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ID:
166395
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| Summary/Abstract |
This paper examines the impact of climate variability and change (CV&C), and energy policies on the future energy system in Australia. Scenarios were developed to represent CV&C impacts and policy options, which were analysed with the Long-range Energy Alternative and Planning system for the period 2010–2050. The results indicate that although energy demand is likely to increase threefold in the business-as-usual scenario, CV&C further increases demand to 150 petajoule. A combined policy option involving modal shift and penetration of electric and hydrogen fuel cell vehicles results in a 49–53% decrease in transport fuel demand and emissions. The economic analysis reveals a substantial decline in sales revenue and increase in generation costs due to CV&C impacts. Higher renewable energy integration results in lower wholesale electricity prices across independent electricity markets. Cumulative cost-benefit analysis indicates that economic benefits increase to US$4.9 trillion in an advanced renewable energy scenario. Emissions and energy consumed increased under climatic conditions, but decreased after policy intervention. Ignoring the influence of CV&C may result in underestimation of future energy demand and installed capacity in Australia. Therefore, energy and climate policies should consider long-term economic benefits over short-term system costs.
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| 2 |
ID:
186455
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| Summary/Abstract |
Understanding the dynamic behaviour of Sub-Saharan African households as they move along the energy ladder is essential for the energy transition in developing countries. This study applies Fixed and Random effect panel data models to analyse the drivers of rural and urban households' energy transition in Nigeria from 2010 to 2018. The estimation results from the panel models with robust standard errors show that rural households tend to increase their expenses on fuel sources that potentially substitute the energy source whose prices have increased. However, there is no significant relationship between the price and expenditure on different fuels in urban households. Irrespective of spatiality, we find that aside from income – education, household size, and internet access are essential drivers of household fuel choices. More importantly, we find evidence of reverse energy transition. We argue that this reverse energy transition limits the shift to cleaner fuels and increases the economic vulnerabilities of rural households. Our analysis also reveals that Nigerians’ preference for fuels is shifting to be price inelastic. We make a strong case for policies and interventions that raise household income, empower women, reduce the cost of living, and improve clean and affordable energy access to encourage energy transition.
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