Energy rationing
Encyclopedia
Energy rationing primarily involves measures that are designed to force energy conservation
as an alternative to price mechanisms in energy market
s. Because of its economic consequences energy rationing is used as method of last resort, often at times of emergency such as during an energy crisis
.
include fuel rationing and the use of ration books or ration stamp
s to restrict personal consumption. Energy rationing may include penalties such as surcharges
and disconnection from electrical supply for those who choose not to reduce their demand voluntarily.
Load shedding is a common form of energy rationing used when electricity market
s cannot keep up to demand, particularly peak demand
. Limited electrical supply from power station
s at times of drought or after infrastructure
is damaged, can lead authorities to implement rationing. Brazil was forced to implement energy rationing due to drought in 2001. Reducing demand in this way aims to avoid forced power outage
s which are more disruptive than rationing.
Tradable Energy Quotas
is an energy rationing system designed to enable nations to reduce their emissions of greenhouse gases along with their use of oil, gas and coal, and to ensure fair access to energy for all.
es and carbon rationing, energy rationing is not favoured by policy makers to mitigate global warming
.
countries that have reserve currencies will prefer to buy oil rather than ration it. The Oil Depletion Protocol is form of energy rationing that was developed by Richard Heinberg
to ensure that price rationing does not price out poorer countries.
Energy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
as an alternative to price mechanisms in energy market
Energy market
Energy markets are those commodities markets that deal specifically with the trade and supply of energy. Energy market may refer to an electricity market, but can also refer to other sources of energy...
s. Because of its economic consequences energy rationing is used as method of last resort, often at times of emergency such as during an energy crisis
Energy crisis
An energy crisis is any great bottleneck in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles...
.
Forms
Examples of energy rationingRationing
Rationing is the controlled distribution of scarce resources, goods, or services. Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time.- In economics :...
include fuel rationing and the use of ration books or ration stamp
Ration stamp
A ration stamp or ration card is a stamp or card issued by a government to allow the holder to obtain food or other commodities that are in short supply during wartime or in other emergency situations...
s to restrict personal consumption. Energy rationing may include penalties such as surcharges
Fee
A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup.Traditionally, professionals in Great Britain received a fee in contradistinction to a payment, salary, or wage, and would often use guineas rather than pounds as units of account...
and disconnection from electrical supply for those who choose not to reduce their demand voluntarily.
Load shedding is a common form of energy rationing used when electricity market
Electricity market
In economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
s cannot keep up to demand, particularly peak demand
Peak demand
Peak demand is used to refer to a historically high point in the sales record of a particular product. In terms of energy use, peak demand describes a period of strong consumer demand.- Peak load :...
. Limited electrical supply from power station
Power station
A power station is an industrial facility for the generation of electric energy....
s at times of drought or after infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
is damaged, can lead authorities to implement rationing. Brazil was forced to implement energy rationing due to drought in 2001. Reducing demand in this way aims to avoid forced power outage
Power outage
A power outage is a short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network...
s which are more disruptive than rationing.
Tradable Energy Quotas
Tradable Energy Quotas
TEQs is a proposal for a national emissions and energy trading scheme that includes personal carbon trading as a central element. It is the subject of significant interest from the UK Government, and is explicitly designed to address both climate change and peak oil.The scheme was originally...
is an energy rationing system designed to enable nations to reduce their emissions of greenhouse gases along with their use of oil, gas and coal, and to ensure fair access to energy for all.
Issues
One issue with energy rationing is the cost of setting up a rationing schemes. Another criticism is that energy rationing schemes are unworkable and face many practical problems including consumer lawsuits. Due to the general disdain for restrictions that interfere with existing personal freedoms, such as ecotaxEcotax
Ecotax refers to taxes intended to promote ecologically sustainable activities via economic incentives. Such a policy can complement or avert the need for regulatory approaches. Often, an ecotax policy proposal may attempt to maintain overall tax revenue by proportionately reducing other taxes...
es and carbon rationing, energy rationing is not favoured by policy makers to mitigate global warming
Mitigation of global warming
Climate change mitigation is action to decrease the intensity of radiative forcing in order to reduce the potential effects of global warming. Mitigation is distinguished from adaptation to global warming, which involves acting to tolerate the effects of global warming...
.
Peak oil
As oil becomes more scarce due to oil depletionOil depletion
Oil depletion occurs in the second half of the production curve of an oil well, oil field, or the average of total world oil production. The Hubbert peak theory makes predictions of production rates based on prior discovery rates and anticipated production rates. Hubbert curves predict that the...
countries that have reserve currencies will prefer to buy oil rather than ration it. The Oil Depletion Protocol is form of energy rationing that was developed by Richard Heinberg
Richard Heinberg
Richard Heinberg is an American journalist and educator who has written extensively on energy, economic, and ecological issues, including oil depletion. He is the author of ten books...
to ensure that price rationing does not price out poorer countries.