Energy Policy Research at UNL:An Incomplete Status Report

Richard PerrinUNL Agricultural Economics

Dec 2010

What inquiries constitute "energy policy research"?

• Discover and tabulate policies and regulations that pertain to particular business or household energy decisions

• Evaluate the benefits and costs associated with particular policies or regulations (firms, households, taxpayers, others)

• Identify and evaluate policy changes that might be appropriate in light of new energy technology discoveries

Here, those that:

Areas of Energy Policy Research at UNL

• General Energy/Environment Policies• Electrical Energy Policies• Wind Energy Policies• Energy Conservation Policies• Biofuel Policies

Energy/Environment Policy: Research at UNL

• Potential impacts of climate legislation on NE :– How would last year's energy bill affect aggregate

NE businesses and agriculture? (Thompson & Lubben 2010 project, BBR & Ag Econ)

– Will green payments allow ethanol plants to retrofit for biomass-based CHP? (Perrin, et al, 2010, Agr Econ)

– Employment opportunities in the green economy. (Thompson & Fuess. 2010. project, BBR)

… Energy/Environment Policy: Research at UNL

• Carbon storage policies for rainforests (Fulginiti and Kibonge, 2010 project, Agr Econ)

• Energy and the Future (Tomkins. 2008-9 project, Public Policy Center)

• Food Security, Sustainable Productivity Growth and Climate Change (Fulginiti, 2010 project, Agr Econ)

Electrical Energy Policy: Research at UNL

• Cap and trade legislation – what impacts for a public power state? (Aiken, 2010 project, Agr Econ)

• Drought year irrigation water mgt – what impacts on electricity demands? (Thompson, 2010 project, BBR)

• CO2 emissions from power plants: calculating the cost of compliance with GHG regulations. (Fulginiti & Alvarez. 2011 NCESR project, Agr Econ)

Wind Energy Policy: Research at UNL

• Small Wind-Energy Systems: What regulations, permits, connections and financial assistance pertain? How do EU policies compare? (Hudgins, Sebora & Yoder, 2008-9 project, EE, Mgt, BSE)

• Wind Energy Reference Repository (Hay, 2010, BSE)

• Legal Aspects of Wind Energy Associations (Aiken, 2009, Agr Econ)

Energy Conservation Policy: Research at UNL

• Nebraska Dollar and Energy Savings Loan Program: an Evaluation (Rosenbaum, Thompson & DeKraai, Econ, BBR, PPC)

• Policy and other barriers to adoption of energy efficient practices (Niemeyer, 2009 project, CEH)

Biofuels: Policy research at UNL

• Do biofuels' GHG benefits warrant public subsidy?– Are we counting carbon correctly?

• Science versus regulations (Liska, 2010 project, BSE)• LCA of ethanol CO2e has been too high (Liska, et al, 2009: Liska

& Perrin, 2009 BSE, Agron, Agr Econ) • LCA of gasoline has been too low (Liska & Perrin, 2010)

– Food vs Fuel• Food security is more serious than most think (Cassman 2008a,

2008b; Cassman, et al, 2010, Agron)• No conflict within the US at present, but … (Perrin, 2008, Agr

Econ)• Can the plains produce enough food for 2050, let alone food

plus fuel? (Fulginiti, 2010 project, Agr Econ)

…Biofuels: Policy research at UNL

• Do biofuels' GHG benefits warrant public subsidy?– Ethanol industry: petroleum price, corn price and ethanol

viability (Sesmero et al 2010; Perrin 2009; Perrin, et al 2009; Schmer et al 2008, Agr Econ, USDA ARS, Agron)

• What effects will the E15 policy have on corn/feed markets? (Conley, 2010 project, Agr Econ)

• Biofuel crop subsidies and the cost of fuel from stover and hay (Perrin, et al, 2010, Agr Econ)

• As for other energy policy research efforts at UNL:– Apologies that I didn't encounter them in this

quick survey

• Beyond current research efforts …

The Urgent Energy Challenge:Transition quickly to sustainable energy • Because– The climate problem is an energy problem– World security problems are substantially energy

problems– The world's poor need much more energy to rise

from poverty• But beware – don't endanger sustainability of

the food system

The challenge can only be met with carrots and sticks (persuasion won't work)

• The main carrot: new, cheaper technologies– UNL's energy technology research is substantial

and growing• Algae and other biofuels• Nanotechnology• Conservation technology• Transportation technology• Carbon capture

– But technology research takes time

The challenge can only be met with carrots and sticks (not persuasion)

• Policies can provide both carrots and sticks– UNL's energy policy research needs a boost

• To complement energy technology research• To discover the impacts of policies important here &

elsewhere– R&D policies– Energy pricing schemes and policies– User subsidies and taxes– Caps and mandates

• UNL has both an opportunity and an obligation to help society meet the energy challenge

UNL Energy Policy Research and Projects: A provisional survey

• Aiken, D. 2009. " Landowner Wind Energy Associations". Cornhusker Economics, Dept of Agr Econ, Jan 21.

• Aiken, D. 2010 (project) Electricity regulation in Nebraska relative to implementing cap and trade legislation in a public power state. (Dept of Agr. Econ.)

• Cassman, K. 2008. Scientific challenges underpinning the food versus fuel debate. pp 171-178, In Reshaping American Agriculture to Meet its Biofuel and Biopolymer Roles. Eaglesham et al. (eds). National Agricultural Biotechnology Council, Ithaca NY.

• Cassman, K.G. 2008. Biofuels or Food? Scientific American Earth3.0 18(4): 28. http://www.sciam.com/article.cfm?id=biofuels-or-food

• Cassman K., P. Grassini and J. van Wart. 2010. Crop yield potential, yield trends, and global food security in a changing climate. pp. 37-51. In Rosenzweig C and Hillel D (eds): Handbook of Climate Change and Agroecosystems. Imperial College Press, London. http://www.worldscibooks.com/environsci/p755.html

• Conley, D. 2010 (project): This project tracks and projects interstate flows of corn and distillers grains. The impacts of two policy scenarios on these flows are currently being evaluated: approval for E-15 ethanol blend and the Federal Reserve quantitative easing. (Dept of Agr. Econ.)

• Fulginiti, L., et al. 2010 (project) Sustainable biomass production prospects for the 41st parallel agroecosystem. (IANR, SNR)

UNL Energy Policy Research and Projects: A provisional survey

• Fulginiti, L. and A. Kibonge. 2010 (project) Policies for increasing carbon sequestration in African forests. (Dept. of Agr. Econ.)

• Fulginiti, L, and D. Alvarez. 2011 (project) The shadow price of CO2 emissions from power plants: calculating the cost of compliance with GHG regulations (Dept of Agr Econ)

• Hay, J. et al. 2010 (project) A website for policy and technical information relative to wind power. http://cropwatch.unl.edu/web/bioenergy/utility-scale-wind

• Hudgins, J. , T. Sebora and R. Yoder. 2008-9 (project) "The Viability of Distributed Wind Generation for Farm and Rural Communities."

• Liska, A. 2010 (project) Environmental regulatory policy on greenhouse gas emissions from biofuels. Includes modeling the life cycle efficiency of biofuels and potential indirect effects from biofuel production. (Biological Systems Engineering http://bse.unl.edu/faculty/liskapubs.shtml)

• Liska, A. and R. Perrin. 2010. Securing Foreign Oil: A Case for Including Military Operations in the Climate Change Impact of Fuels. Environment. in press.

• Liska, A. and R. Perrin Energy and Climate Implications for Agricultural Nutrient Use Efficiency. Chapter 1, IN: Clay D. and Shanahan J. (eds.), GIS Applications in Agriculture–Nutrient Management for Improved Energy Efficiency. CRC Press. in press.

• Liska, A. and R. Perrin. 2009. Indirect Land Use Emissions in the Life Cycle of Biofuels: Regulations vs. Science. Biofuels, Bioproducts, and Biorefining, 3, 318-328.

• Liska, A, et al. 2009. Improvements in Life Cycle Energy Efficiency and Greenhouse Gas Emissions of Corn-Ethanol. Jl of Industrial Ecology 13, 508-513.

• Niemeyer, S. 2009. Barriers to Adoption of Energy Efficient Practices and Technology by Small Businesses. NCESR Project 3-#205, 2008-09.

UNL Energy Policy Research and Projects: A provisional survey

• Perrin, R. 2008. "Ethanol and Food Prices: A Preliminary Assessment". Working Paper 03-08, UNL Digital Commons. http://digitalcommons.unl.edu/ageconfacpub/49/

• Perrin, R., et al. 2010. Opportunities for Nebraska in future Carbon Markets. Final Technical Report, NCESR Project 3-#303.

• Perrin, R. 2009. "Is Corn Ethanol Viable in the Long Run?" Cornhusker Economics, Dept. of Agr. Econ., UNL, Feb 11, 2009. http://www.agecon.unl.edu/Cornhuskereconomics.html

• Perrin,R., F. Fretes and J. Sesmero. 2009. Efficiency in Midwest US corn ethanol plants: A plant survey. Energy Policy 37(4):1309-1316, April. http://digitalcommons.unl.edu/ageconfacpub/86/ .

• Rosenbaum, D., E. Thompson and M. DeKraai. 2010. Benefits of the Nebraska Dollar and Energy Savings Loan Program" The program has made $200m in loans since 1990 to individuals and businesses for energy improvements. (Department of Economics, Bureau of Business Research and Public Policy Center)

• Sesmero, J., R. Perrin and L. Fulginiti. 2010. Environmental Efficiency Among Corn Ethanol Plants. Under review at Biomass and Bioenergy

• Schmer, M., K. Vogel, R. Mitchell, and R. Perrin. "Net Energy of Cellulosic Ethanol from Switchgrass." Proc. Nat. Academy of Sciences 105 (2):464-469, Jan 15, 2008. http://www.pnas.org/content/105/2/464.full

UNL Energy Policy Research and Projects: A provisional survey

• Tomkins, A. 2009. "Energy and the Future." Undergraduate students canvassed the state for information and opinions, made into a documentary aired in April, 2009, with a discussion session with Rep. Jeff Fortenberry. http://ppc.nebraska.edu/project/EnergyandFuture

• Thompson, E. 2010. (Dawson Public Power District project underway) The Potential Economic Consequences of Drought Year Water Management and the Water Balance Approach." (Dept of Economics and Bureau of Business Research)

• Thompson, E. and S. Fuess. 2010. (Dept of Labor project, underway) "Employment Opportunities in the Green Economy in Nebraska, the Great Plains and Rocky Mountain States." (Dept of Economics and Bureau of Business Research)

• Thompson, E. and B. Lubben. 2010. (Platte Institute project, report scheduled 12/31/2010). "The Potential Consequences of Proposed Climate Change Regulation on the Nebraska Economy." Evaluates energy cost increases and carbon credits in industrial and agricultural sectors. (Departments of Economics and Agricultural Economics)