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2011 | Buch

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Energy Economics

Concepts, Issues, Markets and Governance

verfasst von: Subhes C. Bhattacharyya

Verlag: Springer London

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Since its modest beginning in the 1970s, the academic and research focus on energy has grown substantially and energy has established itself as an independent, interdisciplinary subject area. It attracts attention from people in a range of different fields including engineers, scientists, geologists, environmentalists, bankers, investors, policy makers and politicians. Energy Economics introduces the basic concepts of energy economics and explains how simple economic tools can be used to analyse contemporary energy issues.

Energy Economics is organised into six parts that give the reader a thorough grounding in various key aspects of the subject:

basic demand-related concepts and ideas used in energy economics; supply-side economics;energy markets, with specific emphasis on oil, gas and coal;the application of simple economic principles in analysing contemporary energy issues;environmental aspects of energy use; andregulatory and governance issues.

Energy Economics is an easily accessible reference book for students of energy economics at the postgraduate level, as well as for a wider interdisciplinary audience. It provides readers with the skills required to understand and analyse complex energy issues from an economic perspective.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction to Energy Economics

Abstract

This chapter introduces the field of energy economics and offers a brief overview of the coverage of the book.

Subhes C. Bhattacharyya

Energy demand analysis and forecasting

Chapter 2. Energy Data and Energy Balance

Abstract

This chapter introduces the industries of the energy sector and presents the basic concepts related to energy. It also introduces the energy accounting framework that provides a consistent basis for energy-related information for statistical analysis. The chapter discusses the data-related issues and indicates how the information presented in the energy balances can be used to understand the energy situation of a country/region. The chapter will enable the reader to understand alternative forms of energies, the energy accounting framework for economic and policy analyses, and various ratios that are used to describe the energy situation of a country/region.

Subhes C. Bhattacharyya

Chapter 3. Understanding and Analysing Energy Demand

Abstract

This chapter introduces the concept of energy demand using basic micro-economics and presents the three-stage decision making process of energy demand. It then provides a set of simple indicators (such as price and income elasticities and energy intensity) and discusses the decomposition method and econometric method that can be used to analyse energy demand.

Subhes C. Bhattacharyya

Chapter 4. Energy Demand Analysis at a Disaggregated Level

Abstract

The purpose of this chapter is to consider energy demand at the fuel level or at the sector level. Each sector or fuel has its specific features that an aggregated analysis cannot capture. A disaggregated analysis also requires more detailed information. This chapter first presents the disaggregation of energy demand, discusses the information issues and introduces frameworks/tools for a disaggregated analysis.

Subhes C. Bhattacharyya

Chapter 5. Energy Demand Forecasting

Abstract

This chapter presents alternative approaches used in forecasting energy demand and discusses their pros and cons. It covers both simple approaches based on indicators and more sophisticated approaches using econometric methods, end-use method and other approaches. The chapter builds on the materials presented in Chaps. 3 and 4 and explains how demand analysis tools are extended to make forecasts for the future. The chapter covers both simple and more sophisticated approaches.

S. C. Bhattacharyya

Chapter 6. Energy Demand Management

Abstract

This chapter introduces the concepts related to management of energy demand and their economic analysis. It focuses on the demand management options and the economic decision making involved in demand management. It also introduces the economic meaning of energy efficiency and presents the debate related to energy saving. Load management, energy efficiency and energy saving are discussed in this chapter. The chapter also introduces a set of evaluation tests that are used to evaluate demand management programmes. Finally, the concept of rebound effect and the link between energy and other factors of production are presented.

Subhes C. Bhattacharyya

Economics of energy supply

Chapter 7. Economic Analysis of Energy Investments

Abstract

This unit introduces the concept of economic analysis of an investment project and highlights the differences between the economic and financial analyses of investments. It also introduces the commonly used indicators for project investment analysis and the basics of risk analysis.

Subhes C. Bhattacharyya

Chapter 8. Economics of Fossil Fuel Supply

Abstract

This chapter provides an introduction to the economic concepts related to fossil fuel supply. The chapter presents a typical chain of activities in the fossil fuel supply, namely exploration, development and production and discusses the relevant economic decision-making issues for each activity. It also considers the influence of government intervention on the investment decisions through fiscal instruments.

Subhes C. Bhattacharyya

Chapter 9. Economics of Non-Renewable Resource Supply

Abstract

This chapter provides a brief introduction to the well-developed economic literature on depletion of non-renewable energies and its effect on energy supply. The chapter first presents a diagrammatic analysis followed by a more formal analysis. The link between the empirical evidence and the theoretical literature is also presented.

Subhes C. Bhattacharyya

Chapter 10. Economics of Electricity Supply

Abstract

This chapter provides an introduction to the economic concepts related to the electricity sector. It introduces the key concepts related to the electricity supply industry (such as load duration curve, capacity factor, and load diversity) and provides simple decision-making tools such as merit order dispatch, levelised costs and screening curves that are used in the industry.

S. C. Bhattacharyya

Chapter 11. The Economics of Renewable Energy Supply

Abstract

This chapter introduces the economics of renewable energy supply. It covers the economics of renewable electricity supply and that of bio-fuels and presents the commonly used support mechanisms. The concerns for level-playing field for renewable energies and the cost barriers are also discussed.

Subhes C. Bhattacharyya

Energy markets

Chapter 12. Energy Markets and Principles of Energy Pricing

Abstract

This chapter introduces the economic concepts related to pricing of energy in different market conditions. The chapter starts with the basic competitive market model and discusses the extensions required to analyse specific features (such as indivisibility of capital, specificity of assets, capital intensiveness, etc.) of the energy sector. The chapter also covers the issue of market failure and presents the commonly used market interventions in such situations. The concept of cost-benefit analysis is used as the framework for most of the analysis.

Subhes C. Bhattacharyya

Chapter 13. Energy Pricing and Taxation

Abstract

Any discussion on energy pricing or appropriate pricing of energy goods and services invokes a passionate debate due to the pervasive nature of energy use and the socio-economic and political implications of energy pricing. Energy consumers at the receiving end of pricing bear the direct consequences of pricing policies, especially so when the demand is inelastic and the substitution possibility is limited. On the other hand, appropriate pricing is essential for energy suppliers. Can the economic theories provide any guidance in this area? The objective of this chapter is to provide some economic understanding of the issues related to energy pricing and to show that even from a theoretical perspective, the problem may not be as easy as it appears.

Subhes C. Bhattacharyya

Chapter 14. International Oil Market

Abstract

This chapter provides a brief review of the evolution and developments of the international oil market. It sketches the historical evolution of the oil industry and indicates the major changes observed in this market. The chapter also presents a brief analysis of some relevant issues such as the changing role of international and national oil companies, changing demand-supply patterns and the OPEC behaviour.

S. C. Bhattacharyya

Chapter 15. Markets for Natural Gas

Abstract

This chapter introduces the specific features of the natural gas market and shows why the industry has developed in a different way than the oil industry. It then indicates the efforts being made in transforming the regional markets into a global market. The economics of the gas market relevant to the developed and the developing countries is also presented.

Subhes C. Bhattacharyya

Chapter 16. Developments in the Coal Market

Abstract

This chapter provides a brief overview of the coal industry and indicates how coal—the old lady of the energy industry—has made a come back. The chapter introduces the reserves, demand, and supply situations in coal and discusses the regional demand pattern. It also indicates the role of clean coal technologies for future development of the industry.

S. C. Bhattacharyya

Chapter 17. Integrated Analysis of Energy Systems

Abstract

This chapter provides an overview of tools and models used to analyse the energy systems in an integrated manner. The chapter refers to the reference energy system and provides a review of various models commonly used for energy system applications. It then touches on energy-economy interactions.

Subhes C. Bhattacharyya

Issues facing the energy sector

Chapter 18. Overview of Global Energy Challenges

Abstract

This chapter provides a brief introduction to the various issues that the energy sector is facing. It introduces the idea of energy transition, takes a look at the changing trend in energy demand and supply and identifies a number of issues that require a better understanding.

Subhes C. Bhattacharyya

Chapter 19. Impact of High Energy Prices

Abstract

This chapter focuses on the issue of high energy prices and their impacts on the economy. As the impact would be different for the importing and exporting countries, this chapter considers them separately. The purpose of this chapter is to explain the economic dimension of the problem and discusses the policies that can be taken to improve the situation.

Subhes C. Bhattacharyya

Chapter 20. Energy Security Issues

Abstract

This chapter focuses on the economic issues related to energy security concerns. Issues related to energy security have resurfaced in recent times due to concerns about fossil fuel depletion, threats to infrastructure and possibilities of disruption due to inadequate investments in infrastructure or market manipulation by market players. This has been strengthened by the recent high oil prices as well as periodic supply interruptions in certain parts of the world. This chapter explains the concept, the economic dimension of the problem and discusses the policies that can be taken to improve the situation.

S. C. Bhattacharyya

Chapter 21. Investment Issues in the Energy Sector

Abstract

This chapter introduces the issues related to energy-related investments and presents the economic arguments to analyse such issues. The presentation focuses on the global, cross-cutting issues on investment without specific focus on a particular country. It presents an overview of the investment needs and present main issues affecting investment and financing of investments. The chapter also touches on the effects of energy sector reform and global financial crises on investments in the sector.

Subhes C. Bhattacharyya

Chapter 22. Energy Access

Abstract

This chapter introduces the problem of lack of access to energy services in order to awareness about the issue. It provides an overview of the problem dimension and presents the common approaches used to address this issue. Finally, it calls for a change in the provision of access to ensure better results.

Subhes C. Bhattacharyya

Economics of energy-environment interactions

Chapter 23. The Economics of Environment Protection

Abstract

The objective of this chapter is to highlight the energy-environment interactions and present the economic principles used in dealing with the environmental issues arising from energy use. The chapter introduces the concept of externalities and discusses the methods available for internalizing them. It also discusses issues related to estimation of external costs.

Subhes C. Bhattacharyya

Chapter 24. Pollution Control from Stationary Sources

Abstract

This chapter presents alternative mitigation options for pollution from stationary sources. It focuses on both direct and indirect control mechanisms and indicates the benefits and shortcomings of each option. The chapter elaborates on the cap-and-trade programme used in the US for mitigation of acid rains and also introduces the problems related to indoor air pollution.

Subhes C. Bhattacharyya

Chapter 25. Pollution Control from Mobile Sources

Abstract

This chapter aims to discuss the options and policies for mitigating pollution from mobile sources. The nature of the externality involved here is first presented and economic as well other instruments for reducing pollution from this sector are considered. It also discusses the economic rationale behind some of the policies generally used.

Subhes C. Bhattacharyya

Chapter 26. The Economics of Climate Change

Abstract

The purpose of this chapter is to introduce the issues related to climate change and discuss the economic perspective of the problem. It then presents the options available for mitigating the problem, and the challenges encountered in their implementation. The chapter discusses the energy sector’s role in the entire debate and highlights the policy debates in both developing and developed countries.

Subhes C. Bhattacharyya

Chapter 27. The Clean Development Mechanism

Abstract

This chapter briefly introduces one of the flexible mechanisms of the Kyoto Protocol that is meant for the developing countries. The chapter provides a review of the mechanism and discusses some issues related to its operation and development.

Subhes C. Bhattacharyya

Regulation and governance of the energy sector

Chapter 28. Regulation of Energy Industries

Abstract

This chapter introduces the concepts related to the regulation of energy industries. It first presents the traditional regulation, followed by the modern concepts of regulation (incentive regulation). The pros and cons of each alternative is discussed as well.

Subhes C. Bhattacharyya

Chapter 29. Reform of the Energy Industry

Abstract

This chapter discusses the reform and restructuring of energy industries and presents the issues related to these structural changes in the energy industry. The chapter starts with a discussion about the economic rationale for government intervention in the energy sector, and the changes that weakened these arguments. Alternative reform models are then presented along with their pros and cons. It also presents a set of factors that determine the substainability of any reform.

S. C. Bhattacharyya

Titel: Energy Economics
verfasst von: Subhes C. Bhattacharyya
Verlag: Springer London
Electronic ISBN: 978-0-85729-268-1
Print ISBN: 978-0-85729-267-4
DOI: https://doi.org/10.1007/978-0-85729-268-1