This paper proposes a partial equilibrium model to describe the global crude oil market. Pricing on the global crude oil market is strongly influenced by price indices such as WTI (USA) and Brent (Northwest Europe). Adapting an approach for pool-based electricity markets, the model captures the particularities of these benchmark price indices and their influence on the market of physical oil. This ...
In spite of the sharp decline of crude oil prices since the fall of 2008, the current price level of approximately $65 per barrel is significantly higher than the long-term average. The market power of the Organization of Petroleum Exporting Countries (OPEC), which is partially responsible for this price level, remains strong. While market prices for commodities such as coal are typically reflecting ...
According to conservative calculations, over $580 billion was spent worldwide on environmental goods and services and renewable energy technologies1 in 2004. So-called "green spending" is set for strong growth in the future on account of the long-term expansion of the global economy and mounting environmental challenges. Significant opportunities for growth and employment in Germany are also offered ...
In recent years, CO2 emissions have become the leading basis of assessment for car taxes in most European countries. In July 2009, with a view to pursuing climate policy goals, also Germany began using this factor to assess taxation on cars. The DIW Berlin has carried out a systematic and quantitative comparison of car taxation in Europe.1 The results reveal high tax rates in over ten countries that ...
Since the late 1990s, natural gas has been the second most important source of energy in the European Union after oil. Current forecasts predict that the demand for natural gas will continue to rise over the long term. As the production of natural gas in the EU has already passed its peak and will drop in coming years, natural gas imports will have to rise considerably. To ensure according supplies ...
In this paper, we use a computable general equilibrium model (WIATEC) to study the potential impact of implementing Europe's 20-20-20 climate policy. The results show that the economic costs of implementing the policy are only moderate and within the range of recent empirical evidence. Furthermore, they also indicate that there is a possibility that the existing allocations to the Europena sectors ...
Methane is a major anthropogenic greenhouse gas, second only to carbon dioxide (CO2) in its impact on climate change. Methane (CH4) has a high global warming potential that is 25 times as large as the one of CO2 on a 100 year time horizon according to the latest IPCC report. Thus, CH4 contributes significantly to anthropogenic radiative forcing, although it has a relatively short atmospheric perturbation ...
In this paper, we discuss potential developments of the world natural gas industry at the horizon of 2030. We use the World Gas Model (WGM), a dynamic, strategic representation of world natural gas production, trade, and consumption between 2005 and 2030. We specify a "base case" which defines the business-as-usual assumptions based on forecasts of the world energy markets. We then analyze the sensitivity ...