IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v38y2010i4p1749-1758.html
   My bibliography  Save this article

Tangible and fungible energy: Hybrid energy market and currency system for total energy management. A Masdar City case study

Author

Listed:
  • Sgouridis, Sgouris
  • Kennedy, Scott

Abstract

We propose the introduction of an energy-based parallel currency as a means to ease the transition to energy-conscious living. Abundant fossil energy resources mask the internal and external energy costs for casual energy consumers. This situation is challenging communities that draw a significant fraction of their primary energy consumption from renewable energy sources. The Masdar Energy Credit (MEC) system is a way of translating the fundamental aspects behind energy generation and usage into a tangible reality for all users with built-in fungibility to incentivize collectively sustainable behavior. The energy credit currency (ergo) corresponds with a chosen unit of energy so that the total amount of ergos issued equals the energy supply of the community. Ergos are distributed to users (residents, commercial entities, employees, and visitors) on a subscription basis and can be surrendered in exchange for the energy content of a service. A spot market pricing mechanism is introduced to relate ergos to "fiat" currency using a continuously variable exchange rate to prevent depletion of the sustainable energy resource. The MEC system is intended to: (i) meet the sustainable energy balance targets of a community (ii) support peak shaving or load shifting goals, and (iii) raise energy awareness.

Suggested Citation

  • Sgouridis, Sgouris & Kennedy, Scott, 2010. "Tangible and fungible energy: Hybrid energy market and currency system for total energy management. A Masdar City case study," Energy Policy, Elsevier, vol. 38(4), pages 1749-1758, April.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1749-1758
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00899-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert H. Patrick & Frank A. Wolak, 2001. "Estimating the Customer-Level Demand for Electricity Under Real-Time Market Prices," NBER Working Papers 8213, National Bureau of Economic Research, Inc.
    2. Lijesen, Mark G., 2007. "The real-time price elasticity of electricity," Energy Economics, Elsevier, vol. 29(2), pages 249-258, March.
    3. Berry, David, 2002. "The market for tradable renewable energy credits," Ecological Economics, Elsevier, vol. 42(3), pages 369-379, September.
    4. Chandley, John D., 2001. "A Standard Market Design for Regional Transmission Organizations, ," The Electricity Journal, Elsevier, vol. 14(10), pages 27-53, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Talal Obaid Alshammari & Abbas M. Hassan & Yasser Arab & Heba Hussein & Fatemeh Khozaei & Maryam Saeed & Basma Ahmed & Manaf Zghaibeh & Wesam Beitelmal & Hyowon Lee, 2022. "The Compactness of Non-Compacted Urban Developments: A Critical Review on Sustainable Approaches to Automobility and Urban Sprawl," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    2. Marinakis, Vangelis & Doukas, Haris & Karakosta, Charikleia & Psarras, John, 2013. "An integrated system for buildings’ energy-efficient automation: Application in the tertiary sector," Applied Energy, Elsevier, vol. 101(C), pages 6-14.
    3. Abbas Hassan & Hyowon Lee, 2015. "The paradox of the sustainable city: definitions and examples," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(6), pages 1267-1285, December.
    4. Yigitcanlar, Tan & Han, Hoon & Kamruzzaman, Md. & Ioppolo, Giuseppe & Sabatini-Marques, Jamile, 2019. "The making of smart cities: Are Songdo, Masdar, Amsterdam, San Francisco and Brisbane the best we could build?," Land Use Policy, Elsevier, vol. 88(C).
    5. Almansoori, Ali & Betancourt-Torcat, Alberto, 2015. "Design optimization model for the integration of renewable and nuclear energy in the United Arab Emirates’ power system," Applied Energy, Elsevier, vol. 148(C), pages 234-251.
    6. Mihaylov, Mihail & Rădulescu, Roxana & Razo-Zapata, Iván & Jurado, Sergio & Arco, Leticia & Avellana, Narcís & Nowé, Ann, 2019. "Comparing stakeholder incentives across state-of-the-art renewable support mechanisms," Renewable Energy, Elsevier, vol. 131(C), pages 689-699.
    7. Kennedy, Scott & Sgouridis, Sgouris, 2011. "Rigorous classification and carbon accounting principles for low and Zero Carbon Cities," Energy Policy, Elsevier, vol. 39(9), pages 5259-5268, September.
    8. Koasidis, Konstantinos & Marinakis, Vangelis & Nikas, Alexandros & Chira, Katerina & Flamos, Alexandros & Doukas, Haris, 2022. "Monetising behavioural change as a policy measure to support energy management in the residential sector: A case study in Greece," Energy Policy, Elsevier, vol. 161(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Orvika Rosnes, 2014. "Subsidies for renewable energy in inflexible power markets," Journal of Regulatory Economics, Springer, vol. 46(3), pages 318-343, December.
    2. Nagl, Stephan, 2013. "Prices vs. Quantities: Incentives for Renewable Power Generation - Numerical Analysis for the European Power Market," EWI Working Papers 2013-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    3. Derya Eryilmaz, Timothy M. Smith, and Frances R. Homans, 2017. "Price Responsiveness in Electricity Markets: Implications for Demand Response in the Midwest," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    4. Rigoberto Ariel Yepez-Garcia & Todd M. Johnson & Luis Alberto Andres, 2011. "Meeting the Balance of Electricity Supply and Demand in Latin America and the Caribbean," World Bank Publications - Books, The World Bank Group, number 2334, December.
    5. Summerbell, Daniel L. & Khripko, Diana & Barlow, Claire & Hesselbach, Jens, 2017. "Cost and carbon reductions from industrial demand-side management: Study of potential savings at a cement plant," Applied Energy, Elsevier, vol. 197(C), pages 100-113.
    6. Damien, Paul & Fuentes-García, Ruth & Mena, Ramsés H. & Zarnikau, Jay, 2019. "Impacts of day-ahead versus real-time market prices on wholesale electricity demand in Texas," Energy Economics, Elsevier, vol. 81(C), pages 259-272.
    7. Andrii Babii, 2022. "High-Dimensional Mixed-Frequency IV Regression," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 40(4), pages 1470-1483, October.
    8. Bataille, Marc & Bodnar, Olivia & Steinmetz, Alexander & Thorwarth, Susanne, 2019. "Screening instruments for monitoring market power: The return on withholding capacity index (RWC)," DICE Discussion Papers 311, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    9. Bataille, Marc & Bodnar, Olivia & Steinmetz, Alexander & Thorwarth, Susanne, 2019. "Screening instruments for monitoring market power — The Return on Withholding Capacity Index (RWC)," Energy Economics, Elsevier, vol. 81(C), pages 227-237.
    10. Cédric Clastres & Haikel Khalfallah, 2015. "An Analytical Approach to Activating Demand Elasticity with a Demand Response Mechanism," Post-Print hal-01222582, HAL.
    11. Thomas-Olivier Leautier, 2014. "Is Mandating "Smart Meters" Smart?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    12. Clastres, Cédric & Khalfallah, Haikel, 2015. "An analytical approach to activating demand elasticity with a demand response mechanism," Energy Economics, Elsevier, vol. 52(PA), pages 195-206.
    13. Zhou, Yang & Ma, Rong & Su, Yun & Wu, Libo, 2019. "Too big to change: How heterogeneous firms respond to time-of-use electricity price," China Economic Review, Elsevier, vol. 58(C).
    14. Nagl, Stephan, 2013. "The Effect of Weather Uncertainty on the Financial Risk of Green Electricity Producers under Various Renewable Policies," EWI Working Papers 2013-15, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    15. Jin, Ruiyang & Zhou, Yuke & Lu, Chao & Song, Jie, 2022. "Deep reinforcement learning-based strategy for charging station participating in demand response," Applied Energy, Elsevier, vol. 328(C).
    16. Eicke, Anselm & Ruhnau, Oliver & Hirth, Lion, 2021. "Electricity balancing as a market equilibrium," EconStor Preprints 233852, ZBW - Leibniz Information Centre for Economics.
    17. Simon Pezzutto & Gianluca Grilli & Stefano Zambotti & Stefan Dunjic, 2018. "Forecasting Electricity Market Price for End Users in EU28 until 2020—Main Factors of Influence," Energies, MDPI, vol. 11(6), pages 1-18, June.
    18. Coulon, Michael & Khazaei, Javad & Powell, Warren B., 2015. "SMART-SREC: A stochastic model of the New Jersey solar renewable energy certificate market," Journal of Environmental Economics and Management, Elsevier, vol. 73(C), pages 13-31.
    19. Espinosa Acuña, Óscar A. & Vaca González, Paola A. & Avila Forero, Raúl A., 2013. "Elasticidades de demanda por electricidad e impactos macroecon_omicos del precio de la energía eléctrica en Colombia || Elasticity of Electricity Demand and Macroeconomics Impacts of Electricity Price," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 16(1), pages 216-249, December.
    20. De Jonghe, C. & Hobbs, B. F. & Belmans, R., 2011. "Integrating short-term demand response into long-term investment planning," Cambridge Working Papers in Economics 1132, Faculty of Economics, University of Cambridge.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:4:p:1749-1758. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.