Resource Requirements for Industrial Processes: A WELMM Comparison of Energy Chains

This paper presents an application of the WELMM method to the comparison of various energy chains. It can be divided into two main parts: (1) the comparison of energy chains at the secondary energy level (four coal, three nuclear and two solar electricity producing chains with an annual output of 6.1 TWh each, are studied); (2) the comparison of energy chains at the useful energy level (for a defined output of 0.65 Mtce useful energy three alternative chains are studied: coal-electric, synthetic natural gas, and liquefied natural gas). More disaggregated data on the nuclear and solar electricity producing chains are presented in the Appendix

An Assessment of the Costs of the French Nuclear PWR Program 1970-2000

The paper reviews the history and the economics of the French PWR program, which is arguably the most successful nuclear-scale up experience in an industrialized country. Key to this success was a unique institutional framework that allowed for centralized decision making, a high degree of standardization, and regulatory stability, all epitomized by comparatively short reactor construction times. Drawing on largely unknown public records, the paper reveals for the first time both absolute as well as specific reactor costs and their evolution over time. Its most significant finding is that even this most successful nuclear scale-up was characterized by a substantial escalation of real-term reactor construction costs. Specific costs per kW installed capacity increased by more than a factor of three between the first and last reactor generations built. Conversely, operating costs have remained remarkably flat, despite lowered load factors resulting from the need for load modulation in a system where base-load nuclear power plants supply three quarters of electricity. The paper draws a number of cautionary lessons for technology, policy, and modeling studies in a climate-constrained world. First, the inherent technology characteristics of nuclear power: large-scale, complex, and with lumpy investments introduce a significant economic risk of cost overruns in the build-up process. Anticipated economic gains from standardization and ever larger unit scales not only have not materialized, but the corresponding increasing complexity in design and in construction operations have reversed the anticipated learning effects to their contrary: cost escalation. Second, cost projections and policy rationales based on relative economic merits of competing technology options are fraught by persistent uncertainties and biases, suggesting that the real cost of a scale up of a technology as large and complex as nuclear might be in fact unknowable ex ante, severely limiting conventional deterministic economic calculus and decision making (e.g. cost minimization) models. Lastly, the French nuclear case illustrates the perils of the assumption of robust learning effects resulting in lowered costs over time in the scale-up of large-scale, complex new energy supply technologies. The uncertainties in anticipated learning effects of new technologies might be much larger that often assumed, including also cases of "negative learning" in which specific costs increase rather than decrease with accumulated experience

Technological and Societal Changes and Their Impacts on Resource Production and Use

The traditional narrative of continued economic growth driven by development aspirations towards material-intensive lifestyles and associated ever larger extraction and use of resources is contrasted with an alternative perspective. This alternative may lead to much lower growth, even to a “de-growth” of biogenic, energetic, and mineral resources. Disruptive innovations, above all digitalization, combined with changing consumer preferences and lifestyles as well as public policies to address climate change could challenge traditional business models and forms of service provision. Examples of such disruptive innovations in the domains of digital convergence and the sharing economy are given with their potential implications on resource use. Two contrasting scenarios, quantified to 2050, illustrate the wide divergence of potential developments in resource extraction and use over the coming decades

Managing the Global Environment

Global environmental problems pose entirely new challenges for science, technology, and policy making. Persistent scientific uncertainties, extremely long time horizons, the potential need for radical and systemic technological changes, and huge distances in both time and space between those that are supposed to act and those that will benefit, are in stark contrast to historical experiences of dealing with environmental issues

A Comparative Analysis of Annual Market Investments in Energy Supply and End-use Technologies

Whereas the need to mobilize investment in energy supply technologies is broadly understood, with the current level of investment estimated in the order of $0.7-0.9 trillion a year, there is a notable absence of analogous investment data for end-use technologies. This paper presents a global, bottom-up estimate of total investments in end-use energy technologies based on volume data and cost estimates for 2005. Total investment in end-use technologies was conservatively found to be in the order of$0.3-4 trillion depending on the definition of end-use technology used

Evolution of Transport Systems: Past and Future

In this report the authors develop a scenario for future developments in the transport sector and their implications for future demand. In developing a comprehensive mode-space-time coverage of the evolution of transport systems, the analysis indicates that present transport systems are approaching a number of limits: market saturation in leading countries and an increasing awareness of the social and environmental disbenefits associated with a further intensification in the use of present-day oil-based transport systems. The report describes an innovative scenario from a historical perspective, taking into account a number of institutional and physical constraints to significant future increases in the the car population and air travel demand at the global level

Long Waves, Technology Diffusion, and Substitution

There is an urgent need to drastically reduce adverse environmental impacts resulting from prevailing economic activities. Even more important is the question of the future direction of economic development and technological changes. In this paper the authors argue, from a historical perspective, that this process will remain discontinuous and spatially heterogeneous, as a result of diverse policies and strategies. The authors illustrate empirically the argument that the process of economic growth and technological change is not smooth and continuous. They demonstrate that various phases of economic expansion are driven by the host of interrelated clusters of technologies and that the timing of the transition from one dominant cluster to another is consistent with the pattern of Kondratieff long waves. The paper also illustrates that we are currently moving away from the old, materials- and energy-intensive development trajectory to a new future. There is a need to progressively close the industrial-ecology cycle and there are indications that this may indeed be possible, given the promotion of a range of carefully selected technological and policy measures for achieving sustainable development

International Burden Sharing in Greenhouse Gas Reduction

This report provides an overview of current and historical greenhouse gas (GHG) emissions; examines alternative formulations on how efforts to lower anthropogenic GHG emissions could be shared among regions/countries; evaluates quantitatively the implications of alternative GHG allocation/reduction criteria, particularly from a "North-South" perspective; and describes a combined GHG emission data base and software tool developed for the analysis of GHG allocation regimes: the Parametric Framework. The Parametric Framework (in Lotus format) contains a data set comprising 13 world regions/countries, socio-economic background data, and three different types of greenhouse gases/sources: fossil fuel and industrial carbon dioxide (CO2) emissions, CO2 emissions from biota and land-use changes, and anthropogenic methane (CH4) emissions. Historical emission data span the period 1800 to 1988 for CO2, and 1950 to 1988 for CH4. In addition, the numerical routines necessary to calculate the quantitative implications of four alternative GHG allocation criteria (and their variants) are included. The Parametric Framework enables easy and straightforward changes of data, control targets, and other salient parameters of importance in GHG accounting (e.g., global warming potential equivalences between different GHGs). Four different GHG emission reduction and allocation criteria are analyzed: equal per capita emissions, equal percentage cuts from current emissions to desired target levels ("grandfathering"), cutbacks proportional to past contributions to atmospheric concentration increase on a regional basis (compensation for "natural debt"), and natural GHG sinks adjusted emission reduction. An analysis was made of the quantitative implications of the four GHG emission allocation criteria for 13 world regions, assuming a reduction of global emissions to 4 Gt C (C-equivalent) by the year 2050. Additional sensitivity analyses were performed for each of the criteria. The most important findings of the analysis include the following: (1) There are two generic classes of allocation criteria: distributive -- the allocation of emission rights, and reductive -- the allocation of emission reduction requirements. The largest differences in emission allocations are obtained between these two classes, especially when distributive allocation criteria are based on a per capita basis. (2) Differences were smaller within each of the two classes. For example, the reductive allocation criteria across the board percentage cuts ("grandfathering") and cutbacks proportional to past contribution achieve quite similar regional future emission allocations: (3) The basic principle of the allocation is also more important than the inclusion of different GHGs (comprehensiveness). (4) The smallest variations in emission distribution resulted from altering the reference year compared to which emission reduction ought to be achieved

Future capacity growth of energy technologies: are scenarios consistent with historical evidence?

Future scenarios of the energy system under greenhouse gas emission constraints depict dramatic growth in a range of energy technologies. Technological growth dynamics observed historically provide a useful comparator for these future trajectories. We find that historical time series data reveal a consistent relationship between how much a technology’s cumulative installed capacity grows, and how long this growth takes. This relationship between extent (how much) and duration (for how long) is consistent across both energy supply and end-use technologies, and both established and emerging technologies. We then develop and test an approach for using this historical relationship to assess technological trajectories in future scenarios. Our approach for “learning from the past” contributes to the assessment and verification of integrated assessment and energy-economic models used to generate quantitative scenarios. Using data on power generation technologies from two such models, we also find a consistent extent - duration relationship across both technologies and scenarios. This relationship describes future low carbon technological growth in the power sector which appears to be conservative relative to what has been evidenced historically. Specifically, future extents of capacity growth are comparatively low given the lengthy time duration of that growth. We treat this finding with caution due to the low number of data points. Yet it remains counter-intuitive given the extremely rapid growth rates of certain low carbon technologies under stringent emission constraints. We explore possible reasons for the apparent scenario conservatism, and find parametric or structural conservatism in the underlying models to be one possible explanation