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On November 2 at the University of Hawaii, Program on Energy and Sustainable Development (PESD) Director Frank Wolak gave a special seminar "How Should the Public Utilities Commission Regulate Hawaiian Electric Company for Better Integration of Renewable Energy?" He summarized inefficiencies in Hawaii's electricity system and advocates a "cost based" market in which long-term competitive contracts for power would be used in conjunction with a regulated optimization model that would set real-time prices for buying and selling of electricity and grid services.  

Read more (includes links to video of Professor Wolak's talk and slides)

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Program on Energy and Sustainable Development (PESD) Director Frank Wolak, Associate DIrector Mark Thurber, and doctoral candidate Trevor Davis led an Electricity Market Simulation Workshop as part of the 2018 Western Electricity Market Forum September 20-21 in Boise, Idaho.  The audience was comprised of regulators and regulatory staff as well as policy makers representing states from across the western U.S.

The workshop used the PESD-developed Energy Market Game to explore timely questions about how electricity markets with a high share of renewable resources might function. “The Energy Market Game allows people of diverse backgrounds to understand market dynamics,” Thurber explained. “It can help policy makers and regulators set up incentives for market participants which naturally align with desired outcomes.”

The PESD team ran games with two contrasting policy approaches aimed at ensuring resource adequacy, with workshop participants playing the role of generating companies (“gencos”). In a high-renewable world, the specific resource adequacy concern is that thermal power plants won’t run enough to be profitable, and gencos therefore won’t build or keep enough thermal power plants to back up renewables when wind and sun aren’t available.

In the first game scenario, capacity markets were used to spur gencos to build enough gas-fired power plants to meet demand. Capacity markets straight-out pay gencos for holding generation capacity. They are used in a number of real-world electricity markets, but the games suggested they may not result in the cheapest power for consumers.

 

wemf 18 PESD Director Frank Wolak helps a workshop participant set up an Energy Market Game scenario.

PESD Director Frank Wolak helps a workshop participant set up an Energy Market Game scenario.
Photo Credit:  Maury Galbraith, Western Energy Board

 

In the second game scenario, forward contracts for electricity created the incentive for gencos to build power plants. If a genco doesn’t produce enough electricity to cover its forward contract, it risks having to buy the shortfall out of the spot market at high prices. Forward contracts therefore encourage gencos not only to build adequate generation capacity, but also to bid that capacity into the market at competitive prices. As this second game scenario showed, that can mean cheaper power for consumers.

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PESD team members Frank Wolak, Mark Thurber, and Trevor Davis lead an Electricity Market Simulation Workshop in Boise, Idaho, September 2018.
Maury Galbraith, Western Energy Board
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Abstract

 

As an increasing number of California households install solar panels, the current approach to retail electricity pricing makes it harder for the state’s utilities to recover their costs. Unless policymakers change how they price grid-supplied electricity, a regulatory crisis where a declining number of less affluent customers will be asked to pay for a growing share of the costs is likely to occur.

 

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Stanford Institute for Economic Policy Research (SIEPR)
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Frank Wolak
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Women empowerment (WE) is increasingly viewed as an important strategy to reduce maternal and child undernutrition,13 which continues to be a major health burden in low- and middle-income countries causing 3.5 million preventable maternal and child deaths, 35% of the disease burden in children younger than 5 years, and 11% of total global disability-adjusted life years.4,5Global data show that one of the worst affected regions is sub-Saharan Africa (SSA), where about 20% of children are malnourished.6,7 Benin is no exception, as the prevalence of stunting, wasting, and underweight was 37%, 5%, and 17%, respectively, among children aged 6 to 59 months in the 2006 Benin Demographic and Health Survey (DHS),8 while 9% of women had chronic energy deficiency in the 2012 DHS.9 Greater rates were observed in rural areas where stunting was found in 40% of children, underweight in 19%, and wasting in 5%, while 10% of women had chronic energy deficiency.8,9 Additionally, Beninese women and children have a limited dietary diversity score (DDS), with diets predominately composed of starchy staples with little or no animal products and few fresh fruits and vegetables.10,11 Government, United Nation agencies, and nongovernmental organizations in Benin recognize that the state of maternal and child undernutrition requires multiple types of interventions.12

However, women’s low empowerment status in Benin can hinder the improvement in women’s and children’s undernutrition. Indeed, although females accounted for 47% of the economically active population in 2014,13 social and civil legislation is strongly influenced by tradition and customs, as women continue to be required to seek their husband’s authorization in certain areas such as family planning or health services.14 Rural women provided labor to the families’ commercial plots, were responsible for household food production and processing, and also had to work in the cooperative structures set up by the state in addition to their household tasks.14 In a more recent study of productivity differences by gender in central Benin, researchers noted that female rice farmers are particularly discriminated against with regard to access to land and equipment, resulting in significant negative impacts on their productivity and income.15 As in other areas of West Africa, women also have the responsibility of caring for children and preparing food for the household,16 but they may be vulnerable to food insecurity owing to unequal intrahousehold food distribution and their willingness to forego meals in favor of children during times of scarcity.17 Finally, no study to date has examined links between women’s empowerment and nutrition in Benin.

In addition, the evidence backing the effect of women’s empowerment on maternal and child undernutrition is inconsistent.18 Using the Women’s Empowerment in Agriculture Index (WEAI), Malapit et al19 reported positive and significant association between women’s group (WG) membership, control over income, overall empowerment, and women’s health (as measured by body mass index [BMI] and DDS) in Nepal. However, in Ghana, women’s aggregate empowerment and participation in credit decisions were positively correlated with women’s DDS, but not BMI.20 Mixed findings were also observed between women’s empowerment and child anthropometry. Moestue et al21 found a positive association between maternal involvement in social groups and length-for-age z score of 1-year-old children, but De Silva and Harpham22showed a negative association in 6- to 18-month-old children. Shroff et al23 found positive association between decision-making and child weight-for-age z score (WAZ), but Begum and Sen’s24 analysis of Bangladesh DHS data did not reveal any significant associations. Therefore, information about which domains of WE are associated with nutritional status is limited,20 and this lack of knowledge constrains the set of policy options that can be used to empower women and improve nutrition.

In addition to a limited set of studies in SSA, examinations of the effects of WE on nutrition outcomes are constrained due to interstudy differences in population characteristics, settings, or methods/conceptualizations of WE.2527 For example, despite recognition of the complex, multidimensional, and culturally defined nature and influence of empowerment on nutrition,20,26,28,29 only a few studies considered the multidimensional structure of empowerment domains in Africa or examined the varied relationships between each measure of WE and maternal and child nutrition status.30,31 Furthermore, in 2012, the International Food Policy Research Institute developed WEAI constructed from 5 prespecified domains of empowerment,32which may not be equally relevant in all areas. In contrast, in 2015, the United Nations adopted the Sustainable Development Goals (SDG), but the specific indicators for the SDG empowerment targets are largely equality metrics.33 To address the need for multidimensional and contextual examinations of WE and its influence on maternal and child health outcomes, we draw from the concepts put forward in the WEAI and the SDGs but took an approach more along the lines of the World Bank which gathers indicators, both equity and empowerment related, that can be used in contextually appropriate ways.34 The aims of this study were therefore to first explore the structure and domains of WE in Kalalé district of northern Benin and then to examine the effects of these constructs on nutritional status of women and their children in the region.

 

 

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Food and Nutrition Bulletin
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Rosamond L. Naylor
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The format of this presentation is each of the three speakers will have approximately 15 minutes to present their research.  This will be followed by a short period of 5-10 minutes for any questions or comments from the audience.

 

In this session of the Corporate Affiliates Research Presentations, the following will be presented:

 

Hirotaka Ishii, Ministry of Economy, Trade & Industry, Japan

Japan's Electricity Crisis? - What Japan Should Learn from the California Electricity Crisis

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The Japanese electricity retail market has been restructured since 2000. Since the full market liberalization has started from April 2016, households now have the ability to choose an electricity retailer. However, in the state of California, the electricity crisis - the massive blackout - happened just after the restructuring of its electricity retail market. In his research, Ishii investigates the reason why the California electricity crisis happened, whether it is possible that such a crisis will happen in the Japanese electricity market and what Japan should learn from the California electricity market.

 

Hui Liu, PetroChina

Shared Services (Center) Model and Best Practices

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As an effective operating strategy, Shared Services (Center) has been implemented to achieve cost reduction, process optimization, productivity enhancement, value creation and continuous improvement. With increasing economy globalization, many organizations have set up Shared Services Centers (SSC) to support functions such as HR, finance and IT, etc. In his research, Liu will share trends of the shared services evolution and introduce popular models of shared services, including Discrete Shared Services, Multi-function Shared Services (MFSS), Global Business Services (GBS) and Integrated Business Services (IBS). Liu will also share winning strategies that can be applied to deploy an effective Shared Services model based on global best practices.

 

Rui Minowa, Development Bank of Japan

Measures to Retain Talent in Large or Medium-Sized Companies

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The competition for acquiring talent among companies is intensifying in Japan. It is expected that it will become increasingly intense in the future as the working population decreases and the work behavior of young people changes. It is important for companies not only to acquire good talent, but to retain talent as well.

Silicon Valley is one of the fastest-moving, most competitive economies in the world.  Minowa studied some cases of successful Silicon Valley companies – comparing differences in labor customs and environment between Japan and the U.S.  As a result, Minowa shares suggestions on how to retain talent for large or medium-sized companies.

 

Zhuoyan Wang, PetroChina

Transformation Opportunities of Oil Companies

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Petroleum oil plays a significant role in our fuel mix today – currently accounting for 34% of global energy supplies. Oil prices suffered a significant drop in 2014 and brought huge strikes to the main oil exporters as well as to world economy. Where is the future of oil industry, and how will those oil companies overcome various challenges? In his research, Wang carries out analysis from oil development outlook to technology innovation in the energy field to the effect from market and policies. In this presentation, Wang discusses the transformation opportunities of traditional oil & gas companies.

 

Ministry of Economy, Trade & Industry, Japan
PetroChina
Development Bank of Japan
PetroChina
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In a recent television interview with the Korean Broadcasting System (KBS), SK Center Fellow Yong Suk Lee said that tougher economic sanctions on North Korea are not achieving their intended effects and may actually be exacerbating inequality instead. Analyzing satellite night lights data, Lee found that the North Korean regime has avoided the impact of sanctions by reallocating electricity from poor, rural areas to urban areas where privileged elites reside. To view the episode (in Korean), click here.

Lee published the research in a working paper, “Countering Sanctions: The Unequal Geographic Impact of Economic Sanctions in North Korea,” which was highlighted in a Stanford News Service article in Oct. 2014. Lee also presented his preliminary findings at a public seminar at Stanford.

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Pyongyang at nighttime.
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