• Energy Research
• 13. Climate action close
• Energy Policy close

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 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 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.

Abstract Like cities, many large national parks in the United States often include “urban” visitor and residential areas that mostly demand (rather than produce) energy and key urban materials. The U.S. National Park Service has committed to quantifying and reducing scopes 1 and 2 emissions by 35% and scope 3 emissions by 10% by 2020 for all parks. Current inventories however do not provide the specificity or granularity to evaluate solutions that address fundamental inefficiencies in these inventories. By quantifying and comparing the importance of different inventory sectors as well as upstream and downstream emissions in Yosemite National Park (YNP), this carbon footprint provides a case study and potential template for quantifying future emissions reductions, and for evaluating tradeoffs between them. Results indicate that visitor-related emissions comprise the largest fraction of the Yosemite carbon footprint, and that increases in annual visitation (3.43–3.90 million) coincide with and likely drive interannual increases in the magnitude of Yosemite′s extended inventory (126,000–130,000 t CO2e). Given this, it is recommended that “per visitor” efficiency be used as a metric to track progress. In this respect, YNP has annually decreased kilograms of GHG emissions per visitor from 36.58 (2008) to 32.90 (2011). We discuss opportunities for reducing this measure further.

Abstract Technological progress is an effective way to improve electricity efficiency. Due to the existence of the rebound effect, it is of great significance to optimize the technical power saving policy by examining the rebound effect caused by different technological progress paths.Based on the panel data of electricity industry in 30 provinces of China from 1997 to 2013, this paper systematically examines the rebound effects of electricity consumption under the two sources of technological progress, namely independent innovation and technology import. Then, it discusses the impact of coal-electricity linkage policy. The empirical results are as follows: (1) without considering rebound effect, independent innovation significantly promotes electricity conservation, while the effects of technology import is not obvious; (2) when considering the rebound effect, electricity price declining driven by independent innovation is not conducive to electricity saving, while electricity price declining driven by technology import has an electricity-saving effect; (3)The coal-electricity linkage policy that began in 2004 not only reduced the rebound effect by increasing the flexibility of electricity prices to a certain extent and improved the electricity-saving effect of independent innovation, but also reduced the electricity-saving effect of technology import.

Abstract We evaluate the contribution of technological change in reducing CO 2 emissions in the Italian pulp and paper industry during the first and second phases of application of the European Union Emission Trading System (EU-ETS). We decompose the variation in emission and emission intensity into three different types of effects: a composition effect, a technique effect and a scale effect. The composition effect measures the change in emissions and emissions intensity due to a shift in production towards products that cause less emissions. The technique effect measures the change per each type of product, thereby accounting for technology improvements in the production of each type of good produced. The scale effect singles out the reduction in total emission due to an overall reduction in output. We show that the first phase of the application of EU-ETS has led to a reduction in both emissions and emission intensity due to the composition effect. The technological change has had a limited negative impact on emissions in the first phase, while in the second phase there has been limited technology improvement in the industry. However, the figures of the scale effect show that the larger reduction in emission is due to the overall decrease in output.

The climate agenda in France and several other countries is a complex combination of unilateral commitments with regional and international objectives. When analyzing national policies, the findings of worldwide analyses are of limited accuracy and the large aggregates on which they are built level out most local specificities and inertia. Specific. assessments are hence needed. This paper quantifies the dynamic evolution of carbon values for French climate and energy policy. Its time dependency over successive periods and the effects of setting intermediate targets are evaluated using a long-term optimization model. Addressing critical issues for France, we produce consistent energy, emissions and carbon value estimates with a 5-year time step. Our results are situated above the upper range of carbon value estimates of world models with an overlapping zone. We show that the official policy guideline value is only consistent with an optimistic combination of assumptions. The central estimates are 4 times greater than the guideline carbon value for 2050 and up to 14 times greater in 2020 because of short-term inertia that are costly to move. We also find that with intermediate objectives, the carbon value's dynamic is more than a simple upward curve and that its variability is itself time dependent