Utilities PolicyPub Date : 2024-09-21DOI: 10.1016/j.jup.2024.101837
Negin Entezari , José Alberto Fuinhas
{"title":"Measuring wholesale electricity price risk from climate change: Evidence from Portugal","authors":"Negin Entezari , José Alberto Fuinhas","doi":"10.1016/j.jup.2024.101837","DOIUrl":"10.1016/j.jup.2024.101837","url":null,"abstract":"<div><p>The increasing widespread utilization of renewable energy sources, especially those reliant on the weather, coupled with the effects of climate change, is making electricity markets more sensitive to weather conditions. Portugal relies heavily on hydropower for its domestic energy generation. With its robust VAR approach, this study aims to comprehend how water resource variations due to precipitation patterns or reservoir levels influence price dynamics in the wholesale electricity market. By investigating whether these price increases are associated with temperature variations and considering the impact of temperature on both electricity demand and the availability of water resources for power generation, we provide crucial insights into the vulnerability of the electricity system to hydrological uncertainties. These findings can help stakeholders, including policymakers and industry professionals, develop effective strategies to manage price fluctuations. Understanding these relationships is critical to informed decision-making regarding resource allocation, energy market regulations, and infrastructure planning to mitigate the impact of climate-induced changes on electricity prices.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101837"},"PeriodicalIF":3.8,"publicationDate":"2024-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001309/pdfft?md5=66b75cca7ddf4b8da17d22dc50094a84&pid=1-s2.0-S0957178724001309-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142270680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-19DOI: 10.1016/j.jup.2024.101835
Miaomiao Tao , Boqiang Lin , Stephen Poletti , Addison Pan
{"title":"Can financial literacy Ease energy poverty? Some Lessons at the household level in China","authors":"Miaomiao Tao , Boqiang Lin , Stephen Poletti , Addison Pan","doi":"10.1016/j.jup.2024.101835","DOIUrl":"10.1016/j.jup.2024.101835","url":null,"abstract":"<div><p>Energy poverty and financial literacy are two cross-cutting vital dimensions in sustainable global development. This study examines whether and how financial literacy reduces energy poverty at the household level in China. A two-way fixed regression model demonstrates the catalytic role of financial literacy in eradicating energy poverty. Furthermore, this study identifies potential mechanisms between financial literacy and energy poverty from a mediation and moderation perspective. Financial literacy indirectly and robustly mitigates energy poverty by heightening households' future expectations. However, higher financial risk weakens this facilitating effect on households’ future expectations, as increased financial risk destabilizes household finances.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101835"},"PeriodicalIF":3.8,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001280/pdfft?md5=5da2e22556c3b288f1d92b586fc71550&pid=1-s2.0-S0957178724001280-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142270798","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-19DOI: 10.1016/j.jup.2024.101836
Manuel Mocholi-Arce , Ramon Sala-Garrido , Alexandros Maziotis , Maria Molinos-Senante
{"title":"The evolution of benchmaking the carbon efficiency drinking water companies in England and Wales","authors":"Manuel Mocholi-Arce , Ramon Sala-Garrido , Alexandros Maziotis , Maria Molinos-Senante","doi":"10.1016/j.jup.2024.101836","DOIUrl":"10.1016/j.jup.2024.101836","url":null,"abstract":"<div><p>Water utilities face the challenge of transitioning to a low-carbon urban water cycle while reducing operational costs. This study evaluates the static and dynamic carbon efficiency of a sample of water companies from 2013 to 2018 operating in England and Wales. Each company was evaluated relative to itself and its peers using cross-efficiency Data Envelopment Analysis techniques. The results showed that the carbon performance of the water industry improved by 2.1% per year, mainly due to efficiency change. In contrast, the contribution of factors driving technical and scale change was almost negligible.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101836"},"PeriodicalIF":3.8,"publicationDate":"2024-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001292/pdfft?md5=bfbe2891db2261a36fc04e1d29b0deea&pid=1-s2.0-S0957178724001292-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142270681","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-17DOI: 10.1016/j.jup.2024.101821
Fernando J. Ribeiro , João A. Peças Lopes , Filipe J. Soares , André G. Madureira
{"title":"A novel TSO settlement scheme for the Frequency Containment Reserve Cooperation in Europe’s integrated electricity market","authors":"Fernando J. Ribeiro , João A. Peças Lopes , Filipe J. Soares , André G. Madureira","doi":"10.1016/j.jup.2024.101821","DOIUrl":"10.1016/j.jup.2024.101821","url":null,"abstract":"<div><p>Frequency Containment Reserve (FCR) Cooperation is a European effort to integrate several countries in an integrated international electricity market platform for FCR procurement. In this market, Balancing Service Providers (BSPs) are on the supply side and Transmission System Operators (TSOs) on the demand side. This paper proposes a novel settlement scheme for sharing costs among TSOs; it proposes no changes to existing market clearing rules or to the existing settlement of the BSPs’ revenues. It is shown that the current TSO settlement scheme is an inequitable mechanism that originates negative costs for some TSOs in specific conditions, which are extensively discussed. The proposed TSO settlement scheme overcomes these inequities. In the proposed scheme, TSOs begin paying the local BSPs for the cleared bids needed locally, and the remaining imports are calculated in a subsequent step. Doing so avoids using the so-called “import/export costs”, which are demonstrated to be the source of the inequities in the current scheme. It is shown that if the proposed pricing scheme had been adopted from July 2019 to December 2022, all TSOs would have been affected. Specifically, the most negatively impacted TSO would have its accumulated costs increased by 16% and the most positively impacted TSO would have its accumulated cost decreased by 32%. The inequities of the current mechanism amount to more than 50 M€ or 7.4% of the total accumulated costs. Although the proposed mechanism is tested here under the FCR Cooperation, it can be applied to other markets where the rules allow different local settlement prices.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101821"},"PeriodicalIF":3.8,"publicationDate":"2024-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142242919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic evaluation of willingness to pay for natural gas supply reliability in Korea","authors":"Jeongmin Shin , Solji Nam , Jaeho Jeong , Jungwoo Shin","doi":"10.1016/j.jup.2024.101833","DOIUrl":"10.1016/j.jup.2024.101833","url":null,"abstract":"<div><p>This study evaluates the economic value and supports infrastructure development of constructing a circular network to improve natural gas supply stability. This study applies a double-bounded dichotomous choice model and shows that households and commercial users are willing to pay an additional 2.97% and 1.19% of their monthly gas bill, respectively. This study also shows the impact of gas supply understanding and population density on willingness to pay (WTP) for both sectors. Scenario analysis is conducted to analyze the cost-benefit ratio for a hypothetical region, which may be useful in setting up new business plans.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101833"},"PeriodicalIF":3.8,"publicationDate":"2024-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142173104","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-12DOI: 10.1016/j.jup.2024.101823
Dafeng Xu
{"title":"Effect of environmental regulation on sustainable household waste management in Nigeria","authors":"Dafeng Xu","doi":"10.1016/j.jup.2024.101823","DOIUrl":"10.1016/j.jup.2024.101823","url":null,"abstract":"<div><p>Nigeria's 2009 environmental regulatory policy began to restrict illegal household trash disposal, introducing trash bins in many, but far from all, areas. This paper uses national household-level data to estimate the immediate effects of the national policy and geographically heterogeneous facility improvement. The largest increase in the share of households opting for sustainable disposal occurred in “emerging areas” that historically lacked trash bins but began to introduce them under the new policy. In areas without facility improvement but were otherwise comparable to emerging areas, the policy alone failed to enhance the share of households choosing the use of contained dumpsites.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101823"},"PeriodicalIF":3.8,"publicationDate":"2024-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142173103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-12DOI: 10.1016/j.jup.2024.101820
Isaiah Maket
{"title":"Rethinking energy poverty alleviation through financial inclusion: Do institutional quality and climate change risk matter?","authors":"Isaiah Maket","doi":"10.1016/j.jup.2024.101820","DOIUrl":"10.1016/j.jup.2024.101820","url":null,"abstract":"<div><p>The main aim of this paper is to determine the impact of financial inclusion on energy poverty alleviation. It also interrogates whether institutional quality and climate change risk significantly influence the financial inclusion-energy poverty alleviation link using balanced panel data from 34 Sub-Saharan African countries from 2004 to 2021. Evidence from Discroll-Kraay Fixed Effects and Two-Step Instrumental Variable Generalized Method of Moments (2SIV-GMM) depicts heterogeneous energy poverty-alleviating impact of financial inclusion, demonstrating that financial inclusion is more instrumental in lower-income than lower-middle-income countries. Also, the results indicate a significant positive moderating role of institutional quality and a detrimental effect of climate change risk on financial inclusion-energy poverty alleviation nexus. Nevertheless, Dynamic Panel Threshold Regression results reveal threshold effects of financial inclusion, institutional quality, and climate change risk on energy poverty alleviation. The paper professes that financial regulations in allocating green resources would aid in alleviating energy poverty in Sub-Saharan Africa.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101820"},"PeriodicalIF":3.8,"publicationDate":"2024-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142167651","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Improving asset management in capital-intensive industries: Case study of a Portuguese water utility","authors":"Mariana Casalta , Flávia Barbosa , Luciana Yamada , Lígia B. Ramos","doi":"10.1016/j.jup.2024.101822","DOIUrl":"10.1016/j.jup.2024.101822","url":null,"abstract":"<div><p>The efficient management of assets delivers value and is essential for achieving service objectives, managing risks, and reducing costs. This paper proposes decision-support methods to help capital-intensive industries manage their assets and optimise their life cycle. Optimisation approaches were developed to support long-term investment planning by maximising the value created and minimising the budget used. Also, the trade-off for both objectives was analysed. Using the proposed models will lead to efficient management of available capital and excellent service delivery. Thus, water companies will fulfil the regulator’s requirements and present well-founded decision-making. This study was applied to a Portuguese water utility.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101822"},"PeriodicalIF":3.8,"publicationDate":"2024-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001152/pdfft?md5=2dcedb2f051f10461a17d4b52c44afea&pid=1-s2.0-S0957178724001152-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142167650","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of extended decision times in planning and regulatory processes for energy infrastructure","authors":"Genaro Longoria , Muireann Lynch , Niall Farrell , John Curtis","doi":"10.1016/j.jup.2024.101824","DOIUrl":"10.1016/j.jup.2024.101824","url":null,"abstract":"<div><p>Effective planning and regulatory processes ensure orderly energy systems. Often, decisions are not made within mandated timeframes and discrete approval processes are infrequent. A given delay may be compounded where multiple approval processes exist in sequence. These factors can negatively affect system costs and, ultimately, consumer welfare. We show that delays have meaningful impacts on electricity prices, system emissions, infrastructure investment and system operating costs. Our numerical simulation of data from Ireland shows that wholesale electricity prices are up to 10% higher and CO<sub>2</sub> emissions up to 4% higher, attributable to delays associated with planning and regulatory approvals.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101824"},"PeriodicalIF":3.8,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001176/pdfft?md5=8907a056cec9e9de2035545f38ac1c3f&pid=1-s2.0-S0957178724001176-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Utilities PolicyPub Date : 2024-09-10DOI: 10.1016/j.jup.2024.101815
Laarni C. Escresa , Adrian Matthew G. Glova
{"title":"Politico-economic determinants of the performance of electric cooperatives in the Philippines","authors":"Laarni C. Escresa , Adrian Matthew G. Glova","doi":"10.1016/j.jup.2024.101815","DOIUrl":"10.1016/j.jup.2024.101815","url":null,"abstract":"<div><p>In rural areas in the Philippines, ensuring access to affordable, reliable, and sustainable electricity falls mainly to electric cooperatives (ECs). While this electrification model proved successful in the United States, developing countries with weak political competition and institutions may allow rent-seeking behavior in the sector. This paper examines the politico-economic determinants of EC performance in the Philippines and finds that lower political competition within an EC franchise area is associated with poor collection efficiency and larger employee size. The study points to the need for greater regulatory scrutiny among EC franchise areas with weak political competition. It also provides insights on facilitating progress towards attaining sustainable development goals and energy transition in developing countries with similar institutional endowments.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"91 ","pages":"Article 101815"},"PeriodicalIF":3.8,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0957178724001085/pdfft?md5=4b054c43231f1c14d9bb076e3f82e4f2&pid=1-s2.0-S0957178724001085-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142163345","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}