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In order to step up its efforts in reducing climate change, the European Commission (hereafter: the Commission) has launched in June 2000 its European climate change program (hereafter: ECCP). This wide-ranging stakeholder consultation aimed at identifying and developing all elements necessary for a European climate change strategy. The ECCP formally came to a close in April 2003. This paper analyses the inner workings of ECCP, and how ECCP has delivered with regard to its objectives. Special attention is paid to ECCP's Working Group 1, "Flexible Mechanisms", which developed the foundations for the European emission trading scheme (hereafter: EU ETS). The paper draws on documents published on the Commission's ECCP...
The energy consumption and fossil CO2 emissions from the Canadian vegetable greenhouse industry were assessed using greenhouse statistics from 2002 to 2007. The fossil CO2 emissions were compared to the fossil CO2 emitted during transport of an equal weight of food by truck and by airplane from two horticultural production centers in the southern USA to four locations in Canada. The calculations in this paper for Canadian greenhouse energy use for heating were verified against farm energy use survey data collected from greenhouse operators in 1996. Allowing for extrapolations to 1996 from the 2002 to 2007 period, the survey data were underestimated by 12%. Since the survey data were not corrected for possible household...
The energy consumption and fossil CO2 emissions from the Canadian vegetable greenhouse industry were assessed using greenhouse statistics from 2002 to 2007. The fossil CO2 emissions were compared to the fossil CO2 emitted during transport of an equal weight of food by truck and by airplane from two horticultural production centers in the southern USA to four locations in Canada. The calculations in this paper for Canadian greenhouse energy use for heating were verified against farm energy use survey data collected from greenhouse operators in 1996. Allowing for extrapolations to 1996 from the 2002 to 2007 period, the survey data were underestimated by 12%. Since the survey data were not corrected for possible household...
Over the 1970s and 1980s, emissions of carbon dioxide from energy use fell in per capita, per unit GDP, and in some cases in absolute terms in 10 industrialized countries studied by LBNL. These declines were driven principally by falling end-use energy intensities and the decreasing carbon content of energy. By the early 1990s, however, a slowdown in the decline of intensities and the continued growth of GDP and energy services activity have reversed the trends in absolute emissions. LBNL concludes that CO2 emissions will continue to rise in the future unless energy intensities and/or the carbon content of energy can be decreased at an accelerated rate via policy changes, technological innovation and/or behavioural...
In building a governance regime to address climate change, should we prioritize the development of global institutions or national ones? This paper focuses on two neglected characteristics to inform the governance problem: the incentives for investment in low-carbon energy technology and the influence of historical policy volatility. Examining a case study of an important low-carbon energy technology, wind power, this study finds: (1) policy volatility has been substantial, (2) policy changes were uncorrelated across jurisdictions, suggesting that (3) investors could have substantially reduced their exposure to the risk of policy volatility by operating globally. While it also has downsides, a poorly coordinated...
In response to the ongoing climate policy debates, this study examines the cost impacts of carbon-pricing legislation on selected US energy-intensive manufacturing industries. Specifically, it evaluates output-based rebate measures and the border adjustment provision specified in the bill, and tests the effectiveness of cost containment features of the policy, such as the international offsets, under various market assumptions. Results of the examination confirm that in all policy cases or industries, the output-based rebates would effectively mitigate the manufacturers' carbon-pricing costs in the short-to-medium term. However as the rebates decline after 2020, especially in a case where low-carbon electricity...
In order to step up its efforts in reducing climate change, the European Commission (hereafter: the Commission) has launched in June 2000 its European climate change program (hereafter: ECCP). This wide-ranging stakeholder consultation aimed at identifying and developing all elements necessary for a European climate change strategy. The ECCP formally came to a close in April 2003. This paper analyses the inner workings of ECCP, and how ECCP has delivered with regard to its objectives. Special attention is paid to ECCP's Working Group 1, "Flexible Mechanisms", which developed the foundations for the European emission trading scheme (hereafter: EU ETS). The paper draws on documents published on the Commission's ECCP...
Two computable general equilibrium models, one global and the other providing U.S. regional detail, are applied to analysis of the future of U.S. natural gas. The focus is on uncertainties including the scale and cost of gas resources, the costs of competing technologies, the pattern of greenhouse gas mitigation, and the evolution of global natural gas markets. Results show that the outlook for gas over the next several decades is very favorable. In electric generation, given the unproven and relatively high cost of other low-carbon generation alternatives, gas is likely the preferred alternative to coal. A broad GHG pricing policy would increase gas use in generation but reduce use in other sectors, on balance...
Plug-in hybrid electric vehicles (PHEVs) have the potential to be an economic means of reducing direct (or tailpipe) carbon dioxide (CO2) emissions from the transportation sector However, without a Climate policy that places a limit on CO2 emissions from the electric generation sector, the net impact of widespread deployment of PFIEVs on overall US CO2 emissions is not as clear. A comprehensive analysis must consider jointly the transportation and electricity sectors. along with feedbacks to the rest of the energy system. In this paper, we use the Pacific Northwest National Laboratory's MiniCAM model to perform an integrated economic analysis of the penetration of PFIEVs and the resulting impact oil total U.S. CO2...
In building a governance regime to address climate change, should we prioritize the development of global institutions or national ones? This paper focuses on two neglected characteristics to inform the governance problem: the incentives for investment in low-carbon energy technology and the influence of historical policy volatility. Examining a case study of an important low-carbon energy technology, wind power, this study finds: (1) policy volatility has been substantial, (2) policy changes were uncorrelated across jurisdictions, suggesting that (3) investors could have substantially reduced their exposure to the risk of policy volatility by operating globally. While it also has downsides, a poorly coordinated...
We examine how state-level factors affect greenhouse gas (GHG) reduction policy preference across the United States by analyzing climate action plans (CAPs) developed in 11 states and surveying the CAP advisory group members. This research offers insights into how states approach the problem of choosing emissions-abatement options that maximize benefits and minimize costs, given their unique circumstances and the constellation of interest groups with power to influence state policy. The state CAPs recommended ten popular GHG reduction strategies to accomplish approximately 90% of emissions reductions, but they recommended these popular strategies in different proportions: a strategy that is heavily relied on in...
Nearly one-third of the world’s energy consumption and 36% of its carbon dioxide (CO2) emissions are attributable to manufacturing industries. However, the adoption of advanced technologies already in commercial use could provide technical energy savings in industry of 27–41 exajoules (EJ), along with a reduction in CO2 emissions of 2.2–3.2 gigatonnes (Gt) per year, about 7–12% of today’s global CO2 emissions. Even more significant savings can be attained on the supply side if fuel switching and CO2 capture and storage are considered. However, such changes must start in the coming decade to have a substantial impact by 2050.
The impacts of the availability of low-carbon technologies on the regional distribution of mitigation costs are analyzed in a global multi-regional integrated assessment model. Three effects on regional consumption losses are distinguished: domestic measures, trade of fossil energy carriers and trade of emission permits. Key results are: (i) GDP losses and a redirection of investments in the energy system towards capital-intensive technologies are major contributions to regional consumption losses. (ii) A devaluation of tradable fossil energy endowments contributes largely to the mitigation costs of fossil fuel exporters. (iii) In case of reduced availability of low-carbon technologies, the permit market volume...
Stabilising the concentration of CO2 in the atmosphere at a level of 450 ppm in order to keep global temperature increase below 2 °C requires an ambitious climate policy. This study analyses the role of different technologies in the EU-27 with regard to efficiency improvements, fuel switching and energy saving measures under such a climate policy target. The analysis is carried out using the regionalised Pan-European TIMES energy system model, a technology oriented, linear optimisation model. Thereby limited resources and import potentials of various energy carriers, competition among different sectors and the country-specific differences in energy demand are taken into account. As a result, it turns out that the...
Evidence from cross-sectional growth regressions suggests that economies dependent on natural resource exports have had slower growth than resource scarce economies. Explanations for this "curse of resources" focus on institutional and market failures caused by resource abundance. With a simple two sector model exhaustible resource model, we demonstrate that the correlation between growth and natural resource abundance can be negative in the absence of market and institutional failures. Since there is no way to distinguish between efficient and inefficient equilibria on the basis of the negative correlation between growth and resource abundance, finding that correlation is not sufficient to conclude resources are...
State governments have taken the lead on U.S. energy and climate policy. It is not yet clear, however, whether state energy policy portfolios can generate results in a similar magnitude or manner to their presumed carbon mitigation potential. This article seeks to address this lack of policy evidence and contribute empirical insights on the carbon mitigation effects of state energy portfolios within the U.S. electricity sector. Using a dynamic, long-term electricity dispatch model with U.S. power plant, utility, and transmission and distribution data between 2010 and 2030, this analysis builds a series of state-level policy portfolio scenarios and performs a comparative scenario analysis. Results reveal that state...
The United States and other developed countries currently and historically have transferred considerable resources overseas to further their foreign policy objectives and to purchase oil and natural gas. These transfers are comparable in magnitude to estimates of the scale of the economic effort that would be required to create a world-wide energy system with zero carbon emissions by the middle of this century. Solar energy, the most abundant of the alternative energy supply sources, is currently the most expensive of the alternatives to fossil fuels but a substantial body of research and practical experience suggests that solar costs could fall to competitive levels with sufficient technological progress and increases...