America's bottom-up climate change mitigation policy

Many diverse actions can be taken to reduce greenhouse gas (GHG) emissions. Increasingly in the United States, policy-makers at sub-national levels are setting emission targets and implementing plans for sector-specific GHG reductions. In this paper, local, state, and regional policy actions in the US are inventoried and analyzed as to their potential effect on national emissions. The realization of all existing sub-national initiatives, as of September 2007, could stabilize US emissions at 2010 levels by the year 2020. The scale of these many decentralized mitigation actions, and their tendency to follow consistent steps, provide a counterpoint to oft-cited drawbacks of decentralized environmental policy. It also indicates that the US has been more committed to climate change mitigation than is generally acknowledged.     

American policy conflict in the greenhouse: Divergent trends in federal,regional, state,and local green energy and climate change policy

Climate change threatens significant impacts on global ecosystems and human populations. To address this challenge, industrialized nations have ratified the Kyoto Protocol and undertaken commitments to reduce emissions of greenhouse gases, the primary agents linked to anthropogenic alteration of earth's climate. By contrast, the US government, led by the Bush Administration, has rejected mandatory targets for curbing emissions under the Protocol, and has instead pursued voluntary mitigation measures amid a larger push for clean coal and “next generation” nuclear technologies. These actions in total have fueled global perceptions that the US is not acting in substantial ways to address climate change. Nevertheless, action within the US is indeed moving forward, with states, cities and regional partnerships filling the federal leadership vacuum. This paper reviews the diverse policies, strategies, and cooperative frameworks that have emerged at regional, state and local levels to guide climate protection, and identifies the environmental and economic benefits linked to such programs. The paper also attempts to explain the existing federal impasse on climate policy, with attention given to how sub-national efforts may ultimately obviate national governmental inaction.     

How do energy & environmental policy goals and instruments affect electricity demand? A framework for the analysis

Several measures in the environment and energy realms are currently being implemented in the EU and its Member States. Three of these instruments, with an impact on the electricity market, are demand side management activities, promotion of electricity from renewable energy sources and measures aimed at the mitigation of Greenhouse Gas (GHG) emissions. The objective of this paper is to analyse the impact of these energy efficiency and environmental goals and instruments on electricity demand and costs to electricity consumers when electricity markets are either national or international and when those policies are implemented by a national or an international institution. The paper shows that the effectiveness and impact of those measures largely depends on the demand response in the electricity market. An additional conclusion is that, when either the electricity markets or the support policies are national, distortions may occur, i.e. the reductions in electricity demand in one country may be subsidised by consumers or taxpayers in another country.     

Views on peak oil and its relation to climate change policy

Definitions of fossil fuel reserves and resources and assessed stock data are reviewed and clarified. Semantics explain a large stake of conflict between advocate and critical voices on peak oil. From a holistic sources–sinks perspective, limited carrying capacity of atmospheric sinks, not absolute scarcity in oil resources, will impose tight constraints on oil use. Eventually observed peaks in oil production in nearby years will result from politically imposed limits on carbon emissions, and not be caused by physical lack of oil resources. Peak-oil belief induces passive climate policy attitudes when suggesting carbon dioxide emissions will peak naturally linked to dwindling oil supplies. Active policies for reducing emissions and use of fossil fuels will also encompass higher energy end-use prices. Revenues obtained from higher levies on oil use can support financing energy efficiency and renewable energy options. But when oil producers charge the higher prices they can pump new oil for many decades, postponing peak oil to occur while extending carbon lock-in.     

Lessons for effective renewable electricity policy from Denmark,Germany and the United Kingdom

Renewable electricity development has taken different paths across countries, underpinned by different policy frameworks. Although there has been a convergence to two main mechanisms, the feed-in tariff (FIT) and the renewable portfolio standard (RPS), much debate remains focused on the effectiveness of each for meeting multiple objectives, especially energy security, CO₂ reduction and economic development. Although most countries share these objectives, their choice of policy varies, explained largely by national context. Denmark, Germany and the United Kingdom stand out as lead countries based on their experiences with the FIT and RPS and provide important lessons for other nations. The evidence from these three, as examined in this paper, suggests that policy design and commitment are key factors for success. Denmark and Germany have 10 years of experience with FITs and are world leaders in the field of renewable energy (RE) development. They are closest to meeting their RE targets and have been able to achieve several other objectives, especially industrial development and job creation, and in the case of Germany, CO₂ emission reductions. Although other factors have been important in determining policy choice and implementation in these countries, the particular design features of the FIT allow it to address the needs of the sector.     

Addressing competitiveness and leakage concerns in climate policy: An analysis of border adjustment measures in the US and the EU

The implementation of climate policies in the US and EU in light of uncertainties about future international climate policy has shifted attention to two interrelated concerns, namely competitiveness and carbon leakage. Although various policy measures are available to address these concerns, there has been much discussion about one such measure in particular: the use of offsetting measures at the border. This article compares policy discussions in the US and the EU on how to address competitiveness and carbon leakage concerns, with a focus on the role of import-related border adjustment measures. It analyses the kinds of measures that so far have been put forward with a view to addressing competitiveness and carbon leakage; compares the approaches to the problems in the US and the EU; and provides a preliminary discussion of international cooperation on border adjustment measures. It concludes that two kinds of cooperation are needed between the EU and the US – not only cooperation through formal international negotiations, but also cooperation through international learning processes, in which the EU and the US learn from each other about design and implementation issues as they develop their respective cap-and-trade systems.     

Directed technical change and differentiation of climate policy

This paper studies the cost effectiveness of climate policy if there are technology externalities. For this purpose, we develop a forward looking model that captures empirical links between CO₂ emissions associated with energy use, directed technical change and the economy. We find our most cost effective climate policy to include a combination of R&D subsidies and CO₂ emission constraints, although R&D subsidies raise the shadow value of the CO₂ constraint (i.e. CO₂ price) because of a strong rebound effect from stimulating innovation. Furthermore, we find that cost effectiveness of climate policy improves if it is differentiated between technologies. Even our rudimentary distinction between CO₂ intensive technologies and non-CO₂ intensive technologies lead to this result. Such differentiated climate policy encourages growth in the non-CO₂ intensive sectors and discourages growth in CO₂ intensive sectors by harnessing positive effects of technology externalities on total factor productivity in the former and letting the latter bear relatively more of the abatement burden. This result is robust to whether emission constraints, R&D subsidies or combinations of both are used as climate policy instruments.     

Governmental policy and prospect in electricity production from renewables in Lithuania

In Lithuania, the generation of electricity is based on the nuclear energy and on the fossil fuels. After the decommissioning of Ignalina nuclear power plant in 2009, the Lithuanian Power Plant and other thermal plants will become the major sources of electricity. Consequently, the Lithuanian power sector must focus on the implementation of renewable energy projects, penetration of new technologies and on consideration of the future opportunities for renewables, and Government policy for promoting this kind of energy. Production of electricity from renewable energy is based on hydro, biomass and wind energy resources in Lithuania. Due to the typical climatic condition in Lithuania the solar photovoltaics and geothermal energy are not used for power sector. Moreover, the further development of hydropower plants is limited by environmental restrictions, therefore priority is given to wind energy development and installation of new biomass power plants. According to the requirements set out in the Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market [Official Journal L283, 33–40, 27 October 2001], 7% of gross consumption of electricity will be generated from renewable energy by 2010 in Lithuania. The aim of this paper is to show the estimation of the maximum renewable power penetration in the Lithuanian electricity sector and possible environmental impact.     

Does the Bush Administration’s climate policy mean climate protection?

The paper analyzes the two major components of the Bush Administration’s climate policy, namely an emission intensity target and a technology strategy. The question is whether those components will generate net emission reductions that will contribute to the stabilization of the greenhouse gas concentration at a safe level in the long run. It comes out that the Bush Administration climate policy does not guarantee any meaningful contribution to climate protection. The lenient emission intensity target set by the Administration will most likely allow near term emissions to grow. In the long run, the Bush Administration places a big bet on future climate-friendly technological breakthroughs to cost-effectively compensate for the current and near term net emission increases. But the outcomes of those technological developments are uncertain in terms of emission reduction potential, cost, and timing. The way towards enhanced climate protection will most likely not come from the policies of the current Administration, but rather from the growing concern about the climate issue in Congress and at the state, corporate and civil society levels. These combined forces may raise the playing field at the federal level in the near future.     

Role of renewable energy technologies in rural communities' adaptation to climate change in Nepal

The aim of this paper is to analyze the role of renewable energy technologies (RETs) such as biogas, improved cooking stoves (ICSs), micro hydro (MH) and solar power (SP) in helping rural communities in Nepal to adapt to climate change. The analysis considers the energy efficiency of different RETs as well as their socio-economic and environmental impacts. The efficient use of biomass in new technology, such as biogas and ICSs for cooking, has increased energy security and reduced the negative effects of traditional biomass usage. MH and SP systems are replacing candles and kerosene lamps, and are the most promising RET models for electricity generation in rural Nepal. The improved illumination from these technologies also produces better education, health, environments, and social harmony in rural communities. This study uses the Long-range Energy Alternatives Planning model (LEAP) model to develop a plan for long-term RETs use in Nepal, and specifically focuses on household energy use in rural areas. It assesses the role of biogas and ICSs in rural communities and climate change adaptation in Nepal, along with the potential role of MH and SP technologies. According to the LEAP analysis, the planned implementation of MH for 20-year long-term will result in the reduction of 2.553 million tons of CO₂ emissions. Similarly SP, biogas, and ICSs will result in a reduction in CO₂ emissions of 5.214 million tons, 35.880 million tons, and 7.452 million tons, respectively.     

Uncertainty and endogenous technical change in climate policy models

Until recently endogenous technical change and uncertainty have been modeled separately in climate policy models. In this paper, we review the emerging literature that considers both these elements together. Taken as a whole the literature indicates that explicitly including uncertainty has important quantitative and qualitative impacts on optimal climate change technology policy.     

Balancing environmental benefits and damages of small hydropower generation in policy-making: assessing the implementation of a contradicting EU policy framework in Austria and Slovenia

Hydropower contributes to a higher share of renewables but is also in conflict with environmental legislation aiming to protect natural habitats, wildlife and endangered species. Analysing two neighbouring European countries with similar topographical and hydromporphological characteristics, Austria and Slovenia, allows assessing to what extent a policies’ national context steers possible policy conflicts of EU legislation. The paper shows that hydropower expansion in examined countries is strongly shaped by factors such as financial concerns of investors, diverging opinions of involved stakeholders, available hydro potential and the role of hydropower in national energy strategies. Addressing issues that lead to a lower effectiveness of national policies already at the level of EU policy design or engaging countries to broadening their national energy portfolio by considering emerging technologies such as PV and wind will enable future energy and climate strategies that are more consistent with other environmental goals.     

The European climate change program: An evaluation of stakeholder involvement and policy achievements

In order to step up its efforts in reducing climate change, the European Commission (hereafter: the Commission) has launched in June 2000 its European climate change program (hereafter: ECCP). This wide-ranging stakeholder consultation aimed at identifying and developing all elements necessary for a European climate change strategy. The ECCP formally came to a close in April 2003.     

Greenhouse gas emission reduction perspectives in the Baltic States in frames of EU energy and climate policy

The goal of this paper is to estimate the perspectives of the Baltic States: Estonia, Latvia and Lithuania on meeting the new European Union climate commitments, i.e., to reduce greenhouse gas emissions by 20% to the year 2020 in comparison with 1990. This ambitious target could be reached based on other EU climate and energy package commitments: increase of the share of renewables and improvement of energy efficiency as tools for fulfilling the GHG emissions reduction target.The paper gives an overview on the current situation and future plans of the Baltic States in the field of energy efficiency, consumption of renewables and reduction of GHG emissions.     

Renewable energy policy and electricity market reforms in China

The article examines the potential effectiveness of the renewable energy policy in China and its regulatory Law framework. It frames the option of renewable energy technology within the background of the long-lasting electricity problems that China has faced including serious supply shortages, reliance on coal, and severe environmental contamination. Its dual administrative and ownership system based on state and privately owned industry is discussed together with the market reform measures adopted in the sector. Current renewable energy policy is analysed, and the scope of the 2005 Renewable Energy Promotion Law is investigated. This is conducted within the context of the electricity sector reform that China adopted, and its effects upon the prospects of encouraging as well as expanding the development of renewable energy. This study draws upon primary information collected from interviews with stakeholders on the policy adequacy, and identifies three main types of shortcomings that have interfered with a more successful expansion of renewable energy in China.     

Renewable electricity in Sweden: an analysis of policy and regulations

This study aims to analyse the developments in renewable energy policy making in Sweden. It assesses the energy policy context, changes in the choice of policy instruments, and provides explanations behind policy successes and failures. Swedish renewable energy policy has been developing in a context of uncertainty around nuclear issues. While there has been made a political decision to replace nuclear power with renewables, there is a lack of consensus about the pace of phasing out nuclear power due to perceived negative impacts on industrial competitiveness. Such uncertainty had an effect in the formulation of renewable energy policy. Biomass and wind power are the main options for renewable electricity production. Throughout 1990s, the combined effect of different policy instruments has stimulated the growth of these two renewable sources. Yet, both biomass and wind power are still a minor contributor in the total electricity generation. Lack of strong government commitment due to uncertainty around nuclear issues is a crucial factor. Short-term subsidies have been preferred rather than open-ended subsidy mechanisms, causing intervals without subsidies and interruption to development. Other factors are such as lack of incentives from the major electricity companies and administrative obstacles. The taxation system has been successful in fostering an expansion of biomass for heating but hindered a similar development in the electricity sector. The quota system adopted in 2003 is expected to create high demand on biomass but does not favour wind power. The renewable energy aims are unlikely to be changed. Yet, the future development of renewable energy policies especially for high-cost technologies will again depend strongly on nuclear policies, which are still unstable and might affect the pace of renewable energy development.     

Renewable energy policy in Turkey with the new legal regulations

Since the energy crises in the 1970’s, public and private decision makers are considering how to achieve a sustainable transition from fossil fuel based energy to sustainable and clean energies - namely renewable energies. Combined with the improvement of energy efficiency and the rational use of energy, renewable energy can provide everything fossil fuels currently offer in terms of heating and cooling, electricity generation and transportation. Renewable energy technologies posses many long term benefits including energy security, job creation, business opportunities, sustainable development and prevention of global warming.Turkey’s population is growing at an annual rate of 1.04%. If Turkey uses only traditional energy sources, it simply will not have enough energy capacity for its population. Renewable energy sources have the potential to make a large contribution to Turkey’s sustainable and independent energy future.Turkey aims to utilize its energy potential, including from renewable sources in a cost-effective manner. Turkey targets the share of renewable resources in electricity generation to be at least 30% by 2023 has in its 2009 Electricity Market and Security of Supply Strategy. Positive achievements have been obtained in renewable energy development and manufacturing in Turkey over the past decade. The renewable energy related legislation has been intensified. To meet its 30% target, the current promotion mechanism for renewable sources of electricity relies on feed-in tariffs for different renewable energy sources. Large hydropower is already competitive to conventional fossil-based electricity, so feed-in tariffs in the new RE Law are set to facilitate expanding the deployment of other, less mature renewable energy technologies.     

Challenges to a climate stabilizing energy future

The paper surveys the major challenges to stabilizing the atmospheric CO₂ concentration. Climate change, and policies to deal with it, is viewed as an energy problem. The energy problem stems from the fact that no combination of carbon-free energies is currently capable of displacing fossil fuels as the main sources of the world's base load energy requirements. The paper provides rough estimates of the amount of carbon-free energy required to stabilize climate, the potential contribution of “conventional” carbon-free energies, the contribution of renewable energies, and the size of an “advanced energy technology gap”. The findings indicate that stabilizing CO₂ concentration will require a long-term commitment to research, develop, and eventually deploy new energy sources and technologies including hydrogen. The paper suggests that the role of technology is what makes stabilizing CO₂ concentration economically feasible. In this respect energy technology and economics are complementary, with advances in the former requiring something more than a reliance on market-based instruments, such as carbon taxes and emission permits. The analysis has implications for the credibility of commitments to target climate change-related factors such as CO₂ emissions.     

International renewable energy policy—between marginalization and initial approaches

This article undertakes an analysis of renewable energy policy at the international level. So far, such policy efforts have been carried out in a fragmented manner across various fields and without the benefit of any specific international agreements or organizations. In the two key policy areas of energy and climate, in which one would expect to find direct approaches at the international level, there have been only marginal efforts to promote renewable energy and with little direct impact—something which at first glance is rather remarkable. Initiated in the wake of the Second World Summit on Sustainable Development, in 2002 in Johannesburg, there exists for the first time a specific policy process – set in motion by the German government – which has led to some initial “soft” instruments and institutional forms; this multilateral process, which, although parallel and independent in its approach, is proceeding nonetheless in a consensual manner similar to the UN negotiations. At the same time, several countries have taken the lead to form an international organization for renewable energy; this is presently being developed. This article examines the various policy levels as well as the roles of the significant national and international actors on the basis of a multilevel governance approach.     

Rejecting renewables: The socio-technical impediments to renewable electricity in the United States

If renewable power systems deliver such impressive benefits, why do they still provide only 3 percent of national electricity generation in the United States? As an answer, this article demonstrates that the impediments to renewable power are socio-technical, a term that encompasses the technological, social, political, regulatory, and cultural aspects of electricity supply and use. Extensive interviews of public utility commissioners, utility managers, system operators, manufacturers, researchers, business owners, and ordinary consumers reveal that it is these socio-technical barriers that often explain why wind, solar, biomass, geothermal, and hydroelectric power sources are not embraced. Utility operators reject renewable resources because they are trained to think only in terms of big, conventional power plants. Consumers practically ignore renewable power systems because they are not given accurate price signals about electricity consumption. Intentional market distortions (such as subsidies), and unintentional market distortions (such as split incentives) prevent consumers from becoming fully invested in their electricity choices. As a result, newer and cleaner technologies that may offer social and environmental benefits but are not consistent with the dominant paradigm of the electricity industry continue to face comparative rejection.