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AIT Prepared for 11th AIM International Workshop, 19-21 February 2006, NIES, Tsukuba, Japan Activities on Assessment of Environmental Policies and Dissemination at AIT Ram M. Shrestha Asian Institute of Technology Pathumthani, Thailand 20 February, 2006

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Page 1: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Prepared for 11th AIM International Workshop, 19-21 February 2006, NIES, Tsukuba, Japan

Activities on Assessment of Environmental Policies and

Dissemination at AIT

Ram M. ShresthaAsian Institute of Technology

Pathumthani, Thailand

20 February, 2006

Page 2: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Multigas Emission Inventory in Thailand

Promotion of Biofuels Program in Thailand: Application of AIM/Enduse

Assessment of Energy, Economy and Environment in Thailand: Application of AIM/CGE

Dissemination: Workshop on Energy System Development and GHG: Analyses of Selected Options in Thailand

Presentation Outline

11th AIM International WorkshopTsukuba, Japan

Page 3: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Multigas Emission Inventory in Thailand

11th AIM International WorkshopTsukuba, Japan

Page 4: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Multigas Emission Inventory in Thailand

11th AIM International WorkshopTsukuba, Japan

Thailand submitted initial national communication on 13th November 2000

Study conducted according to guidelines based on revised IPCC Guidelines (1996).

Planning horizon: 2000-2035

Non-CO2 GHGs considered: CH4, N2O, NOx and CO

GHG emissions source and sink categories:Energy useFugitive emissionsIndustrial processesAgricultureWaste

Page 5: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT 11th AIM International WorkshopTsukuba, Japan

Global Warming Potential of GHGs

Changes in shares of GHG emissions (between 2000 and 2035):CO2: 58% to 82%CH4: 36% to 16%N2O: 5% to 2%

CO2 equivalent GHG:316 million ton (2000) to 1,176 million (2035) ~ 3.7 times increaseAAGR 3.8%

Among the Sources of GHG emissions, energy use is estimated to account for 57% of total GHG emissions in 2035 as compared to 54% in 2000.

2000 2015 2025 2035 Pollutant kilo ton % kilo ton % kilo ton % kilo ton %

CO2 183,583 58 354,529 68 593,470 76 959,821 82 CH4 5,487 36 7,094 28 7,990 21 9,168 16 N2O 55 5 63 4 69 3 75 2

CO2 equivalent GHG 315,858 523,054 782,613 1,175,656

Page 6: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT 11th AIM International WorkshopTsukuba, Japan

CO2 Emission from Fuel Combustion and Industrial Processes

0102030405060708090

100

2000 2005 2010 2015 2020 2025 2030 2035

Shar

e (%

)

Fuel combustion Industrial Processes

Changes in shares of CO2 emissions from 2000 to 2035:Fuel combustion: 88% to 66%Industrial processes: 12% to 34%

Page 7: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT 11th AIM International WorkshopTsukuba, Japan

Methane Emission during 2000-2035

AAGR during 2000-2035: 1.5%Changes in shares of methane emission by source during 2000 to 2035 (%):

Rice cultivation 71 to 65 Energy 8 to 14Waste 13 to 15 Livestock 7 to 5

Rice cultivation to account for more than two-thirds of methane emissions.Increasing share of energy use and waste in Methane emissions.

2000

Rice cultivation

71%

Energy8%

Waste13% Livestock

7%

Others1%

2035

Rice cultivation

65%

Others1%

Livestock5%

Waste15%

Energy14%

Page 8: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT 11th AIM International WorkshopTsukuba, Japan

Nitrous Oxide Emission during 2000-2035

AAGR during 2000-2035: 0.9%Changes in shares of N2O emission by source from 2000 to 2035 (%):

Agricultural soil 70 to 55Fuel combustion 9 to 15Manure management 19 to 28

Agricultural soil is the largest contributor to N2O emission (55 to 70%).The shares of fuel combustion and manure management are to increase in the future.

2000

Burning of agricultural

residues2%

Agricultural soils70%

Fuel combustion

9%Manure

management19%

2035

Manure management

28%

Fuel combustion

15%

Agricultural soils55%

Burning of agricultural

residues2%

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AIT

Promotion of Biofuels Program in Thailand: Application of AIM/Enduse

11th AIM International WorkshopTsukuba, Japan

Page 10: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Promotion of Bio-fuels in Transport sector and Their Impacts on Energy Systems and the Environment

Based on AIM/Enduse [Thailand]

Time period: 30 years (2000 to 2030)

2 Types of biofuel considered: Gasohol and Biodiesel

Biofuels are considered only in transport sector

Thai Government’s roadmap of gasohol and biodiesel development and promotion:

Gasohol roadmap:• Phase I: Replacement of MTBE (Methyl Tertiary Butyl Ether) by ethanol from 2006• Phase II: 10% gasohol in all types of gasoline by 2007

• Biodiesel roadmap:• Phase I: Introduction of biodiesel in targeted areas during 2006-2010• Phase II: Introduction of biodiesel nationwide from 2010

11th AIM International WorkshopTsukuba, Japan

Page 11: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Scenario 1: (S1) The Base Case –- No biofuels

Scenario 2: (S2) Government PlanBased on the government biofuel plan and resources availabilityLand limit for biodiesel production is 0.8 Million ha (5 Million Rais)

Scenario 3: (S3)High biofuel availability

Scenario 5: (S5) Subsidy for gasohol 95

Promotion of Bio-fuels (Scenarios considered)

11th AIM International WorkshopTsukuba, Japan

Page 12: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Promotion of Bio-fuels

CO2 emission reduction under S2 (government policy), during (2010-2030) compared to base case:

2010: 2.4%2020: 2.9%2030: 2.6%

11th AIM International WorkshopTsukuba, Japan

Diesel46.6%

Electricity0.3%

LPG11.1%

Natural gas16.0%

Gasoline26.0% Biodiesel

33.6%

Diesel17.9%

Electricity0.1%

LPG9.0%

Natural gas16.0%

Gasoline21.2%

Gasohol952.2%

Changes in fuel mix in transport sector

Base caseGovernment policy (S2)

Shares of diesel, gasoline and LPG in total energy use is estimated to decline.Shares of gasohol95 and biodiesel are estimated to reach about 2% and 34 % in 2030.

82

138

232

80

134

226

0

50

100

150

200

250

2010 2020 2030

CO

2 em

issi

on (m

illio

n to

ns) Basecase S2

2.4%

2.9%

2.6%

2030 2030

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AIT 11th AIM International WorkshopTsukuba, Japan

AIM/CGE Activities

Page 14: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Based on APEIS training attended by AIT team (Sunil Malla and Aunkung Lim in November 2005 at NIES)

2000 IO table of Thailand with 23 economic sectors

Time horizon: 30 years (2000 – 2030)

Four scenarios are analyzed:Global market (TA1)Dual track (TA2) : Reference scenarioSufficiency economy (TB1)Local stewardship (TB2)

AIM/CGE Model

11th AIM International WorkshopTsukuba, Japan

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AIT

AIM/CGE Model

GDP is expected to increase by more than 5 times(5.2 trillion Baht in 2000 to 26.3 trillion Baht in 2030)

CO2 emissions is expected to increase by more than 3 times(155 million tons in 2000 to 467 million tons in 2030)

Simulation results: Reference case (Dual track):

11th AIM International WorkshopTsukuba, Japan

Capital Laborincome income

(2000=1) (million tons)2000 3.8 1.3 0.2 5.2 6.5 2.0 1.0 1552010 6.4 2.3 0.2 8.9 13.8 2.2 1.6 2142015 8.2 3.3 0.1 11.6 19.1 2.3 1.9 2512020 10.7 4.6 -0.1 15.2 27.0 2.4 2.4 3052025 14.0 6.6 -0.7 19.9 38.2 2.5 3.0 3752030 18.5 9.3 -1.6 26.2 54.1 2.6 3.8 467

GDP Wage rate CO2 emission(trillion Baht)

Consumption Investment Net export

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AIT

In 2000:Coal: 23%, Natural gas: 23%Oil: 54%

By 2030:Coal: 10%, Natural gas: 44%Oil: 46%

Reference Scenario

35 25 23 25 28 34 4335 50 69

96126

165206

85 96109

124

146

173

216

0

100

200

300

400

500

2000 2005 2010 2015 2020 2025 2030

CO

2 em

issi

ons

(mill

ion

tons

)

coal gas oil

0

100

200

300

400

500

2000 2005 2010 2015 2020 2025 203

CO

2 em

issi

ons

by s

ecto

r(m

illio

n to

ns)

Agriculture Industry Commercial Transport Others

Fuel share in CO2 emission:

By 2030, industry and transport sectors combined contribute more than two-thirds of total CO2 emissions.

Over time, share of transport increases (from 25% in 2000 to 28% in 2030) and share of industry sector falls (from 58% in 2000 to 45% in 2030).

CO2 emission by sectors:

11th AIM International WorkshopTsukuba, Japan

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AIT

CO2 emissions intensity is expected to fall over time in the country. Highest: 0.71 (kg in 2000 US$ MER) under TA2 in 2030;Lowest: 0.86 (kg in 2000 US$ MER) under TB2 in 2030.

AIM/CGE Model

11th AIM International WorkshopTsukuba, Japan

0.7

0.8

0.9

1.0

1.1

1.2

2000 2005 2010 2015 2020 2025 2030

CO2

emis

sion

per

GD

P (k

g in

200

0 US

$ M

ER) TA1 TA2 TB1 TB2

Page 18: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT 11th AIM International WorkshopTsukuba, Japan

Dissemination Activities

Page 19: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Dissemination/Capacity BuildingWorkshop on Energy System Development and GHG Emissions: Analyses of Selected Options in Thailand

Held in June 23, 2005 at AIT29 participants representing universities, government organizations and private institutes

• Department of Alternative Energy Development and Efficiency (DEDE) • Pollution Control Department (PCD)• Office of the natural Resources and Environmental Policy (ONEP)• Thailand Institute of Scientific and Technological Research (TISTR)• Thailand Development Research Institute (TDRI)• Appropriate Technology Association (ATA• Universities (SIIT, Chulalongkorn, Kasetsart, AIT)

Objective of the workshop was to make policy makers and researchers in Thailand make aware of activities on environmental policy assessment based on AIM/Enduse & CGE models.

Poster exhibition and distribution of dissemination materials during Royal Thai Government (RTG) Joint Research Program Seminar, August 2005 at AIT

11th AIM International WorkshopTsukuba, Japan

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AIT

Implications of carbon tax and energy efficiency improvement on Thai Economy

National level energy and emission scenarios development for Thailand

Energy and environmental implications of CO2emissions reduction targets in Thailand

Promotion of bio-fuels and their impacts on energy systems and the environment in Thailand

Presentations during the workshop included:

Dissemination/Capacity Building

11th AIM International WorkshopTsukuba, Japan

Page 21: Activities on Assessment of Environmental Policies and ... · Scenario 3: (S3)High biofuel availability Scenario 5: (S5) Subsidy for gasohol 95 ... (TB1) Local stewardship (TB2) AIM/CGE

AIT

Dissemination/Capacity Building

Information of the workshop is available at:http://www.serd.ait.ac.th/ep/esdgge

11th AIM International WorkshopTsukuba, Japan

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AIT

Thank you

11th AIM International WorkshopTsukuba, Japan