• Energy Research

This paper analyses the cross-sectoral integration of the water-energy nexus in Brazil. Recent droughts resulted in unprecedented water scarcity. This caused water shortages for population and agriculture, as well as for electricity production (hydropower being the main source of electricity production). As a result, the system became more vulnerable to blackouts. To alleviate the problem, fossil fuels were used as a back up. Droughts, floods and other water-related problems will not dissipate as time goes by in Brazil. The dependency on one single predominant source (hydropower) makes Brazil’s electricity supply vulnerable. This study shows through data analysis, flow diagrams and metrics the interrelation between water and energy. Based on historical data, the analysis shows the importance of the water demand for hydropower, cooling for thermal plants, and the extraction and production of biofuels, as well as of the energy demand of water services (water supply, wastewater treatment).

Abstract Supply chain effectiveness and general societal prosperity, as well as economic and ecological productivity will be highly affected in the next decades, entailing challenges for the supply chain and logistics sector. Thereby this sector plays a significant role within the transformation process of economic systems, yet the capacities of it remain up till now underestimated. This paper suggests a holistic approach to assess transformation potential of the supply chain and logistics sector towards more sustainable economic systems while defining innovative business strategies to meet future macroeconomic developments. This is achieved through an integrated assessment of production and consumption systems, considering the interests of the key stakeholders. Moreover, the paper combines advanced methods to develop future macroeconomic scenarios and to assess the strategic business opportunities of the supply chain and logistics sector addressing societal developments, e.g. new consumption patterns. The analysis relies on modern theories of Environmental and Ecological Economics, contributing to transformation theories. Moreover, the innovative role of supply chain and logistics management in achieving sustainable macroeconomic goals at regional and international levels is addressed.

Decarbonising the power system contributes to carbon emission reductions and synergetic air pollution reductions, but these co-benefits may be unevenly distributed across regions. These distributional consequences from national policies may lead to conflict of interests at subnational levels, which has often been overlooked. This study assesses provincial economic impacts and synergetic air pollutant reductions of power system decarbonisation in China, achieved by two different national policies, namely a mandatory phaseout policy and an Emissions Trading System (ETS). To this end, a multi-regional dynamic Computable General Equilibrium (CGE) model is developed and adopted. The scenario analysis shows that the mandatory phaseout policy is more effective in reducing air pollutant emissions from the power sector, while leading to greater GDP losses at the national level. At provincial levels, the ETS mitigates the trade-off between economic growth and air pollutant reductions, but the mandatory phaseout policy would be more favourable to the majority of provinces no matter whether the GDP growth or air pollution reduction is prioritised.

Abstract It is critical to adapt to climate change and reduce the overall carbon emissions. China announced its Nationally Determined Contributions (NDC) at the Paris climate conference in 2015. The carbon cap-and-trade scheme, which plays a key role in carbon emissions abatement, is an effective policy for China to achieve its NDC. This study focuses on the allocation of regional and sectoral initial carbon emission allowances in Shanghai. An impact evaluation on the macro-economy, carbon trading markets and participating sectors for the year 2030 was conducted by applying a computable general equilibrium (CGE) model. The results show that the carbon cap-and-trade scheme would cause a 3.4% GDP loss and an 8.9% welfare loss in 2030. The carbon price would be 161.2 USD/t and 147.2 USD/t under the two representative scenarios. The allocation of initial allowances would have a significant impact on both carbon market scale and sectoral trading behaviors. The power generation sector and the petrol oil sector would undertake the greatest output loss, while the metal smelting sector would become the main seller. Furthermore, the initial allowances allocation under a certain abatement target would hardly affect sectoral production but remarkably affect trade behaviors at the carbon trading markets.

Measuring eco-innovation helps us understand the overall trends and raises awareness in society. Measuring eco-innovation at the national level and making comparisons across countries may allow us to benchmark performance and foster policy learning. This paper assesses two indices developed in two different regions: The ASEM Eco-Innovation Index (ASEI) by the ASEM SMEs Eco-Innovation Center, based in Republic of Korea; and the Eco-Innovation Scoreboard (Eco-IS) developed by the Eco-Innovation Observatory, based in the European Union. This paper aims to examine and compare the features of both and attempts to obtain insights on their strengths and weaknesses. Towards this aim, our paper assesses those scoreboards against four criteria stemming from innovation analysis: (1) relevance of areas and stakeholders covered; (2) ability to indicate changes; (3) directions towards common goals; and (4) ability to facilitate further changes. We conclude both are promising, despite data shortages, and have great potential to contribute towards the sustainable development goals (SDGs), particularly with regard to the SDGs on sustainable industrialization and sustainable consumption and production. In comparison, the ASEI covers more countries than the Eco-IS. However, the ASEI has limitations on measuring indicators due to limited data availability in Asian countries. The Eco-IS is closely linked with the regional and national policies for eco-innovation in Europe, while the ASEI’s impact appears more limited, as of now. In conclusion, the research results give insights into key areas, goals and applications of eco-innovation indices, and can help upgrading eco-innovation indices. This research helps interpret the scores of two indices better and facilitate application of the scores in the multiple ways. It is expected that this research contributes to developing and modifying a global eco-innovation index and enhancing the ability of these indices to facilitate eco-innovation strategies at national levels and across relevant actors.

China's wide-ranging circular economy (CE) efforts have been studied multiple times from a range of perspectives. Synthesizing the relevant literature, this paper provides a critical reflection on the transition to a CE in China. Key factors for China's success in shifting towards a CE are seen in multi-level indicators and upscaling niches. This paper makes a novel contribution on limitations to progress, based on emerging evidence on CE projects that fail to sustain. Enriched by experts feedback, this paper critically addresses future challenges to a deep transition resulting from implementation gaps between early majorities and mass markets and coordination challenges arising through regional and sectoral differences. In light of China's commitments to climate neutrality by 2060, such challenges are considered serious. Based on feasible policy learning, the paper however proposes synergies between the CE and decarbonisation driven by efficiency improvements, comprehensive core indicators, upscaling and urban policies as trigger for deeper transformations. Finally the paper undertakes broader reflections and an outlook on evidence-orientated policy learning for a CE and decarbonisation in China.

This paper reviews the current EU policy framework in view of its impact on hydrogen and fuel cell development. It screens EU energy policies, EU regulatory policies and EU spending policies. Key questions addressed are as follows: to what extent is the current policy framework conducive to hydrogen and fuel cell development? What barriers and inconsistencies can be identified? How can policies potentially promote hydrogen and fuel cells in Europe, taking into account the complex evolution of such a potentially disruptive technology? How should the EU policy framework be reformed in view of a strengthened and more coherent approach towards full deployment, taking into account recent technology-support activities? This paper concludes that the current EU policy framework does not hinder hydrogen development. Yet it does not constitute a strong push factor either. EU energy policies have the strongest impact on hydrogen and fuel cell development even though their potential is still underexploited. Regulatory policies have a weak but positive impact on hydrogen. EU spending policies show some inconsistencies. However, the large-scale market development of hydrogen and fuel cells will require a new policy approach which comprises technology-specific support as well as a supportive policy framework with a special regional dimension.