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Global Climate Change Digest
A Guide to Information on Greenhouse Gases and Ozone Depletion
Published July 1988 through June 1999

FROM VOLUME 7, NUMBERS 11-12, NOVEMBER-DECEMBER 1994

PROFESSIONAL PUBLICATIONS... ENERGY: POLICY AND ECONOMICS

Item #d94nov36

The Electricity Journal, 7(9), Nov. 1994, contains a cluster of articles relating to the implications of impending strategic and regulatory changes in the electricity industry, which could lead to the separate handling of generation, transmission and distribution, with open competition in each sector. This could have implications for energy efficiency and energy conservation. The Electricity Journal, published ten times per year by Robert Owen Marritz (1501 Western Ave., S. 100, Seattle WA 98101; tel: 206-382-0195), costs $125 (colleges and public libraries), $275 (government agencies), $395 (others). Examples of articles in this issue are:

"Energy Efficiency Services: What Role in a Competitive Environment?" J. Newcomb (E-Source Inc., Boulder, Colo.), 34-45.

"Can Energy Markets Drive DSM?" D.A. Houston (Koch Industries Fellow, Univ. Kansas), 46-55.

"Reinventing the Energy Conservation Industry," R. Rouse (Conservation Conversions Inc., Massachusetts), 56-65.

"A Win/Win Approach to Commercial/Industrial DSM: Making DSM Work for All Utility Customers," H. Lachman (Energy Efficiency Inst., Colchester, Vt.), P. Cillo et al., 66-73.

Item #d94nov37

"The GATT Panel Decision on Automobile Taxes," S. Charnovitz, Intl. Environ. Rptr., pp. 921-922, Nov. 2, 1994.

In September, a dispute panel of the General Agreement on Tariffs and Trade ruled against the European Community that the U.S. gas guzzler tax on automobiles was consistent with GATT; however it also ruled that some provisions of the U.S. CAFE law violated international trade laws. This is the first complex environmental dispute to come before GATT, and if adopted will be a landmark case. Although some have cited this as evidence that GATT is not a danger to environmental laws, this portrayal as a major shift toward the environment is exaggerated. The most worrisome element is the truncation of GATT Article III to only one portion of a product's life cycle; in this instance GATT seems to be traveling in a different direction than the rest of the world. Before Article III is interpreted in this way, the matter should be carefully studied; the decision should not be adopted by the GATT Council.

Item #d94nov38

Two items from Energy, 19(11), Nov. 1994:

"Dynamics of Appliance Energy Efficiency in Sweden," J.N. Swisher (RisÀ Natl. Lab., POB 49, DK-4000 Roskilde, Den.), 1131-1141. Progressive performance standards could reduce energy consumption by 35% by 2010. The public procurement process to move the high-efficiency end of the market would accelerate the energy-saving potential and would be effective in combination with performance standards.

"Assessment of Various Scenarios for Utility-Based Cogeneration in Ontario," M.A. Rosen (Dept. Mech. Eng., Ryerson Polytech. Univ., Toronto ON M5B 2K3, Can.), 1143-1149. Six scenarios show that cogeneration can provide significant technical, economic and environmental benefits by reducing energy use and related emissions.

Item #d94nov39

Two items from ibid., 19(10), Oct. 1994:

"Organizational Determinants of Energy-Conservation Management," J. Selmer (Sch. Bus., Hong Kong Baptist Coll., 224 Waterloo Rd., Kowloon, Hong Kong), 1023-1030. Studied five organizations representing different archetypes and showed that each has distinct prerequisites and motivations to succeed in energy conservation management. Discusses the implications for government policy and managerial action.

"Interactive Efforts Between Utilities and Non-Utility Parties: Constraints and Possibilities," M.R. English (Energy, Environ. & Resour. Ctr., Univ. Tennessee, 327 S. Stadium Hall, Knoxville TN 37996), M. Schweitzer, J.A. Altman, 1051-1060. Examines how well these efforts are succeeding, describes conditions that promote or impede interactions, and discusses what can be expected from their use.

Item #d94nov40

Two items from World Resour. Rev., 6(3), Sep. 1994:

"The Role of Energy Forestry in Alternative Energy Planning, Waste Recycling and Agriculture in Sweden," L. Sennerby-Forsse (Swed. Univ. Agric. Sci., POB 7072, S-750 07 Uppsala, Swed.), L. Christersson, 395-405. Discusses commercial "energy plantations" that may reduce net CO2 emissions, and alleviate the waste problem, the low profitability of agriculture, and the requirement for energy.

"New Electric Technologies to Reduce Global Warming Impacts," H.A. Courtright (Electric Power Res. Inst., 3412 Hillview Ave., Palo Alto CA 10412), 406-415. The Electric Power Research Institute is developing technologies that decrease global warming impact by reducing kilowatt-hour usage and power plant emissions, and by replacing traditional fossil-fuel driven applications.

Item #d94nov41

"Renewable Energy: Economic and Environmental Issues," D. Pimentel (College Agric. & Life Sci., Cornell Univ., Ithaca NY 14853), G. Rodrigues et al., BioScience, 44(8), 536-547, Sep. 1994.

Analyzes the potential of various renewable or solar energy technologies in terms of their land requirements, environmental benefits and risks, economic costs, and advantages. Solar alternatives to fossil fuels have the potential to meet a large portion of future energy needs, provided that the U.S. is committed to their development and implementation and that energy conservation is practiced. The economy and national security will suffer if such a commitment is not made in the next decade or two. To ensure a reasonable standard of living in the future, there must be a fair balance between human population density and energy, land, water, and biological resources.

Item #d94nov42

"Implications for Energy and Climate-Change Policies of Using Purchasing-Power Parity-Based GDP," T.A. Siddiqi (Prog. Environ., East-West Ctr., Honolulu HI 96848), Energy, 19(9), 975-981, Sep. 1994.

The economic growth of industrialized countries in the 1970s and 1980s, with constant or reduced energy use, led to the view that there was no linear correlation between energy use and GNP. However, there is better correlation when GNP or GDP are calculated using purchasing-power-parity rather than market-exchange rates. This result may have major implications for future energy requirements of developing countries, and for policies that address climate change.

Item #d94nov43

"Energy Use and CO2 Emissions Reduction: Integrating Pricing and Regulatory Policies," R.B. Howarth (Environ. Stud. Prog., Univ. Calif., Santa Cruz CA 95064), M.A. Winslow, ibid., 19(8), 855-867, Aug. 1994.

Evaluates the impacts of carbon taxes using price-equilibrium models. If market failures impede the adoption of cost-effective carbon-abatement technologies, achieving emissions reductions at minimal social cost would require the joint implementation of pricing and regulatory instruments.

Item #d94nov44

"Renewable Energy Programmes in India--Some Recent Developments," C.S. Sinha (Ctr. Sci. Intl. Affairs, J.F.K. School of Govt., Harvard Univ., Cambridge MA 02138), Natural Resour. Forum, 18(3), 213-224, Aug. 1994.

The outlook for the role of renewable energy technologies in the energy supply mix for India is positive. Analyzes recent changes in implementing institutions, innovation in financing, and a shift from financial to fiscal incentives.

Item #d94nov45

Four items from The Energy J., 15(3), July 1994:

"Emission Costs, Consumer Bypass and Efficient Pricing of Electricity," C.-K. Woo (Energy & Environ. Econ., 353 Sacramento St., S. 1540, San Francisco CA 94111), B. Hobbs et al., 43-54. Derives the optimal tax on emissions and efficient prices for retail service for two customer classes to show that pricing proposals made in a recent rate case in California are inefficient and encourage over-consumption by residential customers.

"Incentive Effects of Environmental Adders in Electric Power Auctions," J.B. Bushnell (Energy Inst., Univ. California, 2539 Channing Way, Berkeley CA 94720), S.S. Oren, 55-74. Examines the options for incorporating adders into auctions for non-utility generation. If adders are used, regulators must use them explicitly in both operation and selection of generation resources.

"Integrated Resource Planning with Environmental Costs in Developing Countries," C.S. Fernando (Freeman Sch. Bus., Tulane Univ., New Orleans LA 70118), P.R. Kleindorfer, M. Munasinghe, 93-122. Reduction of the environmental degradation and capital costs of expanding electric power requires an integrated perspective in the planning phase, pricing policies that reflect the cost of providing power, and organizational structures that provide incentives for efficient operation.

"Who Pays Broad-Based Energy Taxes? Computing Lifetime and Regional Incidence," N. Bull (Board of Gov., Fed. Reserve System, Washington DC 20551), K.A. Hassett, G.E. Metcalf, 145-164. Measures the incidence of energy taxes using a lifetime framework to study both a BTU tax and a carbon tax, accounting for two key facts: (1) the importance of measuring the tax burden over a lifetime, not just in a given year; and (2) in addition to directly increasing the price of energy goods, energy taxes also indirectly increase the price of all other goods.

Item #d94nov46

"Is Natural Gas Really the Answer? Targeting Natural Gas in US Climate Change Mitigation Policy," J. Kessler (Energy Policy Branch, U.S. EPA, MC-2126, 401 M St. SW, Washington DC 20460), B. Schillo et al., Energy Policy, 22(7), 623-628, July 1994.

Lower natural gas prices appear to have little impact on greenhouse gas emission trends. However, they and overall lower fossil-fuel costs defer energy conservation efforts, stimulate more energy use, and displace cleaner, renewable sources of energy.

Item #d94nov47

"Nigeria's Household Energy Sector: Issues and Supply/Demand Frontiers," G.A. Oladosu (CERD, Obafemi Awolowo Univ., Ile-Ife, Nigeria), A.O. Adegbulugbe, ibid., 22(6), 538-549, June 1994.

Deforestation, Nigeria's major environmental threat, is related to fuelwood use in the residential energy sector. This sector is the largest contributor of CO2 emissions there, with a total of 67 million tons in 1989.

Item #d94nov48

"Influence of Energy-Supply Structure on Emission-Reduction Costs," O. Rentz,. . .M. Wietschel (IIP, Univ. Karlsruhe, Hertzstr. 16, D-76187 Karlsruhe, Ger.) et al., Energy, 19(6), 641-651, June 1994.

Analyzed eight countries for impacts from different energy scenarios. Established the emission reduction potentials of restructuring national energy systems and energy conservation measures, and quantified impacts on emission reduction costs.

Item #d94nov49

Three items from Energy Policy, 22(5), May 1994:

"Restraining Energy Demand: The Stick, the Carrot, or the Market?" F.P. Sioshansi (Electric Power Res. Inst., 3412 Hillview Ave., Palo Alto CA 10412), 378-392. Reviews the success and problems associated with demand-side management incentive mechanisms in the U.S., and provides policy options for other countries interested in learning the best way to promote efficient energy use.

"Deciding on Biomass in Hässelby," B. Olerup (Lund Inst. Technol., Lund Univ., Gerdagatan 13, S-223 62 Lund, Swed.), 415-426. Describes the decision making process at a Swedish municipal utility for replacing coal with a mixture of biomass pellets and low sulfur fuel oil.

Item #d94nov50

"Sustainable Energy Policies for the Brazilian Amazon," M. Redclift (Environ. Sect., Wye Coll., Univ. London, Wye, Kent TN25 5AH, UK), ibid., 427-431.

Development of the Amazon has been a concern because of potential carbon emissions and loss of biodiversity; less attention has been paid to its role as an energy source for Brazil. Opposition to large hydropower installations has attracted international concern, but alternative energy sources including biomass should also be considered. The Amazon could provide lessons of global significance regarding sustainable development.

Item #d94nov51

Two items from Energy Sources, 16(2), Apr.-June, 1994:

"Efficient Electricity in Stockholm," B. Olerup (Dept. Environ. Energy Sys. Studies, Lund Inst. Technol., Lund Univ., Gerdagaten 13, S-223 62, Lund, Swed.), 209-227. An energy efficiency program aimed at the consumer by a marketing department of Stockholm Energi did not succeed as well as hoped for several reasons. Stockholm Energi has now reoriented its efforts, and a desire to be businesslike has taken the place of electricity efficiency.

"Energy Efficiency or the Efficient Use of Energy Resources?" R.J. Sutherland (Argonne Natl. Lab., 955 N. L'Enfant Plaza SW, S. 6000, Washington DC 20024), 257-268. Distinguishes between these two concepts, which are different policy goals. Reconsideration of the goal of energy eficiency reveals that it may result in the misuse of other resources. Efficient use of energy resources would promote the efficient use of all resources.

Item #d94nov52

Two items from ibid., 16(1), Jan.-Mar. 1994:

"Energy Taxes--Some Critical Remarks," F. Wirl (Inst. Energy Econ., Tech. Univ. Vienna, A-1040 Vienna, Austria), 1-15. Draws attention to certain fallacies to which proponents of energy and environmental taxes seem to be prone. Suggests that making the polluter liable for all damages is in general inefficient.

"Effects of a Broad-Based Energy Tax on the United States Economy," N.D. Uri (Commodity Econ. Div., Econ. Res. Serv., USDA, Washington, D.C.), R. Boyd, 133-160. Looks at the economy in general, and the agricultural sectors in particular, assuming a per-million-Btu tax of 25.7Ù on natural gas, coal and nuclear power, and 59.9Ù on petroleum products. Analyzes the effects, on the producing sectors and on the level of tax revenue generated, of imposing the tax at the point of production or at the point of consumption.

Item #d94nov53

Four items from The Energy J., 15(2), Apr. 1994:

"Energy-Efficiency Investments and Public Policy," A.B. Jaffe (Dept. Econ., Harvard Univ., Cambridge MA 02138), R.N. Stavins, 43-66. Examines the factors determining the rate of diffusion of technologies, and uses simulations to explore how alternative policy instruments could hasten the diffusion.

"Estimating Consumer Energy Demand Using International Data: Theoretical and Policy Implications," D.S. Rothman (World Resour. Inst., 1709 New York Ave. NW, Washington DC 20006), J.H. Hong, T.D. Mount, 67-88. A model simulation, using a consistent set of data on prices and expenditures for 53 countries, shows that the demand for electricity is significantly more price- and income-elastic than the demand for primary energy.

"Residential Energy Demand and the Taxation of Housing," W.M. Gentry (Dept. Econ., POB 90097, Duke Univ., Durham NC 27708), 89-106. The favorable tax treatment of housing capital in the U.S., that currently lowers its cost by 23%, affects the demand for residential energy. Eliminating this tax subsidy would lower residential energy demand by 6.8%. The same reduction could be obtained through a 20% tax on residential energy.

"Tax Reform and Energy in the Philippines Economy: A General Equilibrium Computation," R.G. Boyd, K. Doroodian, P. Udomvaech (Dept. Econ., Ohio Univ., Haning Hall, Athens OH 45701), 135-156. Examines how energy tax cuts, offset with income tax increases, affect production, consumption, and total welfare. Energy tax cuts expand some sectors, but decrease output in other sectors. This policy would enhance growth and aggregate income, but from an equity standpoint is highly regressive.

Item #d94nov54

Two items from Energy Policy, 22(4), Apr. 1994:

"Reducing Australian Energy Sector Greenhouse Gas Emissions," B.P. Jones (Australian Bur. Agric. & Resour. Econ.--ABARE, GPO Box 1563, Canberra, ACT 2601, Australia), Z.-Y. Peng, B. Naughten, Energy Policy, 22(4), 270-286, Apr. 1994.

A detailed model analysis of the policy implications of reducing greenhouse gas emissions shows that the target adopted by the Australian government can be met, but only with substantial change in the energy sector, at a substantial cost. These changes, especially in electricity generation and the use of renewable resources, have important macroeconomic implications.

"Energy Efficiency Trends in Australia," B. Wilson (Australian Bur. Agric. & Resour. Econ., GPO Box 1563, Canberra ACT 2601, Australia), L.H. Trieu, B. Bowen, 287-295. Analysis of energy efficiency trends for 1973-1991 indicates that energy efficiency gains may have previously been underestimated.

Item #d94nov55

"The Relation Between Marginal Product and Price in US Energy Markets: Implications for Climate Change Policy," R.K. Kaufmann (Ctr. Energy & Environ. Studies, Boston Univ., 675 Commonwealth Ave., Boston MA 02215), Energy Econ., 16(2), 145-158, Apr. 1994.

Tests the axioms that describe the relationship between the marginal product and price of factor inputs. Rational agents manipulate their use of coal, oil, natural gas and electricity so that the marginal product adjusts to changes in relative prices. Discusses the implications for abating CO2 emissions by interfuel substitution.

Item #d94nov56

"Industrial Energy Efficiency and Global Warming," A.J. Streb (Energy Efficiency & Renewable Energy, U.S. DOE, Washington, D.C.), World Resour. Rev., 6(2), 234-247, June 1994.

Looks at industrial emissions under alternative energy scenarios, discusses technologies to improve energy efficiency and reduce CO2 emissions, and outlines initiatives that would stimulate adoption of energy efficient and pollution preventing technologies.

Item #d94nov57

"Towards Rational Use of Energy and Increased Role of Renewable Energy in the Arab Countries," F. Elkarmi (Higher Council Sci. & Technol., Amman, Jordan), OPEC Bull., 25(3), 7-10, Mar. 1994.

Discusses the linkages of energy with development, the environment and technology endogenization. Stresses the need for cooperation between the developed and developing nations, and recommends actions for the Arab countries.

Specialized Papers

Item #d94nov58

Two items from Energy, 19(11), Nov. 1994:

"A Research Agenda for Demand-Side Management Impact Measurement," E.L. Vine (Lawrence Berkeley Lab., Bldg. 90-4000, Berkeley CA 94720), H. Misuriello, M.E. Hopkins, 1103-1111.

"Exergetic Assessment of the Coolants HCFC123, HFC134a, CFC11, and CFC12," S.A.M. Said (Dept. Mech. Eng., King Fahd Univ., Dhahran 31261, Saudi Arabia), B. Ismail, 1181-1186.

Item #d94nov59

Commentary on U.S. energy policy folly, Nature, 371(6996), 372, Sep. 29, 1994.

Item #d94nov60

"Biomass Resources as Energy in Nepal," S. Pokharel (Sys. Design Eng., Univ. Waterloo, Waterloo ON N2L 3G1, Can.), M. Chandrashekar, Natural Resour. Forum, 18(3), 225-230, Aug. 1994.

Item #d94nov61

"Opportunities for Environmental Protection Through Privatization of the Electric Power Sector in Developing Countries," T.N. Russo, M.J. Narins (Energy & Environ. Strategies Inc., 2128 Kings Garden Way, Falls Church VA 22043), Environ. Impact Assess. Rev., 14(4), 233-243, July 1994.

Item #d94nov62

"Most Value Planning: Estimating the Net Benefits of Electric Utility Resource Plans," B.F. Hobbs (Dept. Sys., Control & Industrial Eng., 610 Crawford Hall, Case Western Reserve Univ., Cleveland OH 44106), A.F. Wilson, Energy Sources, 16(3), 451-477, July-Sep. 1994.

Item #d94nov63

"Emerging Environmental Markets: Improving the Competitiveness of Natural Gas," J.M. Chermak (Defense Resour. Mgmt. Inst., Code 64CH, Naval Postgrad. Sch., Monterey CA 93943), The Energy J., 15(3), 75-92, July 1994.

Item #d94nov64

"Advanced Monitoring Technologies for the Evaluation of Demand-Side Management Programs," A.T. de Almeida, E.L. Vine (Calif. Inst. Energy Efficiency, Berkeley CA 94720), Energy, 19(6), 661-678, June 1994.

Item #d94nov65

"The World Coal Trade: A Commentary," G. Smith (Dept. Econ., Univ. New England, Australia), Energy Policy, 22(6), 443-446, June 1994.

Item #d94nov66

"Emission Trading with Shares and Coupons: A Laboratory Experiment," R.A. Muller, S. Mestelman (Dept. Econ., McMaster Univ., Hamilton ON L8S 4M4, Can.), The Energy J., 15(2), 185-212, Apr. 1994.

Item #d94nov67

Two items from Energy Econ., 16(2), Apr. 1994:

"Quasi-Experimental Taxation Elasticities of US Gasoline Demand," R.K. Goel (Dept. Econ., Illinois State Univ., Normal IL 61790), 133-137.

"An Empirical Analysis of Gasoline Demand [Elasticity] in Denmark Using Cointegration Techniques," J. Bentzen (Dept. Appl. Econ., Aarhus Sch. Business, Fuglesangs Allé 20, DK-8210 Aarhus V, Denmark), 139-143.

Item #d94nov68

"Energy and Environment Scenarios for Senegal," M. Lazarus (Stockholm Environ. Inst., c/o Tellus Inst., 11 Arlington St., Boston MA 02116), S. Diallo, Y. Sokona, Natural Resour. Forum, 18(1), 31-47, Feb. 1994.