• Energy Research
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• Research Papers in Economics close

Most of the climate change models for South Africa predict a reduction in freshwater availability by 2050, which implies that water availability for sectoral production activities is expected to decline. This decline has an impact on sectoral output, value added and households’ welfare. Using a computable general equilibrium approach, this study investigates the possible impact of global change on households’ welfare. The simulation results show that water scarcity due to global change can potentially lead to a general deterioration in households’ welfare. The poor households, whose incomes are adversely impacted, are the most vulnerable to the consequences of the impact of global change on water resources in South Africa. This vulnerability can only be reduced if welfare policies that maintain food consumption levels for the least and low-income households are implemented

We explore an input–output based framework for optimizing production in the Greek economy, under constraints relating to energy use, final demand, greenhouse gas emissions and solid waste. Using empirical data, we consider the effects on the maximum attainable gross value of production when imposing various pollution abatement targets. Our results quantify those effects as well as the magnitude of economic sacrifices required to achieve environmental goals, in a series of policy scenarios of practical importance. Because air pollution and solid waste are not produced independently of one another, we identify the settings in which it is meaningful to institute a separate policy for mitigating each pollutant, versus those in which only one pollutant needs to be actively addressed. The scenarios considered here represent a range of options that could be available to policy makers, depending on the country's international commitments and the effects on economic and environmental variables.

This paper investigates the meaning of systemic risk in energy markets and proposes a methodology to measure it. Energy Systemic Risk is defined by the risk of an energy crisis raising the prices of all energy commodities with negative consequences for the real economy. Measures of the total cost (EnSysRISK) and the net impact (ΔMES) of an energy crisis on the rest of the economy are proposed. The measures are derived from the Marginal Expected Shortfall (MES) capturing the tail dependence between the asset and the energy market factor. The adapted MES accounts for causality and dynamic exposure to common latent factors. The methodology is applied to the European Energy Exchange and the DAX industrial index, where a minor decline in industrial productivity is observed from recent energy shocks.

Waste with high biomass content generated in cities in developing countries is sent to landfills or open dumps. This research aims to degrade biomass content in urban waste through cultivation, at pilot scale, of the edible mushroom Pleurotus ostreatus. First, the number of diapers used by one baby per week was measured with a survey in day care facilities. Then, cellulose content of diapers was assessed. Finally, cultivation of P. ostreatus was carried out using as substrate a mixture of diapers with gardening waste, a co-substrate readily available at urban settings. The factors assessed were strain of P. ostreatus (grey BPR-81, white BPR-5), conditioning of the substrate (diapers with and without plastic) and co-substrate (wheat straw, grass, and withered leaves). Results show that diapers are a valuable source of biomass, as generation of diapers with urine is 15.3 kg/child/month and they contain 50.2% by weight of cellulose. The highest reductions in dry weight and volume (>64%) of substrates was achieved with the substrate diaper without plastic and co-substrate wheat straw. Although diapers with plastic and grass and leaves showed lower degradation, they achieved efficiencies that make them suitable as a co-substrate (>40%), considering that their biomass is currently confined in landfills.

The Urban Heat Island (UHI) is the phenomenon of altered increased temperatures in urban areas compared to their rural surroundings. UHIs grow and intensify under extreme hot periods, such as during heat waves, which can affect human health and also increase the demand for energy for cooling. This study applies remote sensing and land use/land cover (LULC) data to assess the cooling effect of varying urban vegetation cover, especially during extreme warm periods, in the city of Munich, Germany. To compute the relationship between Land Surface Temperature (LST) and Land Use Land Cover (LULC), MODIS eight-day interval LST data for the months of June, July and August from 2002 to 2012 and the Corine Land Cover (CLC) database were used. Due to similarities in the behavior of surface temperature of different CLCs, some classes were reclassified and combined to form two major, rather simplified, homogenized classes: one of built-up area and one of urban vegetation. The homogenized map was merged with the MODIS eight-day interval LST data to compute the relationship between them. The results revealed that (i) the cooling effect accrued from urban vegetation tended to be non-linear; and (ii) a remarkable and stronger cooling effect in terms of LST was identified in regions where the proportion of vegetation cover was between seventy and almost eighty percent per square kilometer. The results also demonstrated that LST within urban vegetation was affected by the temperature of the surrounding built-up and that during the well-known European 2003 heat wave, suburb areas were cooler from the core of the urbanized region. This study concluded that the optimum green space for obtaining the lowest temperature is a non-linear trend. This could support urban planning strategies to facilitate appropriate applications to mitigate heat-stress in urban area.

Abstract This paper investigates the impact of urbanization on energy consumption by applying the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) in case of Malaysia. The study covers the time period of 1970Q1–2011Q4. The unit root test and the ARDL bounds testing approach have been applied to examine integrating properties and long run relationship in the presence of structural breaks. Our results validated the existence of cointegration and exposed that urbanization is a major contributor in energy consumption. Affluence raises energy demand. Capital stock boosts energy consumption. Trade openness leads to affluence and hence increases energy consumption. The causality analysis finds that urbanization Granger causes energy consumption. The feedback effect is found between energy consumption and affluence and, energy consumption and capital. The bidirectional causality exists between trade openness and energy consumption.

Small-scale bio-energy projects have been launched in rural areas of China and are considered as alternatives to fossil-fuel energy. However, energetic and environmental evaluation of these projects has rarely been carried out, though it is necessary for their long-term development. A village-level biomass gasification project provides an example. A hybrid life-cycle assessment (LCA) of its total nonrenewable energy (NE) cost and associated greenhouse gas (GHG) emissions is presented in this paper. The results show that the total energy cost for one joule of biomass gas output from the project is 2.93 J, of which 0.89 J is from nonrenewable energy, and the related GHG emission cost is 1.17 × 10−4 g CO2-eq over its designed life cycle of 20 years. To provide equivalent effective calorific value for cooking work, the utilization of one joule of biomass gas will lead to more life cycle NE cost by 0.07 J and more GHG emissions by 8.92 × 10−5 g CO2-eq compared to natural gas taking into consideration of the difference in combustion efficiency and calorific value. The small-scale bio-energy project has fallen into dilemma, i.e., struggling for survival, and for a more successful future development of village-level gasification projects, much effort is needed to tide over the plight of its development, such as high cost and low efficiency caused by decentralized construction, technical shortcomings and low utilization rate of by-products.

The electric power sector both affects and is affected by climate change. Numerous studies highlight the potential of the power sector to reduce greenhouse gas emissions. Yet fewer studies have explored the physical impacts of climate change on the power sector. The present analysis examines how projected rising temperatures affect the demand for and supply of electricity. We apply a common set of temperature projections to three well-known electric sector models in the United States: the US version of the Global Change Assessment Model (GCAM-USA), the Regional Electricity Deployment System model (ReEDS), and the Integrated Planning Model (IPM®). Incorporating the effects of rising temperatures from a control scenario without emission mitigation into the models raises electricity demand by 1.6 to 6.5 % in 2050 with similar changes in emissions. The increase in system costs in the reference scenario to meet this additional demand is comparable to the change in system costs associated with decreasing power sector emissions by approximately 50 % in 2050. This result underscores the importance of adequately incorporating the effects of long-run temperature change in climate policy analysis.