Challenges and opportunities of a post-Kyoto mitigation regime: a survey of the European electricity sector

This paper empirically shows how the uncertainty associated to the absence of a mitigation regime which follows the United Nations Framework Convention on Climate Change Kyoto Protocol (UN FCCC Kyoto Protocol) is affecting investments in abatement activities in the EU electricity sector and, thus, future emissions levels. Based on a survey of EU electric utilities, it identifies the most likely post-Kyoto scenarios considered by them and how they are coping with such uncertainty in their investment decisions. It is found that firms react differently to such uncertainty and adopt different strategies to cope with it, diversifying their emissions control activities. Although most companies foresee post-Kyoto compliance regimes with emissions trading systems, they differ in their perceptions of the form that a post-Kyoto regime could take and are, thus, positioning differently to face such regime. The particular features of each company and the country where they operate affect their perception of the uncertainties, their position regarding a possible post-Kyoto regime and their inclination to carry out mitigation activities. Complying with Kyoto (and, eventually, post-Kyoto) targets significantly influences the investment decisions of European electricity companies. Uncertainty about a post-Kyoto regime may already be affecting investments in mitigation activities in the electricity sector. Therefore, significant progress has to be made in the definition of a post-Kyoto regime. It is urgent to define and agree internationally the emissions reduction objectives and the mitigation instruments that will be accepted for compliance, ensuring continuity of the international emissions trading system foreseen in the Kyoto Protocol.

The private and social economics of bulk electricity storage

The ability to store excess intermittent renewable electricity is increasingly being seen as a key option for integrating large quantities of renewable capacity. However, intermittent energy sources currently account for very small amounts of total generation. Despite this fact, policymakers have begun implementing requirements that will dramatically increase the amount of bulk storage capacity. This paper examines the social benefits provided by bulk storage in the Texas electricity market, which has a large amount of renewable capacity relative to other states, but still quite limited renewable penetration. We focus on the impact of arbitraging electricity across time—a major service of bulk storage. Using current storage technologies, we demonstrate that electricity arbitrage will increase daily CO₂ emissions by an average of 0.19 tons for each MWh stored. In addition, daily SO₂ emissions will increase by an average of 1.89 pounds/MWh while NO_X emissions will fall by an average of 0.15 pounds/MWh.     

A methodology for estimating health benefits of electricity generation using renewable technologies

At Copenhagen, the developed countries agreed to provide up to $100 bn per year to finance climate change mitigation and adaptation by developing countries. Projects aimed at cutting greenhouse gas (GHG) emissions will need to be evaluated against dual criteria: from the viewpoint of the developed countries they must cut emissions of GHGs at reasonable cost, while host countries will assess their contribution to development, or simply their overall economic benefits. Co-benefits of some types of project will also be of interest to host countries: for example some projects will contribute to reducing air pollution, thus improving the health of the local population.This paper uses a simple damage function methodology to quantify some of the health co-benefits of replacing coal-fired generation with wind or small hydro in China. We estimate the monetary value of these co-benefits and find that it is probably small compared to the added costs. We have not made a full cost-benefit analysis of renewable energy in China as some likely co-benefits are omitted from our calculations. Our results are subject to considerable uncertainty however, after careful consideration of their likely accuracy and comparisons with other studies, we believe that they provide a good first cut estimate of co-benefits and are sufficiently robust to stand as a guide for policy makers.In addition to these empirical results, a key contribution made by the paper is to demonstrate a simple and reasonably accurate methodology for health benefits estimation that applies the most recent academic research in the field to the solution of an increasingly important problem.     

Controlling groundwater pumping online

Groundwater over-pumping is a major problem in several countries around the globe. Since controlling groundwater pumping through water flow meters is hardly feasible, the surrogate is to control electricity usage. This paper presents a framework to restrict groundwater pumping by implementing an annual individual electricity quota without interfering with the electricity pricing policy. The system could be monitored online through prepaid electricity meters. This provides low transaction costs of individual monitoring of users compared to the prohibitive costs of water flow metering and monitoring. The public groundwater managers' intervention is thus required to determine the water and electricity quota and watch the electricity use online. The proposed framework opens the door to the establishment of formal groundwater markets among users at very low transaction costs. A cost–benefit analysis over a 25-year period is used to evaluate the cost of non-action and compare it to the prepaid electricity quota framework in the Batinah coastal area of Oman. Results show that the damage cost to the community, if no active policy is implemented, amounts to (−$288) million. On the other hand, the implementation of a prepaid electricity quota with an online management system would result in a net present benefit of $199 million.     

COMARE 11th report: an alternative interpretation

The 11th report of COMARE (Committee on Medical Aspects of Radiation in the Environment) established that the incidence of some childhood cancers, including leukaemia, is inversely related to population density in England, Wales and Scotland, and is particularly high in Buckinghamshire. Using a photographic archive survey, the present paper notes that population density is also inversely related to overhead wire domestic electricity supply in Buckinghamshire. Factors associated with domestic electricity supply may be relevant to the geographical distribution of some childhood cancers.     

The benefits and costs of reducing emissions from the electricity sector

Recent federal policy proposals to reduce emissions of sulfur dioxide (SO(2)), nitrogen oxides (NO(x)), and mercury from the US electricity sector promise important improvements in air quality and reductions in acid deposition. The cost of achieving these reductions depends on the form and stringency of the regulation. In this research, we analyze the economic benefits and costs of the US Environmental Protection Agency's (EPA's) Clean Air Interstate Rule (CAIR) as characterized in the supplemental rule proposed in June 2004, and the Clean Air Mercury Rule (CAMR) as proposed in February 2004. The assessment integrates a model of the electricity sector, two models of atmospheric transport of air pollutants, and a model of environmental and public health endpoints affected by pollution. We model explicitly the emissions of SO(2), NO(x), mercury and carbon dioxide (CO(2)) and the effects of changes in emissions of SO(2) and NO(x) on environmental and public health. The manner in which mercury emissions are regulated will have important implications not only for the cost of the regulation, but also for emission levels for SO(2) and NO(x) and where those emissions are located. We find the economic benefits of CAIR and CAMR are far greater than the costs. Recent estimates of benefits of reductions in mercury and acidification indicate that our model captures the lion's share of quantifiable benefits. We also find that the EPA would have been justified on economic grounds in pursuing additional SO(2) emissions reductions beyond the requirements of CAIR.     

Evaluating CO2 reduction strategies in the US

We constructed a model to simulate emissions of CO₂ from electricity generation in the US and, using the model, we developed 20-year projections of emissions under various regulatory scenarios.     

Measuring environmental degradation by using principal component analysis

The objective of the paper is to measure environmental degradation on the basis of some selected indicators by the application of a simple multivariate technique known as Principal Component Analysis. For this purpose the study considered six variables, namely, GDP per capita, fuel consumption, total fertility rate, water supply, sanitation, and electricity. However, because of unavailability of data, the variables such as technology relating to environment, waste disposal, air pollution, women/gender issues relating to environment, corruption, democracy etc. could not be considered. The results show that principal components explain about 62% of the variations in the level of environmental degradation. The variables like GDP per capita, fuel consumption, water supply and electricity played a major role in classifying the countries in terms of environmental degradation compared to the variables, sanitation and total fertility rate. The findings show that countries which have high GDP per capita, low fuel consumption, higher percentage of people having access to water supply and sanitation as well as electricity ranked higher in terms of environmental quality despite high fertility rate as shown by the spectacular example of Saudi Arabia. By contrast, those countries which have low percentage of population having access to safe water and sanitation as well as electricity, high fuel consumption and high fertility were ranked lower in terms of environmental quality despite high per capita income, as shown by the example of Angola which is placed in lowest position among the 51 selected countries. The results also show that correlation between poverty and environmental degradation is particularly acute in African countries where high population growth is acting as an exacerbating factor. The study concluded that high fertility has much impact on environmental degradation in case of poorer countries than in case of rich countries.

Economic and environmental performance of electricity production in Finland: A multicriteria assessment framework

Meeting environmental, economic, and societal targets in energy policy is complex and requires a multicriteria assessment framework capable of exploring trade-offs among alternative energy options. In this study, we integrated economic analysis and biophysical accounting methods to investigate the performance of electricity production in Finland at plant and national level. Economic and environmental costs of electricity generation technologies were assessed by evaluating economic features (direct monetary production cost), direct and indirect use of fossil fuels (GER cost), environmental impact (CO₂ emissions), and global environmental support (emergy cost). Three scenarios for Finland's energy future in 2025 and 2050 were also drawn and compared with the reference year 2008. Accounting for an emission permit of 25 €/t CO₂, the production costs calculated for CHP, gas, coal, and peat power plants resulted in 42, 67, 68, and 74 €/MWh, respectively. For wind and nuclear power a production cost of 63 and 35 €/MWh were calculated. The sensitivity analysis confirmed wind power's competitiveness when the price of emission permits overcomes 20 €/t CO₂. Hydro, wind, and nuclear power were characterized by a minor dependence on fossil fuels, showing a GER cost of 0.04, 0.13, and 0.26 J/J_e, and a value of direct and indirect CO₂ emissions of 0.01, 0.04, and 0.07 t CO₂/MWh. Instead, peat, coal, gas, and CHP plants showed a GER cost of 4.18, 4.00, 2.78, and 2.33 J/J_e. At national level, a major economic and environmental load was given by CHP and nuclear power while hydro power showed a minor load in spite of its large production. The scenario analysis raised technological and environmental concerns due to the massive increase of nuclear power and wood biomass exploitation. In conclusion, we addressed the need to further develop an energy policy for Finland's energy future based on a diversified energy mix oriented to the sustainable exploitation of local, renewable, and environmentally friendly energy sources.     

Integrating industrial ecology principles into a set of environmental sustainability indicators for technology assessment

This paper focuses on the environmental component of sustainability of technology, taking into account the role of industrial ecology. Assessment of environmental sustainability of technology traditionally focuses on immediate impact of technology on the environment through quantifying resource extraction and generated emissions. However, technology does not only exchange materials with the environment but also with the industrial society as a whole, the so-called industrial metabolism. A higher compatibility of a specific technology with the industrial system, as studied in industrial ecology, can result in lower resource extraction and reduced waste emission, indirectly contributing to a better environmental sustainability.Starting from the considerations above and based on the second law of thermodynamics, the paper presents a set of five environmental sustainability indicators for the assessment of products and production pathways, integrating industrial ecology principles. The indicators, all scaled between 0 and 1, take into account: (1) renewability of resources; (2) toxicity of emissions; (3) input of used materials; (4) recoverability of products at the end of their use; (5) process efficiency.The applicability of the elaborated set of indicators is illustrated for different production pathways of alcohols (petrochemical and oleochemical based), polyethylene end-of-life options and electricity production from non-renewable (natural gas and fossil oil) and renewable resources (hydropower, photovoltaic conversion of solar irradiation).