ALBERT

Description: In Turkey, potential of renewable energy for both heating and cooling systems remains mostly untapped. Turkey’s energy demand is met to a great extent by imported energy sources which constitutes a substantial economic burden for Turkey. The main types of supporting financial mechanisms are limited to feed-in tariff for electricity production. The first aim of this paper is, to analyze current best practice policy design and harmonization of support schemes for renewable heating technologies in European countries. Secondly, the paper proposes a two steps model to develop support mechanisms for renewable heating technologies in Turkey. The paper analyzed the impacts of different policy harmonization options in the field of renewable energy heating and cooling, taking into account various determinants such as survey of current best-available RE policies in Europe, available national RE potential, data on different regional characteristics of Turkey, accompanying regulations, laws and implementation measures, support policies with regard to domestic RE technologies. Based on the bottom-up modeling, the scheme shows that a harmonized use of different inputs would generate a comprehensive policy instruments, such as subsides, regulations and local targets. Keywords: Renewable energy, Energy economics, Renewable heating technologies, Policy design, Global warming JEL Classifications: Q20; Q28; Q48; Q58

Description: The current paper intends to analyze both the current and the emerging trends of the transportation of energy resources in the regions of Middle East and Central Asia. The means of land and sea transportation are examined in the light of both the financial changes and the geopolitics. Oil and natural gas are separately assessed with reference to both the areas of production and consumption as well as the relevant methods of transportation. Furthermore, bilateral relations between energy consuming countries, energy producing countries and countries that act as hubs for the transportation of these resources are evaluated in order to determine their influence in the current and future transportation trends. Suez Canal, Straits of Hormuz and the Straits of Bosporus and Dardanelles feature special characteristics that extend from the commercial field to politics and environmental. Statistical data are supplied to further comprehend the emerging market trends in these areas. Keywords: Energy; Maritime Traffic, Pipelines; IMO; Energy Accounting JEL Classifications: F13; L95; N75

Description: Energy is one of the main factors that must be considered in the discussions of sustainable development. The basic dimensions of sustainability of energy production are environmentally, technically, economically and socially sustainable supply of energy resources that, in the long term, is reliable, adequate and affordable. Renewable, clean and cost effective energy sources are preferred but unfortunately no one of the alternative energy sources can meet these demands solely. So, the problem of determining the sustainable energy planning is a strategic tool for the development. In this dissertation, the aim of this study is to determine the best renewable energy technology for sustainable energy planning. For this aim, we used AHP methodology, which is a multi-criteria decision making (MDCM) method. In the proposed method, the weights of the selection criteria are determined by pairwise comparison matrices of the AHP. Results indicate that wind energy is the most appropriate renewable energy option in this study. Future researches could be conducted based on different multi-criteria decision-making techniques such as ANP, fuzzy ELECTRE or fuzzy TOPSIS for comparative purposes. Keywords: Renewable Energy; Sustainable Energy Planning; AHP; Multi-Criteria Decision Making JEL Classifications: Q0; Q2; Q4

Description: This paper examines the relationship between economic growth and carbon dioxide (CO 2 ) emissions, the dominant contributor to the greenhouse effect, in Turkey. For time series data for the period 1980-2009 taking into account the Environmental Kuznets Curve (EKC) was modeling. The results show that there are N-shaped relationship between CO 2 emissions and economic growth, so these findings do not support EKC hypothesis with inverted-U shaped curve. At this point, because of the presence of a cubic polynomial, regression spline method is used as a different approach and a new model has been proposed. The model gives better results according to different model selection criteria. Keywords: Environmental Kuznets curve; CO 2 emissions; regression spline; thin plate regression spline JEL Classifications: C14; C22; Q53; Q56

Description: This work presents an empirical study of energy demand, in which demand for energy is expressed as a function of various factors, such as income, price, economic structure, and CO 2 emission. Parameter values are estimated econometrically, using a panel data approach of 16 developing countries over 30-years period. In general, the empirical results of this study confirm the majority of the findings in energy demand analysis where income and price have shown to be important determinants in energy demand. Moreover, economic structure and also CO 2 emission appear to exert significant impact on energy demand. Short- and long-run elasticities of demand are estimated and some policy suggestions are given to improve energy saving and green energy consumption in developing countries. Keywords: Energy demand; panel data JEL Classifications:   C23; Q31; Q41

Description: Energy’s significance is accepted by everyone. However, its definition is different for every academic discipline. For scientists, energy is an indirectly observed quantity which is sustained for physical activity. In social sciences, energy has various definitions. Political science energy can be discussed under political authority and power, from the international relations point of view energy is a serious issue for security and nations. Within a legal framework, energy has different definitions for every legal area and legal document. Definitions of energy in legal documents play key roles in politics and international relations. To illustrate the importance of legal definitions, this paper will attempt to define energy under the fundamental regulations of some main international institutions: the United Nations, the Energy Charter Treaty, the World Trade Organization and the International Energy Agency. Keywords: Definition of Energy; International Organizations related with energy  JEL Classifications: Q4; K33

Description: Recently, Turkey is attempting to improve its energy efficiency policies. As the demand of energy is increasing in Turkey, improving energy efficiency can be considered as an efficient way to achieve its sustainable development goals. In this respect, government policies and program strategies must be designed to overcome persistent market barriers against energy efficient household appliances. Label and standard programs can be used as a strategy to improve energy efficient products. With this issue in mind, the aim of this paper is to provide a broad overview of appliance efficiency standards and labeling programs in Turkey. The paper consists of five sections: After a brief introduction on the subject, the second section deals with the market transformation for energy efficient products. In the third section, legal issues related to energy efficiency will be discussed. Then in the next section, current situation and challenges related to labeling appliances will be analyzed and the paper concludes with a brief summary. Keywords:  Electrical consumption; energy efficiency; market transformation; energy labelling JEL Classifications: Q01; Q43; Q48

Description: A large number of studies on the relationship between financial indicators and macroeconomic variables such as economic growth and energy as a result of the increase in the energy prices and their volatility in recent years have emerged. The aim of this study, apart from the other studies in the area, is to investigate the interaction between energy consumption and stock exchange index in Turkey. Ceteris paribus, economic growth with the increase of energy consumption, the growth of the economy impact will also affect the stock exchange which is accepted as the barometer of the economy (vice versa). The interaction between the BIST National 100 index, BIST National Industrial Index and energy consumption is investigated by Johansen Cointegration Test, Granger Causality Test tests based on VAR for the period of 1995-2011. Unidirectional causality relationship is detected from BIST 100 Index and BIST Industrial Index towards energy consumption. Keywords:   Energy Consumption; Stock Market; BIST 100 Index; Cointegration; Causality JEL Classifications: E44; O4; Q4

Description: Contemporary environmental policy is marked by an emphasis on the fight against climate change. Technological improvements for energy efficiency and transition to a low carbon economy are seen as principal environmental policy measures. Has this been the case 40 years ago when modern environmental policy took its first leap? Or has it been the result of a particular twist in the course of the development of environmental policy? Taking sides with the latter approach, it is argued that the intertwining of environmental and energy policy is attributable to ecological modernization that has become the dominant interpretation of sustainable development. Accordingly, this article focuses on ecological modernization theory and policy strategy in an aim to capture this turn. Empirical evidence will be provided through an analysis of European Union (EU) environmental policy. It will be demonstrated how EU environmental policy takes its direction from ecological modernization and how energy efficiency lies at its core. Keywords: sustainable development; ecological modernization; fight against climate change JEL Classifications: Q01; Q54; Q56

Description: This paper assesses the relationship among oil prices, real output growth and employment in Turkey over the period 2000:1-2012:4 by using vector error correction methodology. Empirical findings indicate a long-run relationship among the variables. Besides, short-run causality results based on vector error correction model provide an evidence of bi-directional causality linkage between oil prices and output, where uni-directional causality from oil prices and output to employment is established. The long-run causality analysis on the other hand shows that (i) the oil prices and real output do not cause employment, (ii) employment and real output do not cause oil prices, and however (iii) the oil price and employment cause output. Keywords: Oil price; output; employment; Turkish economy JEL Classifications: E24; Q43

Description: Turkish Energy Regulatory Agency (EMRA) announced in September 2011 that biofuel blending will be mandatory starting from 2013 and 2014 for bioethanol (2%) and biodiesel (1%) respectively. The blending ratio will be increased to 3 percent for bioethanol in 2014 and biodiesel in 2016. This study aims to evaluate the net trade impacts of the blending regulation. In Turkey, sugar beet based ethanol production seems feasible and sustainable. Mandatory blending ratio will increase the capacity utilization of existing plants. Bioethanol blending (2%) will reduce oil imports by 255.2 million US Dollar in 2013. Contribution impact of bioethanol production will be much greater by 2016. But, since Turkey is already a net importer of oilseeds biodiesel, blending implementation will deteriorate the foreign trade balance and 2 percent blending will bring around 488.5 million US Dollar extra import increase in 2015. Therefore, net trade impact of mandatory blending is expected to be negative.  Keywords : Sustainable biofuel production; biofuel policy impact; energy policy JEL Classifications: Q16; Q4

Description: It can be said that the global crisis in the world in 2008 deeply affected all states and changed almost all balances. Such crises experienced in the world during this period and possible same crises in the future are important. However, such crises have monetary solutions although they have resulted in serious destruction of economic and social structures of the countries. Nevertheless, if the necessary measures are not taken, a more serious crisis will arise in a future not too far from now. The difference of this crisis that will arise compared to the former ones is that there won’t be a monetary solution for it. Continuous growth in the increase of energy consumption in the world is an inevitable problem. This situation makes many countries around the world face the problem of energy independence and energy security. In this study, the classification and characteristics of energy sources will be discussed first. Then, energy independence and security problem created by termination of energy sources and their being under control of specific countries will be examined by comparative analysis method based on statistical data. Keywords: Energy Security; Oil Problem; Energy Crisis; Real Crisis; Energy Policy JEL Classifications: Q42; Q43; Q48

Description: This study is the first employing annual data for Turkey from 1970 to 2010 to examine the short and long-run causal relationship between economic growth, electricity generation, exports and prices in a multivariate model. According to the bounds test results, when electricity generation and economic growth are the dependent variable there are two cointegrating relationships. According to the results, long-run equilibrium relationship and long-term causality are found between economic growth, electricity generation, export and price. Hence, in the short-run, there are bi-directional causalities between economic growth- electricity generation, economic growth-export and electricity generation-export with feedback effect. Keywords: Electricity generation; economic growth; bounds testing; Granger causality; Turkey. JEL Classifications: O4; Q4

Description: This paper examines the development of oil prices and identifies the main causes of their development in the last three decades. Of course there are many factors influencing the oil prices, predictable market factors (such as demand and supply) and unpredictable factors (such as political and social turmoil). Therefore, this paper will empirically try to identifying the main causes of movement of the oil prices. This paper also has an ambition to test relation between crude oil and natural gas prices, as substitutes, and the role of decline of natural gas prices in stabilization or destabilization the crude oil market. We have had used in this paper qualitative and quantitative methods such as regression model, Granger causality and structural models. The main findings we have gotten are that the US dollar exchange rate has a significant role in the development of oil prices. We think that the decline in natural gas (as a substitute) prices in the last two years has a slightly impact on stabilization of the oil prices. Keywords: Crude oil prices; natural gas prices; US dollar exchange rate; granger causality; structural model JEL Classifications: C32; Q41; Q43

Description: This study aims to build up a conceptual framework for energy diplomacy together with examining the development of this concept in world politics. By using these, it attempts to analyse Turkey’s energy diplomacy practice. The study argues that energy diplomacy is an amalgamation of diplomatic methods for utilizing energy (reserves or transfer routes) for maximizing national energy interests in bilateral, multilateral, regional and global relations of energy demand and supply. In this respect, the variables for the formation and the implementation of energy diplomacy are analysed in worldwide historical basis and then with a particular focus on Turkey. Finally, the research focuses on the conditions that Turkey can utilize its energy diplomacy for collaboration, cooperation, and stability rather than struggle, confrontation or conflict. Keywords: Energy diplomacy; energy politics; energy competition JEL Classifications: F53; F55; N40; Q48 

Description: TANAP natural gas which was initiated by Azerbaijan’s SOCAR and Turkey's BOTAŞ has altered the dynamics and strategies in the region. TANAP project not only formed new competition picture from Nabucco versus South Stream to TANAP versus South Stream but also triggered the competition between Russia and Central Asia in terms of pipeline strategies. Kazakhstan, Turkmenistan, and Uzbekistan are landlocked countries in the east Caspian region and Azerbaijan is the only post-Soviet state that had succeeded to reach world markets by non-Russian routes. In this sense if TANAP would establish until 2018-2019, it would have an impact as in the case of Baku-Tbilisi-Ceyhan oil pipeline which was considered as the “Contract of the Century” in the 1990s. In this paper, it is aimed to analyze how TANAP will affect upon Russian foreign energy policy strategy upon Central Asian states and Azerbaijan as well as emphasizing on the risks and opportunities of the project. Keywords: Energy; Natural Gas JEL Classifications: Q49; Q48; Q4

Description: Energy is a crucial input to promote socioeconomic development. In Bangladesh, about 96 million people (59%) do not have access to electricity and 143 million people (88%) still depend on biomass for cooking. The urban poor living in slum areas with lack of access to clean and modern sources of energy have not been addressed comprehensively. The main objective of this study is to identify the barriers faced by the urban poor in the slum areas of Dhaka in accessing different fuels and provide specific recommendations to overcome the barriers to enable energy access. The study is mainly based on field survey covering 185 households of the four major slum areas of Dhaka, literature review, and stakeholder interviews. Many barriers have been identified through this research where urban poor face problems in accessing legal energy services due to illegal settlement, lack of explicit policy on energy and housing, lack of dedicated institution, the pervasive role of Mastaans, poor infrastructure and lack of monitoring and evaluating system. Barriers specific recommendations are also suggested based on the experiences from the field visit and the best practices outside Bangladesh are also identified. Keywords: Urban poor; Energy access; Energy policy; Slums; Dhaka JEL Classifications: C83; G28; R28

Description: European Union adapted the policy of reducing its carbon footprint and embarked on the journey to shift to renewable energy sources in the early 1990s. The whole process started with implementations of binding rules that set up indicative targets for the EU Member States. However, this process had to go hand in hand with high energy costs charged to the consumers. This paper defines various types of renewable sources in the EU and analyses European legislation on renewable energy sources. In addition, it deals with the current situation regarding the energy policies in the European Union and outlines its main criticisms and prospects. The results and conclusions might be of some value for EU main energy providers as well as for the EU partners in the world.   Keywords: Energy economics; renewable energy; energy providers; economic forecasting; EU JEL Classifications:   F40; F50; Q20; Q47

Description: The integration of crude oil spot prices, from different geographic regions is examined using the residual-based cointegration test of Gregory and Hansen (1996), which allows for endogenously determined structural breaks. While traditionally, the focus has been on three global benchmark crudes (WTI, Brent and Dubai Fateh), herein the relationship among secondary, regional blends (Edmonton Par, Western Canadian Select, Bonny Light and Mexican Maya) is examined with implications for the ‘global pool’ hypothesis. Monthly data is examined, with particular emphasis placed on the Canadian perspective. The results indicate that the regional crudes, of similar and differing grades, are cointegrated with a structural break. Events with a direct impact on the crude market are linked to the structural breaks. Indirect impacts are attributed to events which appear to have affected crude oil prices via a decrease in demand, such as the economic uncertainty leading to and during the ‘Great Recession’.   Keywords: Spot prices; cointegration; structural breaks JEL Classifications: C22; Q4

Description: This study analysed the trend of energy consumption, real output, financial development, monetary policy rate and consumer prices and also examined the long-run relationship and direction of causality between energy consumption and economic growth with consideration for financial development, monetary policy rate and consumer prices. These were with a view to examining the relationship between energy consumption and economic growth in Nigeria during the period 1971-2010. The result showed that all the variables used in the study are characterized by a positive trend. Also, it was found that variables followed a I(1) process. The study provides weak evidence in support of long-run relationship between energy consumption and economic growth. The study further revealed that energy consumption among other variables positively and significantly influenced output growth in the short-run. Using the first three lags, we found no causal evidence one way or two way between energy consumption and economic growth. The study concluded that energy consumption only has short-run positive impact on the economy but has not enhanced long-run economic growth in Nigeria during the period under investigation. Keywords: Error correction model; aggregated analysis; energy consumption; financial development; monetary policy rate JEL Classifications: O13; O47; Q43

Description: This paper aims to examine the effects of oil price shocks on economic sectors in Malaysia. A unit root test was conducted, in which data were shown to be non-stationary in all levels, and stationary in the first difference for all variables. The co-integration model was applied, and the results indicated that one co-integrating equation exists, suggesting the long-term effects of oil prices on the agriculture, construction, manufacturing, and transportation sectors. Finally, Grange causality test was performed, and the results implied that in Malaysia, oil price shocks can affect agriculture, similar to Hanson et al. (2010). Oil price instability also influences the performance of the agriculture sector, contrary to the results of Alper and Torul (2009). In addition, the construction sector was found to be dependent on oil prices. Therefore, the current study has an important implication for the Malaysian government in formulating policies on oil prices. The Malaysian government needs to control the price to ensure that unstable price will not harm the agriculture, manufacturing, and construction sectors. Keywords: oil price; agricultural, manufacturing and construction sectors. JEL Classifications: E31; E52; E62

Description: Using monthly data, this paper studies the cointegration between the real price of oil and the real effective exchange rate of US dollar allowing for structural breaks. Contrary to the conclusion from previous literature, this paper finds that the cointegration between the oil price and the value of US dollar does not significantly exist unless the effects of two structural breaks in the past, November 1986 and February 2005, are controlled for.   Keywords: Oil price; Exchange rate; Cointegration JEL Classifications: C32; F31; Q43

Description: This paper empirically examines the validity of the resource curse in Europe and it is the first time renewable energy is inserted in this research context. The study uses panel data with a variety of explanatory variable proxies for investment, openness, rule of law, resource endowments and human capital. It employs a single equation fixed effects model with heteroskedasticity robust covariance and a simultaneous two equation model where renewable energy enters the structural equation as an endogenous variable. The resource curse is confirmed only for crude oil and resource productivity in the single equation model while renewable energy has a positive relationship to growth. In the simultaneous two equation model, countries with high oil production and emissions also have a higher production of renewable energies.   Keywords: Natural resource curse; economic growth, renewable energy; Europe; fixed effects model   JEL Classifications; O52; P28; P48; P52; Q20

Description: This study examines whether the energy consumption for 15 members of the Middle Eastern & North African (MENA) countries is a stationary process over 1971-2010 period. Annual energy consumption   data for Algeria, Bahrain, Egypt, Iran, Israel, Jordan, Lebanon, Libya, Morocco, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Turkey, is analyzed using the Lagrange Multiplier (LM) unit root test, in which structural breaks in level and/or trend are endogenously determined. The results of the LM test with two breaks showed that the energy consumption per capita in 8 MENA countries is a stationary process. This study suggests that it is possible to design consistent energy policies based on econometric models and forecasts of energy consumption in those 8 MENA countries . Keywords: Energy Consumption; Unit Root; LM test; MENA JEL Classifications: E21; Q43

Description: The aim of this paper is to examine the direction of causality between real GDP on the one hand and final energy and coal consumption on the other in India, for the period from 1970 to 2011. The methodology adopted is the non-parametric bootstrap procedure, which is used to construct the critical values for the hypothesis of causality. The results of the bootstrap tests show that for total energy consumption, there exists no causal relationship in either direction with GDP of India. However, if coal consumption is considered, we find evidence in support of unidirectional causality running from coal consumption to GDP. This clearly has important implications for the Indian economy. The most important implication is that curbing coal consumption in order to reduce carbon emissions would in turn have a limiting effect on economic growth. Our analysis contributes to the literature in three distinct ways. First, this is the first paper to use the bootstrap method to examine the growth-energy connection for the Indian economy. Second, we analyze data for the time period 1970 to 2011, thereby utilizing recently available data that has not been used by others. Finally, in contrast to the recently done studies, we adopt a disaggregated approach for the analysis of the growth-energy nexus by considering not only aggregate energy consumption, but coal consumption as well. Keywords: Non-parametric Bootstrap Simulations; energy consumption; coal consumption; Granger causality JEL Classifications: C15; C32; Q43

Description: This paper provides an information technology perspective of energy that can help explain and promote more environmentally friendly energy sources. Following the equation energy equals mass times velocity squared (E = m * v 2 ),   a source 10 times more massive  will produce 10 times more energy, but a source 10 times faster will produce 100 times more energy. Since chemical sources such as oil combustion are about ten times faster  than mechanical sources such as waterfalls and winds, getting the same quantity of energy out of  wind would require 10 times more mass (steel and concrete for wind towers),  than getting it out of  burning oil (CO2 and oil plants materials). A nuclear source is one million times faster than chemical, thus its mass requirement is negligible but technology (mainly information technology) is needed to safely drive its speed allowing us to substitute mass -i.e. future debris- with information. Keywords: energy, environment, information technology, nuclear, quadratic contribution, energy technology, clean energy, matter minimization JEL Classifications : H00; O10; O33; Q29; Q39; Q42; Q43; Q48

Description: This paper empirically examines the relation between energy consumption volatility and unpredictable variations in real gross domestic product (GDP) in the UK. Estimating the Markov switching ARCH model we find a significant regime switching in the behavior of both energy consumption and GDP volatility. The results from the Markov regime-switching model show that the variability of energy consumption has a significant role to play in determining the behavior of GDP volatilities. Moreover, the results suggest that the impacts of unpredictable variations in energy consumption on GDP volatility are asymmetric, depending on the intensity of volatility. In particular, we find that while there is no significant contemporaneous relationship between energy consumption volatility and GDP volatility in the first (low-volatility) regime, GDP volatility is significantly positively related to the volatility of energy utilization in the second (high-volatility) regime. Keywords: energy consumption volatility; GDP volatility; asymmetry; Markov switching ARCH models; Markov regime switching models JEL Classifications: C22; E32

Description: This paper is a comparative review of the renewable energy performance of Turkey and Greece. Both neighboring countries sharing the same energy hub with a large potential for renewable energy production. Albeit having strikingly similar energy objectives and hindrances, they are currently challenged by different contexts. Turkey, although not a European Union member, it spends efforts to tacitly comply with European Union legislation and sets ambitious renewable energy targets. Greece on the other hand is afflicted by an economic crisis that threatens to retard its renewable energy developments unless Greece uses renewable energy sources as a means to escape the crisis. This paper is useful for potential renewable energy investors in the area of Greece and Turkey. Keywords: Greece; renewable energy sources; Turkey JEL Classifications: O13; O57; Q28

Description: This paper examines welfare effects of energy reform particularly petroleum products pricing reform in Nigeria. The data for 5000 households were collected to estimate a demand system for PMS, AGO and DPK. The survey contains information on the occupation and income of the household members, as well as on household expenditure and consumption as well as on a wide range of demographic and socio-economic characteristics. This study use marginal social cost approach to evaluate equity and efficiency implications of petroleum products subsidy reform in Nigeria. The reduction or removal of subsidy on PMS will save largest amount from government budget. When there is distribution concern, the marginal social cost of reducing subsidies on AGO is lowest supporting the  reform  that have been carried out by removing subsidies on AGO. However, marginal social cost for all petroleum products are extremely low suggesting reduction of subsidies on all petroleum products in Nigeria. These findings revealed that equity argument for continue subsidization of household kerosene can no longer be justified since marginal social cost is low. The reality is that apart from the NNPC outlets, there is no other outlet anywhere in Nigeria where kerosene is sold at the subsidised price. Keywords : petroleum products; subsidy reform; household’s welfare; expenditure elasticities; marginal social cost approach; Nigeria JEL Classifications: D12; Q4; Q41

Description: The purpose of this study is to identify and quantify the effect of endogenous and exogenous economic factors on electricity demand in Ghana. The Structural Time Series Model is employed due to its ability to capture exogenous non-economic variables. The findings reveal that education has significant effect on electricity consumption in both the short and the long run. Education has inverse relationship with electricity consumption implying that the more consumers are educated, the less electricity they consume. The study also reveals that price changes have less impact on electricity consumption in the short run and that efficiency in electricity consumption has improved since 1971 and will continue for the next twenty years.  The study recommends that more public education should be carried out to enhance energy conservation and also, realistic prices should be charge for electricity consumption to allow private investment into the sector. Keywords: e lectricity consumption; efficiency; economic factors JEL Classifications:  Q43; Q49; O40

Description: Foreign direct investment is new phenomenon to Iraq, a post conflict country with abundance of natural resources. With dominant state-controlled public sector, attracting foreign investment is an added challenge to an economy devastated by years of wars. A qualitative case study was conducted to assess determinants of foreign direct investment in Iraq’s energy sector. Data was collected from interviews with business and government subject matter experts, and a review of publically available documents. Lack of security, political instability, corruption, and inadequate government policies towards foreign direct investment as symptoms found and typically shared by other post-conflict countries. The persistence of violence was not seen as a deterrent; however, foreign direct investment activity in the energy sector was virtually limited to the semi-autonomous region of Kurdistan. Investments were either wholly-owned or joint-venture enterprises. Implications to other post conflict countries, using Kuwait and Nigeria as illustrative examples, are presented and recommendations made. Keywords: Foreign direct investment; Iraq; post-conflict country; energy JEL Classifications: F21; F23; O53; P28 

Description: Energy plays an important role in economic development worldwide. The increase of energy consumption showed that CO2 emissions in the atmosphere have increased dramatically, and these lead many scientists to push governments of the developing countries to take action for the formulation of environmental policies. Many studies have attempted to look for the direction of causality between energy consumption (EC), economic growth (GDP) and CO2 emissions mainly on developing countries. This paper, therefore, applies the panel unit root tests, panel cointegration methods and panel causality test to investigate the relationship between energy consumption (EC),  economic growth (GDP)  and CO2 emissions for  three countries of Southern Europe (Greece, Spain, and Portugal) covering the annual period 1960-2009. The FMOLS and DOLS are then used to estimate the long run relationship between the variables. The findings of this study reveal that there is a short-run bilateral causal link between the examined variables. However, in the long run, there is a unidirectional causality running from CO2 emissions to energy consumption (EC), and economic growth (GDP) and a bilateral causality between energy consumption and economic growth. This indicates that energy is a force for economic growth both in short and long run as it is driven from economic growth. Moreover, to face the heterogeneity on the three countries of Southern Europe we use the FMOLS and DOLS estimation methods. Keywords: Energy consumption, Panel cointegration, FMOLS and DOLS Methods. JEL Classification: C33; O13; Q43

Description: This paper explores the causal relationship between energy, emissions and income in Canada for the period 1960- 2005. This study explores these relationships using the Toda Yamamoto approach in a multivariate framework including labour and capital as auxiliary variables. We also test the hypothesis of indirect or multi-horizon Granger non-causality between these variables, since causal effects may occur more than one-period-ahead, as is assumed by the standard Granger non-causality test. We find that there is bi-directional direct causality between income and energy use in Canada, and no other channels of causality between the three variables. However, indirect Granger non-causality testing shows that there is bi-directional causality between all variables in the system. This result is contrary to other results in the literature, and has different implications for energy and environmental policy. Keywords : Energy use; Greenhouse gas emissions; Multi-horizon Granger causality; Canada. JEL Classifications : C12; C22; Q48; Q53

Description: This paper examines the role of oil prices, credit, financial and commercial linkages in the propagation of industrial market crises during the period 2004-2012. Using VAR-MGARCH-DCC model regressions on seven markets finds that credit linkage played a significant role in the subprime, financial and global crises. Our results also show that the European debt crisis has already spread like a crisis from oil prices to Ireland and Portugal, and other countries are now at risk: Spain is a probable candidate for financial crisis. Keywords: Oil price; Contagion; Crisis; VAR-MGARCH-DCC. JEL Classifications: C32; C52

Description: The theoretical framework which we are developing refers essentially to Hubbert model in order to determine the peak oil in Tunisia and the exploitation speed of the remaining resources, while referring to the data supplied by the Directorate General for Energy. The study focuses on the comparison between the results of the several econometric adjustment techniques (linear, non-linear techniques, linear techniques with structural change and the non-parametric methods) applied to the Tunisian oil production during the period going from 1966 to 2011. The prospective study through the econometric models has allowed us to determine the two dates scaring all energy executives, namely the peak which took place in the middle of the eighties and the finiteness of resources planned in 2028. The obtained results have shown that it remains 495 million barrels to be produced in Tunisia, bearing in mind that the data supplied by the authorities announces the figure of 420 million barrels of the remaining proved reserve in the Tunisian underground. Thereby, we have noticed a strong link between the physical models for reservoir flows and the empirical specifications based on the decline curves. Keywords : Oil production; non-linear techniques; non-parametric methods; peak oil. JEL Classifications: C51; Q41; Q47

Description: The aim of this study is to analyze the behavior of gross domestic product (GDP) compared to electricity consumption in Brazil to estimate the curve of deficit marginal cost. The deficit cost is used as exogenous parameter in the chain of models for planning the operation and expansion of a hydrothermal system as part of the total cost of operation. The results show a cointegration relationship between GDP and electricity consumption; therefore, there is a long-term equilibrium relationship between GDP and electricity consumption. This relationship is used to estimate the curve of deficit marginal cost. The possible short-term imbalance can be mitigated using the vector error correction model (VEC). Keywords: Energy deficit; Cointegration; Rationing; Energy planning JEL Classifications: Q40; Q43; Q47; Q48

Description: This study investigates the wind and solar electricity generation availability and potentiality for residential buildings in Armidale NSW, Australia. The main purpose of this study is to design an appropriate wind-PV hybrid system to cover the electricity consumption of typical residential buildings of various occupancy rates and relevant various average electrical daily consumption. In order to do achieve that, monthly average solar irradiance monthly average wind speed historical data observed at weather station belongs to the Australian bureau of meteorology in Armidale town over a fourteen years period from 1997–2010. Simulation of solar photovoltaic panels and wind turbines were conducted to obtain the optimal hybrid system sizing and best efficient with lowest cost. Correlations between the solar and wind power data were carried out on an hourly, daily, and monthly basis. It is shown that the hybrid system can be applied for the efficient and economic utilization of wind and solar renewable energy sources. Keywords: Hybrid system; wind energy; photovoltaic energy; Armidale NSW; renewable energy; system optimisation JEL Classifications: C1; C2; C3; C6; C9

Description: In this study, a general overview of energy and renewable energy sources available in Australia was introduced, household’s electricity situation in Australia was presented, and focus wind energy was conducted. A theoretical methodology for quantification and costing of selected micro wind turbines was introduced. This methodology was applied to Armidale city, New South Wales (NSW), Australia as a case study. The methodology involved utilisation of spread sheet application and HOMER software. Such methodology dealt with hourly household electric load in Armidale and hourly wind speed in Armidale as inputs and provided hourly power outputs from selected micro wind turbine as an output. As well, a sample of payback period calculations for the said selected wind turbines is calculated versus various wind speeds. This methodology can be applied to any other cities or towns. Undoubtedly, the ability of quantifying micro electricity generation resultant from micro wind turbines for a specific city or town and evaluating the share of households’ electric consumption at that city or town associated with the relevant payback periods opens the gate for further studies of feasibility and visibility of micro wind turbines. Keywords: Renewable energy in Australia; micro wind turbines; micro electricity generation; Household electricity consumption; Armidale city. JEL Classifications: C1; C2; C3; C6; C9

Description: This study examined household energy use and its determinants in Nigeria based on the 2004 Nigeria Living Standard Survey data obtained from the National Bureau of Statistics. The study utilised descriptive statistics and multinomial logit models. Most households in Nigeria use firewood as cooking fuel and kerosene for lighting. This shows that most Nigerian households do not have adequate access to environmentally-friendly modern energy sources. Energy use in Nigeria supports fuel stacking rather than energy ladder hypothesis. Among the factors that significantly influence household energy use for cooking are educational levels of father and mother, per capita expenditure and household size. Adequate measures should be taken to ensure that most households in Nigeria have access to modern environmentally-friendly sources of energy. This will pave the way for sustainable development in the country. The results of this study should serve as an invaluable guide to the Nigerian government and policymakers. Keywords: Energy use; Multinomial logit; Poverty; Determinants; Nigeria. JEL Classifications: I32; Q40; R20

Description: The main purpose of this paper is to investigate the causality relationship between energy consumption and economic growth in four low-income countries in Sub-Saharan Africa using the econometrics in time-series methods. Along the estimation process, I use the annual data on energy consumption and real GDP per capita over the years of 1971 and 2011. The results of the ADF unit root test show that the time series are not stationary for all countries at levels, but log of economic growth in Benin and Congo become stationary after taking the differences of the data, and log of energy consumption become stationary for all countries and LGR in Kenya and Zimbabwe are found to be stationary after taking the second differences of the time-series. The findings of the Johansen co-integration test demonstrate that the variables LEC and LGR are not co-integrated for the cases of Kenya and Zimbabwe, so no long-run relationship between the variables arises in any country. The Granger causality test indicates that there is a unidirectional causality running from energy use to economic growth in Kenya and no causality linkage between EC and GR in Benin, Congo and Zimbabwe. Keywords: economic growth; energy consumption; causality test JEL Classifications: C22; O43

Description: The Turkish Grand National Parliament passed a renewable energy promotion law that provides feed-in tariffs for electricity generation from renewable energy sources in 2005. This law was not attractive to investors due to the low level of feed-in tariffs. Then, in 2011, the promotion law was amended and a new support scheme integrated in the day-ahead market was introduced. Therefore, the main purpose of this article is to explain the new support mechanism, analyze it from the financial perspective, and discuss the related key issues and challenges. In addition, to further improve the support mechanism, some recommendations have been made to policymakers. Keywords: Feed-in tariff; RES support scheme; Turkish electricity market Jel Classifications: E6; G39; H2; Q48

Description: This paper aims to explore the potential linear and nonlinear causal relationship between electricity consumption and economic growth in Turkey during the time period 1945-2006. The study employs the standard linear Granger causality test and the nonparametric Diks and Panchenko causality test. Electricity consumption is disaggregated into residential and commercial electricity consumption, government offices, street illumination, industrial and other activities electricity consumption, in order to determine the sources of both linearity and nonlinearity. The findings provide evidence for the existence of a unidirectional nonlinear causality between income and electricity consumption at the aggregate level. The results also support the presence of a unidirectional linear flow running from economic growth towards residential, commercial and street illumination electricity consumption as well as a unidirectional nonlinear flow running from the residential and commercial electricity consumption towards economic growth and from income to electricity consumption for street illumination. Policies should focus on promoting electricity consumption, especially in the residential and commercial sectors to drive economic growth. Keywords: electricity consumption; economic growth; linear and nonlinear Granger causality JEL Classifications: Q43; Q48

Description: Through the perspectives of socio-technical systems, this paper summarizes characteristics of China’s smart grid and finds the influencing factors of development mechanism. We find that China’s smart grid featured by company-led, government striven to develop renewable energy, indigenous and multinational corporation both-driven, consumer-participated passively approach appears to differ from development pathways compared with other Western counties such as US, South Korea and Japan, then we assess strength and weakness of the development mechanism from three aspects including government, industrial and consumer. From a long run, China should establish flattening social innovation organization with government-led, stakeholders-participated jointly, then enact national blue planning, laws and technical standards, at last, develop ultra high voltage properly and actively promote development of distribution generation and micro grid. Keywords: Smart Grid; Development Mechanism; Government; Industrial; Consumer JEL Classifications: 030

Description: This paper empirically examines the relationship between oil consumption, nuclear energy consumption, oil price and economic growth in four emerging economies (Russia, China, South Korea, and India) over the period from 1965 to 2010. Applying a modified version of the granger causality test developed by Toda and Yamamoto , we find that the level of world crude oil prices (WTI) plays a crucial role in determining the economic growth in the investigated countries. The results suggest that there is a unidirectional causality running from real GDP to oil consumption in China and South Korea, while bidirectional relationship between oil consumption and real GDP growth appears in India. Furthermore, the results propose that while nuclear energy stimulates economic growth in both South Korea and India, the rapid increase in China economic growth requires additional usage of nuclear energy. Keywords: nuclear energy consumption; oil consumption; economic growth; oil prices; Granger causality test JEL Classifications: Q40; Q43; Q48

Description: Industrial production is one of the leading indicators of gross domestic product which reflects the overall economic performance of a country. In other words decreases or increases in industrial production point out a contracting or expanding economy. Therefore, changes in prices of oil and natural gas which are the crucial inputs to the industrial production are also important for the overall economy. This study examines the effects of changes in oil and natural gas prices on the industrial production in the 18 Eurozone member countries during the period January 2001-September 2013 by using panel regression. We found that oil prices and natural gas prices had negative effect on industrial production in the Eurozone member countries. Keywords: Oil Prices; Natural Gas Prices; Industrial Production; Eurozone Member Countries; Panel Data Analysis. JEL Classifications: C22; E31; L60; Q43. 

Description: With the development of the reform and opening-up, China’s volume of export trade has grown rapidly; meanwhile the new energy consumption has risen vigorously. Export trade plays extremely important role in China’s national economy, and consumption of clean energy provides significant support to China’s export. Cointegration analysis of new energy consumption is adopted based on the data from 1979 to 2011, with the result showing that there exists bi-directional Grand causal relationship between China’s export trade and new energy consumption. According to the impulse response and variance decomposition, the contribution of exports to consumption of new energy is more than that of new energy consumption to export trade. Keywords: New energy consumption; Export trade; Grand Causal relationship; Impulse response; Variance decomposition JEL Classifications: C32; Q43

Description: As renewable energy requirements increases, its relation with development is controversial. In this study, by taking human development index for development level, the relationship between renewable electricity net generation values and development has been searched with panel analysis. Study covers two different time periods: 1980-2010 with 5 year data to analyze long term effects and 2005-2010 yearly data for short term effects. Unlike previous studies, energy generation has been taken into consideration for it is thought to be more related with economic development. It is found that in the long run economic development will be leading to renewable energy production, while in the short run there exists a bidirectional causal relationship between renewable energy production and economic development. In addition, the causal relationship between economic development and renewable energy production varies both in the long run and in the short run due to human development level of the countries. Keywords: renewable energy; Human Development Index; causality JEL Classifications: C10; N70; O150 

Description: The purpose of this paper is to examine whether the volatility of the West Texas Intermediate oil spot returns (WTIR) is affected by the Texas Light Sweet oil futures returns (FUR), the exchange rate returns between the US dollar and the Euro (ERR), and the S&P 500 energy index returns (EIR), and if any of those have changed over time. The daily data of the WTIR, the FUR, the ERR, and the EIR between the period of January 4, 2000 and September 30, 2009, were utilized. The empirical results of the multivariate GARCH of the BEKK model indicated that the WTIR is significantly affected by its own past volatility, and by the volatility of FUR, ERR, and EIR. Most likely, WTIR employs a structural conversion in our dummy variable for selected time points. This suggests that investors could use the FUR’s past volatility as a basis for WTIR purchase. In addition, the changes in ERR’s and EIR’s past volatility can be partially used as a basis for the same purpose. Keywords: Oil spot and futures; Exchange rate; Stock index market; Multivariate GARCH-BEKK JEL Classifications: C32; G32; Q43

Description: In this work, we propose to reduce the initial building construction cost by using local low-embodied energy materials and use savings to offset the cost of renewable energy installations. A typical house in the desert climate of inland Lebanon is modeled using commercial software for a conventional construction case and when using local construction materials. The savings from envelop replacement were used to invest in installing a solar water heater (SWH), and a photovoltaic (PV) system as well as double glazed windows. This resulted in net energy savings up to 97% and 59% for single and double glazed windows, respectively. When further investment in the PV system is evaluated and optimized based on life cycle cost, the savings from covering the electrical load and selling to the grid decreased respectively to 27% and 75% in the case of single glazing and to 28% and 76% in the case of double glazing. Keywords: Local construction material; Initial construction cost; PV system design and optimization; Renewable Energy JEL Classifications: C61; C63; L94; Q20; Q28

Description: This paper applies a battery of panel unit root procedures to test for convergence in per capita energy consumption among 22 African countries. Specifically, the study implements both the conventional panel unit root testing procedures and the Sequential Panel Selection Method (SPSM). The results from the standard panel unit root tests provide evidence of convergence in per capita energy consumption for the 22 countries as a group. However, these procedures lack the ability to separate the series in the panel into stationary and nonstationary groups. The results from the SPSM procedure provide support for per capita energy consumption convergence for Angola, Mozambique, Libya, Tanzania, Zambia, Ethiopia, Algeria, Senegal, Congo Republic, South Africa, Benin, Cameron, and Nigeria. For Tunisia, Cote d’Ivoire, Sudan, Gabon, Zimbabwe, Morocco and Togo, the results from the SPSM procedures suggest that their per capita energy consumption series have not converged with the other panel members. Keywords: Per capita energy consumption; SPSM; convergence; panel KSS unit root test JEL Classifications : C22; C23; Q41

Description: Efficient and well-developed power sector enables growth and boost of the economy, competitiveness of the national economy, affects the improvement of living standard of the population and development of society. In this respect, the basic task of the power sector is to ensure quality delivery of electricity to consumers that is secure and reliable, with optimal price of electricity and acceptable dynamics of delivery. Since the beginning of the 1980s until present time, the electric power sector has been facing a series of reforms and related restructuring processes aiming to improve the efficiency of the electricity market. This implies liberalisation and privatisation, and unbundling of power activities by which market competition is introduced in the production and supply of electricity. In the process of developing the power sector, it is necessary that the interests of preserving the environment for future generations are equally important as economic and energy interests of today's generations. In this regard, it is environmentally and economically justified to base the development of power systems on renewable energy sources. Increasing the share of renewable energy sources in the national electricity systems will contribute to an increase in energy and environmental efficiency in production and distribution of electricity and, consequently, energy sustainability of national economies. Keywords: power sector restructuring; diversification of RES; efficiency; sustainability; environment JEL Classifications : D24; Q42; Q56

Description: This paper studies the causal relationships between fossil fuels consumption, CO 2 emissions and economic activity at aggregate and disaggregates levels in Saudi Arabia using the multivariate cointegration approach. The results show the existence of a long-run equilibrium relationship between fossil fuels consumption, carbon dioxide emissions and economic growth. Moreover, in the long-run the causality is unidirectional running from economic growth to energy consumption and natural gas consumption whereas there is absence of causality in the case of oil consumption. Our results indicate that energy conservation policies might be enforced without affecting economic growth.  Policies aimed at reducing fossil fuel consumption and controlling for CO 2 emissions may not affect negatively Saudi’s economic growth. Hence, policy reforms aimed at reducing fossil fuels (oil and natural gas) subsidies become an urgent necessity in the near future in order to eliminate fossil fuel wastes. Keywords: Oil consumption; natural gas consumption; economic growth. JEL Classifications: C32; Q43. 

Description: Nigeria government has set a target of becoming among the top 20 economies by the year 2020. The argument here is not whether this can be achieved or not within the stipulated time, but rather achieving a sustainable economic growth through a clean energy system. The development of renewable energies in every region of the country is one of the tactics that can be used to achieve clean energy. This paper examined the attitudes and understanding of the public towards renewable energy sources and technologies so as to enhance the provision of electricity. The study was conducted in the south west Nigeria using a field questionnaire survey. The study found out that the large numbers of respondents are aware of renewable energy but they do not have a deep understanding of it. Most of the respondents support the use of renewable energy to supplement the current national grid instead of the present dominance of diesel/petrol generating set. Also, the public are willing to pay more for electricity supply once it is stable. Meanwhile, the willingness to pay more for the electricity decreases with the respondents’ age but increases with the respondents’ income. This implies that people will be willing to pay more for electricity when their incomes increase and also when they are relatively young. The study therefore suggests strong political commitment of Nigeria government on renewable energy applications as well as creation of enabling environment for the private sectors to successfully utilised renewable energy technologies. Keywords: renewable energy sources, Technologies; public attitudes and understanding JEL Classifications: D11; Q28; R11

Description: Although many factors have been identified to explain the nexus between electricity consumption and economic growth, the empirical evidence is rather mixed. Given these contradictory conclusions, the aim of this paper is to find out which outcome the meta-analysis would support by applying meta-analysis to a sample of the empirical results of 43 studies published between 1996 and 2013. We found that the conservation hypothesis is widely associated to American and European countries. However, conservative policies are likely to have an adverse effect on the economic growth in Asian and MENA countries. Conversely to expectations, the growth hypothesis is heavily associated to studied countries and considered modeling specifications. Additionally, while a neutrality hypothesis is insignificantly associated to MENA countries, the feedback hypothesis is not supported when appealing a panel of American economies. Therefore, the inconclusive results may be mainly due to the different country samples, econometric methodologies and to the fact that energy policies cannot be designed without considering economic and environmental factors, which are unfortunately excluded in the majority of studies. Further analysis should focus more on the new approaches rather than usual methods based on a set of common variables for different countries. Keywords: electricity consumption; economic growth; meta-analysis. JEL Classifications: C2; Q43

Description: The paper analyses the relationship among economic growth, carbon dioxide emissions, and energy use for six ASEAN countries over the 1971-2007 years. Using a panel VAR technique, a 3-variable VAR is estimated. Empirical findings show that the response of economic growth to energy use is positive and statistically significant. The forecast errors in real per capita GDP are mainly due to uncertainty in GDP itself and energy use emissions. The error variances in the carbon dioxide emissions are sensible to disturbances both in the GDP and in CO 2 equations. While the errors in predicting the energy use are sensitive to disturbances in its own equation: after ten steps. Thus, for the estimated sample, these results reinforced the VAR and IRFs analyses, suggesting that for this panel the “growth hypothesis” holds. Keywords: economic growth; CO 2 emissions; energy use; ASEAN; panel data JEL Classifications: B22; C33; N55; Q48

Description: Energy consumption is a key factor in economic activity. To ascertain its role in economic growth, this study empirically investigates its role for Asian countries. Price index is also included in analysis as factor of economic growth. We examine and quantify this long run relationship for a sample of selected Asian countries with data on relevant variables for a large time dimension (1970 to 2012). Econometric precision is brought by using pooled mean group (PMG) besides other Pedroni, Kao and Westerlund panel cointegration tests. PMG being heterogeneous panels estimation technique allows the slope and short run parameters to vary across the countries. Structural breaks are also incorporated to observe the impact of shocks that leave permanent effect on national income. Results show the presence of long run relationship between energy consumption and national income. The positive contribution of energy consumption is quantified using Fully Modified OLS and dynamic OLS as well. Policy recommendations are made on the basis of empirical analysis. Keywords: Energy consumption; National income; Price index; Pedroni Cointegration; Kao Cointegration; Westerlund Test; Structural breaks JEL Classifications: C23; E31; E39; Q43; P44

Description: The paper builds on a study "Policy Scenarios for Climate Protection VI". In the Current Policy Scenario (CPS) all measures which have been implemented by July 8 2011 are considered. In the Energy Transformation Scenario (ETS) additional measures are included to reach the climate targets of the German government until 2030. Both policy scenarios build on the same socio-economic assumptions and just differ by climate protection measures. Investment in climate protection will reduce energy consumption in the long term and shift it towards low or zero carbon energy carriers. Scenarios are implemented in the model PANTA RHEI. Results of more ambitious climate protection measures are positive: Annual gross domestic product will be 25 to 30 billion Euros higher in the ETS compared to the CPS. Positive employment impacts are in the range of 200 thousand additional jobs. Energy efficiency improvements increasingly contribute via reduced energy imports in the long term. Keywords: Climate mitigation; energy efficiency; economy-energy-environment model; economic impacts JEL Classifications: C54; C67; Q43

Description: The objective of this work is to study the gasoline prices evolution and its relationship between crude oil prices in the international market through cointegration tests and across regression models of asymmetric, specifically this work uses stochastic models with heteroskedasticity and error correction mechanisms when it is mandatory. To achieve the purpose the purpose of this work, the gasoline prices were collected in Brazil, the USA and in a selected sample of six European countries namely Belgium, France, Germany, Italy, the Netherlands and the United Kingdom markets. All results are comparing among the markets selected to observe country similarities. All prices information collected were converted into U.S. dollars per liter. The data covers the period from June 2006 to April 2013. Keywords : Cointegration; Asymmetry; Gasoline Price; Crude Oil Price. JEL Classifications: C22; C51; Q40; O57

Description: The article aims to analyze the connection between economic development, energy consumption, and prices of electricity and gas on one side and of the operation of the Energy Market Operator on the other. For this purpose we use a sample of eight EU countries with well-functioning energy markets but quite diverse characteristics. The results show that Market Operators in more developed countries in the sample have above average activity (according to revenue), and their primary goal is to achieve external economies. A higher level of Market Operator activity (greater revenue) is influenced by the decrease of transaction costs in energy markets and improves the prospect for greater use of energy. An active Market Operator is characteristically associated with international openness in the energy market as well as with the development of gas use in the given country. We find that a better equipped (greater assets used by the Market Operator) and more active (according to revenues) Market Operator is related with relatively higher levels of electricity and natural gas prices. Keywords: energy; supply and demand; financial analysis; macroeconomics; international benchmark; comparison JEL Classifications: E3; F0; G0; Q4

Description: A literature review of the environmental effects and externalities of the transport sector and the concerns in sustainable transport planning is presented in this paper. The relation between air pollution and transport, considering that transport is an important air pollution emitter, is initially analyzed. The causal relationship between per capita GDP and individual consumption for transport, annual growth of global GDP and CO 2 emissions and changes in CO 2 emissions from fuel combustion by the various transport modes is then explained. Furthermore, energy consumption of transport modes for the EU countries is illustrated, as well as the relation between traffic flow and noise emissions and the implications of transport infrastructure to the landscape and environmental aesthetics. The increase in passenger mobility has caused traffic congestion, constituting an effect which is also quantified. Furthermore, the impact of accidents in terms of injuries, impairments and fatalities is a global social and public health issue. Moreover, the transport policies and the impact on economic and urban development, health, environmental protection and energy, focusing also on possible conflicts and convergence between safety and environmental policies are discussed. Finally, transport sector externalities, quantification in monetary units and possible effects of eventual internalization of these external costs are presented. Keywords: Environmental effects; Externalities; Internalization; Sustainable; Transportation planning JEL Classifications: H23; O44; Q53; R4 

Description: Unlike previous renewable energy-growth studies,   this study examines for the first time the relationship between renewable energy and economic growth for 80 countries under the Canning and Pedroni (2008) long-run causality test, which indicates that there is long-run positive causality running from renewable energy to real GDP for the total sample as well as across regions. The empirical findings provide strong evidence that the interdependence between renewable energy consumption and economic growth indicates that renewable energy is important for economic growth and likewise economic growth encourages the use of more renewable energy source.  The presence of causality provides an avenue to continue the use of government policies that enhance the development of the renewable energy sector. Keywords: Renewable energy; Economic growth; Sign test; Panel countries JEL Classifications: C33; E23; Q20

Description: This study examines impacts of oil foreign direct investment on the environment and welfare of people of Niger delta oil producing communities, using structural equation models. Overall, it was found that oil foreign direct investment has consistent impact on the environment than the well-being of the community, which results in high levels of poverty. The implication is that there is environmental diseconomies and widespread of poverty in the area. Thus, there is need for fostering sustainable partnership between the oil foreign direct investors and the host communities by suitable consideration of the issues of mitigation of environmental problems that will reduce the poverty level of the people. The environmental and socioeconomic system should be developed to maintain an intensity of biodiversity that will give assurance to the buoyancy of the ecosystems on which human consumption and production depend. Keywords: Foreign direct investment; environmental degradation; poverty; structural equation modeling JEL Classifications: C39; F21; F64; I31

Description: The purpose of this paper is to empirically investigate the short and long run causality between economic growth and energy consumption in Saudi Arabia during the period of 1971-2012 using the Gregory and Hansen (1996) cointegration procedure and error-correction models. The results of the unit root tests with structural breaks indicate that total energy and gas consumption are stationary in levels. Thus, we dropped these variables from the cointegration and causality analysis. The stable long run relationship between real GDP and oil consumption is detected by both stability and cointegration tests. The estimated breakpoints correspond with the period of 1974-1985 during the oil boom. The causal relationship is found between real GDP and oil consumption in both the short and long run. We found short run unidirectional Granger causality running from real GDP to oil consumption. However, the long run unidirectional Granger causality is detected from oil consumption to real GDP. Therefore, the energy conservation policy in the long run should be designed with caution, since energy is considered an engine of GDP growth. Keywords : Energy consumption; Structural breaks; Causality; Saudi Arabia JEL Classifications: C20; Q43; Q48

Description: Using an error correction framework, this study analyzes the long- and short-run dynamics of electricity demand in Ciudad Juarez, a large metropolitan economy on Mexico’s northern border. Demand is decomposed into the total number of electricity accounts and electricity usage per customer, each of which is modeled separately.  A two-stage least squares approach is used to estimate the per customer electricity demand equations due to the endogeneity of the average price variable.  The results indicate sustained growth in population, employment, and income can be expected to exert substantial upward pressure on regional electric power demand.  Furthermore, demand is found to be price-inelastic in this metropolitan area, suggesting that rate increases can help raise the revenues necessary to fund expansion of the electrical grid. Keywords: Electricity Demand; Urban Economics; Applied Econometrics; Mexico JEL Classifications: M21; Q41; R15

Description: The goal of this paper is to test if the promised U.S. electrical system high reliability standards are being maintained, once states deregulate their electric utilities. This research is the first in the literature to combine states that offer retail choice, by deregulating their electric utilities, with  North American Electric Reliability Corporation reserve margin forecasts, from 2014-2023, to analyze whether deregulated retail-choice states are adding adequate generating capacity to meet demand, and thus provide high electrical system reliability, when compared to the U.S. as a whole. This paper’s results on electrical system reliability in the deregulated states are timely and important for U.S. electricity energy policy. Additionally, this is the first paper in the literature to propose a new space-time business model that adequately addresses the complex, multidiscipline, multidimensional, U.S. electrical system deregulated market. Future research will specify the new business model’s mathematical formulation.  Keywords : U.S. electrical system reliability; Electric utility deregulation; Electricity “energy only” and “capacity markets.” JEL Classifications : G31; G38; H44; K23 

Description: Review of economic developments in Iran over the past four decades shows that oil revenues have deep and wide impact on economic indicators. The Two channels which oil price changes directly or indirectly affect inflation as the most important Economic variables are: increase in demand  (mainly by government public budget and Influencing the components of monetary base and money supply) and increase in production costs (via the price of factors of production). In this regard, the present paper attempts to investigate the nature and causes of oil price pass-through into inflation in the short-and-long term; analysis of the pass-through and in addition design the necessary policies to control its destructive consequences. For this purpose, the Dynamic Error Correction Model was used and the data were collected monthly from 2003/3 to 2013/3. The findings showed that the oil price pass-through into inflation in both short-and-long term were Positive and incomplete. Therefore, it would be useful in policymaking. Keywords: Oil Price; Inflation; Pass-Through; Error Correction Model. JEL Classifications: C13; C22; E31; Q43.

Description: This study aims to investigate the effects of foreign direct investment and economic growth on CO2 emission. The panel data for the period of 1992 to 2012 from 15 developing countries were collected. The Johansen co-integration was conducted and the results show that there is co-integrated relationship between the variables (FDI, CO2 and GDP). Then the FMOLS was done and it was found that in the long run foreign direct investment does not have any effect on CO2 emission. Therefore, it suggests that an increase in FDI does not influence CO2 emission. However an increase in economic growth can intensify CO2 emission. Therefore, the developing countries should formulate policies on the environment in order to accomplish economic sustainability. At last, Granger causality based on VECM was employed and the results suggest there is no effect of FDI and GDP on CO2 emission in the short run. Keywords:  CO 2 emissions; economic growth; foreign direct investment JEL Classifications: Q4; Q5

Description: This paper provides essential background of European power sector and discusses the theoretical background for its integration. Our work employs real-life statistics on the state of integration in order to find out what future development might be in place for this key sector of European economy.

Description: This paper investigates the changing patterns of electricity intensity in Manufacturing in European countries since 2000. While GVA in Manufacturing has grown and electricity use has declined, it is not clear that this decrease in intensity is directly associated with improvements in technology. Decomposition of the effect suggests that a switch towards less energy intensive sectors accounts for roughly 10% of the total change in electricity intensity. A further level of disaggregation accounts for the factor mix and suggests substitution from labor to electricity. This does not appear to be driven by factor prices, as electricity prices grew significantly more than wage compensations within the sample. The adjusted intensity effect is consistently found to be negative and the average decrease in labor intensity has been more pronounced than the corresponding decrease in electricity intensity. Accordingly, aggregate changes cannot purely be attributed to less electricity-dependent modes of production, but are rather due to general improvements in productivity. Keywords : decomposition analysis; electricity intensity; European manufacturing; Logarithmic Mean Divisia Index (LMDI) JEL Classifications: L60; D24

Description: In the last decades, electricity markets throughout the Eurozone have undergone substantial changes. The deregulation of electricity markets stimulated investments in the production and distribution of energy, but there are large risks associated with these investments due to price volatility. The paper in the introduction describes the algorithm that governs the operation of the Day-Ahead Market in the Italian Power Exchange and proposes an econometric model for short-term forecasting (six months or a year) of the daily Single National Price ( Prezzo Unico Nazionale, PUN) of electricity. The model includes constants, regressors, moving averages, weekly and seasonal dummies, autoregressive and heteroschedastic variables. The results show a significant decrease in error of the short-term forecast of the analyzed time series, in comparison with the method of linear least squares, traditionally used in literature. An analysis on the influence of different variables on PUN such as brent, solar radiation and weather has been reported. A comparison of the different models with specific indices have been performed and discussed. Keywords: Electricity prices; Day-Ahead Market; Italian Power Exchange; ARMA–GARCH model; Forecasting. JEL Classifications: C5; C51; L; L1; L11

Description: Energy security has been a priority for many countries. What makes energy security that important is; its bilateral relationship with economic, political, social, environmental sustainability and military issues.  As an inevitable consequence of globalization cooperation in the field has been a must and it is required international energy security indicators to make energy security risk evaluations in order to establish adequate policies. The aim of the study is to review energy security within the concept of international energy security indicators, international energy security risk index, international energy security rankings and to reveal Turkey’s energy security risk summary emphasizing the components of energy security issue. Keywords: Energy security indicators; energy security risk. JEL Classifications: F50; Q40.

Description: This study stemmed from the lack of evidence and uncertainties regarding the economic and political effects of a strategic alliance between leading oil companies like Petrobras and Galp on their host economies. This paper investigates whether public and private corporations in the energy sector can influence the economic growth of their respective countries. A Panel data analysis was performed by employing quarterly data from (2006-2013). We also used Data Envelopment Analysis (DEA) approach to measure the technical efficiency (TE) effect of the alliance on the performance of both companies from 1999 to 2012. It was found the exploration and export of oil and gas do not play a significant role in output growth of the home economy and that exploration activities were inflationary, destabilising and inimical to growth, at least in the short-run. On another positive side, both companies showed increased technical efficiencies in the chosen time period. Petrobras enjoyed TE on average of 90% in the variables studied whereas Galp showed an average TE of 70%.  These results reflect the corporate strategies of both firms, which focussed on achieving profitable and sustained growth and enhancing their efficiencies in their collective and individual activities. Keywords: Economic Growth; Exploration; Oil and Gas; Technical Efficiency; Strategic Alliance JEL Classifications: L1; L4; Q43

Description: Electricity has attained a very important place in every household on this planet. It is a major contributor towards improvement of the standard of living of any individual, family and society at large. This paper aims to find out the monthly average household electricity consumption and seasonal variations in this consumption for the months of summer, winter and moderate weather for Delhi. The factors which influence the electricity consumption of a household have been examined by using a questionnaire based study of 395 Delhi households selected via stratified random sampling technique. Multiple regression models have been run to describe the pattern of household electricity consumption. The results from the study show that the stock of appliances in a household contributes the most to the variation in the dependent variable. An inverted U-shaped non-linear Temperature-Electricity Curve has been derived from the primary data used in the study. Keywords: Delhi; Electricity; Electricity Consumption; Household JEL Classifications: D11; D12; Q44

Description: This paper employed a Generalized Autoregressive Conditional Heteroskedasticity in Mean framework to examine (i) the relationship between uncertainty and inventory management, defined as an inventory to sale (IS) ratio; and (ii) the impacts of uncertainties in ex-refinery price, oil funds, and futures price on uncertainty in inventory management, measured as a conditional variance of the IS ratio. Using monthly data for five petroleum products from January 2008 to June 2013, the results indicate that uncertainty induces businesses to hold more of the IS ratio than required. The sensitivity analysis reports that uncertainty in ex-refinery price contributes mostly to the uncertainty in inventory management, while the impact of uncertainty in the oil fund on uncertainty in inventory management is relatively small. Interestingly, the result indicates that uncertainty in futures price can help mitigate uncertainty in inventory management and gives support to the existence of the futures market. Keywords: Petroleum products; uncertainties; inventory management. JEL Classifications: D89; G31; Q41

Description: Climate change is termed as one of the greatest challenges of the 21 st century and this has posed threat to agricultural dependent economies. In fact report had it that developing economies are at disadvantage as they stand to experience some of the severe effects from climate change.  It is against this backdrop that this paper examines the impact of climate change on crop production in Nigeria. Ten crops were selected and three climatic variables were used for the study. Data for the study were extracted from the Food and Agricultural Organisation database, World Development Indicator and the CBN Statistical Bulletin and the data covers the period 1970-2009. Analysis of data was done with cointegration approach. The study revealed that the effect of climatic variables on crop production varies depending on the type of crop and seasonal properties and length of days of the crop. In general, climate change effect was found to be pronounced on the output of the crops. It is therefore recommended that various adaptation strategies necessary for increased output of these crops be adopted by farmers and this can better be achieved with proper enlightenment programmes for the farmers. Keywords: climate change; global warming; crop production; error correction model JEL Classifications: Q54; Q56

Description: In this study, an operation research on the performances of Tomakomai CCS project has been carried out for investigating the permeability uncertainty and the failures on CO 2 operation and transportation. Firstly, economical effects of estimation error in aquifer permeability were investigated by using a reservoir block modeling based on numerical simulation results on CO 2 injection rate. Secondary, economic loss resulted from failure of CO 2 injection was evaluated by assuming periodical injection halts. It is clear that CO 2 buffers, such as sphere gas tanks, should be installed to store CO 2 on the CCS process which can temporarily store CO 2 after it is captured when a trouble on transportation or injection processes occurs. Without a buffer, releasing the captured CO 2 to the atmosphere due to system failure or trouble in injection will add to capture costs, or will result in carbon tax or opportunity loss on CCS. The larger size of CO 2 buffer volume can potentially withstand against long-term trouble, however the larger buffer volume needs larger cost for initial construction and maintenance. The study also present the optimum CO 2 buffer volume based on economical evaluations for a commercial CCS model based on several simulations performed with and without CO 2 buffer in the system. Keywords: CCS; Uncertainty; Economic Evaluations; Permeability; CO 2 Buffer JEL Classifications: Q35; Q41; Q55

Description: This paper examines the relationship between energy consumption and real economic growth in 17 Arab countries: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. It uses an Auto Regressive Distributed Lag (ARDL) model to determine this econometric relationship using data during 1980-2011. After testing for unit root and cointegration, it identifies Granger causality between energy consumption and real economic growth. The analysis allowed for the verification of the four hypotheses that have been discussed widely in economic literature: Neutrality, Conservation, Growth, and Feedback hypotheses. Empirical findings support neutrality hypothesis in 16 out of 17 Arab countries. These findings, of no causality from economic growth to energy consumption and the other way round, imply that energy conservation will not have a significant impact on economic growth and economic growth will have insignificant effect on changes in energy consumption. They also suggest including other more important variables in the determination of economic growth, such as labor and capital. Keywords : economic growth; energy consumption; ARDL model; Granger causality; Arab countries. JEL Classifications : C33; O4; O13; Q43

Description: One of the fundamental tasks of modern power system is finding ways to produce stable and continuous electricity from scarce energy resources. One of the possible solutions is introduction, implementation and improvement of alternative forms of energy such as renewable energy sources, particularly wind energy as an increasingly important energy source which is expected to further increase its share in total electricity production. Numerous methods can be used in assessing the efficiency of wind energy companies, and in the focus of this research is the Data Envelopment Analysis method (DEA), a widely accepted methodology given its interdisciplinary approach and flexibility. This method represents a step forward in the field of renewable energy management, because it provides the possibility to compare the selected companies with the best in the industry (the most efficient) and the possibility of determining sources of inefficiency and, consequently, the possibilities of their elimination. Keywords: efficiency; power sector; wind energy companies; DEA JEL Classifications : C61; D24; Q42

Description: This article investigates the correlation between economic growth, carbon dioxide emissions, renewable energy and globalization for the period 1970-2010, using time series (OLS, GMM, unit root test, VEC model, and Granger causality) to Portuguese economy. OLS estimator and GMM model demonstrate that carbon dioxide emissions and renewable energy are positively correlated with economic growth. The econometric models also show that the overall index of globalization has a positive effect on growth. The Granger causality reports a unidirectional causality between renewable energy and economic growth. Keywords: Economic growth; renewable energy; globalization. JEL Classifications: C13; F10; Q20

Description: This paper investigates the mechanisms of return and volatility transmissions between oil prices and five emerging market sector returns. For the empirical method, we utilize a recent and novel technique: Vector Autoregressive-Asymmetric GARCH (VAR-AGARCH) model. We find some significant cross shock and volatility linkages between oil prices and the sectors. However, our results manifest that the sector indices are not affected equally or simultaneously by movements in oil prices. Additionally, we compute the optimal holding weights and hedge ratios for the two-asset portfolio consisting of oil and each sector index. Our empirical findings have potential implications for investors and portfolio managers. Keywords: Emerging sector indices; oil prices; volatility transmission; optimal weights; hedge ratios JEL Classification s: C32; G11

Description: In this paper, the demand function for five major petroleum products consume in Nigeria namely gasoline, diesel, kerosene, fuel oil, liquefied petroleum gas (LPG) and aggregate was estimated using Structural Time Series Models (STSMs) which accounts for structural changes in energy demand estimation. STSMs incorporate stochastic rather than deterministic trend which is more general and therefore argued to be more appropriate in this study. The results suggest that the demand for petroleum products in Nigeria is both price and income inelastic and the underlying demand trends were generally stochastic in nature. LPG has relatively higher elasticities than the rest of the petroleum products, namely kerosene, gasoline, diesel and fuel oil. Keywords: Petroleum Product; demand; STSM; Stochastic Trend JEL Classifications: C32; Q43; Q47

Description: Ghana became an oil producing country in December 2010. This development renewed the expectation of the citizenry as to the revenue that will accrue to the state and its direct effect on standard of living. The purpose of this study was to evaluate the Ghanaian upstream petroleum fiscal regime, including state and investor shares, and to compare it with petroleum fiscal regimes of some six other oil producing African countries. The qualitative assessment compared the regime on general taxation and petroleum taxation in particular. The traditional Discounted Cash Flow (DCF) method was used in the quantitative assessment of the regimes. Out of the seven regimes used in the quantitative analysis, the Ghanaian regime ranks sixth in terms of government take. It also ranks second with 31 months investor payback period based on post-tax discounted cash flow. Though the Ghanaian fiscal regime appears to be progressive; thin capitalisation, royalty rate, and cost recovery limits withholding taxes on interest. Therefore tying of additional oil entitlements to profits are recommended in future reviews of the Ghanaian fiscal regime. It appears from the study that the Ghanaian regime is not optimal and the recommendation provided would help improve upon it. Keywords: Petroleum fiscal regime; oil revenues; taxation JEL Classifications: H29; Q33; Q38

Description: This paper analyzes the relationship between renewable and non-renewable energy consumption and economic growth for a panel of fifteen European Union countries over the period 1990-2011 within a multivariate framework. The heterogeneous panel cointegration tests present a long-run equilibrium relationship between real GDP, renewable and non-renewable energy consumption, greenhouse gas emissions and research and development. The Granger-causality results demonstrate unidirectional causality between non-renewable energy consumption and economic growth. Keywords: renewable energy consumption; non-renewable energy consumption; growth JEL Classifications: C23; O11; O13 

Description: The aim of this study is to investigate the impact of energy consumption economic growth and especially trade openness on CO 2 emissions.  In this frame, determiners of the CO 2 emissions are questioned by panel data cointegration analysis. In the scope of this study, 85 countries’ data are contributed to the analysis for the period of 1990-2011. According to the results positive relationship is found between CO 2 emissions and energy consumption, per capita income and trade openness. On the other hand, trade openness can reduce CO 2 emissions in the long run. Findings indicate that in the short run unidirectional causality from CO 2 emissions to trade openness (TRD). Also there is unidirectional causality from per capita income (GDP) to CO 2 emissions and energy consumption (EN). Short run dynamics suggest bidirectional causality from GDP to TRD and TRD 2 .    According to the coefficient on the lagged ECT, implying that there are two long-run panel causality links that run from LGDP, LTRD and LEN, to LCO 2 and from LGDP, LTRD and LCO 2 emissions to LEN. Keywords:  CO 2 emissions; Trade Openness; Panel Cointegration Analysis; Panel causality analysis. JEL Classifications: C33; O13; Q43

Description: The study of the petroleum price structures in Thailand reveals that diesel is the important fuel because it influences inflation and productions’ costs. Government wants to keep diesel’s price stability; meanwhile, it is less control in gasohol and petrol prices. These prices are normally higher than diesel’s price in order to support the renewable energy and reduce the consumption behaviors. Real price elasticity of imported crude oil in short run is insignificant but in long run is about 0.0660 statistically significant. While, real income elasticity is about 0.4841 in short run and increase to 0.9969 in long run. The price transmissions from crude oil to petroleum products demonstrate the inequality distribution with symmetry adjustments. Additionally, the adjustment to the long-run equilibrium of petrol price is slower than diesel price. Therefore, the efficiency energy policies should be in consideration to decrease the country's energy consumption in the future. Keywords: price transmission; elasticity of crude oil demand JEL Classifications: C32; Q41; Q48

Description: In this article, we are interested in the analysis of energy intensity by the Fisher Ideal Index method, a method belonging to the approach of the Index Decomposition Analysis (IDA), in order to highlight the effects which contribute to its reduction. The use of this method allowed us to decompose the variation of energy intensity in Tunisia for the period 1990-2008 into two effects: one effect due to the structural change of the economy and another arising from energy efficiency. We show that the effect of enhancing energy efficiency is the main contributor to the reduction of energy intensity in Tunisia. Indeed, the setting into action of the policy of energy control has improved energy efficiency by allowing reaching a lower level of energy intensity. On the other hand, the effect of structural change through the orientation of the Tunisian economy toward the tertiary sector has also helped to reduce the energy intensity. Keywords : energy intensity; energy efficiency; economic structure; Index Decomposition Analysis (IDA) JEL Classifications: C4; Q4

Description: Due to the structure of Iran’s economy, oil revenues do not have a multi-dimensional role rather than a one-dimensional role in inflation. To put it differently, oil revenues impact inflation through exchange rate, government budget, importation, and imported inflation, monetary base, GDP growth, and government investment. These factors sometimes have contradictory effects on inflation. Therefore, investigating and analyzing the pass-through of oil shocks into inflation and providing appropriate policies is quite essential. Hence, the present research is primarily aimed at modeling the pass-through of oil price and investigating its effect on inflation by means of hidden co-integration approach, analysis, and presenting political implications to control the effect of oil shocks on inflation. In order to do so, monthly data of crude oil and consumer price index from March 2003 to March 2013 have been utilized. The findings demonstrated the pass-through of oil price to the CPI in Iran. Moreover, the coefficient calculated in this study revealed that the magnitude of this pass-through is quite large in the long run in Iran’s economy. In addition, based on the CECM model which is a type of non-linear, asymmetric, and hidden co-integration method this research showed that the pass-through of oil price to inflation is asymmetrical. On the other hand, the dynamic short-term relationship, in the framework of CECM model, also confirmed the asymmetrical pass-through of positive and negative oil shocks into inflation. Keywords: oil price; inflation; Asymmetric Pass-Through; CECM model. JEL Classifications: C13; C22; E31; Q43

Description: Energy is an important catalyst for development. Malaysia is very fortunate to be endowed with oil reserves. However, these reserves are finite and not renewable. Being cognizant of this, the Malaysian government had implemented various energy policies and strategies to manage and safeguard its oil reserves for better energy security as well as to promote prudent use of energy. This paper aims to highlight the electricity sector in Malaysia and the various policies and strategies implemented thus far. By reviewing the existing energy policies and strategies as well as their implications, this paper suggests prospective policy and strategy options towards achieving better energy efficiency and emission reduction in the residential sector. The trends of electricity consumption and underlying factors influencing the growth of electricity consumption are also discussed. Keywords : residential electricity consumption; energy policies; renewable energy; energy efficiency, JEL Classification s: C54; Q48; Q54; R41

Description: In recent years due to factors, such as increases in greenhouse and carbon dioxide (CO 2 ) emissions, global warming and climate changes has become a major threat for all countries. So in order to prevent this increased environmental pollution and degradation CO 2 emissions must be reduced. This study examines economic growth, CO 2 emissions and energy consumption relationship in Turkey by using cointegration test. For this purpose 1960-2010 periods taken and annual data of Gross Domestic Product (Y), Carbon Dioxide Emissions (CO) and Energy Consumption (EC) are used. The obtained empirical results from this paper indicated that CO 2 emissions effect negatively economic growth while energy consumption effect positively it. Keywords: Economic Growth; CO 2 Emissions; Energy Consumption; Turkey; Cointegration Test. JEL Classifications: F43; Q43; Q56

Description: In this study, an overview of energy, how Australia is producing electricity, highlighting currently used fossil fuel generation technique’s major share compared with starting renewable energy technique’s minor share of total electricity generated. How electricity transmission is done, wholesale and retail electricity pricing method and such prices movement history are presented. A focus on economic aspects presenting residential electricity sector prices and Australian households’ income and how it is affected by electricity consumption bill supplied by the traditional technique of electricity generation via coal burning widely utilized in Australia. Statistical economic indices data are presented such as consumer price index and wage price index are shown, graphed, discussed and analysed. This study concluded, it is a strong yes that Australia is highly motivated to focus on domestic renewable micro electricity generation for domestic buildings considering the historical and current ongoing economic aspects relevant to Australian households. Today it is a highly motivated and stimulated option; however, tomorrow it is an obligation. Keywords: Australian households’ income; domestic electricity consumption; electricity generation and transmission; grid connection; feed-in tariffs; renewable energy; micro electricity generation. JEL Classifications : B3; D1; D8

Description: This paper researches the portfolio construction between stock price of group of seven (G7) and West Texas Intermediate crude oil from January 2, 1998 to March 1, 2012. We investigate the volatility spillover between stock price and oil price with the dynamic conditional correlation (DCC), constant conditional correlation (CCC) and BEKK models, and also analyze their optimal hedge ratio and portfolio weights. The empirical result is that the hedge effectiveness of DCC model is better than the CCC model and BEKK models. The hedge effectiveness (HE) in Canada is the highest but Japan is the lowest. Moreover, the results show that Japan has the biggest optimal portfolio weight and the lowest hedge ratio. We do this research with expectation of providing investors information to increase the basis of investing. Keywords: Crude oil; DCC model; Hedge effectiveness; Optimal portfolio JEL Classifications: C22; G1; N7

Description: In policy domain, economics is concerned with decision about the best alternative for undertaking public and private initiatives. Economic decision is a complex issue since many explicit and implicit economic factors affect the available economic alternatives. This is particularly difficult when we have to decide about launching an energy initiative. Generally, economic options are quantitatively evaluated using cost benefit analysis method which considers only explicit factors and does not cater for the opinion of masses about suitability of particular economic option. This shortfall of quantitative assessment is more pronounced in case of energy initiative for which the ultimate recipients are the masses and undertaking of energy initiative has to cater for the consent of the masses. The opinion of people gives important conclusions about explicit and implicit factors affecting the economic options. Thus, for launching an energy initiative, it is more prudent to go for qualitative participatory assessment procedure rather than rigid cost benefit analysis. In 2009, Government of Liberia decided to invest in an energy initiative to generate energy for the diverse consumption. In this case studydiscusses qualitative economic evaluation of three different options considered for the energy initiatives. The study was aimed at finding the relative feasibility of available options based on the opinion of people. For this purpose, instead of using cost benefit analysis method, ItemizedScale survey technique was used to ascertain the economic feasibility of options. Case study contains useful and pertinent policy lessons for implementation. Keywords: Economics; energy; initiative; Itemized Scale; survey JEL Classifications : O22; O55; Q42; Q48.

Description: The study analyzed dynamics of the relationship between tourism, energy consumption, and climate change for 25 OECD countries during 1995-2005. For the analysis, Panel VAR (PVAR) model was used. Results of panel unit root-tests show that tourism is nonstationary in the level form but stationary in first difference form and energy consumption and climate change are stationary variables in the level form. Analysis of bivariate model shows that results are sensitive with change in the measurement of the tourism variable, change in order of variable and inclusion of the third variable. However, results of our trivariate model are found to be insensitive with either the change in the measurement of our tourism variable or change in the ordering of the variables. Our results of IRFs shows that response of tourism in one SD shock in climate change and energy consumption and response of climate change emissions to tourism is marginally positive. Further, we find that response of climate change in one SD shock in energy consumption and response of energy consumption in one SD shock in tourism and climate change is zero. Keywords : Tourism; energy consumption; climate change; OECD countries; panel VAR JEL Classifications: L83; O13; Q4; Q5

Description: During the restructuring process, Turkish electricity sector has gone through significant changes both in wholesale and retail markets. In this framework, the Market Financial Settlement Mechanism established for handling market imbalances has become a spot market in time. So, it can be claimed that the wholesale electricity market in Turkey is a hybrid mechanism composed of bilateral contracts and the balancing market. On the other hand, the main target of liberalization program is providing consumers with affordable electric power. Hence, this study attempts to explore the link between retail tariffs for ineligible consumers and prices in the two wholesale mechanisms, in the period after the launch of the day-ahead market. Findings suggest that regulated wholesale prices are more effective in the determination of end-user prices, whereas unregulated ones might have a price reduction effect in case the free market dominates. However, the volatility in spot market prices implies that the sector would better continue with the hybrid mechanism for quite some time. Keywords: Electricity Prices; Wholesale; Retail; Competition; Turkey JEL Classifications: D40; Q40; Q43

Description: Countries, both developed and developing, are called on to identify, through self assessments, their priority environmental issues such as mitigating greenhouse gas emissions, combating deforestation, promoting sustainable land and water management, and minimizing their vulnerabilities to the impact of climate change. Root cause analysis is conducted to determine the major barriers and institutional capacities. This papers presents capacity constraints in national priority issues typically encountered in developing or non-annex one nations, with the national capacity self assessment of Lebanon taken as a case study. The analysis of the information has identified a number of achievements and difficulties related to the fulfillment of the commitments under the UN Framework Convention on Climate Change. The common priority issues are national action plan for GHG abatement, vulnerability and adaptation, research and systematic observation, technology transfer, and education and public awareness. Root cause analysis related to priority issues has been carried out during which the causes and impacts of the constraints have been identified. The corresponding assessment matrices are also presented. Lack of financial resources is found to be the constraint facing priority issues. Keywords: Power sector; self assessment; capacity development; root cause analysis; market penetration. JEL Classifications: O13; O53

Description: This paper examined the existence of interaction between domestic energy consumption and exports in Nigeria by using annual data from 1970 to 2009. We applied cointegration, Granger causality and impulse response functions to capture the relationship. The empirical results indicate that there is significant relationship between domestic energy consumption and exports in the long run. Granger causality tests showed that there is unidirectional causality running from energy consumption to exports. Impulse response functions indicate that shocks to the energy consumption have a positive impact on exports in the longrun. Likewise, expansions on exports were positively related to energy consumption. Therefore, significant improvement in energy production and utilization is expected to stimulate exports and engender economic growth in Nigeria. Keywords: Energy; domestic energy consumption; exports; cointegration; causality; Nigeria JEL Classifications: C32; Q40; Q43    

Description: We provide the first intraday analysis on the contribution to price discovery of two emissions carbon credits: European Union Allowances (EUAs) and Certified Emission Reductions (CERs). We find that EUAs lead price discovery but CERs play a growing role and, therefore, should not be ignored. Keywords: European Union Allowances; Certified Emission Reductions; co-integration, price-discovery; high frequency data; intraday analysis. JEL Classifications: G10

Description: The examination of economic aspects of gas emissions and its consequences is very important, especially in terms of its volume at the current increasing trend. Therefore, the prediction of air pollution emissions of carbon dioxide can give the correct direction to policies adopted.  Hence, studying and forecasting of gas emissions is necessary. The purpose of this paper is the prediction of CO 2 emissions based on Grey System and Autoregressive Integrated Moving Average and comparison of these two methods by RMSE, MAE and MAPE metrics. The results show the more accuracy of Grey system forecasting rather than other methods of prediction.  Also, based on the estimated results, the amount of carbon dioxide emissions will reach up to 925.68 million tons in 2020 which shows an increase of 66 percent growth compared to 2010 which is highly significant. Keywords: Carbon Dioxide Emissions; Forecasting; Grey system; Iran JEL Classifications: C22; C53; Q50

Description: This papers investigated form of the linkage beetwen crude oil price index and food price index, using Johansen Cointegration test, and Granger Causality by VECM. Empirical results for monthly data from 1990:01 to 2011:08 indicated that evidence for breaks after 2008:08 and 2008:11. We find a clear long-run relationship between these series for the full and sub sample. Cointegration regression coefficient is negative at the 1990:01-2008:08 time period, but adversely positive at the 2008:11-2011:08 time period. This results represent that relation between crude oil and food price chanced. Keywords: Crude oil price; food price; structural break; VECM JEL Classifications: C32; Q10; Q40

Description: We study the interaction between forward and spot electricity markets in a scenario where buyers and sellers are price takers in the forward market and trade through marketers, who play a Cournot game. Our model’s main features come from the Brazilian electricity market, where a free contract market coexists with a regulated contract market, and the spot price is the output of a stochastic dynamic algorithm. We are able to show that the price of energy bought (sold) forward decreases (increases) with the number of marketers, and that, as a result, full hedging is achieved in the limit. We also investigate the effects on prices of changes in the number of market participants and in aggregate consumption and supply, an exercise that yields important policy recommendations for the Brazilian regulator. Keywords : Forward and spot markets; marketers; Brazilian electricity market; Cournot; hedging. JEL Classifications : C61; C72; G10; L13; L94