India’s emerging fuel mix for 2050: actions and strategies to decarbonize the transport sector

Purpose This paper aims to review the role of government initiatives for developing clean fuels in India, decarbonize the transport sector and maximize the use of renewable sources of energy. India’s socio-economic prosperity is dependent on modern energy. The authors examine the role of biofuel in India’s emerging fuel mix. Design/methodology/approach A 20-year timeframe between 2000 and 2021 was set to learn about the subject and find the existing gaps. Of the 40 research papers, the authors found using keywords and delimiting criteria in the database, the authors have shortlisted 21 papers, which provided the theoretical framework for the study. Additionally, the authors used the government database to develop future projections using compound annual growth rate and trend analysis. Findings The study findings suggest that India should strictly implement the Biofuel Policy to promote indigenous production of biofuel to enhance affordability and accessibility. With blending options available with biofuels and biogas, the country can replace the right proportion of fossil fuel use by 2050. It will not only decrease India’s import dependence but also will create new job opportunities, specifically in tribal and remote locations and promote green energy mix. With emerging options like electric vehicle and hydrogen, the transport sector could be decarbonized to a greater extent. Social implications Indigenous cleaner fuel adoption and transport sector will generate additional employment and cut down fossil fuel import. Financial savings through reduced fossil fuel import will be directed toward social development. Originality/value The paper carries out critical analysis for the active use of modern green fuels in the present and coming days. Such unique analysis must help India to balance its energy basket.

Are the macroeconomic effects on oil price asymmetric? An asymmetric quantile regression approach

Purpose This paper aims to contribute to the clarification of whether the dependence and causality between oil and the macrofundamentals change across different quantiles of the distribution function. Design/methodology/approach Within the context of an asymmetric quantile approach, we drop the assumption that variables operate at the upper tails of the distribution in the way that they operate at the mean. Findings Our innovative approach indicates that the response of oil prices not only differs according to the underlying source of the variables shock but also differs across the quantiles. Originality/value Although a number of recent studies are closely related to our present research, our novel findings offer some important insights that foreshadow the empirical results. The current research addresses to answer the following questions, in sequence: (i) Is there any extreme value dependence between the crude oil and macroeconomic variables? If yes, (ii) is the dependence symmetric or asymmetric? Finally, (iii) can this dependence be driven by the phases of the economic cycle?

Purchase intention of Indian customers: a study on solar PV technology

Purpose With the growing acceptance of renewable energy sources in the world, new energy sources are pursued and investigated by customers. In India, residential PV technology is in an early stage of development and very less in demand among households. Therefore, the purpose of this study is to identify the major variables and its impact on customers purchase intention towards solar PV technology, especially in the context of central India. Design/methodology/approach Based on literature reviews, this study identifies six major independent variables having a relationship with purchase intentions. Using convenience sampling method, 413 customers’ data has been collected by the researcher and was investigated through structural equation modelling, using SmartPLS 2.0 and SPSS-20 software. Findings The study findings suggested that the construct promotional strategies, societal influence, customer awareness and government initiative plays an important role in generating customers purchase intention towards solar PV technology. While the constructs environmental concern and availability & cost having relationship, showed insignificant influence. Research limitations/implications The study outcomes provide some valuable insights to the government and policymakers in designing their policies and strategies to increase customer involvement in solar PV technology. This study suggested that the service providers need to offer more benefits in the form of subsidies and schemes that motivate customers to willingly show their purchase intention. Originality/value The major contribution of this study is the empirical analysis of six independent variables, which affects the customer purchase intentions towards solar PV technology over available conventional energy sources in an emerging Indian market.

The causative relationship between natural resource rent and economic growth: evidence from Ghana’s crude oil resource extraction

Purpose While the relationship between natural resource rent and economic growth is well documented in the literature, not much robust analysis has been done to estimate the causative relationship between oil resource rent and economic growth in Ghana. This might be due to the fact that commercial production of crude oil started not long ago in Ghana. This paper aims to examine the causal relationship between oil resource rent and economic growth for the period of 2011 to 2020 in Ghana. Design/methodology/approach The study incorporates economic growth as a function of oil resource rent, non-oil revenue, foreign direct investment, capital and interest rate in a Cobb–Douglass production function/model. The study used four different estimation strategies including the autoregressive distributed lags model, Toda–Yamamoto test approach, nonlinear autoregressive distributed lags model and nonlinear Granger causality. Findings The main finding revealed that 1% increase in oil resource rent generates 0.84% increase in economic growth of Ghana in the long run. Contrary, the authors find an insignificant positive effect of oil resource rent on economic growth of Ghana in the short run for the period under study. The result from the Toda–Yamamoto test approach also showed a unidirectional causality running from oil resource rent to economic growth of Ghana, providing evidence in support of the resource blessing hypothesis in Ghana. The results are robust to two different alternative estimation strategies. Originality/value The causal relationship between crude oil resource rent and economic growth is examined.

Agri-pellets as alternative fuels for coal-fired power plants in Canada

Purpose Lignite coal-fired power plants are the main electricity generators in the province of Saskatchewan, Canada. Although burning lignite coal to generate power is economical, it produces significant greenhouse gases making it a big challenge to Canada’s international commitment on emission reduction. However, abundant agricultural crops and sawdust produced in Saskatchewan put the province in a good position to produce and use agri-pellets as an alternative fuel to generate electricity. This study aims to conduct an economic and environmental analysis of the replacement of lignite coal by agri-pellets as the fuel for Saskatchewan’s coal-fired power plants. Design/methodology/approach The study estimates the economic and environmental costs and benefits of two alternative fuels for power plants. The economic analysis is based on the pellet production and transportation costs from farms to production sites and from the production sites to power plants. In the production process, biomass precursors are densified with and without additives to produce fuel agri-pellets with appropriate mechanical durability and high heating value per volume unit. The environmental analysis involves estimation of greenhouse gas emissions and their social costs for lignite coal and different types of agri-pellets under different scenarios for pellet production and transportation. Findings The results show that although the total cost of electricity is lower for coal than agri-pellets, the gap shrinks when social costs and specifically a carbon price of $50/tonne are included in the model. The cost of electricity in lignite coal-fired power plants would also be on par with agri-pellets-fired power plants if the carbon price is between U$68 and $78 per tonne depending on the power plant locations. Therefore, a transition from coal to agri-pellet fuels is feasible if a high-enough price is assigned to carbon. The method and the results can be generalized to other places with similar conditions. Research limitations/implications There are a few caveats in this study as follows. First, the fixed costs associated with the transformation of the existing coal-fired power plants to pellet-fired plants are not considered. Second, the technological progress in the transportation sector, which would favor the net benefits of using pellets versus coal, is not included in the analysis. Finally, the study does not address the possible political challenges facing the transition in the context of the Canadian federal system. Practical implications The study results indicate that the current carbon price of $50 per tonne is not sufficient to make the agri-pellets a feasible source of alternative energy in Saskatchewan. However, if carbon pricing continues to rise by $15 annually starting in 2022, as announced, a transition from coal to agri-pellets will be economically feasible. Social implications Canada is committed to reduce its emission according to the Paris agreement, and therefore, needs to have a concrete policy to find alternative energy sources for its coal-fired power plants. This study examines the challenges and benefits of such transition using the existing agri-pellet resources in Saskatchewan, a province with abundant agricultural residues and coal-fired power plants. The findings indicate that a significant emission reduction can be achieved by using agri-pellets instead of coal to produce electricity. The study also implies that the transition to renewable energy is economical when social costs of carbon (carbon tax) is included in the analysis. Originality/value As far as the authors know, this is the first study providing a socio-economic analysis for a possible transition from the coal-fired power plants to a more clean and sustainable renewable energy source in one of the highest carbon dioxide (CO2) producer provinces in Canada: Saskatchewan. The study builds upon the technical production of three agri-pellets (oat hull, canola hull and sawdust) and estimates the economic and environmental costs of alternative fuels under different scenarios.

Impact of hydropower consumption, foreign direct investment and manufacturing performance on CO2 emissions in the ASEAN-4 countries

Purpose The continuous increase in the discharges of carbon emissions (CO2) in the global atmosphere and the likely negative consequences of this practice on the atmosphere draw the attention of researchers and policymakers to argue on the causes and perpetrators of CO2 emissions. This paper aims to examine the impacts of hydropower consumption, FDI and manufacturing performance on CO2 emissions in the Association of southeast Asian nations (ASEAN)-4 countries. Design/methodology/approach The study uses the data on variables, such as hydro-power consumption, FDI, manufacturing value added and CO2 emissions spanning the period 1980–2015. Autoregressive Distributive Lag Bound test approach was used to assess the relationships among the variables. Findings The long run estimation of elasticities for all the countries indicates that the coefficient of hydro power consumption was found to be significantly related to CO2 emissions only in Malaysia. Additionally, the coefficients manufacturing performance were found to be significant in influence the amount of CO2 emission in all the ASEAN-4 countries. Furthermore, the coefficients of FDI inflows were found to be significant in explaining CO2 emissions in Malaysia and the Philippines, respectively. In the short run, the estimated results show that all the variables were found to be significant in explaining CO2 emissions in the countries under study. Research limitations/implications Singapore is excluded from the ASEAN-4 due to insufficient data on hydro energy consumption. Practical implications The study recommends that as Hydro power energy is a clean source of renewable electricity. Its consumption indicates a negative relationship with CO2 emissions. The countries should emphasize more on the use of hydro source of energy than the other sources which increase the rate of CO2 emissions in the atmosphere. Originality/value As most of the relevant previous studies did not consider the simultaneous impact of hydro energy consumption, FDI and manufacturing value added on CO2 emissions in the ASEAN-4, this study is an important contribution to the existing relevant literature.

The role of demand response in residential electricity load reduction using appliance shifting techniques

Purpose Some of the major concerns since the implementation of smart meters (prepaid meters) in some parts of Ghana is how electricity consumers have benefited from data obtained from these meters by providing important statistics on electricity-saving advice; this is one of the key demand-side management methods for achieving load reduction in residential homes. Appliance shifting techniques have proved to be an effective demand response strategy in load reduction. The purpose of this paper is therefore to help consumers of electricity understand when and how they can shift some appliances from peak to off-peak and vice versa. Design/methodology/approach The research uses an analysis technique of Richardson et al. (2010). In their survey on time-of-use surveys to determine the usage of electricity in households as far as appliance shifting was concerned, this study allowed for the assessment of how the occupants’ daily activities in households affect residential electricity consumption. Fell et al. (2014) modeled an aggregate of electricity demand using different appliances (n) in the household. The data for the peak time used in this study were identified from 05:00 to 08:00 and 17:00 to 21:00 for testing the load shifting algorithms, and the off-peak times were pecked from 10:00 to 16:00 and 23:00. This study technique used load management considering real-time scheduling for peak levels in the selected homes. The household devices are modeled in terms of controlled parameters. Using this study’s time-triggered loads on refrigerators and air conditioning systems, the findings suggested that peak loads can be reduced to 45% as a means of maintaining the simultaneous quality of service. To minimize peak loads to around 35% or more, Chaiwongsa and Wongwises (2020) have indicated that room air conditioning and refrigerator loads are simpler to move compared to other household appliances such as cooking appliances. Yet in conclusion, this study made a strong case that a decrease in household peak demand for electricity is primarily contingent on improvements in human behavior. Findings This study has shown that appliance load shifting is a very good way of reducing electrical consumption in residential homes. The comparative performance shows a moderate reduction of 1% in load as was found in the work done by Laicaine (2014). The results, however, indicate that load shifting to a large extent can be achieved by consumer behavioral change. The main response to this study is to advise policymakers in Ghana to develop the appropriate demand response and consumer education towards the general reduction in electrical load in domestic households. The difficulty, however, is how to get the attention of consumer’s on how to start using appliances with less load at peak and also shift some appliances from off-peak times. By increasing consumer knowledge and participation in demand response, it is possible to achieve more efficiency and flexibility in load reduction. The findings were benchmarked with existing comparison studies but may benefit from the potential production of structured references. However, the findings show that load shifting can only be done by modifying consumer actions. Research limitations/implications It should be remembered that this study showed that the use of appliances shifting in residential homes results in load reduction benefits for customers, expressed as savings in electricity prices. The next step will be to build on this cost/benefit study to explain and measure how these reductions transform into net consumer gains for all Ghanaian households. Practical/implications Load shifting will include load controllers in the future, which would automatically handle electricity consumption from various appliances in the home. Based on the device and user needs, the controllers can prioritize loads and appliance usage. The algorithms that underpin automatic load controllers will include knowledge about the behaviors of groups of end users. The results on the time dependency of activities may theoretically inform the algorithms of automatic demand controllers. Originality/value This paper addresses an important need for the country in the midst of finding solutions to an unending energy crisis. This paper presents demand response to the Ghanaian electricity consumer as a means to help in the reduction of load in residential homes. This is a novel research as no one has at yet carried out any research in this direction in Ghana. This paper has some new information to offer in the field of demand in household electricity consumption.

Do village leaders’ engagement, social interaction and financial incentive affect residents’ solar PV adoption? – an empirical study in rural China?

Purpose This study aims to analyze those factors affecting the rural resident’s willingness to adopt solar photovoltaic (PV) which is important for accelerating the popularization of clean energy in China. Design/methodology/approach This study contained a sample of 653 households in 8 provinces/regions by stratified, and random sampling in rural China. Descriptive analysis, exploratory factor analysis and confirmatory factor analysis techniques have been used for analytical purposes. Findings The empirical results indicate that financial incentive and social interaction have positive effects on rural residents’ adoption willingness, while village leaders’ engagement can indirectly influence their adoption willingness through social interaction and residents’ cognition. Research limitations/implications This study mainly considers external and internal factors but ignores the effect of technical factors. In addition, the samples are just selected from the residents who have adopted solar PV. Practical implications This study is expected to be useful for the government, regulators, village leaders, village leaders and other institutions. Originality/value This study conducts a systematic analysis and clarifies the relationship between factors (external and internal) and rural residents’ adoption willingness. The village leaders’ engagement is first added to the conceptual model as an external factor, which is very essential in rural residents’ adoption in China.

Dynamic linkages among international crude oil, exchange rate and Norwegian stock market: evidence from ARDL bound testing approach

Purpose The purpose of this paper is to examine the long-run association and short-run causality among oil price, exchange rate and stock market in Norwegian context. Design/methodology/approach This work uses auto regressive distributed lag (ARDL) bound co-integration test to examine the long-run association among international crude oil, exchange rate and Norwegian stock market. Further to test the causality, Toda–Yamamoto Granger causality test is used. Daily data ranging from 1 January, 2011 to 31 December, 2018 is used in this study. Findings Findings of this study suggest the existence of long-run equilibrium relationship among oil price, exchange rate and Norwegian stock market when oil price is taken as dependent variable. Further, this study observes the bi-directional causality between Norwegian stock market and exchange rate and unidirectional causality between oil and Norwegian stock market (from oil to stock market). Originality/value To the best of the authors’ knowledge, this the first study in context of Norway to explore the long-run association and causal relationships among international crude oil price, exchange rate and stock market index. Particularly, association of exchange rate and stock market largely remains unexplored for Norwegian economy. Further, majority of studies conducted in Norwegian setup have considered the period up to year 2010 and association of these variables is found to be time varying. Finally, this study uses ARDL bound co-integration test and Toda–Yamamoto Granger causality test. These methodologies have been used in literature in context of other countries like India and Mexico but not yet applied to study the Norwegian case.

Synergy between sectoral output, energy and CO2 emission: a panel cointegration analysis of South Asia

Purpose The purpose of this study is to investigate the synergy between sectoral output, energy use and CO2 emission with other factors for a panel of South Asian economies including Afghanistan, Bangladesh, Bhutan, India, Pakistan, Maldives, Nepal and Sri Lanka. Design/methodology/approach The analysis is done using annual panel data from 1980–2019 using dynamic ordinary least squares (DOLS), fully modified OLS (FMOLS) and Toda-Yamamoto techniques. Findings Empirical findings reveal the existence of a statistically significant long-run cointegrating relationship between energy use, sectoral output such as agricultural, industry and service gross domestic product (GDP), globalization, urbanization and CO2 emission. DOLS and FMOLS result posits that in the case of the South Asian region agriculture GDP does not contribute to increasing CO2 emission while service and industrial GDP is responsible for increasing CO2 emission along with urban population, energy use and to some extent globalization. More remarkably, the contribution of the service GDP is greater than the other two sectoral outputs in increasing CO2 emission with a feedback hypothesis. Practical implications As CO2 emission is a global phenomenon with a cross-boundary effect, these empirical findings might contribute to formulating implementable energy and environmental policies to sustain growth, as well as to protect the environment in the regional context. Originality/value The study contributes to the literature by providing an empirical investigation of South Asia incorporating the contribution of sectoral output to understand the potential contribution of each sector on energy and emission. This is the first study on the South Asian context from the perspective of sectoral output, energy and emission.