Sensitivity of energy system investments to policy regulation changes: Too many, too fast?

B-Tier
Journal: Energy Policy
Year: 2018
Volume: 119
Issue: C
Pages: 196-205

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we argue, that the interaction of energy policy regulations in the European electricity sector may be described by the slow-fast class of dynamical systems. Such systems may exhibit drastic changes in their dynamics known as bifurcations; one important being the so called blue sky catastrophe. Once reaching such a state, the slow system becomes unresponsive to the changes in the fast system. For the energy-policy nexus this translates into the energy system becoming unresponsive to policy interventions leading to a freeze in the system dynamics. Application of this result allows us to argue that caution is needed when updating economic policies to achieve a faster transition towards a low carbon energy supply structure. To avoid this risk the policy design should be aimed at long term incentive structures with less frequent but more consistent interventions.

Technical Details

RePEc Handle
repec:eee:enepol:v:119:y:2018:i:c:p:196-205
Journal Field
Energy
Author Count
2
Added to Database
2026-01-24