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Article
Publication date: 28 June 2022

Vahid Mohamad Taghvaee, Mehrab Nodehi, Abbas Assari Arani, Mehrnoosh Rishehri, Shahab Edin Nodehi and Jalil Khodaparast Shirazi

This study aims to develop a price policy for fossil fuel consumption, as it is an effective instrument to manage the demand-side of energy economics.

Abstract

Purpose

This study aims to develop a price policy for fossil fuel consumption, as it is an effective instrument to manage the demand-side of energy economics.

Design/methodology/approach

This research estimates the demand elasticities of diesel, gasoline, fuel oil and kerosene by using static, dynamic and error-correction models in log-linear form.

Findings

The findings show that fossil fuel demand responds to price changes less than income changes, as fuel price is inelastic, but income is elastic. In that respect, the impact of price change decreases constantly with increasing energy price, followed by subsidy reform. Subsidy removal and price policy reformation is the UN recommendation for subsidizing countries, including Iran, to reduce fossil fuel consumption, whose intensity depends on the price elasticities.

Practical implications

As a result of this price policy, diesel, gasoline and liquefied petroleum gas prices should increase at least 1.8%–7.3%, 4.4%–6.4% and 7%–8.6%, respectively, and gradually within 2018–2030. The price policy improves all the pillars of sustainable development, including economy, environment and social (health). Overall, such a target can potentially save 3%–29% of diesel, 34%–56% of gasoline and 15%–20% of liquefied petroleum gas, as well as reduce 15%–40% of CO2 emissions annually, and can save potentially more than 510,000 lives annually. Thus, the energy price policy can fundamentally improve sustainability.

Originality/value

The estimated elasticities outline the required prices to decrease the fossil fuels, according to the UN mitigation targets, as price policy recommendation.

Graphical abstract

Details

International Journal of Energy Sector Management, vol. 17 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 26 September 2008

Gerfried Cebrat, Avraam Karagiannidis and Agis Papadopoulos

The purpose of this paper is to demonstrate how opting for multiple contributors to the lowC economy and introducing new intelligent solutions allows a smooth transition to…

1036

Abstract

Purpose

The purpose of this paper is to demonstrate how opting for multiple contributors to the lowC economy and introducing new intelligent solutions allows a smooth transition to renewable fuels. Undoubtedly, biofuels are no longer everybody's darling. This is partly owed to the need to produce bio fuels at the lowest possible price and absent sustainability regulations or their enforcement like the European parliament initiated by banning bio fuels with not sufficient evidence of saving CO2. But on the other hand, the end of cheap oil is clearly visible and it is clear that second generation lowC fuels may by no means be able to replace all of the worlds growing fuel consumption in a few years.

Design/methodology/approach

The paper presents a tri‐fold approach which has originated of two EU‐projects (SUGRE and RECODRIVE) based on reduction of the propulsion demand, intelligent powertrain configuration and the use of residues and waste as feedstock. The RECODRIVE approach tested in the European project with the same name introduces a quality management in fleet management which comprises procurement, driving and maintenance. This approach comprising also logistics should be able to reduce the propulsion demand at least by 10 per cent targeting 30 per cent and more.

Findings

Hybrid power trains are regenerating the braking energy and are reducing the propulsion demand by 15‐25 per cent in stop'n go traffic in cities. Parallel or power split hybrids may operate with phlegmatized and thus more efficient combustion engines, but serial hybrid electric power trains drive this characteristics, the extreme which is helpful introducing alternative fuels. They decouple the production of energy from the throttle command and allow for a more steady operation of the internal combustion engine.

Practical implications

By employing a serial hybrid power train simpler low‐RPM engines may be used which are modified to run on plant oils and other alternative fuels which are difficult to use in modern highly performing diesel engines. By reducing the propulsion demand, a higher share of alternative fuels based on natural feedstock may be achieved. This feedstock may be also amended by better utilising waste. The paper describes two examples. In Graz, used frying oil is collected to feed a transesterification plant and in Linköping waste from the meat industry is collected to produce biogas.

Originality/value

The approach enables the transport sector to increase the independence on oil at short‐term without the risk of putting a lot of venture capital in the wrong fuel or engine technology. The serial hybrid electric concept remains the basis for future solutions working on different end energy like hydrogen.

Details

Management of Environmental Quality: An International Journal, vol. 19 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 1 April 1979

Catherine M. Price

Presents a detailed report on pricing in the gas, electricity and telephone industries in the UK. Reports that all three utilities have to balance their commercial operations…

Abstract

Presents a detailed report on pricing in the gas, electricity and telephone industries in the UK. Reports that all three utilities have to balance their commercial operations, sensible use of their resource and political obligations imposed by the Government.

Details

European Journal of Marketing, vol. 13 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Abstract

Purpose

The aim of this study was to evaluate the performance of fuel flow processes in a network of eight gas stations, located in the mesoregion of Alto Paranaíba and Triângulo Mineiro.

Design/methodology/approach

Two multi-criteria decision support methods were applied, respectively, of a statistical and mathematical nature, namely, Principal Component Analysis (PCA) and Data Envelopment Analysis (DEA). The research method used was quantitative, with a brief complement of qualitative research, and descriptive in purpose, supported by the inductive method. The data collection stage took place with the support of interviews, with the application of a structured questionnaire, and non-probabilistic sampling, for convenience.

Findings

It was possible to verify that the gas station that stood out the most was station 2 (GS2), which achieved maximum efficiency, a fact that can be justified by the analysis resulting from the application of PCA, as for the product purchase variable (PP), the GS2 is the one that buys the most fuel, and is also the one with the largest storage capacity (C), and the highest volume of product sales (PS), which suggests signs of balance between supply and demand for this station, justifying its prominence.

Research limitations/implications

The limitations of the study were related to the DEA technique, which requires a number of variables/indicators three times smaller than the number of DMUs considered, and the difficulty in obtaining financial data on the DMUs analyzed. Considering the security and anonymity of the gas station network, it was not possible to use this data.

Practical implications

The performance assessment of fuel flow processes carried out in this study promotes the efficient use of available resources as well as identifying efficient DMUs that represent benchmarks for improving management processes and performance of inefficient DMUs.

Social implications

From a social perspective, this study promotes the improvement of the quality of flow processes and effective management of the fuel supply chain, ensuring the safe storage and transportation of fuels to customer supply. Performance management in this sector moves other sectors of the economy, since an efficient unit represents a balance between supply and demand, and consequently, boosts the regional economy, promoting economic growth of the population. Hiring qualified labor for this purpose also represents one of the implications of the study. From an environmental perspective, optimizing flow processes generates a reduction in greenhouse gas emissions and encourages the formulation of public policies aimed at consolidating sustainable practices.

Originality/value

Performance management applied to the context of the fuel supply chain is a relevant topic that has been little explored in scientific research, with a low level of information detail. This study using the inductive method allows the generalization and replication of this management pattern in other organizations in the sector in order to increase the efficiency of the fuel distribution system, with the perspective of maximizing outputs and reducing input consumption. In this aspect, the study introduces possibilities for advancement in social and environmental perspectives based on the effective management of fuel logistics.

Details

Journal of Advances in Management Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-7981

Keywords

Open Access
Article
Publication date: 21 August 2019

Xinning Li, Kun Fan, Lu Wang and Lang Zhou

The purpose of this paper is to design a contract to coordinate the biomass molding fuel supply chain consisting of a supplier with uncertain supply and a producer with cyclical…

Abstract

Purpose

The purpose of this paper is to design a contract to coordinate the biomass molding fuel supply chain consisting of a supplier with uncertain supply and a producer with cyclical demand as well as improve the profit of this supply chain.

Design/methodology/approach

In this paper, the supply chain model was build and all the variables and assumptions are set. Stackelberg game model was used to analyze and solve the problem. Furthermore, the authors give numerical examples and result analysis on the basis of data coming from field study and online information about a real biomass fuel supply chain.

Findings

The wholesale price with shortage penalty contract the authors proposed can coordinate the supply chain. And as the dominator of the supply chain, the producer can realize the redistribution of profits within the supply chain by determine the contract parameters.

Research limitations/implications

This one-to-one supply chain is a basic of complex supply chain system. Multi-to-one, one-to-multi and multi-to-multi supply chain can be studied in the future.

Originality/value

The results obtained in this paper can be used as a reference for enterprises in biomass energy supply chain to make contracts and realize the long-term co-operations among supply chain members.

Details

Forestry Economics Review, vol. 1 no. 1
Type: Research Article
ISSN: 2631-3030

Keywords

Article
Publication date: 30 August 2021

Lucas Rodrigues, Luciano Rodrigues and Mirian Rumenos Piedade Bacchi

Fuel demand forecast is a fundamental tool to guide private planning actions and public policies aim to guarantee energy supply. This paper aims to evaluate different forecasting…

Abstract

Purpose

Fuel demand forecast is a fundamental tool to guide private planning actions and public policies aim to guarantee energy supply. This paper aims to evaluate different forecasting methods to project the consumption of light fuels in Brazil (fuel used by vehicles with internal combustion engine).

Design/methodology/approach

Eight different methods were implemented, besides of ensemble learning technics that combine the different models. The evaluation was carried out based on the forecast error for a forecast horizon of 3, 6 and 12 months.

Findings

The statistical tests performed indicated the superiority of the evaluated models compared to a naive forecasting method. As the forecast horizon increase, the heterogeneity between the accuracy of the models becomes evident and the classification by performance becomes easier. Furthermore, for 12 months forecast, it was found methods that outperform, with statistical significance, the SARIMA method, that is widely used. Even with an unprecedented event, such as the COVID-19 crisis, the results proved to be robust.

Practical implications

Some regulation instruments in Brazilian fuel market requires the forecast of light fuel consumption to better deal with supply and environment issues. In that context, the level of accuracy reached allows the use of these models as tools to assist public and private agents that operate in this market.

Originality/value

The study seeks to fill a gap in the literature on the Brazilian light fuel market. In addition, the methodological strategy adopted assesses projection models from different areas of knowledge using a robust evaluation procedure.

Article
Publication date: 18 January 2022

Santanu Gupta, Sanjay Kumar Kar and Sidhartha Harichandan

This paper aims to review the role of government initiatives for developing clean fuels in India, decarbonize the transport sector and maximize the use of renewable sources of…

Abstract

Purpose

This paper aims to review the role of government initiatives for developing clean fuels in India, decarbonize the transport sector and maximize the use of renewable sources of energy. India’s socio-economic prosperity is dependent on modern energy. The authors examine the role of biofuel in India’s emerging fuel mix.

Design/methodology/approach

A 20-year timeframe between 2000 and 2021 was set to learn about the subject and find the existing gaps. Of the 40 research papers, the authors found using keywords and delimiting criteria in the database, the authors have shortlisted 21 papers, which provided the theoretical framework for the study. Additionally, the authors used the government database to develop future projections using compound annual growth rate and trend analysis.

Findings

The study findings suggest that India should strictly implement the Biofuel Policy to promote indigenous production of biofuel to enhance affordability and accessibility. With blending options available with biofuels and biogas, the country can replace the right proportion of fossil fuel use by 2050. It will not only decrease India’s import dependence but also will create new job opportunities, specifically in tribal and remote locations and promote green energy mix. With emerging options like electric vehicle and hydrogen, the transport sector could be decarbonized to a greater extent.

Social implications

Indigenous cleaner fuel adoption and transport sector will generate additional employment and cut down fossil fuel import. Financial savings through reduced fossil fuel import will be directed toward social development.

Originality/value

The paper carries out critical analysis for the active use of modern green fuels in the present and coming days. Such unique analysis must help India to balance its energy basket.

Details

International Journal of Energy Sector Management, vol. 16 no. 5
Type: Research Article
ISSN: 1750-6220

Keywords

Content available
Article
Publication date: 2 April 2019

Dimitra Topali and Harilaos N. Psaraftis

The International Maritime Organization has decided that as of 1.1.2020, SOx content in a ship’s emissions should be no more than 0.5 per cent. The purpose of this paper is to…

2294

Abstract

Purpose

The International Maritime Organization has decided that as of 1.1.2020, SOx content in a ship’s emissions should be no more than 0.5 per cent. The purpose of this paper is to address the various challenges expected to arise from the enforcement of the global cap sulfur regulation.

Design/methodology/approach

The authors outline various enforcement options and present a model that calculates the profits from noncompliance in the high seas, so as to help determine the level of fines that could be imposed in case of violation.

Findings

The main finding is that a harmonized system of fines, which are more than potential savings from cheating, would be a strong deterrent for compliance.

Originality/value

To the authors’ knowledge, no paper in the maritime literature on sulfur regulations has focused on enforcement as of yet.

Details

Maritime Business Review, vol. 4 no. 2
Type: Research Article
ISSN: 2397-3757

Keywords

Article
Publication date: 1 February 1980

SANDRA CLINGAN

The U.S. Congress has been struggling to create a comprehensive energy program. A key component of the present attempt, recommended by President Carter, is a synthetic fuel

Abstract

The U.S. Congress has been struggling to create a comprehensive energy program. A key component of the present attempt, recommended by President Carter, is a synthetic fuel program. In July of 1979, the President asked for an $88 billion “crash program” to encourage development of synthetic fuels. To date, a three month struggle to reach a consensus between House and Senate conferees has brought only limited results. Compromise is emerging in the form of a proposal for a “synthetic fuels corporation.” The body would have the authority to disperse $20 billion in the form of federal loan guarantees and purchase agreements with more money to become available later.

Details

Studies in Economics and Finance, vol. 4 no. 2
Type: Research Article
ISSN: 1086-7376

Article
Publication date: 1 January 1984

Richard Westoby

The pattern of fuel demand in two sectors of the UK economy is modelled by means of translog cost functions. The models specified in this study are designed to capture the effects…

Abstract

The pattern of fuel demand in two sectors of the UK economy is modelled by means of translog cost functions. The models specified in this study are designed to capture the effects of changes in relative fuel prices and assess the impact of technical change on the demand for fuels. Estimates of biases of technical change and price elasticities for the demand for fuels are calculated from an econometric study with the models.

Details

Journal of Economic Studies, vol. 11 no. 1
Type: Research Article
ISSN: 0144-3585

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