Cost,environmental impact,and resilience of renewable energy under a changing climate: a review

Energy derived from fossil fuels contributes significantly to global climate change, accounting for more than 75% of global greenhouse gas emissions and approximately 90% of all carbon dioxide emissions. Alternative energy from renewable sources must be utilized to decarbonize the energy sector. However, the adverse effects of climate change, such as increasing temperatures, extreme winds, rising sea levels, and decreased precipitation, may impact renewable energies. Here we review renewable energies with a focus on costs, the impact of climate on renewable energies, the impact of renewable energies on the environment, economy, and on decarbonization in different countries. We focus on solar, wind, biomass, hydropower, and geothermal energy. We observe that the price of solar photovoltaic energy has declined from $0.417 in 2010 to $0.048/kilowatt-hour in 2021. Similarly, prices have declined by 68% for onshore wind, 60% for offshore wind, 68% for concentrated solar power, and 14% for biomass energy. Wind energy and hydropower production could decrease by as much as 40% in some regions due to climate change, whereas solar energy appears the least impacted energy source. Climate change can also modify biomass productivity, growth, chemical composition, and soil microbial communities. Hydroelectric power plants are the most damaging to the environment; and solar photovoltaics must be carefully installed to reduce their impact. Wind turbines and biomass power plants have a minimal environmental impact; therefore, they should be implemented extensively. Renewable energy sources could decarbonize 90% of the electricity industry by 2050, drastically reducing carbon emissions, and contributing to climate change mitigation. By establishing the zero carbon emission decarbonization concept, the future of renewable energy is promising, with the potential to replace fossil fuel-derived energy and limit global temperature rise to 1.5 °C by 2050.

     

Substitution between biofuels and fossil fuels: Is there a green paradox?

We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case of subsidies for renewable resources produced under increasing marginal costs, and assume that both the renewable resources and the fossil fuels are currently in use. Such subsidies have a direct effect and an indirect effect working in opposite directions. The direct effect is the reduction in demand for fossil fuels at any given price. The indirect effect is the reduction in the current equilibrium price for fossil fuels, which tends to increase the amount of fossil fuels demanded. Whether the sum of the two effects will actually result in an earlier or later date of exhaustion of the stock of fossil fuels depends on the curvature of the demand curve for energy and of the supply curve for the renewable substitute.     

Substitution between biofuels and fossil fuels: Is there a green paradox?

We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case of subsidies for renewable resources produced under increasing marginal costs, and assume that both the renewable resources and the fossil fuels are currently in use. Such subsidies have a direct effect and an indirect effect working in opposite directions. The direct effect is the reduction in demand for fossil fuels at any given price. The indirect effect is the reduction in the current equilibrium price for fossil fuels, which tends to increase the amount of fossil fuels demanded. Whether the sum of the two effects will actually result in an earlier or later date of exhaustion of the stock of fossil fuels depends on the curvature of the demand curve for energy and of the supply curve for the renewable substitute.     

Social,environmental, and economic consequences of integrating renewable energies in the electricity sector: a review

The global shift from a fossil fuel-based to an electrical-based society is commonly viewed as an ecological improvement. However, the electrical power industry is a major source of carbon dioxide emissions, and incorporating renewable energy can still negatively impact the environment. Despite rising research in renewable energy, the impact of renewable energy consumption on the environment is poorly known. Here, we review the integration of renewable energies into the electricity sector from social, environmental, and economic perspectives. We found that implementing solar photovoltaic, battery storage, wind, hydropower, and bioenergy can provide 504,000 jobs in 2030 and 4.18 million jobs in 2050. For desalinization, photovoltaic/wind/battery storage systems supported by a diesel generator can reduce the cost of water production by 69% and adverse environmental effects by 90%, compared to full fossil fuel systems. The potential of carbon emission reduction increases with the percentage of renewable energy sources utilized. The photovoltaic/wind/hydroelectric system is the most effective in addressing climate change, producing a 2.11–5.46% increase in power generation and a 3.74–71.61% guarantee in share ratios. Compared to single energy systems, hybrid energy systems are more reliable and better equipped to withstand the impacts of climate change on the power supply.

     

Competing land uses and fossil fuel,and optimal energy conversion rates during the transition toward a green economy under a pollution stock constraint

We study the transition to a carbon-free economy in a model with a polluting non-renewable resource and a clean renewable resource. Transforming primary energy into ready-to-use energy services is costly and more efficient energy transformation rates are more costly to achieve. Renewable energy competes with food production for land and the food productivity of land can be improved at some cost. To avoid catastrophic climate damages, the pollution stock is mandated to stay below a given cap. When the economy is not constrained by the cap, the efficiency of energy transformation increases steadily until the transition toward the ultimate green economy; when renewable energy is exploited, its land use rises at the expense of food production; food productivity increases together with the land rent but food production drops; the food and energy prices increase and renewables substitute for non-renewable energy. During the constrained phase, the economy follows a constant path of prices, quantities, efficiency rates, food productivity and land rent, a phenomenon we call the ‘ceiling efficiency paradox’.     

Can climate mitigation help the poor? Measuring impacts of the CDM in rural China

This study examines whether investment in climate change mitigation contributes to poverty alleviation. We investigate the impacts of the renewable energy-based clean development mechanism (RE-CDM) projects on rural communities in China. The impacts of RE-CDM projects are estimated by combining propensity score matching with the difference-in-differences approach. We found that the biomass-based CDM projects significantly contribute to income improvement and employment generation in rural communities in China. Our estimation results also reveal that wind energy-based CDM projects have the potential to increase income and the share of labor force in the primary industry in rural areas. These results suggest different channels through which renewable energy sources affect income.     

Development of a low-carbon economy in China

Under the pressures of climate change, many countries are trying to adapt to a low-carbon economy. In this paper, we review the development pattern of the low-carbon economy of major countries and its impact on the world economy. We then argue that economic development and abatement of greenhouse gas (GHG) emissions in China should be balanced. The challenges that China faces should also be considered carefully. It is necessary for China to find an approach to solve the issues of climate change, which should include new technologies and establishing incentive mechanisms and reform-oriented policies. These guidelines can adjust the structure of the economy and energy use, improve energy efficiency, promote the development of alternative and renewable energy, enhance the potential of carbon sinks, and develop advanced technology to perfect a 'Clean Development Mechanism' and sustainable development through international cooperation.     

Optimal timing of carbon capture policies under learning-by-doing

Using a standard Hotelling model of resource exploitation, we determine the optimal energy consumption paths from three options: dirty coal, which is non-renewable and carbon-emitting; clean coal, which is also non-renewable but carbon-free thanks to carbon capture and storage (CCS); and solar energy, which is renewable and carbon-free. We assume that the atmospheric carbon stock cannot exceed an exogenously given ceiling. Taking into account learning-by-doing in CCS technology, we show the following results: (i) clean coal exploitation cannot begin before the outset of the carbon constrained phase and must stop strictly before the end of this phase; (ii) the energy price path can evolve non-monotonically over time; and (iii) when the solar cost is low enough, an unusual energy consumption sequence along with solar energy is interrupted for some time and replacement by clean coal may exist.     

Non-cooperative and cooperative climate policies with anticipated breakthrough technology

Global warming can be curbed by pricing carbon emissions and thus substituting fossil fuel with renewable energy consumption. Breakthrough technologies (e.g., fusion energy) can reduce the cost of such policies. However, the chance of such a technology coming to market depends on investment. We model breakthroughs as an irreversible tipping point in a multi-country world, with different degrees of international cooperation. We show that international spill-over effects of R&D in carbon-free technologies lead to double free-riding, strategic over-pollution and underinvestment in green R&D, thus making climate change mitigation more difficult. We also show how the demand structure determines whether carbon pricing and R&D policies are substitutes or complements.     

Climate policies and skill-biased employment dynamics: Evidence from EU countries

The political acceptability of climate policies is undermined by job-killing arguments, especially for the least-skilled workers. However, evidence of the distributional impacts for different workers remains scant. We examine the associations between climate policies, proxied by energy prices, and workforce skills for 14 European countries and 15 industrial sectors over the period 1995–2011. Using a shift-share instrumental variable estimator and controlling for the influence of automation and globalization, we find that climate policies have been skill biased against manual workers and have favoured technicians. The long-term change in energy prices accounted for between 9.2% and 17.5% (resp. 4.2% and 8.0%) of the increase (resp. decrease) in the share of technicians (resp. manual workers).     

Key role for nuclear energy in global biodiversity conservation

Modern society uses massive amounts of energy. Usage rises as population and affluence increase, and energy production and use often have an impact on biodiversity or natural areas. To avoid a business‐as‐usual dependence on coal, oil, and gas over the coming decades, society must map out a future energy mix that incorporates alternative sources. This exercise can lead to radically different opinions on what a sustainable energy portfolio might entail, so an objective assessment of the relative costs and benefits of different energy sources is required. We evaluated the land use, emissions, climate, and cost implications of 3 published but divergent storylines for future energy production, none of which was optimal for all environmental and economic indicators. Using multicriteria decision‐making analysis, we ranked 7 major electricity‐generation sources (coal, gas, nuclear, biomass, hydro, wind, and solar) based on costs and benefits and tested the sensitivity of the rankings to biases stemming from contrasting philosophical ideals. Irrespective of weightings, nuclear and wind energy had the highest benefit‐to‐cost ratio. Although the environmental movement has historically rejected the nuclear energy option, new‐generation reactor technologies that fully recycle waste and incorporate passive safety systems might resolve their concerns and ought to be more widely understood. Because there is no perfect energy source however, conservation professionals ultimately need to take an evidence‐based approach to consider carefully the integrated effects of energy mixes on biodiversity conservation. Trade‐offs and compromises are inevitable and require advocating energy mixes that minimize net environmental damage. Society cannot afford to risk wholesale failure to address energy‐related biodiversity impacts because of preconceived notions and ideals.     

Pollution perception: A challenge for intergenerational equity

In this article we extend the recent literature on overlapping generations and pollution by allowing generations to perceive the level of pollution differently than the actual level of pollution. We call this pollution perception. Pollution perception can visualize itself as either a concern for the flow of pollution only, or for the stock, or a combination of both. We derive this extension based on empirical evidence from recent advances in behavioural economics.Pollution perception has not only significant consequences for the steady state levels of pollution and capital, but we also find a qualitative change in the dynamics from similar models without pollution perception [A. John, R. Pecchenino, An overlapping generations model of growth and the environment, Econ. J. 104 (1994) 1393–1410]. Specifically, we derive optimal non-linear dynamics through complex eigenvalues and Hopf or Flip bifurcations for a large set of parameters. This leads to violations of two standard criteria of sustainability, suggesting that pollution perception can be another source of intergenerational inequity.     

Resilienz vs. Effizienz – ein kritischer Blick auf die Umweltökonomie

Background, aim, and scope Economists assess politics (also concerning energy supply) due to the efficiency criterion. Thus, economic instruments for environmental protection shall contribute to achieve ecological goals in an (cost-)efficient way. We show that the overemphasis of efficiency is an alien in the way (ecological) systems are working. Mostly, ecological systems are not high-grade efficient. Hence, economic instruments of environmental protection introduce an inappropriate logic to ecological systems that may have severe impacts on their resilience. We illustrate this with the example of emission trading. Time efficiency is considered to be a powerful criterion due to the interest yield requirements of investors, also for ecological investments. We show how the concentration on time efficiency destroys diversity and has negative impacts on the resilience of (eco-)systems. Main features The economic system is embedded in society and natural environment (as self-organizing, living systems). The economy as an ‘instrumental system’ should serve these systems. The guiding value approach (a system theory approach) gives indication that overemphasizing certain guiding values (such as efficiency, as the economic science does) may weaken the functional capability of systems and finally may lead to a collapse of the systems. Results and discussion The article tries to change the focus of the discussion. An altered focus probably has to be implemented by scientists of other subject areas. Contemporary environmental economics (with its focus on efficiency) is unable to give satisfying answers on the pestering problems. Conclusions Criticising the primacy of efficiency is not the same as generally to disclaim considering efficiency needs. Instead, based on the guiding value theory, we want to be contrary to the one-sided and dominating stressing of the of the efficiency criterion. Perspectives Not following the efficiency guide any more means to think over some ‘sacred cows’ such as emission trading or shareholder value. Instead we have to think over alternative designs to reach the ecological targets.     

Rapid assessment of management options for promoting stock rebuilding in data-poor species under climate change

The development of species recovery plans requires considering likely outcomes of different management interventions, but the complicating effects of climate change are rarely evaluated. We examined how qualitative network models (QNMs) can be deployed to support decision making when data, time, and funding limitations restrict use of more demanding quantitative methods. We used QNMs to evaluate management interventions intended to promote the rebuilding of a collapsed stock of blue king crab (Paralithodes platypus) (BKC) around the Pribilof Islands (eastern Bering Sea) to determine how their potential efficacy may change under climate change. Based on stakeholder input and a literature review, we constructed a QNM that described the life cycle of BKC, key ecological interactions, potential climate-change impacts, relative interaction strengths, and uncertainty in terms of interaction strengths and link presence. We performed sensitivity analyses to identify key sources of prediction uncertainty. Under a scenario of no climate change, predicted increases in BKC were reliable only when stock enhancement was implemented in a BKC hatchery-program scenario. However, when climate change was accounted for, the intervention could not counteract its adverse impacts, which had an overall negative effect on BKC. The remaining management scenarios related to changes in fishing effort on BKC predators. For those scenarios, BKC outcomes were unreliable, but climate change further decreased the probability of observing recovery. Including information on relative interaction strengths increased the likelihood of predicting positive outcomes for BKC approximately 5–50% under the management scenarios. The largest gains in prediction precision will be made by reducing uncertainty associated with ecological interactions between adult BKC and red king crab (Paralithodes camtschaticus). Qualitative network models are useful options when data are limited, but they remain underutilized in conservation.     

Patterns and biases of climate change threats in the IUCN Red List

International Union for Conservation of Nature (IUCN) Red List assessments rely on published data and expert inputs, and biases can be introduced where underlying definitions and concepts are ambiguous. Consideration of climate change threat is no exception, and recently numerous approaches to assessing the threat of climate change to species have been developed. We explored IUCN Red List assessments of amphibians and birds to determine whether species listed as threatened by climate change display distinct patterns in terms of habitat occupied and additional nonclimatic threats faced. We compared IUCN Red List data with a published data set of species’ biological and ecological traits believed to infer high vulnerability to climate change and determined whether distributions of climate change‐threatened species on the IUCN Red List concur with those of climate change‐threatened species identified with the trait‐based approach and whether species possessing these traits are more likely to have climate change listed as a threat on the IUCN Red List. Species in some ecosystems (e.g., grassland, shrubland) and subject to particular threats (e.g., invasive species) were more likely to have climate change as a listed threat. Geographical patterns of climate change‐threatened amphibians and birds on the IUCN Red List were incongruent with patterns of global species richness and patterns identified using trait‐based approaches. Certain traits were linked to increases or decreases in the likelihood of a species being threatened by climate change. Broad temperature tolerance of a species was consistently related to an increased likelihood of climate change threat, indicating counterintuitive relationships in IUCN assessments. To improve the robustness of species assessments of the vulnerability or extinction risk associated with climate change, we suggest IUCN adopt a more cohesive approach whereby specific traits highlighted by our results are considered in Red List assessments. To achieve this and to strengthen the climate change‐vulnerability assessments approach, it is necessary to identify and implement logical avenues for further research into traits that make species vulnerable to climate change (including population‐level threats).     

Costs and prices for renewable energy development in industrialized countries and applications to China

Developing renewable energy is now becoming a hot topic as it is important in dealing with climate change issue and energy supply issue. With the growing demand of energy, it has become urgent to develop the effective policies and measures that would enable people to maintain the living standards. Among all the measures, price is an essential one. In order to evaluate the costs and prices of the electricity from renewable energy sources (RES-E) and their effects to the market, this paper firstly focus on the extra costs of the RES-E by breaking it into four parts, including investment, construction, connection and operation. Then, the policy choices made in some typical industrialized countries are examined to find answers to the problems RES-E can raise. Finally, the choices made in China are examined in comparison to industrialized countries so as to determine how the current situation could be improved.     

Increase in Quantity and Quality of Suitable Areas for Invasive Species as Climate Changes

As climatically suitable range projections become increasingly used to assess distributions of species, we recommend systematic assessments of the quality of habitat in addition to the classical binary classification of habitat. We devised a method to assess occurrence probability, captured by a climatic suitability index, through which we could determine variations in the quality of potential habitat. This relative risk assessment circumvents the use of an arbitrary suitability threshold. We illustrated our method with 2 case studies on invasive ant species. We estimated invasion potential of the destroyer ant (Monomorium destructor) and the European fire ant (Myrmica rubra) on a global scale currently and by 2080 with climate change. We found that 21.1% of the world's landmass currently has a suitable climate for the destroyer ant and 16% has a suitable climate for European fire ant. Our climatic suitability index showed that both ant species would benefit from climate change, but in different ways. The size of the potential distribution increased by 35.8% for the destroyer ant. Meanwhile, the total area of potential distribution remained the same for the European fire ant (>0.05%), but the level of climatic suitability within this range increased greatly and led to an improvement in habitat quality (i.e., of invasive species’ establishment likelihood). Either through quantity or quality of suitable areas, both invasive ant species are likely to increase the extent of their invasion in the future, following global climate change. Our results show that species may increase their range if either more areas become suitable or if the available areas present improved suitability. Studies in which an arbitrary suitability threshold was used may overlook changes in area quality within climatically suitable areas and as a result reach incorrect predictions. Incremento de la Cantidad y Calidad de Áreas Idóneas para Especies Invasoras a Medida que Cambia el Clima     

海峡两岸碳汇农业研究与交易平台建设的思考与对策——以闽台农业碳汇交易中心规划研究为例

在全球气候变化的大背景下,发展低碳经济已经成为全球性共识;同时作为发展低碳经济前沿领域的碳交易市场也得以迅速发展。本文简要综述了我国农业碳汇交易研究和碳交易市场发展的现状及其存在的问题,分析了在福建建立海峡两岸农业碳汇交易平台的政策机遇和区域优势,提出了构建闽台农业碳汇交易中心的规划设想,并结合规划设想提出了要加强碳汇农业理论与节能减排技术、低碳农业发展规划与综合评估体系、农业碳汇交易机制、监测及其认证体系等农业碳汇研究的方向与建议。     

Directing technical change from fossil-fuel to renewable energy innovation: An application using firm-level patent data

In this paper we provide an analysis of directed technical change in the sector of electricity generation. We rely on patent data in fossil-fuel (FF) and renewable energy (REN) technologies for 5471 European firms over the 1978–2006 period. The novelty of our approach is in the focus on firm׳s heterogeneity in driving technological change. We make a distinction between small specialized firms, which innovate in only one type of technology, and large mixed firms, which innovate in both technologies, to analyse how REN patents can replace FF ones at the sector level both through a shift in innovation activities within existing firms and through firms׳ entry and exit. We use zero-inflated count data estimation techniques to identify the factors that affect specialized versus mixed firms׳ patenting behaviour both at the intensive (i.e., levels of innovation) and extensive (i.e., technological entry) margins. We further investigate the implications of our firm-level estimations for reducing the gap between REN and FF innovation at the aggregate level. We establish two key findings: (1) a decrease in the FF-REN technology gap mainly comes about through technological entry of specialized REN firms following an increase in REN market size; (2) increases in FF prices, FF market size, and FF knowledge stocks all increase the technology gap by increasing mixed firms FF innovation rates. An important implication of our results is that policies aimed at increasing REN innovation should focus on helping small firms to start and sustain innovation in the long-run.     

Voluntary corporate environmental initiatives and shareholder wealth

Researchers debate whether environmental investments reduce firm value or actually improve financial performance. We provide some compelling evidence on shareholder wealth effects of membership in voluntary environmental programs (VEPs). Companies announcing membership in EPA's Climate Leaders, a program targeting reductions in greenhouse gas emissions, experience significantly negative abnormal stock returns. The price decline is larger in firms with poor corporate governance structures, and for high market-to-book (i.e., high growth) firms. However, firms joining Ceres, a program involving more general environmental commitments, have insignificant announcement returns, as do portfolios of industry rivals. Overall, corporate commitments to reduce greenhouse gas emissions appear to conflict with firm value maximization. This has important implications for policies that rely on voluntary initiatives to address climate change. Further, we find that firms facing climate-related shareholder resolutions or firms with weak corporate governance standards – giving managers the discretion to make such voluntary environmentally responsible investment decisions – are more likely to join Climate Leaders; decisions that may result in lower firm value.