• Energy Research
• 13. Climate action close
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Abstract Canada has numerous climatic and geographical regions and the Canadian housing stock (CHS) is diversified in terms of vintage, geometry, construction materials, envelope, occupancy, energy sources and heating, ventilation and air conditioning system and equipment. Therefore, strategies to achieve net zero energy (NZE) status with the current stock of houses need to be devised considering the unique characteristics of the housing stock, the economic conditions and energy mix available in each region. Identifying and assessing pathways for converting existing houses to NZE buildings at the housing stock level is a complex and multifaceted problem and requires extensive analysis on the impact of energy efficiency and renewable/alternative energy technology retrofits on the energy use and GHG emissions of households. A techno-economic analysis of retrofitting renewable/alternative energy technologies in the CHS to reduce energy consumption and GHG emissions was conducted to develop strategies to achieve or approach NZE status for Canadian houses. The results indicate that substantial energy savings and GHG emission reductions are techno-economically feasible for the CHS through careful selection of retrofit options. While achieving large scale conversion of existing houses to NZEB is not feasible, approaching NZE status is a realistic goal for a large percentage of Canadian houses.

Abstract In this paper I present findings and insights from an empirical study of two case study solar farm developments from rural areas of the South West, UK. Drawing on a Habermasian theoretical frame, I examine local resident narratives that emerged through the local public sphere and how these formed discursive meanings that provided shared background social norms for residents towards the solar farm developments. The paper begins by operationalising Habermas's theoretical ideas for empirical research and situating the research within existing literature. The theoretical and methodological sections are followed by the examination of three local narratives that emerged: idealised rural land use, farming and income generation, and money making and the pursuit of profit. Such narratives are considered in view of public opportunities for robust dialogue and debate to judge the normative democratic character of the solar farm developments. The paper concludes that the community development offered significantly more discursive space for debate than the commercial development and increased the developments' overall democratic legitimacy. It is maintained that such a Habermasian theoretical frame adapted for empirical analysis is valuable for normatively assessing democratic processes which are needed in view of conceptually weak accounts of ‘energy democracy’.

This research examines the economic implications of different designs for a national low carbon fuel standard (NLCFS) for the road transportation sector. A NLCFS based on the average Carbon Intensity (CI) of all fuels sold generates an incentive for fuel suppliers to reduce the measured CI of their fuels. The economic impacts are determined by the availability of low carbon fuels, estimates of which can vary widely. Also important are the compliance path, reference level CI, and the design of the credit system, particularly the opportunities for trading and banking. To quantitatively examine the implications of a NLCFS, we created the Transportation Regulation and Credit Trading (TRACT) Model. With TRACT, we model a NLCFS credit trading system among profit maximizing fuel suppliers for light- and heavy-duty vehicle fuel use for the United States from 2012 to 2030. We find that credit trading across gasoline and diesel fuel markets can lower the average costs of carbon reductions by an insignificant amount to 98% depending on forecasts of biofuel supplies and carbon intensities. Adding banking of credits on top of trading can further lower the average cost of carbon reductions by 5%–9% and greatly reduce year-to-year fluctuations in credit prices.

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 China's electricity sector faces the challenge of managing cost increases, improving reliability, and reducing its environmental footprint even as operating conditions become more complex due to increasing renewable penetration, growing peak demand, and falling system load factors. Addressing these challenges will require changes in how power generation is planned, priced, and dispatched in China. This is especially true for natural gas generation, which is likely to play an important role in power systems worldwide as a flexible generation resource. Although natural gas is commonly perceived to be economically uncompetitive with coal in China, these perceptions are based on analysis that fails to account for the different roles that natural gas generation plays in power systems—baseload, load following, and peaking generation. Our analysis shows that natural gas generation is already cost-effective for meeting peak demand in China, resulting in improved capacity factors and heat rates for coal-fired generators and lower system costs. We find that the largest barrier to using natural gas for peaking generation in China is generation pricing, which could be addressed through modest reforms to support low capacity factor generation.

The UK government’s Clean Growth Strategy unambiguously described the decarbonisation of heat as the UK’s greatest policy and technical challenge in meeting our carbon targets. Maximising the potential for energy efficiency in the existing domestic stock is critical to the low-carbon heat transition. Good information exists on the technical potential for energy efficiency measures in the UK stock, however, a lack of knowledge about current stock conditions and in-use factors places considerable uncertainty on how much of this technical potential is achievable in practice. \ud This study uses data from the fifth carbon budget (CB5) policy projections and updates the in-use factors using measured data from the National Energy Efficiency Database (NEED). This results in a 26% shortfall by 2035 in the anticipated energy savings through cavity, solid wall, and loft insulation compared to what is assumed in the CB5 projections. This will have costly implications for meeting future carbon budgets. Risks and policy implications are discussed. The practical potential for energy efficiency measures beyond cavity, solid wall, and loft insulation is explored.

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 Since the introduction of Malaysia's own Four-Fuel Diversification Policies 1981, and the updated Five-Fuel Diversification Policies in 2001, no studies have been conducted to measure and evaluate the success and progress of these policies. This study aims to address this issue by quantitatively measuring the extent of fuel diversification in Malaysia since the conceptualisation of these policies in 1981 through the Herfindahl-Hirschman Index and supported by an analysis through the Shannon-Weiner Index. Statistical data from the Malaysia Energy Commission on the Primary Energy Supply and Final Energy Demand were chosen for this purpose. The findings suggest that whereas Malaysia has managed to reduce its over-dependency on crude oil/petroleum as its primary fuel, this dependency has been replaced partly by a dependency on natural gas, on the supply side. As for the demand side, the transportation sector's continuing dependency on petroleum has also affected the level of fuel diversification. Thus, the level of fuel diversification, while having shown improvement, was less than expected. Further incorporation of renewable energy in the future may hold the key to a genuine and more successful energy diversification for Malaysia.

Abstract We present a computationally-efficient optimization model that finds the least-cost generation unit expansion, commitment, and dispatch plan to serve hourly electricity demand and ancillary service requirements. We apply the model to a case study based on data from the electricity market in Texas (ERCOT) to analyze the market and investment impacts of several incentive mechanisms that support variable renewable energy (VRE) investments and carbon emission reductions. In contrast to many previous studies, the model determines least-cost VRE investments under different cost and incentive assumptions rather than analyzing scenarios where VRE expansion is pre-determined. We find that electricity prices can vary significantly under different incentive mechanisms, even when comparable generation portfolios result. Therefore, the preferred incentive mechanism depends on stakeholder objectives as well as the prevailing electricity market framework. Our results indicate that a carbon tax is more system cost-efficient for reducing emissions, while production and investment tax credits are more system cost-efficient for increasing VRE investments. Similarly, incentive mechanisms that reduce electricity prices may increase the need for separate revenue sufficiency mechanisms (e.g. a capacity market) more than a policy that increases electricity prices. Moreover, the impacts on consumer payments are not always aligned with changes in system costs. Overall, the analysis illustrates the importance of considering electricity market impacts in assessing the economic efficiency of VRE and carbon incentive mechanisms.