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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 19 records
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DOE OSTI2020

Global Market and Economic Welfare Implications of Changes in Agricultural Yields Due to Climate Change

The economic welfare effects of climate change on global agriculture will be mediated by several complex biophysical and economic processes. For a given emissions scenario, these include: (1) the response of the climate system to anthropogenic forcing, (2) the response of crop yields to climate system and carbon dioxide changes, given baseline improvements in crop yields, (3) the response of agricultural markets to crop yield changes, and (4) the economic welfare implications of such market responses. In this paper, we use information about the first two processes from available climate-crop model comparison studies to analyze implications for the third and fourth processes. Applying the range of crop yield changes in a Global Integrated Assessment Model (GCAM) highlights several important economic relationships. First, we find a consistent relationship between global cropland area and yield change that is approximately orthogonal to the relationship between regional cropland area and yield change. Second, we find that the change in economic welfare, expressed as total surplus change per unit economic output, peaks during the 21st century. Third, we find that, at the global level, changes in yield affect both producer surplus and consumer surplus. Specifically, surplus changes to producers and consumers are always opposite in sign, although which economic actors gain or lose varies with the sign of yield change for any given commodity. Taken together, these results contribute to a growing body of research on climate-induced changes on agriculture by highlighting several economic relationships that are robust to differences in the underlying biophysical responses.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2023

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities: Preprint

We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources downstream of a regulated distribution system operator's (DSO) net energy metering revenue meter. Due to the elevated risk of grid constraint violations and to ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, the proposed community market mechanism maximizes the community's social welfare in a decentralized fashion while every community member abides by its own operating envelopes. We show that the proposed market mechanism conforms with the cost-causation principle and guarantees community members a surplus level no less than their maximum surplus when they autonomously face the DSO. Lastly, a numerical study is implemented to showcase and compare the community's welfare under the proposed operating-envelopes-aware mechanisms to others, including the welfare of customers under the DSO's regime.

distributed energy resources aggregation↗
DOE OSTI2023

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

distributed energy resources aggregation↗
DOE OSTI2025

Network-Aware and Welfare-Maximizing Dynamic Pricing for Energy Sharing

The proliferation of behind-the-meter (BTM) distributed energy resources (DER) within the electrical distribution network presents significant supply and demand flexibilities, but also introduces operational challenges such as voltage spikes and reverse power flows. In response, this paper proposes a network-aware dynamic pricing framework tailored for energy-sharing coalitions that aggregate small, but ubiquitous, BTM DER downstream of a distribution system operator's (DSO) revenue meter that adopts a generic net energy metering (NEM) tariff. By formulating a Stackelberg game between the energy-sharing market leader and its prosumers, we show that the dynamic pricing policy induces the prosumers toward a network-safe operation and decentrally maximizes the energysharing social welfare. The dynamic pricing mechanism involves a combination of a locational ex-ante dynamic price and an ex-post allocation, both of which are functions of the energy sharing's BTM DER. The ex-post allocation is proportionate to the price differential between the DSO NEM price and the energy-sharing locational price. Simulation results using real DER data and the IEEE 13-bus test systems illustrate the dynamic nature of network-aware pricing at each bus, and its impact on voltage.

aggregates↗
DOE OSTI2024

Network-Aware and Welfare-Maximizing Dynamic Pricing for Energy Sharing: Preprint

The proliferation of behind-the-meter (BTM) distributed energy resources (DER) within the electrical distribution network presents significant supply and demand flexibilities, but also introduces operational challenges such as voltage spikes and reverse power flows. In response, this paper proposes a network-aware dynamic pricing framework tailored for energy-sharing coalitions that aggregate small, but ubiquitous, BTM DER downstream of a distribution system operator's (DSO) revenue meter that adopts a generic net energy metering (NEM) tariff. By formulating a Stackelberg game between the energy-sharing market leader and its prosumers, we show that the dynamic pricing policy induces the prosumers toward a network-safe operation and decentrally maximizes the energysharing social welfare. The dynamic pricing mechanism involves a combination of a locational ex-ante dynamic price and an ex-post allocation, both of which are functions of the energy sharing's BTM DER. The ex-post allocation is proportionate to the price differential between the DSO NEM price and the energy sharing locational price. Simulation results using real DER data and the IEEE 13-bus test systems illustrate the dynamic nature of network-aware pricing at each bus, and its impact on voltage.

energy communities↗
DOE OSTI2024

The Effect of Natural Disasters and Extreme Weather on Household Location Choice and Economic Welfare

Natural disasters have increased in the United States in recent decades. At the same time, there has been a shift in population away from the states in the Northeast and Midwest to areas in the Sun Belt, many of which face increased risks from natural disasters. Spatial equilibrium theory predicts that households trade off risk for income in making location decisions. This study estimates a spatial equilibrium model of household location choice to understand these trade-offs. The results show that households require as much as 0.40% of annual household income to endure an additional disaster over the course of a decade. They also show that these values differ substantially depending on household skill level with higher-skill, higher-income households willing to pay three times more in annual income to avoid an additional natural disaster. Furthermore, these results have important implications for policymakers thinking about climate change adaptation and environmental justice.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2024

Data for Grogan et al. "Bringing Hydrologic Realism to Water Markets"

This data set provides model output and post-processing files required to reproduce the results, tables, and figures in the paper "Bringing Hydrologic Realism to Water Markets" by Grogan et al. (in review). Other input data used in this study includes: Lisk, M., Grogan, D., Zuidema, S., Caccese, R., Peklak, D., Zheng, J., Fisher-Vanden, K., Lammers, R., Olmstead, S., & Fowler, L. (2023). Harmonized Database of Western U.S. Water Rights (HarDWR) (Version v1) [Data set]. MSD-LIVE Data Repository. https://doi.org/10.57931/2205619 Two models were used in this study: (1) The University of New Hampshire Water Balance Model WBM, and (2) a Water Market Model. Market model code and model output post-processing code that make use of these data can be found here Model output files are: 1. WBM output files: scenario[x]_wbm_output.zip Where [x] is one of 1, 2, 2a, 3, and 3a Each zipped directory contains 7 gridded NetCDF files, each reporting the 10-year annual average value of a given variable, in units of average mm/day: File Name: wbm_indUseGross_yc.nc; Description: Water withdrawals by industry (part of the urban sector) File Name: wbm_domUseGross_yc.nc; Description: Water withdrawals by the domestic sector (part of the urban sector) File Name: wbm_irrigationGross_yc.nc; Description: Water withdrawals for agriculture File Name: wbm_irrigationExtra_yc.nc; Description: Water withdrawals from unsustainable groundwater for agriculture File Name: wbm_indUseEvap_yc.nc; Description: Consumptive water use by industry File Name: wbm_domUseEvap_yc.nc; Description: Consumptive water use by the domestic sector File Name: wbm_irrigationNet_yc.nc; Description: Consumptive water use by agriculture The file full_cell_area.nc gives the area of each grid cell in km2, which is used for converting water depth to water volume. 2. Water market model output & post processing output Folder: marketTrdSummaries/ Description: Files in this folder are used as input to code 1_WelfareCalculation_actual_trades.R. They summarize historical water right trade transactions in each state. File Name: welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: welfare_data_actual.rdata; Description: welfare gains by WMA from actual historical trades, as shown in Figure 3A. This data is the output of code 1_WelfareCalculation_actual_trades.R File Name: welfare_summary_simulated.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 1. Produced by code 2_DemandCurves_simulated_trades.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_summary_cutoffs_SGMS.xlsx; Description: Welfare gains by state as simulated by the market model in Scenario 2a. Produced by code 3_DemandCurves_simulated_trades_cutoffs.R, and used in code 4_WelfareCalculation.R. File Name: welfare_data_actual.rdata; Description: Spatial data, actual historical welfare gains by WMA as shown in Figure 3A. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated.rdata; Description: Spatial data, simulated Scenario 1 welfare gains by WMA as shown in Figure 3B. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs.rdata; Description: Spatial data, simulated Scenario 2 welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. File Name: welfare_data_simulated_cutoffs_SGMA.rdata; Description: Spatial data, simulated Scenario 2a welfare gains by WMA. Produced by code 4_WelfareCalculation.R and used by code Figure3.R. Additional files are provided for efficient reproduction of tables and figures. These include: File Name: wma_thresold_dates_Scenario2(a).csv; Description: Wet vs. paper right threshold dates for each WMA. Shown in Figure 2A,B. Produced and used by code calculate_thresolds_Figure2.R File Name: WWRTradeBounds (directory); Description: Trade boundary shapefile required to reproduce Figure 3A-D. Used in code Figure3.R File Name: welfare_region_totals.csv; Description: Welfare gains for the entire study region, as shown in Figure 3E. Used in code Figure3.R File Name: Welfare_gain_by_state_sector.csv; Description: Welfare gains by state and sector, as shown in Figure 3F. Used in code Figure3.R and produced (as a .xlsx file) by code 2_DemandCurves_simulated_trades.R File Name: WECC_MERIT_5min_v3b_mask.nc; Description: Gridded file that identified which land grid cells are in the WBM model domain, used for processing in code Figure4.py File Name: Table_1.csv; Description: All data in Table 1, reproducible from WBM output files using code table_1.R

Economics↗
DOE OSTI2021

Repeal of the Clean Power Plan: Social Cost and Distributional Implications

The Clean Power Plan (CPP) was repealed due to concerns about the “unnecessary, costly burdens” it may impose on electric utilities, thereby delaying efforts to reduce carbon dioxide emissions (CO 2 ) from the electricity sector. This paper examines the greenhouse gas and welfare implications of this repeal while incorporating the presence of the state renewable portfolio standards (RPS) in the US as the status quo. We assess the carbon abatement and welfare costs with the CPP relative to two alternative baselines: a no–policy baseline and a pre–existing policy baseline with the RPS. The CPP is implemented as a regional mass–based standard, a regional rate–based standard, or as a national mass–based standard with trading of emissions across regions over the 2022–2030 period. We find that the incremental discounted welfare costs per metric ton of CO 2 that would have been abated by the CPP relative to the RPS would be substantially lower than the global social cost of CO 2 . However, the overall costs of carbon abatement with the CPP added to the RPS would have become higher than the social cost of carbon when estimated relative to a no–policy baseline, except with a national mass–based CPP. Across all policy combinations and choice of baselines, the aggregate welfare costs were lowest under a national mass–based standard and highest under the regional rate–based standard. Here, we also find that the CPP would have imposed large welfare costs on consumers and fossil fuel producers while benefiting the renewable fuel producers.

, Q42↗
DOE OSTI2022

Quantifying policy gaps for achieving the net-zero GHG emissions target in the U.S. light-duty vehicle market through electrification

The U.S. light-duty vehicle (LDV) industry, a major greenhouse gas (GHG) emitting sector, is embracing decarbonization. Considering only electrification pathways, this study uses publicly-available tools – MA3T and VISION on vehicle market penetration, fleet accounting and life-cycle analysis to quantify the policy gaps for LDVs to achieve the net-zero GHG emissions target in nine vehicle penetration cases under two electricity mix scenarios, including the U.S. administration's decarbonization strategy – 100% clean electricity by 2035. The MA3T model is a multinomial discrete choice model for market share projection by vehicle technology, and the VISION is a vehicle stocks and GHG emissions projection model by using vehicle and travel characteristics. This study projects the impacts of technology and policy enforcement on shaping the dynamics and decarbonization of the LDV market. Additionally, achieving the expected improvement of battery technology and charging infrastructure is critical but can only reduce the 2050 GHG emissions to 48–54% of the 2020 level under the electricity renewable mix scenario. It is almost impossible to achieve a 100% battery electric vehicle stock by 2050 and the 2050 net-zero target in the LDV industry unless ban of internal combustion engine technology is implemented starting in 2035 and under the 2035 100% clean electricity scenario. These extreme conditions also sacrifice most from the consumer welfare perspective. A greater policy forcing intensity accelerates plug-in electric vehicle penetration, while with declining marginal effect and reduced consumer welfare. Among the investigated policy scenarios, the policy forcing intensity equivalent to a fuel tax of $1–2 per gasoline gallon reduces the most GHG emissions while keeping a positive consumer welfare.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2023

Day-ahead continuous double auction-based peer-to-peer energy trading platform incorporating trading losses and network utilisation fee

Integration of distributed energy resources, such as photovoltaic solar (PV), introduces new opportunities to establish local energy market frameworks to improve renewable energy utilisation in residential sectors. Such peer-to-peer (P2P) energy trading refers to a local market structure where customers (and prosumers) interact to share excess PV generation to enhance the individual and community social welfare. In this work, a day-ahead continuous double auction (CDA)-based P2P market structure considering network losses and network utilisation fees was designed. Day-ahead PV energy is modelled using fractional integral polynomials and the output is forecasted using an autoregressive integrated moving average model for each market interval. Based on the customer load and excess PV energy, the CDA market is cleared using a bid/ask matching mechanism. The performance of the P2P market was evaluated by computing different welfare metrics while analysing the effect of network constraints. The results show that the designed CDA-based P2P market structure increases the social welfare of all participants by an average of 17.75% compared to the baseline for the presented cases. Moreover, the impact of the forecasting error between the day-ahead and real-time market was also quantified.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2020

The Critical Role Of Conversion Cost And Comparative Advantage In Modeling Agricultural Land Use Change

The difference in land use modeling approaches is an important uncertain factor in evaluating future climate scenarios in global economic models. We compare five widely used land use modeling approaches: constrained optimization, constant elasticity of transformation (CET), the additive form of constant elasticity of transformation (ACET), logit, and Ricardian. We demonstrate that the approaches differ not only by the extent of parameter uses but also by the definition of conversion cost and the consideration of comparative advantage implied by land heterogeneity. We develop a generalized hybrid approach that incorporates ACET/logit and Ricardian to account for both conversion cost and comparative advantage. We use this hybrid approach to estimate future climate impacts on agriculture. We find a welfare loss of about 0.38–0.46% of the global GDP. We demonstrate that ignoring land heterogeneity or land conversion costs underestimates climate impacts on agricultural production and welfare.

54 ENVIRONMENTAL SCIENCES↗
DOE OSTI2024

Bid-in Price-Sensitive Load: A Comparison with Fixed Load in a Realistic Test System

Bulk power systems operations, in both simulation and practice, are often built on the principle of minimizing production costs, which assumes to first order that demand is fixed and that the only degrees of freedom for balancing generation and load are supply-side unit commitment and dispatch decisions. The purpose of this report is to interrogate the value of welfare-maximizing markets that not only physically balance demand and supply but also ensure that market outcomes provide consumer value by directly maximizing welfare, defined as the value of consumption minus production costs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2022

Assessing the efficiency implications of renewable fuel policy design in the United States

Abstract Obligated parties have chosen to comply with the Renewable Fuel Standard (RFS) by increasing the blending of biomass‐based biodiesel beyond originally targeted levels rather than increasing blending/consumption of ethanol to targeted levels that would have required pricing higher blends of ethanol (E85) at or below an energy‐equivalent level to E10. This paper develops a welfare‐economic framework to analyze the extent to which the nested design and the accompanying cellulosic waiver credit and biodiesel tax credit contributed to a compliance strategy by blenders that favored blending of biodiesel instead of inducing consumption of E85, and its implications for social welfare.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2021

Challenges in simulating economic effects of climate change on global agricultural markets

Abstract Many approaches have been used to investigate climate change impacts on agriculture. However, several caveats remain in this field: (i) analyses focus only on a few major crops, (ii) large differences in yield impacts are observed between projections from site-based crops models and Global Gridded Crop Models (GGCMs), (iii) climate change impacts on livestock are rarely quantified, and (iv) several causal relations among biophysical, environmental, and socioeconomic aspects are usually not taken into account. We investigate how assumptions about these four aspects affect agricultural markets, food supply, consumer well-being, and land use at global level by deploying a large-scale socioeconomic model of the global economy with detailed representation of the agricultural sector. We find global welfare impacts several times larger when climate impacts all crops and all livestock compared to a scenario with impacts limited to major crops. At the regional level, food budget can decrease by 10 to 25% in developing countries, challenging food security. The role of land area expansion as a major source of adaptation is highlighted. Climate impacts on crop yields from site-based process crop models generate more challenging socioeconomic outcomes than those from GGCMs. We conclude that the agricultural research community should expand efforts to estimate climate impacts on many more crops and livestock. Also, careful comparison of the GGCMs and traditional site-based process crop models is needed to understand their major implications for agricultural and food markets.

Gurgel, Angelo C. (ORCID:0000000183319508)↗
DOE OSTI2020

A comparison study on trading behavior and profit distribution in local energy transaction games

With the increasing integration of distributed energy resources, localized peer-to-peer energy transactions are receiving more attention since they could absorb more distributed renewables locally and stabilize the power grid. To better study the trading behavior and provide guidance for a viable local market design, different game-theoretical frameworks including cooperative and non-cooperative games are established and compared here. For the cooperative grand coalition, the maximum social welfare is guaranteed, the Shapley value and bargaining based approaches are implemented for further profit redistribution. It is shown that the asymmetrical bargaining power can be critical in the final payment clearing and it is equivalent to the Shapley value allocation if prosumers bargain based on their marginal contributions. Non-cooperative trading is formulated by using a Stackelberg bilevel model in which the upper level has the privilege in internal price setting. However, system optimum is not obtained due to competition, and the selfish leader could take away 89% of the collective benefit by price-gap based arbitraging. Aiming for a long-lasting trading market, a virtual benevolent leader and a uniform price structure in which purchase price equals selling price are tested. Experimental results indicate that maximum social welfare and a fairer profit allocation can be achieved with a uniform price structure, regardless of the selfish or benevolent attitude.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗