Variables affecting energy efficiency and CO2 emissions in the steel industry

Specific energy consumption (SEC) is an energy efficiency indicator widely used in industry for measuring the energy efficiency of different processes. In this paper, the development of energy efficiency and CO₂ emissions of steelmaking is studied by analysing the energy data from a case mill. First, the specific energy consumption figures were calculated using different system boundaries, such as the process level, mill level and mill site level. Then, an energy efficiency index was developed to evaluate the development of the energy efficiency at the mill site. The effects of different production conditions on specific energy consumption and specific CO₂ emissions were studied by PLS analysis. As theory expects, the production rate of crude steel and the utilisation of recycled steel were shown to affect the development of energy efficiency at the mill site. This study shows that clearly defined system boundaries help to clarify the role of on-site energy conversion and make a difference between the final energy consumption and primary energy consumption of an industrial plant with its own energy production.     

Implications of process energy efficiency improvements for primary energy consumption and CO2 emissions at the national level

The improvement of energy efficiency is seen as one of the most promising measures for reducing global CO₂ emissions. However, the emission reduction potential may seem different from the industrial plant and policy-maker’s perspectives. This paper evaluates the influences of process heat conservation on CHP electricity production, primary energy consumption and CO₂ emissions from both the mill site and national perspectives. The results indicate that heat conservation in an industrial process may lead to varying results in primary energy consumption and CO₂ emissions, depending on the form of marginal heat production used at the mill site. In the CHP process, reduction of the heat load lowers electricity production, and this reduction may have to be compensated for at the national level. Therefore, the energy conservation potential in industry has to be evaluated by taking into account the connections to the outside society, which means that a wider system boundary than a mill site has to be used. This study demonstrates by theoretical analysis and case mill studies the magnitude of the effects of system boundary definition when evaluating the contribution of an individual energy efficiency investment towards fulfilling the commitment to reduce CO₂ emissions at the national level.     

Light vehicle energy efficiency programs and their impact on Brazilian CO2 emissions

This paper analyses the impact of an energy efficiency program for light vehicles in Brazil on emissions of carbon dioxide (CO₂), the main greenhouse gas in the atmosphere. Several energy efficiency programs for light vehicles around the world are reviewed. The cases of Japan and Europe were selected for presentation here given their status as current and future world leaders in the control of passenger vehicle fuel consumption. The launching of the National Climate Change Plan and the pressure on the Brazilian car industry due to the world financial crisis make it a good time for the Brazilian government to implement such a program, and its various benefits are highlighted in this study. Three scenarios are established for Brazil covering the 2000–2030 period: the first with no efficiency goals, the second with the Japanese goals applied with a 10 years delay, and the third, with the Japanese goals applied with no delay. The consequences of a vehicular efficiency program and its middle and long-term effects on the consumption of energy and the CO₂ emissions are quantified and discussed. The simulation results indicate that efficiency goals may make an important contribution to reducing vehicular emissions and fuel consumption in Brazil, compared to a baseline scenario.     

An econometric study of CO2 emissions,energy consumption,income and foreign trade in Turkey

This study attempts to empirically examine the dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time-series data for the period 1960–2005. This research tests the interrelationship between the variables using the bounds testing to cointegration procedure. The bounds test results indicate that there exist two forms of long-run relationships between the variables. In the case of first form of long-run relationship, carbon emissions are determined by energy consumption, income and foreign trade. In the case of second long-run relationship, income is determined by carbon emissions, energy consumption and foreign trade. An augmented form of Granger causality analysis is conducted amongst the variables. The long-run relationship of CO₂ emissions, energy consumption, income and foreign trade equation is also checked for the parameter stability. The empirical results suggest that income is the most significant variable in explaining the carbon emissions in Turkey which is followed by energy consumption and foreign trade. Moreover, there exists a stable carbon emissions function. The results also provide important policy recommendations.     

A decomposition analysis of CO2 emissions from energy use: Turkish case

Environmental problems, especially “climate change” due to significant increase in anthropogenic greenhouse gases, have been on the agenda since 1980s. Among the greenhouse gases, carbon dioxide (CO₂) is the most important one and is responsible for more than 60% of the greenhouse effect. The objective of this study is to identify the factors that contribute to changes in CO₂ emissions for the Turkish economy by utilizing Log Mean Divisia Index (LMDI) method developed by Ang (2005) [Ang, B.W., 2005. The LMDI approach to decomposition analysis: a practical guide. Energy Policy 33, 867–871]. Turkish economy is divided into three aggregated sectors, namely agriculture, industry and services, and energy sources used by these sectors are aggregated into four groups: solid fuels, petroleum, natural gas and electricity. This study covers the period 1970–2006, which enables us to investigate the effects of different macroeconomic policies on carbon dioxide emissions through changes in shares of industries and use of different energy sources. Our analysis shows that the main component that determines the changes in CO₂ emissions of the Turkish economy is the economic activity. Even though important changes in the structure of the economy during 1970–2006 period are observed, structure effect is not a significant factor in changes in CO₂ emissions, however intensity effect is.     

Decomposing international polarization of per capita CO2 emissions

The aim of this paper is to analyze the international polarization of per capita CO₂ emissions with exogenous groups based on the Z–K measure (Zhang and Kanbur, 2001), whose main differential advantage lies on its factor-decomposability. In particular, we propose to use the factor decomposition based on Kaya (1989) by applying the methodology suggested by Duro and Padilla (2006). The main empirical results derived can be summarized as follows. First, the international polarization of emissions has significantly decreased over time during the period 1971–2006, when regional sets of nations based on the IEA structure are used; secondly, this decrease can be almost exclusively based on the reduction of the average dissimilarities among sets of countries and not due to a within-group cohesion process. Lastly, this reduction can be mainly attributed to the role of the affluence factor, and to a lesser extent, to the energy intensities. Thus, and given the values achieved for the different components, it seems that further reductions in the international polarization will continue be based on the economic convergence among groups.     

Energy consumption and related CO2 emissions in five Latin American countries: Changes from 1990 to 2006 and perspectives

This study examines the primary energy consumption and energy-related CO₂ emissions in Argentina, Brazil, Colombia, Mexico and Venezuela during the period 1990-2006. It also reviews important reforms in the energy sector of these countries as well as the promotion of energy efficiency (EE) and renewable energy sources (RES). Using a decomposition analysis, results indicate that even though significant reductions in energy intensity have been achieved in Colombia, Mexico and in a lesser extent in Brazil and Argentina, the reduction of CO₂ emissions in these countries has not been significant due to an increased dependence on fossil fuels in their energy mix. Although the Latin American region has an important experience in the promotion of EE programs and renewable sources, the energy agenda of the examined countries focused mostly on the energy reforms during the analyzed period. The policy review suggests that further governmental support and strong public policies towards a more sustainable energy path are required to encourage a low carbon future in the region.     

The role of energy efficiency in reducing Scottish and UK CO2 emissions

In 2003, the UK government launched its long-anticipated White Paper on energy, the centrepieces of which were ambitious targets for the production of electricity from renewable technologies and the long-term aspiration of a 60% reduction in UK greenhouse gas emissions by 2050. In the White Paper it was recognised that such a dramatic reduction in emissions will require significant changes in the way in which energy is produced and used. However there has been a general failure to recognise the fact that in order to meet emissions targets, the UK will have to significantly reduce its energy consumption; this is not helped by the general misconception in the UK that reductions in CO₂ emissions will occur simply by increasing the production of electricity from renewable sources.

Specifically, this paper highlights the current trends in renewables deployment and energy demand, with a specific focus on Scotland, where the authorities have set more ambitious renewables targets than the rest of the UK. As will be demonstrated in this paper, without energy demand reduction, the deployment of renewables alone will not be sufficient to curtail growth in UK CO₂ emissions. This is illustrated using a case study of the Scottish housing sector; whilst this case study is necessarily local in scope, the results have global relevance. The paper will also address the magnitude of energy savings required to bring about a reduction in emissions and assesses the status of the policies and technologies that could help bring such reductions about.     

Environment Kuznets curve for CO2 emissions: A cointegration analysis for China

This study examines the long-run relationship between carbon emissions and energy consumption, income and foreign trade in the case of China by employing time series data of 1975–2005. In particular the study aims at testing whether environmental Kuznets curve (EKC) relationship between CO₂ emissions and per capita real GDP holds in the long run or not. Auto regressive distributed lag (ARDL) methodology is employed for empirical analysis. A quadratic relationship between income and CO₂ emission has been found for the sample period, supporting EKC relationship. The results of Granger causality tests indicate one way causality runs through economic growth to CO₂ emissions. The results of this study also indicate that the carbon emissions are mainly determined by income and energy consumption in the long run. Trade has a positive but statistically insignificant impact on CO₂ emissions.     

The impact of lifestyle on energy use and CO2 emission: An empirical analysis of China's residents

Based on the application of a Consumer Lifestyle Approach (CLA), this paper quantifies the direct and indirect impact of lifestyle of urban and rural residents on China's energy use and the related CO₂ emissions during the period 1999–2002. The results show that approximately 26 per cent of total energy consumption and 30 per cent of CO₂ emission every year are a consequence of residents’ lifestyles, and the economic activities to support these demands. For urban residents the indirect impact on energy consumption is 2.44 times greater than the direct impact. Residence; home energy use; food; and education, cultural and recreation services are the most energy-intensive and carbon-emission-intensive activities. For rural residents, the direct impact on energy consumption is 1.86 times that of the indirect, and home energy use; food; education, and cultural recreation services; and personal travel are the most energy-intensive and carbon-emission-intensive activities. This paper provides quantitative evidence for energy conservation and environmental protection focused policies. China's security for energy supply is singled out as a serious issue for government policy-makers, and we suggest that government should harmonize the relationships between stakeholders to determine rational strategies.     

Modeling the CO2 emissions, energy use, and economic growth in Russia

This paper applies the co-integration technique and causality test to examine the dynamic relationships between pollutant emissions, energy use, and real output during the period between 1990 and 2007 for Russia. The empirical results show that in the long-run equilibrium, emissions appear to be energy use elastic and output inelastic. This elasticity suggests high energy use responsiveness to changes in emissions. The output exhibits a negative significant impact on emissions and does not support EKC hypothesis. These indicate that both economic growth and energy conservation policies can reduce emissions and no negative impact on economic development. The causality results indicate that there is a bidirectional strong Granger-causality running between output, energy use and emissions, and whenever a shock occurs in the system, each variable makes a short-run adjustment to restore the long-run equilibrium. The average speed of adjustment is as low as just over 0.26 years. Hence, in order to reduce emissions, the best environmental policy is to increase infrastructure investment to improve energy efficiency, and to step up energy conservation policies to reduce any unnecessary waste of energy. That is, energy conservation is expected to improve energy efficiency, thereby promoting economic growth.     

Energy consumption and CO2 emissions of the European glass industry

An in-depth analysis of the energy consumption and CO₂ emissions of the European glass industry is presented. The analysis is based on data of the EU ETS for the period 2005–2007 (Phase I). The scope of this study comprises the European glass industry as a whole and its seven subsectors. The analysis is based on an assignment of the glass installations (ca. 450) within the EU ETS to the corresponding subsectors and an adequate matching of the respective production volumes. A result is the assessment of the overall final energy consumption (fuel, electricity) as well as the overall CO₂ emissions (process, combustion and indirect emissions) of the glass industry and its subsectors in the EU25/27. Moreover, figures on fuel mix as well as fuel intensity and CO₂ emissions intensity (i.e. carbon intensity) are presented for each of the subsectors on aggregated levels and for selected EU Member States separately. The average intensity of fuel consumption and direct CO₂ emissions of the EU25 glass industry decreased from 2005 to 2007 by about 4% and amounted in 2007 to 7.8 GJ and 0.57 _tCO₂${\mathrm{t}}_{{\text{CO}}_{\mathrm{2}}}$ per tonne of saleable product, respectively. The economic energy intensity was evaluated with 0.46 toe/1000€ (EU27).     

Driving forces of residential CO2 emissions in urban and rural China: An index decomposition analysis

There exist many differences between urban and rural China among which residential CO₂ emissions arising from energy consumption is a major one. In this paper, we estimate and compare the energy related CO₂ emissions from urban and rural residential energy consumption from 1991 to 2004. The logarithmic mean Divisia index decomposition analysis is then applied to investigate the factors that may affect the changes of the CO₂ emissions. It is found that energy intensity and the income effects, respectively, contributed most to the decline and the increase of residential CO₂ emissions for both urban and rural China. In urban China, the population effect was found to contribute to the increase of residential CO₂ emissions with a rising tendency. However, in rural China, the population effect for residential CO₂ emissions kept decreasing since 1998.     

Multi-regional input–output model for regional energy requirements and CO2 emissions in China

In this study, China is divided into eight economic regions. A multi-regional input–output model for energy requirements and CO₂ emissions in China was established, and employed to perform scenario and sensitivity analysis for each economic region in year 2010 and 2020. Results show that up to year 2020, improvement in energy end-use efficiency for each region could generate intra-regional energy savings. Therefore, continuing efforts should be taken to advance improvements of energy end-use efficiency for each region. At the national level, the effectiveness of inter-regional energy transfers, and efficiency improvements in Central and Northwest regions should be accelerated as much as possible. However, population growth will be an obvious driving force for additional energy requirements and cause greater CO₂ emissions across all regions. This demand will increase with the growth of the economy and improvement in household incomes. Population growth in one region will not only significantly affect energy requirements of the region itself, but also drive up energy requirements of the other regions. During this important period in time when China is making efforts to build a well-rounded society, the basic state policy of family planning should be enforced for each region. Model results indicate that there exists relative error between emissions caused by a region and emissions emitted by that region. Different identification of responsibility will have understandable different impacts on most regions in environmental policy reform.     

Decomposition of CO2 emissions change from energy consumption in Brazil: Challenges and policy implications

This study evaluates the changes in CO₂ emissions from energy consumption in Brazil for the period 1970–2009. Emissions are decomposed into production and consumption activities allowing computing the full set of energy sources consumed in the country. This study aims to develop a comprehensive and updated picture of the underlying determinants of emissions change from energy consumption in Brazil along the last four decades, including for the first time the recently released data for 2009. Results demonstrate that economic activity and demographic pressure are the leading forces explaining emission increase. On the other hand, carbon intensity reductions and diversification of energy mix towards cleaner sources are the main factors contributing to emission mitigation, which are also the driving factors responsible for the observed decoupling between CO₂ emissions and economic growth after 2004. The cyclical patterns of energy intensity and economy structure are associated to both increments and mitigation on total emission change depending on the interval. The evidences demonstrate that Brazilian efforts to reduce emissions are concentrated on energy mix diversification and carbon intensity control while technology intensive alternatives like energy intensity has not demonstrated relevant progress. Residential sector displays a marginal weight in the total emission change.     

Uncertain long-run emissions targets,CO2 price and global energy transition: A general equilibrium approach

The persistent uncertainty about mid-century CO₂ emissions targets is likely to affect not only the technological choices that energy-producing firms will make in the future but also their current investment decisions. We illustrate this effect on CO₂ price and global energy transition within a MERGE-type general-equilibrium model framework, by considering simple stochastic CO₂ policy scenarios. In these scenarios, economic agents know that credible long-run CO₂ emissions targets will be set in 2020, with two possible outcomes: either a “hard cap” or a “soft cap”. Each scenario is characterized by the relative probabilities of both possible caps. We derive consistent stochastic trajectories—with two branches after 2020—for prices and quantities of energy commodities and CO₂ emissions permits. The impact of uncertain long-run CO₂ emissions targets on prices and technological trajectories is discussed. In addition, a simple marginal approach allows us to analyze the Hotelling rule with risk premia observed for certain scenarios.     

The impact of household consumption on energy use and CO2 emissions in China

In this paper, the consumer lifestyle approach is applied to analyze the impact of consumption by urban and rural households on energy use and CO₂ emissions for different regions and income levels in China. Grey Model is used to compare the relationship between energy consumption, consumption expenditure and CO₂ emissions for different lifestyles. The results show that direct energy consumption is diverse for urban households and simple for rural households in China. Direct energy consumption and CO₂ emissions are increasing faster for urban than for rural households. Indirect energy consumption and CO₂ emissions for urban households are much greater than the direct consumption values. The total indirect energy consumption and CO₂ emissions differ by regions and the structures are different, but the latter differences are not obvious. The impact of household income is enormous. Indirect energy consumption and CO₂ emissions are higher for high-income than for low-income households. The structural difference for indirect energy consumption and CO₂ emissions for households with different income levels is significant. The higher the income, the more diverse is the energy consumption and CO₂ emission structure. The structures for indirect energy use and CO₂ emissions are diverse for urban households, but simple for rural households.     

CO2 and pollutant emissions from passenger cars in China

In this paper, CO₂ and pollutant emissions of PCs in China from 2000 to 2005 were calculated based on a literature review and measured data. The future trends of PC emissions were also projected under three scenarios to explore the reduction potential of possible policy measures. Estimated baseline emissions of CO, HC, NO_x, PM₁₀ and CO₂ were respectively 3.16×10⁶, 5.14×10⁵, 3.56×10⁵, 0.83×10⁴ and 9.14×10⁷ tons for China’s PCs in 2005 with an uneven distribution among provinces. Under a no improvement (NI) scenario, PC emissions of CO, HC, NO_x, PM₁₀ and CO₂ in 2020 are respectively estimated to be 4.5, 2.5, 2.5, 7.9 and 8.0 times that of 2005. However, emissions other than CO₂ from PCs are estimated to decrease nearly 70% by 2020 compared to NI scenario mainly due to technological improvement linked to the vehicle emissions standards under a recent policy (RP) scenario. Fuel economy (FE) enhancement and the penetration of advanced propulsion/fuel systems could be co-benefit measures to control CO₂ and pollutant emissions for the mid and long terms. Significant variations were found in PC emission inventories between different studies primarily due to uncertainties in activity levels and/or emission factors (EF).     

Environmental and economic benefits resulting from citizens’ participation in CO2 emissions trading: An efficient alternative solution to the voluntary compensation of CO2 emissions

Over the last few months in the emerging and lucrative carbon project market, a growing number of organizations have proposed to offset citizens’ greenhouse gas emissions. The target of these carbon-offset initiatives is to satisfy the increasing demand of individuals wishing to take part in the fight against climate change. In this paper, we review and criticize these carbon-offsetting programs in general terms. We then propose an alternative that, in our opinion, should prove to be a better solution for citizens who are willing to pay for protecting the environment. This alternative is to organize citizens’ participation in carbon emissions trading on a large scale in order to purchase and retire (destroy) CO₂ permits. To do so, a benevolent Regulator or non-governmental organization must correct certain CO₂ emissions market failures; this particularly concerns the high transaction costs, which represent an entry barrier and prevent citizens from purchasing and withholding permits. Based on theoretical findings, we demonstrate that implementing citizens’ participation in emissions trading is an economically efficient and a morally preferable option.     

Optimizing CO2 avoided cost by means of repowering

Repowering fossil fuel power plants by means of gas turbines has been traditionally considered to increase power output and reduce NOx and SO₂ emissions both at low cost and short outage periods. At present, reduction in CO₂ emissions represents an additional advantage of repowering due to partial fuel shift and overall efficiency increase. This is especially important in existing installations with a CO₂ reduction mandatory that should be carried out in a short time and in a cost-effective manner.