Pathways to Mexico’s climate change mitigation targets: a multi-model analysis

AbstractMexico’s climate policy sets ambitious national greenhouse gas (GHG) emission reduction targets—30% versus a business-as-usual baseline by 2020, 50% versus 2000 by 2050. However, these goals are at odds with recent energy and emission trends in the country. Both energy use and GHG emissions in Mexico have grown substantially over the last two decades. We investigate how Mexico might reverse current trends and reach its mitigation targets by exploring results from energy system and economic models involved in the CLIMACAP-LAMP project. To meet Mexico’s emission reduction targets, all modeling groups agree that decarbonization of electricity is needed, along with changes in the transport sector, either to more efficient vehicles or a combination of more efficient vehicles and lower carbon fuels. These measures reduce GHG emissions as well as emissions of other air pollutants. The models find different energy supply pathways, with some solutions based on renewable energy and others relying on biomass or fossil fuels with carbon capture and storage. The economy-wide costs of deep mitigation could range from 2% to 4% of GDP in 2030, and from 7% to 15% of GDP in 2050. Our results suggest that Mexico has some flexibility in designing deep mitigation strategies, and that technological options could allow Mexico to achieve its emission reduction targets, albeit at a cost to the country

CO2 emission mitigation and fossil fuel markets: Dynamic and international aspects of climate policies

This paper explores a multi-model scenario ensemble to assess the impacts of idealized and non-idealized climate change stabilization policies on fossil fuel markets. Under idealized conditions climate policies significantly reduce coal use in the short- and long-term. Reductions in oil and gas use are much smaller, particularly until 2030, but revenues decrease much more because oil and gas prices are higher than coal prices. A first deviation from optimal transition pathways is delayed action that relaxes global emission targets until 2030 in accordance with the Copenhagen pledges. Fossil fuel markets revert back to the no-policy case: though coal use increases strongest, revenue gains are higher for oil and gas. To balance the carbon budget over the 21st century, the long-term reallocation of fossil fuels is significantly larger -- twice and more -- than the short-term distortion. This amplifying effect results from coal lock-in and inter-fuel substitution effects to balance the full-century carbon budget. The second deviation from the optimal transition pathway relaxes the global participation assumption. The result here is less clear-cut across models, as we find carbon leakage effects ranging from positive to negative because trade and substitution patterns of coal, oil, and gas differ across models. In summary, distortions of fossil fuel markets resulting from relaxed short-term global emission targets are more important and less uncertain than the issue of carbon leakage from early mover action

System integration of wind and solar power in Integrated Assessment Models: A cross-model evaluation of new approaches

Mitigation-Process Integrated Assessment Models (MP-IAMs) are used to analyze long-term transformation pathways of the energy system required to achieve stringent climate change mitigation targets. Due to their substantial temporal and spatial aggregation, IAMs cannot explicitly represent all detailed challenges of integrating the variable renewable energies (VRE) wind and solar in power systems, but rather rely on parameterized modeling approaches. In the ADVANCE project, six international modeling teams have developed new approaches to improve the representation of power sector dynamics and VRE integration in IAMs. In this study, we qualitatively and quantitatively evaluate the last years' modeling progress and study the impact of VRE integration modeling on VRE deployment in IAM scenarios. For a comprehensive and transparent qualitative evaluation, we first develop a framework of 18 features of power sector dynamics and VRE integration. We then apply this framework to the newly-developed modeling approaches to derive a detailed map of strengths and limitations of the different approaches. For the quantitative evaluation, we compare the IAMs to the detailed hourly-resolution power sector model REMIX. We find that the new modeling approaches manage to represent a large number of features of the power sector, and the numerical results are in reasonable agreement with those derived from the detailed power sector model. Updating the power sector representation and the cost and resources of wind and solar substantially increased wind and solar shares across models: Under a carbon price of 30$/tCO2 in 2020 (increasing by 5% per year), the model-average cost-minimizing VRE share over the period 2050–2100 is 62% of electricity generation, 24%-points higher than with the old model version

Transport fuel demand responses to fuel price and income projections: Comparison of integrated assessment models

Income and fuel price pathways are key determinants in projections of the energy system in integrated assessment models. In recent years, more details have been added to the transport sector representation in these models. To better understand the model dynamics, this manuscript analyses transport fuel demand elasticities to projected income and fuel price levels. Fuel price shocks were simulated under various scenario assumptions to isolate price effects on energy demand and create a transparent environment to compare fuel demand response. Interestingly, the models show very comparable oil price elasticity values for the projected first 10–20 years that are also close to the range described in the empirical literature. When looking at the very long term (30–40 years), demand elasticity values widely vary between models, between 0.4 and −1.9, showing either continuous demand or increased demand responses over time. The latter can be the result of long response time to fuel price shocks, availability of new technologies, and feedback effects on fuel prices. The projected transport service demand is more responsive to changes in income than fuel price pathways, corresponding with the literature. Calculating the models' inherent elasticities proved to be a suitable method to evaluate model behaviour and its application is also recommended for other models as well as other sectors represented in integrated assessment model

Climate impact of transportation A model comparison

Transportation contributes to a significant and rising share of global energy use and GHG emissions. Therefore modeling future travel demand, its fuel use, and resulting CO2 emission is highly relevant for climate change mitigation. In this study we compare the baseline projections for global service demand (passenger-kilometers, ton-kilometers), fuel use, and CO2 emissions of five different global transport models using harmonized input assumptions on income and population. For four models we also evaluate the impact of a carbon tax. All models project a steep increase in service demand over the century. Technology change is important for limiting energy consumption and CO2 emissions, the study also shows that in order to stabilise or even decrease emissions radical changes would be required. While all models project liquid fossil fuels dominating up to 2050, they differ regarding the use of alternative fuels (natural gas, hydrogen, biofuels, and electricity), because of different fuel price projections. The carbon tax of 200 USD/tCO2 in 2050 stabilizes or reverses global emission growth in all models. Besides common findings many differences in the model assumptions and projections indicate room for further understanding long-term trends and uncertainty in future transport systems