Energy and Society Week 4: Energy for “the Global South” Section Notes Agenda 1. Energy Transitions and Development (30 minutes) 2. Biomass, Households, and Gender (20 minutes) I. ENERGY TRANSITIONS AND DEVELOPMENT 1. IPAT equation The IPAT equation describes environmental impact as the product of three factors: Impact = Population * Affluence * Technology a. Please describe energy consumption and carbon emissions using IPAT equation. Energy Consumption = Population * GDP per capita * Energy Intensity [GJ/$] Carbon Emissions = Population * GDP per capita * Carbon Intensity [Gt-C/$] b. Unlike developed countries, developing countries have submitted carbon emission reduction targets to the UN for “Paris Protocol” (tentative name) this year in the form of “carbon intensity” (carbon emission per GDP). Explain the rationale and problems about this type of emission reduction target. Rationale: Population and GDP per capita are often considered as the major sources of economic growth of developing countries, and setting total carbon emission target may lead to constraining their economic growth. Developing countries insist that they have the right of economic growth and fulfill their responsibility to address climate change by decoupling economic growth and carbon emissions. Problems: If the rate of increase in population and GDP per capita offset the effect of the decrease in carbon intensity, total carbon emissions increase. Considering carbon emissions from developing countries (non-OECD countries) is more than that from developed countries (OECD countries), global carbon emissions may also increase even though developed countries decrease their carbon emissions. 2. Development Metric GDP per capita is often used as a development metric. a. What is the difference between GNP and GDP? “Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on location of ownership. When a country's capital or labour resources are employed outside its borders, or when a foreign firm is operating in its territory, GDP and GNP can produce different measures of total output. In 2009 for instance, 1 9/7/2015 the United States estimated its GDP at $14.119 trillion, and its GNP at $14.265 trillion.” [Source: Wikipedia] b. What is the main flaw of GDP per capita as the development metric? Open end question. Main flaw is neglecting the environmental impact (resource depletion, pollution, waste disposal, etc) and societal impact (income inequality, crime, etc)ie the negative externalities c. What kind of information can you gain from the Lorenz Curve and Gini Coefficient? The Lorenz Curve and Gini Coefficient summarize income distribution within a country. The Lorenz curve represents the share of wealth held by each percentile of society as shown in the Figure 1 below. The smaller A is, the more equitable distribution. Gini Coefficient = A/(A+B). If the Gini Coefficient is 0 (A=0), income distribution is completely equal. If the Gini Coefficient is 1, income distribution is completely unequal. E.g. US: 0.411, China: 0.421, Germany: 0.306, Mexico: 0.472, Norway: 0.268, Zambia: 0.575 (in 2010, source: World Bank) Figure1. Lorenz Curve d. Based on this week’s reading, what other measures for development can you cite? Human Development Index (HDI), used in World Bank’s Human Development Report, is an index measuring life expectancy (health) and education, in addition to income (GDP). The details of computing the index can be found on Wikipedia about HDI and World Bank’s HDI webpage. This is mentioned in the Goldemberg reading. e. What are some strengths and weakness of using an “index” at all? What about other factors such as environment, happiness? What factors should we include? Open-end question. It is difficult to perfectly quantify the wellbeing of a nation’s resident. For example, how do you assign a specific weightage for income, in comparison with education, health, environment, etc. This weightage may well vary by individuals. 3. Energy consumption and Development a. According to the BP statistical review of world energy, the global primary energy consumption is about 13btoe in 2014. Roughly speaking, 1. How many percent of the global primary energy consumption do developing (non-OECD) countries account for? Which one of the following numbers is true? 2 9/7/2015 a. 37% b. 45% c. 52% d. 57% The answer is c. Energy consumption in developing countries is 7.4btoe and has nearly doubled from 2000 to 2014. 2. How many percent of the growth of the global primary energy consumption are developing countries projected to account for from 2013 to 2035?Which one of the following numbers is true? a. 70% b. 82% c. 92% d. 96% The answer is d. The world primary global energy consumption increase 37% during the time, and developing countries account for 96% of the increase. 3. What is the largest source of the global primary energy consumption in 2014? Oil (4.2btoe), followed by coal (3.9btoe) and natural gas (3.1btoe). These fossil fuels account for over 85% of the primary energy consumption. b. The graphs in Figure2 examine the relationship between energy use and various indicators such as life expectancy rate, literacy, etc. 1. Where does the slope of the curves dramatically change? About 2MWh/year (~0.2toe). 2. How do you interpret the change in correlation between energy consumption per capita and human development indicator at a certain threshold? Open end question. We see clear association between these variables. There is diminishing effect of increasing energy use on the indicators. The steeper slope for the first 2 MWh per capita per annum highlights the role of energy access in improving life quality, which is of particular relevance to poor countries. 3. You are a senior energy advisor to the Prime Minister of a Sub-Saharan African country, whose energy consumption per capita per annum is way below 2MWh/year. Using these graphs, what do you recommend on energy policy of the country? Why? Open end question. Many studies show that human development indicators greatly improve with the increase in energy consumption per capita up to 2MWh/year (~0.2toe) per capita. Considering thatbasic energy services need to be fulfilled for everybody (e.g. Bare-Bones Budget is 0.6MWh/year per capita), the country should improve energy efficiency and energy access for poor people. 3 9/7/2015 Figure2. Human development and energy consumption per capita II. BIOMASS, HOUSEHOLDS, AND GENDER 1. Traditional biomass is a major primary energy source for cooking and heating in developing countries. 1. What are the major problems about using traditional biomass for cooking and heating? Why are cook stoves so important? the traditional use of biomass has severe adverse health impact (e.g. particulate emissions such as PM2.5 and CO) and poor efficiency of energy conversion. Unfortunately, because women’s time is often undervalued and women tend to stay inside house, they are exposed more health risk than men and use much time in collecting woods for cooking and heating. Efficient cookstove burns the biomass more completely, reducing the release of CO, high concentration of which could pose a health risk. 2. Suppose you are planning aproject to disseminate energy-efficient LED with small solar PV system in rural India as a member of an international NGO. What factors influence adoption of small-scale energy technologies by poor? What lessons can you learn from the past cook stove dissemination projects? Based on the past cook stove experience, the important factors include: 4 9/7/2015 - Upfront capital cost and operation & management cost such as fuel cost. - Ease of use and repair (technology should be built and repaired locally) - Cultural acceptability (e.g. do the tortillas still taste good?) - Compatibility with existing infrastructure (e.g. kitchen and cook ware) The lessons include: - It is not enough for the technology to perform well in a technical sense. It must also fulfill economic, social, and cultural requirements. - It is necessary to consider the above-mentioned factors when planning the project. For that end, the users should be involved in every step of technology development. Different preferences prevail in different countries. You can’t transplant a standard technology and expect it to succeed. 5 9/7/2015