Can Environmental Regulations Promote Greenhouse Gas Abatement in OECD Countries? Command-and-Control vs. Market-Based Policies

In response to global warming, greenhouse gas (GHG) abatement has been one of the top priorities of governments, and a large variety of environmental regulation policies have been implemented in past decades. Using panel data from 27 OECD countries over the period of 2005–2012, this study measures and compares the stringency level of command-and-control and market-based environmental regulations. The differentiated impacts and indirect effects of environmental regulations on GHG emissions are tested empirically. The results show that: (1) Both command-and-control and market-based environmental regulations have effects on GHG abatement in OECD countries, and there is a non-linear relationship between environmental regulations and GHG discharge, in which stringent command-and-control environmental regulations and mild market-based regulation policies are preferred; (2) Command-and-control environmental regulations reduce GHG emissions by improving the technological level, rather than the energy consumption structure. In contrast, market-based environmental regulations can promote GHG abatement through the intermediary effects of both technological progress and the energy consumption structure. The findings provide implications for OECD countries to further reduce GHG emissions.

Electrofuels from excess renewable electricity at high variable renewable shares: cost, greenhouse gas abatement, carbon use and competition

Renewable transport fuels stem either from renewable electricity or biomass. We perform a model-based systems analysis of the usage of electricity, biomass and carbon for fuel production, focusing on greenhouse gas abatement and cost.

‘Green’ Building as an Urban Branding Tool: The Israeli Example

Over the last two decades, greenhouse gas abatement through energy conservation has become a major goal in developed countries. This challenges the building sector to become more environmentally responsible and resource-efficient, especially since it represents a large potential source of energy savings. In recognition of the benefits of green building, an increasing number of countries are devising green strategies for both public and private sector construction. Studies have examined the construction cost “premium” involved in achieving green certification, suggesting that the additional costs are relatively low, around 2% on average. Evidence indicates, however, that “green premia” in terms of rental and sales prices of properties in certified green buildings are systematically higher than 2%. Thus, making ‘green’ buildings affordable to sectors of the population which “need” it the most, will likely depend on government funding.

Are Sub-National Agreements for Carbon Abatement Effective?

Although national commitments to the Paris Climate Accord have waned, carbon mitigation by sub-national entities is on the rise globally. We examine the effectiveness of sub-national jurisdictions (e.g., states, provinces, cities) in collectively enacting greenhouse gas abatement strategies. We develop a simple model to explore the conditions under which an agreement among sub-national jurisdictions within a country may lead to substantial carbon abatement relative to a national policy determined through majority rule. We find that, in the absence of a functional national policy response, a coordinated sub-national agreement can generate meaningful abatement. This could form an important stopgap measure in the absence of better alternatives.

Electrofuels from Excess Renewable Electricity at High Variable Renewable Shares: Cost, Greenhouse Gas Abatement, Carbon Use and Competition

Increasing shares of variable renewable electricity (VRE) generation are necessary for achieving high renewable shares in all energy sectors. This results in increased excess renewable electricity (ERE) at times when supply exceeds demand. ERE can be utilized as a low-emission energy source for sectorcouplingthroughhydrogenproductionviaelectrolysis, whichcanbeuseddirectlyorcombined with a carbon source to produce electrofuels. Such fuels are crucial for the transport sector, where renewable alternatives are scarce. However, while ERE increases with raising VRE shares, carbon emissions decrease and may become a limited resource with several usage options, including carbon storage (CCS). These counteracting effects for the electrofuel production have not been analysed before. Here we perform a model based analysis for the German case until 2050, with a general analysis for regions with a high VRE reliance. Results indicate that ERE-based electrofuels can achieveagreenhousegas(GHG)abatementof74MtCO2eqyearly(46%ofcurrentGermantransport emissions) by displacing fossil fuels, at high fuel-cell electric vehicle (FCEV) shares, at a cost of 250320 € t CO2eq−1. The capital expenditure of electrolysers was found not to be crucial for the cost, despitelowcapacityfactorsduetovariableEREpatterns. Carbonwilllikelybecomealimitingfactor when aiming for stringent climate targets and renewable electricity-based hydrocarbon electrofuels replacing fossil fuels achieve up to 70% more GHG abatement than CCS. Given (1) an unsaturated demandforrenewablehydrocarbonfuels,(2)asaturatedrenewablehydrogendemandand(3)unused ERE capacities which would otherwise be curtailed, we find that carbon is better used for renewable fuel production than being stored.<br>

Electrofuels from Excess Renewable Electricity at High Variable Renewable Shares: Cost, Greenhouse Gas Abatement, Carbon Use and Competition

Increasing shares of variable renewable electricity (VRE) generation are necessary for achieving high renewable shares in all energy sectors. This results in increased excess renewable electricity (ERE) at times when supply exceeds demand. ERE can be utilized as a low-emission energy source for sectorcouplingthroughhydrogenproductionviaelectrolysis, whichcanbeuseddirectlyorcombined with a carbon source to produce electrofuels. Such fuels are crucial for the transport sector, where renewable alternatives are scarce. However, while ERE increases with raising VRE shares, carbon emissions decrease and may become a limited resource with several usage options, including carbon storage (CCS). These counteracting effects for the electrofuel production have not been analysed before. Here we perform a model based analysis for the German case until 2050, with a general analysis for regions with a high VRE reliance. Results indicate that ERE-based electrofuels can achieveagreenhousegas(GHG)abatementof74MtCO2eqyearly(46%ofcurrentGermantransport emissions) by displacing fossil fuels, at high fuel-cell electric vehicle (FCEV) shares, at a cost of 250320 € t CO2eq−1. The capital expenditure of electrolysers was found not to be crucial for the cost, despitelowcapacityfactorsduetovariableEREpatterns. Carbonwilllikelybecomealimitingfactor when aiming for stringent climate targets and renewable electricity-based hydrocarbon electrofuels replacing fossil fuels achieve up to 70% more GHG abatement than CCS. Given (1) an unsaturated demandforrenewablehydrocarbonfuels,(2)asaturatedrenewablehydrogendemandand(3)unused ERE capacities which would otherwise be curtailed, we find that carbon is better used for renewable fuel production than being stored.<br>

Small-Scale Modelling of Individual Greenhouse Gas Abatement Measures in Industry

The dynamic bottom-up modelling of greenhouse gas (GHG) abatement measures in industry makes it possible to derive consistent transformation paths on the basis of heterogeneous, process-specific developments. The main focus is on the development of a transparent methodology for small-scale modelling and combination of individual GHG abatement measures. In this way, interactions between GHG abatement measures are taken into account when deriving industrial transformation paths. The presented three-part methodological approach comprises the preparation (1) and implementation (2) of GHG abatement measures as well as the resulting effects on the output parameters (3) in a technology mix module. In order to consider interactions in the measures implementation, year-specific overall measure matrices are created and prioritised based on the GHG abatement costs. Finally, the three-part methodology is tested in a consistent technology mix scenario. The results show that the methodology enables integrated industrial technology mix scenarios with a high level of climate ambition based on a plausible development of energy consumption and emissions. Compared to the reference scenario, the process-and energy-related emissions decrease by 90 million tCO2 (77% of the 1990 level in 2050). The developed methodology and the related technology mix scenario within the framework of the bottom-up industry model SmInd can support strategic decision-making in politics and an efficient transition to a greenhouse gas neutral industry.