This tool represents a quantitative indicator approach to measure multiple benefits of energy efficiency (MB-EE) developed as part of the ODYSSEE-MURE project. It aims to show the different aspects of energy efficiency beyond energy savings and give a more holistic view on its benefit.
The MB-EEs are classified into three groups: environmental, economic, and social –related MBs. The first group contains most relevant and direct aspects of energy efficiency such as energy savings and reduced GHG emissions. The second group comprises, among others, positive macro-economic impacts on economic growth, for innovation and competitiveness as well as import dependency. The third group of impacts covers aspects such as health benefits, poverty alleviation and employment.
To use the tool just click on a group of benefits you are most interested in and browse the different aspects. To see a group as a whole just click on “Map View” and choose the group you like.
Quality assessment of indicators: To assess the different quality levels we divided the indicators into several groups (category A to C). You find the list and their corresponding quality levels here
Fraunhofer Institute for Systems and Innovation Research ISI et al., 2016
The study provides a comprehensive assessment of the entire H/C sector in the EU including Switzerland, Norway and Iceland. It analyses the current state of the sector as well as its evolution up to the year 2030 using a bottom-up modelling approach. The assessments include detailed analyses of residential and non-residential buildings, industrial processes and district heating. It compares a current policy scenario with two more ambitious policy scenarios. The results are analysed with regard to final, useful and primary energy, CO2 emissions, import shares, induced investments and RES-H/C shares. Moreover, the macroeconomic impacts in terms of economic growth and induced employment are assessed. Both quota scenarios show a positive impact on GDP and on employment. However, the change is relatively small, mainly due to the fact that the two quota scenarios are only little more ambitious than the current policy scenario. Therefore, GDP is expected to be 0.07% - 0.12% higher in 2030. Accordingly, full-time equivalent employment increases marginally by 0.02-0.04%.
Ryan, Lisa; Campbell, Nina, 2014
Increasingly, research is showing that energy savings from energy efficiency improvements can deliver wider benefits across the whole economy such as increases in employment, GDP, trade balances, energy security etc. Given the complexity of the interactions throughout the economy, and the high level of interest by governments in understanding and predicting them, it is important to have a robust methodological framework for carrying out energy efficiency policy assessments. There is also the question of how the macroeconomic benefits impact energy consumption and whether these indirect rebound effects offset much of the initial energy savings from the energy efficiency measures. This paper investigates these interactions and provides guidance to policy makers on how to measure the macroeconomic impacts of energy efficiency measures. It also provides an overview of estimates in the literature how macroeconomic indicators are affected. However, one must be aware that impacts on these indicators are dependent on the structure and nature of the economy, the scale and substance of realised energy efficiency outcomes, and the distribution of outcomes across consumers and producers. Moreover, there are difficulties when comparing studies due to different methods used etc. According to GDP increase, estimates range from 0.1% to 1.26%. The number of net job years created per million euros invested ranges from 7 to 22. Trade is positively affected as well, albeit only slightly (0.2 – 0.5%). Energy prices are also expected to decline as a consequence of energy efficiency measures.
Næss-Schmidt, Helge Sigurd; Bo Hansen, Martin; von Utfall Danielsson, Carl, 2012
Energy savings through the renovation of the existing building stock is one of the most attractive and low cost options to reduce the emissions of CO2 and potentially improve energy security by reducing imports of fossil fuels. Indeed, there is wide evidence that undertaking energy efficient renovations at current energy prices often pay for themselves. In addition to the energy savings that renovation of the existing buildings stock will bring, there are a range of co-benefits, which can also be harvested. By reducing energy consumption and focusing on indoor climate issues when renovating, co-benefits can be achieved such as reduced outlay on government subsidies, and improved health due to less air pollution and a better indoor climate, both of which also lead to fewer hospitalisations and improved worker productivity. Harvesting renovation opportunities could bring huge benefits to the EU economy over the coming decades. Based on available estimates of the potential for energy savings from renovation of buildings, this study suggests a monetised permanent annual benefit to society of €104-175 billion in 2020 depending on the level of investments made from 2012 to 2020, €52-75 billion from lower energy bills, and at least €9-12 billion from the co-benefits of reduced outlay on subsidies and reduced air pollution from energy production. If the health benefits from improved indoor climate are included, the benefits are increased by an additional €42-88 billion per year. These health benefits are evident, but very uncertain to estimate, and should be interpreted accordingly. If investments are continued after 2020, these annual benefits can be doubled by 2030.
Malone, Leslie; Howland, Jamie, 2014
This modelling study helps to better understand the economy-wide benefits and costs from investing in energy efficiency as a resource in Canada. It examines the macroeconomic impacts – dollars of GDP and jobs created – from investments in cost-effective energy efficiency that reduce demand for electricity, natural gas, and liquid fossil fuel. The results show that reducing demand for energy has a significant, positive impact on economic growth and job creation beyond those commonly acknowledged or measured. Regarding Canada, a total net increase in national GDP of $230 billion to $580 billion over the study period (2012 - 2040) can be achieved. Every $1 spent on energy efficiency programs results in an increase in GDP of $5 to $8. Moreover, the total net increase in national employment ranges from 1.5 to 4.0 million job-years. Every $1 million invested in efficiency programs generates 30 to 52 job-years. Across Canada, the peak annual increase in GDP is $19 billion to $48 billion, and the maximum annual increase in employment is 121,000 to 304,000 jobs. Since it is a net benefit analysis, the results also include negative ratepayer effects, or costs to fund programs and losses from avoided electricity generation. The study applies the Regional Economic Models Inc. (REMI) PI+ model which estimates the net economic impact of a new policy scenario by comparing a base case annual economic forecast to an alternate forecast that includes new dollars of investment in energy efficiency, the resulting dollars of savings that are realized and reinvested, and any negative offsets. Efficiency resources contribute to economic growth and job creation because on the one hand saving energy starts with smart spending. Saving energy requires investment in energy efficiency products as well as community labour like hiring contractors to install insulation or new windows, generating increased local spending and jobs. On the other hand, saving energy is less expensive relative to other energy options. On average, efficiency programs costs 2 - 4 cents to save a lifetime kilowatt-hour of electricity. By comparison, coal-fired generation can cost 10 cents/kWh. Thus, investing in energy efficiency lowers the cost of the energy system and saves all ratepayers money. In addition, improving the energy efficiency of homes and businesses lowers consumer energy bills. Nationally, the scenarios modelled in this study save $94 - $220 billion in avoided energy costs from 2012 to 2040. Lower energy bills reduce the cost of living and of doing business, leading to increased discretionary spending (dining out, renovations, travel) and improved industrial competitiveness, which drives new economic output.
Cambridge Econometrics, 2015
The study assesses the direct and indirect linkages between energy efficiency, labour markets and social welfare, at both the micro and the macro levels, using a mixture of qualitative and quantitative approaches to carry out the analysis. The study includes a detailed literature review. It found that energy efficiency can have a range of benefits to households, businesses and wider society. The literature has identified positive effects on GDP and employment of investment in energy efficiency. With only a few exceptions, the studies report a positive effect on GDP ranging from 0.3% to 1.3% depending on time periods, geography and the scale of the programme being assessed. For comparison, the modelling carried out for the present study examined a range of alternative scenarios for the ambition for the intensity of energy efficiency achievements and used models from the two main theoretical traditions (a CGE model and a macro-econometric model) that have been used in the literature to assess economic impacts. The modelling found that setting a fairly ambitious energy efficiency target for Europe would have a modest impact on GDP (-0.2% in the CGE model and +1.1% in the macroeconometric model) compared to a baseline scenario by 2030. The main reason for the difference is that the CGE model assumed that the investment to implement energy efficiency measures would crowd out other investment, whereas the macro-econometric model allowed the energy efficiency investment to be additional. Regarding employment, the literature review found that the manufacture and installation of energy efficient equipment and materials is a relatively labour-intensive activity that has the potential to boost local labour markets. However, the skills requirements are often quite specific, so there could be a role for active intervention in providing training to local workforces. Because of their relatively high levels of labour intensity, energy efficiency measures are widely seen as creating more jobs than new energy generation, which tends to be much more capital intensive. Per million euros of spend, investment in energy efficiency could create up to twice as many jobs as investment in new energy generation. A stimulus to employment may also arise as a result of the export potential of energy efficiency activities and/or the substitution of imported energy. Both models applied in this study predict an increase in EU employment when more ambitious energy efficiency programmes are implemented. In E3ME this reflects the higher level of GDP; in GEM-E3 it arises because of substitution of labour for capital, which outweighs the effect of lower GDP. The range of impacts in the 30% saving scenario is 0.3% to 1.9% of EU employment by 2030. In absolute terms, this amounts to a potential increase in EU employment of 0.7-4.2m in 2030.
Wade, Joanne; Wiltshire, Victoria; Scrase, Ivan, 2000
The study considers the employment impacts of 44 energy efficiency investment programmes (fiscal, regulatory, educational, others) that are ongoing or were recently implemented at that time in 9 EU countries. A case study approach is complemented both by an enhanced form of input-output (I/O) modelling in the residential sector and secondly, by a general equilibrium modelling (GEM) approach, considering the macro-economic impacts of the basket of energy efficiency programmes represented in the case studies. All three approaches found that, in the majority of cases, energy efficiency investment programmes increased employment. The case studies identify a positive employment impact which ranges from 4 to 14 person-years per million Euros invested. The jobs created are often in sectors, locations and skill groups that are prioritised in employment policies. In the residential sector employment gains were typically higher than in other sectors. However the investments tended to be less cost-effective in terms of energy savings than in other sectors. According to the input-output analysis, fiscal initiatives in the residential sector were estimated to result in a net increase in total employment over a 15 year period, ranging from 9 to 14 person-years per million Euros invested. Regulatory initiatives in the residential sector were estimated to result in a mean gain of 27 person-years per million Euros invested, while other types of policies returned even higher employment gains. The macro-economic modelling approach confirms the positive employment impact and additionally suggests that where countries unilaterally initiate energy efficiency programmes there can be some job losses at the EU level in the short term. However at the national level negative outcomes are very rare in terms of employment, and in the longer term the outcome is always positive.
Association for the Conservation of Energy, 2000
Improving energy efficiency in buildings is a particularly effective way to stimulate employment in the places where it is needed most, and to employ people who have the greatest trouble in finding jobs. In terms of direct employment, energy efficiency in buildings is a labour intensive sector, engaging many small, geographically dispersed installation companies. Furthermore, lower fuel bills mean more money to spend on non-energy items (and the labour intensity in sectors stimulated by general consumption exceeds that in the energy supply sector). Thus indirect employment is stimulated by the energy savings, for years after the work is completed. Ultimately, energy efficiency contributes to economic efficiency and growth, which creates more wealth and employment opportunities. Seven energy efficiency investment programmes were studied to identify the jobs created. Direct employment was calculated by interviewing implementing agencies, using published reports, and where necessary by extrapolation from the amount spent in each sector. The indirect employment was calculated using an input-output modelling approach. Further modelling using the same data assessed the long term impacts on the economy as a whole. The core of the report is the discussion in the case studies, relating to how businesses and individuals responded to the new employment opportunities arising from energy efficiency programmes. The studies show the benefits of energy efficiency investment in terms of employment gains, increased training, and opportunities for people who have been in long-term unemployment. The case studies also make an assessment of the cost-effectiveness of the programmes in terms of energy savings. This cost-effectiveness varied, but was generally good. Where training and addressing long-term unemployment were priorities the total cost prohibited cost-effectiveness, if measured only in terms of energy savings. Energy efficiency programmes in the UK have multiple aims, such as assisting low income families afford to heat their homes, reducing carbon dioxide emissions, and avoiding investment in new supply capacity. In general creating employment is not the aim, but the study demonstrates that investing in energy efficiency has created jobs and, where schemes were designed to include quality training, increased skill levels for the workers involved. This is a very desirable side benefit, particularly considering that many of the jobs were created in manual occupations in areas of high unemployment.
Oxera Consulting, 2006
In understanding the reasons for the low take-up of energy efficiency measures in the UK domestic housing sector, it is possible to determine how to make energy efficiency improvements more attractive to householders and design appropriate policies. The study begins by consolidating evaluations of previous and existing policies, combining this with an economic literature review of what affects energy efficiency take-up by households. As a result, several hypotheses of the reaction of householders to policies are identified, and the strength of evidence supporting these hypotheses is assessed. This process identified a lack of primary evidence in order to make policy decisions more confidently. The review also identified suggestions for designs for policy and issues to be taken into account in determining whether intervention is desirable. The survey was designed to gather data to fill gaps in existing knowledge and to allow testing of hypotheses about how people make choices about energy efficiency. Analysis of this data reveals the significant drivers of choice and the magnitude of their influence can be estimated precisely. Once the main influences of choice have been identified, models are built, representing the character of the UK housing and appliance stock and the preferences driving homeowners’ decisions. These drivers, such as prices, are linked to potential policy levers, such as price discounts and awareness campaigns. The model was then used to predict the take-up of energy efficiency measures by homeowners in response to a range of candidate policies, and hence to determine how effective those policies would be. The most important finding is that future energy savings do not appear to be an important factor in a householder’s decision to fit insulation or to buy efficient appliances. Other factors have much more influence in the decision, first of all the price. Also of great importance is the finding that most households have very poor knowledge of the characteristics of energy efficiency measures – for example, having little idea about the costs of common insulation measures. Of those who do have some idea, most have over-inflated expectations of the costs, and only a small minority have accurate knowledge. The greatest scope for savings among the efficiency measures lies in cavity wall insulation (CWI), followed by loft insulation (LI) and lighting.
Energy Saving Trust, 2013
There is a significant potential for abatement of CO emissions through uptake of energy efficiency measures in the UK building stock. These include thermal insulation measures which reduce the heating demand, electrical appliances that reduce the electricity consumption and replacement of existing heating and lighting equipment with more efficient technology, often driven by regulations. Energy efficiency measures can also reduce the cost of energy, potentially offsetting any increases required to reduce the carbon intensity of fuel supply. Efficiency measures are often amongst the most cost effective means of carbon reduction. This study reviews and updates the evidence base on the remaining technical potential for the installation of energy efficiency measures and generates the marginal abatement cost curves (MACC). The remaining technical potential in 2013 and the energy savings attributed to each measure result in a total potential for annual emission savings of around 49Mt (without the inclusion of in use factors). These savings take into account any potential overlap between the impacts of measures when applied together. The study identifies for solid wall insulation (SWI) a cost effectiveness of £79/t and £361/t for internal and external insulation respectively, which is low compared to previous MACC models. This is due to a higher cost of installation and lower energy savings from an overall improvement in stock boiler efficiency. Moreover, the revised cost evidence for SWI shows that these costs vary between £8,500 - £12,000 and £4,000 - £10,500 for external and internal SWI respectively. The energy savings from SWI with the revised modelling across UK stock, taking into account improved boiler efficiencies, results in weighted average savings of 6,700kWh /year and 6,000kWh /year for external and internal SWI respectively. The major cost-effective energy efficiency measures include cavity wall insulation (CWI) and loft insulation. The biggest potential for emission savings is represented by SWI and new double glazing which have combined savings of around 14Mt (28% of total). The presentation of results includes graphs showing first the technical potential for annual emission savings (Mt), second the annualised cost, fuel savings (£), net cost and annual emission savings (t), and third marginal abatement cost curves for all measures without any in use factors.
PROGNOS AG, 2013
On the one hand, the European Energy Efficiency Directive requires Member States to set an indicative efficiency target (Article 3 EED). In addition, Article 7 EED requires Member States, inter alia, to introduce, for the period from 01.01.2014 to 31.12.2020, an energy-saving obligation for energy supplying companies amounting to 1.5% of the average amount of energy sold to their final customers within a reference period or, alternatively, to implement policy measures with an equivalent energy saving effect. This report examines the options set out in Art. 7 EED and calculates the resulting savings from existing and planned policies in Germany. Overall, the final energy savings of over 50 individual measures were evaluated and grouped into four impact groups (standard setting measures, investment promotion, price impulses and non-investment measures). It concludes that a savings value of 2814 PJ in final energy consumption can be achieved if the transport sector (8933 PJ) is included. Excluding the final energy consumption of the transport sector, the savings value amounts to 2005 PJ. The calculated savings value represents additional yearly savings of 100 PJ (with traffic). Without traffic, an additional 72 PJ should be saved each year, which roughly corresponds to the final energy consumption of the city of Frankfurt am Main. The sum of all quantified measures is just under 2070 PJ. The biggest contributors here are the price impulses from various price and cost components of the prices for fuels, heat and electricity (about 1170 PJ). The group with the second highest cumulative impact are the investment subsidies (about 400 PJ), which are mainly impacted by the KfW programmes. In view of the comparatively straightforward observation period (2014 to 2020), the standards-setting measures for new construction and refurbishment only rank third only due to their longer time constants (about 335 PJ). Experience has shown that it is difficult to adequately capture the impact of non-investment measures in a linear cause-and-effect relationship. Calculative, these measures can account for approximately 170 PJ of savings. Price impulses can yield an annual savings of nearly 170 PJ, which adds up to approximately 1170 PJ over the period under consideration. The impact of the other policy areas accumulates, with an average of just over 30 PJ of savings added per year, to cumulative savings of well over 900 PJ of savings.
Fraunhofer Institute for Systems and Innovation Research ISI et al., 2014
This study has two main objectives: first to report on the evaluation of the achievement of the 2020 energy efficiency target of 20%, second to discuss energy efficiency potentials in two different time horizons (2020, 2030) mainly in view of a 2030 target frame for energy efficiency. Therefore, an assessment of the effectiveness of a target selection of national measures and policies up to 2020 (Bottom-up policy analysis of Art. 3 of the EED) is carried out, as well as a decomposition analysis of past energy efficiency achievements (2000-2012 and 2008-12) and projection to 2020. Also, policies up to 2020 based on national and EU policies and energy efficiency potentials up to 2030 are analysed applying bottom-up modelling. The results are presented as a percentage reduction compared to a fixed baseline (the PRIMES 2007 baseline). For the energy efficiency gap for 2020, the most recent PRIMES 2013 projections find a gap of 3% points for primary energy and of 4% points for final energy. The comparison of the different PRIMES projections by adjusting changing activity levels shows that most of the progress since 2007 is due to activity changes and roughly about 4-5% points from energy efficiency policies since then. Accordingly, this study finds with the three methods (bottom-up policy analysis, decomposition analysis and modelling analysis) for both primary and final energy a gap 3% to 0% point, the latter for the bottom-up policy analysis. This implies, however, that a variety of planned measures are implemented by the EU Member States although it is confirmed through interviews that a number of measures proposed in the NEEAPs 2 and the Art. 7 notifications will have reduced impacts as compared to the planning. For 2030 the study finds, using the same metrics as for the 2020 target that economic potentials from a macro-economic perspective, using low discount rates and assumptions on non-economic instruments instead of economic instruments to overcome non-economic barriers, may be 37% in 2030 for final energy and 40% for primary energy. The baseline scenario reaches around 24% reduction in 2030.
Institut Wohnen und Umwelt GmbH; Fraunhofer Institute for Manufacturing Technology and Advanced Materials IFAM, 2016
The KfW programmes “Energy-efficient Refurbishment” and “Energy-efficient Construction” are the most significant providers of financial incentives for more energy efficiency in the German housing sector. Basic data for commitments of 2015 were collected through written surveys of a sample from the recipients of promotion. Model calculations were carried out to determine quantitative results for the energy savings, greenhouse gas reductions, as well as savings in heating costs and employment effects associated with the supported modernisation and new-built projects. Under the "Energy-efficient Refurbishment" programme, energy-saving refurbishment projects are promoted by loans at favourable conditions or grants. In 2015, just below 105,000 promotional commitments to modernise about 237,000 dwellings were allocated. In about 40 % of all promoted buildings and nearly all KfW Efficiency Houses, thermal insulation measures have been carried out. The compliance with quality standards (e.g. insulation thickness) go far beyond the requirements set out by the Energy Saving Ordinance (EnEV). In 68 % of the promotional cases the main heat supply system was replaced; this applies to 81 % of KfW Efficiency Houses. Solar systems (solar thermal or PV) were installed in 11 % of the modernisation projects and in 44 % of the KfW Efficiency Houses respectively. Ventilation systems – mostly together with heat recovery – have been installed in about 8 % of all promotional cases or 37 % of the KfW Efficiency Houses. These promoted modernisation projects’ annual final energy savings amount to 1,400 GWh per year. With regard to new buildings, the KfW "Energy-efficient Construction" programme promotes forward-looking standards related to the entire building, where special benchmarks concerning primary energy and thermal insulation must be met. Requirements for new buildings according to the particular EnEV in force are used as a reference case for the determination of energy savings, greenhouse gas reductions and savings in heating costs. In 2015, the programme supported approximately 83,000 building projects comprising 142,000 dwellings. Judging by the number of building permits in 2015, the programme reached a share of around 53 % of all new residential constructions in Germany. Single-layer brick walls had a total share of 55 % (27 % solid brick walls with additional insulation, 8 % insulation-filled bricks, 20 % without additional thermal insulation). Also very common are thermally insulated timber constructions (26 %), and cavity walls (with insulation in the space between the two leafs) at 17 %. Most of the new buildings are heated by electric heat pumps (49 %). Gas heaters (primarily natural gas) have a share of 33 %, district heating 12 % and biomass heating systems about 6 %. Solar thermal or PV systems were installed on 47 % of all buildings, ventilation systems (predominantly with heat recovery) in 59 %. The annual final energy savings in 2015 amount to approximately 382 GWh per year compared to the EnEV reference case. The primary energy savings (non-renewable sources of energy) are calculated to be about 540 GWh per year. The reduction in greenhouse gases adds up to around 139,000 tonnes of CO2e per year (CO2 equivalents with upstream processes) when compared to the reference case. Accordingly, the annual savings in heating costs come to around EUR 59 million per year. Total savings in heating costs of around EUR 2 billion result (present value discounted to 2015) based on the assumption of a useful life span of 30 years.
Institut Wohnen und Umwelt GmbH; Fraunhofer Institute for Manufacturing Technology and Advanced Materials IFAM, 2016
The KfW programmes “Energy-efficient Refurbishment” and “Energy-efficient Construction” are the most significant providers of financial incentives for more energy efficiency in the German housing sector. Basic data for commitments of 2015 were collected through written surveys of a sample from the recipients of promotion. Model calculations were carried out to determine quantitative results for the energy savings, greenhouse gas reductions, as well as savings in heating costs and employment effects associated with the supported modernisation and new-built projects. Under the "Energy-efficient Refurbishment" programme, energy-saving refurbishment projects are promoted by loans at favourable conditions or grants. In 2015, just below 105,000 promotional commitments to modernise about 237,000 dwellings were allocated. In about 40 % of all promoted buildings and nearly all KfW Efficiency Houses, thermal insulation measures have been carried out. The compliance with quality standards (e.g. insulation thickness) go far beyond the requirements set out by the Energy Saving Ordinance (EnEV). In 68 % of the promotional cases the main heat supply system was replaced; this applies to 81 % of KfW Efficiency Houses. Solar systems (solar thermal or PV) were installed in 11 % of the modernisation projects and in 44 % of the KfW Efficiency Houses respectively. Ventilation systems – mostly together with heat recovery – have been installed in about 8 % of all promotional cases or 37 % of the KfW Efficiency Houses. These promoted modernisation projects’ annual final energy savings amount to 1,400 GWh per year. With regard to new buildings, the KfW "Energy-efficient Construction" programme promotes forward-looking standards related to the entire building, where special benchmarks concerning primary energy and thermal insulation must be met. Requirements for new buildings according to the particular EnEV in force are used as a reference case for the determination of energy savings, greenhouse gas reductions and savings in heating costs. In 2015, the programme supported approximately 83,000 building projects comprising 142,000 dwellings. Judging by the number of building permits in 2015, the programme reached a share of around 53 % of all new residential constructions in Germany. Single-layer brick walls had a total share of 55 % (27 % solid brick walls with additional insulation, 8 % insulation-filled bricks, 20 % without additional thermal insulation). Also very common are thermally insulated timber constructions (26 %), and cavity walls (with insulation in the space between the two leafs) at 17 %. Most of the new buildings are heated by electric heat pumps (49 %). Gas heaters (primarily natural gas) have a share of 33 %, district heating 12 % and biomass heating systems about 6 %. Solar thermal or PV systems were installed on 47 % of all buildings, ventilation systems (predominantly with heat recovery) in 59 %. The annual final energy savings in 2015 amount to approximately 382 GWh per year compared to the EnEV reference case. The primary energy savings (non-renewable sources of energy) are calculated to be about 540 GWh per year. The reduction in greenhouse gases adds up to around 139,000 tonnes of CO2e per year (CO2 equivalents with upstream processes) when compared to the reference case. Accordingly, the annual savings in heating costs come to around EUR 59 million per year. Total savings in heating costs of around EUR 2 billion result (present value discounted to 2015) based on the assumption of a useful life span of 30 years.
Hartwig, Johannes; Kockat, Judith; Schade, Wolfgang; Braungardt, Sibylle , 2017
Energy efficiency is one of the fastest and most cost-effective contributions to a sustainable, secure and affordable energy system. Furthermore, the so-called “non-energy benefits”, “co-benefits” or “multiple benefits” of energy efficiency are receiving increased interest from policy makers and the scientific community. Among the various non-energy benefits of energy efficiency initiatives, the macroeconomic benefits play an important role. The study presents a detailed analysis of the long-term macroeconomic effects of German energy efficiency policy including the industry and service sectors as well as residential energy demand. It quantifies the macroeconomic effects of an ambitious energy efficiency scenario by combining bottom-up models with an extended dynamic input-output model. It also studies sectoral shifts within the economy regarding value added and employment compared to the baseline scenario. An in-depth analysis of the effects of energy efficiency policy on consumers, individual industry sectors, and the economy as a whole is provided. The study identifies significant positive macroeconomic effects resulting from energy efficiency initiatives, with growth effects for both GDP and employment ranging between 0.88% and 3.38% within the time span considered until 2050. Differences in sectoral gains lead to a shift in the economy. The study’s methodological approach provides a comprehensive framework for analysing the macroeconomic benefits of energy efficiency and hence contributes to improving the basis for policy decision-makers towards ambitious and cost-effective energy efficiency policy.
Holmes, Ingrid; Mohanty, Rohan, 2012
In response to the Euro crisis, more expansionary macroeconomic policies will be vital to supporting demand. Such stimulus should focus on the most beneficial investments in terms of providing resilience against systemic macroeconomic risks and provide a foundation for future productivity and growth. An energy efficiency-focused stimulus is a strong candidate on both counts. A study looking at US data estimated that a 1 % improvement in total useful work in the economy − a proxy for energy efficiency − results in a 0.18 % increase in long‐run GDP. Quantitative analysis undertaken by Cambridge Econometrics found that the UK’s energy efficiency policies between 2000 and 2010 increased real annual GDP by 0.1 %. Also, increased energy efficiency investment can act as a key ‘hedge’ against fossil fuel price spikes, delivering increased energy security and economic resilience. Further compelling macroeconomic arguments for focusing on energy efficiency include the creation of employment opportunities to utilise spare capacity in the labour market, reduce several direct costs on the European economy and enhance living standards. Moreover there is a clear need for governments to help kick‐start scaled energy efficiency markets. Of the $260 billion spent globally on clean energy in 2011, less than 7 % went to energy efficiency. Realising the investment potential will require enhanced efforts both from Europe and from Member State governments to create the incentive frameworks to overcome market inertia, secure demand and facilitate private capital provision. At EU level the focus should be on securing the ambition of the European market; removing conflicting energy price signals; requiring Member States to scale up their institutional response; and kick‐starting Member State markets with EU public financing. At Member State level the focus should be on the design of long‐term regulatory frameworks focused where possible on outcomes rather prescription to enable innovation. Additional institutional capacity will undoubtedly be needed − and should be focused on addressing the specific needs of each sector. Energy efficient upgrade of the EU’s infrastructure − kick‐started by targeted fiscal stimulus and set up to complement wider structural reforms − could provide a convincing route map to European recovery. However it is only likely to happen if the EU and Member State governments start to regard identification and delivery of energy efficient projects as being on a par with delivery of other major infrastructure projects − and provide fair and equivalent treatment to supply and demand side solutions.
Sauter, Robert; Volkery, Axel, 2013
There is a lot of empirical evidence that energy savings measures often provide an effective, cost-efficient approach to reducing greenhouse gas emissions, while generating co-benefits on employment and competiveness. This report presents the empirical evidence on costs and benefits reported in ex-post evaluations for the residential/buildings sector, the industrial sector, transport sector and energy infrastructure as well as cross-sectoral results. It also points to the opportunities of export markets for European energy efficiency technologies. The evaluations presented strongly suggest that the benefits outweigh the costs of energy efficiency measures both from the perspective of the beneficiaries and the public authorities providing financing for the relevant measures or programmes. For example, for the KfW energy efficiency programme in Germany it is estimated that in 2011 alone public authorities at the regional and federal have enjoyed a net benefit of EUR 3 billion based on conservative assumptions covering investments directly supported by the KfW programme. The total net benefits could be as high as EUR 10 billion if all induced investments are taken into account. The highest benefits arise from the VAT income on the goods and services delivered and the additional income tax and social security contributions. Avoided unemployment costs are also an important component in the overall benefits. These benefits by far outweigh the total programme costs of EUR 952 million. However, it is important to note that these benefits occur at the time of programme implementation and can only be maintained if the programme is continued. As soon as the loan repayments are higher than new investments the overall picture changes and net impact on GDP becomes negative. The evaluation of the Swedish programme for improving energy efficiency in energy-intensive industries estimated that between 2005 and 2009 companies invested EUR 70.8 million in electricity savings measures leading to net annual energy savings of between 689 and 1015 GWh. It is further estimated that each MWh of saved electricity cost between EUR 9.30 and 13.60 compared to an average annual wholesale price of EUR 29 and 51 in the same period. Similarly the evaluation of the Irish energy savings programme in SME estimated costs of between 1.8c (to 2020) and 0.7c (to 2030) for energy savings measures compared to average electricity cost of 8.2c per kWh.
Whelan, Robert; Krebs, Tessa; Morgan, Tina, 2015
The report describes the economic effects of energy conservation work done in Oregon. It addresses the macroeconomic effects qualitatively, as there is no credible macroeconomic model of Oregon that reliably predicts how improving energy efficiency over the long run would play out. Therefore, the report begins with a logical, albeit largely qualitative discussion of the macroeconomic benefits of improving energy efficiency in Oregon. An economic impact analysis is applied, which returns what effects an average year of investment in Oregon on energy efficiency products and services has on the state’s economy. It then looks at the useful, though less common perspective, of how one year of investment saves consumers money on their utility bills. Specifically, how they spend those savings and what the economic impacts of that spending are. The analysis considers an average year and provides data for 2008 through 2012. That is five years of spending by utilities and utility customers on energy efficiency products and services. In the average year, over a quarter of a billion dollars is invested in energy efficiency products and services within Oregon State. Had no money been spent on efficiency measures, some of that money would have been spent elsewhere on other goods and services, and that spending would have had economic impacts. Subtracting this alternative from the gross impacts returns net impacts, i.e. the net difference energy efficiency spending had in the average year. In the average recent year, there were on net 2,433 more jobs in Oregon because of energy efficiency investments. They had a net impact of $153.3 million in additional labour income. The state’s gross regional product GRP was $128.7 million higher as a result. The net impacts of installation are positive since nearly all installation spending occurs inside Oregon and is local-labour intensive. The subsequent rounds of spending and employment stay mostly within Oregon. In comparison, general spending, especially by businesses, is more likely to involve out-of-state purchases. The second impact arises from the savings on utility bills in the years after 2012 due to energy efficiency. In turn, this frees up money, which utility customers spend elsewhere. They do most of that spending in Oregon, so it triggers new economic impacts. Alternatively, if no installations had been put in place in 2012, future utility bills would have been higher. Therefore, utility providers would have higher output, employ more people, and buy more supplies and services. Subtracting this alternative from the gross impacts, on a net basis Oregon would see 468 more jobs, $11.2 million more in labour income, and $8.1 million in additional GRP each year past 2012, until the energy efficiency measures reach the end of their useful lives. In this effect, the analysis finds that although general spending of savings has leakage, the alternative of paying higher utility bills instead has an even higher leakage rate because utilities spend primarily on capital equipment and fuel, both of which are mostly non-local. Thus, the net effect of future energy savings on the economy of Oregon is positive.
Pehnt, Martin; Lutz, Christian; Seefeldt, Friedrich; Schlomann, Barbara; Wünsch, Marco; Lehr, Ulrike; Lambrecht, Udo; Fleiter, Tobias, 2009
The subject of this study is the importance of additional measures to increase energy efficiency by 2020 for the achievement of national climate and energy targets in Germany as well as the macroeconomic effects of such an efficiency strategy. For 33 particular energy efficiency and energy saving measures, the potentials and required differential investments until 2020 are determined. The study outlines the cost-effective potential and investment needed to be developed compared to a reference scenario, in the private households, business/commerce/services, industrial and transport sectors. The necessary investments concern energy-saving buildings, efficient appliances, heating systems, ventilation and air-conditioning systems, processes and drives, as well as low-cost measures such as training on energy-efficient behavior. In sum, the additional energy-saving potential of the measures identified is around 10% of the final energy demand in 2007. Compared to the reference scenario, the electricity savings of the measures amount to around 260 PJ in 2020, which corresponds to a saving of 14% of electricity demand in 2005 or the power generation in about ten large power plants. Through these measures, energy productivity increases by more than 90%, i.e. tapping the identified savings potential would contribute significantly to the national goal of doubling energy productivity by 2020. The CO2 emissions saved amount to 77 million tons in 2020 compared to the reference development. This represents a reduction of 9% of the emissions in 2008. The investments made in efficiency measures, the energy costs saved and the increased productivity lead to a conservative estimate of net employment growth of around 260,000 employees compared to the reference. Gross domestic product will increase by 0.9% in 2020 as a result of additional demand. Natural gas imports in 2020 will be reduced by 320 PJ of natural gas (10.6%) and crude oil imports by around 290 PJ of crude oil (6.5%). In monetary terms, this corresponds to savings of between 6 and 12 billion euros, depending on the future oil price. In total, energy costs of € 19 billion can be saved in 2020, with transport and households accounting for the largest share (40% and 35%, respectively). To tap these potentials, a set of different and ambitious political instruments is needed. The efficiency strategy considered here requires instruments tailored to the respective sector, which combine regulatory law, transparent information and labeling as well as additional funding for highly efficient technologies.
Pehnt, Martin et al., 2011
The climate protection and efficiency measures in the National Climate Initiative (NKI) in Germany not only lead to an immediate reduction of environmental impacts and energy imports, but also have many direct and, above all, indirect macroeconomic effects. Initially, the study identifies additional potentials for energy efficiency, primarily in the end customer sector, which need to be tapped for ambitious climate protection. According to this report, up to 24% of the final energy demand of 2009 can be saved by 2030, compared with a "frozen efficiency" scenario, in which no further efficiency measures are taken. Compared to a reference scenario that basically extrapolates past increases in efficiency, 9% of final energy consumption can be saved by 2030. Particularly high savings potential exists in the building-related fields of action as well as in the introduction of efficient cars. In a second step, the necessary investments and energy savings are determined. Compared to the reference, cumulative additional investment of € 300 billion is therefore required by 2030, which, however, pays for itself on account of the energy savings over the lifetime of the measures. More than a third of these investments are taken up by private households. Based on the investments and savings, the environmental economic model PANTA RHEI determines which economic effects could relate to exploiting this potential for Germany by the year 2030. The model concludes that, compared to the reference, which already includes efficiency gains, final energy savings of 11.7%, employment effects of 127,000 and a price-adjusted GDP increase of 0.85% can be achieved. The latter are mainly attributable to the high share of domestic added value and, in the long term, higher household disposable income. Another important factor is improved export opportunities for German companies in the field of energy efficiency. In addition, GHG emissions decrease by 14.8%. The exploitation of efficiency potentials should be promoted through policy instruments. Exploiting these potentials is predominantly economically viable. However, the different sectors and segments display different degrees of restraints and difficulties. Therefore, the respective sectors should continue to be addressed individually. In general, this requires a bundle of instruments of regulatory, market and implementation-oriented instruments, measures for information, motivation, qualification as well as for promotion and financing. When formulating efficiency policy, clarity and transparency should be taken into account at the same time. Continuity and predictability of politics are the most important prerequisites for successful market impulses. Finally, the report includes concrete proposals for new funding areas and innovative support mechanisms. These relate to building renovation, energy consulting, retail, waste heat, business parks, industrial cross-sectional technologies, waste and wastewater, zero-emission communities and several others.
Lehr, Ulrike et al., 2011
The paper presents results of the implementation of an efficiency strategy in Germany until 2020 which is focused on cost-effective measures. The efficiency measures are calculated in bottom-up models and translated into a top-down macro-economic model. The comparison to a business as usual simulation shows some economy-wide rebound effects of about 17% of the overall energy savings. Given that an efficiency strategy is a long-term strategy, this puts the results on the rather conservative side. The sum of the economy-wide net effects is positive. Gross production, GDP and its components consumption, investment and trade are higher in the efficiency scenario due to the efficiency measures over the whole simulation period (2009 – 2020). Obviously, higher production does not directly translate into higher value added, because it is partly imported and also increases imported inputs according to the German trade structure. A considerable share of the additional GDP stems from private consumption (18.3 billion Euros). The direct effect comes from consumption of energy efficient goods, but there is a large indirect effect from additional consumption due to energy savings. The reallocation of funds from energy expenditure to consumption leads to more employment in all sectors. Employment also rises in the construction sector and in production, adding to the consumption effect.
European Commission, 2016
This analysis shows that a higher level of energy efficiency in 2030 would have a positive impact on economic growth, employment, competitiveness, a strong impact on security of supply and the level of gas imports in particular. In the period 2021-2030, a target of 30 % energy efficiency would save €69.6 bn in fossil fuels import bills compared to a €4 274 bn cost under a 27 % energy efficiency target, would create between 395 000 and 435 000 jobs by 2030 on a net basis and would increase GDP by between 0.25 % and 0.4 % in the central scenarios. On the contrary, in the period 2021-2030 and with the discount rates used, a target of 30 % would lead to energy system costs that were 0.46 % (€9 bn) higher compared to 27 % target. However, in the long term, a 30 % energy efficiency target for 2030 would lead to energy system costs that are €9 bn lower compared to 27 % target in 2021-2050. SMEs are key actors for upscaling energy efficiency especially in households (70 % of energy efficiency improvement measures are carried out by SMEs, in particular in building renovation) and will benefit from increased business opportunities, as well as reduced energy bills resulting from reducing consumption. Although Member States may need to increase their spending in the short term to finance the up-front energy efficiency investments, in the long term they will benefit from a decrease in fuels import bills, energy consumption bills (e.g. of public buildings) and positive budget impacts due to higher employment and economic growth.
Kerr, Niall; Gouldson, Andy; Barrett, John, 2017
The rationale for energy efficiency policy can be framed in terms of a variety of different benefits. This paper considers how different benefits have been used within the overall rationale for energy efficient retrofit policy in different contexts. It posits that different rationales may be used for the same policy response, and that the form of rationale used may affect the design, delivery or the level of policy support, with different rationales making it easier to account for different results. Considering retrofit policy in the contexts of the UK, Germany, New Zealand and Ireland, the study characterises policy rationale in each case, assessing what the key perceived benefits have been, and whether they have changed over time. The analysis identifies some marked differences between cases with the recognition of benefits and the ensuing policy rationale resulting from a complex mix of political, social and economic influences. We find that recognition of multiple benefits may not equate with multiplied policy support, and instead it is more likely that different rationales will have relevance at different times, for different audiences. The findings highlight that, alongside evidence for policy, it is important to also consider how the overall rationale for policy is eventually framed.
Rosenow, Jan; Bayer, Edith, 2017
The economics of energy efficiency programmes have been subject to considerable academic debate lasting well over three decades now. This paper contributes to this debate by reviewing the costs and benefits of a specific type of policy instrument that recently gained significant traction in Europe – Energy Efficiency Obligations - EEOs. Following the introduction of the EU Energy Efficiency Directive in 2012 the number of EEOs in Europe has grown from five schemes to now 16 EEOs in operation or planned across the EU. There is an emerging body of evidence on the costs and benefits of Energy Efficiency Obligations covering a wider range of EU countries, which offers an opportunity to improve our understanding of the economics of Energy Efficiency Obligations. This paper draws on this new data and provides a) a comparative analysis of the costs and benefits of EEOs in a number of European countries, b) discusses the uncertainties and challenges around calculating the costs of Energy Efficiency Obligations, and c) provides a categorisation of the multiple benefits often overlooked in cost-benefit-analyses.
Teli; Dimitriou; James; Bahaj; Ellison; Waggot, 2016
Social housing retrofit is often seen as a way to contribute to carbon reductions as it typically encompasses large-scale interventions managed by one landlord. This work investigates the carbon savings potential of a deep retrofit in a local authority owned 107-flat tower block, taking into account the tenants’ pre-retrofit heating strategies. Prior to the retrofit, temperature and relative humidity monitoring have been undertaken in 18 flats for 35 days. The measurements are then used to develop occupant heating profiles in the 18 homes. Dynamic thermal simulation of the flats pre- and post-retrofit using the identified user heating profiles highlights that for these fuel poverty-constrained flats, the estimated carbon savings of retrofit will be typically half those predicted using standard rules for temperatures in living spaces. For practical application, the findings presented in this paper demonstrate the impact of fuel poverty on the expected benefits from social housing retrofit schemes, providing information relevant to multiple stakeholders such as the building industry: The study highlights the need to use empirical data in building energy modelling, as typical conditions could be far from representative in social homes. In addition, policy makers and social landlords should consider that targets for CO2 reduction may not be achieved through retrofitting, but the social impact could be much greater and more critical than assumed. The findings under this work help to direct incentives for retrofit schemes towards the social and health benefits achieved.
Barbier, Edward, 2014
Climate change mitigation policies include a wide range of actions, including efforts to reduce greenhouse gas (GHG) emissions from fossil fuel combustion, energy efficiency and end-use innovations, and reducing carbon emissions through avoided deforestation. Such policies can affect poverty in developing countries either directly or indirectly. Direct impacts on poverty include payments for avoided deforestation that affect the livelihoods of the poor, reduced GHG emissions that also produce co-benefits of improved air quality and health, and clean energy and energy efficiency effects on energy poverty. Indirect impacts on the poor in developing countries occur through the changes in trade, economic growth, and other economy-wide effects. To date, there is a lack of systematic or comprehensive analyses of these direct and indirect impacts of mitigation policies on the poor. Although such policies may benefit the poor, some actions may worsen poverty and hinder its alleviation. This suggests that a more comprehensive approach should be employed in analysing how mitigation policies affect the poor in developing countries, and in particular, in assessing how policy design and implementation can influence the potential trade-offs between the positive and negative impacts on poverty alleviation.
Rosenow, Jan;Platt, Reg; Flanagan, Brooke, 2013
Energy efficiency obligations (or white certificates) are increasingly used to reduce carbon emissions. While the energy efficiency obligations were originally intended as carbon reduction and not fuel poverty policies, due to recognition of the potential for regressive outcomes they often include provisions for vulnerable and low-income customers. Intuitively, reducing carbon emissions and alleviating fuel poverty seem to be two sides of the same coin. There are, however, considerable tensions between the two when addressed through energy efficiency obligations, particularly arising from the potentially regressive impacts of rising energy prices resulting from such obligations, but also the complexity of targeting fuel poor households and the implications for deliverability. Despite those tensions, the UK government decided to use energy efficiency obligations, the supplier obligation, as the main policy for reducing fuel poverty. In light of the proposals, this paper provides an analysis of the main tensions between carbon reduction and fuel poverty alleviation within energy efficiency obligations, outlines the fuel poverty provisions of the British Supplier Obligation, assesses its rules for identifying the fuel poor, and provides a critical analysis of the planned policy changes. Based on this analysis, alternative approaches to targeting fuel poverty within future supplier obligations are proposed.
Ürge-Vorsatz, Diana; Herrero, Sergio Tirado, 2011
Even though energy poverty alleviation and climate change mitigation are inextricably linked policy goals, they have remained as relatively disconnected fields of research inquiry and policy development. Acknowledging this gap, this paper explores the mainstream academic and policy literatures to provide a taxonomy of interactions and identify synergies and trade-offs between them. The most important trade-off identified is the potential increase in energy poverty levels as a result of strong climate change action if the internalisation of the external costs of carbon emissions is not offset by efficiency gains. The most significant synergy is found in deep energy efficiency in buildings. The paper argues that neither of the two problems – deep reductions in GHG emissions by mid-century, and energy poverty eradication – is likely to be solved fully on their own merit, while joining the two policy goals may provide a very solid case for deep efficiency improvements. Thus, the paper calls for a strong integration of these two policy goals (plus other key related benefits like energy security or employment), in order to provide sufficient policy motivation to mobilise a wide-scale implementation of deep energy efficiency standards.
Wilkinson, Paul; Smith, Kirk; Beevers, Sean; Tonne, Cathryn; Oreszczyn, Tadj, 2007
Since the last decades of the 19th century, technological advances have brought substantial improvements in the efficiency with which energy can be exploited to service human needs. That trend has been accompanied by an equally notable increase in energy consumption, which strongly correlates with socioeconomic development. Nonetheless, feasible gains in the efficiency and technology of energy use in towns and cities and in homes have the potential to contribute to the mitigation of greenhouse-gas emissions, and to improve health, for example, through protection against temperature-related morbidity and mortality, and the alleviation of fuel poverty. A shift towards renewable energy production would also put increasing focus on cleaner energy carriers, especially electricity, but possibly also hydrogen, which would have benefits to urban air quality. In low-income countries, a vital priority remains the dissemination of affordable technology to alleviate the burdens of indoor air pollution and other health effects in individuals obliged to rely on biomass fuels for cooking and heating, as well as the improvement in access to electricity, which would have many benefits to health and wellbeing.
Liu, Hongxun; Lin, Boqiang, 2017
As buildings are constructed to be more energy-efficient and environmental friendly, the building construction industry, which is a basic and leading industry of the national economy development, has become one of the key sectors for energy conservation and emission reduction in China. This paper aims at quantifying both inter-factor and inter-energy substitution for China's building construction industry and investigates the main driving forces behind energy efficiency changes as well as the CO2 abatement effect of a uniform carbon tax in this sector. The model is established employing provincial pooled data over 2003-2012 in China by regions; hence, results between different regions are compared. The main findings indicate that a) energy and non-energy are substitutes whereas individual energy inputs are complementary in China's building construction industry. The substitution effect varies across regions due to different factor endowments and marketisation levels. b) Energy price increase and construction scale expansion leads to energy efficiency improvement while substitution and technology present negative influences on energy efficiency. c) Approximately 3 % of the CO2 emissions in China's building construction industry can be reduced by carbon taxation based on the integrated own- and cross-price elasticities of each type of energy.
Gamtessa, Samuel, 2009
This study analyses the roles that energy and other input prices play in reducing the energy intensity of manufacturing industries in Canada. It finds that the average energy price elasticity of energy intensity is about −0.39 for the manufacturing sector, with a 95 percent CI of −0.43 to −0.34. The calculated average elasticities of substitutions indicate that both capital and labour are complementary with energy while both materials and services inputs are substitutes. The industry-specific estimates, however, reveal widespread differences in terms of both the magnitude of the elasticities and the patterns of the relationships among the inputs.
Seyit Ali Dastan; Orhun Selcuk, 2016
Turkey has changed the essentials of its energy markets more than a decade ago. It was mainly a transition from a state-led model to a free-market one. Although some level of progress is observable; security of supply, particularly in times of short term supply disruption had not been widely tested. Harsh winter conditions set a litmus test for Turkish energy markets. Based on this test, this paper provides an analysis of to what extent Turkey is vulnerable to the risks of energy supply security; and discusses possible measures to relieve future supply disruption risks. Energy policy-making should consider the fact that electricity and gas markets are highly intertwined in Turkey; and security of supply measures could have cross-market implications.
Ingrid Nappi-Coulet; Aurélien Décamps, 2013
The purpose of this paper is to investigate whether energy efficiency is capitalized in rent and asset value on corporate real estate portfolio. This approach contributes to the research on green buildings by using hedonic regression modelling on a portfolio of existing buildings in the French corporate real estate context. The corporate real estate portfolio under investigation is composed of industrial, commercial and office buildings. The analysis reveals two main results: energy efficiency is more capitalized in rent than in asset value and this relationship differs regarding buildings' type. The model suggests that premium for energy efficiency is stronger for commercial and office buildings than for industrial buildings.
Dongsuk Kang; Duk Hee Lee, 2016
It is crucial for the industrial sector to achieve the multifaceted or composite efficiency of energy savings and the minimization of environmental wastes in the present circumstances of worsening global warming and resource depletion. Furthermore, the positive effects of composite energy efficiency on sustainable growth could lead to practical questions for the industrial sector, to ensure that it consistently uses its energy and resources effectively. The study examines the positive contribution of this composite efficiency to the growth of final outputs in this sector, using the two-stage method of Malmquist efficiency analysis (MEA) and the linear regression of panel data from about 154 Korean industries from 2010 to 2012. The results found that composite efficiency and changes in the production factors have positive impacts on industrial productivity. In particular, relative efficiency has a positive influence on productivity, but technical efficiency does not have a significant impact. The findings suggest that industries may voluntarily make efforts to improve their use of energy resources, but they also need to invest in energy technologies and develop efficient production structures, with the help of public policies.
J.M. Clancy; F. Gaffney; J.P. Deane; J. Curtis; B.P. Ógallachóir, 2015
Several electricity systems supply significant proportions of electricity from weather dependent renewable sources. Different quantification methods have estimated the associated historical savings of fuel and CO2 emissions. Primary energy equivalent and econometric methods do not readily quantify factors like operational changes to fossil fuel generation arising from the integration of renewable energy. Dispatch models can overcome these limitations, but are generally applied to future scenarios. A dispatch model is applied to ex-post data for the 2012 All Island system in Ireland. Renewable electricity accounted for 20.4 % of total generation, 15.8 % from wind. The results show renewable generation averted a 26 % increase in fossil fuels (valued at €297 million) and avoided an 18 % increase in CO2 emissions (2.85 MtCO2), as compared to the simulated 2012 system without renewable generation. Each MWh of renewable electricity avoided on average 0.43 tCO2 with wind avoiding 0.46 tCO2/MWh. Additional renewable related balancing requirements had minor impacts on fossil fuel generation efficiency; CO2 production rates increased by <2%. Policy measures to alleviate network congestion, increase system flexibility and increase financial penalties on emissions can increase savings from renewable generation.
Akbi Amine; Noureddine Yassaa; Rachid Boudjema; Boualem Aliouat, 2015
The high generation cost of renewable energy is one of the main barriers to their development and large-scale deployment. This is the case of Algeria, in which despite its significant renewable energy potential, more than 96% of electricity is generated with gas turbines to cover increasing national demand. This choice is also driven by the important natural gas reservoirs in Algeria in addition to the low cost of electricity that is generated by this fossil fuel. The purpose of this paper is to investigate the cost of electricity production from a renewable source, substituting conventional fossil fuel processes. An economic value can be captured through the trade of greenhouse gas emissions and the reallocation of fuel savings to export. This approach is particularly well supported considering the growing local demand for natural gas, threatening the country’s natural gas export capacity on which the economy of Algeria is tightly dependent. The conventional evaluation of the generation cost of electricity, using the Levelized Cost Of Electricity (LCOE) and the cost structure of electricity production is selected for comparing the cost of electricity generation from gas power and photovoltaic plants. The environmental benefits and their financial valuation mechanisms are discussed. To illustrate all these parameters, a case study of a photovoltaic plant with a capacity of one megawatt (1 MW) installed in Algeria is presented and the potential benefits in terms of fuel savings and CO2 equivalent emission is assessed.
Margarita Ortega-Izquierdo; Pablo del Río, 2016
The European Union is committed to the deployment of electricity from renewable energy sources (RES-E). However, the large and recent increase in the RES-E penetration has raised the concern of policy makers in the EU Member States about the costs of public promotion of RES-E. Nevertheless, an economic analysis of the RES-E contribution should include the policy costs of RES-E deployment, but also its benefits. This would contribute to support the debate on renewable energy policy targets in the EU and its MS. The aim of this paper is to close this gap in the literature with a novel methodology and put those policy costs into perspective by evaluating some of the most relevant benefits of RES-E deployment. The results show that RES deployment due to RES-E support has led to two main benefits (lower CO2 emissions and fossil fuel savings), which are slightly below those costs. Behind this broader picture, significant country and technology differences emerge. The benefits are above policy costs for hydro and wind, and below those costs for bioenergy, solar photovolatics and other RES-E.
Helmut, Berger; Eisenhut, Thomas; Polak, Sascha; Hinterberger, Robert, 2011
Due to increased use of renewable energy resouces modells like DR are needed. DR is cheaper than new peak load plants. Technical and economic potential in Austria available. But no buisness modell. Policy framework is suitable for DR.
von Roon, Serafin; Gobmaier, Thomas, 2010
The concept of load management in industry is well known in Germany and has been used for decades. With Demand Response (DR), this performance reserve can be bundled from several companies. This makes plannable and short-term service delivery possible. This approach goes beyond the optimization of individual operations and is in its infancy in Germany. In the US, however, the Demand Response business model has been successfully practiced for several years. The technical potential in terms of suitable consumers exists in Germany. Due to the increasing feed-in of renewable energies, the conventional power plant park has to drive higher gradients. Forecast errors have to be compensated in the short term. There are increasingly grid bottlenecks, especially if the designated grid expansion continues to be so slow. However, the increasing feed-in of renewable energies will further improve the basic conditions for DR. In the field of billing and transaction costs, there are still barriers, for which, however, simple solutions can be identified. It is recommended that, as a first step, to bundle large consumers of preferably few industrial companies. This performance should initially be marketed as a minute reserve. This should be done in close consultation with the stakeholders, such as the transmission and distribution system operators and the energy supply companies. As a result, the measure‘s feasibility and cost-effectiveness can be demonstrated. A scientific accompanying research should quantify the energy-economic effects and help with the standardization. A targeted information transfer helps to counteract reservations and to refute prejudices so that the existing potential in Germany can be realized.
ETG-Task Force Demand Side Management, 2012
In the future, fluctuating feed-in of renewable energies will increasingly lead to large load fluctuations, which, for reasons of system stability, may necessitate large-scale shutdowns of plants or the connection of standard power plants. In order to fully integrate renewable energy, new technical and economic measures are needed to make the energy supply system more flexible. These include grid expansion, flexible power plants, energy storage and controllable loads (DSI - Demand Side Integration). The study presents the potential of flexible load management to shift available capacities, to minimize load fluctuations, to reduce peak loads and to avoid electricity over- or under-production caused by renewable energies. It further shows that Germany already has a theoretical DSI performance potential of about 25 GW (2010), which can double by 2030. However, according to the simulations and analyses, the technical one-day DSI performance potential is 8.5 GW (2010). About half of this is accounted for by the household sector and the trade, commerce and services sector, which corresponds to the power requirement of around 4 million households. However, today DSI is practically applied only in the industry, while the load shifting potential in private households and in the trade, commerce and services area is still hardly used. In order to exploit the considerable and further growing potential for load shifting, suitable technical and economic conditions must be created. Therefore, the study recommends optimising the equipment and facilities as well as the expansion of an information and communication infrastructure, the efficient provision of households with smart meters for variable tariffs with specific market incentives, as well as new investments in industry under economic conditions.
Element Energy Ltd., 2012
The expected increase in electricity demands over the coming years, combined with significant changes to the generation mix will result in challenges to maintaining secure, affordable supplies. The UK‟s electricity system is currently sized to meet peak demands (that only occur infrequently), which leads to generating plant and transmission and distribution networks being under-utilised for much of the time. Demand side response (DSR) is a broad term that refers to a range of mechanisms designed to reduce peak demands on the electricity system, potentially delivering a number of benefits including reduced cost of electricity supply and improved efficiency of investment in transmission and distribution networks. The study explores the potential for DSR in the non-domestic sector. The principal aims of this research are first to quantify the technical potential for DSR in non-domestic buildings, and second to assess the barriers to further uptake of DSR and identify enabling mechanisms required for the potential to be realised. The potential for DSR measures to reduce peak demands depends on the flexibility of electricity end uses, i.e. the extent to which demand can be reduced or delayed in response to price signals for example. The greatest flexibility is typically associated with demands related to loads with storage or in-built inertia (e.g. hot water, heating, air conditioning). Flexible loads may be interrupted for a period with minimal or no impact on building occupiers. On the other hand, some loads (e.g. computing, lighting) exhibit very limited flexibility and are therefore unsuited to DSR measures. The study estimates that non-domestic buildings (excluding industry) contribute approximately 15GW (ca.30%) to winter peak demands on Great Britain’s national grid. The retail, education and commercial offices sectors contribute most to peak demands, with a relatively even contribution from the remaining sub-sectors. This suggests that engagement across all building types will be required to fully exploit the DSR potential. Assessment of the technical potential suggests that DSR measures could reduce winter peak demands due to non-domestic buildings from 1 - 4.5GW (or 0.6 - 2GW if no flexibility can be provided from lighting). Engagement with DSR in non-domestic buildings is currently very low, due to a combination of barriers including lack of focus on energy issues, lack of awareness of DSR measures, concerns of negative impacts on service levels and an unclear economic case for action. Consumers in this sector are unlikely to accept any impact on service levels to accommodate DSR measures. It is likely that a range of enabling mechanisms will be required to support greater uptake of DSR in non-domestic buildings. Measures are required to increase confidence in and awareness of DSR, to reduce complexity of DSR arrangements and to demonstrate the economic case.
Wei, Max; Patadia, Shana; Kammen, Daniel M., 2010
The study presents an analytical job creation model for the US power sector from 2009 to 2030. The model synthesizes data from 15 job studies covering renewable energy (RE), energy efficiency (EE), carbon capture and storage (CCS) and nuclear power. The paper employs a consistent methodology of normalizing job data to average employment per unit energy produced over plant lifetime. Job losses in the coal and natural gas industry are modeled to project net employment impacts. Benefits and drawbacks of the methodology are assessed and the resulting model is used for job projections under various renewable portfolio standards (RPS), energy efficiency, and low carbon energy scenarios. The study finds that all non-fossil fuel technologies (RE, EE, low carbon) create more jobs per unit energy than coal and natural gas. Aggressive EE measures combined with a 30% RPS target in 2030 can generate over 4 million full-time-equivalent job-years by 2030 while increasing nuclear power to 25% and CCS to 10% of overall generation in 2030 can yield an additional 500,000 job-years.
Moreno, Blanca; Menéndez, Ana J.L., 2008
Several changes are taking place in the energy sector as a result of the development of renewable energies and the implementation of new clean technologies. The use of renewable energies offers the opportunity to diminish energy dependence, reduce the emission of CO2 and create new employment. The involvement of local agents is highly important for the future development in this field, especially in regions whose industrial mix was based on traditional energy sources. Since this is the case in the region of Asturias (Spain), this article focuses on the expectations of employment generated by renewable energies in Asturias during the period 2006–2010. More specifically it proposes ratios of job per unit of installed energy power based on the available regional information in order to forecast energy employment in Asturias. With this aim three alternative scenarios are considered according to a range of possible future renewable energy pathways, leading to baseline, optimistic and pessimistic forecasts. Once these forecasts are computed, the emergent professional profiles and required skills related to the new jobs generated in the installation, operation and maintenance of the different renewable energy systems are analysed.
Chernick, Paul; Plunkett, John J., 2014
Increased energy efficiency reduces load on the gas or electric system, the amount of energy that must be purchased or produced to serve customers, and participants’ energy bills directly. Where energy is supplied from competitive markets, energy efficiency further reduces the price of that energy, indirectly reducing the energy bills of all consumers when savings are passed on to ratepayers. Those price reductions are typically vanishingly small when expressed in dollars per MWh or per MMBtu of total consumption. However when expressed in dollars per MWh or MMBtu saved, the cost reductions can be substantial, even rivaling the direct avoided costs. In the utility industry, this kind of price suppression has come to be known as Demand Reduction Induced Price Effect (DRIPE). The paper describes the basis for including DRIPE as a benefit in program screening. It also describes several categories of DRIPE and approaches for quantifying price reduction benefits. Since electric efficiency generally reduces gas use in generation, and lower gas prices produce lower electric market prices in restructured markets, a number of cross-fuel DRIPE effects are identifiable. For each category of DRIPE, the paper describes the situations in which DRIPE would exist, how DRIPE coefficients can be estimated from historical data or modelling, and how DRIPE should be adjusted to reflect existing supply arrangements and the decay of the DRIPE effect due to demand- and supply-market responses.
Ranjan, Ashish; Hughes, Larry, 2014
In order to maintain or improve a jurisdiction's energy security, its energy system needs to meet the demands of its energy services with affordable and preferably environmentally acceptable flows of energy. Since diversity can be a factor in the long-term survival of a system, having a diversity of energy flows is frequently treated as a proxy for energy security. The paper examines the relationship between energy security and the diversity of an energy system's energy flows using a set of energy security indicators and the Shannon-Wiener diversity index. Although diversity may be considered necessary for maintaining and improving energy security, the quantitative analysis of the relationship shows that an energy flow considered diverse need not be secure and that a secure energy flow need not be considered diverse. Examples of this relationship are included. These findings can prove useful to policy makers and energy analysts when developing transition strategies for a jurisdiction's energy system.
Lo, Liang-huey, 2011
In energy policy, diversity plays important roles in energy supply security, efficiency of energy use, and adaptability of energy system. Many of the trends reflect the increasing significance of renewable energy relative to conventional energy sources, and it will increase diversity of energy supply. It is also beneficial for a system both through extending choice and increasing competition. However, changing the structure of energy sources and increasing energy diversity for strategic system security can be difficult for those countries which highly depend on imported energy. The paper considers that the diverse distributions of energy flows in a system can open up more possibilities and channels for cooperation and interdependency in energy utilization. Not only diversity of supply side, but also diversity of demand side is critical for an energy system because increasing variance and balance of the energy consumers enhances efficiency and adaptability. In this paper, a quantitative analysis method to explore both of supply and demand sides of energy system structure for four Asian countries, Japan, Korea, Taiwan and Indonesia based on the OECD data set from 1987 to 2006 is developed. Energy systems of Japan, Korea, and Taiwan are short of indigenous energy sources and highly dependent on imported energy sources except Indonesia. Indonesia’s indigenous energy source reserves support national economy as a source of energy, industrial raw material and export goods. Additionally, Indonesia’s renewable energy can serve as a source of energy to support energy use. Furthermore, not only the diversity temporal patterns of national energy supply and use are compared, but also the industry sector diversity temporal patterns of energy use of these countries.
Biresselioglu, Mhemet Efe; Yelkenci, Tezer; Ozyorulmaz, Evrim, Yumurtaci, Isik Özge, 2017
Along with the changing concerns over energy security in the last decades, it is important to investigate the perception of different segments of society in order to understand how they view the challenges and opportunities in contemporary energy issues. Being one of the most dynamic energy economies globally, Turkey is continuously increasing both its electricity generation and consumption. Since the industrial sector accounts for higher ratios in this growth, this article explores the perception and awareness within Turkish industrial companies related to energy security, Turkish energy policy, and compatibility of corporate strategy with governmental energy and industrial policies. The study is based on the exploration of nine suppositions relating to the following issues: importance of energy costs in supply chain management, energy efficiency priority, effectiveness of legal infrastructure for energy efficiency, import dependency awareness, renewable energy awareness, the compatibility of energy strategy, climate change awareness, the level of Kyoto Protocol awareness, and compatibility between firm-specific targets and strategy papers. The study tests these suppositions with a survey based on the existing academic literature and three strategy documents related to industrial and energy policies. A survey has been distributed to the top 500 Turkish industrial companies listed in ISO500. The results show that six suppositions are supported, one is unsupported, and two is neither supported nor unsupported.
Glynn, James, et al., 2017
Ireland imports 88 % of its energy requirements. Oil makes up 59 % of total final energy consumption (TFC). Import dependency, low fuel diversity and volatile prices leave Ireland vulnerable in terms of energy security. This work models energy security scenarios for Ireland using long term macroeconomic forecasts to 2050, with oil production and price scenarios from the International Monetary Fund, within the Irish TIMES energy systems model. The analysis focuses on developing a least cost optimum energy system for Ireland under scenarios of constrained oil supply (0.8 % annual import growth, and 2 % annual import decline) and subsequent sustained long term price shocks to oil and gas imports. The results point to gas becoming the dominant fuel source for Ireland, at 54 % total final energy consumption in 2020, supplanting oil from reference projections of 57 % to 10.8 % TFC. In 2012, the cost of net oil imports stood at €3.6 billion (2.26 % GDP). The modelled high oil and gas price scenarios show an additional annual cost in comparison to a reference of between €2.9bn and €7.5bn by 2020 (1.9 – 4.9 % of GDP) to choose to develop a least cost energy system. Investment and ramifications for energy security are discussed.
Golusin, Mirjana, 2013
The main aim of this paper is to review the current state of energy systems in the Western Balkans countries. The paper outlines the individual parameters relating to energy development, determines the current state of the achieved level of sustainable energy development as a whole and defines possible strategic directions for energy development in the region. The paper also examines the possibility for implementation of the adopted EU target of 20 % RES energy production. The main characteristics in the region are high energy consumption, high values of carbon emission, fossil fuels import dependency, constant production and electric energy supply, and high potential but minimal RES energy production. Further development of a regulation framework and market liberalisation are basic preconditions of demanding energy reform in all countries. Increasing energy is the second energy development priority. The third long term strategic goal is increasing the amount of the energy obtained from hydro and transition to clean coal technologies. Intensifying RES production is currently the fourth strategic priority. The analysis shows that production of energy from wind is priority for the region, but currently it is constrained by too great investment requirements for developing countries.
van Moekerk, Mike; Crijns-Graus, Wina, 2016
For many countries, the inflow of energy is essential to keep economies running. Oil is typically considered to be the most critical fuel as an input for the petro-chemical and transportation sector and due to limited and less spread reserves. In the study external oil supply risks are assessed for the period up to 2035 for the European Union, United States, China, Japan and India (being the five largest importers of oil in the world), based on their current supplier portfolio. Scenarios are constructed for several climate policy and oil-supply projections. It is found that risks increase strongly, when stringent climate policies are prevented from being implemented, especially when a peak in oil supply is taken into account, resulting in major oil supply-disruptions. China faces the lowest oil supply risks in most scenarios but the trends of India, China and US converge over time due to increasing import dependency of China and India. Japan faces high risks since the country has the highest oil import dependency combined with a low oil import diversification. For the EU, all figures are strongly influenced by Russia, accounting for 32% of total imports, and to a lesser extent Norway (11%), with high overall risks.
Thepkhun, Panida, 2013
Climate change and CO2 mitigation have become increasingly important environmental issues. Recently Thailand has proposed policies on GHG mitigation such as Thailand’s Nationally Appropriate Mitigation Action (NAMA), which aims at GHG mitigation in the energy sector. This study used a computable general equilibrium (CGE) model to analyse GHG mitigation measures under emission trading and carbon capture and storage (CCS) technology in Thailand. Results show that the international free emission trading policy can drive more GHG reduction by decreasing energy supply and demand, and increasing prices of emissions. The CCS technologies would balance emission reduction but they would reduce energy efficiency improvement and renewable energy utilization. In the energy security aspect, the policy options in this study would improve energy security, energy import dependency, and co-benefits of GHG mitigation in forms of improving local air quality. Results are also helpful to GHG mitigation policy in developing countries.
International Energy Agency (IEA), 2016
Global energy intensity – the amount of energy used per unit of gross domestic product (GDP) – improved by 1.8% in 2015, surpassing the 1.5% gain seen in 2014. However, as IEA analysis shows, annual energy intensity improvements need to rise immediately to at least 2.6% in a trajectory consistent with global climate goals. Energy intensity did not decline uniformly across the globe. Gains in 2015 were higher in emerging and developing countries, at 2.5%, than industrialised countries, at 2%. Energy efficiency levels in IEA member countries improved, on average, by 14% between 2000 and 2015. The energy savings reduced total energy expenditure by 540 billion USD in 2015, mostly in buildings and industry. In particular, China’s progress on energy efficiency is now at a scale where it is making a significant mark on global energy markets. However, Chinese energy intensity levels in 2015 are still 50% higher than the OECD average. Government policy has been fundamental to improving energy efficiency. The growth of mandatory policies such as standards, in terms of both their range of coverage and the performance levels they require, is having a material effect on energy demand. In 2015, 30% of final energy demand globally was covered by mandatory efficiency policies, up from 11% in 2000. Progress has been fastest in residential buildings, where expansion of building energy codes and tightening of minimum energy performance standards (MEPS) on heating and cooling equipment are driving improvements. Policies to improve energy efficiency not only save energy, they produce multiple other benefits such as enhanced energy security and improved air quality. Policy has also protected the efficiency market from declining energy prices. Consumer prices have remained relatively steady or fallen much less than headline prices for energy commodities. In parallel, fuel economy standards applied in many countries are driving efficiency gains in new vehicles. In the residential sector, energy efficiency investment in buildings in OECD countries increased by 9% in 2015. Efficiency actions in buildings appear to be driven less by price and more by the implementation of policy instruments such as MEPS. As policies have expanded, so has investment in energy efficiency. The IEA estimates that global investment in energy efficiency was USD 221 billion in 2015, an increase of 6% from 2014. Investment in efficiency was two-thirds greater than investment in conventional power generation in 2015. Evidence indicates that the energy efficiency market will grow in the coming years. Mergers and acquisitions of energy efficiency services firms have been increasing, with utilities, technology providers and energy equipment manufacturers all stepping into the market. Finance for dedicated energy efficiency products and services is also expanding. Finally, energy efficiency is the only energy resource possessed by all countries. Global collaboration and knowledge exchange will be essential elements of strengthening action on energy efficiency in all countries.
Destatis, 2017
Increasing social and political awareness of environmental protection and resource conservation is also creating growing demand for and production of goods, constructions and services for environmental protection. In 2015, German companies generated €66.0 billion in sales of goods, construction and services for environmental protection. Compared to the previous year, sales increased by 0.9% or 0.6 billion euros. Research into the intended use of the environmental goods and services produced shows that more than half of the environmental protection sales generated in 2015 were accounted for by climate protection. Climate protection is provided by measures to prevent, eliminate or mitigate greenhouse gas emissions, to use renewable energies, to save energy and to increase energy efficiency. With products and services to improve energy efficiency alone, 16.3 billion euros were generated in 2015. Compared to climate protection, the classical environmental areas such as air pollution control, wastewater management, noise protection or protection of species are less strong in their economic importance. However, noise control is the fastest growing environmental area in 2015. The largest amount of environmental related revenues was generated in the manufacturing sector, at € 54.1 billion. In terms of environmental protection, the most important economic sectors were machine construction (24.6 billion euros), the manufacture of motor vehicles (5.0 billion euros), and the manufacture of rubber and plastic products (4.4 billion euros) and the manufacture of electrical equipment (3.6 billion euros). The construction industry generated €6.3 billion in environmental protection services. Less important for the environmental protection industry is the service sector with environmental revenues of 5.2 billion euros. If the generated sales for environmental protection are differentiated by goods and services, in 2015 goods in connection with climate protection had the highest sales. The highest sales of goods and services for environmental protection were achieved in the areas of energy-efficient drive and control technology (8.6 billion euros) and onshore wind power (7.4 billion euros). Also of high relevance are the sales of goods, construction and services in connection with the catalytic emission control (4.4 billion euros), sewerage systems (4.2 billion euros), the thermal insulation of buildings (4.1 billion euros) and photovoltaic (€ 3.2 billion). Regarding foreign trade, more than half (62.7%) of environmental protection sales were generated domestically, at 41.4 billion euros. Only 24.6 billion euros were spent on the export. Since 2013, it has been observed that environmental protection in Germany is increasingly being generated through domestic sales of goods and services. Regarding employment, 259,203 employees worked for environmental protection in the companies, corporations and facilities covered in this investigation. More than two-thirds of environmental protection workers (174,408) worked in manufacturing facilities. The construction industry employed 45,455 people and the service sector 37,194 workers.
Klessmann, Corinna et al., 2011
This article evaluates the status of current RES deployment, policies and barriers in the EU-27 member states and compares it to the required to meet the 2020 targets. The evaluation relies strongly on the quantitative deployment status and policy effectiveness indicators. European RES deployment and policy has progressed strongly in recent years, but the growth here has been mainly driven by effective policies in a small or medium number of top runner countries. Across Europe, the highest average policy effectiveness over six years was reached for onshore wind (4.2%), biofuels (3.6%) and biomass electricity (2.7%), while in the heat sector, all technologies score below 2%. Comparing the recent progress to the required growth for meeting the 2020 target, it appears that some countries largely exceed the interim targets of the RES Directive 2009/28/EC. Despite this, Europe will need additional policy effort to reach the 2020 target. Critical success factors include implementing effective and efficient policies that attract sufficient investments, reducing administrative and grid related barriers, especially in currently less advanced countries, upgrading the power grid infrastructure, dismantling financial barriers in the heat sector, realising sustainability standards for biomass, and lowering energy demand through increased energy efficiency efforts.
Fais, Birgit; Neil Strachan, Nagore Sabio, 2016
The paper evaluates the critical contribution of the industry sector to long-term decarbonisation, efficiency and renewable energy policy targets. Its methodological novelty is the incorporation of a process-oriented modelling approach based on a comprehensive technology database for the industry sector in a national energy system model for the UK (UKTM), allowing quantification of the role of both decarbonisation of upstream energy vectors and of mitigation options in the industrial sub-categories. This enhanced model is then applied in a comparative policy scenario analysis that explores various target dimensions on emission mitigation, renewable energy and energy efficiency at both national and European level. The results show that ambitious emission cuts in the industry sector of up to 77% until 2050 compared to 2010 can be achieved. Moreover, with a reduction in industrial energy demand of up to 31% between 2010 and 2050, the sector is essential for achieving the overall efficiency commitments. The industry sector also makes a moderate contribution to the expansion of renewable energies mostly through the use of biomass for low-temperature heating services. However, additional sub-targets on renewable sources and energy efficiency need to be assessed critically, as they can significantly distort the cost-efficiency of the long-term mitigation pathway.
Momoe Kakada, Tsuyoshi Fujita, 2013
Under the pressures of rapid industrialisation and urbanization, many Asian countries are facing the challenge of reducing air pollution and CO2 emissions simultaneously while maintaining their economic growth. Under such a circumstance, a growing attention is focused on successful implementation of co-benefit policies that are designed to reduce both air pollutants and CO2 emissions. However, the concept of co-benefit policies must be developed further in order to identify its quantitative and qualitative validity, which can be assessed using a reliable methodology for the estimation of co-benefits and through clarification of the importance of this approach for stakeholders in urban environmental policy-making. Based on a systematic review of co-benefit research and air pollution control policies in Japan, the local air pollution control policy in Kawasaki City, one of the industrial centers of Japan, is investigated. The policies have contributed both to the sharp decline of atmospheric sulfur dioxide (SO2) levels and to energy efficiency improvements in local industries. The study’s results suggest that preventive actions and local-scale compliance enforcement tools (that are uniquely designed and act as a form of agreement between government and individual firms) could contribute significantly to successful implementation of co-benefit policies in the long-term. A discussion of linkages between low-carbon technology innovations and policy designs that could further nurture co-benefits is also provided.
Alvarez-Herranz, Agustin et al., 2017
The study analyses the relationship between economic growth and environmental pollution. Specifically, it investigates the presence of an environmental Kuznets curve (EKC) in 17 OECD countries over the period of 1990–2012. The results confirm the existence of an N-shaped EKC relationship between income and environmental degradation. The study offers a novel methodological contribution that makes it possible to explain the environmental pollution process through the analysis of low-carbon technologies. This demonstrates how income levels affect energy consumption and how higher energy demand leads to a larger share of fossil sources in the energy mix and, thus, increased greenhouse gas (GHG) emissions. The effect on per capita GHG emissions is explored in a model containing a dampening variable that moderates the relationship between energy consumption and income. This empirical evidence helps to explain the interaction between energy regulation, economic growth and carbon emissions. This study also confirms the positive effect that energy innovation process exerts on environmental pollution. Finally, it is demonstrated that renewable energy sources help to improve air quality.
Sato, Masahiro et al., 2017
The paper investigates energy resilience of countries by quantifying the supplier diversification of both direct and embodied energy import. In particular, two approaches to diversify a country's supplier portfolio are quantified: by lowering the dependency on each supplier (portfolio diversification) and by having embodied energy suppliers that are different from its direct energy suppliers (portfolio differentiation). The study examines possibilities for strategic utilisation of embodied energy trade to compensate for low diversity of direct energy trade for three types of fossil resources: coal, oil, and gas. One of the findings is that the diversity of embodied energy import is much greater than that of direct energy import. Of the three energy resources, coal enables countries to adopt portfolio diversification and portfolio differentiation more than gas and oil. The results suggest embodied energy can be considered as a transfer of energy resources across national borders that can directly benefit from the diversity of the world energy production by “skipping” the limited diversity of the world energy export.
Chalvatzis, Konstantinos; Ioannidis, Alexis, 2017
The study evaluates energy supply security in all EU countries. For the first time the proxy indicators for diversity and concentration Shannon Wiener index and Herfindahl-Hirschman index and dependence metrics are used for the detailed primary energy fuel mix of all EU member states. The geographic coverage of this work allows for useful comparisons between countries and for a means of benchmarking against the indices. Overall, it is found that energy supply diversity in the EU has been significantly improved since 1990 by 14.2% (SWI) and 22.6% (HHI). The study demonstrates the interrelations between dependence and diversity and the role of renewables on dependence and diversity. Renewable energy, particularly wind, solar and biomass has been the main driver for diversity growth and has a positive contribution to indigenous energy use; thus reducing energy import dependence. It is argued that alongside renewable energy a wide range of factors exists contributing to energy dependence and that renewable energy has had a positive contribution to almost all EU28 country’s diversity.
Pollitt, Hector; Alexandri, Eva; Anagnostopoulos, Filippos; De Rose, Antonio; Farhangi, Cyrus; Hoste, Thijs; Markannen, Sanna; Theillard, Perrine; Vergez, Coralie; Voogt, Monique, 2017
This study presents a comprehensive assessment of the macro-level and sectoral impacts of energy efficiency policies. It is a first attempt to apply this framework to make a comprehensive quantitative assessment of such multiple benefits and their trade-offs. It shows that enhanced energy efficiency in Europe beyond a 27% target for 2030 could led to substantial social, economic and environmental effects. The six impact areas analysed are : economy and labour market; health; the environment; social impacts; public budgets; and industrial competitiveness.
DianaÜrge-Vorsatz, Agnes Kelemen, Sergio Tirado-Herrero, StefanThomas, Johannes Thema, Nora Mzavanadze, Dorothea Hauptstock, Felix Suerkemper, Jens Teubler, Mukesh Gupta, Souran Chatterjee, 2016
The paper identifies a few key challenges to the evaluation of the co-impacts of low-carbon options and demonstrates that these are more complex for co-impacts than for the direct ones. Such challenges include several layers of additionality, high context dependency, and accounting for distributional effects.