Minimal cross-subsidies approach for loss allocation in distribution networks with open access

Open access philosophy applied by regulatory agencies may lead to a scenario where captive consumers will solely face the responsibility on distribution network's losses even with Independent Energy Producers (also known as Distributed Generation) and Independent Energy Consumers connected to the system. This work proposes the utilization of a loss allocation method in distribution systems where open access is allowed, in which cross-subsidies, that appear due to the influence the generators have over the system losses, are minimized. Thus, guaranteeing to some extent the efficiency and transparency of the economic signals of the market. Results obtained through the Zbus loss allocation method adapted for distribution networks are processed in such a way that the corresponding allocation to the generation buses is divided among the consumer buses, while still considering consumers spatial characteristics. © 2007 IEEE.

Access to housing and direct housing subsidies: some Latin American experiences

Includes bibliography

El efecto de los subsidios, la reglamentación y las diversas formas de propiedad en la calidad y eficacia operativa de los servicios del transporte urbano en América Latina = The impacts of subsidies, regulation, and different forms of ownership on the service quality and operational efficiency of urban bus systems in Latin America

Incluye Bibliografía

Chile: subsidies, credit and housing deficit

Includes bibliography.

Footprint of recycled water subsidies downwind of Lake Michigan

Continental evaporation is a significant and dynamic flux within the atmospheric water budget, but few methods provide robust observational constraints on the large-scale hydroclimatological and hydroecological impacts of this ‘recycled-water' flux. We demonstrate a geospatial analysis that provides such information, using stable isotope data to map the distribution of recycled water in shallow aquifers downwind from Lake Michigan. The δ2H and δ18O values of groundwater in the study region decrease from south to north, as expected based on meridional gradients in climate and precipitation isotope ratios. In contrast, deuterium excess (d = δ2H − 8 × δ18O) values exhibit a significant zonal gradient and finer-scale spatially patterned variation. Local d maxima occur in the northwest and southwest corners of the Lower Peninsula of Michigan, where ‘lake-effect' precipitation events are abundant. We apply a published model that describes the effect of recycling from lakes on atmospheric vapor d values to estimate that up to 32% of recharge into individual aquifers may be derived from recycled Lake Michigan water. Applying the model to geostatistical surfaces representing mean d values, we estimate that between 10% and 18% of the vapor evaporated from Lake Michigan is re-precipitated within downwind areas of the Lake Michigan drainage basin. Our approach provides previously unavailable observational constraints on regional land-atmosphere water fluxes in the Great Lakes Basin and elucidates patterns in recycled-water fluxes that may influence the biogeography of the region. As new instruments and networks facilitate enhanced spatial monitoring of environmental water isotopes, similar analyses can be widely applied to calibrate and validate water cycle models and improve projections of regional hydroecological change involving the coupled lake-atmosphere-land system. Read More: http://www.esajournals.org/doi/abs/10.1890/ES12-00062.1

On Voters' Attitudes Towards Unemployment Insurance Subsidies across Regions: A Canadian Simulation

The Canadian unemployment insurance program is designed to reflect the varying risk of joblessness across regions. Regions that are considered low-risk areas subsidize higher risk ones. A region's risk is typically proxied by its relative unemployment rate. We use a dynamic, heterogeneous-agent model calibrated to Canada to analyze voters preferences between a uniformly generous unemployment insurance and the current system with asymmetric generosity. We find that Canada's unusual unemployment insurance system is surprisingly close to what voters would choose in spite of the possibilities of moral hazard and self-insurance through asset build-up.

Energy subsidies from a climate and trade perspective

A short paper for dissemination based on a research piece published by the E15Initiative: Subsidies, Clean Energy, and Climate Change, February 2015. Implemented jointly by ICTSD and the World Economic Forum, the E15Initiative convenes world-class experts and institutions to generate strategic analysis and recommendations for government, business, and civil society geared towards strengthening the global trade and investment system. The paper is also published in Spanish and Portuguese.

Subsidies, Clean Energy, and Climate Change

Estimates show that fossil fuel subsidies average USD 400–600 billion annually worldwide while renewable energy (RE) subsidies amounted to USD 66 billion in 2010 and are predicted to rise to USD 250 billion annually by 2035. Domestic political rationales for energy subsidies include promoting innovation, job creation and economic growth, energy security, and independence. Energy subsidies may also serve social and environmental goals. Whether and to what extent subsidies are effective to achieve these goals or instead lead to market distortions is a matter of much debate and the trade effects of energy subsidies are complex. This paper offers an overview of the types of energy subsidies that are used in the conventional and renewable energy sectors, and their relationship with climate change, in particular greenhouse gas emissions. While the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM) is mostly concerned with harm to competitors, this paper considers the extent to which the Agreement could also discipline subsidies that cause harm to the environment as a global common. Beyond the existing legal framework, this paper surveys a number of alternatives for improving the ability of subsidies disciplines to internalize climate change costs of energy production and consumption. One option is a new multilateral agreement on subsidies or trade remedies (with an appropriate carve-out in the WTO regime to allow for it if such an agreement is concluded outside it). Alternatively, climate change-related subsidies could be included as part of another multilateral regime or as part of regional agreements. A third approach would be to incorporate rules on energy subsidies in sectorial agreements, including a Sustainable Energy Trade Agreement such as has been proposed in other ICTSD studies.