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Comparing and Combining Energy Saving Policies: Will Proposed Residential Sector Policies Meet French Official Targets?

Louis-Gaëtan Giraudet, Céline Guivarch, and Philippe Quirion

Year: 2011
Volume: Volume 32
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol32-SI1-12
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Abstract:
This paper assesses the impact of French policies for residential space-heating energy consumption, both enacted (tax credits for the purchase of energy efficient durables, soft loans for retrofitting actions, stringent building codes) and anticipated (carbon tax, retrofitting obligation). It uses a hybrid energy-economy model incorporating specific features of energy conservation, notably the rebound effect and some "barriers" to energy efficiency such as split incentives and imperfect information. Forward-looking simulations show that (i) stand-alone policies improve the energy efficiency of the building stock but, with the exception of carbon tax, generate a rebound effect; (ii) interactions among instruments are roughly additive; (iii) a combination of all policies fails to meet Government conservation targets.



Carbon Leakage and Competitiveness of Cement and Steel Industries Under the EU ETS: Much Ado About Nothing

Frédéric Branger, Philippe Quirion, Julien Chevallier

Year: 2016
Volume: Volume 37
Number: Number 3
DOI: 10.5547/01956574.37.3.fbra
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Abstract:
In a world of uneven climate policies, concerns about carbon leakage and competitiveness for heavy industries are the main arguments against the implementation of ambitious climate policies. In this paper we investigate a potential competitiveness-driven operational carbon leakage due to the European Union Emissions Trading scheme (EU ETS). We focus on two energy-intensive sectors, cement and steel, and phases I and II of the EU ETS. From a simple analytical model, we derive an equation linking net imports of cement and steel to local and foreign demand along with carbon price. We then econometrically estimate this relation both with ARIMA regression and Prais-Winsten estimation, finding that local and foreign demand are robust drivers of trade flows. We find no significant effect of the carbon price on net imports of steel and cement. We conclude that there is no evidence of carbon leakage in these sectors, at least in the short run.



How Sensitive are Optimal Fully Renewable Power Systems to Technology Cost Uncertainty?

Behrang Shirizadeh, Quentin Perrier, and Philippe Quirion

Year: 2022
Volume: Volume 43
Number: Number 1
DOI: 10.5547/01956574.43.1.bshi
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Abstract:
Many studies have demonstrated the feasibility of fully renewable power systems. Yet the future costs of key technologies are highly uncertain, and little is known about the robustness of a renewable power system to these uncertainties. To analyze it, we build 315 cost scenarios by varying the costs of key technologies and we model the optimal renewable power system for France, simultaneously optimizing investment and dispatch. We add to the literature by studying a consecutive 18-years weather period; by testing all combinations of technology costs rather than changing them one-at-a-time; and by calculating the regret from optimizing the energy mix on the basis of cost assumptions that do not materialize. Our results indicate that the cost of a 100% system is not that sensitive to uncertainty. Admittedly, the optimal energy mix is highly sensitive to cost assumptions: across our scenarios, the installed capacity in PV, onshore wind and power-to-gas varies by a factor of 5, batteries and offshore wind even more. However, in every scenario the total production and storage cost is similar to, or lower than the current cost. This indicates that renewable technologies will become by and large substitutable. Moreover, even if the energy mix is optimized based on cost assumptions which turn out to be wrong, the extra cost is low: 4% in average and less than 9% in 95% of the scenarios.





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