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Sustainability-Guided Promotion of Renewable Electricity Generation
Abstract
In recent years, the threat of global climate change, high fuel import dependence, and rapidly rising electricity demand levels have intensified the quest for more sustainable energy systems. This in turn has increased the need for policy makers to promote electricity generation from renewable energy sources. Guaranteed prices coupled with a buy-back obligation for electricity fed into the grid is a popular renewables promotion instrument, especially in Europe. More recently, driven mainly by electricity market liberalisation efforts, quota targets for the share of renewables in combination with tradable ‘green’ certificates (TGC) have received considerable attention. TGC offer a greater theoretical potential for economic efficiency gains, due to price competition and the greater flexibility assigned to the obliged parties. While guaranteed prices and TGC schemes support the operation of renewable energy technology systems, bidding schemes for renewable energy generation capacity are used to raise economic efficiency on the plant construction side. All of these policy instruments suffer from the shortcoming that they do not explicitly account for the often widely varying environmental, social and economic impacts of the technologies concerned. In this paper, we propose a methodology for the design of renewable energy policy instruments that is based on integrated assessment. In particular, we argue that using participatory multicriteria evaluation as part of the design of renewable energy promotion policies would make it possible: (1) to differentiate the level of promotion in a systematic and transparent manner according to their socio-ecological economic impact, and (2) to explicitly account for the preferences of stakeholders. A further problem of existing TGC and bidding schemes is that diversity of supply could be severely diminished, if few low-cost technologies were allowed to dominate the renewable energy market. To ensure a certain diversity of technologies, our scheme suggests the use of different technology bands for technologies that are relatively homogeneous with respect to their maturity.
... Massive changes to the system structure raise questions related to investments, such as costs and their returns, as well as policy costs, mitigation costs, and abatement costs [54][55][56][57]. Other authors include fiscal indicators, government budgets, and trade balance [30,58]. Finally, due to the unstable nature of transition, some studies add risk indicators such as GDP volatility, investment volatility, consumption volatility, the likelihood of crises, volatility of total debt, economic risks to ratepayers, long-term economic viability, and energy security [52,[58][59][60]. ...
... Other authors include fiscal indicators, government budgets, and trade balance [30,58]. Finally, due to the unstable nature of transition, some studies add risk indicators such as GDP volatility, investment volatility, consumption volatility, the likelihood of crises, volatility of total debt, economic risks to ratepayers, long-term economic viability, and energy security [52,[58][59][60]. ...
... However, broader impacts on the environment should also be considered. Madlener and Stagl (2005) [58] further classified the environmental impacts on the resources needed for energy production and the potential environmental consequences of energy production, use, and conversion. Land use, water use, and resource depletion appear in multiple studies as indicators of resources for required energy production [30,52,[61][62][63][64][65][66]. ...
Indonesia’s final energy demand is projected to increase by 70% in the next decade, with electricity expected to account for 32%. The increasing electricity demand poses a potential threat to national emissions reduction targets since fossil fuels generated 86% of the electricity in 2018, associated to 50% of the national CO2 emissions. Indonesia plans to reduce its CO2 emissions by 29% by increasing the total electricity generated from renewables, using a set of market-based and regulatory policies. However, economic, social, and environmental issues may arise from the widespread adoption of renewable energy. This study explores the economic, social, and environmental effects of renewable energy policies in the electricity sector. Our work presents an advance over previous studies that attempted to understand the electricity sector energy transition from a system perspective by exploring the structural feedback between it and economic, energy, and environmental systems. This enables the assessment of different energy policies using more macro indicators, which further emphasize the novelty of our work. A combination of system dynamics modelling and a policy analysis framework was applied to explore these issues. Our study proposes a dynamic hypothesis that the price of energy increases over time, in the absence of substitution, becoming a limiting factor in the transition to renewables in the electricity sector. The fiscal budget was found to be a bottleneck for renewable energy adoption in the electricity sector in Indonesia. We found that a fossil fuel depletion premium could be a potential supporting policy to enable the smooth phasing-out of fossil fuels and support a sustainable energy transition.
... The structure, composition, and granularity of sustainability indicator systems vary significantly among the studies being analyzed. While Evans 2009), Burton & Hubacek (2007), Afgan et al (2000;2007), Begic & Afgan (2007) and GwoHshiung et al (1992) use relative few indicators in order to guarantee transparency and to facilitate the collection of data, sustainable indicator systems for the relative assessment of electricity generation technologies developed by PSI (2006), NEEDS (2008) Madlener & Stagl (2005), and Deutsch (2009) are made up of a number of indicators guided by the intention to ensure a more careful and prudent examination. Significant differences are found between the structure and composition of indicator systems. ...
... Significant differences are found between the structure and composition of indicator systems. Unlike PSI (2006) and NEEDS (2008), Evans et al (2009), Burton & Hubacek (2007), andMadlener & Stagl (2005) do not classify their indicators explicitly according to the main dimensions (economic, social and environmental) of sustainable development. In the work of Afgan et al (2000; 2007) and Begic & Afgan (2007) LCA-based resource requirements of generation technologies creates an separate dimension while in the frameworks developed by Gwo-Hshiung et al. (1992) and Deutsch (2009) engineering or technological attributes of power generation are classified to a sperate criterion. ...
... Indicators of environmental sustainability developed by the NEEDS project (2008) include the indicators of energy-and material requirements, acidification potentials, eutrophication potentials, ecotoxicity of specific electricity generation technologies and stress the importance of indicators associated with the environmental impacts of radioactivity. It is worth to mention that with the exception of the model developed by Madlener & Stagl (2005) - indicators of environmental sustainability of the indicator systems being analyzed are defined for the total lifecycle of technologies. ...
In the relevant literature, distributed energy generation (DG) technologies are usually seen as sustainable system innovations which can contribute to the achievement of the key goals of sustainable development in the technology system of power generation and consumption. Despite the intensive research and regulatory efforts, nor the sustainability advantages of distributed technologies over traditional, centralized plants, nor their ability to induce systemic changes in the existing technological regime leading to the appearance of a new power regime consistent with the key requirements of sustainable development have been justified. The aim of this paper is to analyze whether it is possible to define renewable-based power plants and distributed energy generation technologies as the most favorable, disruptive power generation technologies in terms of sustainability by examining twenty electricity and cogeneration technology groups in a proposed multi-criteria sustainability assessment framework and decision model elaborated by the author.
... In doing so, those parties have two options: to build eligible RES-E power plants and generate certificates themselves, or to purchase certificates from existing RES-E producers. Just like electricity from conventional power sources, electricity from RES-E is sold at official market prices [17]. Owing to the TGC framework's technology-neutral design, all renewable energy technologies pursuant to the renewable directive are eligible for the same level of subsidies [2,[17][18][19]. 1 The TGC framework is currently enforced in many countries including Australia [20], 29 states in the United States as of 2012 [21], several European countries (e.g., Sweden, the UK, Belgium) [22], and recently in India [23] (see Table 1 for an overview). ...
... Just like electricity from conventional power sources, electricity from RES-E is sold at official market prices [17]. Owing to the TGC framework's technology-neutral design, all renewable energy technologies pursuant to the renewable directive are eligible for the same level of subsidies [2,[17][18][19]. 1 The TGC framework is currently enforced in many countries including Australia [20], 29 states in the United States as of 2012 [21], several European countries (e.g., Sweden, the UK, Belgium) [22], and recently in India [23] (see Table 1 for an overview). ...
... TGC systems perform differently across diverse local markets [17]. These differences have inspired a stream of studies focusing on the relation between local preferences and TGC systems' performance. ...
... Diversity-this criterion is understood as diversity of installed power, calculated according to the Shannone-Wiener Index [235], diversity of energy production mix [248,266], diversity of technologies [158,180] or diversity of supply [70,135,173]. Depending on the indicator it can be measured in quantitative or qualitative units. ...
... Security-evaluates the security of the supply system, the reduction of energy dependence or fuel imports, reflecting mostly geopolitical factors that may affect the continuous availability of non-renewable energy carriers from their origin. Secure energy supplies are essential to maintaining economic activity and to providing reliable energy services to the society [47,48,67,82,86,157,158,173,180,197,208,235,245,247,258,266,267,270]. Depending on the indicator it can be measured in qualitative or quantitative units. ...
... Economic impact-refers to the capacity of the energy project or policy of promoting local/regional/national economic development [48,71,114,137,144,148,158,163,164,173,198,247], or the impact on the dynamics of the national industry and local income [97,235], or even the impact on GDP or GNP [6,237,248]. Depending on the indicators used, it can be measured in a qualitative scale or in quantitative units, respectively. ...
The energy sector has been a fertile ground for the application of operational research (OR) models and methods (Antunes and Martins, OR Models for Energy Policy, Planning and Management, Annals of Operational Research, vols. 120/121, 2003). Even though different concerns have been present in OR models to assess the merit of potential solutions for a broad range of problems arising in the energy sector, the use of multi-objective optimization (MOO) and multi-criteria analysis (MCA) approaches is more recent, dating back from mid-late 1970s. The need to consider explicitly multiple uses of water resource systems or environmental aspects in energy planning provided the main motivation for the use of MOO and MCA models and methods with a special evidence in scientific literature since the 1980s. The increasing need to account for sustainability issues, which is inherently a multi-criteria concept, in planning and operational decisions, the changes in the organization of energy markets, the conflicting views of several stakeholders, the prevalent uncertainty associated with energy models, have made MOO and MCA approaches indispensable to deal with complex and challenging problems in the energy sector. This paper aims at providing an overview of MOO and MCA models and methods in a vast range of energy problems, namely in the electricity sector, which updates and extends the one in Diakoulaki etal. (InJ.Figueira, S. Greco, M. Ehrgott (Eds.). Multiple Criteria Decision Analysis – State of the Art Surveys. International Series in Operations Research and Management Science, vol. 78, pp. 859–897, Springer, New York, 2005). Broadly, models and methods dealing with multi-objective mathematical programming and a priori explicitly known discrete alternatives are distinguished and some of the main types of problems are stated. The main conclusion is that MOO and MCA approaches are essential for a thorough analysis of energy problems at different decision levels, from strategic to operational, and with different timeframes.
Keywords
... Instruments such as feed-in-tariffs (Farrell et al., 2017;Tobin, 2014;Smith and Urpelainen, 2014;Solorio, 2013), subsidies (Blazquez et al., 2017;Kalkuhl et al., 2013;Grafton et al., 2012), profits tax scheme (Worthington, 1984), cap and trade system (Jarke and Perino, 2017), policy market agreements for specific sectors (von der Fehr and Ropenus, 2017; Kim et al., 2017;Cointe, 2017;Crago and Chernyakhovskiy, 2017;Nicolli and Vona, 2016), and mixed policies (Treki and Urban, 2015;Kalkuhl et al., 2015;Yi and Feiock, 2014;Dechezlepretre and Glachant, 2014;Twomey, 2012;Boute, 2011;Gross et al., 2010;Bode, 2006), are analyzed. For instance von der Fehr and Ropenus (2017) describe the effects of green certificates in market power in the energy sector, Madlener and Stagl (2005) compare the effects of green certificates with guaranteed prices and quota targets, and Kim et al. (2017) study the effects of several policies in the market for solar and wind energies. In Nicolli and Vona (2016) different regulation policy effects on markets are studied, concluding that reducing entry barriers is more effective in promoting innovation in renewable energies, especially when small and independent producers enter the market. ...
... Jarke and Perino (2017) Chakauya et al. (2006), Bode (2006), Madlener and Stagl (2005), Worthington (1984). Glenna and Thomas (2010), Ciocirlan (2009),Ciocirlan (2008, Tyner and Taheripour (2007), Anonymous (1981). ...
This paper reviews the literature in the intersection of renewable energies and politics adopting a multidisciplinary social sciences perspective. We begin by analyzing the recent literature dealing with renewable energies and politics, illustrating the analysis with bibliometric data. The search protocol revealed 853 contributions dated from 1998. Then we focus on the 186 contributions approached from a social sciences perspective, establishing a taxonomy to classify the contributions into the main issues covered. We identify contributions dealing with governance, with public acceptance, with markets and prices, and with political or policy determinants of renewable energies. In an empirical application we show that more democratic countries tend to invest more in renewable energies, taking into account other determinants (e.g. income, energy dependence, pollution emissions) of this investment.
... Several studies have applied multicriteria decision aid (MCDA) tools to planning and investment in energy alternatives. They include different types of MCDA methods, notably AHP [6,31], ASPID [1], MACBETH [4], ELECTRE ( [13,26,40]), PROMETHEE [9,16,25] and NAIADE [5,12]. We briefly describe these studies below as we have learned from them how to design our own approach. ...
... Madlener and Stagl [25] propose a comprehensive methodology for the assessment of renewable energy technologies using a structured set of criteria. The set is composed of a range of indicators, representing a biophysical dimension: Resource inputs needed for production (land resources, water, material requirements, indirect energy requirements), potential environmental consequences (impacts on natural biota, habitats and wildlife, environmental risks, visual intrusion, impact on microclimate, impact on soil productivity, impact of resettlements), potential consequences of energy conversion and use (air pollution, organic emissions, generation of solid wastes, water pollution, pressure on land and water resources and other hazards), and socio-economic impacts (employment, occupational hazards, noise, impact on local poverty, household income disparity, democratic control over markets, safety of power supply, impact on balance of trade, longterm economic viability, local net value added, economic risk to ratepayers, impact on flexibility of supply). ...
... Sellak et al. [113] confirm this with their research on articles published over 12 years. In the collaborative design of RE tools [114], the comprehensive evaluation of energy analysis [115], multi-criteria methods for analysis were used. Following the increase in the efficiency of the MCA method, Tsoutsos et al. [116] used this methodology in an article with the aim of sustainable energy planning. ...
The current research aims to measure the different dimensions of renewable energy policy implementation and compare these dimensions with each other, focusing on Iran's agricultural sector. This analysis makes it possible to identify the strengths and weaknesses in implementing existing policies. The five dimensions include "organizational and institutional", "incentives", "investment", "infrastructure", and "human resources development". The statistical population of this research comprised energy policy experts, whose number was 85. The sampling method was random, and 70 persons participated in answering the questionnaire using the Karjesi and Morgan table. A questionnaire was used to collect data. The reliability of the questionnaire was calculated using Cronbach's alpha (0.916). Face validity, content validity ratio (CVR), and content validity index (CVI) were applied to determine validity. In the calculation of CVR, values ≥0.33 were considered reasonable and appropriate to confirm each item. All CVI values obtained were higher than 0.79. Multi-criteria analysis was used to analyze the data. The results indicated that organizational and institutional policies were at the highest level of unsustainability. The dimension of investment policies showed less unsustainability than other dimensions. The other three dimensions also showed significant deficiencies. It seems that policy development to eliminate the diversity and interference of organizations, fuel subsidies revision, market policy development, attracting capital, and participation of stakeholders is necessary to reduce unsustainability in this field. The development of the resources of expert forces and attention to educational policies should also be considered.
... The method was also applied by (Topcu & Ulengin, 2004) for the identification of the most favourable alternative for electric power in the region of Turkey, and wind energy was determined as the solution. PROMETHEE was the basis of an MCDM approach proposed by (Madlener & Stagl, 2005) for the creation and design of instruments for the policies of renewable energy. It was observed that a reliable and efficient analysis of the lifecycle of renewable energy resources was provided by the proposed framework. ...
Compared to traditional energy, renewable energy solves the problems of global warming and the previous decade has been epochal for the renewable energy sector because of commendable developments in the field. The implementation of any renewable energy project is a massive investment from various components, e.g. labour, permits from both central and local authorities, so there may be a cardinal need for a decision-making paradigm in order to understand and determine the type of renewable energy that fits and provides the best outcomes for a certain region where each considered criterion has disparate priorities. In this scenario, MCDM (Multi-Criteria Decision-Making), which takes the uncertainty and reliance of 'gut-feeling' by decision-makers and replaces these with metric calculation architecture to simplify the decision-making process, can be proven as an asset. In the proposed work, a comparative analysis of existing techniques currently applied in the renewable energy sector is performed based on three criteria, namely usability in the industry, clarity in architecture, and results of empirical studies produced for a better understanding of the MCDM application in the field. Upon completion, the novel architecture will be proposed in the same manner.
... Authors use the method ELECTRE III to select among seven energy strategies for the island of Crete (Greece) [26]; or to conduct an energy resources selection in France [27]. Researchers use another MCDM method, PROMETHEE II, to perform a decisionmaking process about four geothermal energy development scenarios for Chios island in Greece [28]; or to select from among fourteen renewable energy technologies in a German case study [29]. These and other MCDM methods demand quantitative, certain and complete information. ...
Eighty per cent of the people without access to electricity live in rural areas. Due to high investment costs in the grid, the solution to providing electricity to these people will mainly rely on the installation of islanded hybrid microgrids. Designers need to consider a variety of factors for the optimal design of hybrid microgrids. However, many of these criteria are qualitative or uncertain. This paper provides a novel methodology to assess the influence of such criteria in the design of a Hybrid Microgrid of Renewable Energy Sources (HRES). The method combines context analysis, literature review and the Analytic Network Process (ANP) through panels of experts and surveys. The methodology ranked the criteria and helped to design a HRES in an isolated Honduran rural community in the Mesoamerican Dry Corridor. The study presents a review and classification of the main criteria and energy technologies considered for the design of HRESs in rural communities. The most influential factors turned out to be the institutional support, the possible expansion of the grid to the community and the availability of local energy resources. Regarding energy technologies, photovoltaic and wind power ranked as the preferred followed by a biomass gasifier as backup.
... Local renewable energy communities are at the grassroots of the movement to change the current energy-security system. For instance, how can legal technical barriers to energy technology [94][95][96] be reduced or eliminated for smart grids to take off in different jurisdictions? 23 The concept of Energiewende describes Germany's efforts to move away from fossil fuels and nuclear power by promoting renewable energy instead, whilst remaining a major industrial power. ...
This paper aims at developing effective trade law and policy instruments for sustainable energy and environmental protection with a view to advance current legislation. In the past, trade law has been a very powerful instrument for change in other fields of science. My hypothesis is that trade law can be a tool to help mitigate climate change and enhance sustainable energy. And it is well known that, thanks to trade, countries grow economically. Hence, the triple benefit of trade, which can have a positive economic, environmental and social impact.
This paper challenges the view that trade's only impact on the environment is negative. On the contrary, it takes the unconventional view that the trading system goes beyond benefiting the economy and society in that it can also contribute to environmental protection, with a specific focus on decarbonization, which is one of the main challenges humanity faces today. In this sense, my research proposes a paradigm shift in how we approach trade and develops a new theory based on the triple benefit of trade. This paper incorporates the new trend of bottom-up, rather than top-down, solutions to today's global challenges. My analysis of trade's potential for environmental protection will:
Shift the scientific paradigm that trade's only impact on the environment is negative by proposing the novel idea of using mega-regional trade agreements (RTAs) to mitigate climate change and enhance sustainable energy;
Explain that a bottom-up approach to governance can give us many answers to scientific issues by bringing forward the novel idea of how greater participation of citizens can be very promising in helping achieve the Sustainable Development Goals (SDGs).
Such an approach will show the potential of the trading system for moving forward many of the SDGs and is likely to create new opportunities and open new windows for further research.
... The most suitable solution is to combine renewable sources and nuclear power. Madlener and Stagl (2005) proposed a methodology for designing a renewable energy policy integrating environmental, social and economic factors, leading to more sustainable development. The authors used a participatory multi-criteria evaluation process to account for stakeholder preferences, and accommodate different mature technologies to enable the use of diverse energy sources. ...
In recent years, decision makers, policy analysts, and other actors, have become increasingly aware of sustainability, and begun to combine economic, social and environmental criteria in their efforts to maintain competitiveness, long-term growth and development. In multiple stakeholder settings, the presence of diverse objectives and conflicting criteria often leads to a complex multi-criteria decision problem. The multi-criteria decision analysis (MCDA) offers an integrated framework to model and study sustainability criteria and related inter-criteria relationships. In this paper, we review some of the most significant literature on environmental sustainability, and categorise it to show how and why MCDA models are widely used and becoming increasingly popular. Our systematic analysis suggests that, there has been significant growth in environmental applications of MCDA in diverse areas, ranging from energy management and policy to land use, recycling management and sustainable tourism. Among the various MCDA methods and techniques, analytical hierarchy process, TOPSIS, and goal programming are the most frequently used approaches. Many authors use a combination of different MCDA techniques to balance various factors important to achieve sustainability related goals. We expect sustainability related criteria to be an essential consideration in most future multi-criteria models.
... shoRt (2002) and waRRen et al. (2005) conclude that negative attitudes caused by the situation of wind-power plants in a given locality are often a product of ignorance, disinformation, prejudice, but also fashion. MadleneR & stagl (2005) as well as polatidis & haRalaMbopoulos (2007) stress that social participation covering all stages of the investment process plays a paramount role in mitigating radical emotions, as most fears related to the location of RES facilities, including those using wind energy, are generated at planning stage and decrease as the investment reaches its end (bRaunholtz 2003). ...
... According to the existing literature, the main advantages of TGC are that they are costefficient, ensure a stable development towards deployment objectives and drive innovation and cost-reduction through competition in both electricity and certificate markets (Morthorst, 2000 ;Menanteau et al., 2003 ;Urge-Vorsatz et al., 2004 ;Madlener and Stagl, 2005 ;Ringel, 2006 ;Del Rio and Gual, 2007 ;Verhaegen et al., 2009). TGC schemes have been applied 8 In the U.S. and Japan called renewable portfolio standards (RPS). ...
L’Europe et, en particulier, la France ont engagé une politique de transition énergétique, consistant à diminuer de 20 % les émissions de gaz à effet de serre, réduire de 20 % la consommation d'énergie et à atteindre 20 % d'énergies renouvelables dans le bouquet énergétique d'ici à 2020. Afin d’atteindre ces objectifs, plusieurs pistes doivent être déployées afin de promouvoir les énergies renouvelables qui sont de nature intermittente. Dans le cadre de ce projet de thèse on propose trois pistes pour contribuer au développement de ces énergies : la première consiste à déterminer la combinaison efficace des sources intermittentes et de sources fiables telle que les combustibles, ainsi que le montant optimal à investir dans les technologies renouvelables intermittentes sachant leur productivité imprévisible et variable. La deuxième piste de recherche consiste à déterminer, à l’aide d’un modèle dynamique, dans quelles circonstances on stocke de l’électricité et dans quelles circonstances on la délivre. Dans ce cadre, on essayera de déterminer un seuil optimal de stockage. La troisième piste consiste à déterminer comment on organise le secteur de l’effacement électrique. on appliquera le même principe que pour les parties précédentes : on a le modèle de base qui est l’intermittence modélisée par la variable aléatoire à laquelle on rajoutera l’effacement électrique. Dans le cadre de la thèse on espère publier trois articles complémentaires, un article sur chaque piste. Le lien entre ces trois pistes sera l’analyse et à la modélisation des différents instruments politiques, qui sont en ce moment en discussion au niveau français. L’objectif de cette analyse sera de faire un classement en fonction de leur capacité à atteindre un état optimal (ou à s’en approcher) sur chaque piste.
... The literature features mostly building/residential energy efficiency studies due to a relatively high potential for energy savings from reduced inefficiency (Boza-Kiss et al., 2013;Bye et al., 2018;Filippini et al., 2014;Kern et al., 2017;Madlener and Stagl, 2005;Shen et al., 2016). For instance, Australia, Japan, and China have more mandatory instruments, while the EU has adjusted a large number of both economic instruments and mandatory instruments in order to promote energy efficiency in buildings. ...
In recent years, the Chilean energy sector has gone through a significant transformation. Chile ratified the Paris Agreement in 2017 and committed to develop policies to face climate change and to transition to a more sustainable energy system. Promoting renewable energy and energy efficiency became an essential strategy for Chile to reduce emissions and reach its energy and environmental goals, which are addressed in various governmental studies. Further, Chile became successful in promoting renewable electricity production without feed-in tariffs. The current national goal is for at least 70% of the electricity in Chile to be generated from renewable energy sources by 2050. Additionally, energy efficiency is to be implemented in several sectors. This paper provides a broad overview of the energy sector and review of the Chilean energy policy development and environmental targets with emphasis on recent years. Finally, it also proposes an assessment about existing and required energy policy instruments for Chilean energy sectors by considering the promotion of renewable energy and energy efficiency and analyses the associated potential challenges. This work can provide insights to decision makers to develop long-term sustainable energy plans for Chile to reach its energy and environmental goals.
... For discussions, how different designs of RES-E support schemes affect cost-effectiveness, seeMadlener and Stagl (2005) andFinon and Perez (2007). ...
Subsidies to electricity generation from renewable energy sources (RES-E) implemented next to an emissions trading scheme (ETS) are frequently criticised for producing no additional benefit in terms of mitigating climate change and increasing the costs of emissions abatement. We re-assess the performance of this policy mix in a setting in which electricity generation produces multiple externalities (beyond climate change) and in which these externalities cannot be addressed by first-best policies. Using an analytical partial equilibrium model, we show that the optimal composition of the policy mix depends on the market interactions between the multiple externalities. We complement this analysis by a quantitative policy assessment, combining a top-down, global macro-economic model and a bottom-up, global electricity sector model. The quantitative analysis suggests that RES-E subsidies may be effective in partly reducing externalities from fossil fuel combustion (by crowding out gas- and oil-fired generation) and in mitigating radiation hazards (by crowding out nuclear generation). However, RES-E subsidies are not necessarily suited to address externalities related to the extraction and transportation of fossil fuels or risks of sudden supply interruptions for imported fuels. With respect to these latter externalities, tightening the ETS cap may be a more effective, but politically less feasible approach.
... R. Warren et al. (2005) conclude that negative attitudes caused by the situation of wind power plants in a given locality are often a product of ignorance, disinformation, prejudice, but also fashion. R. Madlener and S. Stagl (2005) as well as H. Polatidis and D. A. Haralambopoulos (2007) stress that social participation covering all stages of the investment process plays a paramount role in mitigating radical emotions, as most fears related to the location of RES facilities, including those using wind energy, are generated at planning stage and decrease as the investment reaches its end (BRAUNHOLTZ 2003). ...
This study aims to analyse the perception of cultural landscape by local communities, with particular emphasis on representatives of Generation Y in the context of the development of wind energy identified through the location of wind power plants. We have chosen to study the commune of Dąbrowa Chełmińska – LAU 2 (Kujawsko-Pomorskie Voivodeship, NUTS 2), a suburban area housing one of the oldest wind power plants in Poland as well as modern installations embedded in the suburban cultural landscape. We achieved the aim of this paper, by conducting a bipartite study using questionnaire interviews and Wejchert’s impression curve method.
The analyses we have performed indicate that matters related to cultural landscape engage every resident of the commune, yet primarily the younger generation: Generation Y. This is a social group interested in processes which are currently underway, especially those regarding innovation and ecological actions. The study that we have carried out shows that the perception of cultural landscape comprising wind power plants by the local community, including Generation Y, is primarily ambivalent. We are dealing with diverse, sometimes even contrasting opinions, both among young people and the generation of their parents and grandparents. Generation Y gives a more negative assessment of the presence of wind turbines in cultural landscape than the generation of parents and grandparents. It may seem surprising that in the view of the respondents wind power plants do not dominate the landscape, although representatives of Generation Y stated that they should be removed as elements disharmonising the landscape.
Key words: cultural landscape, landscape perception, wind energy, Generation Y
... It is also suggested that direct engagement of researchers in knowledge transfer could be particularly useful (Clark et al., 2016;Toderi et al., 2007). Direct interaction between researchers and farmers could prove additionally beneficial, as research has shown that direct access of farmers to experts' points of view is highly likely to cause a shift in farmers' perceptions and increase their acceptance of suggested agri-environmental measures (Madlener and Stagl, 2005). This could be achieved through the use of interactive participatory tools that will increase farmers' awareness of experts' views and allow them to compare them with their own. ...
Phosphorus (P) transfer from land to water is a source of diffuse pollution that contributes to the decline in
ecological status of river bodies in the European Union. The Water Framework Directive (2000/60/EC) provides
for the protection of water bodies that represent pristine or near-pristine condition, classified as high ecological
status through the adoption of an agri-environmental decision making process that promotes stakeholder participation.
However, successful implementation of agri-environmental policies can prove challenging when faced
with uncertainties and diverging opinions due to the variety of actors involved. This study adopted a participatory
approach including stakeholders with conflicting interests in the selection of P transfer mitigation policies.
Fifteen P transfer mitigation options were shortlisted based on agronomic and environmental data from a
case-study agricultural catchment and presented to a group of experts and farmers. Results showed significant
disparities between perceived effectiveness by farmers and experts groups, with experts prioritizing problems
related to connectivity issues, while farmers to soil compaction and erosion. In addition, measured agronomic
and environmental variables were used to model effectiveness from a decision support tool (FARMSCOPER) and
compared with stakeholder groups’ perceived effectiveness. This approach combined the scientific research with
the empirical knowledge of farmers and the modelling of quantified field and farm data. This study showed that
stakeholders are diverse, and perceive effectiveness based on group-specific operational and social factors.
Experts identified effectiveness at catchment scale, whilst farmers identified field scale effectiveness. For decision
support tools and simulation models to be beneficial for policy makers, they need to be calibrated to local
conditions and farm typologies to select the right measure at farm scale. The study recommends improved
knowledge transfer between interested actors and the need for integration of conflicting opinions in policy
design. A bottom-up approach to decision making is suggested, to assist in the decentralization of the procedures
towards more effectively implemented P transfer mitigation policies.
... It is also suggested that direct engagement of researchers in knowledge transfer could be particularly useful (Clark et al., 2016;Toderi et al., 2007). Direct interaction between researchers and farmers could prove additionally beneficial, as research has shown that direct access of farmers to experts' points of view is highly likely to cause a shift in farmers' perceptions and increase their acceptance of suggested agri-environmental measures (Madlener and Stagl, 2005). This could be achieved through the use of interactive participatory tools that will increase farmers' awareness of experts' views and allow them to compare them with their own. ...
P run-off from agricultural sources into rivers has a great environmental significance as it contributes to reduction of water quality. The EU Nitrates and Water framework directives mandate that EU rivers maintain a High or Good Status, meaning that P transfer losses have to be kept to a minimum. This highlights the need for effective policies towards the reduction of P transfer from agricultural land. Up to date most related regional policies focus on the adoption of measures to minimize P inputs. However, depending on specific location characteristics certain options for control of P run-off maybe more efficient than others. This study focused on phosphorus losses from agriculture, in a selected representative river catchments in the Republic of Ireland. The main aim of this research is to evaluate the effectiveness of a range of P-run off mitigation measures, which address multiple management practices promoting P transfer. Information on farm nutrient management was collected in the River Black high status river catchment in the west of Ireland. The farm surveys identified a range of management practices that promote P transfer and list of mitigation options that could potentially reduce the impact of those practices was developed. The effectiveness of measures was evaluated by field experts, farmers and using a P loss estimator (FARMSCOPER software). Results indicated differences in perceived effectiveness across stakeholder groups. The need for knowledge transfer and support is highlighted, in order to reach consensus and be able to design targeted P transfer mitigation policies.
... It shows how "good" the alternative is; the alternative with the higher leaving flow is superior. The "entering flow" Φ − (X) indicates preference of all other actions compared to X [24]. ...
The decision-making process regarding the choice of alternative energy technologies is multidimensional, made up of a number of aspects at different levels, economic, technical, environmental and social. This paper uses a multicriteria decision making model, PROMETHEE II, to determine the best fuel mix for electricity generation in an isolated Greek island, Lesvos. Having analyzed the energy profile of the island, a set of 7 energy policy scenarios are determined and assessed against economic, technical, environmental and social criteria. The energy policy scenarios include the use of conventional fuels, wind energy and natural gas, in its liquid form, liquefied natural gas (LNG). Weighting of criteria is carried out according to three different perspectives, each one focusing on sustainability, economic and environmental/social benefits. Two sensitivity analyses are performed taking into account the fluctuations of the electricity demand and the fluctuations of the fuel prices.
... The plan of the European Commission of the 1990s to issue an EU Directive on the promotion of electricity from renewables (CEC, 1998(CEC, , 1999a, which eventually led to the issuance of Directive 2001/77/EC (CEC, 2001), has triggered an intensive political and intellectual debate over the pros and cons of guaranteed feed-in tariff (FIT) versus tradable green certificate (TGC) schemes (e.g. Berry, 2002;Lauber, 2004;Palmer and Burtraw, 2005;Madlener and Stagl, 2005;Kildegaard, 2008). 1 Recently, a new and more comprehensive EU Directive for renewable energy promotion has been published (CEC, 2009a), in which no clear preference for one or another instrument is indicated. According to an accompanying Commission report (CEC, 2009b), however, and given the track record of the two instruments so far, the preference of the Commission seems to have shifted away from establishing a uniform European TGC scheme in favor of creating an investor-friendly climate and optimizing existing national systems. 2 This preference shift is confirmed in CEC (2012) with its focus on integration of renewables in national energy markets and ensuring the sustainability of renewables. ...
In a perfectly competitive market with a possibility of technological innovation we contrast guaranteed feed-in tariffs for electricity from renewables and tradable green certificates from a dynamic efficiency and social welfare point of view. Specifically, we model decisions about the technological innovation with convex costs within the framework of a game-theoretic model, and discuss implications for optimal policy design under different assumptions regarding regulatory pre-commitment. We find that for the case of technological innovation with convex costs subsidy policies are preferable over quota-based policies. Further, in terms of dynamic efficiency, no pre-commitment policies are shown to be at least as good as the pre-commitment ones. Thus, a government with a preference for innovation being performed if the achievable cost reduction is high should be in favor of the no pre-commitment regime.
... Since Brans et al. [22] presented the PROMETHEE methods, these methods are being used extensively in a wide area of applications including energy planning area. Georgopoulou et al. [23] work on development of decision support system for group decision making for renewable energy exploitation, Topcu and Ulengin [24] work to evaluate the electricity generation alternatives of Turkey, Madlenerand Stagl [25] work to propose a methodology for the design of renewable energy policy are among the several reported works on the use of PROMETHEE for energy planning related activities. ...
Despite the proven favourable techno-economic feasibilities along with the organised promotional measures, solar hot water systems are not diffused to the extent they should be, even in the domestic front of urban India where the potential for such dissemination is high. The reasons for such a low dissemination of domestic solar hot water systems (DSHWS) could be due to multi-criteria covering various dimensions of viability of domestic water heating options. This paper presents the work taken up to study the viability of DSHWS vis-à-vis other competing water heating options, on multi-criteria covering technical, economic, commercial, social and behavioural dimension in the urban India context, with a special reference to Bangalore. The strengths and weaknesses, significant dimensions and criteria for better dissemination of DSHWS vis-à-vis other competing water heating options, as obtained from the analysis using two multi criteria evaluation techniques viz. PROMETHEE and AHP are presented.
... Many have compared and contrasted FIT and RPS with other RES-E support schemes, including investment tax credits, production subsidies, clean energy standards, net metering, carbon emissions taxes, carbon cap-and-trade, bidding auctions for long-term purchase contracts, and others (e.g.,Madlener and Stagl, 2005;Palmer and Burtraw, 2005;Huber et al. 2007;Finon and Perez 2007;Mulder 2008;Timilsina et al. 2012;Fell and Linn 2013;Johnson 2014). Some researchers have also begun to study the implications of overlapping RES-E support policies (e.g.Cory et al. 2009;Fischer and Preonas 2010;Böhringer and Rosendahl 2010). ...
... Additionally, differences between the values of criteria are significant and consistent (Keyser & Peeters 1996). PROMETHEE has been applied in a number of fields such as environment management (Beynon & Wells, 2008), hydrology and water management (Haykowicz & Collins, 2007), business and financial management (Hababou & Martel,1998), chemistry (Lim, Ayoko &Morawska, 2005), logistic and transportation (Marinoni, 2005), manufacturing and assembly (Anand & Kodali, 2008), energy management (Madlener & Stagl, 2005), social (Raveh, 2000), design (Coelho & Bouillard, 2005), agriculture (Kokot & Phuong, 1999), education (Colson, 2000), sports (Olson, 2001) and government (Albadvi, 2004). ...
It is important to make investment in capital markets for smaller investors by reducing their risks. For this purpose, collective investment undertakings consisted of mutual funds and investment trusts are established. Investment trusts as collective investment undertakings are the institutions of capital markets established as corporation. They are pursuant to registered capital basis with the purpose of managing portfolios composed of gold and other precious metals traded in national and international stock exchanges and over the counter markets via capital market instruments. Apart from other trusts securities investment trusts' activity area is classified as managing portfolios composed of gold and other precious metals by only capital market instruments. In this study it is aimed to evaluate the performance of nine securities investment trusts traded in BIST via AHP-PROMETHEE methodology. Data sets for this study are financial ratios consist of nine securities investment trusts traded in BIST. While weights of financial ratios are found by using AHP, rankings of securities investment trusts are obtained via PROMETHEE. Furthermore, each year's sensitivity analysis in terms of criteria and GAIA plane which can be used for visual representation of ranking results is constructed.
... National energy independence (Hughes, 2009 (Delucchi and Jacobson, 2010;Jebaraj and Iniyan, 2006) Integrated energy planning is needed to reliably meet energy demands. (Bemis, 1990;Büsgen and Dürrschmidt, 2009;Haas, 2003;Haas et al., 2011;Madlener and Stagl, 2005;Campbell, 2008;Johnstone et al., 2009;Popp et al., 2010;Wüstenhagen and Bilharz, 2006) Net-metering (Payne et al., 2001;Green, 2000) Incentives (Bergek, 2010;Cansino and Pablo-romero, 2010;Dixon et al., 2010;Focacci, 2009;Frankl, 2008) Energy price controls/rate structure Omer, 2008); Subsidies (tax credits, tax exemptions, etc.) (Ahmed et al., 2010;Bürer and Wüstenhagen, 2009;Capros et al., 2007;Streimikiene and Šivickas, 2008; IEA, 2010b) Carbon tax (Curtright et al., 2008;Drury et al., 2009;Kammen and Pacca, 2004;Kutscher, 2007) Cap and trade (EPRI, 2003a;Fthenakis et al., 2009;Komor, 2009;Suna et al., 2008;Wei et al., 2010) Centralized/decentralized power (Edinger and Kaul, 2000;Kaundinya et al., 2009;Coll-Mayor et al., 2007) In either regulated or deregulated case power centralization or decentralization will continue to be a cause for constant debate. certain aspects. ...
... After vigorous review of literature, it was observed that AHP, PROMETHEE and TOPSIS were the popular outranking techniques for the technology selection problem because of their plausibility, understandability and the ability to address qualitative criteria [26]. Several research works report the usage of PROMTHEE for various technological selection problems such as the selection of advanced manufacturing, lean manufacturing techniques and for the design of renewable energy policy [27][28][29]. TOPSIS has also found its usage in wide variety of applications involving technology selection problems. The capability to handle the entire criteria together in the decision-making process makes TOPSIS simple and faster than AHP [30,31]. ...
In this paper, the need of multi-criteria evaluation (MCE) for a desalination technology selection is emphasized through a
case study. Decision context, problem formulation and the relative importance of 11 complete, operational and non-redundant
criteria were established which represented the behavior of the MCE problem. TOPSIS and PROMETHEE-2 methods were identified
as the appropriate MCE techniques and the five alternatives were evaluated using these methods separately. The respective
results indicated that ED was the most applicable technology for the selected community and ranked the usage of electrodialysis,
reverse osmosis, vapor compression, multiple effect distillation and multi-stage flash in the decreasing order of priority.
This chapter investigated the preferences for green electricity attributes by using a discrete choice experiment survey. The survey was distributed to academics community in Indonesia. It identifies the drivers for green electricity adoption and preference, as well as the barriers to academics’ acceptance of green electricity. Also discussed are the key demographics that influence the preference for green electricity. Findings show that price, environmental impact, mode of information dissemination and renewable energy percentage in the electricity mix influence respondents’ preference for green electricity product.
A multitude of pathways for decarbonizing energy systems have been formulated. In the development of these scenarios, the focus is often only on system costs at a given CO2 emission reduction. However, when assessing the sustainability of energy systems in a broader sense, many more aspects need to be considered: In addition to greenhouse gas emissions, energy systems induce further environmental and socio-economic impacts and must meet requirements for security of supply and cost efficiency. For assessing the compatibility of a future energy system with sustainability concepts, alternative pathways must be compared holistically using dedicated assessment methods, which is facilitated by multi-attribute decision making methods (MADM). With the target of identifying sustainable transformation pathways, we assess ten transformation scenarios for the example of Germany, using the three MADM methods weighted sum method, PROMETHEE II and TOPSIS. We find that top ranks are not completely stable across methods, but there are scenario clusters which rank high, medium and low for all methods. In the top ranks, there are both less ambitious scenarios that aim at reducing direct CO2 emissions by 80 %, and more ambitious scenarios with a reduction by at least 95 %. We conclude that scenarios with more ambitious climate protection goals are not necessarily more (or less) sustainable than scenarios that aim for a reduction of 80 % only.
Ecuador's energy mix has greatly reduced its dependency on fossil fuels the last 15 years, down to a marginal role (5%) in electricity generation in 2017. The development plan for the Ecuadorian power network aims to keep adding hydropower to meet the increasing demand. A prospective lifecycle assessment (LCA) of the future power network (2012–2050) can determine the feasibility of the development plan and its environmental sustainability in the long run. For a quantitative analysis of the energy transition over the entire lifecycle, the simulation software® Global Emission Model of Integrated System (GEMIS) is used. The results show that the current development path of the Ecuadorian energy system reduces the emissions of CO2 per kWh generated by 65% due to the large share of renewable energies, mainly hydropower, which costs 1% of Gross Domestic Product. The obtained LCA footprints are similar to the literature benchmarks.
The penetration of the Renewable Energy Sources (RES) and the development of the Energy Efficiency (EE) is related to the synthesis of an appropriate action plan by each state for its energy business environment (companies such as “clean” energy producers, energy services companies etc.). The aim of this chapter is to present an information intelligent system which consists of an expert subsystem, as well as a Multi Criteria subsystem. The system supports the state towards the formulation of a modern business environment, since it incorporates the increasing needs for energy reform, successful energy planning, rational use of energy as well as climate change. The system was successfully applied to the thirteen “new” member states of the EU.
Based on economic and ecological criteria this paper proposes an evaluation framework for the provision of green electricity for charging plug-in electric vehicles in Germany, using the Analytic Hierarchy Process approach for a Multi-Criteria Decision Analysis. The framework allows for a transparent evaluation of the supply of green electricity for electric vehicles from different stakeholder perspectives, without the direct involvement and reassessment by the experts. The relevant criteria for the evaluation are derived from literature, an analysis of eco-labels for electricity tariffs, and 33 expert interviews from four different stakeholder groups (municipal utilities, academia and science, non-governmental organizations, and automobile manufacturers). Eight criteria have been found to be particularly relevant for green electricity service evaluation: regionality, transparency, balancing period, additionality, land use, greenhouse gas emissions, smart charging (via a flexibility discount), and quality premium. The evaluation framework comprises value scores, which represent the degree to which a specific green charging service satisfies a given quality criterion, and combines them with the weights derived in the Analytic Hierarchy Process. The results differ markedly between stakeholder groups and point to the particular importance of additionality, technology-specific greenhouse gas emissions, and transparency. The framework seems useful for service design by (municipal) utilities, charge point operators, non-governmental organizations, and aggregators offering smart charging solutions.
The increasing role of new actors in law-making has received attention since the 1990s. Developments in climate change and environmental law in this era have catalyzed innovative governance approaches by non-State actors and international organizations. These developments have created new legal challenges, both public and private, in a global multilevel governance context. New actors are not solely involved in contributing to thematic law and policy agenda setting, developing solutions, and providing oversight capacity; they are also becoming important players in delivering services. Opportunities to deliver services are growing as the global economy reconfigures around advancing information and communications technologies illustrated by the rapidly emerging ‘gig’ economy.
The European Union (EU) aims to prepare its strategy and infrastructure for further decarbonisation of its energy system in the longer term towards 2050. Recent political discussions and research interest focus on ways to accelerate the development and deployment of low-carbon technologies with respect to the targets set for 2030 and 2050. However, the diverse options available that are to be implemented, are policy sensitive and need careful comparative assessment. This paper presents a multi-criteria approach based on an extension of the Preference Ranking Organization METHod for Enrichment of Evaluations (PROMETHEE) method for group decision-making that incorporates fuzzy set theory in order to evaluate alternative transformation pathways for achieving a sustainable energy system in EU. This assessment aims at providing a direction towards a most preferable pathway concept that should be taken into account by a future model-based analysis of the necessary transformation of our energy sector. The results obtained could support policymakers in drawing effective recommendations based on the findings. The added value of this analysis to policymakers is its contribution to plan climate and energy strategies towards a low-carbon transition pathway by using the information of this approach and prioritizing uncertainties through an environmental and energy perspective.
THE PARIS CLIMATE AGREEMENT IS UNDOUBTEDLY ONE OF THE GREATEST DIPLOMATIC ACHIEVEMENTS OF THE OBAMA-KERRY ADMINISTRATION. YET UNDER THE TRUMP PRESIDENCY, IT IS UNDER THREAT OF BEING DISMANTLED, JUST LIKE MANY OTHER INTERNATIONAL AGREEMENTS, SUCH AS THE TRANS-PACIFIC PARTNERSHIP. THIS ARTICLE EXPLAINS THAT SUCH DISMANTLING WILL BE HARD TO ACHIEVE BECAUSE THE SUCCESS OF THE PARIS AGREEMENT DOES NOT ONLY REST IN ITS NEGOTIATION PHASE, BUT IS SUPPORTED THROUGH A BOTTOM-UP APPROACH IN THE IMPLEMENTATION PHASE AND THE POTENTIAL OF THE INTERNATIONAL TRADING SYSTEM. WITH AN ANALYSIS OF THE CLIMATE REGIME’S NEGOTIATION AND IMPLEMENTATION, THIS PAPER AIMS AT DEMONSTRATING WHY DISMANTLING THE PARIS CLIMATE AGREEMENT WILL BE HARD AND NOT FAVORED BY THE PLURALITY OF ACTORS INVOLVED IN THE PROCESS.
Energy consumption increases all over the world as a result of industrialization in recent years. In this context, it has become important to meet increasing energy demand. It is significant to find alternative energy sources because of limited nonrenewable energy sources such as coal, petroleum, and natural gas. At this point, renewable energy sources have an important role to meet energy requirement. As a result, decision and policy making for energy is completely critical issue for countries. Various technical, economic, environmental, and social criteria are used to solve energy policy and decision-making problems such as evaluation of energy projects, selection among energy alternatives, power plant site selection, and determining energy policy. Multicriteria decision-making (MCDM) methods are used as effective tools to help decision makers while solving energy problems. There are a large number of studies including articles, conference papers, and book chapters, which examine energy problems by using MCDM methods in the literature. Therefore, analyzing these studies according to different features such as publication year, MCDM method, document type, statistical analyses, country, and published journal can be beneficial for leading researchers who study in energy decision-making field. In this study, published papers, which use traditional MCDM methods to handle energy problems, are examined systematically. By the way, it is aimed to lead to researchers regarding MCDM methods which are utilized in energy applications. It also conducted some statistical analyses to obtain trends between years and MCDM methods. Besides, recent developments in energy field are presented through this comprehensive literature review.
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Consumers have the power to contribute to creating a more sustainable future by subscribing to green electricity tariffs. To reach consumers “beyond the eco-niche,” identifying the drivers that positively influence the adoption of green electricity is of fundamental importance. This chapter examines various factors that help to explain the extent to which green electricity subscribers differ from those who display strong preferences toward green electricity but have not yet “walked the talk.” By making use of a latent class segmentation analysis based on choice-based conjoint data, this chapter identifies three groups of potential green electricity adopters with varying degrees of preference for renewable energy. Findings indicate that sociodemographic factors play a marginal role in explaining the differences between green electricity subscribers and potential adopters, with the exception that actual adopters tend to be better educated. Analysis of psychographic and behavioral features reveals that adopters tend to perceive consumer effectiveness to be higher, tend to estimate lower prices for green electricity tariffs, are willing to pay significantly more for other eco-friendly products, and are more likely to have recently changed their electricity contract than nonadopters.
The feed-in tariff has become a popular policy instrument globally for deploying clean energy, often involving substantial public spending commitments. Yet relatively little attention has been paid to how payments made under this policy type get distributed across socioeconomic groups. This paper links information on individual domestic photovoltaic (PV) installations registered under the feed-in tariff for England and Wales, to spatially-organised census data. This makes it possible to observe which socioeconomic groups are benefitting most and least under the policy. Comparing the observed benefit distribution to a counterfactual distribution of perfect equality, a moderate to high level of inequality is found. Cross-sectional regressions suggest that settlement density, home ownership status, physical dwelling type, local information spillovers, and household social class shaped this outcome. Greater sensitivity to these factors in policy design could improve distributional outcomes under feed-in tariff policies in England and Wales, and beyond.
For a very long time, Gross Domestic Product (GDP) has been the key variable at the heart of macroeconomic policies all over the world. Due to the efforts of ecological economists, and especially Herman Daly (2000), a new vision was proposed: the vision of sustainable development as a qualitative creative change, as opposed to quantitative growth. Three key elements seem to be crucial for socio-ecological transformation if our society is to achieve sustainable development, overcome growing energy and resource requirements and rising volumes of emissions and wastes, and facilitate change to renewable energy sources and the conservation of biodiversity: first, the framework of industrial ecology (Graedel and Allenby, 2002), which highlights the importance of the intersectoral flows of matter and energy required for the production of goods and services analyzed in detail throughout the life-cycle of a given product or service, or regional or national system; second, a system of tools for decision-making (Söderbaum, 2000) based on multi-criteria methods which, applied at different levels, would shift the patterns of decision-making towards decisions that are more socially equitable and more environment-friendly, as well as more economically sound; and third, a system of macroeconomic goals or sustainability assessment methods which dominate on the macroeconomic scene.
This chapter explores the potential of combining two useful ecological-economic methods: input–output analysis and multi-criteria decision aid. By doing so, it assesses the sustainability of investment in various economic sectors, with the aim of minimising resource use and generation of emissions. The UK case is taken for the purpose of illustration, and (given the availability of the necessary data) this methodology might be applied in countries with various economic structures and specialisations. An environmentally extended static 123-sector UK input–output model is used, linking a range of physical flows (domestic extraction, use of water, and emissions of CO2, CH4, NOx) with the economic structure of the UK. A range of environmentally adjusted forward and backward linkage coefficients has been developed, adjusted according to final demand, domestic extraction, publicly supplied and directly abstracted water, and emissions of CO2 and NOx. The data on the final demand adjusted and environmentally adjusted forward and backward linkage coefficients were used in a multi-criteria decision-aid assessment, employing a NAIADE method in three different sustainability settings. The assessment was constructed in such a way that each sector of the UK economy was assessed by means of a panel of sustainability criteria, maximising economic effects and minimising environmental effects. This type of multi-criteria analysis, could prove to be a valuable basis for similar studies, especially in the developing world, where trade-offs between economic development and environmental protection have been the subject of considerable debate.
Verbraucher können durch die Wahl von Ökostromprodukten zu einer nachhaltigeren Energiezukunft beitragen. Damit das Marketing Kunden „jenseits der Öko-Nische“ erreicht, ist es wichtig zu verstehen, welche Faktoren einen positiven Einfluss auf den Wechsel zu Ökostrom haben. Dieser Beitrag analysiert, worin sich aktuelle von potenziellen Ökostromkunden unterscheiden. Anhand einer Segmentierungsanalyse, basierend auf Daten einer Conjoint-Analyse unter deutschen Stromkunden, werden drei vielversprechende Zielgruppen identifiziert. Die Ergebnisse zeigen, dass soziodemografische Faktoren – mit Ausnahme des Bildungsniveaus – bei der Erklärung der Unterschiede zwischen aktuellen und potenziellen Ökostromkunden nur eine marginale Rolle spielen. Die Analyse psychografischer und verhaltensorientierter Merkmale zeigt, dass aktuelle Ökostromkunden ihren Einfluss als Verbraucher in Bezug auf Umweltschutz als größer wahrnehmen, die Preise für Ökostromtarife niedriger einschätzen, generell eine höhere Zahlungsbereitschaft für umweltfreundliche Produkte haben und eine höhere Wechselbereitschaft aufweisen als potenzielle Ökostromkunden.
"Nowhere does history indulge in repetitions so often or so uniformly as in Wall Street," observed legendary speculator Jesse Livermore. History tells us that periods of major technological innovation are typically accompanied by speculative bubbles as economic agents overreact to genuine advancements in productivity. Excessive run-ups in asset prices can have important consequences for the economy as firms and investors respond to the price signals, resulting in capital misallocation. On the one hand, speculation can magnify the volatility of economic and financial variables, thus harming the welfare of those who are averse to uncertainty and fluctuations. But on the other hand, speculation can increase investment in risky ventures, thus yielding benefits to a society that suffers from an underinvestment problem.
With no revenue requirement, or where government can use lump-sum taxes, Arthur C. Pigou (1947) shows that the first-best tax on pollution is equal to the marginal environmental damage. Consumers then pay the social marginal cost of each item, the direct cost of resources, plus the indirect cost of pollution.
Suppose government needs more revenue, however, and cannot use lump-sum taxes. In this second-best world, our intuition might tell us to raise all tax rates: the tax on any "clean" commodity should be raised above its first-- best level of zero, and the tax on a "dirty" good should be raised above its first-best Pigovian level (the marginal environmental damage) . Despite this intuition, a recent paper by A. Lans Bovenberg and Ruud A. de Mooij ( 1994 p. 1085 ) claims to "... demonstrate that, in the presence of preexisting distortionary taxes, the optimal pollution tax typically lies below the Pigovian tax...."
This note argues that nothing is necessarily wrong with the intuition that all taxes should be raised. Nothing is wrong with the Bovenberg and de Mooij model either, but the above quote could be misinterpreted. I generalize their model to reconcile these opposing views.
Earlier writers have expressed several versions of the "double-dividend hypothesis."1 These views are discussed more below, but a strong version of this hypothesis might claim that a revenue-neutral switch toward a tax on the dirty good and away from taxation of clean goods can improve environmental quality and reduce the overall cost of tax distortions. By implication, this view might suggest that any additional revenue requirements should be met by raising the tax on the dirty good by more than taxes on clean goods. The important and correct result of Bovenberg and de Mooij is that this strong view is flawed.2 Even if the pollution tax helps solve an environmental problem, it likely worsens other tax distortions. Thus, the tax on the dirty good should rise by less than the tax on the clean good. Bovenberg and de Mooij focus on the differential between the tax rates on the clean and dirty goods, but they never quite say so. They assume the tax on the clean good is always zero, so their dirt tax is the differential. With this choice of normalization, starting with the dirt tax at the Pigovian rate, additional revenue would be raised by the labor tax while the dirt tax (differential) would fall.
However, other normalizations are equally valid and sometimes preferable. In their model, the extra labor tax is equivalent to a uniform tax on both goods. Thus, from the same starting point with the dirt tax at the Pigovian level, an equivalent policy would raise both the commodity tax rates. The total tax on the dirty good would then exceed the Pigovian level.
Bovenberg and de Mooij clearly understand this point, but their readers might not. Therefore, the first purpose of this note is just to clarify the interpretation of their results. The second purpose is to explore the role of "normalization" in a model with tax rates on both goods and on labor. Any one tax rate can be set to zero, as a conceptual matter, but implementation of some taxes might be easier than others as a practical matter.
Solar energy systems (photovoltaics, solar thermal, solar power) provide significant environmental benefits in comparison to the conventional energy sources, thus contributing, to the sustainable development of human activities. Sometimes however, their wide scale deployment has to face potential negative environmental implications. These potential problems seem to be a strong barrier for a further dissemination of these systems in some consumers.To cope with these problems this paper presents an overview of an Environmental Impact Assessment. We assess the potential environmental intrusions in order to ameliorate them with new technological innovations and good practices in the future power systems. The analysis provides the potential burdens to the environment, which include—during the construction, the installation and the demolition phases, as well as especially in the case of the central solar technologies—noise and visual intrusion, greenhouse gas emissions, water and soil pollution, energy consumption, labour accidents, impact on archaeological sites or on sensitive ecosystems, negative and positive socio-economic effects.
The paper explores the basis for decision‐making and policy with regard to the Environment. Clearly these should be based on knowledge of possible consequences and accompanying risk assessments involving the linked behaviour of the many interacting human actors within a socio‐economic system and the ecological, and physical systems in which they are embedded. The paper describes the Complex Systems approach to these problems, showing the kind of models that are required in order to obtain whatever limited knowledge is possible about the co‐evolution of the human and environmental systems involved. Several practical examples are described and the models briefly presented. These are shown as examples of what should be required for the creation of the necessary basis for making policy and decision explorations with an integrated view of the system as a whole, instead of separate parts studied in detail by experts of specific disciplines. This provides a framework for making real use of the “knowledge” of disciplinary experts, and linking their narrow views to the overall, practical consequences in the real world of possible policy options.
In the effort towards sustainability, it has become increasingly important to develop conceptual frames to understand the dynamics of social and ecological systems. Drawing on complex systems theory, this book investigates how human societies deal with change in linked social-ecological systems, and build capacity to adapt to change. The concept of resilience is central in this context. Resilient social-ecological systems have the potential to sustain development by responding to and shaping change in a manner that does not lead to loss of future options. Resilient systems also provide capacity for renewal and innovation in the face of rapid transformation and crisis. The term navigating in the title is meant to capture this dynamic process. Case studies and examples from several geographic areas, cultures and resource types are included, merging forefront research from natural sciences, social sciences and the humanities into a common framework for new insights on sustainability.
Planning, operating, and policy making in the electric utility and natural gas sectors involves important trade-offs among economic, social, and environmental criteria. These trade-offs figure prominently in ongoing debates about how to meet growing energy demands and how to restructure the world's power industry. Energy Decisions and the Environment: A Guide to the Use of Multicriteria Methods reviews practical tools for multicriteria (also called multiobjective) decision analysis that can be used to quantify trade-offs and contribute to more consistent, informed, and transparent decision making. These methods are designed to generate and effectively communicate information about trade-offs; to help people form, articulate, and apply value judgments in decision making; and to promote effective negotiation among stakeholders with competing interests. Energy Decisions and the Environment: A Guide to the Use of Multicriteria Methods includes explanations of a wide range of methods, tutorial applications that readers can duplicate, a detailed review of energy-environment applications, and three in-depth case studies.
List of Figures. Preface. 1: The Economy, Economics and the Environment. 2: The Bioethics of Hunting and Gathering Societies. 3: Equality and Environmental Sustainability in Agricultural Societies. 4: Markets, Property Rights and Biodiversity. 5: Evolutionary Theory and Economic Theory. 6: Selection and Coevolution in Industrial Economies. 7: Economic Growth versus the Environment. 8: Progress, Economy and Environment: Toward a Declining State. References. Index.
Reviews ways in which the respective risks can be calculated and compared. It will be very difficult if not impossible to produce a faithful comparison of energy related risks. Decentralised renewable energy sources at least produce risks mostly for the user, minimising damage to society.-T.O'Riordan
At the turn of the millennium, common themes on government policy agendas include electricity industry liberalisation and climate change mitigation. The 'Renewables Portfolio Standard' (RPS), a policy concept also known as a 'tradable green certificate obligation,' is likewise frequently discussed because it aims to use markets to promote carbonless renewable energy in the electric sector. In this article, experience in RPS implementation in several U.S. states is reviewed. Presently, Texas is the only state that has implemented an RPS policy that contains all the the essential elements. As such, it serves as an excellent example for states still in the implementation stage where, if adequate pro-renewables advocacy resources are invested, things could still turn out well. In Congress, where five RPS proposals await uncertain action on larger electric industry restructuring legislation, another opportunity exists to correct the problems with state RPSs and effectively apply the RPS nationwide. But here again, some proposals are very strong while others, notably that of the Clinton Administration, have potentially fatal flaws that must be corrected through persuasive advocacy. In less than two years' time, renewables advocates will be able to point to an RPS elegantly in action in Texas as evidence that the policy, done right, can deliver renewable energy at an affordable cost.
This collection of short essays provides an application of chaotic dynamics to economic systems. Each chapter presents several economic models incorporating differential (or difference) equations such as the Rössler equations, which exhibit a chaotic attractor. Combining the insights of Schumpeter, Marx, and Keynes, the models endogenously generate irregular, wavelike growth. Goodwin therefore argues that the apparent unpredictability of economic systems is due to deterministic chaos as much as to exogeneous shocks. The book is aimed primarily at economists interested in theories of economic growth. However, readers with a general interest in the application of chaos theory to social sciences will also find it useful. Some mathematical knowledge of systems of differential equations is assumed.
Modernity promised control over nature through science, material abundance through technology and effective government through rational, social organization. Instead of leading to this promised land it has brought us to the brink of environmental and cultural disaster. Why has there been this gap between modernity's aspirations and its achievements? Development Betrayed offers a powerful answer to this question. Development with its unshakeable commitment to the idea of progress, is rooted in modernism and has been betrayed by each of its major tenets. Attempts to control nature have led to the brink of environmental catastrophe. Western technologies have proved inappropriate for the needs of the South, and governments are unable to respond effectively to the crises that have resulted. Offering a thorough and lively critiques of the ideas behind development, Richard Norgaard also offers an alternative co-evolutionary paradigm, in which development is portrayed as a co-evolution between cultural and ecological systems. Rather than a future with all peoples merging to one best way of knowing and doing things, he envisions a future of a patchwork quilt of cultures with real possibilities for harmony.
In 1996, the Dutch distribution companies signed a voluntary agreement to reduce CO 2 emissions. As one element of the agreement, a renewable portfolio standard (RPS) for the electricity distribution companies with certificates trading was introduced (groen label system). The analysis reveals that the total volume of the obligation (3%) can be considered as modest. In addition, it seems more appropriate to replace the distribution companies' current monopoly for the issuing of the certificates by an independent institution. A flexibility mechanism (e.g., a certificates' banking system), which prevents high volatilities in the certificates' market price, and a clear sanction mechanism are needed. A drawback of the current Dutch system is the discriminatory financing of the RPS, which is only provided by MAP tariff customers. Nevertheless, the Dutch RPS may induce an efficient allocation of financial means to support renewable energies. It provides valuable experiences in the functioning of the new system, from which other countries may gain.
The global attention has always been focussed on the adverse environmental impacts of conventional energy sources. In contrast nonconventional energy sources, particularly the renewable ones, have enjoyed a ‘clean’ image vis a vis environmental impacts. The only major exception to this general trend has been large hydropower projects; experience has taught us that they can be disastrous for the environment. The belief now is that minihydel and microhydel projects are harmless alternatives. But are renewable energy sources really as benign as is widely believed? The present essay addresses this question in the background of Lovin's classical paradigm, which had postulated the hard (malignant) and soft (benign) energy concepts in the first place. It critically evaluates the environmental impacts of major renewable energy sources. It then comes up with the broad conclusion that renewable energy sources are not the panacea they are popularly perceived to be; indeed in some cases their adverse environmental impacts can be as strongly negative as the impacts of conventional energy sources. The paper also dwells on the steps we need to take so that we can utilize renewable energy sources without facing environmental backlashes of the type we got from hydropower projects.
An electric power distribution system model has been developed to determine the operating strategies for future power distribution systems with single or multiple objectives. Various load control alternatives such as storage devices, dispersed generators and co-generators, load curtailment, rebound characteristics of curtailable loads, and time-of-day pricing are included in the model. A digital computer program (Optimal Load Control Program, OLCP) was developed and is used to determine optimum operating strategies for multiple as well as single objective functions.A radial distribution system with storage devices, curtailable loads, and dispersed generators is used to demonstrate various capabilities of the method. Several illustrative runs are presented.
This paper proposes a novel and efficient algorithm to obtain the optimal generation dispatch reflecting the operator's intention in power system rescheduling by solving a multi-objective optimization problem. In deciding the optimal system operation, various objectives, such as economy, quality and transmission security, should be attained simultaneously. However, these objectives are contradictory to each other and are in trade-off relations, thus making it difficult to handle this class of problems by conventional approaches.In the proposed algorithm, the optimal generation dispatch problem is formulated as a multi-objective optimization problem. Fuzzy coordination technique based on fuzzy set theory is used to obtain an optimal solution. Evaluation indices composed of fuel cost, transmission line overload and AFC regulation capacity margin are measured by the membership functions, and multi-objective optimization is solved by maximizing the composite performance index, namely, the fuzzy decision-making function.The proposed algorithm has made it possible to treat optimal dispatch problems with multiple objectives and to grasp trade-off relations between selected indices. The effect of uncertain factors pertaining to power systems can also be taken into account. The choice of membership function parameters, reflecting the operator's preference of one of the objectives, influences the overall performance of the optimization procedure. Such an approach allows system operators to decide on different preferences according to system operating conditions, thus resulting in a more flexible operation. The validity and effectiveness of the proposed approach are verified through numerical examples on the 10 node, 5 generator system.
Least-cost planning is transforming the planning process traditionally used in the electric utility industry. As compared to the traditional planning process, least-cost planning broadens the participation by multiple parties and widens the range of the planning options that are assessed. Its integrative nature opens consideration of multiple planning objectives (such as social, environmental, and economic objectives) in evaluating demand-side and supply-side options. Economic rationales for least-cost planning are found in neoclassical and institutional economic thought. Multiattribute decision analysis provides an analytical and decision-making framework for least-cost planning; it can be used to identify issues, objectives, preferences, and expected consequences of planning options.
The author considers the implications for current assumptions about scientific knowledge and environmental policy raised by the preventive approach and the associated Precautionary Principle. He offers a critical examination of approaches to characterizing different kinds of uncertainty in policy knowledge, especially in relation to decision making upstream from environmental effects. Via the key dimension of unrecognized indeterminacy in scientific knowledge, the author argues that shifting the normative principles applied to policy use of science is not merely an external shift in relation to the same body of 'natural' knowledge, but also involves the possible reshaping of the 'natural' knowledge itself.
The UK's renewable energy policy has been characterised by opportunism, cost-limiting caps and continuous adjustments resulting from a lack of clarity of goals. Renewable electricity has had a specific delivery mechanism in place since 1990. The Non- Fossil Fuel Obligation (NFFO) did not deliver deployment; did not create mentors; did not promote diversity; was focussed on electricity and was generally beneficial only to large companies. A new support mechanism, the Renewable Obligation, began in April 2002. This may result in more deployment than the NFFO, but is also beneficial to electricity-generating technologies and large, established companies only. The UK Government published a visionary energy policy in early 2003 placing the UK on a path to cutting carbon dioxide emissions by 60% in 2050. This paper argues that unless the Government 'learns' from it's past results, mistakes and difficulties, clarifies the reasons for supporting renewable energy and then follows through with a focussed policy aimed at delivery, diversity and the creation of mentors, it is likely to be no more successful than the previous 13 years of renewable policy.
This chapter accomplishes four specific goals of clarifying the contribution of economic analysis over the instruments of environmental policy. First, it describes the general situation in which environmental policy goals must be achieved. An appreciation of the complexity of this situation will provide a base from which to consider both past error and actual special cases. Second, it defines a set of dimensions along which policy instruments may usefully be judged. These include: static efficiency, centralized information and computation requirements, enforceability, dynamic incentive effects, flexibility in the face of exogenous change, and implications for goals other than efficiency. In the process, it intends to make explicit the irreducible political content of choices among policy instruments and thus the reasons that technical arguments on the other dimensions are not decisive in the political arena. Thirdly, it reviews both some major non-economic attempts to evade the complexity of the general case and the record of adoptions of explicitly economic prescriptions. Finally, it examines some of the economic complexities associated with a variety of instruments and problems.
The Clean Air Act's approach toward stationary sources involves the specification of emission standards (legal ceilings) on all major emission sources. These standards are imposed on a large number of specific emission points such as stacks, vents, or storage tanks. The emissions trading program attempts to inject more flexibility into the manner in which the objectives of the Clean Air Act are met. Sources are encouraged to change the mix of control technologies in the standards as long as air quality is improved or at least not adversely affected by the change. The concept and cost of the programs are discussed.
This paper describes an applicable group decision-making framework for assisting with multi-criteria analysis in renewable energy projects, utilizing the PROMETHEE II outranking method. The proposed framework is tested in a case study concerning the exploitation of a geothermal resource, located in the island of Chios, Greece. The presented structure provides a serial, decomposed agenda and enhances overall process transparency. Additional, innovatory elements are the incorporation of differing levels of resource exploitation within the decision framework and the direct determination of the PROMETHEE preference thresholds. The developed methodology provides a user-friendly approach, promotes the synergy between different actors, and could pave a way towards consensus.
In response to the challenges of policy issues of risk and the environment, a new type of science-'post-normal'-is emerging. This is analysed in contrast to traditional problem-solving strategies, including core science, applied science, and professional consultancy. We use the two attributes of systems uncertainties and decision stakes to distinguish among these. Post-normal science is appropriate when either attribute is high; then the traditional methodologies are ineffective. In those circumstances, the quality assurance of scientific inputs to the policy process requires an 'extended peer community', consisting of all those with a stake in the dialogue on the issue. Post-normal science can provide a path to the democratization of science, and also a response to the current tendencies to post-modernity.
With growing concerns about air quality issues and the continuing restructuring of electricity supply industries world-wide, the prospects for ‘green power’ - that is, environmentally-friendly electricity - are probably better now than they have ever been. What kinds of power are deemed to be ‘green’, however, is the subject of much debate. In an effort to standardise the definition of green power, certification programs are being developed independently by different countries at the national or sub-national level. Effectively, these are the mechanisms by which green power is currently being defined.
This article compares the attributes of four certification programs for green power-those in Australia, Canada, the United Kingdom and the United States. The goal is to determine the ways in which these programs are similar, and the extent to which they are different. Though there is no definitive effort to determine which certification program is ‘best’, the key debates surrounding the most contentious parts of green power certification programs are identified and investigated. Accordingly, the policy discussion about the relative merits of different approaches is informed and stimulated.
The global attention has always been focused on the adverse environmental impacts of conventional energy sources. In contrast nonconventional energy sources, particularly the renewable ones, have enjoyed a clean image vis a vis environmental impacts. The only major exception to this general trend has been large hydropower projects; experience has taught that they can be disastrous for the environment. The belief now is that mini hydro and microhydro projects are harmless alternatives. But are renewable energy sources really as benign as is widely believed? The present essay addresses this question in the background of Lovin`s classical paradigm which had postulated the hard (malignant) and soft (benign) energy concepts in the first place. It then critically evaluates the environmental impacts of major renewable energy sources. It then comes up with the broad conclusion that renewable energy sources are not the panacea they are popularly perceived to be; indeed in some cases their adverse environmental impacts can be as strongly negative as the impacts of conventional energy sources. The paper also dwells on the steps needed to utilize renewable energy sources without facing environmental backlashes of the type experienced from hydropower projects.
Multiobjective planning models for electric power distribution system planning can include multiple aspects such as community amenity values, geographical conditions of the study area, reliability evaluations (mainly in terms of service continuity), or the optimal voltage profile in the network, as well as the basic planning aspects: power demand requirements, power capacity limits and the minimization of the total system expansion costs. On the other hand, classical single objective planning models have usually considered only the basic aspects. This paper describes a multiobjective model to find the optimal voltage profile and to look for the least cost system expansion simultaneously. Furthermore, two multiobjective techniques for the application of the model to distribution system expansion problems are outlined. The computer results have shown that multiobjective models are able to find solutions which include multiple planning objectives simultaneously, and that these solutions are advantageous compared with the ones from classical single objective models.