Decarbonization of the U.S. electricity sector: Are state energy policy portfolios the solution?

State governments have taken the lead on U.S. energy and climate policy. It is not yet clear, however, whether state energy policy portfolios can generate results in a similar magnitude or manner to their presumed carbon mitigation potential. This article seeks to address this lack of policy evidence and contribute empirical insights on the carbon mitigation effects of state energy portfolios within the U.S. electricity sector. Using a dynamic, long-term electricity dispatch model with U.S. power plant, utility, and transmission and distribution data between 2010 and 2030, this analysis builds a series of state-level policy portfolio scenarios and performs a comparative scenario analysis. Results reveal that state policy portfolios have modest to minimal carbon mitigation effects in the long run if surrounding states do not adopt similar portfolios as well. The difference in decarbonization potential between isolated state policies and larger, more coordinated policy efforts is due in large part to carbon leakage, which is the export of carbon intensive fossil fuel-based electricity across state lines. Results also confirm that a carbon price of $50/metric ton CO₂e can generate substantial carbon savings. Although both policy options – an energy policy portfolio or a carbon price – are effective at reducing carbon emissions in the present analysis, neither is as effective alone as when the two strategies are combined.     

Once bitten twice shy? Evidence from the U.S. banking industry during the crash of the energy market

We explore whether banks learn from past experience and modify their risk culture. Evaluating bank risk culture during the 2014 energy crash fueled by excessive bank lending, we find banks with a quick recovery after the 2007 subprime crisis find it unnecessary to change their risk culture, and banks that struggled to recover modify their risk culture following the subprime crisis. As a result, banks with poorer stock performance and a lower z-score during the subprime crisis that had a quick recovery are more likely to underperform during the energy crash. However, results show that while these banks do not modify their overall risk culture, they have learned from the subprime crisis by better positioning themselves for potential losses. In addition, larger banks and banks that did not receive TARP funding have not significantly changed their risk culture following the subprime crisis.     

Risk assessment of the economic impacts of climate change on the implementation of mandatory biodiesel blending programs: A fuzzy inoperability input–output modeling (IIM) approach

Many countries have implemented biofuel programs designed to address pressing concerns such as climate change, energy security and rural development. However, recent works suggest that biofuel resources may be at risk due to climate-induced disruptions such as changes in precipitation levels, pest infestation, or increased frequency of extreme weather events. The incidence of such disruptions not only affects biofuel producers, but also energy-dependent economic sectors, resulting in “ripple effects” that further increase economic losses. A variant of the inoperability input–output model (IIM) is used to assess the economic effects of implementing mandatory biodiesel blending programs in the Philippines. This approach is an extension of input–output analysis that quantifies risk through the dimensionless inoperability metric, whose value ranges from 0 to 1 depending on the degree of failure. Using the IIM, we estimate the resulting crop losses using the storm damage and pest infestation scenarios at the proposed blending rate of 5% currently being considered in the Philippines. Uncertainties within the modeling framework are captured using fuzzy numbers. Different ranking strategies are then evaluated to determine sector vulnerability using inoperability levels and economic losses. The effect of uncertainties is also taken into account through fuzzy ranking of the sectors.     

Development of a program of financial support on enhancing apartment houses maintenance in Korea—Focused on the U.S. and Japanese financial programs for housing maintenance in Korea

Although Korea has as large a housing stock as other developed countries hold, it has striven to focus on growth-oriented policies by creating new housing units rather than maintaining or rehabilitating existing ones, which has resulted in a few efforts to develop policies to maintain and rehabilitate existing apartment houses. In early 1990, there was a huge construction of 2 million units of apartment housing in the areas around Seoul, such as Bundang and Ilsan. At this point of time when it has been nearly 20 years since the enormous construction, loan programs that enable the existing multiple dwellings to be maintained for sustainable usage are expected to receive much attention.In this study, the loan programs of New York City and Tokyo Metropolis to maintain multiple dwellings were analyzed as a model for Korean loan programs to support the maintenance of apartment houses, and based on the results of analysis, the directions of organizing the domestic loan programs to maintenance apartment houses were presented. The results are summarized as follows:First, along with the housing finance policies executed previously in New York and Tokyo, the Korean environment to maintenance apartment houses and policies for maintenance were examined. Then, the necessity for and imperfection of the policies of Korea to support the maintenance of apartment houses were identified.Second, the targets, benefits, qualification for application and conditions for benefits of the loan programs of New York and Tokyo for maintaining multiple dwellings were researched in order to find the basic framework of the loan programs.Last, based on the framework of the loan programs of New York and Tokyo, the directions of loan programs and measures to foster housing funds for maintaining apartment houses for Korea were proposed.     

Towards a worldwide integrated market? New evidence on the dynamics of U.S., European and Asian natural gas prices

Has the integration of European, North American and Asian natural gas markets been fostered over the last few years by growing LNG export capacities and an increasing market share of spot transactions? This is the key question that this article sets out to answer. For this purpose, we develop bivariate error correction models with structural breaks and asymmetric responses among gas references prices, oil prices, and coal prices. We use daily prices of all reference prices spanning from January 12, 2004, to January 12, 2018, for the North American, Asian and European areas. We show that if European and U.S. gas prices are co-integrated when multiple breaks are allowed, their respective markets cannot be considered integrated. However, our results show that the degree of interdependence between European and American prices is increasing, whereas the degree of interdependence between gas and crude oil prices is decreasing. More surprisingly, we also highlight that reversions to long-term equilibria both between the Henry Hub (HH) and the National Balancing Point (NBP) and between the HH and the Japan Korean Marker (JKM) are highly asymmetric, a pattern that could be intuitively interpreted as the consequence of market arbitrage strategies by exporting countries in a context of oversupplied markets.     

Effects of a carbon price in the U.S. on economic sectors,resource use,and emissions: An input–output approach

Despite differences in their implementation, most carbon policies aim to have similar outcomes: effectively raising the price of carbon-intensive products relative to non-carbon-intensive products. While it is possible to predict the simple broad-scale economic impacts of raising the price of carbon-intensive products—the demand for non-carbon-intensive products will increase—understanding the economic and environmental impacts of carbon policies throughout the life cycle of both types of products is more difficult. Using the example of a carbon tax, this study proposes a methodology that integrates short-term policy-induced consumer demand changes into the input–output framework to analyze the environmental and economic repercussions of a policy. Environmental repercussions include the direct and the indirect impacts on emissions, materials flow in the economy, and the reliance on various ecosystem goods and services. The approach combines economic data with data about physical flow of fossil fuels between sectors, consumption of natural resources and emissions from each sector. It applies several input–output modeling equations sequentially and uses various levels of aggregation/disaggregation. It is illustrated with the data for the 2002 U.S. economy and physical flows. The framework provides insight into the short-term complex interactions between carbon price and its economic and environmental effects.     

Studies on Li–Mn–O spinel system (obtained from melt-impregnation method) as a cathode for 4 V lithium batteries: Part V. Enhancement of the elevated temperature performance of Li/LiMn2O4 cells

Stoichiometric LiMn₂O₄, metal-ion doped (Li⁺ and Co³⁺) spinels, Li_1+xMn_2−x−yM_yO₄, and fluorine substituted spinel, Li_1+xMn₂O_4−zF_z, are examined as cathodes in Li/organic electrolyte/Li_xMn₂O₄ cells containing various electrolytes at both room temperature and 50°C. The elevated temperature performance is improved with the metal-ion doped and fluorine substituted spinels in LiBF₄ base electrolyte solution.