• Energy Research

We analyze the dynamics of global fossil resource markets under different assumptions for the supply of fossil fuel resources, development pathways for energy demand, and climate policy settings. Resource markets, in particular the oil market, are characterized by a large discrepancy between costs of resource extraction and commodity prices on international markets. We explain this observation in terms of (a) the intertemporal scarcity rent, (b) regional price differentials arising from trade and transport costs, (c) heterogeneity and inertia in the extraction sector. These effects are captured by the REMIND model. We use the model to explore economic effects of changes in coal, oil and gas markets induced by climate-change mitigation policies. A large share of fossil fuel reserves and resources will be used in the absence of climate policy leading to atmospheric GHG concentrations well beyond a level of 550 ppm CO2-eq. This result holds independently of different assumptions about energy demand and fossil fuel availability. Achieving ambitious climate targets will drastically reduce fossil fuel consumption, in particular the consumption of coal. Conventional oil and gas as well as non-conventional oil reserves are still exhausted. We find the net present value of fossil fuel rent until 2100 at 30tril.US$ with a large share of oil and a small share of coal. This is reduced by 9 and 12tril.US$ to achieve climate stabilization at 550 and 450 ppm CO2-eq, respectively. This loss is, however, overcompensated by revenues from carbon pricing that are 21 and 32tril.US$, respectively. The overcompensation also holds under variations of energy demand and fossil fuel supply.

Emission inequality across countries and the contribution of the energy mix and the sectoral composition of a country's energy use are of central importance to the climate debate. We analyze the evolution of inequality in global CO2 per-capita emissions using both historical data on energy-related CO2 emissions and future emission scenarios generated with the integrated assessment model REMIND. Within our sample of 90 countries the results indicate that the Gini index declined from about 0.6 in 1971 to slightly above 0.4 in 2008. A decomposition of the Gini index of total emissions into primary energy carriers indicates that this reduction is mainly attributed to declining shares of emissions from coal/peat and oil in total emissions, and decreasing emission inequality within all fossil primary energy sources. From the perspective of economic sectors, the decline in overall inequality is almost entirely due to a decline of the contribution of emissions from manufacturing & construction. Our analysis also suggests that an equally spread emission reduction from any one source would not have a major impact on overall emission inequality. The analysis of future scenario data indicates that climate policy reduces absolute emission inequality, while inducing drastic progressive emission reductions in all regions.

AbstractCrop residue exploitation for bioenergy can play an important role in climate change mitigation without jeopardizing food security, but it may be constrained by impacts on soil organic carbon (SOC) stocks, and market, logistic and conversion challenges. We explore opportunities to increase bioenergy potentials from residues while reducing environmental impacts, in line with sustainable intensification. Using the case study of North Rhine‐Westphalia in Germany, we employ a spatiotemporally explicit approach combined with stakeholder interviews. First, the interviews identify agronomic and environmental impacts due to the potential reduction in SOC as the most critical challenge associated with enhanced crop residue exploitation. Market and technological challenges and competition with other residue uses are also identified as significant barriers. Second, with the use of agroecosystem modelling and estimations of bioenergy potentials and greenhouse gas emissions till mid‐century, we evaluate the ability of agricultural management to tackle the identified agronomic and environmental challenges. Integrated site‐specific management based on (a) humus balancing, (b) optimized fertilization and (c) winter soil cover performs better than our reference scenario with respect to all investigated variables. At the regional level, we estimate (a) a 5% increase in technical residue potentials and displaced emissions from substituting fossil fuels by bioethanol, (b) an 8% decrease in SOC losses and associated emissions, (c) an 18% decrease in nitrous oxide emissions, (d) a 37% decrease in mineral fertilizer requirements and emissions from their production and (e) a 16% decrease in nitrate leaching. Results are spatially variable and, despite improvements induced by management, limited amounts of crop residues are exploitable for bioenergy in areas prone to SOC decline. In order to sustainably intensify crop residue exploitation for bioenergy and reconcile climate change mitigation with other sustainability objectives, such as those on soil and water quality, residue management needs to be designed in an integrated and site‐specific manner.

Abstract Climate change mitigation, in the context of growing population and ever increasing economic activity, will require a transformation of energy and agricultural systems, posing significant challenges to global water resources. We use an integrated modelling framework of the water-energy-land-climate systems to assess how changes in electricity and land use, induced by climate change mitigation, impact on water demand under alternative socioeconomic (Shared Socioeconomic Pathways) and water policy assumptions (irrigation of bioenergy crops, cooling technologies for electricity generation). The impacts of climate change mitigation on cumulated global water demand across the century are highly uncertain, and depending on socioeconomic and water policy conditions, they range from a reduction of 15,000 km3 to an increase of more than 160,000 km3. The impact of irrigation of bioenergy crops is the most prominent factor, leading to significantly higher water requirements under climate change mitigation if bioenergy crops are irrigated. Differences in socioeconomic drivers and fossil fuel availability result in significant differences in electricity and bioenergy demands, in the associated electricity and primary energy mixes, and consequently in water demand. Economic affluence and abundance of fossil fuels aggravate pressures on water resources due to higher energy demand and greater deployment of water intensive technologies such as bioenergy and nuclear power. The evolution of future cooling systems is also identified as an important determinant of electricity water demand. Climate policy can result in a reduction of water demand if combined with policies on irrigation of bioenergy, and the deployment of non-water-intensive electricity sources and cooling types.

Although our knowledge of climate change impacts on energy systems has increased substantially over the past few decades, there remains a lack of comprehensive overview of impacts across spatial scales. Here, we analyse results of 220 studies projecting climate impacts on energy systems globally and at the regional scale. Globally, a potential increase in cooling demand and decrease in heating demand can be anticipated, in contrast to slight decreases in hydropower and thermal energy capacity. Impacts at the regional scale are more mixed and relatively uncertain across regions, but strongest impacts are reported for South Asia and Latin America. Our assessment shows that climate impacts on energy systems at regional and global scales are uncertain due partly to the wide range of methods and non-harmonized datasets used. For a comprehensive assessment of climate impacts on energy, we propose a consistent multi-model assessment framework to support regional-to-global-scale energy planning.