European Energy and Climate Security: Public Policies, Energy Sources, and Eastern Partners (Lecture Notes in Energy, 31)

As energy is becoming one of the crucial concerns in the EU, this volume provides an in-depth analysis and interdisciplinary perspective on European energy security. Given the multidimensional nature of energy security in terms of physical availability, affordability and geopolitical security, it brings together authors from different backgrounds pursuing a distinctly multidisciplinary approach. The authors' different perspectives correspond to the three sections of the book: international relations, which focuses on Eastern EU partners; energy economics, which highlights the current unconventional hydrocarbons revolution and its impact on EU energy and climate strategies; and public policy, which analyzes EU policies in the context. Contents 6 Contributors 8 1 Enhancing European Energy and Climate Security: Eastern Strategic Partners, Unconventional Sources and Public Policies 10 Abstract 10 1 The Issue: Energy and Climate Security 10 2 Structure of the Book 13 Acknowledgments 18 References 18 Part IEU and Eastern Energy Partners: SomeKey Issues 19 2 The EEC Commission and European Energy Policy: A Historical Appraisal 20 Abstract 20 1 Oil Shocks in the 1970s 23 2 The Role of Oil Stockpiles 28 3 France as a Case Study 31 4 The Euro-Arab Dialogue 34 5 Reviving European Energy Production 37 6 Further Developments: The Single European Market and the Internal Energy Market 38 7 Conclusion 41 3 A Link of Steel. The Western Europe-Russia Gas Pipeline Network in the Post-Soviet Era 43 Abstract 43 1 Russian Gas for Europe 43 2 Gas Production and Exports During the Soviet Period 44 3 Post-Soviet Period: New Projects Reinforcing the Link 49 3.1 Yamal-Europe 51 3.2 Blue Stream 53 3.3 Nord Stream 53 3.4 South Stream 54 4 Gazprom Strategy: Consolidation and Diversification 55 5 Russian Gas in European Energy Security: Its Role and the Challenges 59 5.1 The Constant Importance of Russian Supplies 60 5.2 The Evolution of the European Energy Mix and the Role of Natural Gas 62 5.3 Risks and Challenges: The Enduring Relevance of Russian Supplies 64 6 A Link Bound to Stay 67 References 68 4 Turkey as an Energy Hub for Europe 70 Abstract 70 1 Introduction 70 2 Turkey's Energy Outlook 71 2.1 Turkey's Energy Outlook: The Demand Side 73 2.2 Turkey's Energy Outlook: The Supply Side 74 3 The Diversification of Oil Pipelines: Turkey as a Reliable Transit Country 75 4 Diversification of Gas Pipelines: Turkey as a Reliable Transit Country 76 4.1 The Southern Gas Corridor, TANAP, and TAP: What Is Next? 76 5 How Has the Future of the Southern Gas Corridor Changed After the Annexation of Crimea? 79 6 Conclusion 81 References 84 5 Russia's Oil Dilemmas. Production: To Go North-East or to Go Deep? Exports: Is a Compromise Between Westward and Eastward Directions Possible? 86 Abstract 86 1 Russia's Liquid Hydrocarbon Production Economy: Getting Further Away and More Expensive 87 2 The Role of Hydrocarbons in Russia's Economy and the Importance of Oil Exports 95 3 New Sources---Where Could Oil for Export Come from? 102 3.1 Leading Company Strategies 107 4 Is It Possible to Sustain Exports Westward and to Develop Eastward? 110 5 Final Remarks---Oil Production Trends and Prospects for Exports to the EU 112 References 113 Part IIUnconventional Hydrocarbons: NewPatterns and Impacts on Europe 115 6 Game Changer: Industrial Impacts of the Shale Gas Revolution in the U.S. 116 Abstract 116 1 Introduction 116 2 The Energy Modeling Forum (EMF) 31 Study 118 3 LIFT and MARKAL 119 3.1 Overview of LIFT 119 3.2 The MARKAL Model 121 3.3 Model Coupling 121 4 Overview of Scenarios 122 5 The Reference Case 123 6 The High Resource Case 125 7 The Restricted Access Case 126 8 Implications of Lower Natural Gas Prices 126 9 High International Demand 128 10 Scenario Discussion 129 Appendix 132 References 134 7 Shale Fuels: The Solution to the Energy Conundrum? 135 Abstract 135 1 The Energy Revolution that Started Amid the Shales2026 135 2 2026and Blossomed in the United States 136 2.1 Future Developments in the United States 138 3 How Prices Reacted to the Shale Revolution 140 4 The Shale Fuel Potential 141 5 The Environmental Effects of Shale Fuels 147 6 Shale Fuel Developments Outside the USA 149 6.1 Shale Fuel Prospects in Europe 150 7 Conclusions 153 References 154 8 Does the Trade-off Between Energy Security and Climate Change Protection Matter? The Canadian Tar Sands Case 156 Abstract 156 1 Introduction 156 2 Growth Versus Environmental Protection: The Trade-off and Possible Decoupling 160 2.1 Energy Security Versus Environmental Protection 163 3 Policy Intervention: A Profile 164 4 Future Scarcity and Future Prices 165 5 The Role of Technological Progress 168 6 A Case Study: The Canadian Tar Sands 171 7 European Energy Security in the Context of European Energy Policy 175 8 Concluding Remarks 180 References 182 Part IIIPublic Policies as a Tool to StrengthenEuropean Energy and Climate Security 184 9 Rationales for a Revisited European Energy Technology Policy 185 Abstract 185 1 Background 185 2 Rationales for an Energy Technology Policy 187 2.1 The Environmental Externality 187 2.2 Innovation Externalities 188 2.3 Capital Market Imperfections 189 2.4 Increasing Global Competition 190 3 Rationales for a European Energy Technology Policy 190 4 Rationales for a New European Energy Technology Policy 192 4.1 Limitations of Existing Policies Addressing the Environmental Externality 192 4.2 Limitations of Existing Policies Addressing Innovation Externalities 195 4.3 Limitations of Existing Policies Addressing the EU Financial Crisis and Market Liquidity 198 4.4 Limitations of Existing Policies Addressing Increased Global Competition 199 5 Conclusion 200 Acknowledgements 200 References 200 10 German Energiewende - quo vadis? 203 Abstract 203 1 Introduction 203 2 Germany's Way to the Energiewende---Beyond the Nuclear Discussion 204 3 Model PANTA RHEI 209 4 Scenarios and Framework Conditions 211 4.1 Framework Data 212 4.2 The Energiewende Scenario 214 4.3 The Counterfactual Scenario 215 4.4 Scenario Comparison 215 5 Results---The Economic Effects of the Energiewende in Germany 221 5.1 Direct Investment Effects 222 5.2 Macroeconomic Impacts 223 5.3 Sensitivity Analyses to Decompose Major Drivers 226 6 Conclusions, Discussion and Outlook 227 References 229 11 Taxing Energy Use: Patterns and Incoherencies in Energy Taxation in Europe and the OECD 233 Abstract 233 1 Introduction 233 2 Policy Rationale for Energy Taxation 235 3 Development of Cross-Country Analysis and Graphical Profiles 236 4 Energy Use and Taxation in the OECD and OECD-EU Member Countries 238 4.1 Patterns of Energy Use in Europe and the OECD 238 4.2 Taxation of Energy Use in Europe and the OECD 240 5 Patterns and Taxation of Energy by Type of Use 246 5.1 Taxation of Energy Used in Transport 246 5.2 Taxation of Heating and Process Use of Energy 251 5.3 Taxation of Energy Used to Produce Electricity 256 6 Economy-Wide Tax Rates on Energy in the EU-21 and OECD Countries 258 7 Conclusions 261 References 263 12 Public Policies and the Energy Mix in Italy: Where Do We Stand? 265 Abstract 265 1 Introduction 265 2 Energy Security and Energy Efficiency in Italy 266 2.1 Measuring Energy Efficiency and Italy's Performance 270 2.2 Energy Prices 275 3 Overview of Market-Based Instruments for Energy in Italy 279 3.1 Taxes, Subsidies and Tax Expenditure in Italy 280 3.1.1 The Rationale of Energy Taxation 280 Current Energy Taxes in Italy 281 3.1.2 Subsidies 284 On-budget Subsidies 285 Off-budget (Tax Expenditure) 287 3.2 Emission Trading Scheme 289 3.3 Feed-in Tariffs 291 4 Which Direction for Energy and Climate Security Policy? 293 References 296 Front Matter....Pages i-viii Enhancing European Energy and Climate Security: Eastern Strategic Partners, Unconventional Sources and Public Policies....Pages 1-9 Front Matter....Pages 11-11 The EEC Commission and European Energy Policy: A Historical Appraisal....Pages 13-35 A Link of Steel. The Western Europe-Russia Gas Pipeline Network in the Post-Soviet Era....Pages 37-63 Turkey as an Energy Hub for Europe....Pages 65-80 Russia’s Oil Dilemmas. Production: To Go North-East or to Go Deep? Exports: Is a Compromise Between Westward and Eastward Directions Possible?....Pages 81-109 Front Matter....Pages 111-111 Game Changer: Industrial Impacts of the Shale Gas Revolution in the U.S.....Pages 113-131 Shale Fuels: The Solution to the Energy Conundrum?....Pages 133-153 Does the Trade-off Between Energy Security and Climate Change Protection Matter? The Canadian Tar Sands Case....Pages 155-182 Front Matter....Pages 183-183 Rationales for a Revisited European Energy Technology Policy....Pages 185-202 German Energiewende - quo vadis?....Pages 203-232 Taxing Energy Use: Patterns and Incoherencies in Energy Taxation in Europe and the OECD....Pages 233-264 Public Policies and the Energy Mix in Italy: Where Do We Stand?....Pages 265-297