Energy Policy Change Research Articles

The necessary reorientation of Italian energy policy

ABSTRACT The 2022 Russian invasion of Ukraine triggered profound changes in European energy policy. This was particularly the case for a country like Italy, highly dependent on Russian gas supplies and traditionally an energy partner of Moscow. In this article, we trace the major policy measures enacted by the Draghi government to address security-of-supply risks and foster the development of renewable energy. Moreover, we highlight a number of continuities and differences that emerged in these areas with the appointment of the new government led by Giorgia Meloni. Finally, we discuss some possible longer-term implications and risks for Italian energy policy in the wake of the innovations introduced after the invasion. These include a return of the state in energy governance, the shift of Italian foreign energy policy towards the Mediterranean and Africa as well as unsolved problems in the management of centre-periphery relations for accelerating the country’s energy transition.

Industrial electricity consumption efficiency and energy policy in Japan

This study analyzes the potential for energy savings by identifying inefficiencies in electricity use and their determinants in the Japanese industrial sector. Specifically, we used stochastic frontier analysis to estimate inefficiencies in electricity consumption based on data obtained from electric power companies. We identified significant determinants of electricity consumption efficiency and that changes in national energy policy following the Great East Japan Earthquake changed electricity consumption behavior. The contribution of this study is that its findings can be used to improve the cost-effectiveness of policies aimed at improving energy efficiency.

Managing the energy trilemma of reliability, affordability and renewables: Assessing consumer demands with discrete choice experiments

AbstractIn response to the looming climate crisis, many countries are adopting technologies to reduce the accumulation of greenhouse gases. However, national energy policies are often multiobjective and resolution deeply divisive. The result is a policy trilemma between the energy mix and the trade‐offs with other policy objectives, including cost and reliability. Utilising a discrete choice experiment (DCE), the objective of this study is to explore Australian household preferences for alternative electricity contracts containing features reflecting changes in future energy policy. The first set of features include investments in renewable generation and community‐based energy storage. The second set of features reflect demand‐side management policies, including installing smart meters and consumption limits being imposed on households during peak demand. Two versions of the DCE were developed to obtain both willingness to pay and willingness to accept estimates for the same features. In line with the literature, differences in the two sets of estimates were observed, with the willingness to accept estimates being statistically larger for some features. These dollar value measures can be used to support public policy decision‐making – the choice of which depending on the context of the policy problem being considered.

Canadian climate change attitudes and energy policy.

This paper uses original Canadian survey data to compare support for and opposition to five energy-related climate policies. Results show that Canadians were very concerned about climate change and supportive of the policies. Variation in support and opposition was investigated using logistic regression. We tested models that associate climate policy support with a combination of one's ecological worldview, climate change attitudes, personal capabilities, contextual influences, and ascription of responsibility to take action on climate change, applying elements of Stern's (2000) theory of environmentally-significant behaviour and Patchen's (2010) model of climate change behaviour. We found that the more abstract policies attracted a different set of predictors than the more concrete policies. Females and parents showed increased support for the more abstract policies. Having an ecological worldview was a significant predictor of support for all policies but was obscured by other factors in a combined model. Cet article utilise des données d'enquête canadiennes originales pour comparer le soutien et l'opposition à cinq politiques climatiques liées à l'énergie. Les résultats montrent que les Canadiens étaient très préoccupés par le changement climatique et appuyaient les politiques. La variation du soutien et de l'opposition a été étudiée à l'aide de la régression logistique. Nous avons testé des modèles qui associent le soutien à la politique climatique à une combinaison de vision du monde écologique, d'attitudes face au changement climatique, de capacités personnelles, d'influences contextuelles et d'attribution de la responsabilité d'agir sur le changement climatique, en appliquant des éléments de la théorie de Stern (2000) sur le comportement significatif pour l'environnement et le modèle de comportement face au changement climatique de Patchen (2010). Nous avons constaté que les politiques plus abstraites attiraient un ensemble différent de prédicteurs que les politiques plus concrètes. Les femmes et les parents ont montré un soutien accru pour les politiques plus abstraites. Avoir une vision du monde écologique était un prédicteur significatif du soutien à toutes les politiques, mais était obscurci par d'autres facteurs dans un modèle combiné.

Price fairness: Clean energy stocks and the overall market

This study analyzes the current status and potential of clean energy stocks compared with the overall stock market index, particularly in terms of market efficiency and information flow. We find that despite its low liquidity, the market for clean energy stocks is weak-form efficient and exhibits a significant information outflow toward the market index. Considering the short run integration between the two markets and the recent growth in clean energy investment, we conclude that the clean energy stock market is reaching parity in terms of price fairness and information discovery. Our findings suggest that clean energy stocks can be used as a tool to monitor changes in eco-friendly energy policies for various stakeholders.

Change in US state-level public opinion about climate change: 2008–2020

Public attitudes toward climate change influence climate and energy policies and guide individual mitigation and adaptation behaviors. Over the last decade, as scientific certainty about the causes and impacts of, and solutions to the climate crisis has increased, cities, states, and regions in the United States have pursued diverse policy strategies. Yet, our understanding of how Americans’ climate views are changing remains largely limited to national trends. Here we use a large US survey dataset () to estimate dynamic, state-level changes in 16 climate change beliefs, risk perceptions, and policy preferences over 13 years (2008–2020). We find increases in global warming issue importance and perceived harm in every state. Policy support, however, increased in more liberal states like California and New York, but remained stable elsewhere. Year-by-year estimates of state-level climate opinions can be used to support sub-national mitigation and adaptation efforts that depend on public support and engagement.

A reliable energy system for Japan with merit order dispatch, high variable renewable share and no nuclear power

In the context of Japanese energy targets for 2030 and the long-term strategy towards zero carbon emissions by 2050, this study estimates the impact of several measures for increasing the renewable generation share while maintaining a reliable energy system. To do so, the authors attempted to reproduce the expected 2030 energy mix according to the 5th Strategic Energy Plan, and then formulated two different alternative scenarios: a European-style merit order dispatch in Scenario 1, and the replacement of nuclear generation with renewables in Scenario 2. The simulations were carried out using the Energy System simulation model (EnSym), which was newly developed by the authors. EnSym simulates the hourly generation of all major resources, including variable renewables, using meteorological data. Spatially, EnSym also simulates the electricity transmission grid of Japan, allowing to understand how changes in grid capacity, dispatch framework and energy policy can impact the overall system. The results show that merely switching to a merit order dispatch could increase the use of renewable generation by 1.5% (to 22.6%). Further, replacing nuclear power resulted in a renewable share of 58.2%, which would include 300 GW of solar PV, 45 GW wind, 36 GW biomass and 23 GW geothermal capacity (while leaving all other generating capacity constant at 2021 levels). Based on these results, the authors also provide recommendations for changes to the next, 6th, Strategic Energy Plan.

Start-Up Accelerators and Their Impact on Sustainability: Literature Analysis and Case Studies from the Energy Sector

Start-up accelerators are units supporting entrepreneurs (substantively, financially, legally, and organizationally) in establishing and running young and innovative companies such as start-ups. The commencing energy crisis has led to the need for energy savings, as well as the need to change energy policies and implement energy transformation, creating a wide field for start-ups and start-up accelerators. Making full use of potentially innovative solutions developed by start-ups is, in turn, essential for energy giants and related accelerators in the market. This has created the need for specific research in this direction. Therefore, in this paper we review the literature for 2011–2021 with respect to the role of accelerators supporting start-ups. A survey based on the Scopus database resulted in the identification of 76 papers on accelerators. Particular attention was paid to aspects of sustainable development (economic, social, and environmental). The analysis indicated that 75 works dealt with the economic aspects, 35 focused on social aspects, and only 5 focused on environmental aspects. Due to the perceived gap related to the small number of works dealing with environmental aspects, a decision was made to analyse the energy sector and the methods of operation of accelerators in this sector. Three models found in the market that were used by energy companies to cooperate with start-ups were characterized, along with their goals, in an attempt to enable an improved understanding as to which acceleration model best fits a manager’s organization. The models were supported by case studies—a model of commercial cooperation between a corporation and an external accelerator, a model of creating a corporate accelerator within an internal structure, and a hybrid model.

Addressing the consequences of Russian aggression towards Ukraine: The case of affordable housing in Central and Eastern Europe

As a result of Russian aggression towards Ukraine, lowering European dependence on Russian energy has become a priority for the EU. Policy responses that address energy security have the potential to accelerate the EU’s path to carbon neutrality as well as to boost the funds available for energy efficiency improvements. However, due to the escalating cost of living, many fear energy policy changes may put even more pressure on those who are already struggling to pay their bills. This article argues that for geographic, historical and political reasons, the affordable and social housing sector in Central and Eastern European EU member states is the place to start with the implementation of new energy policy goals. These countries could use funds newly made available to address the needs of Ukrainian refugees while easing the housing problem that this region has been tussling with for decades.

THE IMPACT OF THE RUSSIAN AGGRESSION AGAINST UKRAINE: UNCERTAINTY, INSECURITY AND FEAR OF THE ENERGY POLICY IN THE FACE OF WAR AND THE CONSEQUENCES OF WAR

On February 24, 2022, Russia, led by Putin, destroyed the European world peace by a military attack on Ukraine under the pretext that Ukraine poses a constant threat to Russia, hindering the development of Russia and its existence. The Russian invasion of Ukraine, which for Putin is a fiction “about a special military operation”, has greatly affected energy security around the world and provoked uncertainty in the field of energy policy both in Europe and in the world. The authors of this paper do not intend to present their final judgment and outcome on this issue, especially for the reason that the situation in the field of energy policy changes from day to day. However, the authors want to contribute to better understanding of this problem in terms of what can be expected in the future. This involves the measures necessary to achieve energy security, including independence from Russian gas. In addition, it can be assumed that after the introduction of Western sanctions against Russia, Putin manipulates and uses energy policy as his political weapon.

COVID-19, Generation Fuels, and the Energy Transition in the Philippines

The lockdown associated with COVID-19 caused a sizeable downward shock to electricity demand in the Philippines. Although coal is usually classified as a “baseload” fuel, it ironically bore the brunt of adjustment in the generation mix. The resulting upward pressure on retail prices was offset by force majeure contract provisions that allowed distribution utilities to pay lower fixed charges on their power purchase agreements. Coal generators thus suffered the double whammy of lower sales at lower rates. While existing coal plants will contribute to affordability during the recovery, plants in the planning stage may be reevaluated in light of the falling cost of wind and solar power and the low costs of dealing with intermittency when the percentage of intermittent generation is low. The Department of Energy’s “technology neutral” policy towards the generation mix is sound so long as least cost is interpreted to include the social costs of pollution. Some changes in renewable energy policy are indicated.

Role of Energy Taxation in Terms of Achieving Climate Neutrality

The energy tax is a type of environmental tax. In addition to its ability to generate revenue for the central budget, it is important that it can have a major impact on the achievement of the European Union’s significant but not legally binding objectives in the field of energy policy and climate change. The role of the energy tax is gradually increasing, partly due to the growing importance of environmental considerations in certain policies, on the other hand, the EU attaches great importance to the harmonization of these tax rules, as almost 75% of environmental taxes in integration come from the energy sector, so the role of energy taxes in environmental taxation and policy is also important. The EU wants to reduce its greenhouse gas emissions by 55% by 2030 and achieve full climate neutrality by 2050, as set out in the Green Agreement Communication. Aiming to achieve these goals, the European Commission has adopted the so called ‘Fit for 55’ package of proposals on climate protection, which, in addition to several measures, states the need of the amendment of the Energy Tax Directive (hereinafter: Energy Tax Directive, the Directive). The reason for this is that, in its current form, it is not in line with climate protection goals, as it does not encourage the reduction of greenhouse gas emissions and energy efficiency.

Racing to the last barrel: Linking oil and gas industry interests to climate inaction in Canada

Despite increasing urgency of the climate crisis, Canada has systematically failed to reach its greenhouse gas emissions reduction targets. Meanwhile, the country's fossil fuel industry, mostly based in the province of Alberta, has continued to grow, becoming the nation's main source of emissions. Recently, several studies have used a policy network (PN) approach to outline this industry's reach within Canadian public and political spheres. This research suggests that this network is one of the primary drivers of climate inaction in the country. While these studies outline the extent of the fossil fuel PN in Canadian society, further research is required to fully understand its degree of influence within Canadian politics. Particularly, it remains unclear how this network can steer specific policies towards preferred outcomes. As such, this study seeks to determine whether climate and energy policy decisions in Alberta reflect the interests of the fossil fuel industry. To do so, it observes the evolution of non-state actor membership in 11 key provincial policymaking bodies along with climate and energy policy change between 1990 and 2019. This analysis is also complemented by ten interviews of key individuals with decades of involvement in environmental or energy policymaking. The main findings show that fossil fuel industry actors have had substantial political influence on climate and energy policy decisions in Alberta for nearly three decades – and despite varying degrees of inclusion of other actors with differing interests. These findings help understand how industry interests can affect climate policy decisions in Canada.

Information and Public Knowledge of the Potential of Alternative Energies

The objective of this research project is to study the economic development model of the Angolan economy in order to analyze the adoption of an alternative strategy capable of leveraging the economy, based essentially on alternative energies, and therefore, to demonstrate and prove the need to diversify Angola’s economic model, highlighting the benefits of a diversified versus a non-diversified economy with respect to sustainability. The first stage of the design of this empirical study involved establishing a focus group in order to construct and adjust a data collection instrument in the form of a questionnaire to be applied to a broader set of managers and informed professionals with a critical view of the country’s future and the models and alternatives to economic development and diversification of the economy on a sustainable basis. Energy plays a fundamental role in Angola’s economic and social development. Excessive dependency on the oil sector and inefficient production due to high costs, combined with changes in global environmental and energy policies, make it essential to reflect on the evolution of the country’s energy sector, equating a different economic development model, the diversification of the economy, and the exploration of other sources of energy, such as biofuels. Renewable energies emerge as a safe, healthy, environmentally friendly and economically viable energy alternative that could bring the Angolan economy closer to that of developed countries. Biofuels have become popular and have begun to be seen as a valid alternative to fossil fuels because they have lower production costs and they cause less impact on nature. Furthermore, since they are biodegradable, they can be commercialized at a lower cost from renewable sources. According to the respondents, the research results show that the best energy alternatives to reduce oil dependency are solar energy, biodiesel, hydraulic energy, and bioethanol. An assessment of the attractiveness and potential of biofuels show that the best alternative is bioethanol, followed by biodiesel.

Solar energy development in households: ways to improve state policy in Ukraine and Latvia

ABSTRACT The paper investigates state policy to promote solar energy in Latvia’s and Ukraine’s households. Comparing different approaches to stimulating sectors’ development in both countries, the article evaluates the economic efficiency of solar power plants implementation based on the Levelized Cost of Electricity method and investment projects payback periods. The calculations were performed for solar power plants installed capacities ranging from 1 to 30 kW. The results revealed the fundamental differences in solar energy advancement due to the existing support mechanisms in the countries. While high feed-in tariff rates contribute to the rapid deployment of solar power plants in Ukraine’s, Latvia’s net-metering system hinders solar energy development in households. The research forms recommendations for improving policy by adjusting Ukrainian feed-in tariffs to trends in reducing solar energy costs, introducing solar energy in the Mandatory Procurement Component for Latvia, and applying preferential public financing to solar power plants construction in both states. Highlights State policy to promote solar energy in Ukraine’s and Latvia’s homes is analyzed The economic efficiency of small solar power plants is estimated for both countries Feed-in tariff in Ukraine ensures a quick payback period for solar power projects Net metering in Latvia does not provide investment attractiveness of solar plants Both countries need energy policy changes for balanced solar power development

The Influential Mechanisms of Power Actor Groups on Policy Mix Adoption: Lessons Learned from Feed-In Tariffs in the Renewable Energy Transition in Iran and Germany

The Energy transition is fiercely competitive. The incumbents of fossil-based energy are in conflict with the advocate coalitions of transition in energy policy changes. Such changes do not occur as sudden punctuation via an external shock, but rather incrementally and over time, by incorporating power insights such as lobbies, coalitions, and campaigns. This article provides a framework grounded in theoretical power theories and draws additional insights from policy mix studies. It investigates how focusing events and feedback loops shape the coalition of interest groups in policymaking through implementations of power mechanisms. Our framework is tested through two different power stories of energy transition in Iran and Germany. Our findings reveal that the centrally planned economy of Iran leaves society with a negligible or passive role in the energy transition. The passive role of society in the energy transition is mainly caused by subsidizing energy. In addition, the financial and economic crisis resulting from other macro-economic challenges, such as sanctions, may exacerbate the minor involvement of civil society in the slow expansion of renewables in Iran. By contrast, as a robust economy with a corporatist tradition, Germany has made a strong advocacy coalition of energy transition that resulted in political incentives for substantial renewable energy deployment. Regarding the theoretical question of the power dynamics in divergent countries’ energy transitions, the proposed framework based on the interest group coalitions and power mechanism offers an understanding of the social character of energy transitions.

Stabilization of Transformation Processes in the Energy Security Measurement System of Ukraine

Radical transformations of the Ukrainian energy system also caused changes in energy policy. However, the interpreted provisions did not provide for extraordinary differences regarding the modification of energy measures in terms of individual regions. These actions subsequently caused the institutional transformation of fuel, gas, and electric power measures on the way to economic liberalization. Energy policy combines legal, organizational, financial and economic regulation in the country's national policy context. Implementation of innovative technological improvements in the FEC allows for: modernization of the energy system; improvement of infrastructure; integrating advanced foreign practices into one's own system; application of innovations following the EU legislation; introduction of hydrogen technologies and the transition to clean energy. Creation of reserves to avoid the shortage of energy resources: formation of the legislation of Ukraine regarding the reservation of oil and gas storages; creation of an Eastern European gas and oil center (hub) in Ukraine; formation of a system of increasing price competition on European markets through reservation. Assimilation of experience and formation of established norms of behavior on energy saving includes: improvement of normative and legal aspects of the regulation of economic activity by business entities; technical improvement of production processes; application of systematic monitoring and energy audit; achieving the effect of scale during the production and consumption of energy resources. The energy efficiency of the use of resources in view of their diversity and the use of FEC allows for: reliability and continuity of energy supply; pricing; normative and legal instruments of regulation; projects related to the implementation of efficient energy use; measures to preserve the environment. Diversification in the application of RES in energy segments provides for: diversifying the ties with the countries of the energy society; resuming the cooperation with Poland through the ?winouj?cie LNG terminal in the context of gas and energy; activating the transit of energy resources through Slovakia, Moldova, and Romania. The function of the energy system following EU legislation and modern global challenges consists in: implementation of the priorities of the Green Deal; transition to clean energy; application of hydrogen energy; establishing the infrastructure for the use of RES.

Геоэкономические и геополитические вызовы энергетического перехода. Последствия для мировой экономики

The article deals with geoeconomic and geopolitical challenges for the further development of the world economy in the conditions of the energy transition designated by a number of countries of the world. The authors carried out a detailed analysis of the trends in the development of “green” energy in the period before and during the COVID‑19 pandemic, identified the main directions of changes in the state energy policy of developed and developing countries. It is established that the accelerated and forced transition to renewable energy sources had a negative impact on the dynamics of economic development of a number of countries of the world. The authors make the assumption that the non-alternative and accelerated transition to “green” energy, actively promoted by developed countries (EU, USA and other OECD countries), together with a sharp decline in investment in traditional hydrocarbon energy sources, can lead to the formation of significant imbalances in the global economy, loss of predictability of the development of global and regional energy and energy markets. In addition, the authors pay special attention to the role of rare earth metals in the energy transition, whose markets are characterized by high monopolization in favor of China. Together with the global economic crisis, which was caused by the consequences of the COVID‑19 pandemic, the trends of the accelerated energy transition have significantly worsened the stability of the energy systems of many countries of the world. Taking into account these factors, the authors have analyzed the strategic consequences for states engaged in intensive decarbonization of their national economies and the fuel and energy complex. At the same time, the authors noted that the EU’s long-term plans to increase the share of hydrogen energy in the energy balance open up new prospects for the Russian Federation, which has extensive opportunities for the production and export of hydrogen. The importance of the development of domestic technologies in the field of hydrogen energy was noted. In addition, taking into account the development trends of the energy transition, the importance of the development of the rare earth industry in the Russian Federation to reduce the impact of imports of rare earth elements from China was noted.

Public Service Obligation Levy in the Context of Energy Sustainability and Security: The Cases of Ireland, Greece, Denmark and Lithuania

Energy policy affects the functioning of the economic and financial systems of countries worldwide. This paper provides a theoretical overview of the economy–energy nexus and discusses the particular cases of the energy policy dynamics amid the sustainability goals. This paper integrates multiple perspectives on the energy–economy nexus, with a particular focus on the energy trilemma, 4As of energy security and PESTEL approach. This allows the development of a comprehensive framework for the analysis of energy security and the sustainability interaction. A review of manifestations of the different dimensions of energy security and sustainability is carried out to identify the most topical facets of the issue. Then, the cases of the selected European Union countries (Ireland, Greece, Denmark and Lithuania) are presented to highlight the effects and features of the recent energy policy changes there. Indeed, these countries apply a PSO levy mechanism on electricity tariffs and are diverse in their geopolitical situation, economic development, geographical situation and energy dependency level. The analysis of the situations of such different countries applying the PSO levy mechanism makes it possible to perform a broader and more in-depth assessment and comparison of electricity tariff regulations. Thus, the developed theoretical model is applied to identify the major outcomes of the energy policy regimes (with a focus on tariff regulation) in the selected countries.

Vanishing weekly hydropeaking cycles in American and Canadian rivers

Sub-daily and weekly flow cycles termed ‘hydropeaking’ are common features in regulated rivers worldwide. Weekly flow periodicity arises from fluctuating electricity demand and production tied to socioeconomic activity, typically with higher consumption during weekdays followed by reductions on weekends. Here, we propose a weekly hydropeaking index to quantify the 1920–2019 intensity and prevalence of weekly hydropeaking cycles at 500 sites across the United States of America and Canada. A robust weekly hydropeaking signal exists at 1.8% of sites starting in 1920, peaking at 18.9% in 1963, and diminishing to 3.1% in 2019, marking a 21st century decline in weekly hydropeaking intensity. We propose this decline may be tied to recent, above-average precipitation, socioeconomic shifts, alternative energy production, and legislative and policy changes impacting water management in regulated systems. Vanishing weekly hydropeaking cycles may offset some of the prior deleterious ecohydrological impacts from hydropeaking in highly regulated rivers.