Current projects

The Value of Power Reductions and Outages in Swedish Industry and the Public Sector

Funder: EFORIS, Energiforsk
Grant: 1 071 500 sek
Duration: 2017-2018
Project manager: Runar Brännlund
Researchers: Thomas Broberg, Runar Brännlund, Tommy Lundgren, Lars Persson
(Swedish: Värdet av effektreduceringar och strömavbrott i svenskt näringsliv och offentlig sektor)

There is today a lively discussion about the question of whether we should have an explicit supply security target for electricity. In short, the discussion is relevant for (at least) two reasons. The first is that the deregulation of the electricity market in 1996 meant that an explicit delivery security target disappeared. The second is the concern that supply, or delivery, security will deteriorate due to the change we see in the production mix towards increasingly intermittent power production. However, the issue of a possible delivery security target, and at what level, cannot be separated from the cost and the value of achieving a given target. The purpose of this project is to study the value, or cost, for power reductions or power outages, for business and the public sector. Estimating the value of electricity, or the cost of loss of electricity, for businesses, including agriculture and the public sector, calls for a different approach than when the household sector is being studied. The objectives of the project can be summarized as follows:
  • Estimate costs for power constraints and power outage for business and public sectors.
  • Analyze factors that affect differences in costs between different industry sectors.
  • Based on estimated costs, carry out scenario analyzes of different power limitations / power outages of different duration and at different times.
  • Get a deeper understanding of the driving forces behind changes in the cost of power outages over time.
  • Contribute to method development to estimate power outages.

Enriching the energy policy toolbox - How to deal with real inefficiencies in energy use?

Grant: 5 674 000 sek
Duration: January 2015 - June 2018
Funder: Swedish Energy Agency
Project manager and contact: Andrius Kazukauskas

A large literature argues that firms and households are not energy efficient and would therefore be able to reduce their energy use and costs. In the project report for SEA (Dnr 2013-003213) we have provided a rationale for policy makers to act on improving energy efficiency. The overarching purpose of this project is to bring the discussion on inefficiencies in energy use from theory to practical application. To accomplish this we will investigate inefficiencies in energy use relating to split-incentives and inattention. Social ‘nudges’ are one example of policy instruments which may have a significant impact on energy use. In this project we intend to implement a field experiment (in partnership with AB Bostaden in Umeå) which could help us to answer the question of how social norms affect energy use among Swedish households. We also plan to use survey data to study inattention and data from energy certifications of multi-dwelling buildings to study the split-incentives problem.

Energy taxation in Sweden

Grant: 1 500 000 sek 
Funder: Energiforsk
Project manager and contact: Bengt Kriström

The project aims to study the effects of energy taxation from a general equilibrium perspective

On the Economics of Corporate Social Responsibility - Theoretical and Empirical Analysis of Voluntary Overcompliance

Funderes: Torsten Söderbergs Forskningsstiftelse
Duration: 2013-2014
Contact: Tommy Lundgren

An important part of the sustainability debate has been devoted to what companies can do to facilitate sustainable development, so called corporate social responsibility (CSR). Profit maximization doesn't have to be in conflict with social responsibility as this behaviour may be strategic. Many empirical studies focus on the effects of being socially responsible on firm profitability. To some extent there are also theoretical analyses of CSR, but this research is still in its infancy; more theoretical studies combined with econometric analysis are needed to understand the drivers behind CSR. Furthermore, empirical studies of CSR need a stronger theoretical foundation than what we have seen in literature thus far. Specifically, in the context of CSR, we want to more closely examine the role of preferences, uncertainty, causality, cost of capital, risk, and public policy. It will become evident that these significant elements of economics and finance research agenda are closely linked to CSR.

The electricity consumer – a force on the electricity market

Grant: 1 590 000 sek
Funder: Energiforsk
Project manager and contact: Runar Brännlund

The project aims to estimate the added value lost as a result of various restrictions in household electricity consumption, and household expenses for short power failure, which gives a "price" on a targeted disconnection of electricity. The willingness of households to adjust their electricity use is governed by several factors - both economic and non-economic. One aim of the project is to analyze the extent to which households are willing to adapt to non-economic reasons, for example to facilitate the integration of renewable resources.

Landscape planning for Forest Biodiversity and Diverse Forestry

Funder: Swedish Environmental Protection Agency
Duration: 2016-2018
Project Manager: Gabriel Michanek, Uppsala University
Contact: Göran Bostedt 

According to a state report 2015, it will not be possible to meet the Swedish Environmental Objective "Sustainable Forests" with current or planned policy instruments. This is in part due to the lack of landscape strategies and environmental considerations in felling. Sweden is thus not capable to comply with international obligations to protect habitats according to e.g. the Habitats Directives. At the same time, timber production is essential, not least as biomass plays a significant role in the conversion of the energy system, which relates obligations according to the EU Renewables Directive. The purpose of the project is to explore ecological and legal preconditions for spatial planning of forest landscapes in order to promote a more sustainable and diverse management of forests, aiming at stronger protection of biodiversity in some areas and intensive forestry in other areas. In a first study, an ecological model for landscape strategies and planning-simulation is used, developing scenarios that are used as the basis for a subsequent legal study on landscape forest planning. This study explores how such planning in France is regulated and applied. The study also analyses if adaptive planning (used e.g. in the EU Water Framework Directive) could be used in planning of forest landscapes. Finally, legal complications related to the implementation of forest planning are explored and discussed, for example legal consequences for property rights related to forest resources. In order to create a self-supporting system, where costs for conservation of biodiversity are more evenly distributed among land owners, the project will bring forward and discuss an economic regulation where tree felling is taxed and taxed means are allocated to those land owners who are disfavoured by the restrictions of the plan.

Gold and arsenic. Environmental risks, responsibility and corporate strategies in Boliden 1924-1945

Grant: 1 500 000 sek
Funder: Jan Wallanders och Tom Hedelius Stiftelse
Duration: 2014-2017
Project manager and contact: Ann-Kristin Bergquist

Revealing energy rebound effects in Swedish industry

Grant: 3 599 000 sek
Funder: Swedish Energy Agency
Duration: 2015-2017
Project leader and contact: Tommy Lundgren

In practice, the climate and energy policy decisions rarely account for the so-called rebound effect. This effect erodes the potential of achieving energy conservation from increasing energy efficiency. Therefore, the rebound effect should be considered when designing climate and energy policies. However, we argue that the knowledge about the effect is generally insufficient. For instance, we can find no empirical studies on Swedish industry that aim at discovering the actual rebound effect and its determinants based on historical firm level data. This is the general goal of this project, and it will increase the understanding of how climate and energy policy decisions may contribute to energy conservation and reduction of greenhouse gas emissions – highly relevant for all countries.

The value of recreational fishing in Sweden

Main partner and funder: Swedish Agency for Marine and Water Management
Duration: Ongoing
Contact: Göran Bostedt or Runar Brännlund

The project is based on a survey from the Swedish Agency for Marine and Water Management.

Completed projects

To see more completed projects, click the headline. 

Environmentally Driven Industrial Transformation? A Study of Swedish Pulp and Paper Industry 1960-1990

There is no translation available.

Finansiär: Riksbankens Jubileumsfond
Löptid: 2011-2014
Kontakt: Ann-Kristin Bergquist

We explore the interplay between environmental adaptation, technological development and structural change in the Swedish pulp and paper industry from 1960-1990. During this period, the costs for environmental protection in the pulp and paper industry amounted to about 10-15 percentage of total investments. At the same time, significant emission cuts were accomplished. These changes were carried out simultaneously to the Swedish economy undergoing a period of structural crisis and transformation. The high proportion of environmental investments indicates that environmental adaptation interplayed with an ongoing structural change in the industry; effects that have not been explored in research thus far. In practice, increasing demands for pollution control, caused by a new regulation in 1969, coincide with a need for structural changes, increased efficiency and lowered energy costs. Our project aims at enhancing the empirical and theoretical understanding of how demands for environmental protection interplayed with technological and structural changes during the late the 20th century.

Welfare effects of different electricity generating system

Grant: 750 000 sek
Funder: Energiforsk
Duration: 2015
Contact: Bengt Kriström or Runar Brännlund

Industrial Pollution Control through Case-by-Case Licensing

Grant: 2 607 000 sek
Funder: Swedish Environmental Protection Agency
Duration: 2014-2015
Project manager: Patrik Söderholm, Luleå University of Technology
Contact: Ann-Kristin Bergquist

Electricity markets and consumer flexibility

Funder: Swedish Energy Markets Inspectorate 
Duration: 2013-2014
Contact: Thomas Broberg, Runar Brännlund, Lars Persson or Mattias Vesterberg

Read more about project results

News

Electricity less costly than we think. (published August 24th, 2015)
Flexibility in demand, a matter for the minister of Energy. (published December 1st, 2014)
Better incentives for electricity consumers' flexibility to real time prices. (published June 2nd, 2015)
Working papers
En elmarknad i förändring - Är kundernas flexibilitet till salu eller ens verklig? (Working Paper, published October 13th, 2014)
Is our everyday comfort for sale? Preferences for demand managment. (Working Paper, published June 8th, 2015)

Planning and Managing the Energy Efficiency Gap: the Use of Non-price Interventions to Increase Energy Efficiency

Finansiär: Energimyndigheten
Löptid: 2013-2014

There has for a long time been a debate in the energy and economics literature about the potential to cost-effectively reduce energy demand. There are a vast number of analyses suggesting that the potential is substantial. As an example, the EU has an energy efficiency target to reduce energy demand by 20 percent till 2020. In recent years incomplete information and behavioral anomalies have received more attention in energy economics. If firms and households do not have appropriate information the market solution will most likely not be at the social optimum. Inefficiencies may also arise if households cannot use information effectively due to cognitive limitations or if they under some circumstances act seemingly irrational. In the process of designing the optimal mix of policy instruments it is important to assess the extent of individual market failures and how they effectively can be addressed. In the project we contribute to this work by reviewing the literature and designing the field experiments concerning informational failures and behavioral anomalies in the context of household energy demand.

Energy Use and Energy Efficiency in Swedish Industry

Funder: Energimyndigheten
Duration: 2013-2014

Central to sustainable growth is the EU "Triple 20 by 2020" target, which targets the climate, renewable energy, and energy use. In Sweden the energy target is to reduce the energy to GDP ratio by 20 percent between 2008 and 2020. Reports indicate that the target will probably not be reached without further action. It is important to seek answers on how energy and climate policies affect energy use. The project aims at empirically analyse energy use in Swedish industry and the driving forces behind energy efficiency. Sweden has the ambition to show the way to a sustainable society and needs to invest in economics research to better understand the impacts of energy and climate policies. Internationally speaking the project has access to unique data, and has a direct link to practical politics; the results will definitely serve as a contribution to the discussion of sustainability and energy targets beyond 2020, a discussion already ongoing in the EU and Sweden.

The impact of climate policy on energy use and energy efficiency in Swedish industry

Grant: 4 852 000 sek
Funder: Swedish Energy Agency
Duration: 2013-2015
Project leader and contact: Tommy Lundgren

Central to sustainable growth is the EU “Triple 20 by 2020” target, which targets the climate, renewable energy, and energy use. In Sweden the energy target is to reduce the energy to GDP ratio by 20 percent between 2008 and 2020. Reports indicate that the target probably will not be reached without further action. It is important to seek answers on how energy and climate policies affecting energy use. The project aims at empirically analyzing energy use in Swedish industry and the driving forces behind energy efficiency. Sweden has the ambition of showing the way to a sustainable society and needs to invest in economics research to better understand the impacts of energy and climate policies. Internationally speaking the project has access to unique data, and has a direct link to practical politics; the results will definitely serve as a contribution to the discussion of sustainability and energy targets beyond 2020, a discussion already ongoing in the EU and Sweden.

African Adaptation Gap

Funder: UNEP
Duration: 2013-2014

Climate change will have impacts across the globe, but the African continent is expected to be hit the hardest. Given that Africa has contributed very little to global cumulative Greenhouse Gas emissions, this is exceptionally concerning. Partly to help inform the African delegation to the United Nations Framework Convention Climate Change (UNFCCC) Conference of Parties' (COP) international mitigation negotiations, the United Nations Environmental Program (UNEP) set up a project to investigate the climate change consequences for Africa in terms of adaptation
costs and damages.

This ongoing project has focused on discussing and estimating the resulting adaptation costs and impacts for Africa from the so-called emissions gap. The emissions gap refers to the gap between the UNFCCC COP goals and the current pledges made by the nations of the COP. This project has resulted in several reports and has initiated a new project together with the African Development Bank
to create a more detailed picture of climate change impacts and adaptation costs across different African countries. This project involves several international partners, where CEREs expertise has been in provided long terms projections using an Integrated Assessment Model (AD-RICE).

Visit to *GAEL, Grenoble, France

Grant: 35 050 sek
Funder: the Per and Eivor Wikström’s Foundation
Duration: 2015
Contact: Jurate Jaraite

*Université Grenoble Alpes and Grenoble Applied Economic Laboratory.

Université Grenoble Alpes is France's leading public research centre after Paris, with an established international reputation in several fields. Major facilities, international laboratories and the research and development units of many international companies have located in Grenoble to benefit from its academic and scientific environment. Université Grenoble Alpes collaborates closely with GAEL. GAEL is a joint laboratory of INRA (Institut National de la Recherche Agronomique) and of the University Pierre Mendès-France. Its mission is to conduct research in the areas of agriculture, consumption and environment. GAEL’s main research subject is economics, more specifically industrial economics, experimental economics and environmental economics.

During the visit Jurate learnt about GAEL’s research activities, presented her own research and developed a project together with Oliwia Kurtyka who works as an assistant professor at GAEL. The project focuses on technology transfer to developing countries, namely to India.

A Green Industrial Transition? The Case of the Swedish Pulp- and paper Industry 1960-1990

Funder: Riksbankens Jubileumsfond
Duration: 2011-2014
Contact: Ann-Kristin Bergquist

This project explores the green reconstruction of the Swedish pulp and paper industry, focusing on the interplay between regulatory pressure, technological development and structural change from the 1960s to the 1990s. Increasing demands for pollution control, caused by a new modern
environmental regulation implemented in 1969, coincide with a need for structural changes due to increased international competition, but also a need to phase out oil in the production processes in the wake of the oil crises in the 1970s. In short, our project aims at enhancing the empirical and theoretical understanding of how societies demand for environmental protection interplayed with technological and structural changes within this sector during the late the 20th century and essentially how "green" technology development has been accomplished. Main results from the projects points to the importance of coordinating capacity between firms in "green" R&D.

Development of a relevant and user defined socio-economic model for environmental measures for water power and life

Funder: Kliv
Duration: 2015-2016
Project management: Enveco Miljöekonomi AB
Contact: Bengt Kriström

(only in Swedish)
Att i samverkan med intressenter ta fram en användarvänlig CBA-modell för samhällsekonomisk värdering av vattenkraftrelaterade miljöåtgärder. Samtidigt som CBA-modellen ska vara användarvänlig och så enkel och generellt användbar som möjligt ska den vara teoretiskt relevant utifrån ekonomisk teori och empiriskt relevant utifrån skattningar som har skett med metoder förankrade i ekonomisk teori. Även att i samverkan med intressenter identifiera vilka frågor som ovan beskrivna CBA-verktyg kan besvara och vilka frågor som kan besvaras inom ramen för kompletterande ansatser, särskilt multikriterieanalys, och vilka kriterier som skulle vara relevanta att ta hänsyn till i tillämpningar av multikriterieanalys.

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