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A highly influential report by the McKinsey consulting firm suggests that a large potential for profitable energy efficiency exists in the US, and that substantial greenhouse gas emissions reductions can therefore be achieved at a low cost. This result is consistent with other studies conducted using a bottom-up methodology that dates back to the work of Lovins beginning in the 1970s. Research over the past two decades, however, has identified shortcomings with the conventional bottom-up approach, and this has led to the development of new analytical frameworks that are referred to as hybrid energy–economy models. Using the CIMS hybrid model, we conducted simulations for comparison with the McKinsey results. These...
In spite of having been first introduced in the last half of the ninetieth century, the debate about the possible rebound effects from energy efficiency improvements is still an open question in the economic literature. This paper contributes to the existing research on this issue proposing an unbiased measure for economy-wide rebound effects. The novelty of this economy-wide rebound measure stems from the fact that not only actual energy savings but also potential energy savings are quantified under general equilibrium conditions. Our findings indicate that the use of engineering savings instead of general equilibrium potential savings downward biases economy-wide rebound effects and upward-biases backfire effects....
This paper analyzes the co-benefits of transport sector electrification in terms of reductions of greenhouse gas and local environmental emissions, improvement in energy security and employment generation during 2015–2050 in the case of Nepal—a developing country with large hydropower potential. A bottom up energy system model of Nepal based on the MARKAL framework was developed to assess the effects of meeting a part of the land transport service demand through electrified mass transport system and electric vehicles. The present study shows that if the share of electricity based transport services is to grow from 10% in 2015 to 35% by 2050, the hydropower generation capacity would have to increase by 495 MW by...
Oil imports represented about 43% of total US oil consumption in 1993 and oil imports are rapidly rising. Given current policies and trends, US oil imports are projected to cost over US$100 billion per year within 10 years, considering only direct purchase costs. Oil imports cost the USA significantly more when indirect costs such as jobs forgone, loss of GDP, national defence, and environmental damage are taken into account. This paper reviews the direct and indirect oil import costs and examines actions that can be taken to reduce future imports. We find that the USA could greatly reduce its oil imports during the next 20 years by increasing energy efficiency and accelerating the introduction of fuels derived...
Since the 1970s, Canada has formulated various strategy measures to accelerate the development of energy efficiency systems and renewable energy technologies and has made significant progress. "From 1990 to 2003, Canada's energy efficiency improved by an estimated 13%, or 883.3 petajoules, saving Canadians almost $13.4 billion in 2003 alone and reducing annual greenhouse gas emissions by 52.3 megatonnes". In 2000, about 17% of Canadian primary energy supply came from renewable sources (with hydroelectric, combustible renewables and waste). Canada is a leader in devising and implementing energy options for sustainable development. However, the nation still has great scope for furthering energy efficiency and more...
Costs and benefits of building energy efficiency are estimated as a means of reducing greenhouse gas emissions in Pittsburgh, PA and Austin, TX. The analysis includes electricity and natural gas consumption, covering 75% of building energy consumption in Pittsburgh and 85% in Austin. Two policy objectives were evaluated: maximize GHG reductions given initial budget constraints or maximize social savings given target GHG reductions. This approach evaluates the trade-offs between three primary and often conflicting program design parameters: initial capital constraints, social savings, and GHG reductions. Results suggest uncertainty in local stocks, demands, and efficiency significantly impacts anticipated outcomes....
We discuss that whilst energy conservation and energy efficiency both ultimately have the same goal they attempt to achieve this via very different approaches. We then discuss how both options face significant barriers to ultimately successfully reduce electricity consumption.
In spite of having been first introduced in the last half of the ninetieth century, the debate about the possible rebound effects from energy efficiency improvements is still an open question in the economic literature. This paper contributes to the existing research on this issue proposing an unbiased measure for economy-wide rebound effects. The novelty of this economy-wide rebound measure stems from the fact that not only actual energy savings but also potential energy savings are quantified under general equilibrium conditions. Our findings indicate that the use of engineering savings instead of general equilibrium potential savings downward biases economy-wide rebound effects and upward-biases backfire effects....
Current conventional agricultural systems using intensive energy has to be re-vitalized by new integrated approaches relying on renewable energy resources, which can allow farmers to stop depending on fossil resources. The aim of the present study was to compare wheat production in dryland (low input) and irrigated (high input) systems in terms of energy ratio, energy efficiency, benefit/cost ratio and amount of renewable energy use. Data were collected from 50 irrigated and 50 dryland wheat growers by using a face-to-face questionnaire in 2009. The results showed that the total energy requirement under low input was 9354.2 MJ ha-1, whereas under high input systems it was 45367.6 MJ ha-1. Total energy input consumed...
Facing global climate change and scarce petroleum supplies, the world must switch to sustainable energy systems. While historical transitions between major energy sources have occurred, most of these shifts lasted over a century or longer and were stimulated by resource scarcity, high labor costs, and technological innovations. The energy transition of the 21st century will need to be more rapid. Unfortunately, little is known about how to accelerate energy transitions. This article reviews past transitions and factors behind them, along with their time frames. Three modern case studies are discussed: Brazil, which shifted from an oil-based transportation system to one based on sugarcane-ethanol (success); France,...
Much focus is given to the energy efficiency of dwellings, in policy and regulation, in pursuance of reduced CO2 emissions for sustainability. This article examines a terrace of 6 similar, passive solar dwellings with sunspaces and the effects that occupants' behaviours have on their energy efficiency. It was found that average annual space heating demand was less than expected, indicating potential benefits from measuring passive solar gains as a form of renewable energy. Space heating demand per person varied by a factor of up to 14 between dwellings dependent on occupant behaviour. Further evidence showed a factor of 45 possible. Significant behaviours in this dwelling type were identified. A second study used...
Policy discussions concerning global warming have been based on the assumption that C02 emissions from developing countries cannot be limited without slowing their economic growth. The promise of energy efficiency is clear. However, only a correct shift in development funding and investment to support energy efficiency would allow this promise to be fulfilled. This paper shows that such an assumption is wrong. In fact, these nations can limit fossil fuel use and C02 emissions while at the same time expanding economic growth. The path to this is energy efficiency, which allows resources to be shifted from wasteful expenditure on energy to more productive sectors. The result is that less C02 is emitted while Third...
European Union countries’ current energy policies for the transport sector promote, amongst other initiatives; urban mobility plans, the renewal of fleets of cars and industrial vehicles and the introduction of biofuel. From the point of view of eco-efficiency and Life Cycle Assessment (LCA), energy policies must go further. The objective of this paper is to analyse the current transport model and the policies on energy efficiency being promoted in the EU from a LCA point of view. Special attention has been paid to private vehicles, in assessing the environmental impact of the various stages of manufacture, their use and disposal, and the consequences of plans to renew fleets. How old should a vehicle ideally be...
Technological change is one factor used to justify the existence of an Environmental Kuznets Curve, and technological improvements have been argued to be a key factor in mitigating the impacts of economic growth on environmental quality. In this paper we use a CGE model of the Scottish economy to consider the factors influencing the impacts of one form of technological change–improvements in energy efficiency–on absolute levels of CO2 emissions, on the carbon intensity of the economy (CO2 emissions relative to real GDP), and the per capita EKC relationship. These factors include the elasticity of substitution between energy and non-energy inputs, responses in the labour market and the structure of the economy. Our...
This paper analyzes the role of the energy transformation index and of final energy consumption per GDP unit in the disparities in energy intensity across countries. In that vein, we use a Theil decomposition approach to analyze global primary energy intensity inequality as well as inequality across different regions of the world and inequality within these regions. The paper first demonstrates the pre-eminence of divergence in final energy consumption per GDP unit in explaining global primary energy intensity inequality and its evolution during the 1971–2006 period. Secondly, it shows the lower (albeit non negligible) impact of the transformation index in global primary energy inequality. Thirdly, the relevance...