• Energy Research
• 7. Clean energy close
• 11. Sustainability close
• 12. Responsible consumption close
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Abstract In this paper, we analyze the rationale for an energy policy mix when the European Emissions Trading Scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes (1) efficient policy design and (2) climate protection as the single objective of policy intervention. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies (1) contributes to a more effective ETS-design and (2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix.

Abstract This paper investigates the optimal choice of building energy efficiency (BEE) standard in the context of centralised urban district heating system in northern China. By employing a techno-economic analysis approach, we demonstrate that the current BEE standard implemented in the Chinese cities should be tightened further in order to achieve a socially optimal level. Without considering the externality costs associated with carbon dioxide (CO2) emissions, current BEE standards need to be upgraded to the equivalent level of French RT2005 standard coupled with a properly designed district coal-fired Combined Heat and Power (CHP). In contrast, the equivalent efficiency standard of Swedish building code is preferably to be implemented in the case of explicit carbon emission restriction as long as the marginal cost of carbon emission (carbon price) is sufficiently high. The fuel-switching policy (from coal to natural gas) in the urban district heating system would result in significant increase in overall costs if the BEE upgrade is not taken into account simultaneously. It is also found that BEE improvements in northern Chinese cities are more cost-effective than investing in low-carbon technologies such as wind power or Carbon Capture and storage in the EU and US with regard to CO2 emissions mitigation.

Abstract We demonstrate the importance of stock turnover on industrial energy efficiency through a literature review and a case study of energy-intensive equipment, i.e. the electric arc furnace in the US steel industry. We describe the common methods for assessing stock turnover. We have found that both stock turnover and retrofit are important elements to explain the energy efficiency improvement rates. We investigated the development of electricity use in electric arc furnaces in the United States by tracking the development of individual furnaces over the period 1990–2002. This provides a detailed picture of changes in the stock or fleet of furnaces through turnover and/or retrofit. Our results confirm the results of other empirical studies that there is no clear lifetime of equipment. However, retired furnaces are distinctly less efficient than furnaces remaining in the stock, while new furnaces are distinctly more efficient than the average stock. We found an annual average improvement in specific electricity consumption of 1.3%/year over the studied period, of which 0.7%/year was due to stock turnover and 0.5%/year due to retrofit of stock in service throughout the period.

Abstract Many energy-related investments are made without a clear financial understanding of their values, risks, and volatilities. In the face of this uncertainty, the investor—such as a building owner or an energy service company—will often choose to implement only the most certain and thus limited energy-efficiency measures. Conversely, commodities traders and other sophisticated investors accustomed to evaluating investments on a value, risk, and volatility basis often overlook energy-efficiency investments because risk and volatility information are not provided. Fortunately, energy-efficiency investments easily lend themselves to such analysis using tools similar to those applied to supply side risk management. Accurate and robust analysis demands a high level of understanding of the physical aspects of energy-efficiency, which enables the translation of physical performance data into the language of investment. With a risk management analysis framework in place, the two groups—energy-efficiency experts and investment decision-makers—can exchange the information they need to expand investment in demand-side energy projects. In this article, we first present the case for financial risk analysis in energy efficiency in the buildings sector. We then describe techniques and examples of how to identify, quantify, and manage risk. Finally, we describe emerging market-based opportunities in risk management for energy efficiency.

The sustainability assessment methodology has to be demonstrated in order to become the tool in the engineering practice. This chapter is devoted to the attempt to evaluate the sustainability of energy systems and show how it can be used in the everyday engineering practice. Obviously, this type of approach has its limitation due to the lack of data for the serious consideration of the system. But it should be anticipated that these excises might serve as guidance for eventual future applications. Also, it should be emphasised that this type of methodology will become an useful tool only if it proves to be justified in the engineering practice.

Abstract This study aims to assess the efficiency of the fossil fuel taxation scheme currently in effect in Switzerland. To this end, the concept of implicit CO2 prices is introduced, based on which prices for different fossil fuel uses are derived. Implicit CO2 prices are defined as the difference between actual prices paid by consumers and efficient domestic fuel prices. Efficient domestic fuel prices, in turn, consist of private production costs, a uniform value added tax and only local external costs, not including external costs due to CO2 emissions and global climate change. The resulting prices differ substantially, which suggests that there is considerable cost-saving potential in reducing CO2 emissions in Switzerland. For passenger cars and air traffic, the implicit prices are negative. For these uses, higher fuel charges would therefore be beneficial from a purely domestic perspective, i.e., without considering the negative repercussions of global warming.

Abstract This paper analyzes the energy consumption behavior of urban households in Nepal during the energy crisis induced by the unofficial Indian economic blockade in 2015. Our findings suggest that urban households have a smaller marginal utility attached to the consumption of one more unit of electricity relative to other dirty energy sources like firewood. The 2015 economic blockade had some deteriorating impacts on a household fuel choice as they were forced to degrade to firewood for cooking. However, to some extent, the blockade also seems to have acted as a push factor for some households towards cleaner sources like electricity largely due to the distrust in the supply of petroleum fuels. There is a variation in energy consumption behavior of households, which is explained by different demographic and socioeconomic attributes of the household. Households with a better educated head and those headed by a female are generally more amenable to cleaner fuels such as electricity. On the other hand, larger households and those residing outside the Kathmandu valley are less likely to make the jump to cleaner fuels. House ownership and number of rooms used were found to have no significant association with the energy consumption behavior of households residing in urban Nepal.

Abstract Given the need to reduce the CO2 emissions coming from the manufacturing sector, it is important, for planning purposes, to know which countries and which manufacturing sub-sectors have the greatest potential for reducing energy use. Using data from the International Atomic Energy Agency and the United Nations Industrial Development Organization, the authors estimate trends in global decoupling of energy use and manufacturing value added, compare energy-use intensity in six country groups and estimate the potential for reducing energy use and CO2 emissions under two scenarios and compare selected sub-sector energy intensity and estimate the potential for reducing energy use CO2 emissions. The comparison of energy intensities across country groups and among countries suggests that there still remains significant potential to reduce energy use and associated CO2 emissions. The analysis of four sub-sectors in developing and transition economies also shows similar but varied potential for reducing energy use and associated CO2 emissions.