Basic income benefits cover recipients' actual heating expenses as long as they are not unusually high. In contrast, their electricity expenses are only covered via a lump sum at the standard rate. Thus, basic income recipients have weaker incentives for reducing their heating expenses than for reducing their electricity expenses. Using Socio-Economic Panel (SOEP) data, it can be seen that basic income households have higher electricity bills despite this incentive: On average, they spend five euros more on heating and nine euros more on electricity than comparable households not receiving basic income. These higher bills may be due to a lack of sufficient information about their expenses and ways to save energy, or they are unable to save due to non-energy efficient electrical appliances and longer attendance time at home. These interrelationships need to be taken into consideration when drawing up a climate policy that aims to provide savings incentives by increasing the CO2 price; such a policy can only be effective if households are able to react to price incentives. Thus, in addition to increasing the CO2 price, targeted subsidy programs for energy efficiency measures as well as information campaigns for households are needed. [ABSTRACT FROM AUTHOR]
Solar energy, Macroeconomics, Heat pumps, Natural gas, and Electricity
Abstract
Increasing the use of heat pumps is an important measure for reducing carbon emissions in the heating sector as well as natural gas imports. This report uses an electricity sector model to investigate the effects of an accelerated expansion of the heat pump stock on the German electricity sector in 2030. Adding around six million heat pumps would increase electricity demand by nine percent in 2030; to meet this demand with solar energy, photovoltaic capacity would have to be expanded by 23 percent. Natural gas imports could be reduced by 15 percent. From a macroeconomic perspective, the higher the price of natural gas, the more advantageous it becomes to increase the use of heat pumps. Accelerating the transition to heat pumps, however, requires an am bitious and coordinated policy program that also focuses on the production capacity of heat pumps and on providing advanced training to workers--a kind of "Apollo program" for heat pumps. [ABSTRACT FROM AUTHOR]
Conferences & conventions, International cooperation, Climate change mitigation, International cooperation on climate change, and Nuclear energy
Abstract
The upcoming Climate Change Conference in Paris will once again highlight the need for action to reduce global greenhouse gas emissions in order to mitigate climate change. The relevant global energy scenarios are often still based on the assumption that the expansion of nuclear power can contribute to climate change mitigation. The spiraling investment and operating costs of nuclear plants, the unresolved issues concerning the dismantling of these plants and permanent storage of nuclear waste, and the continuing lack of insurability against nuclear accidents make nuclear power extremely unattractive from an economic perspective. As a result, many nuclear power companies are facing financial difficulties. The nuclear renaissance was simply a fairy tale: the majority of the around 400 nuclear power stations currently in operation around the world are outdated and will still need to be dismantled after they have been decommissioned. The construction of new nuclear power plants is restricted to a small number of countries, predominantly China. DIW Berlin has modeled a number of scenarios toforecast European power supply up to 2050 and these show that, with a marked expansion of renewable energy sources, Europe can meet its climate targets without nuclear power. The proliferation of more cost-effective renewable energy technologies, particularly wind and solar power, can compensate for the anticipated decline in nuclear power. In a scenario that includes no new nuclear power plant construction at all, renewables account for 88 percent of powergeneration capacity. Nuclear power was not, is not, and never will be a sustainable energy source and is, therefore, unsuitable for an efficient climate policy. A transition to greater use of renewables is the more cost-effective option overall. [ABSTRACT FROM AUTHOR]
Investments, Physical distribution of goods, Electricity, Mathematical physics, and Gas distribution
Abstract
Since early 2009, electricity and gas distribution in Germany has been subject to incentive regulation designed to ensure greater efficiency in electricity and gas grid operation. However, it remains to be seen how changes to the regulatory framework will affect the investment behavior of distribution system operators. Against this background, the present study empirically analyzes the investment activities of distribution system operators for the period from 2006 to 2012. The key questions are whether the introduction of incentive regulation in 2009 has had an empirically demonstrable impact on investment and whether this effect is due to the introduction of incentive regulation per se, or to its specific design. The findings show a positive effect on investment since the introduction of incentive regulation which, in particular, is determined by the specific design of regulation. [ABSTRACT FROM AUTHOR]
Investments, Electric power production, Energy industries, Infrastructure (Economics), and Energy consumption
Abstract
For the European Union to keep on track with its energy and climate targets, large investments are required in electricity generation, infrastructure and energy efficiency. The electricity sector takes the center stage. This article delivers an overview of several estimates of the investment requirement in the European energy sector and estimates the total required investment expenditures until 2030. To ensure the financing of these investment expenditures, further adaptation of the legal framework in the European member states is necessary; even more importantly, the regulatory framework of cross-border infrastructure projects needs to be improved. [ABSTRACT FROM AUTHOR]