Energy Systems and Technologies for the Coming Century ...

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On the effectiveness of standards vs taxes forreducing CO 2 emissions in passenger cartransport EuropeAmela AJANOVIC, Reinhard HAASEnergy Economics Group, Vienna University of Technology, AustriaE-mail: ajanovic@eeg.tuwien.ac.atAbstractThe current problems arising from motorized individual transport lead to an urgent needfor implementing efficient policy measures. To get a reliable appraisal of the effects ofdifferent types of policies it is very important to know the impact of different parameterslike prices and fuel intensities. Of special relevance in this context is how consumerbehaviour and the rebound affect especially technical measures like standards for fuelintensity.The core objective of this paper is to analyse the impact of taxes and fuel intensitystandards on overall energy demand for car passenger transport in fifteen EU countries.The method of approach is based on econometric analysis of EU-15 countries over theperiod 1980 to 2007. We analyses energy consumption (e.g. litre of gasoline and diesel)as well as service demand (vehicle km driven). The effects of irreversible efficiencyimprovements are considered by means of using fuel intensities explicitly in theeconometric analyses.The major results of this investigation are: The service price elasticity is about -0.3 forthe aggregate of the investigated countries. The effect of energy efficiency improvementsis about 0.7. This is a very nice result indicating that: (i) price increases e.g. due to taxes(of 1%) lead to energy demand reductions of 0.3% in the sort run; (ii) pure efficiencyincreases (of 1%), e.g. by standards trigger savings of 0.7% (either due to standards ordue to lasting price increases).The major conclusion for energy policy makers is that the most effective set of measureis to introduce a combined system of taxes (to reduce CO 2 emissions due to less driving)and technical standards (to reduce CO 2 emissions due to lower fuel intensities).1 IntroductionThe current problems arising from motorized individual transport lead to an urgent needfor implementing efficient policy measures. To get a reliable appraisal of the effects ofdifferent types of policies it is very important to know the impact of different parameterslike prices and fuel intensities. Of special relevance in this context is how consumerbehaviour and the rebound affect especially technical measures like standards for fuelintensity.One of the most heavily discussed policy issues for passenger car transport is what ismore effective and more acceptable by people especially car drivers: taxes or standards.The EU currently puts all stacks on standards, see Section 2.In this paper we analyse the impact of taxes and fuel intensity standards on overallenergy demand for car passenger transport in EU-15 and how a tax vs standard works.We pay special attention to the interactions between price and efficiency changes andinvestigate the crucial role of service price elasticity.Risø International Energy Conference 2011 Proceedings Page 310
Finally, we try to identify a best practice policy for EU-15 which combines (national)taxes and (EU-wide) standards.How does a tax work in comparison to a standard?PsPs τTaxη 0Ps η ΔEΔE ηη 1E 0StandardEFigure 1. How a tax vs a standard worksFigure 1 depicts the principle of changes in efficiency, energy consumption and serviceprice. For a tax the reduction in energy consumption ΔE results from higher service pricePs τ remaining on the same curve η 0 . When a standard is implemented we switch from η 0to η 1 leading to a reduction ΔE of energy consumption. Yet, due to a lower service pricePs η this saving effect is lower than the theoretical effect which is ΔE η .100%70%Rebound100%Saving effect of standards30%Saving effect of tax-0.3 -1.0Price elasticityFigure 2. Effect of a tax vs standard depending on service price elasticityFigure 2 depicts the effect of a tax vs standard depending on service price elasticity. Asshown, if a tax in the magnitude of 1% is introduced and the price elasticity is e.g. (-0.3)then the energy saving effect is 0.3%. If standard in the magnitude of 1% is introducedand the price elasticity is e.g. (-0.3) then the energy saving effect is 0.7% and therebound effect due to more km driven is 0.3%.2 EU policies for standards and nation fuel taxpoliciesSince road transport contributes about one-fifth of the EU's total emissions of carbondioxide (CO 2 ), which are continuously increasing, the European Commission hasdesigned a comprehensive strategy for reduction of average CO 2 emissions from newcars to 120 grams per km by 2012 - a reduction of around 25% from 2006 levels. Thisstrategy was adopted in 2007. However, already in 2010 can be noticed, that the goal ofRisø International Energy Conference 2011 Proceedings Page 311
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Energy Systems and Technologies for
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ContentsSessions overview 1Programm
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sessions overview08:00-09:00Coffee
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11:00 - 12:30 session 6A - Bioenerg
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ContactSustainable Energy, Technica
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Penetration of new energy technolog
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how decisions are made and by whom
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(9) is the logaritimic expansion of
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(16)we may finally write Eq(14) in
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Table 1: Fast track cases for new r
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Peterka V. Macrodynamics of technol
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Growth in clean and reliable energy
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Conclusion - an ambitious vision an
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"Spurring investments in renewable
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Integrating climate change adaptati
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transport, and finance. Energy prov
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northern South America, the Caribbe
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Table 1: Energy system adaptation s
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More generally, a number of no- or
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6 ReferencesADB, 2005. Climate proo
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Sailor, D.J., Smith, M., Hart, M.,
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Factors affecting stakeholder perce
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Another study conducted in Japan wa
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4 The effect of information on stak
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Furthermore, communication to stake
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Shackley S, McLachlan C, Gough C (2
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Figure 1: Potential CO 2 storage si
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The Upper Jurassic - Lower Cretaceo
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The majority of the individual stru
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Development. Project no. ENK6-CT-19
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Section 5 summarises the key issue
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Table 1. Efficiencies for new large
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In addition, district heating syste
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6.4 Model results from EFDA-TIMESIn
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Maisonnier, D., et al. (2007), Powe
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1Efficiency and effectiveness of pr
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3Stromerzeugung [TWh/a]250200150100
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54 Country-specific Lessons learned
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7100%90%80%quota fullfilment (%)70%
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[5] Haas R., et al: Efficiency and
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The development and diffusion of re
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a. Offshore wind in DenmarkDenmark
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applicants are invited to submit a
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nies that provide upstream and down
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for both technology users and produ
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Trade Disputes over Renewable Energ
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treatment to imported renewable ene
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In Canada, the federal government i
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grid access, subsidies and land off
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In 2010, China’s total wind insta
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Source: Renewables 2010 Global Stat
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Source: REN 21, Renewables 2010 Glo
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Source: adapted from REN21, 2010It
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their precise scope and nature diff
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60 daysBy 2 nd DSBmeetingConsultati
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discriminatory manner on domestic a
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the European Union, the North Ameri
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ended. China lost this case because
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As most countries in the world are
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Session 3A - Energy SystemsRisø In
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1 IntroductionWith the introduction
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occur. This is an undesirably burea
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This curve could be used as a new t
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ut for the total consumption, and i
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This gives the LBR an opportunity t
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concludes that the subsurface conta
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to constrain the evaluation. In add
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Fig. 2 SW-NE trending seismic profi
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Fig. 5. Petrophysical evaluation of
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ConclusionsThe Danish subsurface co
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Performance of Space Heating in aMo
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[5],[10],[11],[16],[18],[20],[26].
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2/3 Sun1 Coal1/3 ElPower plantHP1 H
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25002000Surplus(min(wind,prod-cons)
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160CO 2 emission per unit heat prod
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The calculations have been based on
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Session 3B - smart gridsRisø Inter
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2 Myopic Investments2.1 The Balmore
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Moreover, this model is formulated
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Reducing Electricity Demand Peaks b
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3 Event Driven Scheduling Algorithm
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5 Mapping Teletraffic Theory to Ene
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6.2 Results and Performance Metrics
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Energy Efficient Refrigeration and
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Virtual Power PlantAggregatorSuperm
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C p,rC p,fT rT fW cφ sT a(UA) raHe
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Total PowerP.G. #1P.G. #2C.R. #1201
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the availability payment.Simulation
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The constraint in Eq. (16) has the
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The FlexControl concept - a vision,
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can react on requests for power reg
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3 ControlThe concept is based solel
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one hour to the next - correspondin
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4 ProtectionThe protection of the p
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Session 4 - Efficiency Improvements
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the product portfolio point of view
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Figure 4: Principle flow sheet of t
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process information needed are seld
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AIRFINE®(Reference)MEROS®Ca(OH)2M
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4 Conclusion & DiscussionThe Eco-Ca
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1 Energy policy and EU directivesTh
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iomass CHP, heat pumps, electric bo
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Fig. 1: How to supply a growing hea
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Session 5A - Wind Energy IRisø Int
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The average cumulative growth rate
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turbines is expected to create a st
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O&MGridWindturbineSubstructureFigur
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Another idea is to harvest energy f
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9. Shimon Awerbuch, Determining the
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engaged in wind energy assessment,
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treated in such a way to make them
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Figure 5: Map showing the estimated
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Figure 9: The annual mean power den
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mix is required. For example diurna
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Session 5B - Wind Energy IIRisø In
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TABLE ISOME OF THE WIND TURBINE MAN
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China, has prompted all parties, in
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to the high shaft speed. Furthermor
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Superconductors must be kept cold b
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an annual increase in demand of 6%,
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Improved High Temperature Supercond
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our study to a single set of deposi
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3.2 Yttrium-enriched YBCO thin film
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Fig. 5. AC-susceptibility dependenc
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The j C (B) dependence at 50 K for
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Session 6A - Bioenergy IRisø Inter
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The European politicians are faced
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The fast growing demand for biomass
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Figure 2: Avedøre Power Plant in C
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Figure 5: Concept for a sustainable
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The role of biomass and CCS in Chin
Page 264 and 265: 2.2.1 CCS Potential for ChinaCCS is
Page 266 and 267: 80%70%60%China's share ofglobal CO
Page 268 and 269: In general, if the CCS technology d
Page 270 and 271: with high implementation of CCS Chi
Page 272 and 273: The European Biofuels Policy: from
Page 274 and 275: aimed to promote agriculture-based
Page 276 and 277: (EC, 2009b), and internationally vi
Page 278 and 279: Session 6B - Bio Energy IIRisø Int
Page 280 and 281: The commercial scale production of
Page 282 and 283: the production process parameters,
Page 284 and 285: NutrientWaterAlgal cultureproductio
Page 286 and 287: Schenk, P.M., Thomas-Hall, S.R., St
Page 288 and 289: Liquid biofuels from blue biomassZs
Page 290 and 291: Even though final ethanol yields we
Page 292 and 293: Integrated Gasification SOFC Plant
Page 294 and 295: 2.1 Modelling of SOFCThe SOFC model
Page 296 and 297: where g 0 , R an T are the specific
Page 298 and 299: hand side y-axis corresponds to eff
Page 300 and 301: The moister content for these three
Page 302 and 303: Use of Methanation for Optimization
Page 304 and 305: power production from utilizing the
Page 306 and 307: 2.1 Model DescriptionThe developed
Page 308 and 309: Figure 3: Flow sheet of methanation
Page 310 and 311: efficiency and turbine inlet temper
Page 312 and 313: [14] DNA - A Thermal Energy System
Page 316 and 317: educing new car emissions to 120 g
Page 318 and 319: In addition energy consumption E an
Page 320 and 321: coefficient γ for the impact of fu
Page 322 and 323: 400200Change in energy (PJ)01980 19
Page 324 and 325: Figure 9 depict scenarios for the f
Page 326 and 327: What are customers willing to pay f
Page 328 and 329: Randomly, continuous up to ±50%Acc
Page 330 and 331: The likelihood for the model is giv
Page 332 and 333: eally means that this factor and no
Page 334 and 335: Table 5-1 Parameter estimates from
Page 336 and 337: Table 6-2 Willingness to pay for 10
Page 338 and 339: Session 12 - Energy for Developing
Page 340 and 341: Risø International Energy Conferen
Page 350 and 351: existing renewable energy technolog
Page 352 and 353: useful energyend energysecondary en
Page 354 and 355: parts or the means of enforcing war
Page 356 and 357: The development of micro-hydro proj
Page 358 and 359: Table 1. Electric power generation
Page 360 and 361: 5 ReferencesBajgain, S., Shakya, I.
Page 362 and 363: IntroductionElectricity has become
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of 2008, 43.6% of the total populat
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Hilmand provinces have comparativel
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….. eq. 5LCOE is the net present
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case of Nepal, it is 5% (Trading ec
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ing down the cost of solar PV modul
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3.3 Serving the rural areas with na
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The levelized costs of electricity
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Figure 4. Variation in LCOE with si
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The analysis reveals that fuel cost
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In case of DG, we have looked with
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Gross, R., Blyth, W., Heptonstall,
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Mode of Transport to Work, Car Owne
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power parity (PPP) basis, GDP per c
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83,385 to 109,108 while the number
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other purposes so that reduced fare
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emissions studies is that they were
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where I (·) is the indicator funct
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increases, individuals acquire more
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while that of other means of transp
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into CO 2 . For all oil and oil pro
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impact. In general, income is found
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7 ReferenceAlperovich, G., Deutsch,
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Table 1: Definitions of Variables a
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Session 13 - Energy StorageRisø In
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2 Storage demand and resulting stor
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compressed air storages, demand sit
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Fig. 3: Options for underground sto
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3.5 Geological potential in EuropeF
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Sensitivity on Battery Prices and C
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3.1 Base caseA northern European en
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4 ResultsThe model is run on a comp
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Furthermore, a slight decrease in t
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Night time charging increases with
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Lithuanian Energy Institute, PSE In
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atteries, Compressed Air Energy Sto
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negative net load, can be expected
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25%Pct. of the year20%15%10%5%0.5-0
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800006000040000MWh200000Netload-200
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[4] B. V. Mathiesen and H. Lund, "C
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Compressed Air Energy Storage in Of
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compressed air caverns, corrosion-r
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Figure 3: Distribution of salt depo
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Figure 6: EWEA's 20 year Offshore N
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spinning reserves can be provided b
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7 Discussion and conclusionsThis pa
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Risø DTU is the National Laborator
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