effects of structural change and climate policy on long-term shifts in lifecycle energy efficiency...

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Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh, Geoff Morrison, Jacob Teter (University of California at Davis) Raul Quiceno (Shell Research Limited) Kenneth Gillingham (Yale School of Forestry & Environmental Studies)

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Page 1: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Effects  of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint

Gouri Shankar Mishra

Sonia Yeh, Geoff Morrison, Jacob Teter (University of California at Davis)Raul Quiceno (Shell Research Limited)

Kenneth Gillingham (Yale School of Forestry & Environmental Studies)

Page 2: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

The study projects lifecycle energy efficiency for crude, natural gas, coal, and nuclear and renewables to 2100

What is the impact of carbon policy on the evolution of lifecycle efficiency?

What are the differences in lifecycle efficiencies of energy resources across regions?

Between developed and developing countries?

What are the relative roles of technological advancements and structural changes in evolution of lifecycle efficiency?

Carbon intensity of energy resources in terms of CO2/MJ(useful) instead of CO2/MJ(final)

Lifecycle Energy Efficiency = Useful Energy / Primary Energy

Page 3: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

The lifecycle thermodynamic efficiency considers energy flows from primary to useful energy

Figure 1. Energy  system schematic showing the lifecycle stages (pz). The box represents the boundary for estimating lifecycle efficiency in this study.

Page 4: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

MethodologyGeneral Change Assessment Model (GCAM) developed by Pacific Northwest National Laboratory (PNNL)

Partial-equilibrium model

Links representations of global energy, agriculture, land-use, and climate systems

Three end-uses: Industry, Transportation and Buildings (commercial and residential)

14 regions

Scenario Analysis

• Total 15 scenarios

• Carbon Policy – No carbon policy, Moderate carbon policy (RCP6.0), and Aggressive Carbon Policy (RCP 4.5)

• CCS and No-CCS

• Technological progress: Reference and Advanced

Page 5: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Where are the energy losses?

Energy losses at various stages of fuel conversion and the useful energy consumption by energy resource for the BAU scenario

Page 6: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Time trends of Efficiency

FIG 3: Potential lifecycle energy efficiencies (blue) and total primary energy (orange) across 15 scenarios (Global Level)

Lifecycle efficiency (%)

Primary Energy (EJ)

Page 7: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Time trends of Efficiency

Lifecycle efficiency (%)

Primary Energy (EJ)

Average of No-Policy Scenarios

Page 8: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Lifecycle efficiency (%)

Primary Energy (EJ)

Average of No-Policy Scenarios

Average of Moderate Carbon Policy Scenarios (RCP6.0)

Time trends of Efficiency

Page 9: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Lifecycle efficiency (%)

Primary Energy (EJ)

Average of No-Policy Scenarios

Average of Moderate Carbon Policy Scenarios (RCP6.0)

Average of High Carbon Policy Scenarios (RCP4.5)

There is no clear relationship between lifecycle efficiency and level of carbon price.

Page 10: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Complementary roles of (i) efficiency, (ii) energy conservation, and (iii) substitution of fossil resources with

decarbonized energyto achieve climate change mitigation goals.

Lifecycle efficiency (%)

Primary Energy (EJ)

Average of No-Policy Scenarios

Average of Moderate Carbon Policy Scenarios (RCP6.0)

Average of High Carbon Policy Scenarios (RCP4.5)

There is no clear relationship between lifecycle efficiency and level of carbon price.

Page 11: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Structural shifts dampen improvements in efficiency due to technological progress

FIG 4: Depiction of the change in lifecycle energy efficiency over time for structural plus technological shifts (solid lines) and for only technological shifts (dashed lines).

While technological advancements at each energy conversion process and end-use lead to important reductions in primary energy use, structural shifts in how energy is used dampens the gains in lifecycle efficiency.

Page 12: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Developing countries have a higher lifecycle efficiency on average than developed countries

Developing countries have a higher lifecycle efficiency on average than developed countries. This is due to both structural and technological differences.

Page 13: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Carbon Intensity – CO2 emissions per unit of useful energy

En

erg

y R

es

ou

rce

CI

(to

n C

O2

/PJ

)

50

100

150

200

250

300

350CRUDE NG COAL ALL ENERGY

20

05

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00

20

05

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20

05

21

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20

05

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2005

2100 (BAU Scenario)

Page 14: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Carbon Intensity – CO2 emissions per unit of useful energy vs. final energy

En

erg

y R

es

ou

rce

CI

(to

n C

O2

/PJ

)

50

100

150

200

250

300

350CRUDE NG COAL ALL ENERGY

20

05

21

00

20

05

21

00

20

05

21

00

20

05

21

00

CI – CO2/PJ(final energy)

CI – CO2/PJ(useful energy)

2005

2100 (BAU Scenario)

• Changes in CI(useful energy) over time are more dramatic than changes in CI(final energy)

• Quantum of differences between the two CIs varies across energy resources

Page 15: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Carbon Intensity – CO2 emissions per unit of final energy vs. useful energy

En

erg

y R

es

ou

rce

CI

(to

n C

O2

/PJ

)

50

100

150

200

250

300

350CRUDE NG COAL ALL ENERGY

20

05

21

00

20

05

21

00

20

05

21

00

20

05

21

00

CI – CO2/PJ(final energy)

CI – CO2/PJ(useful energy)

2005

2100 (BAU)

2100 (Aggressive Policy without CCS)

• Carbon price has a higher impact on CI(useful) than CI(final) in case of coal

Page 16: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Implications on GHG EmissionsTotal CI, 2005

Global primary energy use and energy pathway lifecycle carbon intensity in 2005

Page 17: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Implications on GHG Emissions

Page 18: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Implications on GHG Emissions

Page 19: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Implications on GHG Emissions

Page 20: Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh,

Thank You

Effects  of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint

Gouri Shankar Mishra ([email protected])

Sonia Yeh, Gouri Shankar Mishra, Geoff Morrison, Jacob Teter (University of California at Davis)

Raul Quiceno (Shell Research Limited)

Kenneth Gillingham (Yale School of Forestry & Environmental Studies)