USAEE Dialogue

Vol. 23, No. 2 (May 2015)

USAEE Dialogue is the official on-line Newsletter of the United States Association for Energy Economics.  Its mission is to communicate recent research, analyses and case studies on issues of energy economics that are of general interest to the membership.  USAEE Dialogue is also a forum for reports of local USAEE Chapter and other USAEE/IAEE-sanctioned activities involving USAEE members. Articles for publication are invited from USAEE members in all sectors of the energy economics’ community -- business/consulting, government and academia (including students). For further information please consult: "Guidelines for Submissions of Articles" at:  http://www.usaee.org/pdf/blog/Dialogue_Article_Submission_Guidelines.pdf



From the President, USAEE


Troy N. Thompson
Manager, Business Planning & Analytics
Chevron Corporation 
(Houston, TX)

Educational Opportunities for Members

A core part of the USAEEs mission is to offer educational opportunities to members and stakeholders who have a shared interest in energy development. Along with past USAEE President Lori Schell, I’m excited to announce that both USAEE and IAEE have been approved by the respected non-profit Global Association of Risk Professionals (GARP) to be Continuing Professional Development (CPD) providers. GARP is a 100,000 member strong association that offers Energy Risk Professional (ERP) certification that is recognized internationally for giving students the tools they need to think critically about the entire energy value chain. The 8-hour ERP exam is offered twice a year; certified ERPs must earn 40 CPD credit hours every two years to maintain their standing. Now for the first time, ERPs attending USAEE and IAEE conferences will earn GARP CPD credits, which will add even more value to our conferences, especially to GARP members. Consider for example that the IAEE International Conference in Antalya, Turkey, this May will earn certified ERPs an almost-unprecedented 21 CPD credits, attesting to the value of this conference in promoting thought leadership on energy issues.



From the Editor

Robert Eric Borgström
Advisor on Energy Regulatory Policy & Management
(Washington, DC)
Dear Colleagues,
In this issue of USAEE Dialogue we’re pleased to present the following articles:
        • “The Effect of Urban Household Lifestyle Change on Energy Demand in China,” by Osasohan Agbonlahor of the University of Nevada, Reno;
        • “A Re-Examination of Energy Intensity in the U.S. Manufacturing Sector,” by Gavin Pickenpaugh and Peter Balash of the US Department of Energy’s National Energy Research Laboratory in Pittsburgh;
        • “US Energy Efficiency on the Rise,” a reprint (with permission) from Fereidoon P. Sioshansi’s EEnergy Informer;
        • A write-up on USAEE’s Breakfast Energy Talk Series (“BEST”), facilitated by the National Capital Area Chapter in Washington, DC., by Karen Palmer;
        • A report on the Central Texas Chapter's Workshop on EPA's Proposed Clean Power Plan Rules in Austin, Texas, by Karl Nalepa; and
        • An update from the Colorado School of Mines Chapter in Golden, Colorado, by Braeton Smith.





The Effect of Urban Household Lifestyle Change on Energy Demand in China


Osasohan Agbonlahor
Graduate Assistant, Dept. of Economics
University of Nevada, Reno


China is the second largest energy consuming country behind the United States. The household lifestyle has undergone significant change due to the rapid economic growth it has experienced in the last decade. This change has led to an increase in incomes, demand for goods and services as well as energy consumption. The purpose of this study is to examine the impact of change in urban household lifestyle on energy consumption and the related carbon emissions. The study employs the use of the Consumer Lifestyle Approach (CLA) in measuring the direct and indirect effects of household lifestyle changes on energy demand. The results show that energy consumption and annual carbon emission have increased throughout the study period, while energy intensity has shown a declining trend. 





A Re-Examination of Energy Intensity in the U.S. Manufacturing Sector*


Gavin Pickenpaugh
National Energy Technology Laboratory
(Pittsburgh, PA)

Peter Balash
Senior Economist,
National Energy Technology Laboratory
(Pittsburgh, PA)


United States energy intensity, measured as primary energy consumption per dollar of real gross domestic product (GDP), fell approximately 49 percent from 1980 to 2013 (EIA, MER and BEA, NIPA).  Research concerning the driving forces of improvements in energy intensity dates back to the late 1970s. This paper is comprised of two major analysis sections, which cover the 1998, 2002, 2006, and 2010 periods for the U.S. manufacturing sector. The first major analysis section decomposes movements in energy intensity into two factors: structural and efficiency change.  The efficiency effect is the change in intensity resulting from efficiency changes within individual sectors.  The structural effect is the change in energy intensity due to shifts in production between sectors.  Contributions of this analysis section to the literature are: 1. It uses a newer U.S. data set than has been used in previous papers (Manufacturing Energy Consumption Survey [MECS]), which has data through 2010; 2. It provides results at both national and regional levels, whereas much of the literature focuses on the national level.





Reprinted from EEnergy Informer (March 2015), with permission.

US Energy Efficiency On The Rise

Fereidoon P. Sioshansi
Editor and Publisher
"EEnergy Informer"
Walnut Creek, CA

One of the reasons for the slow electricity demand growth in the US and elsewhere is the renewed interest in energy efficiency. In the US, many states require utilities to engage in energy efficiency programs with funding from their very own customers. Like everything else in the US, the details vary considerably from state to state.




USAEE’s Distinguished Lecturer Series ("DLS")


The USAEE "Distinguished Lecturer Committee" is pleased to announce the selection of the following two outstanding individuals, nominated by their peers, who will be sharing their knowledge and expertise with our members as part of USAEE's Distinguished Lecturer Series:

Guy Caruso,
Senior Associate,
CSIS, Washington, DC



Kevin Forbes,
Associate Professor,
Catholic University of America,
Washington, DC,
Tel: 202-319-4794




DLS was formed in 2012 under the leadership of Shree Vikas, USAEE's Vice-President, Business, to obtain outstanding speakers to facilitate the creation of new USAEE Chapters, revitalize existing Chapters, and to conduct USAEE-sponsored webinars. The DLS disseminates information about the latest energy market trends and applied economic analysis from peer-nominated thought leaders and recognized experts in their field who are known to be capable speakers. In addition to Guy Caruso and Kevin Forbes, USAEE's roster of Distinguished Lecturers now includes Dong Fu (ExxonMobil Corporation); Todd Onderdonk (ExxonMobil Corporation); Surya Rajan (Baker Hughes); and Benjamin Schlesinger (BSA & Associates).




Local Activities

The Presidents of local USAEE Chapters are cordially invited to submit write-ups with photographs about their chapter activities.  Please contact the Editor at robertborgstrom2@gmail.com for further information and submission guidelines.



USAEE Breakfast Energy Series Talks ("BEST")

Facilitated by the National Capital Area Chapter (NCAC), Washington, DC


Molly Macauley, Vice President for Research, Resources for the Future welcomes guests and Professor Catherine Wolfram (UC Berkeley) to RFF for her BEST Presentation. (Washington, DC: March 16, 2015)

USAEE’s Breakfast Energy Series Talks (“BEST”), facilitated by the National Capital Area Chapter (NCAC) is a program that, from time to time, provides a forum for energy luminaries visiting the Washington, DC area to make presentations on their current research interests to local members and others from the DC area.  Currently these events are held at the Washington, DC offices of Resources for the Future (RFF).  It is envisioned that other USAEE (as well as IAEE) chapters could facilitate similar forums in their local areas.




Central Texas Chapter's Workshop on EPA's Proposed Clean Power Plan Rules

EPA’s Proposed Clean Power Plan Rules: Economic Modeling and Effects On the Electric Reliability of Texas Region


On April 8, 2015, the Central Texas Chapter of the USAEE (CTAEE) co-sponsored with the Energy Institute at the University of Texas at Austin a Workshop entitled "EPA’s Proposed Clean Power Plan Rules: Economic Modeling and Effects on the Electric Reliability of Texas Region". The proposed new rules will limit greenhouse gas emissions from existing fossil fuel power plants under Section 111(d) of the Clean Air Act. If enacted, the proposed rules will have significant implications for the economy and the environment, both in Texas and across the country. The Workshop provided a forum for understanding the impact of, and options for, implementing the proposed rules that would be useful to policy makers. It attracted more than 100 registered attendees, representing a broad range of industry stakeholders.



Update from the Colorado School of Mines Chapter

Golden, Colorado

The Colorado School of Mines (CSM) Chapter is off to a great start and continues to expand its membership and reach in the Denver area. In early October of 2014, the Chapter co-sponsored a field trip to the Trapper Coal Mine near Craig, Colorado, about 3 hours from Golden. The Trapper mine is an open-pit mine-to-mouth operation, feeding Tri-State’s Craig Station power plant. The trip provided members an excellent opportunity to see firsthand how day-to-day mining operations are affected by the power plant’s load requirements.




Forthcoming USAEE / IAEE Conferences

33rd USAEE North American Conference

"The Dynamic Energy Landscape"

Pittsburgh, Pennsylvania

Oct. 25 - 28, 2015

This year, our annual conference will be held in Pittsburgh, Pennsylvania, one of the main centers of American energy and an area that has witnessed an industrial resurgence, which will also be one of the planned plenary topics.  In addition, a Society of Petroleum Engineers (SPE) led topic will focus on water at the well-site and explore the challenges around its production, handling and disposal.  Other plenaries plan to  cover a wide range of topics that include Renewable Energy Integration, Climate, the Future of Coal, Geopolitics, Energy Infrastructure and current issues facing North American Energy.  A post-conference technical tour to Range Resources’ Southwest Marcellus Shale natural gas producing operations is also planned.  

Please note that the deadline for receipt of abstracts for both the Concurrent Sessions and the Student Poster Session is Thursday, May 21, 2015.  

Check the conference website at www.usaee.org/usaee2015 periodically for further information as our planning continues.




38th IAEE International Conference 

"Economic, Environmental, Technological and Security Challenges for Energy" 

Antalya, Turkey

 May 24 - 27, 2015 




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