Natural Gas Prices converging in Germany

This is the abstract of one the papers that i was happy to contribute as a co-author.The paper is being presented in the 3rd International Workshop in Empirical Method in Energy Economics, Surrey, UK. The paper has been co-authored with Dr. Christian Growitsch and Marcus Stronzik from WIK GmbH, Germany.
"In 2007, Germany changed network access regulation in the natural gas sector and introduced a so-called entry-exit system. The re-regulation’s effect on competitiveness remains to be examined. We use cointegration analysis and a state space model with time-varying coefficients to study the development of natural gas spot prices in the two major trading hubs in Germany. To analyse information efficiency in more detail, the state space model is extended to an error correction model. Furthermore, we compare prices in Germany to those at the nearby Dutch TTF, which thus serves as a competitive benchmark. Overall, our results suggest a reasonable degree of price convergence between the corresponding hubs; however, allowing for time-variant adjustment processes, the price differentials are only partly explained by transportation costs. Persistent price differences indicate capacity constraints; nonetheless, market efficiency in terms of information processing has increased considerably."
To read the preliminary version of the paper, you may visit the link:
http://www.seec.surrey.ac.uk/Events/EMEE2010Papers/EMEE2010PAPERGrowitschNepal&Stronzik.pdf

Proceedings of the ICE, Energy

This article has been co-authored with Prof. Tooraj Jamasb and Hande Kiamil.The article can be found online under the above journal heading. Here too, i am sharing the abstract of the paper.
"A sustainable waste management policy is necessary to manage the growing stream of municipal solid waste in ecologically sustainable ways. While landfill has been the dominant form of waste management in the UK there is a need to comply with the EU Landfill Directive. Waste to Energy (WtE) is a viable waste management option to reduce the reliance on landfills and reap the energy benefits of waste. Although the first waste-fired power plant was built in the UK in 1885, several barriers have constrained the use of WtE. This paper assesses the policy and institutional context for the development of the technology in the UK. We discuss how public opinion and choice of technology are important factors in achieving a wider acceptance of WtE in the UK. Thus, there is a need to devise coordinated policies at the regional and local levels concerning a sustainable waste management strategy. Furthermore, making all WtE technologies eligible for renewable obligation certificates (ROCs) could support the development of the technology while also diverting waste from landfills. The absence of efficient heat delivery networks is also identified as a barrier to fulfilling the potential for WtE in the UK."
This journal actually belongs to civil engineers but some economists have managed to sneak in though. For more information about the journal, please visit this site:
http://www.icevirtuallibrary.com/content/serial/ener

Resources, Conservation and Recycling

This is one of the papers written with Prof. Tooraj Jamasb which has been accepted for publication in the journal of Resources, Conservation and Recycling. At this point, i am sharing the abstract of the paper here:
"The growing stream of municipal solid waste (MSW) requires a sustainable waste management strategy. At the same time, addressing climate change and security of energy supply concerns requires increased use of low-carbon and domestic sources of energy. This paper assesses the economic and environmental aspects of waste management options focusing on waste to energy (WtE) as a renewable resource. We discuss how WtE and recycling are compatible as waste treatment options. The paper then presents a social cost-benefit analysis of selected waste management scenarios for the UK focusing on specific waste management targets and carbon prices and compares them with coal fired electricity. The results indicate that meeting the waste management targets of the EU Directive are socially more cost -effective than the current practice. The cost effectiveness improves substantially with higher carbon prices. The findings show that WtE can be an important part of both waste management strategy and renewable energy policy although achieving the full potential of WtE requires development of heat delivery networks."
For more information about the journal, please spare some minutes here:
http://www.elsevier.com/wps/find/journaldescription.cws_home/503358/description#description

Restructure the Power Sector

Two and a half decades have been forgone but the state-owned Nepal Electricity Authority (NEA) is still struggling ‘big time’ to deliver to its potential. This ‘wait and see’ principle in the power sector has accrued immense costs to the society throughout and is not forward looking at all. NEA’s performance is terribly low when gauged against basic energy indicators such as supply security and tariff rates given what can be achieved. High and persistent system losses, overstaffing, over-the roof- generation costs and high overheads are just some of the current problems facing NEA. Undoubtedly, the vertically-integrated power sector is a proven example of yet another failure story in the country. The ongoing planned power outages of 11 hours per day are certainly a wake-up call to restructure and remodel the electricity sector. Furthermore, the current model is not conducive towards a sustainable low carbon economy which every nation will have to eventually converge to in the future.

Rest of the article can be followed here: http://www.myrepublica.com/portal/index.php?action=news_details&news_id=14724

Illusive Copenhagen

'Too Few Promises despite aplenty hopes' was what marked the two week long climate extravaganga at Copenhagen early this month. Representatives from around 181 gathered to finalize a deal or at least lay a political framework towards a final deal post Kyoto Protocal which is set to expire in 2012. But, all in vain! Neither a binding deal on strict emission cuts for developed and industralized countries was realized nor any propoer agreement on the right amount of financial flows to be made to the poorer countries was materialized. Once again, politics emegrged invincible against science but at our own peril. The link below directs you the the article that i wrote for MYRepublica, a daily english newspaper in Nepal.
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=13368

The Kyoto Conundrums

The big show will be on this December. And, believe me I am not talking about Christmas here.Environmental delegates from 181 countries are meeting in Copenhagen to find a successor to the Kyoto Protocol. While an immediate consensus is very unlikely, the two week event is at least expected to lay out the political groundwork necessary in creating an international agreement on climate through meaningful cuts in emissions. Moreover, a current assessment on the success and failures of the Kyoto Protocol which is set to expire in 2012 can also be expected during this meet.Few points to note:
1) Having an international policy in place should not discourage the developing countries from meaningful capping of domestic emissions.
2) In the long run, climate change adaptation will hold no meanings if there is no mechanism for climate change abatement at a first place.
the link below should drag you for further information:
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=10636

It's getting hot in here

The sad truth about modern day capitalism is ‘profits are just solo and private while losses are all shared’. Globalization has certainly led to higher economic growth and significantly increased the standard of living of the rich/industrialized nations but at greater costs of reduced ‘life quality’ for everyone. This is always a bitter pill to swallow especially when you are not made responsible and accountable for your own losses. ‘Climate change’ is a similar issue that clearly epitomizes the dark side of today’s global production and consumption patterns. The natural environment that we live in at the moment is probably toxic while the air that we respire is just getting warmer with each passing day.

To access the full article, please play around with this link:
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=7077