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Global Energy and CO2 to the Year 2050

Joe Edmonds and John Reilly

Year: 1983
Volume: Volume 4
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No3-3
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Abstract:
One of the important by-products of the combustion of fossil fuelsis carbon dioxide (C02), a nontoxic, colorless gas with a faintly pungent odor and acid taste. Carbon dioxide is not commonly thought of as apollutant. Rather, COs plays an important role in the determination of the global climate. The presence of C02 in the atmosphere produces a "greenhouse effect," allowing incoming sunlight to penetrate but trapping heatradiated back from earth. Man's ability to significantly affect COs levels through use of fossil fuel gives rise to the possibility of climate change atunprecedented rates.



Market Power in a System of Tradeable CO2 Quotas

Hege Westskog

Year: 1996
Volume: Volume17
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No3-6
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Abstract:
This paper examines the connection between market power and the size of efficiency loss in a market for tradeable CO2 permits. Countries, not firms, are the players in the market. A situation is analyzed where some of the, participants have market power, i.e., they can influence the price of a CO2 quota. Each country with market power decides how many quotas to buy or sell, given the other market power countries' sales or purchases of quotas, and the behavior of countries without market power. The latter countries act as price takers. The market equilibrium is compared to a cost effective market situation in order to quantify the efficiency loss resulting from market power.



CO2 Emission Reduction Costs in the Residential Sector: Behavioral Parameters in a Bottom-Up Simulation Model

Mark Jaccard, Alison Bailie and John Nyboer

Year: 1996
Volume: Volume17
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No4-5
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Abstract:
Cost estimates for reducing energy-related CO2 emissions vary with modeling assumptions and methods. Much debate has centered on the tendency for top-down models to suggest high costs and for bottom-up models to suggest low costs. This study incorporates behavioral parameters, derived from end-use equipment acquisition surveys, in a bottom-up simulation model ofthe residential sector in order to probe the basis for differing cost estimates and to test various policy suggestions. Simulating the effect of carbon taxes on a business as usual forecast, the results suggest that a CO2 tax will lead to significant net costs of adjustment if the factors leading to higher private discount rates reflect in part real costs and risks. The results also suggest that it may be in society's interest to pursue fuel switching policies with equal or greater vigour than energy efficiency improvements for the goal of reducing CO2emissions in the residential sector. As further research helps to distinguish the significance of these perceived costs and risks, and to refine projections of technology costs, the inputs to the model can be adjusted in order to refine the estimates for policy makers of CO2 reduction costs and of appropriate strategies for achieving reduction goals.



Energy Efficiency, Economic Efficiency and Future CO2 Emissions from the Developing World

Peter J. G. Pearson and Roger Fouquet

Year: 1996
Volume: Volume17
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No4-6
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Abstract:
This paper examines the potential role of energy efficiency and economic efficiency in influencing the future carbon dioxide emissions of developing countries. It explores and offers support to the hypothesis that, despite the potential value to the developing world of greater energy efficiency, if tight restrictions on global carbon dioxide emissions were considered necessary, efficiency alone could make only a limited contribution to restraining the projected growth of developing country emissions. This is because of the projected rapid energy growth rates in most developing countries, especially in the industrial sector and from fossil-fuelled electricity and transport, associated with growth in per capita incomes and population. The potential contribution of other possible measures to address global carbon dioxide emissions, particularly fuel switching, is also briefly examined.



CO2 Emissions Limits: Economic Adjustments and the Distribution of Burdens

Henry D. Jacoby, Richard S. Eckaus, A. Denny Ellerman, Ronald G. Prinn, David M. Reiner and Zili Yang

Year: 1997
Volume: Volume18
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-2
View Abstract

Abstract:
Policies under consideration within the Climate Convention would impose CO2 controls on only a subset of nations. A model of economic growth and emissions, coupled to an analysis of the climate system, is used to explore the consequences of a sample proposal of this type. The results show how economic burdens are likely to be distributed among nations, how carbon "leakage" may counteract the reductions attained, and how policy costs may be influenced by emissions trading. We explore the sensitivity of results to uncertainty in key underlying assumptions, including the influence on economic impacts and on the policy contribution to long-term climate goals.



Global Demand Growth of Power Generation, Input Choices and Supply Security

Kenichi Matsui

Year: 1998
Volume: Volume19
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No2-5
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Abstract:
The anticipated global demand growth for energy, and electricity in particular, is mapped for the coming 20 years. Five critical issues implied by this forecast are then spelled out: uncertainty, security of energy supply, energy financing, and the role of nuclear and renewable energy. Finally, based on a review of the energy revolutions which the human race has experienced during history, the paper sketches a long term energy future. It suggests the possibility of a new energy era in the 21st century with electricity and hydrogen as the main final energy and nuclear and renewables as the main primary energy, providing, coincidentally, a solution to the CO2 issues that loom so importantly at the end of the 20th century.



Barriers to Energy-Efficiency in Electricity Generation in India

Madhu Khanna and David Zilberman

Year: 1999
Volume: Volume20
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No1-2
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Abstract:
This paper explores the sources and magnitude of energy-inefficiency in the electricity generating sector in India and its implications for carbon emissions from this sector. An econometric methodology is developed to disaggregate and quantify the contribution of technical and institutional factors to this inefficiency. The analysis demonstrates the potential for institutional and economic policy reforms that provide incentives for the adoption of efficiency-enhancing production practices to reduce carbon emissions while increasing net electricity generation, even with the existing capital equipment.



Economic Development and the Structure of the Demand for Commercial Energy

Ruth A. Judson, Richard Schmalensee, and Thomas M. Stoker

Year: 1999
Volume: Volume20
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No2-2
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Abstract:
To deepen understanding of the relation between economic development and energy demand, this study estimates the relations between per-capita GDP5 and per-capita energy consumption in major economic sectors. Panel data covering up to 123 nations are employed, and measurement problems are treated both in dataset construction and in estimation. Time and country fixed effects are assumed, and flexible forms for income effects are employed. There are substantial differences among sectors in the structure of country, time, and income effects. In particular, the household sector's share of aggregate energy consumption tends to fall with income, the share of transportation tends to rise, and the share of industry follows an inverse-U pattern.



Decomposition of Aggregate CO2 Emissions in the OECD: 1960-1995

J. W. Sun

Year: 1999
Volume: Volume20
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No3-7
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Abstract:
This paper analyzes the change of aggregate CO2 emissions in the, OECD from 1960 to 1995 based on a complete decomposition approach. The, study indicates that developed countries have achieved a considerable decrease in their CO2 emissions mainly due to improved energy efficiency and fuel switching. However, some member countries of the OECD have found it difficult to achieve the environmental targets set at Rio de Janeiro in 1992, and should reconsider their energy policies in light of information given at the UN Climate, Change Conference in Kyoto.



Coal Subsidies and Global Carbon Emissions

Miles K. Light

Year: 1999
Volume: Volume20
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No4-5
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Abstract:
It has been suggested that eliminating coal production subsidies could substantially reduce global carbon emissions. This paper finds otherwise. Using a dynamic model of the international coal market, the paper investigates the consequences of subsidy elimination in a model incorporating sector specific capital constraints. In the short-run, following elimination of subsidies, producers with excess capacity divert domestic production into the export market, softening price increases. Over time, low cost exporters gain market share from the swing supplier, which further attenuates the market response to subsidy elimination. Given this market structure, production subsidy elimination in Europe and Japan may reduce world steam coal demand by as little as 0.5%, and global CO2 emissions by only 0.2




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