Conference Agenda

Time-varying prices are thought to be critical for increasing economic efficiency of the power system. However, a rigorous assessment of the evidence from field trials that use time-of-use pricing, critical peak pricing, etc. in households is missing. This machine learning-assisted systematic review compiles the largest dataset till date of results from pricing pilots reported in both academic publications and electricity utility reports. This unique dataset enables us to deduce the presence of publication bias in peer-reviewed publications. Employing a multilevel meta-analysis, we estimate an average reduction of 8.7%-10.6% in peak consumption, 1.2%-1.5% in total consumption and no change in off-peak consumption across trials. Our heterogeneity analysis, using Bayesian Model Averaging, finds that a 10% increase in the peak-to-baseline price ratio is associated with a 0.47% reduction in peak consumption with marginal reduction in effects suggesting “scope effect” in household behavior. Overall consumption is not responsive to price ratio. Dynamic pricing thus seems to be effective in managing electricity demand but with limits.

We assess industrial policy’s role in decarbonization by examining the expansion of nuclear energy in France following the 1973 oil crisis. Within a decade, France initiated construction of 51 new reactors. This resulted in a 62 percent reduction in carbon dioxide emissions from electricity and heat production, and over 20 percent reduction in total CO2 emissions. Emission reductions began six years after policy announcement, with an average abatement cost of -$20 per metric ton of CO2. We show that the government's ability to insulate the policymaking process from opponents was crucial for the political success of the reform.

Climate policy ambitiousness has to be ratcheted up in the coming years in order to attain net-zero targets. This means increasing costs for industries and consumers and designing compensation measures becomes increasingly important. EU carbon trading has the indirect effect of increasing energy costs for energy-intensive industries. Since 2012, half of the European Economic Area countries have turned to specific CO2 compensation to counter such costs and, together with free allowances, avoid carbon leakage. Already amounting to millions of euros, such compensation is expected to increase substantially. However, the compensation mechanism has attracted surprisingly little research interest. Why do some countries establish such compensation, while others do not? And with what effects as to incentives and carbon leakage protection? This article studies the differing choices of Norway and Sweden: two neighbouring countries with significant energy-intensive industries. Only Norway decided (in 2012) to establish a specific CO2 compensation mechanism. This article highlights two central explanations: first and foremost, there was a significant underlying, ‘structural’, difference as to the allocation of EU ETS free allowances, with Norwegian industry somewhat ‘under-allocated’ and Swedish industry considerably over-allocated, indicating different needs for compensation. Second, in Norway key industries mobilized significantly through contacts with prominent politicians and parliamentarians, but less such mobilization took place in Sweden. As to effects, the Norwegian compensation seems to have had the intended results as to carbon leakage protection. But existing evidence is surprisingly scarce, seen in light of considerable compensation handed out and projected increasing amounts.

This paper analyses the impact of the Minimum Energy Efficiency Standard (MEES) on the UK property pricing. MEES aimed to enhance the energy efficiency of privately rented properties. However, prior research highlights that this policy intervention is perceived as a catalyst for transition risk, potentially contributing to the depreciation of sub-standard real estate. In line with this literature, our paper reveals that MEES not only devalues properties targeted by the policy but also neighbouring houses that were not intended to be affected i.e., above-standard properties. To capture this spatial externality, our analysis leverages a dataset that combines variables on property transactions with energy efficiency data at the postcode level. A concentration measure for sub-standard properties within a neighbourhood is constructed, which is applied to aggregate and property level analyses using a difference-in-differences specification. Both methods suggest a negative impact of MEES on the UK housing prices. These results imply potential problems for homeowners who may find themselves in negative equity due to the aggregate price drop and a negative impact on their pro-environmental investments.