• Primary Program Energy Transitions
  • Research Interests Energy and macroeconomics, and energy policies and transitions

Biography

Jorge is a former research fellow specializing in energy and economics, with research interests in energy and macroeconomics, energy policies and transitions.

Publications

See all Jorge’s publications
  • Discussion papers
  • KAPSARC journal articles
Reorganizing Power Markets: A Reliability Insurance Business Model for Utilities

Reorganizing Power Markets: A Reliability Insurance Business Model for Utilities

A market in which individuals pursue their own self-interest normally maximizes aggregate economic well-being. But households that install Distributed Energy Resources (DERs) in order to obtain savings in their electricity bill, impose an external cost on other customers. At scale, their actions can lead to higher electricity tariffs for utility customers and, in the extreme case, a utility death spiral. In this paper, we propose a market mechanism that may ameliorate this potential distortion based on the creation of a market for risk. Utilities would provide reliability insurance services to households to protect them against the failure of their own DER systems. Creating such an insurance market would allow customers to choose a premium according to their preference for reliability. It could also limit the potential utility death spiral efficiently, as the path would be driven by market mechanisms that arise after reassigning property rights and liabilities between utilities and their customers.

November 26, 2018
The Value of Saving Oil in Saudi Arabia

The Value of Saving Oil in Saudi Arabia

What is the value of saving a barrel of oil that would otherwise had been consumed domestically? This study explores the question, taking a long-run perspective into a general equilibrium approach. In the case of Saudi Arabia, the difference between the domestic price of oil and the international price represents an opportunity to improve economic efficiency across different activities and sectors. In this context, we study different policies aimed to reduce the domestic consumption of oil.

March 25, 2018
Curbing Carbon Emissions: Is a Carbon Tax the Most Efficient Levy?

Curbing Carbon Emissions: Is a Carbon Tax the Most Efficient Levy?

The ambitious environmental objectives of the Paris Agreement imply that, in order to curb carbon emissions, all cost-effective policy options should be considered. These options include carbon taxes, probably the most popular fiscal tool for curbing emissions, and various other taxes on fossil fuels. This study uses Spanish data to assess what are the optimal taxes on oil, natural gas and coal from a welfare perspective, and compares them with a carbon tax in a general equilibrium context.

June 15, 2017
Prices Versus Policy: An Analysis of the Drivers of the Fossil Fuel Energy Mix

Prices Versus Policy: An Analysis of the Drivers of the Fossil Fuel Energy Mix

Understanding how the composition of a country’s energy mix is formed in an environment where greater government involvement is anticipated due to climate change obligations is critical. This paper is part of a project analyzing drivers of the mix and the transition to a future energy mix where renewables will have a key role. This initial study considers the fossil fuel mix in the U.S., Germany and the U.K. by undertaking a macroeconomic analysis of the importance of prices relative to policy in shaping the mix for these economies over the last 35 years.

October 5, 2016
The Renewable Energy Policy Paradox

The Renewable Energy Policy Paradox

One major avenue for policymakers to meet climate targets is by decarbonizing the power sector, one component of which is raising the share of renewable energy sources (renewables) in electricity generation. However, promoting renewables in liberalized power markets creates a paradox.

September 8, 2016
Challenges for Widespread Renewable Energy Deployment

Challenges for Widespread Renewable Energy Deployment

Part of the policy strategy to avert the worst outcomes of global climate change is a transition to low carbon energy on an unprecedented scale. In particular, strong incentives are in place to promote the competitiveness of renewable energy technologies, stimulate their rapid uptake and displace fossil fuel power generation. In this paper we argue that the penetration of renewable energy into the power market can directly result in a price response of fossil fuels which in turn affects the relative competitiveness of renewable power generation, thereby reducing the rate of the renewable energy transition or increasing the cost of the policy support measures required to achieve it. The price response we hypothesise is distinct from the Green Paradox and Carbon Leakage theories, which in different ways address the effect of climate change policy on the extraction and use of fossil fuels. In order to assess the possible existence and scale of the problem, we identify a price response mechanism backed by standard economic theory, based on the specific characteristics of the fossil fuel markets considered, e.g., coal and natural gas.

June 1, 2016
Comparing Renewables Support Policies: Quantifying the Trade-Offs

Comparing Renewables Support Policies: Quantifying the Trade-Offs

Policies to support wind energy development are most effective when they deliver power at the lowest cost per unit of added capacity and per unit of delivered electricity. Our analysis uses real Spanish onshore wind project data to identify which approaches deliver the lowest cost to society.

December 24, 2015
Changing Competitive Landscape: Transition Policy’s Blind Spots

Changing Competitive Landscape: Transition Policy’s Blind Spots

For the past two to three decades, and particularly in the wake of the Great Recession, clean energy transitions have been sold as a three-for-the-price-ofone policy: creating “green collar” jobs to get the unemployed back to work, using domestic resources to reduce dependence on imported fossil fuels, and all while reducing carbon emissions. The first of two implicit goals of this “three-fer” was the development of local, high tech industries supported by policy-driven domestic demand for wind and solar equipment. These high tech industries would, in turn, deliver the second goal of driving down the costs of clean energy technologies to the point where they would no longer require policy support.

October 6, 2014

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