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Erwan Hermawan, Adiarso Adiarso, Sigit Setiadi, Dudi Hidayat

Strategy for the implementation of sustainable green fuels in Indonesia

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT

Fascicolo: 1 / 2023

Global climate change has triggered the implementation of energy transition programs in many countries where renewable fuels have received great attention. While Indonesia successfully im- plements biofuels-based crude palm oil (CPO) such as biodiesel (up to B30). The program proceeds towards implementing other green fuels (such as green diesel, gasoline, and bio jet fuel). However, the current price of CPO (as a raw material) is highly fluctuated depending on the global market mechanism and mostly more expensive than the price of fossil fuels. This situation leads to an unattractive business of green fuels. So, the government’s policies are strongly required to make more attractive businesses with enhanced competitiveness of green fuels. A qualitative approach was conducted by using forum group discussion to gain information about the current status of biofuel policy in Indonesia and its challenges. The quantitative method was conducted by calculat- ing the economic analysis of palm oil-based energy crops and processing plants. The concept of integrated palm energy plantation was proposed based on the result. It may be a kind of integrated business entity owned by the government which aims at producing CPO and the following green fuels. Economic analysis shows that from the plantation side, the selling price of Fruit Fresh Bunch (FFB) is USD 0.068/kg with an IRR of 12.6%. While in the CPO processing industry, using the FFB price of USD 0.082/kg obtained an IRR of 14.4%. This result shows promising results from the calculation, keeps the sustainability of raw material supply and enhances the competitiveness of green fuels.

Marco Vincenzi

Mapping the empirical relationship between environmental performance and social preferences: Evidence from macro data

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT

Fascicolo: 1 / 2023

This paper investigates the relationship between measures of environmental performance and of social preferences, thanks to the availability of a recently published dataset on global pref- erences. Using cross-sectional observations from 76 countries, this study finds evidence from macro data of a positive and statistically significant relationship between measures of proso- cial preferences, such as positive reciprocity, trust, and altruism, and environmental policy indicators in the categories of agriculture, forestry, and climate change after controlling for economic and geospatial factors. At the micro level, the results presented in this paper suggest a broader theory of collective action that is based on a behavioral approach to climate policy to mitigate motivational crowd out in settings of high reciprocity and trust. At the macro level, the results presented in this paper suggest a broader theory of climate clubs that includes pro- social preferences, such as positive reciprocity, trust, and altruism, as key cooperation mech- anisms in International Environmental Agreements.

Nicholas Valentini, Raed Jarrah, Chang-Ray Chen

Public perception of residential solar energy in Minnesota’s urban areas

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT

Fascicolo: 1 / 2023

With virtually no solid, liquid, or gas by products, and a stable and ever-present source, pho- tovoltaic (PV or solar) has the attractive benefits of reducing a home’s carbon footprint, harm- ful emission levels, and energy costs. With increasing concerns over energy cost and environ- mental harm, many homeowners are choosing to install solar panels. While the costs of solar panel installation and ownership have steadily declined over the last decade, there has been a concern that there has not been a comparable increase in solar panel implementation on resi- dential buildings. This study gathered and analyzed data from urban residents of Minnesota on their overall perception towards different aspects of solar energy and specific factors that are driving them away from solar. The main findings show that while solar is by far the most popular renewable energy generating method for homeowners, the perceived costs are an ob- stacle to adoption, as well as the perception that it would negatively impact the dwelling’s aesthetics.

Armagan Canan

Offshore wind energy policy paths: A comparative analysis of Denmark and Germany

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT

Fascicolo: 1 / 2023

Offshore wind energy is getting more attention from governments. Germany had the third rank among all countries in total offshore wind energy capacity at the end of 2022. Denmark, having less land area but a good location for offshore wind power, had the fourth rank. Both countries’ offshore wind energy sectors have significant roles globally. This paper aims to explore the development paths of offshore wind energy policy in Denmark and Germany and understand the developmental differences. The trends in offshore wind energy production and the evolving policies of the governments are analysed, by comparing the two countries. Most of the policies in Denmark and Germany resulted positively, and their policy paths were sim- ilar with some nuance. The research concludes that a governmental policy strategy and a flex- ible support mechanism are the keys to developing an innovative offshore wind energy sector.

Do impact studies guide policies, do policies direct impact studies, or are ideologies inspiring both? We analyse the proposed new European regulation on packaging and show that the expected benefits are much lower than those magnified by official declarations. Our debunk- ing of the Impact Assessment study, apart from the specific issues, raises concerns about how the European regulatory process is made. By doing so, he invites readers to reflect on the intricate relationship between impact studies, policy-making, and the ideological influences that may shape both.

Pedro Linares, Tomás Gómez San Román

An assessment of the Iberian Exception to control electricity prices

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT

Fascicolo: 1 / 2023

The Iberian Exception, the mechanism designed by the Spanish and Portuguese governments to address high electricity prices resulting from the gas price crisis in 2021 and 2022, has been met with controversy, both regarding its real impact on electricity prices and also its unin- tended consequences, such as increased (and subsidized) exports to France. In this paper we review the evidence on these impacts from different studies, concluding that the mechanism may have produced, depending on the assumptions, some reductions in electricity prices for Iberian consumers or none at all, but always at the expense of subsidies to French consumers and also increased rents for gas combined cycles, higher gas consumption, and larger CO2 emissions. Alternative mechanisms, such as a temporary single-buyer scheme, might have produced similar benefits without the downsides of the Exception.

A cura della Redazione

Recensioni

IL RISORGIMENTO

Fascicolo: 2 / 2023