Does renewable energy policy increase energy intensity? Evidence from the ECOWAS region

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maman Ali M. Moustapha ◽  
Qian Yu ◽  
Benjamin Adjei Danqauh

Purpose The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the difference-in-difference (DID) and the propensity score matching methods (PSM). Based on the current debates on renewable energy policies (REP) and due to the fact that energy efficiency has been a challenge for ECOWAS member states. The authors set up a framework to assess the EREP effect on energy intensity. Design/methodology/approach Using the DID and PSM approaches the paper assesses the effect of EREP on energy intensity. The following three different paths are considered: Path 1 tests the EREP effect on electricity access. Path 2 tests the use of renewable energy sources as a factor to enhance the energy intensity. Path 3 tests whether or not use of renewable energy deployment has the potential to raise the total percentage of primary energy supply. The principle is to investigate if and to what extend the EREP increases the energy intensity. Findings The results indicate that EREP has a significantly positive effect on increasing the percentage of energy intensity in ECOWAS member states that has implemented the policy, resulting for a large percentage of the population to electricity access in treated groups. Empirical estimation results largely corroborate the three paths’ hypotheses. The result indicated that the EREP has increased the percentage of electricity access throughout the region. Originality/value The paper explores a more appropriate framework to examine the effect of EREP and enriches the literature on the impact of REP by combining a policy evaluation approach (PSM-DID) method. This paper is the first to the knowledge to estimate the EREP effect by using a non-parametric approach. The majority of previous studies have focused on using case studies, exploratory analysis approaches and econometric methods.

foresight ◽  
2018 ◽  
Vol 20 (5) ◽  
pp. 527-553
Author(s):  
Ferdy Novianto ◽  
Sumartono Sumartono ◽  
Irwan Noor ◽  
Lely Indah Mindarti

Purpose This paper aims to examine the effect of communication, resources, disposition and bureaucratic structure to the success of energy subsidy policy, to examine the effect of moderation of variable scenario of renewable energy policy on the influence of communication, resources, disposition and bureaucracy structure on the success of energy subsidy policy. Design/methodology/approach This study was purposively (based on specific objectives) conducted in Jakarta, which is associated with the implementation and subsidy policy scenario, the study focused on the center of government, namely, the capital city, Jakarta. Collection of data in this research survey was conducted in June-August 2017. The sampling technique was proportional stratified random sampling that took up most of the 770 members of Masyarakat Peduli Energi dan Lingkungan and Masyarakat Energi Terbarukan Indonesia using a representative sample of results that have the ability to be generalized. Based on the formula Slovin (Solimun and Fernandes, 2017), a sample of 145 respondents was obtained. The research approach used was a quantitative with the analysis tool called the generalized structure component analysis. Findings This paper exhibited that all relationships between variables have a p-value of 0.05 except the third moderation and fourth moderation relationship. So it can be said that all relationships between variables are significant except the relationship between the variables of moderation to the relationship between the disposition variable (X3) on the successful implementation of subsidy policy (Y) and the relationship between the moderation variable to the relationship between bureaucracy structure variable (X4) to the successful implementation of subsidy policy. Originality/value The originality of the research refers to the following: The Policy Theory described by Edwards III (1980), and reinforced by the findings of Ratminto and Winarsih (2005), and Bloom et al. (2009), that communication, resources, dispositions and bureaucratic structures affect the success of the energy subsidy policy. This becomes the formulation of a hypothesized research problem whether communication, resources, disposition and bureaucratic structure affect the success of the energy subsidy policy. In fact, the conditions in Indonesia are quite different from the Western world, and the system in Indonesia has embraced subsidies. Therefore, this study also examines the moderating effects of renewable energy policy scenarios in the relationship between communication, resources, dispositions and bureaucratic structures on the success of the subsidy policy energy. Given that there is no strong theory that examines the effects of moderation of these four factors on the success of the energy subsidy policy. Therefore, as the development of Edward III Theory, this study examines the proposition of whether renewable energy policy scenarios reinforce or weaken (moderation effects) on the effects of communication, resources, dispositions and bureaucratic structures on the success of energy subsidy policies.


2016 ◽  
Vol 10 (3) ◽  
pp. 427-447 ◽  
Author(s):  
Marijke Welisch ◽  
Gustav Resch ◽  
André Ortner

Purpose The purpose of the paper is to provide estimation results for feasibility of renewable energy source (RES) deployment in Turkey, the Western Balkans and North Africa. From these results, the potential for cooperation in renewables production between the countries and the European Union (EU) is assessed and evaluated, in a mid- (2030) and long-term (up to 2040) perspective. Design/methodology/approach The authors focus on the quantitative assessments undertaken on the extent to which RES cooperation can create mutual benefits, identifying costs and benefits for both sides, but in particular with respect to RES target achievement (2020 and 2030) at EU level. The potentials for RES generation in Turkey, North Africa and the Western Balkans are calculated under different policy pathways, taking into account different levels of economic and non-economic barriers that could occur. Findings Overall, the authors found that increasing RES deployment in the three analysed regions and initiating or intensifying cooperation with EU28 Member States leads to mutual benefits. Concretely, these benefits become apparent in terms of the EU Member States importing renewable energy sources for electricity with a good resource quality and adding on to their targets for RES deployment. At the same time, substantial savings occur for the EU, in turn leading to income and investments in the cooperating regions. Originality/value The assessment underlying this paper is the first of its kind to the authors’ knowledge that opens up the geographical spread in comparison to merely assessing cooperation between Europe and the Middle East and North Africa. Furthermore, the multitude of policy parameters analysed provides detailed and robust insights concerning a broad variety of different possible scenarios.


2019 ◽  
Vol 16 (4) ◽  
pp. 379-406 ◽  
Author(s):  
Alex Rialp-Criado ◽  
Seyed Meysam Zolfaghari Ejlal Manesh ◽  
Øystein Moen

Purpose This paper aims to elaborate on the crucial effects that a seemingly detrimental policy change in Spain has had on the international entrepreneurial activities of domestic renewable energy (RE) firms. Design/methodology/approach Primary data were collected from nine RE companies in Spain and then triangulated with secondary data and interviews from informants in other local institutions. Findings Domestic RE firms, due to an institutional scape driver action, reacted to an increasingly uncertain and generally more adverse renewable energy policy framework in this country by preferring to internationalise towards foreign markets that had lower political uncertainty than the domestic one. Research limitations/implications This paper complements previous research primarily on firm-specific factors that enhance internationalising firms’ survival and growth through a focus on the impact of a changing institutional-political environment at the home country-level. Practical implications Practitioners in the RE sector should analyse the risk of focusing only on the home market, as it can be too dependent on uncontrolled variations in domestic energy policy. Social implications The findings indicate that a more stable and supportive, long-term perspective in the domestic RE policy is essential for the sustained growth and development of this emerging industry. Originality/value To analyse the strategy by which a number of purposefully selected companies were able to use international expansion as a survival-seeking strategy against a drastic policy-level change in the domestic RE market.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Innocent Okwanya ◽  
Abdulkareem Alhassan ◽  
Job Pristine Migap ◽  
Simon Adeka Sunday

Purpose This study aims to examine the effects of policy incentives and cost on the choice and use of renewable energy in North-Central Nigeria. Design/methodology/approach The data for this study are collected from a sample of 290 respondents drawn from across 6 states in North-Central Nigeria, including the Federal Capital Territory. This study uses descriptive statistics and multinomial logistic regression to analyze the data. Findings The findings reveal that there is a huge potential demand for renewable energy sources (particularly solar photovoltaic) in the rural communities in Nigeria. It also indicates a positive and highly significant relationship between the level of awareness, availability and income and the use (consumption) of renewable energy sources among the rural communities. Furthermore, the cost of installation and maintenance of renewable energy, its reliability and availability are significant determinants of renewable energy choices among rural inhabitants in Nigeria. Practical implications The authors submit that inefficient policy strategies, high cost of installation and lack of awareness remain the major hindrances to the use of more efficient renewable energy sources. From a policy point of view, a viable strategy for effective use of renewable energy sources is the involvement of government, development partners and agencies for the funding of renewable energy technology in the rural sector of the country. The usage of modern renewable energy would increase if policy incentives are aimed at covering parts of the maintenance and installation cost of renewable energy users. The authors recommend that apart from creating awareness on the benefits of renewable energy, policymakers should provide a desirable policy environment for private energy firms to supply renewable energy at an affordable cost to the rural communities in Nigeria. Social implications A majority of the rural households in Nigeria, as shown in this article, are poor and therefore use firewood as their main source of cooking energy because of the cost of renewable energy. Originality/value Despite the abundance of renewable energy sources and government effort at improving renewable energy use, more than 15 million people live without access to electricity and 54 million are without modern energy services for cooking and lightening in Nigeria. A total of 61% of these people live in rural areas. Therefore, this study is novel in providing energy policy insights for rural communities in North-Central Nigeria.


2016 ◽  
Vol 10 (3) ◽  
pp. 337-362 ◽  
Author(s):  
Charikleia Karakosta ◽  
Aikaterini Papapostolou ◽  
Phaedra Dede ◽  
Vangelis Marinakis ◽  
John Psarras

Purpose This paper aims to explore Turkey’s current energy status with a on renewable energy sources (RES) cooperation mechanisms, within the framework of RES Directive 2009/28/EC. The study uses the SWOT (strengths, weaknesses, opportunities, threats) analysis for drawing results about perspectives of RES cooperation between Turkey and European Union (EU) Member States. In particular, the SWOT analysis provides a clearer view of expanding RES in Turkey, as well as the level of utilization and potential of cooperation mechanisms and renewable energy in the country. Design/methodology/approach The approach followed incorporates desktop analysis, stakeholders’ mapping and involvement, key factors’ identification and results analysis and validation. The adopted approach is based on research conducted within the context of the “Bringing Europe and Third countries closer together through renewable Energies (BETTER)” (project number: IEE/11/845/SI2.616378) project, co-financed by the Intelligent Energy Europe Programme. Findings Based on the SWOT analysis conducted for Turkey, there are huge opportunities for RES deployment and cooperation in the country, because of its large unexploited RES potential. Turkey is a country with strategic importance, e.g. regarding energy security. Substantial savings can occur for the EU28 Member States through this cooperation, whereas Turkey will also benefit through income and investments, as well as technology transfers and further synergies associated with the cooperation. For the above potentials to be reached, nevertheless, national policies for RES development would have to be strengthened substantially, and non-economic barriers mitigated. Originality/value The potential of Turkey to utilise cooperation mechanisms provides opportunities for RES exporting between the country and EU countries. An analysis of these opportunities for cooperation will allow drawing clearer conclusions on cooperation potentials and business cases for Turkey.


Water ◽  
2020 ◽  
Vol 12 (12) ◽  
pp. 3542
Author(s):  
Paweł Tomczyk ◽  
Mirosław Wiatkowski

Hydropower in Europe is playing an increasingly important role as a renewable source of energy. Its share of the final energy consumption varies from country to country, posing different challenges in each. The European Union member states are obliged, according to energy policy, to increase the share of renewable energy. This article presents the challenges related to the development of hydropower in four countries with different shares of domestic electricity production from hydropower plants: Albania (100% share in 2019), Slovenia (25.7%), Poland (1.1%), and Estonia (0.3%). Particular attention is paid to the issues of rational management of water resources in connection to Europe’s energy policy. As a result of the case study analysis, the challenges in the development of hydropower are identified, as well as ways to solve them. In addition, a comprehensive analysis of the impact of social, economic, environmental and climate change factors on the development of hydropower was conducted. At present, whether the assumed goals of the European Union’s energy policy will be achieved is impossible to determine for the whole of Europe. Achieving these goals will be possible only after individual countries prepare comprehensive reports on the topics of renewable energy sources, including hydropower.


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