Input-output-analysis as a holistic approach to evaluate and rank energy policy actions

Description

Most industrialized countries put great effort into designing and implementing policies these days that help to reduce CO2 emissions. The global threats due to climate change and the uncertainty regarding the supply of fossil fuels they are advised to even increase their ambition in achieving the related policy goals. Therefore one of the most crucial decisions that have to be made is which policy measures should be implemented at all and in which sequence. Due to budget restrictions this choice is not only a question of technical effectiveness but also of economic efficiency. One common method to rank different measures is to calculate the resulting CO2 abatement costs (Euro per ton of CO2), these can be compared easily and are thus amenable to ranking, resulting in a -marginal cost curve- for the economy. Usually, the CO2 amount calculated derives from the amount of (fossil fuel based) energy that could be saved during the usage of a specific good over a defined period, often the lifetime of a product. However, to calculate the total amount of CO2 that could be abated by taking certain action, one has to think about the emissions in the production process of the good being replaced, as well. The main objective of this paper is to present a methodology how the concept of covering the emissions - from the cradle to the grave - could be integrated into a model comprehensive but still manageable that can support policy makers in deciding which measures to adopt. In this contribution the authors suggest a model structure that allows coupling the structure and the demand levels from national energy statistics with standard input output statistical data of the same level. The work focuses on two aspects of such an approach. The first query is how to change the I/O coefficients if a policy measure is being taken that involves a technology change, the second how the resulting changing structure of the economy impacts the quantity of the overall CO2 emissions.

Period	29 Jun 2008 → 2 Jul 2008
Event title	Adcances in Energy Studies - 6th Biennial International Workshop
Event type	Unknown
Degree of Recognition	National