sectoral economic costs and benefits of ghg mitigation - IPCC

Paul Cicio
Figure 1 Energy Consumed per Unit of Output Falling
120
100
80
Index (1970=100)
60
40
20
0
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998
Figure 2
Carbon Emissions per Unit of Output Falling
120
100
80
Index (1974=100)
60
40
20
0
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998
In addition to being energy-intensive, production of chemical products is dependent on energy
fuels and feedstocks. Certain chemical processes, for example electrolysis to separate chlorine
and sodium from salt water, require enormous amounts of electricity. Ethylene production, on the
other hand, requires huge amounts of steam heat to complete the reaction. In fact, just about
every chemical product requires some form of heat and/or pressure in its manufacture. In
addition, most organic chemical production uses fossil fuels as raw materials in addition to
sources of heat and power. Unfortunately, no other cost-effective source of hydrocarbons exists.
As a result of these huge energy requirements, energy costs represent a large cost to the industry
and there is every incentive to minimize them where feasible.
Since the 1970’s when the oil crises exposed the industry’s vulnerability to wild fluctuations in
oil prices, the chemical industry has made enormous strides in all areas of energy efficiency:
petroleum, natural gas, electricity, etc. Since 1970, total energy consumed per unit of output has
declined 35%. Energy consumed as fuel and power per unit of output has fallen by half since
1970. While carbon emissions have remained relatively stable over the past 25 years, carbon
emissions per unit of output have fallen 43% since 1974. While these reductions are impressive,
the represent relatively easy improvements in energy efficiency and carbon emission reductions.
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