Ontemporary Policy Environmental Economics

” Project 3: Environmental Economics

” Each project should be approximately 4000 words in length.

” In order to abate climate change the EU has set forth a mandate to produce 20% of energy from renewable sources by 2020. As part of this initiative the UK has to produce 15%of its energy from renewable sources by 2020.

(i) Do you think this normative approach is necessary or the market will ensure proliferation of renewable energy as the fossil fuels get depleted and energy demand rises?

” (Social) Cost-benefit analysis, discount rates, impact pathway
” Diversification
” fluctuating price for fossil fuels

(ii) Describe the initiatives that the UK government is implementing to reach this objective. Discuss their progress. In your opinion what (if any) regulatory mechanisms will be necessary in the future?

” Department for Business Enterprise and Regulatory Reform (BERR)
” Office of the Gas and Electricity Markets (Ofgem)
” Department of Trade and Industry (DTI)

” The Grid
” Generators sell electricity to
”  Suppliers who sell it to
” Customers

Renewable energy sources
” hydro
” Onshore, offshore wind
” Biomass
” Wave and tidal
” Geothermal
” solar

(iii) What is the effect of the switch to renewables on
” a) the structure of energy industry,
” b) UK economy in general,
” c) world energy trade?
” You may want to use concepts of cost-benefit analysis, environmental accounting, ecological footprint analysis.


” Academic articles (google.scholar)
” Government websites
” NGOs, interest, lobby groups

Project Structure
Different projects require different structures, but the guide below is fairly representative of many published reports and papers.
(i)One page Executive Summary

(ii) Introduction: Aims and objectives of the study. The nature of the policy
problem Structure of the report and the approach to the problem. A
summary of the key findings.

(iii) Key data trends.

(iv) Theoretical approach to the analysis.

(v) Empirical analysis of the data, applying the theory.

(vi) Policy recommendations

(vii) Conclusions.

(viii) References (not dominated by web sources).

In assessing your projects, marker will be looking for:

1. Evidence of understanding the economic principles, concepts, theories and the
policy issues.
2. Addressing adequately all elements required by the question.
3. Degree of analysis and clarity of arguments.
4. Appropriate use of diagrams when necessary.
5. Appropriate style and presentation.
Presentation of written work:
Presentation is important. Please note that attention should be paid to presentation and
format by including a title page, table of contents and list of figures and tables. Also
you should adopt, where appropriate, a system of sections and subsections with a
consistent hierarchy. [The civil service system of 1, 1.1, 1.2, 1.2.1 etc. can be used.]
It is essential that references are given, indicated in the text by authors name and year
of publication, e.g. Goodall (1988). The Harvard system of listing references should
be given at the end of the paper before any appendices and annexes. The course
lecturers will be glad to advise you on this system.

Some useful papers

” Impact of alternative electricity generation technologies on the Scottish economy: an illustrative input output analysis
G Allan1, P G McGregor1,2_, J K Swales1,2, and K Turner1
1Fraser of Allander Institute and Department of Economics, University of Strathclyde, UK
2Centre for Public Policy for Regions (CPPR), University of Glasgow and University of Strathclyde, UK
The manuscript was received on 11 March 2006 and was accepted after revision for publication on 20 July 2006.
DOI: 10.1243/09576509JPE301

” Netherlands Bureau for Economic Policy Analysis Energy Policies and Risks on Energy Markets
A cost-benefit analysis:
Jeroen de Joode
Douwe Kingma
Mark Lijesen
Machiel Mulder and Victoria Shestalova

ISSN: 1532-5008 print/1532-5016 online
DOI: 10.1080/15325000490208227
Technology and Status of Developments in
Harnessing the World s Untapped
Wind-Power Resources
University of Glasgow
Glasgow, UK