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Nock, Destenie

Publications and source records attributed to Nock, Destenie.

Tax Credits for Clean Electricity: The Distributional Impacts of Supply-Push Policies in the Power Sector

We evaluate distributional and efficiency consequences of the bulk power clean electricity tax credits authorized by the 2022 Inflation Reduction Act. To do so, we link detailed electricity capacity expansion, computable general equilibrium, microsimulation, and air pollution models to estimate economic welfare and health incidence across demographic groups. We evaluate trade-offs between policy efficiency and income progressivity by comparing the tax credits to cap-and-trade policies. The tax credits encourage increased clean electricity investment, resulting in a reallocation of capital from elsewhere in the economy, higher prices for capital and other goods, lower power prices, and lower emissions. The tax credits yield progressive outcomes for economic welfare at the expense of efficiency while all modeled policies demonstrate progressivity in health impacts. The health benefits, absent climate benefits, exceed total policy costs and provide greater benefits for low-income and historically marginalized households given coincidence of household locations and emissions exposure intensity.

distributional impacts↗

Equity and modeling in sustainability science: Examples and opportunities throughout the process

Equity is core to sustainability, but current interventions to enhance sustainability often fall short in adequately addressing this linkage. Models are important tools for informing action, and their development and use present opportunities to center equity in process and outcomes. This Perspective highlights progress in integrating equity into systems modeling in sustainability science, as well as key challenges, tensions, and future directions. We present a conceptual framework for equity in systems modeling, focused on its distributional, procedural, and recognitional dimensions. We discuss examples of how modelers engage with these different dimensions throughout the modeling process and from across a range of modeling approaches and topics, including water resources, energy systems, air quality, and conservation. Synthesizing across these examples, we identify significant advances in enhancing procedural and recognitional equity by reframing models as tools to explore pluralism in worldviews and knowledge systems; enabling models to better represent distributional inequity through new computational techniques and data sources; investigating the dynamics that can drive inequities by linking different modeling approaches; and developing more nuanced metrics for assessing equity outcomes. We also identify important future directions, such as an increased focus on using models to identify pathways to transform underlying conditions that lead to inequities and move toward desired futures. By looking at examples across the diverse fields within sustainability science, we argue that there are valuable opportunities for mutual learning on how to use models more effectively as tools to support sustainable and equitable futures.

54 ENVIRONMENTAL SCIENCES↗

Metrics for Decision-Making in Energy Justice

Energy equity and justice have become priority considerations for policymakers, practitioners, and scholars alike. To ensure that energy equity is incorporated into actual decisions and analysis, it is necessary to design, use, and continually improve energy equity metrics. In this article, we review the literature and practices surrounding such metrics. We present a working definition for energy justice and equity, and connect them to both criteria for and frameworks of metrics. We then present a large sampling of energy equity metrics, including those focused on vulnerability, wealth creation, energy poverty, life cycle, and comparative country-level dynamics. We conclude with a discussion of the limitations, gaps, and trade-offs associated with these various metrics and their interactions thereof.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Tax Credits for Clean Electricity: The Distributional Impacts of Supply-Push Policies in the Power Sector

We evaluate distributional and efficiency consequences of the bulk power clean electricity tax credits authorized by the 2022 Inflation Reduction Act. To do so, we link detailed electricity capacity expansion, computable general equilibrium, data-rich microsimulation, and air pollution models to estimate the policy incidence in terms of economic welfare and health impacts across a wide range of demographic groups. We evaluate the tradeoff between policy efficiency and income progressivity by comparing the tax credits to cap-and-trade policies that vary revenue recycling approaches. Under the scenarios analyzed the bulk power tax credits lead to increased clean electricity technology deployment resulting in a reallocation of capital from elsewhere in the economy, higher prices for capital and other goods, lower power prices, and lower emissions. The tax credits yield progressive outcomes for both economic welfare and health impacts. The health benefits exceed total policy costs and provide greater benefits for low-income and historically-marginalized households given the coincidence of household and emission source locations.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Support for climate policy researchers

In the past 2 years, the European Union and the United States announced plans to spend $573 and $391 billion, respectively, through 2030 on climate actions and passed landmark legislation such as the US Inflation Reduction Act. Although unprecedented in size and scope, these combined investments of $964 billion pale in comparison to the more than $4 trillion in global clean energy investment needed annually by 2030 to stay on track for net zero greenhouse gas emissions by 2050. Furthermore, to maximize the impact of this public money, efficient policies informed by independent, objective analysis will be needed. Yet scientists who commit to policy-relevant research face unique challenges that must be addressed.

54 ENVIRONMENTAL SCIENCES↗

Latent demand for electricity in sub-Saharan Africa: A review

Universal access to electricity is an essential part of sub-Saharan Africa's path to development. With the United Nations setting Goal 7 of its sustainable development goals to be universal access to clean, reliable and affordable electricity, substantial research efforts have been made to optimize electricity supply based on projected demand in sub-Saharan African (SSA) countries. Our study reviews the literature on electricity demand, with a specific focus on latent demand (i.e., electricity demand that would exist if the necessary techno-economic conditions were met) in SSA. We found that out of 57 electricity demand papers reviewed, only 3 (5%) incorporated latent demand in their electricity demand projections. Furthermore, majority of the literature on electricity consumption and demand estimation in SSA use econometric models to identify determinants of electricity consumption and project future demand. We find that population density, urbanization, household income, electricity price, market value of crops and availability of natural resources to be significant determinants of electricity consumption in SSA. We conclude the review by proposing a methodology, and providing an initial proof of concept, for more accurately projecting latent demand in sub-Saharan Africa. Incorporating latent demand in electrification models would help inform energy sector stakeholders (e.g., investors and policymakers) about which sectors and geographic locations hold potential for wealth creation via electricity access.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Comparison of temporal resolution selection approaches in energy systems models

Capacity expansion models for the power sector are used to project future decisions over the coming decades by simulating investment and operation decisions for the use of electricity. Due to model performance constraints, these models typically do not explicitly simulate every hour within a year, but instead simulate representative time segments (groups of hours). This paper evaluates different approaches for selecting time segments across three methods: sequential, categorical, and clustering, across a wide range of time-segment quantities, for a total of 204 temporal profiles. To measure the performance of each profile's ability to accurately represent data, the root-mean-square-error of each profile's time segments are compared to the data's original hourly data. The temporal alignment across regions is also measured (i.e., how often windy days align across regions). Different spatial resolutions were applied for a subset of the temporal selection methods to investigate the impact spatial resolution has on performance. This paper provides a framework for measuring the value of different temporal selection methods and of adding more granular data to energy system models. Overall, multi-criteria clustering yields the lowest root-mean-square-error across all datasets evaluated and provides a holistic view of the intertwined relationships between renewable generation and electricity demand.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Who is marginalized in energy justice? Amplifying community leader perspectives of energy transitions in Ghana

There is a divide in energy access studies, between technologically-focused modeling papers in engineering and economics, and energy justice frameworks and principles grounded in social sciences. Quantitative computational models are necessary when analyzing energy, and more specifically electricity, systems, as they are technologically-complex systems that can diverge from intuitive patterns. To assure energy justice, these models must be reflective of, and informative to, a wide range of stakeholders, including households and communities alongside utilities, governments, and others. Yet, moving from a qualitative understanding of preferences to quantitative modeling is challenging. In this perspective piece, we pilot the use of the value-focused thinking framework to inform stakeholder engagement. The result is a strategic objective hierarchy that highlights the tradeoffs and the social, economic and technological factors that need to be measured in models. We apply the process in Ghana, using a survey, stakeholder workshops, and follow-up interviews to uncover key tradeoffs and stakeholder-derived objectives. We discuss three key areas that have been rarely, if ever, well-represented in energy models: (1) the relationship between the dynamics of electricity end-use and the technology and economic structure of the system; (2) explicit tradeoffs between electricity access, cost, and reliability as defined by stakeholders; and (3) the definition of new objectives, such as minimizing hazards related to theft. We conclude that this model of engagement provides an opportunity to tie together rigorous qualitative analysis and stakeholder engagement with crucial quantitative models of the electricity system.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗