Green Tariff Research Articles

Green Tariffs as Incentives Towards Energy Savings in Communications Networks

This paper, to appear as a Chapter in a book, addresses the idea of applying green tariffs as incentives towards energy savings in communication networks, and mobile networks in particular. A first Section addresses regulatory, economic and microeconomic measures in general relevant in this context. The following Section discusses pricing theory in relation to green tariffs; are especially featured individual tariffs within a mass customization framework. The last Section gives two numerical case results with emissions reductions as well as energy reductions, and operator impact on profits, as obtained during a COST project.

Determinants of green electricity tariff uptake in the UK

A number of countries offer domestic consumers the option of buying their electricity supply through a ‘green tariff’, whereby the supplier typically guarantees that all or part of the supply has been generated using renewable energy sources. Previous studies that have sought to identify variables predicting why consumers choose to purchase a green tariff have utilized surveys specifically about the topic. This study builds on previous work by reviewing the UK market using data from the Understanding Society Survey, a general survey of households which should be free from framing or focalism concerns. In addition, this data includes variables that – to the authors’ knowledge – have not been tested through other work. Results find that individuals in the highest income quartile, those with higher qualifications, those supporting the Green political party, and those exhibiting strong environmental behaviour were all more likely to have purchased green tariffs. Significant to a lesser degree were strong environmental attitudes and those households with some form of renewable energy technology installed.

Investment recovery period in electric motor of higher efficiency in pumping for irrigation

In this study, it was adjusted a mathematical model to measure the effect of electric motor efficiency on pumping system costs for irrigation on the tariff structure of conventional electricity and green horo-seasonal , and also to calculate the recovery period of the invested capital in higher efficiency equipment. Then, it was applied to a center pivot irrigation system in two options of electric motor efficiency, 92,6% (standard line) and 94,3% (high efficiency line), and the acquisition cost of the first corresponded to 70% the of the second. The power of the electric motor was 100hp. The results showed that the model allowed us to evaluate if a high efficiency motor was economically viable compared to the standard motor in each tariff structure. The high efficiency motor was not viable in the two tariff structures. In the green horo-seasonal tariff, would only be viable if its efficiency was 4.46% higher than the standard motor. In the conventional tariff, it would only be viable if the efficiency overcame 2.71%.

Environmental pricing of externalities from different sources of electricity generation in Chile

The rapid increase in electricity demand in Chile means a choice must be made between major investments in renewable or non-renewable sources for additional production. Current projects to develop large dams for hydropower in Chilean Patagonia impose an environmental price by damaging the natural environment. On the other hand, the increased use of fossil fuels entails an environmental price in terms of air pollution and greenhouse gas emissions contributing to climate change. This paper studies the debate on future electricity supply in Chile by investigating the preferences of households for a variety of different sources of electricity generation such as fossil fuels, large hydropower in Chilean Patagonia and other renewable energy sources. Using Double Bounded Dichotomous Choice Contingent Valuation, a novel advanced disclosure method and internal consistency test are used to elicit the willingness to pay for less environmentally damaging sources. Policy results suggest a strong preference for renewable energy sources with higher environmental prices imposed by consumers on electricity generated from fossil fuels than from large dams in Chilean Patagonia. Policy results further suggest the possibility of introducing incentives for renewable energy developments that would be supported by consumers through green tariffs or environmental premiums. Methodological findings suggest that advanced disclosure learning overcomes the problem of internal inconsistency in SB-DB estimates.

우크라이나 풍력발전 현황 및 전망

As is the case in Korea, the expansion of renewable energy dissemination is an essential matter in Ukraine when considering its energy consumption and dependence on energy import. While Korea has set about promoting the new and renewable energy industry on the back of the national policy on green growth, Ukraine expects a virtuous circle of renewable energy industry with green tariffs and the attraction of foreign capital in association with carbon emission trade. Utilizing its well-developed heavy industrial sector including the shipbuilding and automobile industries, Korea expects wind turbine manufacturing to become one of its next-generation growth engines. Ukraine is also trying to enter the wind turbine system or parts manufacturing industry based on its automobile industry and advanced aerospace technology. Although the Crimean region in Ukraine seems to have excellent wind resources, and thus shows great potential as a location for wind farm development, political instability has been a major obstacle to the attraction of foreign capital, leading to delayed investment.

A Diffusion Model of an Induced Environmental Market: Reconciling WTP to Actual Adoption of Green Energy Tariffs

A Diffusion Model of an Induced Environmental Market: Reconciling WTP to Actual Adoption of Green Energy Tariffs

Can R&D-Inducing Green Tariffs Replace International Environmental Regulations?

This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and the environment. It shows that tariffs levied on polluting goods could result in less global pollution than harmonization of environmental standards by inducing more pollution abatement R&D, generating lower unit emissions from production, and reducing competition. Green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) strategically inducing abatement R&D by the Northern firm by granting the latter a higher market share, (3) creating abatement R&D by deterring delocation.

Can R&D-inducing green tariffs replace international environmental regulations?

This paper investigates the link between trade and environment by exploring the effects of green tariffs on innovation, location of production and the environment. It shows that tariffs levied on polluting goods could result in less world pollution than global harmonization of environmental standards by inducing more pollution-abatement R&D effort and generating lower unit emissions from production. Specifically, green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) inducing the firm in the clean country to engage in more abatement R&D by granting it a higher market power/share in its home market, (3) instigating green R&D investment by deterring delocation. When these outweigh the R&D-creating effect of environmental harmonization in the dirty country, green tariffs bring about a cleaner environment.

Green energy in Europe: The surprising green electricity market in UK

Just over six months ago, views of experts on the green electricity market in the United Kingdom were when not pessimistic, rather cautious. Then, with the summer of 2001 blew a wind of change. Juice, GreenPlan, Green Tariff and many more new green energy products flooded the market supported by massive marketing campaigns using all possible media in the United Kingdom. Laetitia Ouillet, www.greenprices.com focuses on the latest developments of the green electricity markets in the United Kingdom over the past six months.

Citizen versus consumer: challenges in the UK green power market

This paper investigates the potential advantages and disadvantages of green power products, as opposed to the traditional fossil fuel levy (which was the UK's chosen tax regime), as a means of developing renewable energy in the UK. Willingness to pay for electricity generated from renewables is investigated. Results indicate that willingness to pay varies with social status and income. However results demonstrate that there is a significant minority in full support of some sort of fiscal initiative. Electricity generated from renewables is a concept supported by the majority. However, given the stated willingness to pay it is unlikely that any new renewable capacity will result from green tariff schemes in the near term. It is concluded that the green citizen must continue to co-exist with the green power purchaser if the UK is to make any significant improvement in the contribution of renewable energy to electricity demand. The authors would like to acknowledge the support of Irene Lorenzoni and Jane Powell of the Centre for Social and Economic Research on the Global Environment, University of East Anglia; Leicester Energy Efficiency Advice Centre; and Leicester Energy Agency.

Willingness to Pay for Renewable Energy: Implications for UK Green Tariff Offerings

Although financial support for renewable electricity sources has existed via the non-fossil fuel obligation since 1990, the UK ‘green power’ market is still in its infancy. This paper looks at attitudes to tariffs for ‘green power’ in light of the proposed phase-out of the non-fossil fuel obligation. The hypothesis tested was the consumers’ willingness to pay for electricity generated from renewable energy sources and to see if this was related to income and attitude. Data for analysis were taken from replies to a questionnaire sent to an energy-aware sub-population of Leicester which were analysed by a variety of statistical tests. Results of multiple regression analysis indicated that whether someone was willing to pay more was significantly correlated with attitude, experience (whether they had visited an environmental centre) and the purchasing power placed on £5. This finding has implications for the methods by which support for green tariffs can be increased. Education and raising people’s awareness through experience should be able to change attitudes and so increase their willingness to pay.

Willingness to Pay for Renewable Energy: Implications for UK Green Tariff Offerings

Although financial support for renewable electricity sources has existed via the non-fossil fuel obligation since 1990, the UK 'green power' market is still in its infancy. This paper looks at attitudes to tariffs for green power' in light of the proposed phase-out of the non- fossil fuel obligation. The hypothesis tested was the con sumers' willingness to pay for electricity generated from renewable energy sources and to see if this was related to income and attitude. Data for analysis were taken from replies to a questionnaire sent to an energy-aware sub population of Leicester which were analysed by a variety of statistical tests. Results of multiple regression analysis indicated that whether someone was willing to pay more was significantly correlated with attitude, experience (whether they had visited an environmental centre) and the purchasing power placed on £5. This finding has implications for the methods by which support for green tariffs can be increased. Education and raising people's awareness through experience should be able to change attitudes and so increase their willingness to pay.

The Green Tariff of the Electricite de France

Editor's Note. In submitting this article in its English translation the translators wrote: We have sought to adhere to the meaning of the original French but also have taken some editorial license in clarifying the meaning for the reader. The 'Tariff Vert' or Green tariff, instituted late in 1956 by Electricite de France, the nationalized electric utility system of France represents the most advanced and sophisticated application of marginal cost pricing yet attempted. Regardless of whether the principles are specifically applicable to American conditions, the work of Boiteux, Dessus and others associated together in the formulation and implementation of the tariff are worthy of study and have been receiving increasing attention from American economists. This article first describes the impact of inflation on the electric tariff set up in France in the 1935-38 period which was still in effect in 1956. As will become apparent, the original tariff became completely irrational as a result of inflation. The later part of the translation is given to the Green Tariff. It is noted that this tariff is applicable to wholesale service at voltages ranging upward to 220 kv, an extremely high service voltage. Customers apparently furnish their own transformation equipment. Any rates quoted in American currency are at the approximate exchange rates prevailing at the time and have been computed by the translators. Readers are referred to the paper by Professor James R. Nelson at the American Economic Association meetings of December 1962 in which the tariff was analyzed. It is understood that Professor Nelson will bring out a book which will contain translations of numerous French articles and papers on the subject.

An Application of Marginal Cost Pricing: The Green Tariff in Theory and Practice

An Application of Marginal Cost Pricing: The Green Tariff in Theory and Practice

An Application of Marginal Cost Pricing: The `Green Tariff' in Theory and Practice

From the analysis in Part I,1 certain practical conclusions of a general character may immediately be drawn. First and foremost, the analysis implies that rates should be fixed, so far as possible, in accordance with time of consumption-i.e. that some sort of timeof-day (and time-of-year) tariff should be introduced. Second, it implies that one should 'charge high rates at times when consumption would tend to rise above the level of capacity, so as to bring the corresponding portion of the load curve down to the horizontal'. And third, it implies that one should charge low rates at times when 'consumption at the price fixed cannot attain the level of capacity'with the important proviso here that the rates charged should never be lower than short-run marginal costs. As a result of this pricing policy, it is suggested, the load curve would become horizontal, with hollows here and there in places where a price equal to short-run marginal cost was still not low enough to extend demand to the level of capacity.2 The great question, however, is that of how far one should in fact go in making the load curve horizontal. By increasing prices and reducing capacity sufficiently, the load curve could if required be made completely horizontal, with no hollows in it at all; but this would usually mean lowering it far below the level which most people would consider desirable. It is in relation to this crucial question of the appropriate level of the horizontal portion of the load curve that Boiteux makes what is perhaps his most useful and distinctive contribution. The level of the horizontal part of the curve which should properly be aimed at, he argues in effect, is determined by the condition that the prices charged to the demand or demands on the horizontal part of the curve should be just sufficient to cover not only the appropriate energy costs but also the whole of the long-run marginal capacity cost. And this condition will automatically be fulfilled, as we have seen, if the capacity of the plant is adjusted to the 'optimum' level. In the 'optimum' situation, the pursuance of