• Focus Area -
  • Type KAPSARC journal article
  • Date 1 February 2017
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Abstract

This paper aims to measure the impact of the gradual adoption of Renewable Energy Sources (RES) on the welfare of consumers. To this end, we construct a theoretically founded measure of the true cost of living (TCL) and the equivalence scale (ES) for the household sector, based on a weather database of heating and cooling degree days. We estimate those values for 64 countries, which represent over two-thirds of the world population, according to World Bank statistics. We assume that the identified household in each country minimizes its expenditure on energy and other goods. We simulate alternate scenarios of renewables implementation in 2035, taking account of different RES prices, and assess the related societal implications of a gradual transition from fossil fuels to RES. The empirical results offer policymakers a basis for designing appropriate scenarios for the deployment of renewables, with the aim of fostering consumer welfare even in the context of international negotiations. © 2017 by the IAEE. All rights reserved.

https://www.kapsarc.org/booksarticles/page/2/#

Energy Journal

Authors

Tarek Atalla

Tarek Atalla

Former Research Associate

Simona Bigerna

Simona Bigerna

Associate Professor of Economics, University of Perugia

Carlo Andrea Bollino

Visiting Researcher Carlo Andrea Bollino is a Professor of Economics at the University of Perugia and Professor of Energy Economics at the… Carlo Andrea Bollino is a Professor of Economics at the University of Perugia and Professor of Energy Economics at the University LUISS, Rome. He holds a Ph.D. in Economics from the University of Pennsylvania, where he was supervised by Nobel laureate Professor Lawrence Klein. He has been a Visiting Researcher at KAPSARC since 2015, focusing on econometric analysis, electricity market reform and climate change policy analysis. He is a Visiting Professor at Technische Universität, Berlin, Germany, the President (honorary) of the Italian Association for Energy Economics. He was the President of the IAEE in 2008, the President of GSE (Italian Renewable Energy Agency) and GRTN (Italian Electric Transmission network); Energy Advisor to the Minister of Industry and Ministry of Treasury of Italy; Chief Economist, ENI; Economist, Bank of Italy; and a Research Associate at Project Link for the United Nations. He has testified to the Italian Senate and Parliament briefings and has provided various governments with technical and policy reports on electricity market liberalization and renewable energy developments.

Expertise

  • Consumer Behavior
  • Investment
  • Energy and Environment
  • Macroeoconometric Modeling

Publications See all Carlo Andrea Bollino’s publications

Rolando Fuentes

Rolando Fuentes

Former Research Fellow Dr. Rolando Fuentes was a research fellow focusing on business and regulatory models for the Utilities of the Future project.… Dr. Rolando Fuentes was a research fellow focusing on business and regulatory models for the Utilities of the Future project. He has extensive experience in the energy and environmental sectors as an academic and policymaker. Rolando was the director of international negotiations at the Mexican Ministry of Energy and later became director of hydrocarbons projects. Before joining the Mexican government, he was a fellow of the London School of Economics, where he lectured and taught courses in Environmental Impact Assessment and Environmental Policy, and supervised master’s dissertations. Rolando has also been an associate of the Oxford Institute of Energy Studies and IHS Cambridge Energy Research Associates (IHS CERA), and was a recipient of the British Chevenning Scholarship in 2001.  

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