Do manufacturing firms react to energy prices? Evidence from Italy

Bardazzi, Rossella; Oropallo, Filippo; Pazienza, Maria Grazia

doi:10.1016/j.eneco.2015.01.014

Cited by 33 publications

(17 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The use of the translog functional form in this literature is well-established. Earlier papers that employ this functional form includeHalvorsen (1977) andHall (1986), while more recent examples includeSteinbuks and Neuhoff (2014) andBardazzi et al (2015).…”

mentioning

confidence: 99%

Firm-level Estimates of Fuel Substitution: An Application toCarbon Pricing

Hyland¹,

Haller²

2018

The Energy Journal

View full text Add to dashboard Cite

We estimate partial-and total-fuel substitution elasticities between electricity, gas and oil, using firm-level data. We find that, based on the partial elasticity measure, electricity is the least-responsive fuel to changes in its own price and in the price of other fuels. The total elasticity measure, which adjusts the partial elasticity for changes in aggregate energy demand induced by individual fuel price changes, reveals that the demand for electricity is much more price responsive than the partial elasticity suggests. Our results illustrate the importance of accounting for the feedback effect between interfactor and interfuel substitution elasticities when considering the effectiveness of environmental taxation. We use the estimated elasticities to simulate the impact of a e15/tCO 2 carbon tax on average energyrelated CO 2 emissions. The carbon tax results in a small reduction in CO 2 emissions from oil and gas use, but this reduction is partially offset by an increase in emissions due to increased electricity consumption by some firms.

show abstract

mentioning

confidence: 99%

Firm-level Estimates of Fuel Substitution: An Application toCarbon Pricing

Hyland¹,

Haller²

2018

The Energy Journal

View full text Add to dashboard Cite

show abstract

“…sviluppoeconomico.gov.it/dgerm/ben.asp. 13 Bardazzi et al (2015) estimate own and cross-price elasticities for energy sources for Italian manufacturing firms. The estimated parameters are lower for the two main energy inputs (−0.46 for electricity and −0.82 for natural gas) than for diesel (−0.90) and fuel oil (−1.44).…”

Section: Energy Pricesmentioning

confidence: 99%

European Energy and Climate Security

Bardazzi¹,

Pazienza²,

Tonini³

2016

Lecture Notes in Energy

View full text Add to dashboard Cite

study of energy: from science and engineering to the analysis of energy policy. The series' scope includes but is not limited to, renewable and green energy, nuclear, fossil fuels and carbon capture, energy systems, energy storage and harvesting, batteries and fuel cells, power systems, energy efficiency, energy in buildings, energy policy, as well as energy-related topics in economics, management and transportation. Books published in LNE are original and timely and bridge between advanced textbooks and the forefront of research. Readers of LNE include postgraduate students and non-specialist researchers wishing to gain an accessible introduction to a field of research as well as professionals and researchers with a need for an up-to-date reference book on a well-defined topic. The series publishes single and multi-authored volumes as well as advanced textbooks.More information about this series at

show abstract

“…Unlike the flat rates where the price of electricity stays constant throughout the day, dynamic pricing is more commonly adopted in demand response programs to represent the dynamic cost of power generation [28][29][30]. For example, the electric charges in TOU pricing are differentiated by on-, mid-, and off-peak periods, with the on-peak price being the highest and the off-peak price being the lowest [31].…”

Section: Introductionmentioning

confidence: 99%

Critical peak electricity pricing for sustainable manufacturing: Modeling and case studies

Wang

2016

Applied Energy

View full text Add to dashboard Cite

Critical peak pricing (CPP) is an electricity demand response technology that has great potential to lower the electricity cost and eliminate the need for more GHG emitting power plants. Many utilities start to offer CPP as the default electric service for industrial customers in their market design. When a manufacturing customer defaults to CPP, it is vital to understand what it is and how it will influence their energy budget and facility operations. In addition, given the option to opt-out to a time-of-use (TOU) rate, it is not always easy to tell whether the switch will result in higher bills or more GHG emissions. These questions will be answered in this paper. Specifically, we will model and compare both CPP and TOU rates to gain more accurate knowledge regarding annual electric costs and GHG emissions. With these results, manufacturing enterprises will be able to make more informed decisions on which service to choose and how to use electricity while fulfilling their role for sustainability by enrolling. The case study results show that for industrial customers with production flexibility, with proper rescheduling of electric use, they can save money by adopting CPP, while contributing to reducing GHG emissions. The savings on the annual electric bill can be 30.45% with a simultaneous GHG emissions reduction of 5.63% for an average industrial customer.

show abstract

Do manufacturing firms react to energy prices? Evidence from Italy

Cited by 33 publications

References 33 publications

Firm-level Estimates of Fuel Substitution: An Application toCarbon Pricing

Firm-level Estimates of Fuel Substitution: An Application toCarbon Pricing

European Energy and Climate Security

Critical peak electricity pricing for sustainable manufacturing: Modeling and case studies

Contact Info

Product

Resources

About