reducing greenhouse gas emissions in hawaii

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October 8, 2009 www.uhero.hawaii.edu/eggs 1 Reducing Greenhouse Gas Emissions in Hawai‘i Denise Eby Konan, Ph.D. Professor, Department of Economics Director, Center for Sustainable Coastal Tourism Fellow, UHERO and REIS Renewable Energy and Island Society October 8, 2009

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Denise Konan (Econ Prof at UHM) presents detailed data about the carbon intensity of Hawaii industries and residents, and suggestions on what industries would benefit most from efficiency improvements. Slides from the REIS seminar series at the University of Hawaii at Manoa on 2009-10-08.

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Page 1: Reducing Greenhouse Gas Emissions in Hawaii

October 8, 2009 www.uhero.hawaii.edu/eggs 1

Reducing GreenhouseGas Emissions in Hawai‘i

Denise Eby Konan, Ph.D.Professor, Department of Economics

Director, Center for Sustainable Coastal TourismFellow, UHERO and REIS

Renewable Energy and Island Society October 8, 2009

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Energy in the USA

Source: EIA Annual Energy Outlook (2009)

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Renewable Energy in theUSA

Source: EIA Annual Energy Outlook (2009)

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Energy Risks

Source: EIA Annual Energy Outlook (2009)

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Vulnerable energy security:Energy consumption by source(2007)

Hawaii USA Average

Source: EIA State Energy Data System (2008)

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Figure designed and created by UHERO EGGS

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Hawaii and climate change…

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Climate change threat forHawaii: Sea-Level Rise

Land within 1 ft of high tideImage from Chip Fletcher, Hawaii Mapping Group, SOEST

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Climate change threat toHawaii: Ocean acidification

CO2 going up above the oceanand in the ocean

pH going down in the upperocean - becoming more acidic

Observational results from Station Aloha(Dore et al., 2009)

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Climate change threat toHawaii: Ecosystem collapse

A Pteropod after 48 hours of living low pH ocean conditions (e is acontrol)

Pteropods contribute to the diet of diverse carnivorous zooplankton,myctophid and nototheniid fishes, North Pacific salmon, mackerel,herring, cod and baleen whales.

Source: Orr et al (Nature, 2005)

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Hawaii addressing climate change:ACT 234 - Hawaii’s Global WarmingSolutions Act

Second state in the country toenact GHG regulations – June2007

10 member task forcedeveloping plan to meet 1990GHG levels by 2020

Report GHG work plan toLegislature by end of 2010

Department of Health is incharge

On January 1, 2012: Rules and regulatory scheme go into effect

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Hawaii’s GHG Sources

Chevron Kapolei Refinery (Google Maps)

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Energy & Greenhouse GasSolutions: Mission

To analyze and tailor energy and climatechange policy by assessing technologyoptions and the associated environmentaland economic impacts.

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EGGS: Core Goals1. Engage in rigorous analysis and establish a global

research reputation.2. Develop and maintain data and models on Hawai’i

energy, economy, and resulting greenhouse gas (GHG)emissions.

3. Showcase Hawai’i solutions that demonstrate asustainable alternative for others.

4. Develop solution-based education and outreachprograms on energy and GHG solutions for a variety oflevels (legislators, business community, and K-12).

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Hawaii GHG Profile: 1990 and 2005(report available on our website)

Amount of GHG Emission (MMTCO2E)Amount of GHG Emission (MMTCO2E) 19901990 20052005Energy 23.232 24.161 Stationary Energy Sources 10.163 10.854

Electric Power Sector 6.804 8.362Residential Energy Sector 0.350 0.330Commercial Energy Sector 0.762 0.287Industrial Energy Sector 2.246 1.874

Mobile Energy Sources 13.069 13.307Air Transportation Sector 7.487 5.991Ground Transportation Sector 3.666 5.601Marine Transportation Sector 1.916 1.715

Non-Energy Sources 1.456 2.269 Industrial Processes Sector 0.197 0.844 Agriculture Sector 0.634 0.453 Waste 0.625 0.972

Grand TotalGrand Total 24.68724.687 26.43026.430

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Hawaii GHG Profile:Biggest changes since 1990

%GHGemissionschangecontribu3onbysector

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Ground Transportation GHG Emissions:Total, and Per Capita

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Greenhouse Gas Emissions (MT CO2E Per Capita)

6.6

0.7

2.0 1.5

6.7

4.7

3.3

4.4

1.7

1.4

1.3

1.8

6.1

0.30.30.2

0

4

8

12

16

20

24

1990 2005

Non-Energy Sources

Marine Transportation Sector

Ground Transportation Sector

Air Transportation Sector

Industrial Energy Sector

Commercial Energy Sector

Residential Energy Sector

Electric Power Sector

MTCO2E per Capita

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GHG Emissions Accounting:An example equation

CO2 emissions = Af,h * Fc,h * Fox* (44/12) Af,h : heat content of fuel consumed (GJ converted from

therms or million BTU) Fc,h : Carbon content of fuel on a heating value basis (15.3

kg C/GJ) Fox : Oxidation factor to account for fraction of carbon in

fuel that remains as soot or ash (44/12) : Ratio of the molecular weight of CO2 to that of

carbon

Source: WRI GHG Protocol

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Hawaii GHG ProfileConclusions

Act 234 emissions have increased by about 23% from 1990 to 2005

Per dollar output, Hawai‘i is more GHG intensivein 2005 than in 1990 although per capita is down

Power and transport account for about 70% ofall GHG emissions

Ground transportation contributes about 20percent and is growing rapidly

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EGGS Modeling:New publication

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Rationale:Tourism’s Role in Hawaii’s Economy

$11.4 billion, in 2008 $1,700 per person, per

trip spending 18% of Gross State

Product, current dollars 10% of all civilian jobs

Statewide in 2003 6.8 million visitor arrivals 64 million visitor days High stakes for Hawaii

economyDBEDT2008HawaiiDataBook

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Data and methods:Data sources

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Data and Methods:Economic data - 131 economicsectors

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….AndEnergyDataData and Methods:Detailed Energy Data

Industry

Coal

(MBTU)

Other Oil

Products

(MBTU)

Aviation

Gasoline

(MBTU)

Gasoline

(MBTU)

Diesel

(MBTU)

Jet Fuel

(MBTU)

LPG

(MBTU)

Residual

Fuel Oil

(MBTU)

Sugarcane 0 0 0 12,389 43,038 0 28 0

Vegetables 0 0 0 3,644 12,661 0 8 0

Macadamia nuts 0 0 0 17,723 61,569 0 39 0

Pineapples 0 0 0 26,375 91,625 0 59 0

Other fruits 0 0 0 7,768 26,987 0 17 0

Coffee 0 0 0 20,128 69,924 0 45 0

Greenhouse and nursery products 0 0 0 6,443 22,383 0 14 0

Dairy cattle and milk production 0 0 0 2,930 10,180 0 7 0

Poultry and eggs 0 0 0 1,798 6,245 0 4 0

Cattle Ranching 0 0 0 1,140 3,959 0 3 0

Hog and pig farming 0 0 0 431 1,498 0 1 0

Misc. livestock 0 0 0 508 1,764 0 1 0

Aquaculture 0 0 0 2,447 8,500 0 5 0

Other agricultural products 0 0 0 4,834 16,792 0 11 0

Commercial fishing 0 0 0 5,296 1,246,826 0 0 0

Support activities for agriculture 0 0 0 0 0 0 426 0

Landscape services 0 0 0 6,575 2,565 0 0 0

Mining 0 0 0 9,943 54,415 0 0 0

Single family housing construction 0 916,811 0 44,620 227,727 0 9,649 4,207

Multiple family housing construction 0 513,771 0 27,071 138,162 0 0 2,553

Commercial building construction 0 2,592,832 0 129,681 661,851 0 18,154 12,228

Hotel construction 0 260,656 0 12,732 64,980 0 2,623 1,201

Road construction 0 2,129,614 0 110,110 561,968 0 5,497 10,383

Other construction 0 468,631 0 24,693 126,023 0 0 2,328

Maintenance & repair construction 0 1,179,340 0 62,140 317,144 0 0 5,859

Fruit and vegetable product mfg 0 118,336 0 11,799 4,603 0 9,385 0

Sugar mfg 0 2,705,837 0 4,252 95,478 0 0 984,860

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Methods:Input-Output Tables

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Economic output andexpenditures ($ million)

Industry OutputHousehold

expendituresVisitor's

expenditures

Accommodations 12,496.2 5,424.1 3,892.2Restaurants 2,274.7 1,036.5 1,126.2Trade 6,311.9 2,979.9 1,464.8Entertainment 844.2 234.7 569.4

Golf 229.8 108.4 141.3

Air Transportation 2,044.1 337.5 1,555.6Transportation 1,464.8 408.9 545.2

Agriculture 823.5 131.5 18.4

Construction 3,524.3 - -

Manufacturing 3,416.4 685.8 101.4

Services 15,181.0 8,018.4 573.4

Utilities 1,691.0 595.3 -

Government 8,565.8 264.9 45.6

Total 58,867.6 20,225.9 10,033.5

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Industry output in Hawaii

IndustryOutput

($ million) OutputCompensation of

employees

Accommodations 12,496.2 21.2% 7.8%

Restaurants 2,274.7 3.9% 3.7%

Trade 6,311.9 10.7% 11.1%

Entertainment 844.2 1.4% 1.4%

Golf 229.8 0.4% 0.4%

Air Transportation 2,044.1 3.5% 2.4%

Transportation 1,464.8 2.5% 1.7%

Agriculture 823.5 1.4% 1.3%

Construction 3,524.3 6.0% 5.8%

Manufacturing 3,416.4 5.8% 2.4%

Services 15,181.0 25.8% 27.2%

Utilities 1,691.0 2.9% 1.6%

Government 8,565.8 14.6% 33.2%

Total 58,867.6 100.0% 100.0%

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Methods:Calculating GHGs from directand indirect demand Total demand vector (X) is function of intermediate and final

demand (Y), A is matrix of technical coefficients X = ( I - A)-1 Y

Fuel requirements matrix (F X) defined as gallons by fuel typeassociated with final demand YF X = F ( I - A)-1 Y

Energy intensity matrix total fuel required to produce onedollars worth of final demand in each sector (Yi = 1)

Emissions intensity matrix total GHG emissions associatedwith one dollars worth of final demand

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The top ten economic sectors’direct GHG emission - metrictons CO2E

Industry Carbon Dioxide Methane Nitrous Oxide

Electricity 6,806,708.60 4,351.14 3,519.44

Air transportation 3,636,808.12 2,561.97 287.12

Utility gas 242,704.95 101.66 52,356.48

Construction 229,037.92 261.28 1,142.56

Hotels 184,796.88 175.03 11,647.60

Other services 152,312.61 105.57 204.24

Petroleum manuf. 147,339.04 256.68 2.96

Restaurants 135,693.90 124.66 9,620.00

Health services 134,887.81 145.59 2,148.96

Finance business 123,613.35 138.69 139.12

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Ranking Carbon Intensity:metric tons CO2E / $ million

Electricity 7,179.7 Chemical manufacturing 232.9Utility gas 2,680.2 Parking lots 226.7Air transportation 1,771.8 Automobile rental 225.8Commercial fishing 1,484.3 Waste management 225.3Petroleum manufacturing 765.2 Construction and mining 224.6Sightseeing transport 443.2 Crops 214.3Transit 405.3 Other manufacturing 209.4Ground transportation 400.6 Animal 202.0Recreation 378.3 Clothing manufacturing 182.9Food processing 378.1 Health services 178.6Golf courses 363.0 Travel reservations 165.4Laundry 345.0 Education private 122.5Hotels 337.0 Retail trade 106.6Other services 326.4 Wholesale trade 93.5Trucking 291.4 Information 85.3Water sewer 286.9 Real estate rental 81.9Water transportation 285.8 Landscaping services 75.0Restaurants 273.8 Finance business 73.8Amusement 271.5 Performing arts 68.1Museums historical 254.4 Other government 29.9

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Summary table: Resident and visitorenergy and GHG emissions

Energy, trillion BTU

GHG emissionsMMTCO2e

Total 323.3 23.4 Resident 126.4 9.3 Visitor 72.9 5.2 Visitor less air 33.5 2.4

Per annum MBTU GHG metric tons Resident 104 7.7 Visitor 464 32.9 Visitor less air 213 15.4 Per capita 267 19.3Visitor factor 4.4 4.3Visitor factor less air 2.0 2.0

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Summary GHG Emissionsof Tourism 22% of Hawaii’s total

emissions 5.2 million metric tons of

CO2 equiv

Per Capita Tourist: 33 metric tons

Resident: 7.7 metric tons

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Future research

Endogenous emissions built into a dynamiccomputable general equilibrium model ofHawaii’s economy

Waikiki district benchmarking and analysis Model carbon tax, cap and trade, command

and control policy options for the State Assess economic and environmental impacts

of alternative scenarios

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Carbon savings per 1% gasoline conservation

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Carbon savings per 1% electricity conservation

Givesoutrageousinsighttoeconomicandenvironmentsolu9on

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Get into theSolution

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Hawaii Clean EnergyInitiative

h>p://www.hawaiicleanenergyini3a3ve.org/

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Hawaii Energy Options:Just a few!

Wind

Sea Water Air Conditioning (SWAC)Solar

Wave EnergyHawaii Clean Energy Initiative

OceanlinxOceanlinx

HECO

Honolulu Sea Water Air Conditioning

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Thank you to our sponsorsand partners!

Michael Saalfeld Pierre and Pamela Omidyar Fund at the Hawaii Community

Foundation Hawaii State Department of Health Hawaii Natural Energy Institute Renewable Energy and Island Sustainability International Center for Climate and Society UHM Outreach College