Household dependence on solid cooking fuels in Peru: An analysis of environmental and socioeconomic conditions

Solid fuel use is linked with adverse effects on the environment and human health. Yet, solid fuels remain an important energy source for households in developing countries. Even when country-level dependence on solid fuels is modest, there is often significant variation in within-country patterns of solid fuel use. This study examines a range of environmental and socioeconomic conditions to understand the relationship between them and household energy use within a country. While our results are derived from a study of regional patterns of solid fuel dependence in Peru, the contribution of this study is broad: variables that we include in our models of households’ fuel choice decisions are likely to shape such decisions in most developing countries. Our findings indicate that environmental conditions, such as elevation and forest cover, are associated with solid fuel use. Socioeconomic factors, including urbanization, poverty and female literacy, are similarly important. In addition, we identify nuanced links between types of female employment and indigenous population, on the one hand, and solid fuel use, on the other.     

Climate policy innovation in the South – Domestic and international determinants of renewable energy policies in developing and emerging countries

This article attempts to disentangle the determinants of the adoption of renewable energy support policies in developing and emerging countries. By analyzing policies already implemented in industrialized countries, we focus on the diffusion but not the invention of climate-relevant policies. We look at four different types of policies (renewable energy targets, feed-in tariffs, other financial incentives and framework policies) and consider both domestic factors and international diffusion mechanisms utilizing a discrete-time events history model with a logit link on a self-compiled dataset of grid-based electricity policy adoption in 112 developing and emerging countries from 1998 to 2009. In general, we find stronger support for the domestic determinants of policy adoption, but also substantial influence of international factors. Countries with a larger population and more wealth have a higher probability of adopting renewable energy policies. Only in some specific cases do natural endowments for producing renewable energy encourage governments to adopt policies, and hydro power resources even correlate negatively with the adoption of targets. Among the international determinants, emulation from colonial peers and membership within the EU seem to facilitate policy adoption. International climate finance is less relevant, as the Global Environmental Facility and the Clean Development Mechanism may only increase the adoption of frameworks and targets, but they have no influence on tariffs and incentives.     

Assessing decarbonization pathways and their implications for energy security policies in Japan

For countries without sufficient fossil fuel resources such as Japan, climate policies in the mid- to long term need to satisfy requirements not only for decarbonisation but also for energy security in the context of limitations on renewable energies and nuclear power. This study assesses the feasibility of decarbonization pathways to 2050 and their effects on energy security, considering the latest energy and climate policies in Japan using the AIM/Enduse model. The analysis illustrates that deep decarbonization by 2050 is technically feasible even without nuclear power based on three elements: energy efficiency improvements, low-carbon electricity and electrification in end-use sectors. These decarbonization pathways, in the long term, could also contribute to enhanced energy security, reducing import dependency to less than a half of the total primary energy and reducing import bills for fossil fuels by around 70% compared with the current level. Notably, renewable energies could play a strategically significant role in satisfying both climate and energy security requirements. In the mid-term (to 2030), however, although GHG emissions are reduced by 14–20% from 1990 levels, import dependency is relatively stable at today's levels, particularly without the restart of nuclear power. Given the limited potential for renewable energies in the mid-term, it is suggested that the availability of nuclear power will have negative impacts on carbon intensity and energy security, and policies to enhance the security of fossil fuels, including diversification of fuel sources and supply routes, will be required for the foreseeable future.

Policy relevance

Considering the scarcity of indigenous fossil fuel resources and the uncertain availability of nuclear power in Japan, renewable energy could play a strategically significant role in replacing unabated fossil fuels, which would contribute to satisfying both climate and energy security requirements in the long term. However, the renewable energy potential is insufficient to eliminate the requirement for fossil fuels by 2030; therefore the unavailability of nuclear power would affect energy security considerably. Thus, policies in the mid-term would still require enhancement of the energy security of fossil fuels, including the diversification of fuel sources and supply routes, as well as alleviation of the impacts of price volatility.     

The threat to climate change mitigation posed by the abundance of fossil fuels

This article analyses the trends in primary demand for fossil fuels and renewables, comparing regions with large and small domestic fossil fuel reserves. We focus on countries that hold 80% of global fossil fuel reserves and compare them with key countries that have meagre fossil fuel reserves. We show that those countries with large domestic fossil fuel reserves have experienced a large increase in primary energy demand from fossil fuels, but only a moderate or no increase in primary energy from renewables, and in particular from non-hydro renewable energy sources (NHRES), which are assumed to represent the cornerstone of the future transformation of the global energy system. This implies a tremendous threat to climate change mitigation, with only two principal mitigation options for fossil-fuel-rich economies if there is to be compliance with the temperature goals of the Paris Agreement: (1) leave the fossil fuels in the ground; and (2) apply carbon capture and storage (CCS) technologies. Combinations of these two options to exploit their respective possibilities synergistically will require strong initiatives and incentives to transform a certain amount of the domestic fossil fuel reserves (including the associated infrastructure) into stranded assets and to create an extensive CCS infrastructure. Our conclusion is that immediate and disruptive changes to the use of fossil fuels and investments in non-carbon-emitting technologies are required if global warming is to be limited to well below 2°C. Collective actions along value chains in business to divert from fossil fuels may be a feasible strategy.

Key policy insights

• The main obstacle to compliance with any reasonable warming target is the abundance of fossil fuels, which has maintained and increased momentum towards new fossil-fuelled processes.

• So far, there has been no increase in the share of NHRES in total global primary energy demand, with a clear decline in the NHRES share in India and China.

• There is an immediate need for the global community to develop fossil fuel strategies and policies.

• Policies must account for the global trade flow of products that typically occurs from the newly industrialized fossil fuel-rich countries to the developed countries.

     

Potential Scale-Related Problems in Estimating the Costs of CO2 Mitigation Policies

The scale-related problem addressed here relates to a difficulty in substituting away from fossil fuels as part of a policy designed to mitigate climate change. The replacement of fossil fuels by renewable forms of energy is a widely advocated means of reducing the build-up greenhouse gases in the atmosphere. However, the substitution, on a large-scale, of renewable, non-fossil fuel energy sources for fossil fuels requires using vast amounts of land to produce energy. It is shown that, with the exception of nuclear energy, almost all non-fossil fuel energy sources are highly land using, or land-intensive. In particular, the widespread substitution of renewables such as biomasses, wind, solar, and hydro for fossil fuels would require adapting large amounts of land to energy production, land which may have good alternative uses. Thus, the economic feasibility of producing, globally, relatively small amounts of renewable energies is not a good indicator of the feasibility of producing them on a large scale. This implies that substantial reduction in the use of fossil fuels requires the discovery and development of new non-land intensive energy technologies.     

Cutting with both arms of the scissors: the economic and political case for restrictive supply-side climate policies

Proponents of climate change mitigation face difficult choices about which types of policy instrument(s) to pursue. The literature on the comparative evaluation of climate policy instruments has focused overwhelmingly on economic analyses of instruments aimed at restricting demand for greenhouse gas emissions (especially carbon taxes and cap-and-trade schemes) and, to some extent, on instruments that support the supply of or demand for substitutes for emissions-intensive goods, such as renewable energy. Evaluation of instruments aimed at restricting the upstream supply of commodities or products whose downstream consumption causes greenhouse gas emissions—such as fossil fuels—has largely been neglected in this literature. Moreover, analyses that compare policy instruments using both economic and political (e.g. political “feasibility” and “feedback”) criteria are rare. This article aims to help bridge both of these gaps. Specifically, the article demonstrates that restrictive supply-side policy instruments (targeting fossil fuels) have numerous characteristic economic and political advantages over otherwise similar restrictive demand-side instruments (targeting greenhouse gases). Economic advantages include low administrative and transaction costs, higher abatement certainty (due to the relative ease of monitoring, reporting and verification), comprehensive within-sector coverage, some advantageous price/efficiency effects, the mitigation of infrastructure “lock-in” risks, and mitigation of the “green paradox”. Political advantages include the superior potential to mobilise public support for supply-side policies, the conduciveness of supply-side policies to international policy cooperation, and the potential to bring different segments of the fossil fuel industry into a coalition supportive of such policies. In light of these attributes, restrictive supply-side policies squarely belong in the climate policy “toolkit”.     

Interactions between climate and energy policies: the case of Spain

Emissions trading schemes (ETS) coexist with other environmental and energy policies, such as renewable energy promotion schemes. The potential synergies and conflicts between these policies are worth analysing. Spain is used as a case study to illustrate the theoretical, practical and quantitative interactions. The existence of national policies which affect CO₂ emissions and interact with the EU ETS may lead to conflicts, which could make it more difficult to reach the objectives of emissions reductions, local sustainability benefits, dynamic efficiency and moderate consumer costs. The coordination of efforts to mitigate these conflicts is difficult and may have limited effectiveness, since the instruments employed have multiple objectives and different territorial scopes. However, the coexistence of the EU ETS with other instruments can be justified if the latter can provide social benefits or tackle problems that the former cannot provide or solve (such as ‘local’ and ‘dynamic efficiency’ benefits). The results of an interaction between an ETS and renewable electricity promotion schemes depend on the type of RES-E (electricity from renewable energy sources) support scheme being used and on the specific design features of the instrument implemented.     

Regional patterns of U.S. household carbon emissions

Market-based policies to address fossil fuel-related externalities including climate change typically operate by raising the price of those fuels. Increases in energy prices have important consequences for a typical U.S. household that spent almost $4,000 per year on electricity, fuel oil, natural gas, and gasoline in 2005. A key question for policymakers is how these consequences vary over different regions and subpopulations across the country—especially as adjustment and compensation programs are designed to protect more vulnerable regions. To answer this question, we use non-publicly available data from the U.S. Consumer Expenditure Survey over the period 1984–2000 to estimate long-run geographic variation in household use of electricity, fuel oil, natural gas, and gasoline, as well as the associated incidence of a $10 per ton tax on carbon dioxide (ignoring behavioral response). We find substantial variation: incidence from the tax range from $97 dollars per year per household in New York County, New York to $235 per year per household in Tensas Parish, Louisiana. This variation can be explained by differences in energy use, carbon intensity of electricity generation, and electricity regulation.     

Causal thinking and support for climate change policies: International survey findings

Few comparative international studies describe the climate change policies people are willing to support and the reasons for their support of different policies. Using survey data from 664 economics and business undergraduates in Austria, Bangladesh, Finland, Germany, Norway, and the United States, we explore how perceived risk characteristics and mental models of climate change influence support for policy alternatives. General green policies such as funding research on renewable technologies and planting trees were the overwhelmingly most popular policy alternatives. Around half the students support carbon reduction policies such as requiring higher car fuel efficiency and increasing taxes on fossil fuels. Least popular were engineering alternatives such as fertilizing the oceans and replacing fossil fuels with nuclear power. Variations among nations are generally small. Support for different policy alternatives corresponds with different causal thinking. Those who hold a pollution model of the causes of climate change, tend to blame environmental harms (e.g., air pollution from toxic chemicals), see general green policy alternatives as effective, and support general green policies. Support of carbon reduction strategies is associated with seeing carbon emissions as the cause and reducing carbon emissions as effective solutions. Support of engineering solutions increases with identifying volcanoes among causes and regarding engineering solutions as effective. Although these international students agree that climate change is a threatening problem, their causal thinking correlates with support for different mitigative policy actions, with the most popular ones not necessarily the most effective.     

Better air for better health: Forging synergies in policies for energy access,climate change and air pollution

Air pollution and its related health impacts are a global concern. This paper addresses how current policies on air pollution, climate change and access to clean cooking fuels can effectively reduce both outdoor and household air pollution and improve human health. A state of the art modeling framework is used that combines an integrated assessment model and an atmospheric model to estimate the spatial extent and distribution of outdoor air pollution exposures. Estimates of household energy access and use are modeled by accounting for heterogeneous household energy choices and affordability constraints for rural and urban populations spanning the entire income distribution. Results are presented for 2030 for a set of policy scenarios on air pollution, climate change and energy access and include spatially explicit emissions of air pollutants; ambient concentrations of PM2.5; and health impacts in terms of disability adjusted life years (DALYs) from both ambient and household air pollution. The results stress the importance of enforcing current worldwide air quality legislation in addressing the impacts of outdoor air pollution. A combination of stringent policies on outdoor air pollution, climate change and access to clean cooking fuels is found to be effective in achieving reductions in average ambient PM2.5 exposures to below World Health Organization recommended levels for a majority of the world's population and results in a significant decline in the global burden of disease from both outdoor and household air pollution.     

欧盟《气候与能源2030政策框架》要点分析与启示

通过分析《气候与能源2030政策框架》（以下简称《框架》）方案要点,认为欧盟2030年的减排目标相对2020年承诺目标更为积极,可再生能源目标略高于之前官方预期。由于东欧国家的参与,欧盟一方面获得了这些国家盈余的排放配额,帮助欧盟作为一个整体实现减排目标;另一方面,成员国经济发展水平差异增大,导致欧盟施行相对积极的环境政策阻力加大,未来大幅调整减排目标的可能性不大。《框架》目标将可能对2020年后国际碳市场需求预估产生影响,未来国际碳市场的健康运行,将不仅需要欧盟外的发达国家提出具有雄心的减排目标,也需要欧盟提高减排目标,增加其对于国际减排配额的需求;此外,欧盟辅助实现40%减排目标的相关生产标准和措施,可能对未来全球自由贸易产生影响,其他国家尤其是对外贸易依存度较高的发展中国家需要密切关注相关动向。《框架》方案所提出的以应对气候变化引领和促进经济发展、采用组合目标且针对不同目标采取不同实现形式、展现制定目标的透明度、充分考虑成员国差异等提法和操作方式值得中国借鉴。     

我国能源活动CO2排放在2020—2022年之间达到峰值情景和可行性研究

全球到2100年实现将温度上升控制在和工业化前相比2℃以内,已经成为一个政策目标。本文结合中国能源环境政策综合评估（IPAC）模型的近期研究结果,分析了实现全球2℃温升目标下我国能源活动的CO₂排放情景,并对其关键因素进行研究,得到实现这些情景的可行性。研究表明,考虑到我国经济转型、能源效率提升、可再生能源和核电的发展、碳捕获和碳封存技术,以及低碳生活方式的转变,我国能源活动的CO₂排放是可以在2025年之前,甚至更早（如在2020—2022年）实现排放峰值,峰值总量在90亿t左右,之后开始下降,这和我国在全球2℃温升目标情景中给予的碳空间相一致,支持我国未来在全球温室气体减排中的国际合作路径,以及国内低碳发展政策的制定。实现这样的减排路径,需要在既有的环境和能源政策之外制定针对气候变化减缓的明确和长期的政策,如碳定价。     

Global implications of joint fossil fuel subsidy reform and nuclear phase-out: an economic analysis

This paper uses the OECD’s global recursive-dynamic general equilibrium model ENVLinkages to examine the mid-term economic consequences and the optimal energy supply mix adjustments of a simultaneous implementation of i) a progressive fossil fuel subsidy reform in emerging and developing economies and ii) a progressive phase out of nuclear energy, mostly affecting OECD countries, China and Russia. The analysis is then transposed in the context of climate change mitigation to depict the corresponding implications for CO2 emissions, to assess the interactions between the two energy policies, and to derive how the associated costs are affected by the different policies. The phase-out scenario projects a nuclear capacity halved by 2035 as compared to the Baseline, corresponding to $120 billion losses in value-added of the nuclear industry for that year. The nuclear phase-out leaves GDP and real household consumption marginally affected in energy importing countries. A multilateral subsidy reform is more likely to affect international fossil fuel prices and alter patterns of global energy use. The fossil fuel subsidy reform, when implemented together with nuclear phase-out, more than offsets negative consequences on household consumption but still leads to a decrease in global CO2 emissions. The combined policies help save the equivalent of current energy consumption in the Middle East. Combining a climate policy, an effective fossil fuel subsidy reform, even with a lower nuclear share in the power mix, brings about multiple benefits to OECD countries which reduce their energy bill and achieve large climate change mitigation at lower cost.     

Global climate policy and local energy politics: is India hiding behind the poor?

Along with the large middle-income countries Brazil, China, and South Africa, India has been put under increasing pressure to shoulder parts of the mitigation burden and commit to national emission reduction targets. India, however, refers to its limited capacity and widespread poverty. Is India hiding behind its poor? While others examine the distribution of emissions within the country to answer this question, we study domestic policy making for energy subsidies and access to clean energy. Empirical evidence suggests that domestic policy making is at least partially consistent with the pro-poor arguments advanced at the international level. Given their large number and the country's democratic system, the poor do have some weight in Indian politics. However, pro-poor policies end where they do not translate into greater vote shares. Moreover, India's international position ignores the existing complementarities between climate-friendly and pro-poor activities.

Policy relevance

Despite India's recent growth spurt, its concern to fight energy poverty at home before engaging in any commitments on climate policy at the international level should be taken seriously within the international negotiations. Policy making in India is driven by democratic incentives, which, in this case, work to the benefit of the poor. Pro-poor policies may not go as far as one would wish from a developmental perspective, but the impact of the masses of the poor on domestic policy making is politically significant and cannot be ignored. This also provides some broader lessons for mitigation and adaptation policies in developing countries: politicians respond to incentives and support will only reach the needy if the appropriate incentives are in place. While we observe some significant commitment and implementation problems even in a democratic country like India, such problems must be expected to be even more serious elsewhere. This should not be overlooked when designing institutions for the allocation of climate finance, such as the Green Climate Fund.     

Fossil fuel addiction and the implications for climate change policy

This paper applies a behavioral economics model of cigarette addiction to the issue of fossil fuel usage and climate change. Both problems involve consumption of a currently beneficial product that causes detrimental effects in the distant future and for which current reductions in usage induces an adjustment cost. The paper argues that because fossil fuel control requires solving an international public goods problem as well as an addiction-like problem, breaking it will be more challenging. Using insights from the model, it also suggests that fossil fuel addiction, like cigarette addiction, may generate a long period of time in which people express sincere desire to convert to clean energy, but accomplish little to achieve that outcome. Finally the paper examines the history of the international anti-smoking campaign to draw insights for the campaign against global climate change. The analogy suggests that policies to reduce the present cost of non-carbon energy sources to induce voluntary adjustments in energy usage, or, policies that induce cleaner usage of fossil fuels, or geo-engineering policies that work to reverse the warming effects of higher CO₂ concentrations, may be more viable than policies that raise the cost of current fossil fuel consumption.     

Global sustainability,innovation and governance dynamics of national smart electricity meter transitions

Smart electricity meters are a central feature of any future smart grid, and therefore represent a rapid and significant household energy transition, growing by our calculations from less than 23.5 million smart meters in 2010 to an estimated 729.1 million in 2019, a decadal growth rate of 3013%. What are the varying economic, governance, and energy and climate sustainability aspects associated with the diffusion of smart meters for electricity? What lessons can be learned from the ongoing rollouts of smart meters around the world? Based on an original dataset twice as comprehensive as the current state of the art, this study examines smart meter deployment across 41 national programs and 61 subnational programs that collectively target 1.49 billion installations involving 47 countries. In addition to rates of adoption and the relative influence of factors such as technology costs, we examine adoption requirements, modes of information provision, patterns of incumbency and management, behavioral changes and energy savings, emissions reductions, policies, and links to other low-carbon transitions such as energy efficiency or renewable energy. We identify numerous weak spots in the literature, notably the lack of harmonized datasets as well as inconsistent scope and quality within national cost-benefit analyses of smart meter programs. Most smart meters have a lifetime of only 20 years, leading to future challenges concerning repair, care, and waste. National-scale programs (notably China) account for a far larger number of installations than subnational ones, and national scale programs also install smart meters more affordably, i.e. with lower general costs. Finally, the transformative effect of smart meters may be oversold, and we find that smart electricity meters are a technology that is complementary, rather than disruptive or transformative, one that largely does not challenge the dominant practices and roles of electricity suppliers, firms, or network operators.     

Swimming upstream: addressing fossil fuel supply under the UNFCCC

Reducing fossil fuel supply is necessary to meet the Paris Agreement goal to keep warming ‘well below 2°C’, yet the Agreement is silent on the topic of fossil fuels. This article outlines reasons why it is important that Parties to the Agreement find ways to more explicitly address the phasing out of fossil fuel production under the UNFCCC. It describes how countries aiming to keep fossil fuel supply in line with Paris goals could articulate and report their actions within the current architecture of the Agreement. It also outlines specific mechanisms of the Paris Agreement through which issues related to the curtailment of fossil fuel supply can be addressed. Mapping out a transition away from fossil fuels – and facilitating this transition under the auspices of the UNFCCC process – can enhance the ambition and effectiveness of national and international climate mitigation efforts.

Key policy insights

• The international commitment to limit global average temperature increases to ‘well below 2°C’ provides a strong rationale for Parties to the Paris Agreement and the UNFCCC to pursue a phase-down in fossil fuel production, not just consumption.

• Several countries have already made commitments to address fossil fuel supply, by agreeing to phase down coal or oil exploration and production.

• Integrating these commitments into the UNFCCC process would link them to global climate goals, and ensure they form part of a broader global effort to transition away from fossil fuels.

• The Paris Agreement provides a number of new opportunities for Parties to address fossil fuel production.

     

Developing Africa’s energy mix

Africa is growing rapidly both in terms of population size and economically. It is also becoming increasingly clear that fossil fuels impose a high price on society through local environmental pollution and Africa’s particular vulnerability to climate change. At the same time, Africa has an excellent renewable energy potential and prices for renewable energy are reaching the price range of fossil fuels. Comparing results from state-of-the-art Integrated Assessment Models we find different options for achieving a sustainable energy supply in Africa. They have in common, however, that strong economic development is considered compatible with the 2°C climate target. Taking both challenges and appropriate solutions into account, some models find that a complete switch to renewable energy in electricity production is possible in the medium term. The continental analysis identifies important synergy effects, in particular the exchange of electricity between neighbouring countries. The optimal energy mix varies considerably between African countries, but there is sufficient renewable energy for each country. The intermittency and higher capital intensity of renewable energy are important challenges, but proven solutions are available for them. In addition, we analyse the political economy of a sustainable energy transition in Africa.

Key policy insights

• An almost complete shift towards renewable energy (RE) is considered feasible and affordable in Africa.

• By 2050, electricity generation could be sourced largely from solar, wind and hydro power.

• Prices for RE in Africa are now within the price range of fossil fuels, partly due to the excellent RE potential.

• The optimal energy mix varies strongly between countries, but RE is sufficiently available everywhere.

• Addressing intermittency is possible, but requires investments and cooperation on the grid.

     

Germany—a pioneer on earthen feet?

Abstract

Germany is one of the two OECD countries having achieved substantial greenhouse gas reductions in the last decade. While a part was large reductions in industry after the economic crash in East Germany, a relevant share is due to the huge public infrastructure investments in East Germany. The real success of German climate policy in the past decade is the strong reduction of methane and nitrous oxide which has been almost unnoticed.

German climate policy is a good example of how lobbying of interest groups leads to a complex maze of hundreds of measures whose effects are difficult to evaluate. Paradoxically, policies have focused on expensive measures and Germany clearly is a pioneer in the most expensive forms of renewable energy. Concerning cost-effective measures and market instruments, Germany is a laggard. Only slowly, policymakers start to notice this distortion and first, shaky steps towards a more cost-efficient policy are made. Several challenges such as nuclear phase-out and trends in household energy consumption will put pressure on government to embrace the Kyoto Mechanisms and to refocus domestic instruments well before the first commitment period.     

Germany—a pioneer on earthen feet?

Germany is one of the two OECD countries having achieved substantial greenhouse gas reductions in the last decade. While a part was large reductions in industry after the economic crash in East Germany, a relevant share is due to the huge public infrastructure investments in East Germany. The real success of German climate policy in the past decade is the strong reduction of methane and nitrous oxide which has been almost unnoticed.German climate policy is a good example of how lobbying of interest groups leads to a complex maze of hundreds of measures whose effects are difficult to evaluate. Paradoxically, policies have focused on expensive measures and Germany clearly is a pioneer in the most expensive forms of renewable energy. Concerning cost-effective measures and market instruments, Germany is a laggard. Only slowly, policymakers start to notice this distortion and first, shaky steps towards a more cost-efficient policy are made. Several challenges such as nuclear phase-out and trends in household energy consumption will put pressure on government to embrace the Kyoto Mechanisms and to refocus domestic instruments well before the first commitment period.