Induced Energy-Saving Efficiency Improvements Amplify Effectiveness of Climate Change Mitigation

Wang, Rong; Saunders, Harry D.; Moreno‐Cruz, Juan; Caldeira, Ken

doi:10.1016/j.joule.2019.07.024

Cited by 14 publications

(30 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We performed an analysis of the correlation between the daily rate of new COVID-19 cases and the total daily CO 2 emission reduction from 1 January to a given day (Materials and Methods). The rate of new COVID-19 cases is estimated in a 7-day moving window using a loga-rithmic method as (dN/dt)/N, 23 where N is the number of new daily confirmed local cases. Detailed statistics of the correlation analysis by province are listed in Table S3.…”

Section: Correlation Between the Daily Rate Of Covid-19 Cases And Co mentioning

confidence: 99%

Daily CO2 Emission Reduction Indicates the Control of Activities to Contain COVID-19 in China

et al. 2020

Self Cite

View full text Add to dashboard Cite

Lockdown measures are essential to containing the spread of coronavirus disease 2019 (COVID-19), but they will slow down economic growth by reducing industrial and commercial activities. However, the benefits of activity control from containing the pandemic has not been examined and assessed. Here we use daily carbon dioxide (CO 2 ) emission reduction in China estimated from statistical data of energy consumption and satellite data of nitrogen dioxide (NO 2 ) measured by the Ozone Monitoring Instrument (OMI) as an indicator for reduced activities consecutive to a lockdown. We perform a correlation analysis to show that a 1% day -1 decrease in the rate of COVID-19 cases is associated with a reduction in daily CO 2 emissions of 0.22±0.02% using statistical data of energy consumption relative to emissions without COVID-19, or 0.20±0.02% using satellite data of atmospheric column NO 2 . We estimate that swift action in China is effective in limiting the number of COVID-19 cases <100,000 with a reduction in CO 2 emissions of up to 23% by the end of February 2020, whereas a one-week delay would have required greater containment and a doubling of the emission reduction to meet the same goal. By analyzing the costs of health care and fatalities, we find that the benefits on public-health due to reduced activities in China are ten-fold larger than the loss of gross domestic product. Our findings suggest an unprecedentedly high cost of maintaining activities and CO 2 emissions during the COVID-19 pandemic and stress substantial benefits of containment in public health by taking early actions to reduce activities during the outbreak of COVID-19.

show abstract

Section: Correlation Between the Daily Rate Of Covid-19 Cases And Co mentioning

confidence: 99%

Daily CO2 Emission Reduction Indicates the Control of Activities to Contain COVID-19 in China

et al. 2020

Self Cite

View full text Add to dashboard Cite

show abstract

“…According to Wang, Saunders et al (2019), the real GDP (RGDP) is as a constant-elasticity-of-substitution (CES) production function of the energy and nonenergy goods, shown in Eq. ( 1).…”

Section: Dynamic Blockmentioning

confidence: 99%

“…is the elasticity of substitution between the energy and non-energy goods, and its centralised value is 0.4 given by Wang, Saunders et al (2019).…”

Section: Dynamic Blockmentioning

confidence: 99%

“…( 3), different from Wang, Saunders et al (2019) who defined the EUE based on the historical data. Wang, Saunders et al (2019) implicitly assumed that the consumption goods equal the production goods, which implies that the consumption of the imported goods is equal to the production of the export goods. In the reality, this assumption is seldom met in the open economy.…”

Section: Dynamic Blockmentioning

confidence: 99%

See 1 more Smart Citation

The Technical Impacts of the Carbon Tax in China

Chen

2021

Preprint

View full text Add to dashboard Cite

Despite the significant impacts of technology on the socioeconomic effects of climate policies, many previous researchers neglected the induced technical impacts and thus resulted in biased evaluations of climate policies. Hence, it is important that the induced technology should be endogenized in the policy evaluation framework. In this paper, I attempt to use a Computable General Equilibrium (CGE) model to quantify the technical impacts of the Chinese carbon tax. The technical impacts are denoted by the induced technological change (ITC), which is a function of the energy-use efficiency (EUE), energy-production efficiency (EPE), and nonenergy-production efficiency (ENE). The carbon tax will increase the energy cost share because the of the internalisation of the abatement costs. This paper empirically shows that the carbon tax will decrease the energy cost share and production efficiency but increase the energy use and nonenergy production efficiency. Overall, the carbon tax will promote the technological development, compared to the baseline scenario. In addition to the policy effects of the tax, the ITC will decrease the energy use and production efficiency but increase the nonenergy production efficiency. The ITC will increase the RGDP, decrease the household welfare, and increase the average social cost of carbon (ASCC). To summarise, despite that the carbon tax will decrease the welfare at the country and household level, the ITC of the carbon tax will increase the welfare at the country level but decrease the welfare at the household level. Under the ITC impacts, the emission abatement will become costlier.

show abstract

“…Wang et al [29] developed an original version of the Solow productivity model and analysed national-level historical data to investigate how energy-efficiency was affected by cost increases. They found that countries increased their energy efficiency or reduced their energy consumption by other means when the energy costs represented a larger fraction of the production costs.…”

Section: The Theory Of Induced Innovationmentioning

confidence: 99%

Carbon Tax, Carbon Leakage and the Theory of Induced Innovation in the Decarbonisation of Industrial Processes: The Case of the Port of Rotterdam

Gianoli

Bravo

2020

Sustainability

View full text Add to dashboard Cite

A higher price of CO2 emissions is required to enhance the industrial transition and investment in low-carbon technology. However, the specific mechanisms to tackle the risk of carbon leakage and create an attractive environment for green investment are highly contested in the academic literature. Opposing perspectives regarding the appropriateness and desirability of government intervention in the economy result in different approaches to the decarbonisation of industrial processes. This research builds on existing academic knowledge in the fields of carbon leakage, induced innovation and government intervention to assess the effects of a carbon tax in the industrial cluster of the Port of Rotterdam within the context of a carbon tax on industrial GHG emissions proposed in the Dutch National Climate Agreement. The main finding of this study shows that investment leakage constitutes the main threat instead of carbon leakage in the face of a higher carbon price. Regarding the theory of induced innovation, limited abatement options are available for the industrial cluster and there is the need to scale up existing technologies. Lastly, to both tackle the risk of investment leakage and enhance the scaling up of low-carbon technologies, government intervention in the form of regulations, subsidies and enabling conditions is vital.

show abstract

Induced Energy-Saving Efficiency Improvements Amplify Effectiveness of Climate Change Mitigation

Cited by 14 publications

References 55 publications

Daily CO2 Emission Reduction Indicates the Control of Activities to Contain COVID-19 in China

Daily CO2 Emission Reduction Indicates the Control of Activities to Contain COVID-19 in China

The Technical Impacts of the Carbon Tax in China

Carbon Tax, Carbon Leakage and the Theory of Induced Innovation in the Decarbonisation of Industrial Processes: The Case of the Port of Rotterdam

Contact Info

Product

Resources

About