This paper uses a dynamic computable general equilibrium model to compare the macroeconomic and sectoral impacts of three environmental policies in Australia — an emissions trading scheme (ETS), an ETS combined with technological innovation in the renewable energy sector and a fuel tax as an...

This paper uses a new model of a competitive electricity market to investigate the role of storage in markets dominated by hydro generation. Competition among generators leads to an endogenous shadow price of stored water, which facilitates the efficient intra-day and inter-season substitution...

Much economic literature analyzes the Hotelling principal. Little economic literature analyzes the Hubbert curve although much controversy surrounds it. This difference in emphasis by economists needs to be reconsidered critically, and towards that end, we attempt to look at both concepts...

The aim of this paper is to show the benefit of applying a moment matching technique to the short leg component in order to price and hedge multi-asset spread options: in particular, we approximate the real dynamics of the short leg component by taking a log-normal proxy, whose equivalent...

This article models the dependence risk and resource allocation characteristics of two 20-stock coal–uranium and oil–gas sector portfolios from the Australian market in the context of the global financial crisis of 2008–2009. The modeling framework implemented consists of pair vine copulas...

In this paper, we present an alternative analysis framework to evaluate the effects of technology heterogeneities and undesirable output on environmental efficiency measurement. The proposed framework combines the directional distance function and a meta-frontier analysis. It can be used to...

Sustainable energy systems of the future will need more than efficient, clean, low-cost, renewable energy sources; they will also need efficient price signals that motivate sustainable energy consumption as well as a better real-time alignment of energy demand and supply. The Power Trading Agent...

In this article we examine the pricing of option contracts on the strategic petroleum reserve (SPR) and consider how these can be used by both the government and refiners. We analyze the interaction between the call and put option contracts, taking into account the underlying game, in the...

We decompose the contribution of five drivers of energy use and CO2 emissions reductions in achieving climate change goals over 2005–2100 for various climate policy scenarios. This study contributes to the decomposition literature in three ways. First, it disaggregates drivers of energy demand...

Like in the film Field of Dreams, the sentence “if you build it, he will come” also applies in power systems. In this sense, if a transmission planner suggests building some lines in anticipation of generation capacity investments, then it can induce generation companies to invest in a more...