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xv | |
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xvii | |
Preface to the second edition |
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xviii | |
Acknowledgments |
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xx | |
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xxii | |
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PART I Fundamentals of energy economics |
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1 | (94) |
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3 | (14) |
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3 | (6) |
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Oil market performance from the 1970s to the present |
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4 | (2) |
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The content of energy economics |
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6 | (3) |
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9 | (1) |
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Efficiency and inefficiency |
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9 | (1) |
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Market failure and government failure |
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10 | (1) |
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10 | (5) |
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15 | (2) |
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2 Energy, markets, and society |
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17 | (18) |
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17 | (2) |
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What is different about energy? |
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19 | (2) |
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21 | (5) |
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22 | (1) |
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22 | (1) |
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23 | (1) |
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23 | (1) |
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23 | (1) |
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Other potential market failures |
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24 | (2) |
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26 | (2) |
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Pareto and Hicks-Kaldor efficiency |
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26 | (1) |
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26 | (1) |
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27 | (1) |
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28 | (2) |
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Sustainability may conflict with efficiency and social welfare |
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29 | (1) |
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Equity for future generations |
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29 | (1) |
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30 | (3) |
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33 | (2) |
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3 Static efficiency: applying supply and demand to energy markets |
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35 | (30) |
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35 | (1) |
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36 | (10) |
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36 | (4) |
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40 | (1) |
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41 | (2) |
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43 | (1) |
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44 | (1) |
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Combining supply and demand |
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45 | (1) |
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45 | (1) |
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46 | (5) |
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Assumptions of the perfectly competitive model |
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46 | (1) |
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47 | (1) |
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48 | (1) |
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Efficiency and social welfare |
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49 | (2) |
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51 | (5) |
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51 | (2) |
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53 | (1) |
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54 | (2) |
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Coming full circle: social welfare |
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56 | (1) |
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57 | (1) |
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58 | (1) |
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Appendix 3A Supply and demand basics |
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59 | (3) |
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Appendix 3B The calculus behind supply and demand |
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62 | (3) |
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4 Dynamic efficiency: energy decisions over time |
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65 | (30) |
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65 | (1) |
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66 | (3) |
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When to use dynamic efficiency |
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67 | (1) |
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Renewable vs. nonrenewable resources |
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67 | (2) |
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Competition in a dynamic framework |
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69 | (11) |
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69 | (7) |
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76 | (1) |
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76 | (2) |
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78 | (1) |
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79 | (1) |
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80 | (2) |
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Other factors influencing dynamic efficiency |
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82 | (5) |
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82 | (1) |
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83 | (1) |
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84 | (1) |
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Change in backstop technology |
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84 | (1) |
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85 | (1) |
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Social vs. private discount rate |
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86 | (1) |
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Implications for sustainability |
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87 | (1) |
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Managing energy price volatility |
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88 | (1) |
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Is the oil market dynamically efficient? |
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89 | (1) |
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90 | (2) |
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92 | (3) |
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PART II Conventional energy sources |
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95 | (96) |
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5 Oil: has it reached its peak? |
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97 | (25) |
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97 | (1) |
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98 | (6) |
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Rockefeller and Standard Oil |
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100 | (2) |
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102 | (1) |
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Organization of Petroleum Exporting Countries (OPEC) |
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102 | (2) |
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104 | (3) |
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Oil as a transportation fuel |
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104 | (1) |
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104 | (3) |
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107 | (4) |
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The supply chain for oil and gasoline |
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109 | (2) |
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Market models of OPEC behavior |
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111 | (4) |
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112 | (1) |
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Saudi Arabia as swing producer |
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113 | (1) |
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Dominant firm price leadership model |
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114 | (1) |
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115 | (1) |
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Oil financial instruments |
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116 | (3) |
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116 | (1) |
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116 | (2) |
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118 | (1) |
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119 | (1) |
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120 | (2) |
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6 Natural gas: a bridge to the future? |
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122 | (24) |
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122 | (2) |
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Brief economic history of natural gas use |
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124 | (4) |
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125 | (2) |
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Regulation and deregulation |
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127 | (1) |
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128 | (3) |
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128 | (2) |
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130 | (1) |
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130 | (1) |
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131 | (4) |
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132 | (1) |
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133 | (1) |
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134 | (1) |
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134 | (1) |
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GHG emissions and other environmental impacts |
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135 | (1) |
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136 | (5) |
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Determining price under regulation |
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136 | (2) |
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Market determination of price |
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138 | (3) |
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141 | (3) |
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144 | (2) |
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146 | (21) |
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146 | (2) |
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A brief economic history of coal |
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148 | (1) |
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Production and the supply chain |
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149 | (4) |
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150 | (1) |
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Mining operations--surface mining |
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150 | (1) |
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Mining operations--underground mining |
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150 | (1) |
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151 | (1) |
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151 | (1) |
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152 | (1) |
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153 | (4) |
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153 | (1) |
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153 | (2) |
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155 | (1) |
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155 | (1) |
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156 | (1) |
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Cost to generate electricity |
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156 | (1) |
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157 | (2) |
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157 | (1) |
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158 | (1) |
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Emissions and other environmental impacts |
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159 | (4) |
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Greenhouse gases and other emissions |
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160 | (1) |
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161 | (1) |
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162 | (1) |
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163 | (1) |
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163 | (2) |
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165 | (2) |
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8 Nuclear energy: too expensive to matter? |
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167 | (24) |
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167 | (2) |
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A brief economic history of nuclear power |
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169 | (4) |
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171 | (2) |
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173 | (3) |
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173 | (1) |
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174 | (2) |
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Operating and Maintenance (O&M) costs |
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176 | (1) |
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176 | (5) |
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177 | (1) |
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177 | (1) |
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Additional costs due to Fukushima |
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178 | (1) |
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179 | (2) |
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181 | (4) |
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181 | (2) |
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183 | (1) |
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184 | (1) |
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185 | (2) |
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187 | (4) |
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PART III Alternative energy sources |
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191 | (72) |
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9 Renewable energy: cheap, clean, but complicated |
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193 | (22) |
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193 | (1) |
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194 | (5) |
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Advantages of renewable fuels |
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196 | (2) |
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198 | (1) |
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199 | (4) |
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Renewable portfolio standards |
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200 | (2) |
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202 | (1) |
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203 | (4) |
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Intermittent and nondispatchable characteristics |
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204 | (2) |
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Environmental shortcomings |
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206 | (1) |
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Other currently available renewables |
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207 | (2) |
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207 | (2) |
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209 | (1) |
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209 | (3) |
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212 | (3) |
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10 Next-generation alternatives: the road to net-zero? |
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215 | (24) |
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215 | (1) |
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What is a next-generation energy alternative? |
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216 | (1) |
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Incentives to develop next-generation energy alternatives |
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216 | (1) |
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Next-generation renewable energy |
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217 | (7) |
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217 | (1) |
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217 | (1) |
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218 | (1) |
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219 | (1) |
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219 | (1) |
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220 | (2) |
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222 | (1) |
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Alternatives to food-based ethanol |
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222 | (1) |
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Next-generation biodiesel |
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223 | (1) |
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224 | (6) |
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Carbon capture, use, and storage |
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224 | (2) |
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226 | (1) |
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226 | (1) |
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Alternative designs and fuels |
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227 | (1) |
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228 | (2) |
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Other next-generation alternatives |
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230 | (4) |
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230 | (1) |
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230 | (1) |
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Wave power, tidal power, and ocean thermal energy conversion |
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230 | (1) |
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231 | (1) |
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232 | (1) |
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233 | (1) |
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The role of markets and governments in next-generation technology |
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234 | (1) |
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234 | (1) |
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235 | (4) |
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11 Energy efficiency: an offer we can't refuse? |
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239 | (24) |
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|
239 | (1) |
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Energy efficiency and economic efficiency |
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|
240 | (4) |
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Energy efficiency vs. economic efficiency |
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240 | (3) |
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243 | (1) |
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Energy efficiency in production |
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244 | (5) |
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Energy input--product output relationship |
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244 | (1) |
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245 | (1) |
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|
246 | (2) |
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Energy input--energy output relationship |
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248 | (1) |
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Energy efficiency in consumption |
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249 | (1) |
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250 | (5) |
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Reasons for an energy efficiency gap |
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252 | (1) |
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252 | (1) |
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252 | (1) |
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253 | (1) |
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Reasons why there may not be a gap |
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254 | (1) |
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255 | (2) |
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Taxonomy of rebound effects |
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256 | (1) |
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Magnitude of rebound effects |
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256 | (1) |
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Government intervention to encourage energy efficiency |
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257 | (2) |
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Standards vs. incentive-based approaches |
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257 | (1) |
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Voluntary vs. mandatory standards |
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257 | (1) |
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258 | (1) |
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|
258 | (1) |
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259 | (1) |
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|
259 | (1) |
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|
260 | (3) |
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|
263 | (84) |
|
12 Traditional electricity regulation: is monopoly still natural? |
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265 | (29) |
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|
265 | (1) |
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A brief economic history of electricity and its regulation |
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266 | (3) |
|
The origins of electricity |
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|
266 | (1) |
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Predecessors to electric lighting |
|
|
267 | (1) |
|
The evolution of U.S. electric utility regulation |
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|
268 | (1) |
|
Overview of the electric industry |
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269 | (5) |
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270 | (1) |
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|
270 | (1) |
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|
271 | (1) |
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|
271 | (1) |
|
Global trends in electricity use |
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272 | (1) |
|
The electric system supply chain |
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272 | (1) |
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273 | (1) |
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|
274 | (1) |
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|
274 | (1) |
|
Regulating the electricity industry |
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274 | (8) |
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274 | (1) |
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|
274 | (2) |
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Rate-of-return regulation |
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276 | (6) |
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Alternative forms of regulation |
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282 | (8) |
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282 | (1) |
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282 | (4) |
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286 | (1) |
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286 | (3) |
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289 | (1) |
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289 | (1) |
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289 | (1) |
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289 | (1) |
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|
290 | (2) |
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|
292 | (2) |
|
13 Electricity restructuring and deregulation: a better way? |
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294 | (28) |
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294 | (1) |
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A brief economic history of electricity deregulation and restructuring |
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295 | (1) |
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|
296 | (6) |
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Challenges for electricity restructuring |
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297 | (3) |
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|
300 | (2) |
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Two paths to restructuring |
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302 | (10) |
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|
302 | (7) |
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|
309 | (3) |
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Other examples of electricity deregulation and restructuring |
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312 | (5) |
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|
312 | (3) |
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315 | (1) |
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316 | (1) |
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|
317 | (2) |
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|
319 | (3) |
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14 Electric vehicles: charging ahead? |
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322 | (25) |
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|
322 | (2) |
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324 | (5) |
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|
324 | (1) |
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|
325 | (1) |
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Range anxiety and range serenity |
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|
325 | (2) |
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|
327 | (1) |
|
Technologies for fuel economy and emissions compliance |
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|
327 | (2) |
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Markets and market failures |
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|
329 | (3) |
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|
329 | (1) |
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|
330 | (1) |
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|
331 | (1) |
|
Perspectives of market participants |
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|
332 | (8) |
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|
332 | (1) |
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|
332 | (2) |
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Corporate and fleet customers |
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|
334 | (1) |
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|
335 | (1) |
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|
335 | (1) |
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|
335 | (1) |
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Impact on distribution system |
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|
336 | (1) |
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Regional infrastructure considerations |
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|
336 | (1) |
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|
337 | (1) |
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|
337 | (2) |
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|
339 | (1) |
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Emissions and regulations |
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|
339 | (1) |
|
Development and production cost |
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|
339 | (1) |
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|
339 | (1) |
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|
340 | (2) |
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Subsidies and their redistributive effects |
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|
340 | (2) |
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|
342 | (1) |
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|
343 | (1) |
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|
344 | (3) |
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|
347 | (82) |
|
15 Energy and the environment: paying the full social cost of our energy choices |
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349 | (19) |
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|
349 | (1) |
|
Growth of the environmental movement |
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|
350 | (8) |
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358 | (7) |
|
Environmental regulation of energy production |
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|
358 | (1) |
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|
358 | (2) |
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|
360 | (1) |
|
Environmental regulation of electricity production |
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|
360 | (1) |
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|
360 | (2) |
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362 | (1) |
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|
362 | (1) |
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|
363 | (2) |
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|
365 | (1) |
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|
366 | (2) |
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16 Energy and sustainability: what do we owe the future? |
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|
368 | (21) |
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|
368 | (1) |
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Meaning of sustainability |
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|
369 | (4) |
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Limits to growth revisited |
|
|
370 | (2) |
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|
372 | (1) |
|
Dynamic energy market conditions |
|
|
373 | (4) |
|
Impacts of growing global demand for energy |
|
|
373 | (2) |
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|
375 | (2) |
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|
377 | (5) |
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|
377 | (1) |
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|
378 | (1) |
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|
379 | (1) |
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|
380 | (1) |
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|
380 | (1) |
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|
381 | (1) |
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|
381 | (1) |
|
Carbon capture, utilization, and storage |
|
|
382 | (1) |
|
Energy efficiency and conservation |
|
|
382 | (3) |
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|
383 | (1) |
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|
384 | (1) |
|
Challenges of applying economics to sustainability |
|
|
385 | (1) |
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|
385 | (2) |
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|
387 | (2) |
|
17 Energy security: old and new dilemmas |
|
|
389 | (22) |
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|
389 | (1) |
|
Definition of energy security |
|
|
390 | (1) |
|
History of oil security since 1973 |
|
|
391 | (3) |
|
OPEC and the 1973 oil embargo |
|
|
391 | (3) |
|
Prices and price volatility |
|
|
394 | (1) |
|
Current issues in primary energy source security |
|
|
394 | (4) |
|
Energy, other resource prices, and imports |
|
|
394 | (1) |
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|
395 | (1) |
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|
395 | (1) |
|
|
396 | (1) |
|
|
397 | (1) |
|
Electricity and energy security |
|
|
398 | (3) |
|
|
399 | (1) |
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|
400 | (1) |
|
|
400 | (1) |
|
|
401 | (1) |
|
Costs and benefits of energy security |
|
|
402 | (5) |
|
Oil prices and oil price shocks |
|
|
402 | (1) |
|
Strategic petroleum reserve |
|
|
403 | (1) |
|
|
403 | (1) |
|
Electricity reliability and resilience |
|
|
404 | (2) |
|
|
406 | (1) |
|
|
407 | (1) |
|
|
408 | (3) |
|
18 A comprehensive energy policy: the big picture |
|
|
411 | (18) |
|
|
411 | (2) |
|
First-best and second-best policies |
|
|
413 | (2) |
|
Incentive-based policies vs. command-and-control |
|
|
414 | (1) |
|
|
415 | (9) |
|
|
415 | (3) |
|
|
418 | (3) |
|
|
421 | (1) |
|
Buildings and commercial users |
|
|
422 | (1) |
|
Buildings and residential users |
|
|
423 | (1) |
|
|
424 | (1) |
|
|
424 | (3) |
|
|
427 | (2) |
Index |
|
429 | |