ALBERT

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 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: 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