It’s a great privilege to become the President of the U.S. Association for Energy Economics, and I look forward to building on what others before me have accomplished. I particularly want to thank outgoing President Lori Schell, who worked long and hard on behalf of the Association to strengthen all that it does.
In this issue of USAEE Dialogue we look forward to the IAEE International Conference to be held in New York City, June 15-18, 2014. In addition to an overview by Jonathan McClelland of the program committee, you’ll find articles that highlight some of the conference’s plenary themes. June may seem like a long time off, but we all know how the calendar gallops ahead. Make your plans now to attend and take note of two important deadlines: the cut-off date for Concurrent Session Abstracts is January 10; and you can benefit from discounted early registration until April 14. Full details can be found at http://www.usaee.org/usaee2014.
Energy Economics is coming to New York City!
The 37th IAEE International Conference will take place at the New Yorker Hotel between June 15 and 18, 2014, and will focus on the relationship between economic growth and energy. Between a great line up of speakers, thought provoking plenary sessions, truly awesome technical tours (see related article), opportunities to socialize with your colleagues, dozens of substantive industry and academic papers, and a great selection of student activities, this IAEE conference, hosted by USAEE, is set to be the best yet.
Featured Papers on Plenary Session Themes:
The Policy Push for Alternative Fuels in Transportation
Rosa Dominquez-FausPost-Graduate Fellow,Institute of Transportation StudiesUniversity of California, DavisandAmy Myers JaffeExecutive Director, Energy & SustainabilityGraduate Shool of Management & Institute of Transportation StudiesUniversity of California, Davis
High global oil prices have encouraged innovation and conservation in many key use sectors, and environmental and security drivers are also driving rapid acceptance of new technologies. This trend is now gaining momentum globally in the transportation sector. Governments are under increasing pressure from many directions, including climate change, air quality, rising urbanization, and national security, to consider policies and directives to hasten the pace of penetration of new more efficient vehicles and adoption of alternative fuels. The period of historic instability across the oil producing regions of the Middle East gives added impetus to programs aimed to diversify national transport fuel sources, especially in the face of increasing demand for mobility among rising middle classes in the developing world.
Global Energy Demand Growth
The need for secure, affordable and sustainable sources of Energy Supply are among the most strategic issues that countries need to safe for economic growth. Without energy, modern industrial and productive activities and day to day ways of life are not possible. Today the world consumes 550 Quadrillion Btu, almost 40% more than in year 2000. How much energy do we would need in ten, thirty or fifty years from now? On which sources we should rely for our future energy needs? In this article I provide some highlights on the theme of Global Energy Demand Growth. Briefly review where we stand today, what are the key drivers of global energy demand? What are the challenges that we should expect ahead and what are the needed and available resources to fulfill world energy needs in a sustainable and secure manner?
Papers from Our Colleagues:
Do the Renewable Portfolio Standards (RPS) promote
Renewable Electricity Generation in the USA?
Evidence from a Panel Data Econometric Study
Renewable Portfolio Standard (RPS) is a widely implemented and discussed supply side state-level regulatory policy instrument aimed to promote generation of renewable energy. Existing literature on RPS developed from discussion of an appropriate policy design, its implementation on national versus state levels and factors driving states to adopt the policy to the analysis of its effectiveness and economic impact. The main objective of this paper is to analyze the impact of the RPS on the share of renewable energy in electricity production and to quantify it using the panel data econometrics methods. Existing literature gives contradictory evidence of RPS policy impact on various measures of renewable energy production. It seems that binary RPS indicators (taking value of one if a policy is implemented and zero otherwise) are not good predictors since they do not take into account difference between regional policies, while RPS stringency variable had good explanatory power. In this paper, I propose to use RPS fractional goal as a proxy for RPS stringency, which is easily available and does not require difficult calculations. A set of control variables and econometric model are chosen in line with previous research.
Risk-Based Assessment of Energy Security
A Case from Europe
Boyko Nitzov*The European Union's Agency for theCooperation of Energy Regulators (ACER)Ljubljana, Slovenia
This paper suggests a risk-based approach to assessing energy security and the cost of its enhancement in the context of the European Union's framework. The paper highlights the inherent cost-benefit tradeoff of choosing a certain level of energy security which would satisfy the formal requirements of the regulatory framework and at the same time be cost-efficient. The suggested analytical framework is applied to the case of a Member State of the European Union.
Gasoline Prices, Vehicle Spending and
Vector Error Correction Estimates Implying a Structurally Adapting,
Integrated System, 1949-2011
Danilo J. SantiniSenior EconomistArgonne National LaboratoryArgonne, ILandDavid A. Poyer,ProfessorMorehouse CollegeAtlanta, GA
Failures of macroeconomic models to predict the recent financial and economic crisis are causing a re-examination of macro-economics, generally focusing on failures to understand the financial system. In general responses have addressed issues of over leveraging, the formation of market bubbles, and the effects of the bubble burst. While these financial phenomena are undoubtedly important, the major run up in the real price of gasoline from 2002 to 2008 has not been considered fundamental to the macroeconomic crisis that followed. To what extent did this process affect household budgets and total employment? Were consumer responses to gasoline price increases also a fundamental attribute of the behavior of the macroeconomy, then and before?
Arizona Decision On Solar PVs Shows Tough Choices Ahead
A compromise decision leaves both sides disappointed
Reprinted from EEnergy Informer (Dec. 2013, Vol. 23, No. 12) with permission.
Fereidoon P. SioshansiEditor & Publisher, EEnergy Informer Walnut Creek, California
Two things Arizona has in abundance are sunshine and land. In the past few years, rooftop solar PVs could be added as growing number of customers, both residential and commercial, discovered the benefits of self-generation. That led to a fierce battle between the state’s biggest private utility, Arizona Public Service (APS) and the solar lobby over the state’s net energy metering (NEM) law.
From the Chapters:
Local Chapters of USAEE are cordially invited to submit articles about chapter activities. Please contact the editor for further information and Guidelines for submission.
National Capital Area Chapter (Washington, DC)
Overnight Field Trip Touring Energy Facilities in
Western Pennsylvania and Maryland
Laurence B. CopePresidentCope Associates, LLCBethesda, MDandJames C. McDonnellChief Operating OfficerAvalon Energy Services, LLCBethesda, MD
On October 4-5, 2013, an enthusiastic group from the National Capital Area Chapter (NCAC) of the U.S. Association for Energy Economics toured energy facilities in Western Pennsylvania and Maryland. Facilities included the Conemaugh Generating Station near Johnstown, PA; the Chestnut Flats Wind Energy Project near Altoona, PA and, a family-owned coal mine near Frostburg, MD. Twenty individuals participated including both veteran NCAC members as well as students pursuing careers in energy. It was fascinating to see the different power generation technologies in operation and gain an understanding of how they work. The tour also provided an opportunity for group members to get better acquainted with other professionals having common interests and to share quality time together.