In both the private and public sectors, green hydrogen is treated as a promising alternative to fossil energy commodities. However, building up production capacities involves significant carbon production, especially when considering secondary infrastructure, e.g., renewable power sources. The amount of required capacity as well as the carbon production involved is calculated in this article. Using Germany as an example we show that the switch to purely green hydrogen involves significant bow waves in terms of carbon production as well as financial and resource demand. An economic model for an optimal decision is derived and—based on empirical estimates—calibrated. It shows that, even if green hydrogen is a competitive technology in the future, using alternatives like turquoise hydrogen or carbon capture and storage is necessary to significantly reduce or even avoid the mentioned bow waves.
We study long-term incentives for regulated polluting firms to invest in advanced abatement technologies when some new technology is available but even better technology is expected for the future. Firms can invest only once. We find that, depending on the cost of adoption, all possible investment patterns can occur in social optimum. Further, a regulator who anticipates the arrival of the new technology can decentralize the socially optimal allocations by announcing either a Pigouvian tax or tradable permits and by setting ex post optimal policy levels after firms have invested.
An index on the gas market commonly refers to the average price of a certain trading product, e.g., over the period of one month. Index-based sourcing is a widely-used habit in modern gas business. Risks are reduced by averaging prices over the purchasing period. Due to the significant volume, there have been many attempts to ”beat the index”, i.e., to design a strategy that, over time, offers cheaper prices than the index. Here, we use neural networks to identify n, n∈N, optimal shopping points. Both classification- and forecasting-based strategies are tested to decide on each trading day if gas should be purchased or not. Thereby, we use the Front Month index based on prices from the Dutch Title Transfer Facility as an example. Regarding cumulative performance, all but a very simple myopic algorithm are able to outperform the index. However, each strategy has its flaws and some positive results are due to the price increase during 2021. If one opts for an active sourcing strategy, then a forecasting-based approach is the best choice.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.