The Latin America and Caribbean (LAC) region has a sizable infrastructure gap. Physical assets, maintenance, and service provision are inadequate and below average for a region at its level of development. The most promising way to close the service gap is to increase efficiency. Relying on data on more than 80 countries for 2000 and 2016, this paper innovates by 1) developing a single economic infrastructure index to compare countries; 2) presenting an efficiency analysis that assesses whether LAC countries have room for improvement in the provision of the quantity and quality of economic infrastructure; 3) proposing a novel peer-identification conceptual framework to identify which countries are the relevant benchmarks for the region; and 4) providing evidence on how sound governance, regulation, rule of law, and the lack of corruption are related to infrastructure efficiency at the country level.
•We develop a single economic infrastructure index to compare countries worldwide.•We assess whether LAC countries have room for improvement in the efficiency of the provision of infrastructure.•We propose a novel peer-identification conceptual framework to identify which countries are the relevant benchmarks.•We provide evidence on how sound governance, regulation, and the lack of corruption are related to infrastructure efficiency.
This study provides preliminary evaluation of South Korea's Renewable Energy Portfolio Standard (RPS) apropos capacity growth, technological innovation, cost impact, and market risk, compared to Feed-in Tariffs (FITs). Findings indicate that both effectively expand electricity generation from renewable energy sources (RES-Es). Early evidence suggests that the RPS appears to have further strengthened RES-Es' market growth, particularly biomass and solar PV. For most technologies, policy costs appear higher under the RPS than FITs, except for PV and fuel cells. Under the RPS, higher market risks are a major concern, particularly for smaller suppliers in the PV market, despite growing PV capacity.
•Evaluation of the Renewable Energy Portfolio Standard (RPS) and comparison with Feed-in Tariffs (FIT) in South Korea.•RPS strengthens market growth of renewable energy sources.•Fast growth of bio-mass and solar PV under the RPS.•High market risks under RPS for small and medium companies.
Recognizing the sustainable development potential of incentivizing domestic renewable energy generation, the Province of Ontario (Canada) presciently implemented the Green Energy Act in 2009. The feed-in tariff provisions of this Act provided guaranteed, premium price contracts for new renewable energy generators utilizing a variety of different technologies. Of particular relevance to this article, the Act also included a $0.015 per kW h price adder for those projects that included Aboriginal economic participation. As a result, this policy framework permitted the inclusion of Canada's historically marginalized indigenous peoples in decentralized, small-scale power generation. Although some Aboriginal groups have been able to take advantage of this novel energy supply policy framework, others have been hamstrung by looming caps on new supply procurement and, especially, a lack of transmission capacity. This article picks up on this latter point, contending that the Province should expand the applicability of their policy innovation and consider the adoption of a comparable ‘price adder’ for new transmission projects, given that an estimated $20 billion in new high voltage direct current transmission lines will need to be built over the next 20 years in Ontario. Much, if not all, of this transmission capacity will need to be built on the traditional territories of Aboriginal groups – many of which have unsettled land claims with the Canadian government – and it is crucial that this minority group is included in future energy-related development initiatives. The article concludes by offering suggestions for Aboriginal adders in other energy developments across Canada (and potentially in other international contexts that involve indigenous peoples), including planned transmission projects across the country, ongoing shale gas developments in British Columbia, and controversial oil sands extraction in northern Alberta. Further research into optimal methods for facilitating indigenous participation in energy developments is urged.
► The Province of Ontario (Canada) implemented the Green Energy Act in 2009. ► The Act included a $0.015 per kW h price adder for Aboriginal projects. ► However, this adder was only applicable to generation, curtailing Aboriginal involvement. ► This adder should be expanded to transmission. ► Further research into this critical Canadian energy policy topic is urged.
This study aims to contribute investigating the difficulties to reap the intended benefits from liberalization and regulatory reforms of network industries. This issue is tackled through the ‘theoretical lenses’ of new institutional economics, in particular by applying the Institutional Analysis and Development (IAD) framework. The study is a comparative analysis of liberalization and regulatory reforms of network industries within the same country context. In Italy, various reforms of network industries have been made and implemented during the 1990s and 2000s, especially in water, gas, electricity, telecommunications, railways, highways, local public transports, and urban solid waste. These reforms generally resulted in greater or lesser degrees of changes of regulatory institutions and industry structure, but in relatively modest competitive pressures on the whole. This analysis suggests that the difficulty to implement liberalization and regulatory reforms of network industries in Italy may be explained by various concurrent mechanisms, which have to do with the rent-seeking behavior of the actors of the industry’s community, the rise of barriers to entry against competitors, and the risk of collusive practices between regulators and regulated. This study suggests some tentative generalizations concerning the effectiveness of reforms intended to open up network industries to competitive pressures.
► I compare eight utility sectors within the same country context, Italy. ► Market opportunities abroad for the incumbents seem to facilitate liberalization. ► Lack of independence and power of regulators seems to hamper liberalization. ► Sub-national governments are another important source of resistance to liberalize. ► EU legislation is important but not pivotal to ensure effective liberalization.
Romania is a net exporter of electricity to the SE Europe region. Its performance of this role will increase in importance with (a) the completion of another nuclear generator and (b) improvement in capacity for international transmission. Romania has committed itself to an electricity restructuring plan that includes vertical separation, but plans remain uncertain regarding the horizontal restructuring of generation. Among the more important issues yet to be decided are (a) how hydro capacity will be allocated – it has more than 1/4 of capacity and enjoys low costs – and (b) how many thermal generation enterprises will be created, and with what assets. With more than 1/2 of the thermal capacity accounted for by CHP plants and with a winter demand peak for the foreseeable future, there is a real danger of inflexibility and a lack of competitiveness in a liberalized wholesale electricity market.
This paper considers the impact of tourism on airports efficiency. Using stochastic frontier analysis (SFA) methods, an input-oriented distance function was estimated for a sample of 35 Spanish airports over the 2009 to 2016 period. Air transport and tourism are highly connected. Results suggest that tourist-oriented airports may achieve higher efficiency levels than non-touristic ones. We also demonstrate a relationship between airline business models for tourist arrivals and airport efficiency. Airports with higher shares of "low-cost carrier" passenger traffic appear to perform more efficiently. By comparison, airports with higher shares of “charter passenger” traffic appear to perform less efficiently.
•This paper highlights the connection between Air transport and tourism.•Tourist oriented airports are expected to achieve more efficiency levels.•Increases in the number of “low-cost passengers” positively affects airport efficiency.•Increases in the number of “Charter passengers” negatively impact airport efficiency.
This study provides practitioners with an overview of previous research on public perceptions of drinking recycled water. Support for potable reuse varies widely across countries, but it is clear that the public is very responsive to context and information. Previous research has made limited use of the fact that (a) wastewater effluent is already present in water supplies across the world, and (b) awareness of this fact can make individuals ten times more likely to highly support potable reuse. Successful projects in Singapore and San Diego provide evidence that well-designed public relations campaigns can effectively manage community concerns.
•Reviews 150 papers and reports from a range of institutions and countries.•Documents large scale examples of unplanned potable reuse.•Tabulates the range of public acceptance survey findings by country.•Describes case studies on successful projects in San Diego and Singapore.•Provides a concise list of practical recommendations for practitioners.
Vietnam has abundant natural resources, but a high vulnerability to climate change. The Vietnamese government, therefore, has avddeclared its intention to encourage clean energy development. To achieve this, the cost of renewables needs to be competitive with fossil fuels. The purpose of this paper is to review past studies of the levelised international costs for various renewable energy resources and compare them to the costs of renewables in Vietnam. In Vietnam, there is evidence that the cost of non-hydro renewables has fallen in recent years, as they have internationally, making them more viable. In the Vietnamese case, however, the potential for growth in the use of non-hydro renewables is impeded by the low cost of hydropower, which constitutes a significant barrier to the introduction of non-hydro renewables in the short to medium terms.
•Vietnam has abundant natural resources, but a high vulnerability to climate change.•The Vietnamese Government, therefore, has declared its intention to encourage clean energy development.•To achieve this the cost of renewable energy needs to be competitive with fossil fuels.•The purpose of this paper is to review past studies and compare the levelled costs for renewable energy internationally and in Vietnam.•Despite there being potential for growth in the use of non-hydro renewables, the low cost of hydro-electricity will be a barrier.
The purpose of this article is to analyse the impact of residential electricity prices on energy intensity in Europe. The research is primarily based on a panel analysis for the European Union (EU-28) member states plus Norway over the period 1990–2015, to which a fixed-effect estimator was applied. The results suggest that the residential electricity price has one-third on energy intensity, taking into account the control variables. This implies that the level and structure of electricity prices should be considered as a potential energy policy tool for improving energy efficiency by reducing energy intensity. The results also suggest that energy intensity in Europe was favourably affected by the restructuring of industrial companies in transitional economies, the implementation of national programmes for improvement of energy efficiency, and the introduction of EU Emissions Trading Scheme.
•Analysis of the impact of residential electricity prices on energy intensity was performed.•Panel data for the EU-28 and Norway were analysed for the period 1990–2015.•Residential electricity price has a significant influence on energy intensity.•Structural characteristics and processes have a favourable effect on energy intensity.
After the economic recession in which Brazil was immersed during the years 2015 and 2016, signs of recovery are perceived through port activity. The objective of this research is to analyze the efficiency and productivity of 20 container terminals in Brazilian ports for the 2008 to 2017 period. The methodology used is stochastic frontier analysis and operational port indicators including variables such as the frequency of calls. The most significant findings obtained from the efficiency analysis reveal that private terminal operators are more efficient. The average technical efficiency level was 0.66 in 2008 and in the last year 0.51.
•The results clearly show the difference between efficiency and productivity.•The private operators analyzed (Tecon, Libra and APM) are determinants of efficiency in Brazil's terminals.•There has been a drop on technical efficiency levels on public terminals unlike what is recorded on private terminals.
This research aims to analyse the impact of feed-in tariffs, feed-in premiums, and capacity payments on electricity generation by source. It also assesses their consequences for interactions between electricity sources, while considering the market price. Monthly data for Spain, from January of 2010 to February of 2017, and the Autoregressive Distributed Lag approach were used. The results reveal that both feed-in tariffs and feed-in premiums appear to contribute negatively to electricity production from wind. Capacity payments appear to encourage fuel and natural gas producers to bid low and increase electricity production from renewable resources.
•This paper considers feed-in tariffs, feed-in premiums and capacity payments.•It uses monthly data and an autoregressive distributed lag approach.•The interactions between electricity sources are assessed, while studying the market price.•The feed-in system is found to contribute negatively to electricity generation from wind.•Capacity payments are found to decrease the uncertainty felt by controllable-source producers.
This study focuses on the effective strategic management of electricity in South Africa. We applied a content analysis to the existing literature. The findings point out that various strategic management failures and the lack of an integrated approach have been a major stumbling block to energy supply sustainability in the country. The review process followed a purposeful search, selection, and review of publications with the literature on the most critical concerns. This paper recommends an integrated strategic management framework as an effective approach to achieving electricity supply sustainability in South Africa.
With the increasing penetration of information and communication technologies (ICTs) in energy systems, traditional energy systems are being digitized. Advanced analysis of the energy production and consumption data and data-driven decision support can be combined to promote the formation and development of smart energy systems. Smart grids are a specific application of smart energy systems. Different electricity consumption patterns of residential users can be discovered and extracted by clustering analysis of the electricity consumption data collected by smart meters and other data acquisition terminals in a smart grid. This research explores daily electricity consumption patterns of low-voltage residential users in China. The service architecture of smart power use and the structure of electric energy data acquisition system of the State Grid Corporation of China (SGCC) are introduced and a process model for mining daily electricity consumption data is presented. The analysis is based on the fuzzy c-means (FCM) clustering method and a fuzzy cluster validity index (PBMF). A case study of Kunshan City, Jiangsu Province, China is presented, using the daily electricity consumption data of 1312 low-voltage users within a month.
U.S. colleges and universities have for some time joined the privatization movement where university functions and assets are turned over to private contractors. Here we present a case of a 50-year comprehensive energy concession agreement by The Ohio State University that generated an up-front payment exceeding a billion dollars. The agreement, with many principles and design practices borrowed directly from economic regulation of public utilities and against the backdrop of the literature on privatization and contract theory, provides an insightful case that informs these literature, as well as future privatization efforts by universities and other large-scale public organizations.
•Public utility regulatory theory and privatization theory are seldom integrated, and applications of both together are rare.•However, The Ohio State University's 50-year Comprehensive Energy Management Project (CEMP) is inspired by both.•The paper provides insights on the intersection of these theories and informs future similar privatization efforts.
This study evaluates four recent policies for China's power sector—mandatory renewable targets, green dispatch, carbon capture and sequestration development, and coal-fired generation efficiency improvements—and quantifies their energy and carbon dioxide (CO2) emissions reduction potential through 2050 using bottom-up energy modeling and scenario analysis. We find renewable targets and green dispatch have crucial interlinked impacts on energy and CO2 emissions that could change the shape and peak year of China's power-sector emissions outlook. Without either renewable targets or green dispatch, coal will likely continue dominating China's power mix and could delay the power-sector CO2 emissions peak to the late 2030s.
•China's electricity demand – the world's largest – growing at 13% average per year.•Quantified energy and CO2 reduction potential of 4 Chinese power policies thru 2050.•Modeled renewable targets, green dispatch, CCS and coal efficiency policies.•Crucial, interlinked impacts on power CO2 peak from renewables and green dispatch.•Without both, coal likely to dominate with limited CO2 impacts from other policies.
Uncertainties associated with wastewater treatment plants inflows can lead to either undersized or oversized facilities. Such uncertainties are attributed to the deviation of actual development patterns from plans. Accordingly, a minimum-flow guarantee is a suitable risk mitigation strategy. This research proposes a guarantee evaluation algorithm, and a new stochastic model using real-options theory, in order to simulate the wastewater inflow to the wastewater treatment plant. A wastewater treatment plant in Egypt is examined as a case study. The results enable the monetary evaluation of contractual clauses relating to plant expansion and minimum-flow guarantee.
•Proposing a flexible guarantee evaluation algorithm that implements the real options theory in wastewater treatment plants.•Providing the value of the guarantee under a mix of the contractual conditions.•Simulating the wastewater inflow to the wastewater treatment plants using stochastic model.•Providing insights to the best practice of providing Public Private Partnership contractual incentives.
This paper proposes a set of roles that organizations could play to support the evolution of the electricity distribution business. Role theory is used to describe responsibilities and collaboration patterns for the proposed role set. The study also covers a framework outlining the adoption of roles by third parties and the timeframe for their adoption. Our research shows that the role set responds to the challenges faced by stakeholders in electricity distribution systems. Results from the assessment suggest that most of these roles are expected to emerge by 2020.
One of the fundamental provisions of the European electricity directives is the so-called unbundling of structures and functions. Vertical disintegration with Full Unbundling (ownership unbundling or independent system operation) is considered an important step toward electricity market restructuring. While Full Unbundling (FU) models appear to be the most prevalent, several European countries adhered solely to less stringent forms of unbundling. Using a dataset of the 35 major electricity transmission utilities in Europe, this study provides an econometric analysis to understand the individual effect of regulation and ownership structure on the decision to adopt more stringent unbundling regimes. The overall results show that incentive-based or hybrid regulatory schemes and private ownership, are associated with a higher probability that a country will opt for FU.
•The use of hybrid and/or incentive-based regulatory schemes can be associated with higher probability of a country to opt for a more stringent unbundling regime.•The presence of State ownership can not be associated with lower probability of a country to opt for a more rigorous unbundling regime, thus the effect of ownership structure is quite moderate.•The use of hybrid and/or incentive-based regulatory schemes can be associated with higher probability of a country to opt for full unbundling.
In Germany and beyond, various capacity mechanisms are currently being discussed with a view to improving the security of electricity supply. One of these mechanisms is a strategic reserve that retains generation capacity for use in times of critical supply shortage. We argue that strategic reserves have specific advantages compared to other capacity mechanisms in the context of the European energy transition. To date, however, the debate on capacity mechanisms has largely been restricted to national contexts. Against this background, we discuss the feasibility and potential benefits of coordinated cross-border strategic reserves to safeguard electricity supply and aid the energy transition in Germany and neighboring countries at large. Setting aside strategic reserve capacity which is deployed only in the event of extreme supply shortages could improve the security of electricity supply without distorting the EU's internal electricity market. In addition, overall costs may decrease when reserve procurement and activation are coordinated among countries, particularly if combined with flow-based market coupling.
•We discuss capacity mechanisms and the specifics of strategic reserves.•Strategic reserves have specific advantages in the context of the energy transition.•Benefits arise from coordinating cross-border strategic reserves among countries.•The benefits of coordination improve under flow-based market coupling.