energy systems. This study takes China's Plan on Clean Energy Accommodation as a quasi-natural experiment and employs a dual machine learning model to explore the impact of the renewable energy transition on the resilience of urban energy systems, as well as the underlying mechanisms. It also examines the regional coordination effects of this transition. The findings reveal that the renewable energy transition significantly strengthens the resilience of urban energy systems. A heterogeneity analysis further shows that the transition has a more pronounced positive influence on energy system resilience in economically developed regions, northern cities, and those with high carbon emissions. Mechanism analysis indicates that the renewable energy transition enhances resilience through four main channels: promoting low-carbon awareness, reducing climate risks, improving energy efficiency, and increasing marketization. Additionally, the transition diminishes traditional geographical advantages, helping to narrow disparities in energy system resilience at the national, regional, and provincial levels, thereby demonstrating notable regional coordination effects. This study offers important insights for a deeper comprehension of the value of the renewable energy transition and for exploring ways to enhance urban energy system resilience.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114776"},"PeriodicalIF":9.3,"publicationDate":"2025-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144623637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy PolicyPub Date : 2025-07-11DOI: 10.1016/j.enpol.2025.114771
José Alejandro Barrera Giraldo , David Galeano , Daniel Morales , Alfredo Trespalacios
{"title":"Economic and policy assessment on nuclear energy for Latin America’s energy transition","authors":"José Alejandro Barrera Giraldo , David Galeano , Daniel Morales , Alfredo Trespalacios","doi":"10.1016/j.enpol.2025.114771","DOIUrl":"10.1016/j.enpol.2025.114771","url":null,"abstract":"<div><div>Latin America is projected to face significant energy deficits in the long term due to the increasing demand for electricity and the challenges surrounding the development of new energy infrastructure. While renewable sources, such as solar and wind, have shown remarkable progress, their intermittent nature and storage limitations prevent them from fully meeting the region’s growing energy needs. This paper explores the potential of nuclear energy to complement renewable sources, focusing on six target countries: Peru, Ecuador, Bolivia, Chile, Colombia, and El Salvador. We examine the techno-economic and policy factors that influence the deployment of nuclear power in the region, including the adoption of SMRs, which may offer more flexible and cost-effective solutions compared to large-scale nuclear power plants. We obtain deterministic LCOE values ranging from 70.88 USD/MWh to 158.57 USD/MWh according to different scenarios. In the case of Colombia, the implementation of fiscal incentives for non-conventional energy sources significantly reduces the financial leverage required for project development. Our analysis demonstrates that these incentives reduce financial leverage requirements from 65 % to 30 %, significantly enhancing the feasibility of nuclear energy projects in the region. Monte Carlo simulations were conducted to generate probability density functions (PDFs) for the LCOE of each country. We highlight the scarcity of academic and policy studies on nuclear electricity generation in Latin America, in contrast to other regions. The findings suggest that nuclear energy can be pivotal in securing a reliable, low-carbon energy future for Latin America. However, the lack of region-specific data, especially on CAPEX and OPEX, poses significant barriers to its implementation. The paper concludes with policy recommendations for Latin American governments to facilitate the integration of nuclear energy into their energy strategies, ensuring that it complements the growth of renewables and supports the transition to a low-carbon economy.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":"206 ","pages":"Article 114771"},"PeriodicalIF":9.3,"publicationDate":"2025-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144596356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}