• Energy Research

Abstract Our paper presents a new approach to estimating the macroeconomic growth energy rebound effect. Utilizing data envelopment analysis, our suggested methodology, unlike the standard macroeconomic growth rebound effect estimation, considers other factors of production. Through an output-oriented data envelopment analysis, optimal economic growth is derived considering all factors of production. The difference between the optimal economic growth and actual economic growth represents information on energy overspending. This overspent energy directly equates to the macroeconomic growth energy rebound effect. For the empirical case study, time-series data of economic growth and factors of production, demonstrated by energy supply, capital stocks, and labor force, are collected for the period of 1971 to 2012 in Korea. While the energy rebound effect results using the standard approach to estimating macroeconomic growth energy rebound effect are in the vicinity of 100%, our empirical results show that there is a 1% rebound effect in most of the years. Our method is plausible since our results show that the energy rebound effect is high when the economy is in recession or energy prices are shocked. That is, energy, one of the factors of production, is wasted from an economic viewpoint, which is consistent with the definition of energy rebound effect.

Glass is a material inextricably linked with human civilization. It is also the product of an energy intensive industry. About 75%–85% of the total energy requirements to produce glass occur when the raw materials are heated in a furnace to more than 1500 °C. During this process, large volumes of emissions arise. The container and flat glass industries, which combined account for 80% of total glass production, emit over 60 million tonne of CO2 per year. However, environmental issues relating to the glass industry are not just limited to the manufacturing stage, but also from raw materials extraction, which impacts local ecosystems and creates other environmental challenges associated with tailing ponds, waste disposal and landfills. This systematic review poses five questions to examine these issues and themes: What alternatives exist to abate the climate effects of glass and thus make the full life cycle of glass more sustainable? What are the key determinants of energy and carbon from glass? What technical innovations have been identified to make glass manufacturing low to zero carbon? What benefits will amass from more carbon-friendly process in glass manufacturing, and what barriers will need tackling? To examine these questions, this study presents the findings of a comprehensive and critical systematic review of 701 studies (and a shorter sample of 375 studies examined in depth). A sociotechnical lens is used to assess glass manufacturing and use across multiple sectors (including buildings, automotive manufacturing, construction, electronics, and renewable energy), and options to decarbonize. The study identifies a number of barriers ranging from financial to infrastructural capacity, along with high potential avenues for future research.

Our paper examines the environmental Kuznets curve (EKC) relationship through a heterogeneous panel analysis of 34 Annex I countries for the 1990 to 2016 period. We confirm the long-run equilibrium relationship between carbon emissions, trade openness, fossil fuel usage, and GDP through the panel cointegration tests that is robust to cross-sectional dependence. Overall, our finding is that the empirical results show no consistent evidence of the EKC hypothesis in Annex I countries via mean group and long-run estimation. Country-specific estimation shows that only 5 of the 34 countries support the EKC hypothesis. From the cointegration test to long-run vector estimation, we indirectly show that fossil fuel usage can distort the EKC results by causing endogeneity, since being strong is related to economic growth. From the synthesized statistics of empirical results, Annex I countries do not follow the EKC relationship. This could imply that because no mitigation has been achieved, climate change can become a much more serious issue, although country-specific results show that mitigation is constantly in progress.

What is the range and scope of externalities associated with electricity supply, energy efficiency, and transport? What research methods and techniques of valuation does the community use to monetize these externalities? What policy implications arise in terms of better governing energy and mobility systems? To answer these questions, this study offers a comprehensive and global research synthesis of externalities for energy and mobility. It synthesizes data from 139 studies with 704 distinct estimates to examine the hidden social and environmental costs. The mean external cost for electricity supply is 7.15¢/kWh. When correlating this with the actual amount of electricity generated per year, the amount is $11.644 trillion. This likely exceeds both the reported revenues for electricity sales, oil and gas production as well as the levelized costs of energy. The mean external cost for mobility is 17.8¢/km. Using differentiated estimations of the externalities associated with aviation, road travel for passengers and freight, rail, and coastal water/marine modes of travel, transport’s global externalities amount to another $13.018 trillion. When combined, this $24.662 trillion in externalities for energy and transport is equivalent to 28.7% of global Gross Domestic Product. Energy efficiency or demand response by contrast has net positive externalities of approximately 7.8¢/kWh. When put into the context of global efficiency and demand management efforts, this approaches an annual positive value of $312 billion. The fundamental policy question is whether we want global markets that manipulate the presence of externalities to their advantage, or a policy regime that attempts to internalize them.

Global concern about the climate crisis has incited movements for switching to renewable electricity. Renewable electricity can contribute to economic growth as an input factor (electricity generation) and also as an industry (renewable manufacturing). We introduce a new hypothesis, the renewable–growth hypothesis, to investigate the role of the renewable manufacturing industry in the energy–growth nexus study. To test the hypothesis, we select a target country group using the market share of the renewable manufacturing industry and conduct the Granger causality test for solar photovoltaic and wind power. The autoregressive distributed lag bounds testing approach is applied for the causality test. The results show that renewable electricity Granger causes economic growth in target countries, which supports the renewable–growth hypothesis. However, the hypothesis did not hold in countries that export renewable power facilities more than they install them for domestic demand. We believe that the renewable–growth hypothesis would be secured soon if renewable electricity expands broadly over the world.

Abstract The horticulture and stockbreeding sectors are the highest energy consumers in the Korean agriculture industry. Reducing this consumption would be useful given that non-renewable resources account for 70.3% of the source of this energy. We apply the fuzzy analytic hierarchy process with the benefits, opportunities, costs, and risks (BOCR) approach to select an optimal heating facility for the horticulture and stockbreeding sectors in Korea. We set 11 factors based on the BOCR approach and evaluate six heating options that use either fossil fuels or renewable energy (oil-fired boiler, coal-fired boiler, electricity heater, geothermal heat pump, aero-thermal heat pump, and wood pallet-fired boiler). From the energy and agricultural experts׳ perspectives, the geothermal heat pump is selected as the most appropriate heating source. While it requires the highest initial investment cost of all the options, the geothermal heat pump earned high scores on most other factors. Moreover, the aero-thermal heat pump and the wood pallet-fired boiler, which run on renewable energy, also scored relatively well. However, the oil-fired boiler, which currently has the predominant share of heating facilities in these sectors, ranked the lowest. The results show that the Korean government׳s energy policies regarding the agriculture industry have resulted in a distorted resource allocation. Thus, it would be prudent to phase out the tax exemption on petroleum products and discounts on electricity provided to this industry.

As a consequence of globalization, increased international transport generates many pollutants. Pollution generation from other industries related to international transport also cannot be ignored. This paper thus aims to investigate the carbon emissions from international transport. We analyzed embodied carbon emissions of international transport using multi-region input output analysis, and identified the factors underlying changes in emissions using structural decomposition analysis. China was the world’s largest CO2-emitting country in international transport in terms of both production- and consumption-based standards. However, consumption-based emissions in that country were much lower than production-based emissions, while in the United States, with second largest emissions, the situation was the opposite. Major emission changes were contingent on demands for international transportation and emission efficiency. In the case of the European Union (EU), consumption-based emissions were higher, but CO2 emissions decreased gradually due to increased emission efficiency. The different information is provided by each standard, and reduction targets can change according to the standards employed. While discussions on emissions standards are still in progress, the results of this study suggest that CO2 emissions from international transport, and according to different emissions standards, should receive careful attention in energy policy design, in order to limit CO2 emissions globally.

The decarbonization of industry and industrial systems is a pressing challenge given the relative lack of low-carbon options available for “hard to decarbonize” sectors such as steelmaking, cement manufacturing, and chemical production. Carbon capture utilization and storage (CCUS) represents a promising and crosscutting solution to this formidable problem. This review takes a systematic and sociotechnical perspective to examine how CCUS can support industrial decarbonization and relevant associated technical, economic, and social factors. This includes a focus on the energy and climate impacts of carbon emitting activities, the role, and options for CCUS in global responses to climate change, technical aspects of capture, transport, storage, and utilization, as well as policy implications and areas requiring further research. In doing so, the Review examines hundreds of published studies on the topic over the previous twenty years to offer a state-of-the-art investigation on technical options for capture (including direct air capture), transportation (including pipelines, ships, and rail), storage (including biotic and abiotic), and utilization (including enhanced oil recovery and biochar). The Review also investigates the evidence base within the literature on enablers and barriers to CCUS, policy mechanisms, and international frameworks as well as themes such as geopolitics, trade, and future research gaps. We conclude with insights about future CCUS pathways and sociotechnical systems dynamics.