Asian energy and environmental policy: Promoting growth while preserving the environment

Asia has experienced spectacular economic growth over the past two decades. However, this economic progress has come at a high cost. It has led to unprecedented environmental consequences. So this region needs to shift the conventional pattern of “develop first and then treat the pollution” to a trajectory of sustainable development. To that end, this paper examines a variety of policy responses, at national, regional and international levels, to deal with growing concerns about the environmental challenges in Asia. In the context of national responses, special attention is paid to the following issues: coordination between the central and local governments, market-based environmental instruments and industrial policies, tougher emissions standards for mobile and stationary sources and fuel quality, policies to promote energy efficiency and the use of clean energy and biofuels, the integration of environmental policies with economic and sectoral policies, and engagement of the private sector through e.g., ecolabelling, green government procurement, corporate ratings and disclosure programs, and drawing the support of financial institutions to promote improved corporate environmental performance. The paper concludes that having the right policy mix, coupled with strengthened cooperation at national, local and regional levels, will ensure continuing economic growth in the region without compromising its limited ecological-carrying capacity and environmental quality.     

Transforming shortcomings into opportunities: Can market incentives solve Lebanon's energy crisis?

Over the past decades Lebanon's energy sector has been largely ignored and this has led to high economic and environmental costs. The sector is characterized by electricity poverty, an expanding and mainly unregulated transport sector and a lack of energy savings spanning through all sectors of the economy. Recently, the Government of Lebanon has committed to increase the share of renewable energy to 10% of the total energy supply by 2013 and to 12% by the year 2020; it also aims at reducing energy consumption by 6% by the year 2013. This paper aims at contributing to the formulation of a more comprehensive energy strategy for Lebanon by analyzing the recent changes in policy direction and by recommending legal, regulatory and policy measures in order to transform current shortcomings into opportunities allowing the country to become a regional ‘success story’ in the deployment of renewable energy and energy efficiency.     

Policy issues in improving energy efficiency

Today many urgent policy issues need addressing within the overall topic of improving energy efficiency. Also, they need to be addressed at many levels in society, each level possibly requiring a different approach: the overall national economy; the national energy sector; the energy utility; and the energy consumer. This article looks at some of the more important common issues, which apply at all levels, and gives some options on how these issues might be addressed.     

Application and development of solar energy in building industry and its prospects in China

China is the second largest country in energy consumption. More and more energy demand pressures cause the Chinese government to review its economy and energy policies in order to support the sustainable development. In China, the building sector amounts to 27.8% total energy consumption, which is only behind the industry sector. China has abundant solar energy resource, which is extensively applied to buildings. Therefore, solar energy utilization in buildings has become one of the most important issues to help China optimize the energy proportion, increasing energy efficiency and protecting the environment. Solar energy resource and its district distribution in China are introduced in detail in this paper, and the representative solar energy application to the building sector is highlighted as well. The solar energy utilization obstacles, especially policy disadvantages in building sector in China, are reviewed. Moreover, the application prospects of solar energy in building sector are presented in combination with the China economic and household industry growth.     

Profiting from negawatts: Reducing absolute consumption and emissions through a performance-based energy economy

Current energy and GHG emissions policies either focus directly on emissions or promote renewable production and the implementation of specific efficiency measures. Meanwhile, the fundamental structure of the energy market based on profits through energy throughput remains largely unchallenged. This policy oversight prevents the transition to an energy economy in which profits are based on energy services delivered at the lowest energy cost: a performance-based energy economy (PBEE). The PBEE applies the combined concepts of the performance economy and energy services to the energy sector. Energy Service Companies (ESCOs) are discussed as an example of PBEE practices. The implications for energy suppliers and consumers as well as the conditions for PBEE diffusion and consequences for technological change are also explored. The expected environmental, social and economic benefits are described. However, absolute consumption and emissions reductions may prove elusive due to the rebound effect. In order to forestall rebound-led increases, complementary policy measures likely to lead to absolute reductions are required.     

Sustainable energy policy in Honduras: Diagnosis and challenges

In view of having a still unexploited potential of natural resources available for clean energy and the possibility of using the regional electricity market in Central America, Honduras has several potential energy sources. The growing dependence on oil and the imminent increase in international prices of fossil fuels, coupled with the necessity of changing the energy sector arrangement, the State of Honduras has taken the lead for the development of a long-term sustainable energy policy. This energy policy must be able to develop various energy sources and guide both, the government and the private sector, to the planning and development of alternative energy sources and sustainable growth of the Honduran economy. In this paper, the various energy diagnoses and the potential for changing the Honduran energy mix are presented, as well as the investment required for sustainable management of the energy sector. Furthermore, the objectives of the energy policy and plan up to the year 2030 are presented, outlining the investment possibilities for the energy sector development, showing their costs and timeframes.     

Application of energy system models for designing a low-carbon society

Rising concern about the effect of greenhouse gas (GHG) emissions on climate change is pushing national governments and the international community to achieve sustainable development in an economy that is less dependent on carbon emitting activities - a vision that is usually termed a “low-carbon society” (LCS). Since the utilization of energy resources is the main source of GHG emissions, restructuring current energy systems in order to incorporate low-carbon energy technologies is essential for the realization of the LCS vision. Energy policies promoting the penetration of these technologies must view the role of energy in society as a system, composed of several energy resources, conversion technologies and energy demand sectors. The feasibility of the LCS in the future can be better understood by means of energy models. Energy models are valuable mathematical tools based on the systems approach. They have been applied to aid decision-making in energy planning, to analyze energy policies and to analyze the implications arising from the introduction of technologies. The design of the LCS requires innovative energy systems considering a trans-disciplinary approach that integrates multi-dimensional elements, related to social, economic, and environmental aspects. This paper reviews the application of energy models considering scenarios towards an LCS under the energy systems approach. The models reviewed consider the utilization of waste for energy, the penetration of clean coal technologies, transportation sector models as a sample of sectoral approaches, and models related to energy-for-development issues in rural areas of developing countries.     

Sustainability of energy production and use in Iran

The issue of oil and gas policies in Iran is rather complex. In the present investigation, it is aimed to formulate plans for increasing the capacity of the country's energy production. Analysis of energy consumption pattern over last decades is indicative of inefficient usage. The low energy prices in Iran do not reflect economic costs. Further distortions exist in the tariff structures of most energy sources and in their relative prices. It is recognized that price reform is a key policy element for promotion of energy conservation and fuel substitution with renewable energies. Mitigation policies in the energy sector are crucial to Iran's overall policies. Emission of greenhouse gases can be reduced from 752,156 to 560,791 Gg CO₂ equivalents in 2010 by implementing the policies proposed for the energy sub-sectors. Enhancing energy efficiency, including combined cycle power generation, has proved to be the most economic option for greenhouse gases reduction in energy sector. Iran's energy consumption pattern is unsustainable and consumption oriented.     

Energy and environment policy integration: The case of energy conservation policies and technologies in Japan

Among the OECD countries, Japan has achieved one of the lowest energy intensities and has been successful in reducing emissions of key air pollutants and CO₂ associated with energy use while maintaining a relatively high rate of economic growth, indicating that in Japan energy and environment policies have been able to address each other effectively. This study shows that in both policy domains, considerable importance was attached to the enhancement of energy conservation. The industrial sector has been the most responsive in reducing energy intensity as well as in controlling pollution. Aided by government fiscal measures, the iron and steel, chemicals and automobile industries have pursued both energy conservation and pollution control through suitable process or product innovation. The recent response to global environment issues shows that both the government and the industrial sector are determined to enhance energy conservation and environmental amelioration through technological innovation, indicating that Japanese technologies will continue to be ‘environmentally competitive’.     

Energy policy and standard for built environment in China

Trends in China's energy future will have considerable consequences for both China and the global environment. Though China's carbon emissions are low on a per capita basis, China is already ranked the world's second largest producer of carbon, behind only America. China's buildings sector currently accounts for 23% of China's total energy use and is projected to increase to one-third by 2010. Energy policy plays an important role in China's sustainable development. The purpose of this study is to provide a broad overview of energy efficiency issues in the built environment in China. This paper, firstly briefly, reviews the key national policies related to the built environment and demonstrates the government's environmental concern. Secondly, the authors introduce recent energy policies in the built environment. Energy efficiency and renewable energy in the built environment, which are the key issues of the national energy policy, have been reviewed. Discussion of the implementation of energy policy has been carried out.     

Analysis and decomposition of energy consumption in the Chilean industry

With rising energy costs and climate change concerns, energy efficiency will be important in maintaining competitiveness and reducing the environmental impact of industrial activities. In this paper we study the Chilean industrial sector, which is the largest consumer of energy within the country. Energy demand and CO₂ emissions in Chile have grown rapidly in recent years while energy supply is mostly imported and subject to disruption. Therefore, it is important to understand energy consumption in this sector and determine which sub-sectors have the greatest potential to reduce energy consumption. We used the Index Decomposition Analysis (IDA), applying the Logarithmic Mean Divisia Index method I (LMDI-I), to quantify the impact of diverse driving factors on energy consumption. Furthermore, a panel data analysis was used to determine whether there are differences in energy intensity across firms with different characteristics. Our results show that energy intensity has risen over time although energy consumption remains stable. This fact supports the idea that energy efficiency policies could play an important role for the industrial sector. Additionally, energy consumption and energy intensity follow different patterns in each sub-sector; therefore we conclude that the application of differentiated sectoral policies is preferable over a single global policy.     

Connecting political economies of energy in South Africa

The South African energy debate is and will remain a heated one. Given South Africa's history of racial inequality and contemporary concerns around sustainability, much of it rightly focuses on the links between energy, poverty and the environment. Yet, many contributions to the (mainstream) debate seem to have a somewhat one-sided focus that might hamper rather than stimulate the understanding of these links. They either display a strong technical, quantitative bias and/or lean towards rather simplistic ideas about policy processes and dynamics. The article argues that many of these analyses could benefit greatly from a critical focus on the political economy of energy: the political–economic power structures that influence both many energy policies and the issues of energy equality and sustainability. Two major global developments emphasise the importance of this focus: the recent financial crisis and South Africa's role in the increasingly tense geopolitics of energy in Africa. The article concludes with some suggestions on how currently disparate political economies of energy could be better connected.     

Assessing the sustainability challenges for electricity industries in ASEAN newly industrialising countries

Rapid social and economic progress in fast developing countries such that among the countries in the Association of Southeast Asian Nations (ASEAN) have driven substantial growth in electricity consumption in this region. Whilst this represents significant societal and economic development, it has potentially growing adverse environmental impacts. This raises a concern on sustainable development in the electricity sector in this region. This study evaluates key sustainability challenges in the electricity industries in the five largest energy consumers in ASEAN: Indonesia, Thailand, Malaysia, the Philippines and Vietnam. The 3A's energy sustainability objectives: Accessibility, Availability and Acceptability are used as the sustainability analytical framework. This study also draws together a set of associated indicators and criteria within the analytical framework to analyse the status of the electricity industries in these countries. The analysis shows that key sustainability challenges in the ASEAN-5 are attributable to satisfying rapid demand growth; enhancing security of electricity supply; and mitigating the increase in CO₂ emissions from electricity generation. Given the promising resource and technical potential in this region, renewable energy emerges as a favourable option to address these challenges; however, increasing the share of renewable energy in electricity generation requires considerable policy support. This study suggests that there is an opportunity for the ASEAN countries to strengthen regional collaborations through experience and resource sharing to enhance sustainability in the electricity industries. This study also highlights some of the key issues facing the electricity industry, and the need for new generation investment decision support tools which can address these issues.     

China's ongoing energy efficiency drive: Origins,progress and prospects

In 2004 China's government launched a vigorous programme to reverse the trend of rising national energy intensity and to reduce intensity by 20% over the period 2006–2010. The aim of this paper is to examine this programme in the context of nearly 30 years of measures to enhance energy efficiency in China, and thus to evaluate the likelihood that today's policies will yield improvements over a longer period. The country achieved a sustained decline of energy intensity in the period 1980–2001 but this trend was reversed in 2002. This reversal arose from a shift in the structure of the economy to more energy-intensive industries and from a decline in the rate of technical innovation. The measures taken since 2003 have been directed principally at energy-intensive industries, but have also addressed other sectors of the economy. Though the energy intensity target for the year 2010 may be achieved, greater efforts will be needed to address a number of constraints which include: the reluctance to use economic and financial instruments; the dependency of energy policy on industrial and social policies; the nature of political decision-making and of public administration; a shortage of skills; and social attitudes to energy.     

A review on energy pattern and policy for transportation sector in Malaysia

Transportation has dominated global fuel consumption and greenhouse gas emissions have risen in an alarming rate. Gasoline and diesel consumption for road transport have a faster growing rate than other sector and the trend appeared to be rapidly moving upwards in the near future. This has caused much concern in many countries including Malaysia to improve the sustainable energy of this sector. The focus of this paper is to analyze the trends of energy pattern and emission of road transport in Malaysia. On top of that, the review of prospective policies such as fuel economy standards and fuel switching to natural gas as well as biodiesel are summarized in this study. The study found that there is an urgent need to adopt suitable energy policy to balance the energy demand and reduce emission in this sector. This study serves as a guideline for further investigation and research in order to implement and improve the transportation sector.     

China's energy-water nexus – assessment of the energy sector's compliance with the “3 Red Lines” industrial water policy

Increasing population and economic growth continue to drive China's demand for energy and water resources. The interaction of these resources is particularly important in China, where water resources are unevenly distributed, with limited availability in coal-rich regions. The “3 Red Lines” water policies were introduced in 2011; one of their aims is to reduce industrial water use, of which the energy sector is a part. This paper analyses current water withdrawals and consumption for all energy processes and assesses the sector's compliance with the industrial water policy under different scenarios, considering potential future policy and technological changes. The results show that future energy plans could conflict with the industrial water policy, but the amount of water used in the energy sector is highly dependant on technology choices, especially for power plant cooling. High electricity demand in the future is expected to be met mainly by coal and nuclear power, and planned inland development of nuclear power presents a new source of freshwater demand. Taking a holistic view of energy and water-for-energy enables the identification of co-benefits and trade-offs between energy and water policies that can facilitate the development of more compatible and sustainable energy and water plans.     

Why and how to subsidise energy R+D: Lessons from the collapse and recovery of electricity innovation in the UK

The UK electricity sector liberalisation was a pioneer in the worldwide reform trend and its reform model and outcomes have been the subject of many studies. However, lesser known are the effects of privatisation, market based reforms, and incentive regulation of networks on research and development as well as patenting activities in the sector. This paper updates our previous studies of this subject and discusses the recent developments in the innovative activities in the UK electricity sector. We find that, in recent years, the initial absence of support policies and the subsequent decline in innovation efforts in the aftermath of the reform has resulted in efforts towards forming an energy technology and innovation policy. Although we already observe some positive outcomes from these efforts, we discuss whether the balance of the innovation efforts are calibrated appropriately and whether the institutional framework can be further improved to promote long term progress.     

A review of the potential of renewable energy sources for the State of Jammu and Kashmir (India)

The future economic development trajectory for India is likely to result in rapid and accelerated growth in energy demand, with expected shortages. Many of its current policies and strategies are aimed at the improvement and possible maximization of energy production from the renewable sector. It is also clear that while energy-conservation and energy-efficiency can make an important contribution in the national energy strategy, renewable energies will be essential to the solution and are likely to play an increasingly important role for the growth of grid power, providing energy access, reducing consumption of fossil fuels, and helping India pursue its low carbon progressive pathway. However, most of the states in India, like the northernmost State of Jammu and Kashmir (J&K), have experienced an energy crisis over a sustained period of time. As India intends to be one of the emerging powers of the 21st century, it has to embark upon with these pressing issues in a more sustainable manner and accordingly initiate various renewable energy projects within these states. This paper will provide a broad-spectrum view about the energy situation within J&K and will highlight the current policies along with future strategies for the optimal utilization of renewable energy resources.     

Transport and energy in developing countries

The author examines the transport energy consumption of developing countries and compares it with that of developed countries. These figures are found to suggest considerable scope for transport energy savings. Given the need for improved energy efficiency, the author moves on to consider transport in the context of the wider economy. Four broad policy approaches which can affect transport energy consumption are identified — information and training programmes, subsidies; pricing and tax policies; and administrative regulations. The author's primary conclusion is that the energy price changes of the last decade do not hold revolutionary implications for the transport sector. There remains, however, a need to improve efficiency in this sector.