Mark A. Bernstein

Regional Differences in the Price-Elasticity of Demand For Energy

At the request of the National Renewable Energy Laboratory (NREL), the RAND Corporation examined the relationship between energy demand and energy prices with the focus on whether the relationships between demand and price differ if these are examined at different levels of data resolution. In this case, RAND compares national, regional, state, and electric utility levels of data resolution. This study is intended as a first step in helping NREL understand the impact that spatial disaggregation of data can have on estimating the impacts of their programs. This report should be useful to analysts in NREL and other national laboratories, as well as to policy nationals at the national level. It may help them understand the complex relationships between demand and price and how these might vary across different locations in the United States.

Impact of pollution controls on the productivity of coal-fired power plants

Abstract This paper contains estimates of the effect of sulphur dioxide emission restrictions on the efficiency of generating electricity from coal. Measures of generation efficiency of coal-fired power plants built since 1970 are derived using a best-practice frontier methodology. The efficiency scores are then used to evaluate the effects of regulations using plant operations data from 1984. This analysis reveals that environmental regulations have altered the productivity of producing electricity from coal. The effect of plant size on operational efficiency differs in plants with flue gas desulphurization systems (FGD scrubbers) as compared to those plants with no pollution controls. We also show the impacts of further decreasing the surphur output levels of plants on operational efficiency.

The costs of completing unfinished US nuclear power plants

Abstract There has been considerable debate in the USA over the relative costs of completing those nuclear generating units currently under construction. What are the regional costs associated with completing nuclear units and are there cheaper alternatives? A cost-benefit analysis is performed to assess the costs of completing unfinished nuclear capacity. We find that in most regions of the USA finishing the units is not the least-cost supply alternative. In fact in many regions, there will be no demand for the power before the year 2000. State regulators should take these estimates into account when determining the fate of individual units.

Energy development, regional cooperation, and CO2 emissions in Central America

Abstract For the countries of Central America, international cooperation in the area of global warming has sharpened the economic growth v environmental protection tradeoff. This paper simulates two energy futures for Central America as a region: a minimum cost (maximum development) scenario and a minimum CO 2 emissions scenario. The tradeoffs between these two scenarios identify a frontier demonstrating the costs of cutting carbon emissions in Central America. As these costs are relatively low, Central America can use them to negotiate treaties, agreements, and eventually the sale of carbon emission rights to countries or companies facing more expensive carbon reduction strategies.

May Cooler Tempers Prevail: Let Technology Reduce Hot Air Over Global Warming

Regardless of the merits of emissions targets, the heated debate surrounding them has threatened to derail progress on a much more effective and less contentious first step: developing cleaner technologies to harness the alternative energy sources that could serve us well whatever the future might bring. Efforts to develop new technologies will likely have little effect on the very-near-term emission of greenhouse gases allegedly responsible for global warming. But what really matters is how fast we can improve the alternatives to current fossil fuel systems and how readily those alternatives can be adopted throughout the world.

Issues in Measuring the Productivity of Electric Utilities

Abstract This study compares empirically various measures of performance of electric utilities and determines whether there are significant differences in the measures. Data of electric utilities in four countries in Northeast and Southeast Asia were used to calculate the four measures: the Fisher geometric total factor productivity (TFP) index, Tomqvist-Theil bilateral translog TFP index, multilateral translog TFP index, and the Best Practice Frontier Analysis (BPFA) efficiency scores. The indices obtained were then regressed against technical performance variables (load factor, transmission and distribution losses, thermal efficiency, thermal generation share, plant factor and demand density) and country dummy variables. The results show that the bilateral and geometric indices were quite similar, while significant differences were observed when comparing either index with the multilateral index or the BPFA scores. The study therefore suggests that one needs to be careful in using just one type of measure to compare productivity of utilities, since different types of productivity indices give varying interpretations. Further detailed investigation based on the theoretical framework is being carried out to determine which type of index would be most appropriate for use in comparing performance of electric utilities.