Cost-benefit analysis of domestic energy efficiency

There are a number of driving forces behind energy efficiency. In recent times, the Kyoto Protocol has been the most prominent in bringing energy efficiency to the fore. In some countries, the domestic sector has been highlighted as an area which has a significant potential for improvement. However, prior to the implementation of large-scale energy-efficiency programmes, it is important to evaluate whether they make economic sense. Heretofore, most economic evaluations of energy-efficiency programmes have concentrated purely on the associated costs of the programmes and the energy savings that result. At best, reductions in environmental benefits are also estimated, but rarely are other benefits calculated, such as increases in the levels of household comfort and improvements in human health. This paper endeavours to provide a template for ex ante economic evaluations of domestic energy-efficiency programmes. A comprehensive cost–benefit analysis of a programme to retrofit various energy-efficiency technologies and heating upgrades to the Irish dwelling stock is taken as a case study. The study demonstrates how energy savings, environmental benefits, and health and comfort improvements may be assessed. In so doing, it provides insights into the methodological difficulties and solutions for assessing the social efficiency of large-scale domestic energy-conservation projects.     

A review of energy use and energy efficiency technologies for the textile industry

The textile industry is a complicated manufacturing industry because it is a fragmented and heterogeneous sector dominated by small and medium enterprises (SMEs). There are various energy-efficiency opportunities that exist in every textile plant. However, even cost-effective options often are not implemented in textile plants mostly because of limited information on how to implement energy-efficiency measures. Know-how on energy-efficiency technologies and practices should, therefore, be prepared and disseminated to textile plants. This paper provides information on the energy use and energy-efficiency technologies and measures applicable to the textile industry. The paper includes case studies from textile plants around the world and includes energy savings and cost information when available. A total of 184 energy efficiency measures applicable to the textile industry are introduced in this paper. Also, the paper gives a brief overview of the textile industry around the world. An analysis of the type and the share of energy used in different textile processes is also included in the paper. Subsequently, energy-efficiency improvement opportunities available within some of the major textile sub-sectors are given with a brief explanation of each measure. This paper shows that a large number of energy efficiency measures exist for the textile industry and most of them have a low simple payback period.     

Jevons’ Paradox revisited: The evidence for backfire from improved energy efficiency

Beginning with William Stanley Jevons in 1865, a number of authors have claimed that economically justified energy-efficiency improvements will increase rather than reduce energy consumption. ‘Jevons Paradox’ is extremely difficult to test empirically, but could have profound implications for energy and climate policy. This paper summarises and critiques the arguments and evidence that have been cited in support of Jevons’ Paradox, focusing in particular on the work of Len Brookes and Harry Saunders. It identifies some empirical and theoretical weaknesses in these arguments, highlights the questions they raise for economic orthodoxy and points to some interesting parallels between these arguments and those used by the ‘biophysical’ school of ecological economics. While the evidence in favour of ‘Jevons Paradox’ is far from conclusive, it does suggest that economy-wide rebound effects are larger than is conventionally assumed and that energy plays a more important role in driving productivity improvements and economic growth than is conventionally assumed.     

Technologies to achieve demand reduction and microgeneration in buildings

Buildings account for almost half of UK carbon dioxide emissions, and energy demand in buildings continues to grow. In the context of economic growth, population growth, increasing demand for homes and commercial floor space, and increasing demand for energy services, energy use and probably carbon emissions look set to continue to increase unless there is significant change. This paper outlines enabling technologies that may permit a step-change reduction in energy demand from buildings through the application of next-generation information metering and control, energy-efficiency products and microgeneration. It covers both residential and non-residential buildings. This wide approach has been adopted because technologies and trends tend to migrate from one building sector to another, as, for example, IT has moved from offices into homes and lighting trends from offices and retail into homes. It covers technologies that can be used in new build or major refurbishment. Much of the need for change involves the better use of known technology, and some involves changing behaviour. Some behaviour depends on new technologies such as metering. Understanding how technological innovations are taken up (e.g. stock turnover issues, as well as how technical change occurs) and the economics of new technologies is as important as the technologies themselves.     

Perspectives on implementing energy efficiency in existing Swedish detached houses

In this study, we first analyse energy-efficiency measures in existing electrically heated houses in Sweden from a societal economic perspective. Measures to a house envelopes and to energy supply chains are evaluated through a system analysis approach and we include the external costs of climate change and the effect of different Swedish climatic zones. We find that in a typical house from the 1970s, conversion from electric heating is highly motivated since the mitigation cost of conversion is lower than the estimated external costs of emitted CO₂. Both conversions and house envelope measures are more motivated in the northern part of the country, where there is a higher heat demand. A successful implementation of changes requires them to be attractive for consumers to adopt. We therefore secondly analyse the economic conditions for Swedish house owners to implement societal economic cost-efficient measures. We include the economic influence of an investment subsidy for heating system conversion, an income tax deduction for changing windows, customer electricity tax, real estate tax and of the cost of purchased energy from different energy suppliers. Apart from the economics, several other factors affect a house owner's decision to change heating systems. We therefore thirdly analyse house owners’ perceptions of different heating supply alternatives based on the results of two comprehensive questionnaires. These different perspectives are combined in a discussion whether the studied policy instruments encourage house owners to implement changes in accordance with the energy-efficiency goals of decision makers. We find that the investment subsidy could be useful to break the lock-in effect of resistance heaters, which house owners seemed to experience. The electricity tax makes heating systems in line with national goals more competitive and efficiency measures to the house envelope more profitable. The reduction of the electricity tax in the northern part of the country has the opposite effect. Also, the increase in real estate tax when implementing energy-efficiency measures gives a contradictory message. The price differences between energy suppliers has a larger impact on the house owners’ economic conditions than both subsidies and tax rate changes, and possibly also affect the house owner's attitudes towards various systems.     

How to support growth with less energy

Economic growth with less use of primary energy and lower carbon emissions can be achieved through existing and new technical solutions and by behavioural change. These solutions secure growth with lower carbon emissions and reduce our dependence on oil and gas, thereby improving security of energy supply. The implication of the Energy White Paper goal of reducing CO₂ emissions by 60% by 2050 is a six-fold reduction in the carbon intensity of the UK economy, and further reductions will be needed. Efficient and renewable supply, distribution and end-use technologies have multiplicative effects, but constraining demand growth is crucial to the rate and extent of reducing emissions. Goals include reductions in the energy intensity of transport and buildings and in the energy intensity of major building materials with the development of technologies and demand management. There will also need to be infrastructural developments that encourage low-carbon technologies and increase energy diversity and security of supply, better low-carbon planning and improved co-ordination of planning, building control and other policy tools, better monitoring and feedback on the real performance of energy-efficient technologies, and improved capabilities to model whole energy systems, including demand and supply as well as social and economic issues.     

太阳能光热发电技术综述

从经济、环境和社会角度来看,目前的能源供应和使用趋势明显不是可持续的。太阳能聚光光热发电（CSP）技术给拥有充足光照资源的地区带来了希望。太阳能聚光光热发电（CSP）技术可为法向直接日射辐照度（DNI）强的地区提供低碳、可再生能源。该文在简要分析太阳能光热发电技术现状基础上,介绍了太阳能光热发电当前的主要技术以及如何提高太阳能热发电实用性的相关技术。通过使用储热系统、后备燃料或带燃料的混合动力发电可以提高太阳能热发电的实用性。     

Future energy efficiency improvements within the US department of defense: Incentives and barriers

The present work describes the military impact of improved efficiency and then highlights existing technological, political, and financial barriers for improving overall energy efficiency. As the largest user of energy within the US government, the Department of Defense (DOD) is rightly concerned that any disruption to the nation's energy supply may have an extremely adverse impact on its military capabilities. The total solution to providing energy security will be multi-faceted with progress required on many fronts. Increasing the use of renewable energy sources and improving energy storage capabilities are gradually creating a positive impact, but investing in improving the overall efficiency of the military effort provides both immediate and long-lasting payback. One might suppose that a decrease in the energy used by the DOD should lead to a decrease in military capability, but historical data proves otherwise. It is shown that the military has additional impetus, compared to civilian consumers, to pursue energy-efficiency improvements. Many tools are available to help the DOD along this path, yet there remain obstacles which must first be identified and analyzed as discussed herein.     

Renewable energy-to-green hydrogen: A review of main resources routes,processes and evaluation

Hydrogen is a fuel with enormous potential to meet the need for ecologically friendly energy sources. Hydrogen from renewable sources can reroute renewable sources out of landfills and other expensive treatments. Despite this, several renewables-to-hydrogen methods are generally in their infancy and need substantial work to be recognised as a crucial aspect of the approach to sustainability. This analysis reviews renewables-to-hydrogen technologies extensively from technical, economic, ecological, and social perspectives. Five technologies current states were summarised, emphasising developing developments in published literature. Several information gaps, research directions, opportunities, and potential improvements were also found with efficiency, greenhouse gas emissions, manufacturing costs, hydrogen-based mobility, and public acceptability. Incorporating renewable energy into processes, reducing production costs, and addressing the absence of techno-economic and ecological analyses of renewables-to-hydrogen pathways are the most urgent research requirements identified in this study. The results of this study will help make it easier to use hydrogen in extensive energy facilities in a safe way.     

Energy efficiency and economic growth: A retrospective CGE analysis for Canada from 2002 to 2012

The efficiency with which energy is used by firms and households has widespread impacts on economic activity, which in turn has implications for environmental quality and energy security. Using a novel method that could be used for other jurisdictions, we estimate the impact of energy efficiency improvements on Canadian GDP, employment, economic structure, and welfare from 2002 to 2012. We use a counterfactual back-casting method with a sectorally and regionally disaggregated dynamic recursive computable general equilibrium model, in effect “reverse calibrating” the model from observed data to isolate the effects of energy efficiency. We estimate that total energy efficiency improvements in Canada during this period increased GDP by 2.0% (0.19%/yr), employment by 2.5% (0.24%/yr) and household welfare by about 1.5% (0.15%/yr). Additionally, energy efficiency improvements reoriented economic structure from capital intense energy supply sectors to relatively labour intense manufacturing and services. We find evidence of widespread “rebound” on an energy expenditure basis across most sectors, and “backfire” (where energy efficiency leads to absolute energy use increases) in oil sands in situ extraction, bitumen upgrading, shale gas extraction, lime production, pulp & paper, and metal smelting, but overall energy use is reduced by energy efficiency improvements over this period.     

Energy conservation in the industrial sector of developing countries

This paper begins by examining the most energy-intensive industries and methods by which fuel efficiency can be improved. Next the author analyses the economics of energy conservation using specific case studies drawn from India. It is shown that investing in energy efficiency is more economical Btu per Btu than investing in the enhancement of domestic energy resources. The author also assesses changes in the economics of conservation for private firms when there are government incentives. Finally government policies that can overcome economic and non-economic disincentives for investing in energy conservation are examined.     

The macroeconomic rebound effect and the world economy

This paper examines the macroeconomic rebound effect for the global economy arising from energy-efficiency policies. Such policies are expected to be a leading component of climate policy portfolios being proposed and adopted in order to achieve climate stabilisation targets for 2020, 2030 and 2050, such as the G8 50% reduction target by 2050. We apply the global “New Economics” or Post Keynesian model E3MG, developing the version reported in IPCC AR4 WG3. The rebound effect refers to the idea that some or all of the expected reductions in energy consumption as a result of energy-efficiency improvements are offset by an increasing demand for energy services, arising from reductions in the effective price of energy services resulting from those improvements. As policies to stimulate energy-efficiency improvements are a key part of climate-change policies, the likely magnitude of any rebound effect is of great importance to assessing the effectiveness of those policies. The literature distinguishes three types of rebound effect from energy-efficiency improvements: direct, indirect and economy-wide. The macroeconomic rebound effect, which is the focus of this paper, is the combination of the indirect and economy-wide effects. Estimates of the effects of no-regrets efficiency policies are reported by the International Energy Agency in World Energy Outlook, 2006, and synthesised in the IPCC AR4 WG3 report. We analyse policies for the transport, residential and services buildings and industrial sectors of the economy for the post-2012 period, 2013–2030. The estimated direct rebound effect, implicit in the IEA WEO/IPCC AR4 estimates, is treated as exogenous, based on estimates from the literature, globally about 10%. The total rebound effect, however, is 31% by 2020 rising to 52% by 2030. The total effect includes the direct effect and the effects of (1) the lower cost of energy on energy demand in the three broad sectors as well as of (2) the extra consumers’ expenditure from higher (implicit) real income and (3) the extra energy-efficiency investments. The rebound effects build up over time as the economic system adapts to the higher real incomes from the energy savings and the investments.     

Role of exergy in increasing efficiency and sustainability and reducing environmental impact

The use of exergy is described as a measure for identifying and explaining the benefits of sustainable energy and technologies, so the benefits can be clearly understood and appreciated by experts and non-experts alike, and the utilization of sustainable energy and technologies can be increased. Exergy can be used to assess and improve energy systems, and can help better understand the benefits of utilizing green energy by providing more useful and meaningful information than energy provides. Exergy clearly identifies efficiency improvements and reductions in thermodynamic losses attributable to more sustainable technologies. A new sustainability index is developed as a measure of how exergy efficiency affects sustainable development. Exergy can also identify better than energy the environmental benefits and economics of energy technologies. The results suggest that exergy should be utilized by engineers and scientists, as well as decision and policy makers, involved in green energy and technologies in tandem with other objectives and constraints.     

Decision-making in electrical appliance use in the home

This paper presents the results of a survey as well as an argument from the viewpoint of behavioral economics with the aim of clarifying how consumers make decisions about electrical appliance use in the home. A survey of consumers showed that most have little awareness of the energy efficiency of appliances, the price of the services produced by electrical appliances, or electricity rates. These findings indicate that price does not function as a signal in electricity consumption through electrical appliance use. Rather, we found that consumer decision-making in electricity consumption is dependent on the characteristics of the particular electrical appliances they use. Additionally, we argue that the payment system for home electricity consumption plays an important role in decision-making, causing biases due to aspects of human psychology discussed here in terms of satisficing and heuristics, payment decoupling, and budgeting. We conclude that decision-making about electrical appliance use and electricity consumption in the home is not always rational and is affected both by the particular characteristics of appliances and the payment system for electricity consumption along with human psychology.     

Energy efficiency and environmental pollution of brickmaking in China

This paper examines the technologies, energy use and environmental pollution of brickmaking in China. China's brick industry is characterized by its enormous size and large number of small producers with outdated technologies. More than 90% of the bricks are fired in annular kilns with coal as the predominant fuel, resulting in substantial SO₂, CO₂ and other air emissions. Based on available energy coefficients and emission factors, coal use for brickmaking and associated SO₂ and CO₂ emissions are estimated. Government policies and options for energy-efficiency improvements in brickmaking are also discussed.     

Potential for reduction of CO2 emissions and a low-carbon scenario for the Brazilian industrial sector

This study discusses the potential for reducing carbon dioxide (CO₂) emissions from energy use by the Brazilian industrial sector in a low-carbon scenario over a horizon until 2030. It evaluates the main mitigation measures, the quantities of this gas avoided and the respective abatement costs. In relation to a benchmark scenario projected for 2030, the reduction of CO₂ emissions estimated here can reach 43%, by adopting energy-efficiency measures, materials recycling and cogeneration, shifting from fossil fuels to renewables or less polluting energy sources and eliminating the use of biomass from deforestation. The set of measures studied here would bring emissions reductions of nearly 1.5 billion tCO₂ over a period of 20 years (2010–2030). This would require huge investments, but the majority of them would have significant economic return and negative abatement costs. However, in many cases there would be low economic attractiveness and higher abatement costs, thus requiring more effective incentives. Brazil is already carrying out various actions toward the mitigation measures proposed here, but there are still substantial barriers to realize this potential. Therefore, a collective effort from both the public and private sectors is needed for the country to achieve this low-carbon scenario.     

Potential impact of transition to a low-carbon transport system in Iceland

This paper develops a system dynamics model of Iceland׳s energy sector (UniSyD_IS) that is based on the UniSyD_NZ model of New Zealand׳s energy economy. The model focuses on the energy supply sector with endogenous representation of road transport energy demand. Equilibrium interactions are performed across electricity, hydrogen, biofuels, and road transport sectors. Possible transition paths toward a low-carbon transport in Iceland are explored with implications for fuel demand, greenhouse gas (GHG) emissions and associated costs. The consumer sector simulates the long-term evolution of light and heavy-duty vehicles through a vehicle choice algorithm that accounts for social influences and consumer preferences. Through different scenarios, the influences of four fundamental driving factors are examined. The factors are oil price, carbon tax, fuel supply-push, and government incentives. The results show that changes in travel demand, vehicle technologies, fuel types, and efficiency improvements can support feasible transition paths to achieve sufficient reduction in GHG for both 4 °C and 2 °C climate scenarios of the Nordic Energy Technology Perspectives study. Initial investment in supply infrastructure for alternative fuels will not only mitigate GHG emissions, but also could provide long-term economic benefits through fuel cost saving for consumers and reduced fuel import costs for government.     

发展低碳经济呼唤科技创新

为保障我国经济的可持续健康发展,需要全面提升我国的经济发展质量与生态环境质量,提出发展低碳经济的客观要求。低碳经济被认为要求用尽量少的能源消费和二氧化碳排放量来保证经济社会的持续发展。文章从节能减排技术、清洁能源技术和碳捕获技术等三个方面,探讨了我国发展低碳经济对科技进步的现实需求。