What happened when Sweden introduced a 25% rebate on the cost of an e-bike for 12 months over 2017-18? Lucas Davis at the Haas School of Business reviews a study that digs into the consequences. Sales increased by 70%. E-bike prices remained steady, so the sellers didn’t simply raise prices to eat up the rebate. The study estimates that although a third of those sales would have “happened anyway” (i.e. no additionality) the remaining two-thirds … [Read more...]
Pathway for 100% Renewables in 24 U.S. states by 2035
We should not be surprised to see a growing number of 100% renewables roadmaps, with target dates in the 2030s, from nations as the transition gains pace. This study, “On the Road to 100 Percent Renewables” led by The Union of Concerned Scientists (UCS), details how the 24 states that make up the members of the U.S. Climate Alliance (USCA) can meet all of their electricity needs with renewable energy by 2035. Paula Garcia at UCS summarises the … [Read more...]
New York City to stop new buildings connecting to the Gas network
New York City is the U.S.’s largest metropolis, over twice the size of second spot Los Angeles, and is still growing. It has just passed a bill that effectively stops new buildings from hooking up to the gas network. The significance is not simply because of NYC’s global prominence, but because it gets very cold in winter with average temperatures just above freezing point. The move is a major win for the electrification of buildings. The … [Read more...]
E-fuels for cars are expensive, and pollute the air as much as petrol
MEPs and governments are currently deciding on an EC proposal for all new cars sold from 2035 to be 100% zero-emissions. Here, T&E present test results that show e-fuels should not be allowed to replace petrol. T&E are concerned that e-fuels are being promoted as a way to prolong the life of ICE vehicles. But their tests show that e-fuels produce just as much NOx, three times more carbon monoxide, and twice as much ammonia. Though e-fuels … [Read more...]
Vehicle charge zones: too high, and driver detours can increase emissions
Vehicle congestion charge zones are a way of taxing drivers for the emissions they create. They have great potential to steer polluters towards shorter and/or fewer journeys, and towards cleaner fuels. But it's full potential that has gone mostly untapped. Most “cordon zones” found in big cities like London, Stockholm, Milan and Singapore keep the rules very simple. Journey length is rarely, if ever, taken into account. Importantly, no one is … [Read more...]
China’s car sales target: 40% EVs by 2030 will cost CNY 100bn/year (€13bn, $15bn)
By the end of 2020 China will phase out EV subsidies and instead rely on a mandate imposed on manufacturers to target 40% of car sales being electric by 2030. Nancy Stauffer at MIT reviews a study that estimates the new rules will result in 66m EVs sold in China in the next 10 years. That will move EVs well into the mainstream and have global consequences. According to the study, the total cost of that transition will be 100bn yuan/year (€13bn, … [Read more...]
Are Regulations and Climate Activism the main driver for coal exits, not Gas and Renewables prices?
It’s widely thought in the media and politics that market forces are now the primary driver for the demise of coal: mainly natural gas prices, and the rising adoption and competitiveness of wind and solar. However, David Drake and Jeffrey York at the University of Colorado Boulder present their research from the U.S. that suggests the two main drivers are federal policy and climate activism. They studied the retirement of 348 coal-fired units … [Read more...]
The dangers of using Climate Policy as a Social Justice tool
Cap-and-trade has been criticised in California for allowing big emitters to pay their way out of reducing emissions and cause pollution. It’s become a social justice issue as poorer communities tend to be located near where the pollution is being created. James Bushnell at the Energy Institute at Haas warns that such clashes are being caused by the mistaken view that climate policy should be a major tool for reducing inequality. In fact, some … [Read more...]
China’s 14th Five-Year Plan will reshape its growing Gas sector
Demand for natural gas in China is set to continue its rise, increasing by 7% to 9% annually to reach up to 500 bcm by 2025, explains Sylvie Cornot-Gandolphe at the IFRI Centre for Energy & Climate. Domestic gas production has continued its significant growth too, driven by a surge in shale gas. Even then, gas imports – both pipeline and LNG - should increase to fulfil the rising supply/demand gap. This growing importance of gas in the energy … [Read more...]
Net Zero by 2050 technically and economically achievable, says Energy Transitions Commission report
Making Mission Possible, the latest report by the Energy Transitions Commission, describes a net-zero world by mid-century as technically and economically possible. The solutions are already available or close to being brought to market. What is still missing is the will to embrace, rapidly and at scale, the inevitable disruption that will ultimately deliver net-zero emissions, lower air pollution, cheaper energy bills, create new jobs and raise … [Read more...]
A Just Transition can address systemic inequality, not just clean energy jobs
For some, the concept of a Just Transition means more than re-skilling former coal workers. It’s an opportunity to reduce systemic inequality in their society. Energy costs represent a high portion of the spending of the poor, so any major overhaul of the energy system, like the Transition, can have a direct and positive impact on them. Writing for the Regulatory Assistance Project (RAP), Alice Napoleon, Donna Brutkoski and Nancy Seidman describe … [Read more...]
Coal exit saves money when public health, land degradation costs added – analysis
Coal is cheap. In countries historically reliant on it, as well as emerging economies still building plants, switching to cleaner energy just doesn’t seem to add up. That’s when you’re only looking at your national energy system costs. But the externality costs of air pollution, public health and a degraded local environment are rarely factored in to the equation. When they are, explains Sebastian Rauner writing for Carbon Brief, abandoning coal … [Read more...]
Will China build more Coal to stimulate the economy?
Could China ramp up coal generation – of the order of hundreds of GW by 2030 - as part of its efforts to stimulate its economy and recover from the coronavirus slump? The thinking is that building a coal plant converts faster into economic growth than the equivalent spent on renewables. In the previous decade, building coal plants was an effective part of China’s economic growth plan that secured its place as the world’s second largest economy. … [Read more...]
The rapid liberalisation of China’s domestic gas market
China’s coal-to-gas ambitions are driving big changes to its internal gas markets, says a report “China’s Quest for Blue Skies: The Astonishing Transformation of the Domestic Gas Market” by the IFRI Centre for Energy & Climate, authored by Sylvie Cornot-Gandolphe. To cope with a doubling of gas demand by 2030, market reforms are liberalising the downstream gas market. Nobody wants a repeat of the winter shortages of 2017-18. And air … [Read more...]
GDP – Gross Environmental Damage = actual wealth creation
We all know that GDP measures everything that’s been paid for, both the good and the bad. There have already been studies that try to account for the “bad” GDP that costs us in the long run and so adds less value than stated. Catherine Wolfram, at the Haas School of Business, takes a thoughtful look at Gross Environmental Damage which separates out the kind of GDP that we’re going to have to spend money cleaning up in the future. The GED concept … [Read more...]
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