Soft Budget Constraints and Regional Industrial Policy: Reinterpreting the Rise and fall of De Lorean

The rise and fall of De Lorean Motor Cars Limited (DMCL) has been traditionally interpreted as either the result either of John De Lorean’s psychological flaws or as confirming the supposed limitations of activist industrial policy. However, when the episode is examined in greater historical detail, neither of these interpretations are compelling. The reinterpretation outlined here draws on institutional analysis as well as a range of archival sources, much of it previously unreleased. The inefficiencies within the original contractual agreement are highlighted. The lack of credibility associated with this agreement was in turn traceable to the institutional environment (with its associated risk-reward implications) under which industrial policy operated. This environment had a political element - it had been distorted by the Troubles and the resulting fears policymakers had of a cumulative causation relationship between violence and unemployment. Officials in Belfast, against Treasury opposition, advocated state-led entrepreneurship as a policy response.

Planning, Devolution and the Territorialisation of Wind Energy in the UK

The decarbonisation of energy systems draw a new set of stakeholders into debates over energy generation, engage a complex set of social, political, economic and environmental processes and impact at a wide range of geographical scales, including local landscape changes, national energy markets and regional infrastructure investment. This paper focusses on a particular geographic scale, that of the regions/nations of the UK (Scotland, Wales, Northern Ireland), who have been operating under devolved arrangements since the late 1990s, coinciding with the mass deployment of wind energy. The devolved administrations of the UK possess an asymmetrical set of competencies over energy policy, yet also host the majority of the UK wind resource. This context provides a useful way to consider the different ways in which geographies of "territory" are reflected in energy governance, such through techno-rational assessments of demand or infrastructure investment, but also through new spatially-defined institutions that seek to develop their own energy future, using limited regulatory competencies. By focussing on the way the devolved administrations have used their responsibilities for planning over the last decade this paper will assess the way in which the spatial politics of wind energy is giving rise to renewed forms of territorialisation of natural resources. In so doing, we aim to contribute to clarifying the questions raised by Hodson and Marvin (2013) on whether low carbon futures will reinforce or challenge dominant ways of organising relationships between the nation-state, regions, energy systems and the environment.

Energy efficiency in the Chinese provinces: a fixed effects stochastic frontier spatial Durbin error panel analysis

Energy efficiency improvement has been a key objective of China’s long-term energy policy. In this paper, we derive single-factor technical energy efficiency (abbreviated as energy efficiency) in China from multi-factor efficiency estimated by means of a translog production function and a stochastic frontier model on the basis of panel data on 29 Chinese provinces over the period 2003–2011. We find that average energy efficiency has been increasing over the research period and that the provinces with the highest energy efficiency are at the east coast and the ones with the lowest in the west, with an intermediate corridor in between. In the analysis of the determinants of energy efficiency by means of a spatial Durbin error model both factors in the own province and in first-order neighboring provinces are considered. Per capita income in the own province has a positive effect. Furthermore, foreign direct investment and population density in the own province and in neighboring provinces have positive effects, whereas the share of state-owned enterprises in Gross Provincial Product in the own province and in neighboring provinces has negative effects. From the analysis it follows that inflow of foreign direct investment and reform of state-owned enterprises are important policy handles.

Scotland, Renewable Energy and the Independence Debate: Will Head or Heart Rule the Roost?

Political support for renewable energy development, especially offshore renewables, is particularly conspicuous in Scotland and is a centrepiece of SNP policy. However, this is built on something of a paradox because, put simply, without the subsidies paid by electricity consumers in the rest of the UK, the Scottish Government's ambitious targets for renewable energy would be politically unachievable. We argue in this paper that if Scotland does move towards independence, then there could be little reason for the UK to continue paying (much) of the subsidies since the resulting renewable generation would no longer contribute towards UK renewable energy targets. We suggest that the potential scenarios, and their implications, needs to be far better considered in the arguments around the Scottish constitutional position and the broader aims of UK energy policy.

Large‐scale wind deployment, social acceptance

The public is typically in agreement with the renewable energy targets established in many national states and generally supports the idea of increased reliance on wind energy. Nevertheless, many specific wind power projects face significant local opposition. A key question for the wind energy sector is, therefore, how to better engage local people to foster support for specific projects. IEA Wind Task 28 on Social Acceptance of Wind Energy Projects aims to facilitate wind energy development by reviewing current practices, emerging ideas, and exchanging successful practices among the participating countries. It also aims to disseminate the insights of leading research to a nontechnical audience, including project developers, local planning officials, and the general public. The interdisciplinary approach adopted by Task 28 enables an in-depth understanding of the nature of opposition to wind projects and a critical assessment of emerging strategies for social acceptance. Task 28 has analyzed a range of key issues related to social acceptance of wind energy, including the impacts on landscapes and ecosystems, on standard of living and well-being, the implementation of energy policy and spatial planning, the distribution of costs and benefits, and procedural justice. It is clear that although wind energy has many benefits; however, specific projects do impact local communities. As such the concerns of the affected people have to be taken seriously. Moreover, as opposition is rarely without foundation, it is in the interests of developers and advocates to engage local people and to improve projects for the benefit of all.

The significance of interconnector counter-trading in a security constrained electricity market

Throughout the European Union there is an increasing amount of wind generation being dispatched-down due to the binding of power system operating constraints from high levels of wind generation. This paper examines the impact a system non-synchronous penetration limit has on the dispatch-down of wind and quantifies the significance of interconnector counter-trading to the priority dispatching of wind power. A fully coupled economic dispatch and security constrained unit commitment model of the Single Electricity Market of the Republic of Ireland and Northern Ireland and the British Electricity Trading and Transmission Arrangement was used in this study. The key finding was interconnector counter-trading reduces the impact the system non-synchronous penetration limit has on the dispatch-down of wind. The capability to counter-trade on the interconnectors and an increase in system non-synchronous penetration limit from 50% to 55% reduces the dispatch-down of wind by 311 GW h and decreases total electricity payments to the consumer by €1.72/MW h. In terms of the European Union electricity market integration, the results show the importance of developing individual electricity markets that allow system operators to counter-trade on interconnectors to ensure the priority dispatch of the increasing levels of wind generation.

A novel methodology for analysis of large scale interconnected power and gas systems

The European Union continues to exert a large influence on the direction of member states energy policy. The 2020 targets for renewable energy integration have had significant impact on the operation of current power systems, forcing a rapid change from fossil fuel dominated systems to those with high levels of renewable power. Additionally, the overarching aim of an internal energy market throughout Europe has and will continue to place importance on multi-jurisdictional co-operation regarding energy supply. Combining these renewable energy and multi-jurisdictional supply goals results in a complicated multi-vector energy system, where the understanding of interactions between fossil fuels, renewable energy, interconnection and economic power system operation is increasingly important. This paper provides a novel and systematic methodology to fully understand the changing dynamics of interconnected energy systems from a gas and power perspective. A fully realistic unit commitment and economic dispatch model of the 2030 power systems in Great Britain and Ireland, combined with a representative gas transmission energy flow model is developed. The importance of multi-jurisdictional integrated energy system operation in one of the most strategically important renewable energy regions is demonstrated.

The use of Ecological and Carbon Footprint Analysis in regional policy making: application and insights using the REAP model

This paper builds on and extends previous research to contribute to ongoing discussion on the use of resource and carbon accounting tools in regional policy making. The Northern Visions project has produced the first evidence-based footpath setting out the actions that need to be taken to achieve the step changes in the Ecological and Carbon Footprint of Northern Ireland. A range of policies and strategies were evaluated using the Resources and Energy Analysis Programme. The analysis provided the first regional evidence base that current sustainable development policy commitments would not lead to the necessary reductions in either the Ecological Footprint or carbon dioxide emissions. Building on previous applications of Ecological Footprint analysis in regional policy making, the research has demonstrated that there is a valuable role for Ecological and Carbon Footprint Analysis in policy appraisal. The use of Ecological and Carbon Footprint Analysis in regional policy making has been evaluated and recommendations made on ongoing methodological development. The authors hope that the research can provide insights for the ongoing use Ecological and Carbon Footprint Analysis in regional policy making and help set out the priorities for research to support this important policy area

Integrating Land Use Planning and Transportation: Policy formulation in the Belfast Metropolitan Area

Much of the interest in sustainable cities relates to the inexorable rise in the demand for car travel and the contribution that certain urban forms and land-use relationships can make to reducing energy consumption. Indeed, this demand is fuelled more by increased spatial separation of homes and workplaces, shops and schools than by any rise in trip making. This paper evaluates recent efforts to integrate land-use planning and transportation policy in the Belfast Metropolitan Area by reviewing the policy formulation process at both a regional and city scale. The paper suggests that considerable progress has been made in integrating these two areas of public policy, both institutionally and conceptually. However, concerns are expressed that the rhetoric of sustainability may prove difficult to translate into implementation, leading to a further dislocation of land-use and transportation.