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Abstract This paper takes Sichuan Province (China) as an example to improve the design of energy use rights trading policy (ERTP) with the goal of reducing regional energy vulnerability. The following contributions are made to improve the ERTP: (1) The first step in designing the ERTP is to set the total energy consumption target, and this paper formulates the total energy consumption of Sichuan Province in 2025 with reference to China's 14th Five-Year Plan. (2) This paper adopts the historical egalitarianism, economic egalitarianism, efficiency allocation model and the Game-Equity Fixed Cost Allocation Model (Game-EFCAM) to allocate energy use quotas at the sectoral level. Therein, Game-EFCAM is an allocation model which considers both equity and efficiency. (3) In designing the trading mechanism, this paper exogenizes the price of energy use rights within the quotas and endogenizes (determined by the market) the price of energy use rights outside the quotas. Moreover, this paper adopts a recursive dynamic computable general equilibrium (CGE) model to simulate the effects of different allocation schemes and economic development levels on energy vulnerability. The results show that regional energy vulnerability is minimized under the allocation results of Game-EFCAM. This paper not only improves the ERTP, but also provides a reference for other countries in energy dilemmas.

Limiting global warming to well below 2 °C requires the transformation of the global energy system at a scale unprecedented since the industrial revolution. To meet this 2 °C goal, 87% of integrate ...

Abstract In spite of the extensive literature on greenhouse gas emission inequalities at the world-wide level, most of the evidence so far has been based on country-level data. However, the within-country dimension matters for both the implementation and the policy formation of climate policies. As a preliminary step towards a better understanding of within-country inequalities, this paper measures their extent for the two major greenhouse gases, CO2 and CH4, over the 1970–2008 period. Using Theil-index decompositions, we show that within-country inequalities account for the bulk of global inequality, and tend to increase over the sample period, in contrast with diminishing between-country inequalities. Including differences across sectors reveals that between-sector inequalities matter more than between-country inequalities, and between-sector inequalities become the dominant source of global inequality at the end of the sample period in the CO2 case. Finally, estimated social tensions arising from the disconnection between emissions and future damages turn out to be increasing as soon as within-country disparities are taken into account. These orders of magnitude should be kept in mind while discussing the efficiency and fairness of alternative paths in combating global warming.

New, small-scale electric generation technologies permit utility customers to generate some of their own electric power and to utilize waste heat for space heating and other applications at the building site. This combined heat and power (CHP) characteristic can provide significant energy-cost savings. However, most current US utility regulations leave CHP standby rate specification largely to utility discretion resulting in claims by CHP advocates that excessive standby rates are significantly reducing CHP-related savings and inhibiting CHP diffusion. The impacts of standby rates on the adoption of CHP are difficult to determine; however, because of the characteristically slow nature of new technology diffusion. This study develops an agent-based microsimulation model of CHP technology choice using cellular automata to represent new technology information dispersion and knowledge acquisition. Applying the model as an n-factorial experiment quantifies the impacts of standby rates on CHP technologies under alternative diffusion paths. Analysis of a sample utility indicates that, regardless of the likely diffusion process, reducing standby rates to reflect the cost of serving a large number of small, spatially clustered CHP systems significantly increases the adoption of these technologies.

Abstract Analysis of CO2 emission has attracted more attention due to increasing environmental awareness. As a pillar of the national economy, the CO2 emissions of the metallurgical industry continually increased during 2000–2015 and reached around 3208.65 million tons in 2015. Thus, research on the CO2 emission performance of the metallurgical industry is significant for achieving binding emission reduction targets in China's 13th Five-Year Plan as well as constructing clean and low carbon energy system based on the directives of the 19th CPC National Congress. Taking regional heterogeneity into consideration, we construct a Metafrontier Malmquist CO2 Emissions Performance Index (MMCPI) to conducts a multi-dimensional analysis of the CO2 emissions performance in metallurgical industry of China, focusing on the CO2 emission efficiency, the main influencing factors of carbon performance and CO2 emission reduction potentials. Based on the aforementioned analysis, the paper finds that technological progress change was the main factor contributing to the improvement of the CO2 emissions efficiency of the metallurgical industry. Under the meta-frontier, Central and Western China still have a CO2 emissions reduction potential of 75.3% and 81.1% correspondingly. Under the group-frontier, the lowest reduction potential in Eastern, Central and Western China is in Jiangsu, Hubei and Chongqing respectively.

The growth in the proportion of medium and light distillates in total petroleum product demand is forcing the oil refining industry to a process of supply adaptation by means of technological reconversion. In some countries this process is already advanced, while in others it is still at the starting point. As an alternative to technological reconversion, this adaptation may be achieved through the gasification of heavy refinery residues with electricity generation (ITGCC plants). The development of ITGCC plants represents product innovation and process innovation at one and the same time, for both the oil refining industry and the electricity sector. This article analyses the nature and importance of the innovation process itself, with emphasis on these aspects: its influence on the economic performance of oil companies and on directives concerning the technological transformation of refining systems; the competitiveness of the fuel cycle in terms of electricity generation cost and environmental impact; the prospects for future development in Europe and the construction programme in Italy.

Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries.

Abstract If intermittent renewable energy technologies such as those based on solar, wind, wave and tidal resources are eventually to supply significant shares of total energy supplies, it is crucial that the energy storage problem is solved. There are several (long-recognised) possibilities ahead including compressed air, pumped storage, further developments in batteries, regenerable fuel cells, ‘super-capacitors’ and so forth. But one that is being revisited extensively by industry and research establishments is the production and storage of hydrogen from electricity at off-peak times, and in times when there would be a surplus of renewable energy, for reuse in the electricity, gas and transport markets; short-term and even seasonal and longer-term storage is technically feasible with this option. This paper looks at the costs of the option both in the near-term and the long-term relative to the current costs of electricity and natural gas supplies. While the costs of hydrogen would necessarily be greater than those of natural gas (though not disruptively so), when used in conjunction with emerging technologies for decentralised generation and combined heat and power there is scope for appreciable economies in electricity supply. A lot will depend on innovation at the systems level, and on how we operate our electricity and gas grids and regulate our electricity and gas industries. We have also suggested that we now need to experiment more, at the commercial level, and in the laboratories, with the hydrogen option.

Abstract This paper explores the use of fuelwood in Third World cities. The importance of fuelwood and the factors which condition its use in cities are set out and three fuelwood problems are identified: the cost to urban consumers, fuel supply security and the impact of urban fuelwood markets on rural areas. Urban fuelwood interventions are evaluated, with four categories identified: interventions in marketing, conservation, increased, wood production and fuel-switching. Of these, fuel-switching by improved supply systems and increased production from smallholders and better management of natural woodlands appear to have the greatest potential. The need for flexibility/community participation in planning is stressed.