Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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This paper presents the details and results of an energy model of a non-electrified rural village. The model itself was developed with MARKAL/TIMES, a modeling and optimization tool. Much of the data used in the model is based on data obtained from surveys and electricity loggers, while some is based on the authors' own assumptions (e.g. the number of households in the village).

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Program on Energy and Sustainable Development Working Paper #11
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This paper looks into the overall energy pattern in rural China and the possible reasons behind based on an assessment of available data sources. Commercial energy consumption by rural residents is disproportionately lower than that by their urban counterparts. Moreover, biological matters are the dominant source of household fuels in rural areas. Variations in energy consumption are closely related to differences in income, access to energy sources, structures of local economy and geographic/climatic conditions. Information on non-commercial energy consumption is incomplete and additional sample survey is required to gather details of rural energy consumption for specification and verification.

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Program on Energy and Sustainable Development Working Paper #12
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About 2.4 billion people rely on traditional biomass, mainly for cooking and heating (IEA, 2002). Essentially all of those users of traditional fuels reside in developing countries, and most of them live in rural areas; low incomes and the lack of access to alternative, modern fuels explain their choice of traditional energy supply. By the late 1990s, IEA (1998) estimated that biomass accounted for approximately 14 percent of final energy consumption, roughly on par with electricity (14 percent). It is likely that the fraction of total energy supplied by biomass will decline in the future as traditional energy carriers are supplanted by the modern movers such as electricity. This paper provides an overview of that "energy transition" from traditional to commercial fuels from the perspective of available macro-economic data. Based on the long time series data available for the United States it suggests some basic patterns in the energy transition, and it examines the transition under way in several major developing countries. It offers a simple regression model of the transition and suggests topics for further research, including an improved regression model.

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Program on Energy and Sustainable Development Working Paper #10
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David G. Victor
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Energy development, interpreted broadly to mean increased provision and use of energy services, is an integral part of enhanced economic development. Advanced industrialized societies use more energy per unit of economic output and far more energy per capita than poorer societies, especially those still in a preindustrial state. Energy use per unit of output does seem to decline over time in the more advanced stages of industrialization, reflecting the adoption of increasingly more efficient technologies for energy production and utilization as well as changes in the composition of economic activity (see, e.g., Nakicenovic 1996). And energy intensity in today's developing countries probably peaks sooner and at a lower level along the development path than was the case during the industrialization of the developed world. But even with trends toward greater energy efficiency and other dampening factors, total energy use and energy use per capita continue to grow in the advanced industrialized countries, and even more rapid growth can be expected in the developing countries as their incomes advance. The fact that expanded provision and use of energy services is strongly associated with economic development leaves open how important energy is as a causal factor in economic development. Development involves a number of other steps besides those associated with energy, notably including the evolution of education and labor markets, financial institutions to support capital investment, modernization of agriculture, and provision of infrastructure for water, sanitation, and communications. This is not just an academic question; energy development competes with other development opportunities in the allocation of scarce capital and in the allocation of scarce opportunities for policy and institutional reform.

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Program on Energy and Sustainable Development Working Paper #9
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This paper is a working draft intended to both set the stage and stimulate discussion at the upcoming EPRI workshop on Global Electrification. The workshop is part of a larger EPRI initiative entitled the "Electricity Technology Roadmap," which explores how electricity can better serve a global society undergoing different stages of economic development. The horizon for the Roadmap, and therefore the workshop, is nominally 50 years out, when global population will probably approach 9 billion people.

The paper looks at the role of energy in the lives of the poorest people in the world, and the changing pattern of energy use as economic development ensues. The data record in this regard is incomplete and often conflicting, although broad trends are discernable. The author approaches the analysis from the bottom up and the top down, using existing micro-level studies of energy use in the home, and macro-level studies of the coupling between energy use, the increasing electrification of energy, and economic development.

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Program on Energy and Sustainable Development Working Paper #7
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David G. Victor

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Research Fellow
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Mark H. Hayes was recently a Research Fellow with the Program on Energy and Sustainable Development (PESD). He lead PESD's research on global natural gas markets, including studies of the growing trade in liquefied natural gas (LNG) and the future for gas demand growth in China.

Dr. Hayes has developed models to analyze the impact of growing LNG imports on U.S. and European gas markets with special attention to seasonality and the opportunity for arbitrage using LNG ships and regasification capacity. From 2002 to 2005, Dr. Hayes managed the Geopolitics of Natural Gas Project, a study of critical political and financial factors affecting investment in cross-border gas trade projects. The study culminated in an edited book volume published by Cambridge University Press.

Prior to coming to Stanford, Mark worked as a financial analyst at Morgan Stanley in New York City. He was a member of the Global Power and Utilities Group, where he was involved in mergers and acquisitions, financing and corporate restructuring.

In 2006 he completed his Ph.D. in the Interdisciplinary Program on Environment and Resources at Stanford University. After completing his Ph.D. at Stanford, Mark has taken a position at RREEF Infrastructure Investments, San Francisco, CA. Mark also has a B.A. in Geology from Colgate University and an M.A. in International Policy Studies from Stanford. From 1999 to 2002 he served on the Board of Trustees of Colgate University.

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