The socially optimal energy transition in a residential neighbourhood in the Netherlands
The coming energy transition in residential neighbourhoods in the Netherlands is the result of the increasing cost of CO2 emission and the decreasing costs of solar PhotoVoltaics (PV) and alternative techniques of residential heating, namely Combined Heat and Power (CHP) and heat pump. The optimal transition is found by minimizing the total discounted social costs of residential energy consumption and generation. Social costs include the cost of CO2 emission and the investment in the electric network. The model integrates economics and the electric constraints based on the Alternating Current (AC) network power flow. The results indicate that in the optimal transition nearly all houses are going to use an air-to-water heat pump with auxiliary gas heating. This shift from gas to electricity depends very little on the future CO2 price or the network costs. Solar PV is not yet socially profitable at this moment. The "business case" for a household, using private costs, includes taxes and excludes CO2 costs and uses a higher discount rate. In the resulting optimum no heat pumps are used. However, reducing the ratio of the electricity tax versus the gas tax moves the private optimum to the social optimum. In order to use the model (with GAMS) or to verify table 18 (with Octave/Matlab), download the packed file below (If needed: rename it from�.txt� to .zip and unpack the file). After the publication , the following problem was noted by a reader. According to section 5.3, first paragraph, the heat pump is socially optimal in the old neighbourhood. However, in general this is somewhat unrealistic: the heat pump has a low water temperature, requiring enlarging the capacity of the radiators. Also: "starting at 20 euro" at page 11 is simply the actual value up to 2010.
|Date of creation:||Nov 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helena Meier & Katrin Rehdanz, 2008.
"Determinants of residential space heating expenditures in Great Britain,"
Kiel Working Papers
1439, Kiel Institute for the World Economy.
- Meier, Helena & Rehdanz, Katrin, 2010. "Determinants of residential space heating expenditures in Great Britain," Energy Economics, Elsevier, vol. 32(5), pages 949-959, September.
- Helena Meier & Katrin Rehdanz, 2008. "Determinants of Residential Space Heating Expenditures in Great Britain," Working Papers FNU-166, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
- Braun, Frauke G., 2010. "Determinants of households' space heating type: A discrete choice analysis for German households," Energy Policy, Elsevier, vol. 38(10), pages 5493-5503, October.
- Mozumder, Pallab & Vásquez, William F. & Marathe, Achla, 2011. "Consumers' preference for renewable energy in the southwest USA," Energy Economics, Elsevier, vol. 33(6), pages 1119-1126.
- Manning, Neil & Rees, Ray, 1982. "Synthetic demand functions for solar energy," Energy Economics, Elsevier, vol. 4(4), pages 225-231, October.
- Rob Aalbers & Viktoria Kocsis & Victoria Shestalova, 2011. "Optimal regulation under unknown supply of distributed generation," CPB Discussion Paper 192, CPB Netherlands Bureau for Economic Policy Analysis.
- Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
- Goto, Hisanori & Goto, Mika & Sueyoshi, Toshiyuki, 2011. "Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan," Energy Economics, Elsevier, vol. 33(2), pages 195-208, March.
- Rehdanz, Katrin, 2007.
"Determinants of residential space heating expenditures in Germany,"
Elsevier, vol. 29(2), pages 167-182, March.
- Katrin Rehdanz, 2005. "Determinants Of Residential Space Heating Expenditures In Germany," Working Papers FNU-66, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2005.
- Vaage, K., 2000.
"heating Technology and Energy Use: a Discrete/Continuous Choice Approach to Norwegian Household Energy Demand,"
Norway; Department of Economics, University of Bergen
214, Department of Economics, University of Bergen.
- Vaage, Kjell, 2000. "Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand," Energy Economics, Elsevier, vol. 22(6), pages 649-666, December.
- DeCarolis, Joseph F., 2011. "Using modeling to generate alternatives (MGA) to expand our thinking on energy futures," Energy Economics, Elsevier, vol. 33(2), pages 145-152, March.
- Paatero, Jukka V. & Lund, Peter D., 2007. "Effects of large-scale photovoltaic power integration on electricity distribution networks," Renewable Energy, Elsevier, vol. 32(2), pages 216-234.
- Macintosh, Andrew & Wilkinson, Deb, 2011. "Searching for public benefits in solar subsidies: A case study on the Australian government's residential photovoltaic rebate program," Energy Policy, Elsevier, vol. 39(6), pages 3199-3209, June.
- Durand-Lasserve, Olivier & Pierru, Axel & Smeers, Yves, 2010. "Uncertain long-run emissions targets, CO2 price and global energy transition: A general equilibrium approach," Energy Policy, Elsevier, vol. 38(9), pages 5108-5122, September.
- Arie ten Cate, 2010. "Hourglass models of world-wide problems such as climate change," CPB Memorandum 238, CPB Netherlands Bureau for Economic Policy Analysis.
- Monahan, J. & Powell, J.C., 2011. "A comparison of the energy and carbon implications of new systems of energy provision in new build housing in the UK," Energy Policy, Elsevier, vol. 39(1), pages 290-298, January.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:222. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.