global and regional emissions and mitigation policies (with application of erb model for india)

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Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India) P.R. Shukla

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Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India). P.R. Shukla. Top Down models. Energy Economy linkages Partial Equilibrium in energy markets through price adjustments Endogenous determination of prices Feedback of prices on GDP - PowerPoint PPT Presentation

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Page 1: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Global and Regional Emissions and Mitigation Policies

(with Application of ERB model for India)

P.R. Shukla

Page 2: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Top Down models

Energy Economy linkages Partial Equilibrium in energy markets through price

adjustmentsEndogenous determination of prices

Feedback of prices on GDP Demand endogenously determined

Supply of energy, demographic parameters exogenously specified

Page 3: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

ERB Model : Application for India

Disaggregation by fuel typeConventional oil, conventional gas, coal, nuclear power,

hydroelectric power, solar electric power Global scale and regional detail

Nine Regions - US, OECD West, Japan-Australia-New Zealand, EE/FSU, Middle East, China and other South Asian countries, Latin America, Africa, and India

Long-term applicability : Terminal year 2095 Four modules

Supply, Demand, Energy balance, GHG emissions

Page 4: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Overview: ERB

RegionalLabour Forces

RegionalLabour

Productivities

Regional GNP

TechnicalChange

Regional taxes and

tariffs

Regionalresource

constraints

Technology and Cost

Char.

RegionalEnergy

Demands

RegionalPrices

WorldPrices

RegionalEnergySupplies

CO2Emissions

RegionalPopulation

GlobalSupplies

andDemands

Page 5: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Supply Supply categories

Resource constrained exhaustible conventional oil and gasproduction rates follow logistic paths

Resource constrained renewable hydro production rates follow logistic paths

Backstop unconventional oil and gas, coal, solar and nuclearinfinitely elastic supply schedule

Supply by grades

Page 6: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Demand

Demand depends on population, GNP, and prices Regional prices of oil, gas and coal determined from

world prices, transportation cost and taxes or subsidies Regional prices of secondary fuels from the price of

six primary energy fuels Cost and supply of hydro determined exogenously Market share of five fuels determined by logit

framework

Page 7: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Demand

Energy service prices for Residential/Commercial, Transport and Industry sectors

Sectoral energy service demand is determined using income and price elasticities

Fuel shares, fuel rates, and technological improvement determine fuel demand in end-use sectors

Fossil fuel demand for primary energy is sum of demand from end-use sectors, electric utilities and synfuel conversion from coal.

Page 8: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Energy balances Markets for nuclear, solar and hydro are cleared

as identities Energy market for oil, gas and coal are cleared

through price adjustments in an equilibrium framework

Excess demand in each of the markets as function of prices

Price elasticities obtained by numerical procedure and used to revise the prices for market clearance

Page 9: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Greenhouse Gas Emissions

Carbon emissions determined by applying carbon coefficients

Zero carbon release coefficients for nuclear, solar and conservation

Page 10: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Key parameters in Reference Case

Population Annual growth rate for India: 1.1 % (1990-2050)

Labour productivity Annual growth rate for India: 4 % (1990-2050)

Rate of exogenous end-use energy efficiency improvement Annual growth rate for India: 2 % (1990-2050)

Fossil fuel resource base Non-greenhouse environmental costs of fuels

Page 11: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Assumptions : Non-intervention scenarios

Scenario Population EconomicGrowth

Energy Supplies

IS92a World Bank (1991)11.3 billion by 2100

1990-2025: 2.9%1990-2100: 2.3%

12000 EJ Conventional Oil,13000 EJ Natural Gas.Solar cost fall to $0.075/kWh.199 EJ/yr of biofuels availableat $70/barrel.

IS92c UN Medium-LowCase: 6.4 billion by 2100

1990-2025: 2.0%1990-2100: 1.2%

8000 EJ Conventional Oil,7300 EJ Natural Gas. Nuclearcost decline by 0.4% annually.

IS92e Same as ‘a’ 1990-2025: 3.5%1990-2100: 3.0%

18400 EJ Conventional Oil,Gas same as ‘a’.Phase out Nuclear by 2075.

Source: Climate Change 1994, IPCC

Page 12: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Intervention scenarios

Advance technologies Hydrogen fuel cells as alternative power source Low cost biomass source with 20 percent of biomass

available at $1.40 per GJ and 80 percent at $2.40 per GJ by 2020

Exogenous global end-use energy intensity improvement rate reaches 2 percent per year by 2050

Carbon Tax $100 tax per tonne of carbon content in the fuels imposed

in each region Stabilisation of emissions

Global carbon emissions restricted to 7850 TgC (550 ppmv) in the terminal year

Page 13: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

0

50

100

150

200

250

1990 2005 2020 2035 2050 2065 2080 2095

Year

Tri

llion

Dol

lars

US OECD West JANZ EE/FSU

ACENP MIDEAST AFR LA INDIA

0

50

100

150

200

250

1990 2005 2020 2035 2050 2065 2080 2095

Year

Tri

llion

Dol

lars

US OECD West JANZ EE/FSU

ACENP MIDEAST AFR LA INDIA

Regional GDP Reference Case

Page 14: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

0

5

10

15

20

25

BtC

1990 2005 2020 2035 2050 2065 2080 2095

US OECD WestJANZ EE/FSUACENP MIDEASTAFR LAINDIA

Region 1990 2095US 23 12OECD West 17 7JANZ 6 3AFR 3 12EE/FSU 27 12LA 4 7MIDEAST 3 4ACENP 15 35India 3 10

Global Carbon emissions: Reference Case

Page 15: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

1370 EJ 123 EJ

Global Primary Energy Consumption: Reference Case

US OECD West JANZ EE/FSU ACENP MIDEAST AFR LA INDIA

0

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 20950

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 2095

US OECD West JANZ EE/FSU ACENP MIDEAST AFR LA INDIA

0

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 20950

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 2095

US OECD West JANZ EE/FSU ACENP MIDEAST AFR LA INDIA

0

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 20950

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 2095

US OECD West JANZ EE/FSU ACENP MIDEAST AFR LA INDIA

0

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 20950

200

400

600

800

1000

1200

1400

EJ

1990 2005 2020 2035 2050 2065 2080 2095

Page 16: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Global Primary Energy Use by Fuel Type: Reference Case

0

400

800

1200

1600

1990 2005 2020 2035 2050 2065 2080 2095Year

Exa

joul

es

OIL GAS COAL BIO HYDRO SOLAR NUCLR

0

400

800

1200

1600

1990 2005 2020 2035 2050 2065 2080 2095Year

Exa

joul

es

OIL GAS COAL BIO HYDRO SOLAR NUCLR

Page 17: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Price of traded fuels - IS92a

02468

101214161820

1990 2005 2020 2035 2050 2065 2080 2095Year

1985

US$

/GJ

OIL GAS COAL

02468

101214161820

1990 2005 2020 2035 2050 2065 2080 2095Year

1985

US$

/GJ

OIL GAS COAL

Page 18: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Energy Intensity IS92a

Page 19: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Global Primary Energy Consumption: Tax Cases

0

200

400

600

800

1000

1200

1400

1600

1990 2005 2020 2035 2050 2065 2080 2095

EJ

No tax $10 Tax $100 Tax $150 Tax

0

200

400

600

800

1000

1200

1400

1600

1990 2005 2020 2035 2050 2065 2080 2095

EJ

No tax $10 Tax $100 Tax $150 Tax

Page 20: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Primary Energy Consumption in India : Tax Cases

0

20

40

60

80

100

120

140

1990 2005 2020 2035 2050 2065 2080 2095Year

Exa

joul

es

No Tax 10$ Tax 100$ Tax 150$ Tax

Page 21: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Global Carbon Emissions Tax Cases

0

5000

10000

15000

20000

25000

1990 2005 2020 2035 2050 2065 2080 2095Year

Ter

agra

m C

arbo

n

No Tax 10$ Tax 100$ Tax 150$ Tax

Page 22: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

0

500

1000

1500

2000

2500

3000

1990 2005 2020 2035 2050 2065 2080 2095Year

Ter

agra

m C

arbo

n

No Tax 10$ Tax 100$ Tax 150$ Tax

Carbon Emissions in India: Tax Cases

Page 23: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

ERB Tax Cases - Global v/s India

Global IndiaTax Level Carbon Energy Carbon Energy mitigation (%) reduction (%) mitigation (%) reduction (%)$10 5 2 4 2$25 12 5 10 4$50 24 10 19 7$100 40 19 30 12$150 49 26 35 20

Cumulative - 1990 to 2095

Page 24: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Advance Technology

0

50

100

150

200

250

2005 2035 2065 2095

Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

200

250

2005 2035 2065 2095

Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

200

250

2005 2035 2065 2095

Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

200

250

2005 2035 2065 2095

Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

Page 25: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

$100 Tax

0

50

100

150

2005 2035 2065 2095

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

Page 26: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Stabilisation

0

50

100

150

2005 2035 2065 2095Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

0

50

100

150

2005 2035 2065 2095Year

Exa

joul

es

Oil Gas Coal Bio Hydro Solar Nuclear

Page 27: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Carbon Emissions

0500

1000150020002500300035004000

2005 2035 2065 2095

Year

Ter

agra

msC

arbo

n

IS92c IS92e TECH TAX STAB

0500

1000150020002500300035004000

2005 2035 2065 2095

Year

Ter

agra

msC

arbo

n

IS92c IS92e TECH TAX STAB

Page 28: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

Methane Emissions

0

5

10

15

20

2005 2035 2065 2095

Year

Mill

ion

tonn

es

IS92c IS92e TECH TAX STAB

0

5

10

15

20

2005 2035 2065 2095

Year

Mill

ion

tonn

es

IS92c IS92e TECH TAX STAB

Page 29: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

N2O Emissions

0

50

100

150

200

2005 2035 2065 2095

Year

Thou

sand

tonn

es

IS92c IS92e TECH TAX STAB

0

50

100

150

200

2005 2035 2065 2095

Year

Thou

sand

tonn

es

IS92c IS92e TECH TAX STAB

Page 30: Global and Regional Emissions and Mitigation Policies (with Application of ERB model for India)

0

500

1000

1500

2000

2500

3000

1990 2005 2020 2035 2050 2065 2080 2095

Year

Exa

joul

es

IS92a IS92c IS92e Adv.Tech $100 Tax 550 ppm

0

500

1000

1500

2000

2500

3000

1990 2005 2020 2035 2050 2065 2080 2095

Year

Exa

joul

es

IS92a IS92c IS92e Adv.Tech $100 Tax 550 ppm

Global Primary Energy Use - Scenarios