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Global Climate Change Digest
A Guide to Information on Greenhouse Gases and Ozone Depletion
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FROM VOLUME 10, NUMBER 6, JUNE 1997

REPORTS...
ENERGY POLICY

Item #d97jun44

International Energy Agency Statement on the Energy Dimension of Climate Change, 23 pp., May 1997 (IEA).

Summarizes the topic for all participants in the U.N. Framework Convention on Climate Change as preparation for the Third Conference of Parties (Dec. 1997). Describes the global context and trends, and insights on key parameters to reduce greenhouse emissions in a cost-effective manner. Does not make specific recommendations, in contrast to the following European Union document with a similar name.

Item #d97jun45

The Energy Dimension of Climate Change, European Commission, 1997. Contact Costas Verros; tel: 32 2 2 296 5680.

Intended to stimulate debate before the next conference of parties to the climate convention (Kyoto, Dec. 1997). A business-as-usual projection shows that the European Union's CO₂ emissions are expected to grow by 8% from 1990 levels by 2010. Meeting the EU's target of reducing greenhouse gas emissions by 15% by 2010 could be extremely difficult and costly. To do so, policies and measures will have to be ambitious and could lead to a reorientation of society's objectives; radical policy changes may be needed. (See Global Environ. Change Rep., p. 4, May 23, 1997.)

Item #d97jun46

IEA Policy Reviews. Each year, the International Energy Agency reviews changes in policy, market developments, and energy sector trends of member countries, some in detail. The two 1997 reviews that follow commend Australia and New Zealand for their market-oriented energy policies, which could serve as a model for regulatory reform in other IEA countries. For copies contact IEA or OECD.

Energy Policies of IEA Countries-Australia-1997 Review, 145 pp., Mar. 1997, $44/FF225/DM66.

Energy Policies of IEA Countries-New Zealand-1997 Review, 109 pp., May 1997, $32/FF165/DM48.

Energy Policies of IEA Countries-1996 Review (Compendium), 353 pp., Oct. 1996, $75/FF380/DM110. This report summarizes separate, detailed reviews conducted in 1996 for Canada, France, Portugal, the Netherlands, Spain and Sweden. (Separate volumes present the full reviews for those countries.) This report also includes short annual reviews for the other 17 member countries, and discusses topics, including climate change, that are common to all IEA countries.

The Role of IEA Governments in Energy, 358 pp., June 1996, $94/FF475/DM138. This latest in a series of surveys finds that governments are relying more on market forces to achieve energy policy goals, but the role of government in setting market rules is becoming more important, for both long- and short-term policy.

Item #d97jun47

U.S. Energy 1997-Energy and a Changing World. The 10th Annual Assessment of United States Energy Policy, 16 pp., May 1997 (USEA). Also available is this organization's 1995 Annual Report: Our Nation's Energy Partnership Program, 9 pp., plus appendices, 1996.

Presents and discusses trends in all types of major energy supplies, as well as in renewable energy and energy efficiency, and makes several recommendations. The largest environmental issue of concern to the energy industry is the possibility of climate change through greenhouse gas emissions. Recommends pursuing rational policies that make economic sense while simultaneously reducing greenhouse gas emissions. Voluntary industry programs to contain greenhouse gas emissions, particularly in joint implementation, should be strengthened.

Item #d97jun48

ACEEE Reports. The following are some of the latest reports issued by the American Council for an Energy Efficient Economy (ACEEE); see their publications catalog for others.

Alternative Approaches to Offsetting the Competitive Burden of a Carbon/Energy Tax (E972), J.A. Hoerner, 40 pp., 1997, $14. A round table of industry representatives estimated the impact of carbon/energy taxes on energy intensive manufacturing industries. Explored are offset strategies, tax credits, energy efficiency investment, labor taxes and various tax adjustments.

Review of State Energy Research, Development, and Demonstration (RD&D) Programs (E973), M. Pye, S. Nadel, 75 pp., 1997, $17. Covers status, funding mechanisms, achievements, changing roles, and rationals. Evaluates different approaches to energy efficiency RD&D and technology transfer.

Energy Efficiency and Economic Development in New York, New Jersey, and Pennsylvania (E971), S. Nadel, S. Laitner et al., 130 pp., 1997, $25. Increased investments in energy efficiency investments could generate 160,400 jobs by 2010. Makes recommendations on achieving this.

What Have We Learned from Early Market Transformation Efforts? (E964), M. Suozzo, S. Nadel, 34 pp., 1996, $13. A review of 11 market transformation efforts appears to be having a positive market impact as evidenced by increased sales of high-efficiency products, and changes in manufacturer, dealer and consumer behavior.

Policy Options for Improving Existing Housing Efficiency (A971), M. Suozzo, K. Wang, 80 pp., 1997, $18. Communities, utilities and states have been using programs including ordinances, retrofit loan programs, and energy rating systems linked to energy-efficient mortgage products. Presents case studies and discusses how various options can be used to maximize efficiency improvements.

Ratepayer-Funded Energy Efficiency Programs in a Restructured Utility Industry (U972), S. Nadel, J. Eto, C. Goldman, 40 pp., 1997, $14. Explains why these programs are still needed and illustrates the choices policy makers face in deciding their funding, administration, priorities, and structures.

Customer Financing for Utility Energy-Efficiency Programs (U965), M. Pye, 40 pp., 1996, $13. Examines the results from recent financing programs including loans, leases, shared savings, and energy-service charges. Makes recommendations for future programs.

Impacts of DOE-Developed Industrial Technologies (IE971), R.N. Elliott, S. McGaragahn, K. Wang, 35 pp., 1997, $13. Looks at three examples and addresses the importance of government-supported industrial RD&D.

Developing a Market Creation Program to Promote Efficient Cars and Light Trucks (T971), J. DeCicco, 60 pp., $16, 1997. Although Americans say they want "greener" motor vehicles, automakers have been slow to respond. Proposes a coordinated procurement campaign involving government and business fleet buyers and individuals, to demonstrate a demand for greener cars and trucks.

Recent Advances in Automotive Technology and the Cost-Effectiveness of Fuel Economy Improvement (T963), J. DeCicco, M. Ross, 18 pp., 1996, $11. Expands earlier analyses of the economics of automobile fuel economy improvement. Projects gasoline savings and greenhouse gas emissions reductions that could result.

Item #d97jun49

Energy Subsidies in Europe, 1997 (Greenpeace Intl.). Prepared by Inst. Environ. Studies, Vrije Univ., Amsterdam, Neth.

For the European Union, its member states, and Norway and Sweden, compares average annual direct subsidies for 1990-1995 that go to fossil fuels, nuclear energy, and renewable energy. More than 90% go to fossil fuels and nuclear power. Subsidies are only part of the picture; for example, a number of governments have changed taxation or licensing to facilitate expansion or exploitation of fossil fuels. The IPCC found that a 4-18% reduction in CO₂ emissions could be achieved through subsidy removal.

Item #d97jun50

Third Annual Report of the U.K.'s Panel on Sustainable Development (96EP229), 1997, no charge (U.K. Dept. Environ.)

While praising Environment Secretary John Gummer's suggestion that all developed countries cut CO₂ emissions by 5-10% by 2000, states that much greater reductions will be required later. Recommends a strategic energy policy that promotes energy efficiency and conservation, incorporates costs relating to climate factors into energy prices, and supports non-fossil-fuel-based energy sources.

Item #d97jun51

Green Paper on National Sustainable Energy Policy, 1997 (Australian Dept. Primary Industries). See the full text at http://www.dpie.gov.au/resources.energy/energy/greenpaper/greenpaper.html.

Conventional energy will remain the major source of energy globally and in Australia for the foreseeable future, requiring technological advances and adoption of rigorous environmental management systems to reduce the impact of energy on the environment. For Australia, there is still considerable room for further improvement even though energy efficiency has increased there.

Item #d97jun52

Externalities and Coal-Fired Power Generation (IEAPER/29), L. Clarke, Nov. 1996, £50 member countries (IEA Coal Res.).

Examines difficulties of environmental cost assessment. Properly done, these valuations can provide decision makers with a useful additional tool for making policy determinations.

Item #d97jun53

The New Geopolitics of Energy, J.V. Mitchell, P. Beck, M. Grubb, 120 pp., 1996, $15.95 (RIIA).

Looks at the regional political developments in the Middle East, the former Soviet Union, and the Asia-Pacific region, and considers the implications of recent changes for European energy policy.

Item #d97jun54

Energy for the Future: Renewable Sources of Energy, European Commission, 1997. Contact Costas Verros; tel: 32 2 2 296 5680.

Presents a strategy for the European Union to double its use of renewable energy sources (from 6% to 12%). Proposed policy measures would not use tax incentives, but are aimed at counteracting obstacles (such as market imperfections, and the hidden environmental costs of conventional fuels), and would exploit new technological developments that are economically viable.

Item #d97jun55

China in the 21st Century. Long-Term Global Implications, 136 pp., 1996, $14/FF70/DM20 (OECD).

Offers an assessment of China's possible economic and social evolution to the year 2020, and examines many internal difficulties including soaring energy demand and mounting environmental problems. The rising demand for energy will involve massive investment in modernizing mines and electricity supply, with much of the financing coming from industrialized countries. Oil imports are expected to be around 2.5 to 3.0 million barrels per day. Considers the implications for oil markets and the environment.

Item #d97jun56

Renewable Energy Strategy: Creating a New Momentum, 1996 (NRCan/Energy).

This new renewable energy strategy for Canada is a consensus document prepared in cooperation with industry that focuses on enhancing investments through improving the tax system, promoting research and development in renewables, and improving their markets. It emphasizes reliance on partnerships with a wide array of stakeholders, and focuses primarily on renewable technologies including solar, wind and geothermal.

Item #d97jun57

NEA Activities in 1995: The 24th Annual Report of the OECD Nuclear Energy Agency, 1996 (OECD).

Among the issues examined is the potential role of nuclear power in combating climate change. Preliminary study results indicate that greenhouse gas emissions from nuclear powered electricity plants are 40-100 times lower than those from fossil fuel powered plants, and comparable to or lower than those from renewable electricity generation.

Item #d97jun58

Do Automobile Fuel Economy Standards Work? (Policy Brief 173), M. Sykuta, 20 pp., Sep. 1996 (CSAB).

For a 44-year period, examined the relation between market forces, particularly gasoline prices, and the demand for vehicle fuel efficiency and gasoline consumption. Concludes that CAFE (Corporate Average Fuel Economy) standards in the U.S. have failed in their original objective-reducing gasoline consumption, and suggests that a freeze, if not a repeal of these standards is warranted. However, there was a significant relationship between gasoline price and fuel efficiency.

Item #d97jun59

Sustainability of Energy Crops in Europe: A Methodology Developed and Applied (Rep. 234-1996), 1996, 40 guilders (ca. $23.50), in English. Dutch Ctr. for Agric. & Environ. (CLM).

Compared 10 energy crops (eucalyptus, hemp, poplar, silage maize et al.) grown in four European Regions, using 12 criteria for ecological sustainability and three for socioeconomic sustainability, including the costs of abated CO₂ emissions. Concludes that energy crops have positive net energy budgets and positive net greenhouse budgets. In general energy crops for power generation have less environmental impact and produce more energy than such crops used to produce liquid fuels.

Item #d97jun60

Voluntary Actions for Energy-Related CO₂ Abatement, 150 pp., May 1996, $59 (OECD).

Voluntary actions could contribute significantly to achieving current and future commitments under the U.S. Framework Convention on Climate Change in a cost effective manner. The report, the first compilation of its kind, contains detailed information on about 250 voluntary programs in 22 member countries and the European Commission.

Item #d97jun61

Renewable Power: The Cost and Potential of Conventional and Low-Carbon Electricity Options in Western Europe, Executive Summary (Energy Policy in the Greenhouse, Vol. II, Part 3D), F. Krause, J. Koomey, D. Oliver, 13 pp., 1995 (IPSEP).

Used methods of engineering-economic analysis to examine experience with current technology, and prospects for improved designs and lower manufacturing costs. Finds that renewables have been making steady gains in cost effectiveness when compared to conventional sources. Because R&D spending on renewables has been much more cost effective than the much larger expenditures for nuclear and goal generating options, several renewable options could become more cost effective than fossil sources within a decade.