Page 19 - Driving Force for Energy Demand
P. 19
ving Forces for Energy Demand 2010
Efficient and renewable supply, distribution and end-use technologies have
multiplicative effects, but constraining demand growth is crucial to the rate and
extent of reducing emissions (Barrett, Lowea, Oreszczyna, & Steadmana, 2008).
Clearly, the developed world will have to reduce its emissions to provide room
for emissions from developing nations or will have to support a massive
expiation of renewable energy generation in the developing world. To limit a
global average temperature increase to around 2°C (estimated to be the level
that will prevent dangerous interference with the climate system), global CO2
emissions will have to be stabilized around 10 Gt/a in 2050 (Krewitt, Simona,
Graus, Teske, Zervos, & Schäferd, 2008). To be able to achieve such a goal
renewable energy will have to provide as much as half of the world's energy
needs by 2050 which would include OECD countries limiting their emissions by as
much as 80% (Krewitt, Simona, Graus, Teske, Zervos, & Schäferd, 2008). To be
able to meet these incredibly ambitious targets, energy policies need to be put in
place to develop a low-carbon economy. Such a policy would need to include
energy pricing reform and policies for promoting energy efficiency and
renewable energy generation in addition to addressing the issue of carbon
leakage. Below is a list of four critical energy policy issues related to achieving a
global reduction in carbon emissions and the potential for global warming
(Pezzey, Jotzo, & Quiggin, 2007):
Emission pricing: A globally efficient (i.e. cost-effective) policy requires
emissions cuts at a similar marginal cost in all countries, and on all sources of
emissions where control policies are practicable. By emissions pricing it is
meant that governments create fairly pervasive, fairly uniform price
incentive to reduce emissions. Governments do this either by setting an
overall emissions cap and allowing emissions permit trading within it (cap
and trade); or by taxing emissions or with some hybrid combination of
trading and taxation (Pezzey, Jotzo, & Quiggin, 2007).
Technology policy: Government supports that include: subsidies for private
R&D and direct spending by government R&D agencies (Pezzey, Jotzo, &
Quiggin, 2007).
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 19
Efficient and renewable supply, distribution and end-use technologies have
multiplicative effects, but constraining demand growth is crucial to the rate and
extent of reducing emissions (Barrett, Lowea, Oreszczyna, & Steadmana, 2008).
Clearly, the developed world will have to reduce its emissions to provide room
for emissions from developing nations or will have to support a massive
expiation of renewable energy generation in the developing world. To limit a
global average temperature increase to around 2°C (estimated to be the level
that will prevent dangerous interference with the climate system), global CO2
emissions will have to be stabilized around 10 Gt/a in 2050 (Krewitt, Simona,
Graus, Teske, Zervos, & Schäferd, 2008). To be able to achieve such a goal
renewable energy will have to provide as much as half of the world's energy
needs by 2050 which would include OECD countries limiting their emissions by as
much as 80% (Krewitt, Simona, Graus, Teske, Zervos, & Schäferd, 2008). To be
able to meet these incredibly ambitious targets, energy policies need to be put in
place to develop a low-carbon economy. Such a policy would need to include
energy pricing reform and policies for promoting energy efficiency and
renewable energy generation in addition to addressing the issue of carbon
leakage. Below is a list of four critical energy policy issues related to achieving a
global reduction in carbon emissions and the potential for global warming
(Pezzey, Jotzo, & Quiggin, 2007):
Emission pricing: A globally efficient (i.e. cost-effective) policy requires
emissions cuts at a similar marginal cost in all countries, and on all sources of
emissions where control policies are practicable. By emissions pricing it is
meant that governments create fairly pervasive, fairly uniform price
incentive to reduce emissions. Governments do this either by setting an
overall emissions cap and allowing emissions permit trading within it (cap
and trade); or by taxing emissions or with some hybrid combination of
trading and taxation (Pezzey, Jotzo, & Quiggin, 2007).
Technology policy: Government supports that include: subsidies for private
R&D and direct spending by government R&D agencies (Pezzey, Jotzo, &
Quiggin, 2007).
Posted by Etree Project Consultants Pvt Ltd only for knowledge sharing purpose. Page 19
