The roles of Policy Blas Mola-Yudego

Transcription

1 The roles of Policy Blas Mola-Yudego Bioenergy markets and policies Lignoselluloosabiomassat ja niiden energiakäyttö (6 ECTS)

2 Policy A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and is implemented as a procedure or protocol. Policies are generally adopted by the Board of or senior governance body within an organization where as procedures or protocols would be developed and adopted by senior executive officers. distributive, redistributive, regulatory and constituent Lowi, T. J. (1964). American business, public policy, case-studies, and political theory. World politics, 16(04),

3 Why policy?

4 Discussion Reasons to support bioenergy production Reasons not to support bioenergy production

5 The role of Policy

6 Bioenergy bioenergy is this

7 Bioenergy bioenergy is this Energy Mix

8 Transitions Natural Science Technology Biology Engineering Social Science Economics Social studies Policy making

9 Transitions & Economy normal good or commodity: direct benefit public good: indirect benefit externalities Properties: a) non-rival. consumption of the good by one individual does not reduce the amount of the good available for consumption by others. b) non-excludable. it is not possible to exclude individuals from the good's consumption a) no directly reflected in the market prices b) non-evitable by whom gets benefit or suffers from its effects

10 The role of externalities in forestry - Changes on climatic conditions in the nearby areas - Changes on general climatic condictions (CO2 pool) CO2 markets? market price CO2 tn? - Soil conservation Soil losses: ~27 EUR/ha yr (in Spain, 1998 prices) Potential Risks: ~24 EUR/ha yr (insurance companies est.) - Water quality: EUR/m EUR/m3 - Dams: 2.5-4% profitability investment - Landscape - Biodiversity -

11 The role of externalities in forestry Externalities play an important role in forestry Example: a reforestation Pinus radiata plantation Profitability: 4.5% (normal good) Profitability including public goods and externalities: 6.18% plus job generation: 7.13%

12 How?

13 Policy Policy and Bioenergy Environmental Policy Agricultural Policy Energy Policy

14 Policy objectives: renewable energy

15 Policy objectives: sets demand Pelkonen, P., Mustonen, M., Asikainen, A., Egnell, G., Kant, P., Leduc, S., & Pettenella, D. (2014). Forest Bioenergy for Europe. Joensuu, Finland: European Forest Institute (EFI).

16 Energy Policy EU level 1997: Commission White Paper 'Energy for the future: renewable sources of energy - White Paper for a Community Strategy and Action Plan', sets EU target of increasing the share of renewable energy to 12 per cent of total energy consumption by : EU adopts the Directive on the Promotion of Electricity produced from Renewable Energy Sources ('Renewables or 'RES-E" Directive'). The directive sets an EU-wide target of 21% of renewables share in electricity production by : EU adopts the Biofuels Directive setting "reference values" of 2% market share for biofuels in 2005 and 5.75% share in : European Parliament calls for 25% target for renewables in EU's energy consumption by : Commission presents "Renewable Energy Roadmap " as part of its "energyclimate change" package. 2008: Directive ( ) on the promotion of the use of energy from renewable sources. COM(2008) 19 final Council Decisions 94/69/EC and 2002/358/EC United Nations Framework Convention on Climate Change and the approval of the Kyoto Protocol

17 Climate Policy The UNFCCC (Uniter Nations Framework Convention on Climate Change) Internation environmental treaty Rio 1992 Aims at stabilizing greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system (ie 2C above pre-industrial global average temperature) Council Decisions 94/69/EC and 2002/358/EC United Nations Framework Convention on Climate Change and the approval of the Kyoto Protocol

18 Kolström, M. Lectures,

19 Kolström, M. Lectures,

20 Kolström, M. Lectures,

21 Kolström, M. Lectures,

22 Kolström, M. Lectures,

23 Kolström, M. Lectures,

24 Kolström, M. Lectures,

25 Kolström, M. Lectures,

26 Energy Policy EU level Objectives 1. Secure energy supply 2. Environmental protection 3. Promote competition

27 Energy Policy EU level Securing energy supply 2005: 50% of the energy of the EU comes from outside the EU 2030: The estimation is 70% from outside the EU Environmental concerns Obligations such the greenhouse gas reduction (Kyoto Protocol, Paris agreements )

28 Agricultural Policy EU level Objectives of the CAP (Art. 39) Increase productivity fair standard of living for the agriculture population guarantee of secure supply of food reasonable retail price to consumers? Art 110: contribute to the harmonious development of world trade by reduction of trading restrictions Art 130r: environmental protection

29 Agricultural Policy EU level Pelkonen, P., Mustonen, M., Asikainen, A., Egnell, G., Kant, P., Leduc, S., & Pettenella, D. (2014). Forest Bioenergy for Europe. Joensuu, Finland: European Forest Institute (EFI).

30 Policy EU Policies and Bioenergy Environmental Policy Agricultural Policy Energy Policy Pelkonen, P., Mustonen, M., Asikainen, A., Egnell, G., Kant, P., Leduc, S., & Pettenella, D. (2014). Forest Bioenergy for Europe. Joensuu, Finland: European Forest Institute (EFI).

31 National Policies and Bioenergy Policies on harvesting practices Branches, leaves, machinery Forest and environmental policy Sustainability General Recommendations Needles left Trees environmental or landscape value Dead wood or tree tops from broadleaves Forest residues proportions Damage on soil controled Insect damages

32 National Policies and Bioenergy Regulating forest fuel harvesting Roos, A. (2002). Policy and institutional factors affecting forest energy. In Bioenergy from Sustainable Forestry (pp ). Springer Netherlands.

33 Economic Instruments in energy policy Blas Mola-Yudego Bioenergy markets and policies Lignoselluloosabiomassat ja niiden energiakäyttö (6 ECTS)

34 Policy Policies and Markets Demand District Heating sector, local actors, consumers. society Supply Biomass from the forest, energy crops

35 Market Economy Demand D S The market is shaped by the demand and supply of a commodity The price is set by the curves Supply

36 Demand curve The shape of the demand curve reflect the elasticity (how it responds to changes in the axis)

37 Demand curve: inelastic

38 Supply curve

39 Supply curve

40 Effects of taxation (consumer) Effects of taxes on demand (tax is on the consumer)

41 Effects of taxation (consumer) consumer producer

42 Effects of taxation (producer) Effects of taxes on demand (tax is on the producer)

43 Energy policy and taxes

44 Energy policy and taxes

45 Energy policy and taxes

46 Tax

47 Subsidies

48 Energy policy: Sweden Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University.

49 Energy policy: Sweden Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University.

50 Energy policy: Sweden Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University.

51 Energy policy: Sweden Effects of the taxation on the use of biomass by the district heating systems Taxation on CO2 and sulphur Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University.

52 Energy policy: Sweden Sweden Helby, P., Börjesson, P., Hansen, A. C., Roos, A., Rosenqvist, H., & Takeuchi, L. (2004). Market Development Problems for Sustainable Bio-energy Systems in Sweden:(The BIOMARK Project). Environmental and Energy Systems Studies, Lund University.

53 Energy policy: Austria capital grants local initiatives rooted in a mix of environmental concern self-interest of forest-owning farmers build-up of know-how and networking among the main stakeholders involved 1999 techno-economic performance guidelines as a minimum standard for obtaining grants: improve the technical efficiency and economic viability of plants Madlener, R. (2007). Innovation diffusion, public policy, and local initiative: The case of wood-fuelled district heating systems in Austria. Energy Policy,35(3),

54 Policies and Markets Capital Subsidies Energy Policy Tax incentives Energy Tax policies Guaranteed markets Regulations R + D soft actions Eco-labelling Information / promotion campaigns Markets

55 Policies and Markets Finland Financial instruments Tax relief for all fuels used for electricity generation (tax incentive) Feed-in tariff for wood fuel based small-scale CHP (operational subsidy) Investment subsidy for biomass Energy taxation for fossil fuels used for heat generation Regulations Obligation to distribute biofuels to the transport market International Bioenergy Trade - History, status & outlook on securing sustainable bioenergy supply, demand and markets, Edition: Lecture Notes in Energy 17, Publisher: Springer, Editors: Junginger Martin, Goh Chun Sheng, Faaij Andre, pp

56 Policies and Markets Capital Subsidies Sweden and Austria subsidies on district heating systems Energy Policy Tax incentives Tax exemptions (Sweden, USA) on incomes Energy Tax policies CO2 taxes (Finland, Denmark, Sweden, Netherlands, Norway...) Guaranteed markets Obligations percentages Renewables (Germany)