Business Research Issues and Analysis/The electricity price increase in Germany

Context/Background

On September 10, the German Federal Bureau of Statistics released the latest data show that, since 2010, electricity prices increased by 26% (BDEW, 2015).There are many reasons for electricity price increasing, and the most important factor is the rise in national revenue, especially eco-energy tax. Wind and solar power plants are building constantly, but the price of electricity was expected to stop rising(K. Branker. Elt, 2011).
The increasing of electricity price have some value to study, including the reasons and the influence of it.
Research Question

The research question that will be investigated is:
What is the influence of electricity price increasing in Germany?
This problem is very widespread that it could make many influence in many different areas. For example, Industrial and agricultural. But I just choose to study the influence to customers.
So the studying aims are:
• Influence on family(personal)
• Influence on company
Research Objectives
The research objectives include:
• To identify the reason of price increase
• To understand the influence on families and companies.
The purpose for the research objectives is to show the influence of families and companies in Germany. It is important to have research objectives. Because the problem is widespread. It is necessary to reduce the scope. It could make the study more accurate.

Literature
For the research question, Bundesverband der Energie- und Wasserwirtschaf(BDEW) could give the information of electricity price ever years. It shows the increasing rate of price in recent years.
There are many reasons that could make electricity price increase. ‘A Review of Electricity Unit Cost Estimates, 2007’ define that capital costs, fuel costs and works power could influence the cost of electricity. But it is just the costs of electricity which is not the actual selling price. J. M. Pearce and Paul J. Harris define the price of electricity depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns. Now Germany government is making many nuclear power plant stop working and reducing the ratio of thermal power. It is one of the reason that make electricity price increase.
In economic, the demand of electricity is inelastic. So customer have to pay more money if the price of electricity increase. Borlick Robert(2010) show the influence between families and companies. He said people would pay more on electricity and pay less on the product market which means demand decline. And the cost of production would be increased, factories reduced workload and work-time which means supply decline. Finally the size of the market reduced. However, there is not just negative influence to Germany. Paul Joskow(2011) said it could make energy transformation become faster. Germany government stop using nuclear power and used less thermal power, so the wind and solar power would be developed.
Methodology
The researchers have chosen to undertake the research proposal using the philosophy of realism. Contemporary philosophical realism is the belief that some aspect of our reality is ontologically independent of our conceptual schemes , perceptions , linguistic practices , beliefs , etc. Realism may be spoken of with respect to other minds , the past , the future , universals , mathematical entities (such as natural numbers ), moral categories , the material world , and thought(Isaac Israeli).
It uses the data of electricity price from BDEW, 2011-2015. It shows the accurate data of electricity price and how it increasing . The data from German Federal Bureau of Statistics shows the commodity price and the ratio of electricity cost in peoples’ income.
It is possible to send some questionnaire to some German university students on Twitter to ask them the influence of electricity price increasing.
BDEW can give the ratio of Solar energy, water power, nuclear power and thermal power in Germany from 2010 to 2015. It could know Germany’s energy structure correctly.
¬Appendix

References

K. Branker, M. J.M. Pathak, J. M. Pearce, A Review of Solar Photovoltaic Levelized Cost of Electricity, Renewable and Sustainable Energy Reviews 15, pp.4470-4482 (2011)
A Review of Electricity Unit Cost EstimatesWorking Paper, December 2006 – Updated May 2007
J. M. Pearce and Paul J. Harris, “Reducing greenhouse gas emissions by inducing energy conservation and distributed generation from elimination of electric utility customer charges”, Energy Policy, 35, pp. 6514-6525, 2007
Borlick Robert ., Pricing Negawatts – DR design flaws create perverse incentives, PUBLIC UTILITIES FORTNIGHTLY, August 2010.
Comparing the Costs of Intermittent and Dispatchable Electricity-Generating Technologies”, by Paul Joskow, Massachusetts Institute of Technology, September 2011
“truth is the equation of thought and thing”was ascribed by Thomas Aquinas to a 10th-century Jewish philosopher, Isaac Israeli

The report will be an individual piece of work which enables students to put into practice elements of their proposals and and importantly show their ability and understanding of both qualitative and quantitative analysis. The report is designed to encourage students to work and undertake analysis independently. The length of the report should be a maximum of 2500 words +/-10% plus appendix.
Structure of Report (sub sections indicate what must be included)
Title Page
Contents Page (not included in word count)
Executive Summary (not included in word count)
1. Introduction
a. Summarise the proposal and introduce what is being analysed
b. State Question and Objectives
c. State Hypothesis to be tested in section 2.0
2. Quantitative Analysis
a. Present general findings of questionnaire and/or secondary quantitative data
b. Analyse data using/applying theory
c. Analyse data, for hypothesis using statistical tool e.g. Chi Square or t-test
d. Don’t forget the seven steps
1. Qualitative Analysis
a. Present general findings
b. Use/apply theory/framework to analyse the data
c. Data is qualitative, primary or secondary and we expect quotes to be used
1. Conclusion
a. What are your findings?
b. Where the objectives met and if so what has been learnt.
5.0 References (not included in word count)
6.0 Appendix (not included in word count)
.
a. Should include a blank version of the questionnaire

Originally posted 2016-03-11 08:42:33. Republished by Blog Post Promoter

Business Research Issues and Analysis/The electricity price increase in Germany

Context/Background

On September 10, the German Federal Bureau of Statistics released the latest data show that, since 2010, electricity prices increased by 26% (BDEW, 2015).There are many reasons for electricity price increasing, and the most important factor is the rise in national revenue, especially eco-energy tax. Wind and solar power plants are building constantly, but the price of electricity was expected to stop rising(K. Branker. Elt, 2011).
The increasing of electricity price have some value to study, including the reasons and the influence of it.
Research Question

The research question that will be investigated is:
What is the influence of electricity price increasing in Germany?
This problem is very widespread that it could make many influence in many different areas. For example, Industrial and agricultural. But I just choose to study the influence to customers.
So the studying aims are:
• Influence on family(personal)
• Influence on company
Research Objectives
The research objectives include:
• To identify the reason of price increase
• To understand the influence on families and companies.
The purpose for the research objectives is to show the influence of families and companies in Germany. It is important to have research objectives. Because the problem is widespread. It is necessary to reduce the scope. It could make the study more accurate.

Literature
For the research question, Bundesverband der Energie- und Wasserwirtschaf(BDEW) could give the information of electricity price ever years. It shows the increasing rate of price in recent years.
There are many reasons that could make electricity price increase. ‘A Review of Electricity Unit Cost Estimates, 2007’ define that capital costs, fuel costs and works power could influence the cost of electricity. But it is just the costs of electricity which is not the actual selling price. J. M. Pearce and Paul J. Harris define the price of electricity depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns. Now Germany government is making many nuclear power plant stop working and reducing the ratio of thermal power. It is one of the reason that make electricity price increase.
In economic, the demand of electricity is inelastic. So customer have to pay more money if the price of electricity increase. Borlick Robert(2010) show the influence between families and companies. He said people would pay more on electricity and pay less on the product market which means demand decline. And the cost of production would be increased, factories reduced workload and work-time which means supply decline. Finally the size of the market reduced. However, there is not just negative influence to Germany. Paul Joskow(2011) said it could make energy transformation become faster. Germany government stop using nuclear power and used less thermal power, so the wind and solar power would be developed.
Methodology
The researchers have chosen to undertake the research proposal using the philosophy of realism. Contemporary philosophical realism is the belief that some aspect of our reality is ontologically independent of our conceptual schemes , perceptions , linguistic practices , beliefs , etc. Realism may be spoken of with respect to other minds , the past , the future , universals , mathematical entities (such as natural numbers ), moral categories , the material world , and thought(Isaac Israeli).
It uses the data of electricity price from BDEW, 2011-2015. It shows the accurate data of electricity price and how it increasing . The data from German Federal Bureau of Statistics shows the commodity price and the ratio of electricity cost in peoples’ income.
It is possible to send some questionnaire to some German university students on Twitter to ask them the influence of electricity price increasing.
BDEW can give the ratio of Solar energy, water power, nuclear power and thermal power in Germany from 2010 to 2015. It could know Germany’s energy structure correctly.
¬Appendix

References

K. Branker, M. J.M. Pathak, J. M. Pearce, A Review of Solar Photovoltaic Levelized Cost of Electricity, Renewable and Sustainable Energy Reviews 15, pp.4470-4482 (2011)
A Review of Electricity Unit Cost EstimatesWorking Paper, December 2006 – Updated May 2007
J. M. Pearce and Paul J. Harris, “Reducing greenhouse gas emissions by inducing energy conservation and distributed generation from elimination of electric utility customer charges”, Energy Policy, 35, pp. 6514-6525, 2007
Borlick Robert ., Pricing Negawatts – DR design flaws create perverse incentives, PUBLIC UTILITIES FORTNIGHTLY, August 2010.
Comparing the Costs of Intermittent and Dispatchable Electricity-Generating Technologies”, by Paul Joskow, Massachusetts Institute of Technology, September 2011
“truth is the equation of thought and thing”was ascribed by Thomas Aquinas to a 10th-century Jewish philosopher, Isaac Israeli

The report will be an individual piece of work which enables students to put into practice elements of their proposals and and importantly show their ability and understanding of both qualitative and quantitative analysis. The report is designed to encourage students to work and undertake analysis independently. The length of the report should be a maximum of 2500 words +/-10% plus appendix.
Structure of Report (sub sections indicate what must be included)
Title Page
Contents Page (not included in word count)
Executive Summary (not included in word count)
1. Introduction
a. Summarise the proposal and introduce what is being analysed
b. State Question and Objectives
c. State Hypothesis to be tested in section 2.0
2. Quantitative Analysis
a. Present general findings of questionnaire and/or secondary quantitative data
b. Analyse data using/applying theory
c. Analyse data, for hypothesis using statistical tool e.g. Chi Square or t-test
d. Don’t forget the seven steps
1. Qualitative Analysis
a. Present general findings
b. Use/apply theory/framework to analyse the data
c. Data is qualitative, primary or secondary and we expect quotes to be used
1. Conclusion
a. What are your findings?
b. Where the objectives met and if so what has been learnt.
5.0 References (not included in word count)
6.0 Appendix (not included in word count)
.
a. Should include a blank version of the questionnaire