This paper introduces an approach for separately quantifying the contributions from renewables in decomposition analysis. So far, decomposition analyses of the drivers of national CO2 emissions have typically considered the combined energy mix as an explanatory factor without an explicit consideration or separation of renewables. As the cost of renewables continues to decrease, it becomes increasingly relevant to track their role in CO2 emission trends. Index decomposition analysis, in particular, provides a simple approach for doing so using publicly available data. We look to the U.S. as a case study, highlighting differences with the more detailed but also more complex structural decomposition analysis. Between 2007 and 2013, U.S. CO2 emissions decreased by around 10%—a decline not seen since the oil crisis of 1979. Prior analyses have identified the shale gas boom and the economic recession as the main explanatory factors. However, by decomposing the fuel mix effect, we conclude that renewables played an equally important role as natural gas in reducing CO2 emissions between 2007 and 2013: renewables decreased total emissions by 2.3–3.3%, roughly matching the 2.5–3.6% contribution from the shift to natural gas, compared with 0.6–1.5% for nuclear energy.
The Paris Agreement to the United Nations Framework Convention on Climate Change has achieved one of two key necessary conditions for ultimate success—a broad base of participation among the countries of the world. But another key necessary condition has yet to be achieved—adequate collective ambition of the individual nationally determined contributions. How can the climate negotiators provide a structure that will include incentives to increase ambition over time? An important part of the answer can be international linkage of regional, national, and sub-national policies, that is, formal recognition of emission reductions undertaken in another jurisdiction for the purpose of meeting a Party’s own mitigation objectives. A central challenge is how to facilitate such linkage in the context of the very great heterogeneity that characterizes climate policies along five dimensions: type of policy instrument, level of government jurisdiction, status of that jurisdiction under the Paris Agreement, nature of the policy instrument’s target, and the nature along several dimensions of each Party’s Nationally Determined Contribution. We consider such heterogeneity among policies, and identify which linkages of various combinations of characteristics are feasible; of these, which are most promising; and what accounting mechanisms would make the operation of respective linkages consistent with the Paris Agreement.
This paper reviews the cost of various interventions that reduce greenhouse gas emissions. As much as possible we focus on actual abatement costs (dollars per ton of carbon dioxide avoided), as measured by 50 economic studies of programs over the past decade, supplemented by our own calculations. We distinguish between static costs, which occur over the lifetime of the project, and dynamic costs, which incorporate spillovers. Interventions or policies that are expensive in a static sense can be inexpensive in a dynamic sense if they induce innovation and learning-by-doing.
Like many other states, Oregon has begun to pursue climate policies to attempt to fill the gap created by the lack of effective climate policy at the Federal level. After adopting a variety of policies to address climate change and other environmental impacts from energy use, Oregon is now contemplating the adoption of a greenhouse gas (GHG) cap-and-trade system. However, interactions between policies can have important consequences for environmental and economic outcomes. Thus, as Oregon considers taking this step, reconsidering the efficacy of its other current climate policies may better position the state to achieve long-run emission reductions at sustainable economic costs.
We raise for debate and discussion what in our opinion is a growing mis-control and mis-protection of U.S. energy research. We outline the origin of this mis-control and mis-protection, and propose two guiding principles to mitigate them and instead nurture research: (1) focus on people, not projects; and (2) culturally insulate research from development, but not science from technology.
Energy research is critical to continuing advances in human productivity and welfare. In this Commentary, we raise for debate and discussion what in our view is a growing mis-control and mis-protection of U.S. energy research. This flawed approach originates in natural human tendencies exacerbated by an historical misunderstanding of research and development, science and technology, and the relationships between them. We outline the origin of the mis-control and mis-protection, and propose two guiding principles to mitigate them and instead nurture research: (i) focus on people, not projects; and (ii) culturally insulate research from development, but not science from technology. Our hope is to introduce these principles into the discourse now, so they can help guide policy changes in U.S. energy research and development that are currently being driven by powerful geopolitical winds.