IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v162y2016icp699-712.html
   My bibliography  Save this article

The critical role of the industrial sector in reaching long-term emission reduction, energy efficiency and renewable targets

Author

Listed:
  • Fais, Birgit
  • Sabio, Nagore
  • Strachan, Neil

Abstract

This paper evaluates the critical contribution of the industry sector to long-term decarbonisation, efficiency and renewable energy policy targets. Its methodological novelty is the incorporation of a process-oriented modelling approach based on a comprehensive technology database for the industry sector in a national energy system model for the UK (UKTM), allowing quantification of the role of both decarbonisation of upstream energy vectors and of mitigation options in the industrial sub-categories. This enhanced model is then applied in a comparative policy scenario analysis that explores various target dimensions on emission mitigation, renewable energy and energy efficiency at both a national and European level. The results show that ambitious emission cuts in the industry sector of up to 77% until 2050 compared to 2010 can be achieved. Moreover, with a reduction in industrial energy demand of up to 31% between 2010 and 2050, the sector is essential for achieving the overall efficiency commitments. The industry sector also makes a moderate contribution to the expansion of renewable energies mostly through the use of biomass for low-temperature heating services. However, additional sub-targets on renewable sources and energy efficiency need to be assessed critically, as they can significantly distort the cost-efficiency of the long-term mitigation pathway.

Suggested Citation

  • Fais, Birgit & Sabio, Nagore & Strachan, Neil, 2016. "The critical role of the industrial sector in reaching long-term emission reduction, energy efficiency and renewable targets," Applied Energy, Elsevier, vol. 162(C), pages 699-712.
    • Handle: RePEc:eee:appene:v:162:y:2016:i:c:p:699-712
    DOI: 10.1016/j.apenergy.2015.10.112
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261915013483
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2015.10.112?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Napp, T.A. & Gambhir, A. & Hills, T.P. & Florin, N. & Fennell, P.S, 2014. "A review of the technologies, economics and policy instruments for decarbonising energy-intensive manufacturing industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 616-640.
    2. N/A, 2011. "The UK economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 218(1), pages 3-3, October.
    3. Porzio, Giacomo Filippo & Fornai, Barbara & Amato, Alessandro & Matarese, Nicola & Vannucci, Marco & Chiappelli, Lisa & Colla, Valentina, 2013. "Reducing the energy consumption and CO2 emissions of energy intensive industries through decision support systems – An example of application to the steel industry," Applied Energy, Elsevier, vol. 112(C), pages 818-833.
    4. N/A, 2011. "The UK economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 216(1), pages 3-3, April.
    5. Kannan, Ramachandran & Strachan, Neil, 2009. "Modelling the UK residential energy sector under long-term decarbonisation scenarios: Comparison between energy systems and sectoral modelling approaches," Applied Energy, Elsevier, vol. 86(4), pages 416-428, April.
    6. Wilkerson, Jordan T. & Cullenward, Danny & Davidian, Danielle & Weyant, John P., 2013. "End use technology choice in the National Energy Modeling System (NEMS): An analysis of the residential and commercial building sectors," Energy Economics, Elsevier, vol. 40(C), pages 773-784.
    7. Richard Loulou & Maryse Labriet, 2008. "ETSAP-TIAM: the TIMES integrated assessment model Part I: Model structure," Computational Management Science, Springer, vol. 5(1), pages 7-40, February.
    8. Pfenninger, Stefan & Keirstead, James, 2015. "Renewables, nuclear, or fossil fuels? Scenarios for Great Britain’s power system considering costs, emissions and energy security," Applied Energy, Elsevier, vol. 152(C), pages 83-93.
    9. Pye, Steve & Usher, Will & Strachan, Neil, 2014. "The uncertain but critical role of demand reduction in meeting long-term energy decarbonisation targets," Energy Policy, Elsevier, vol. 73(C), pages 575-586.
    10. Anable, Jillian & Brand, Christian & Tran, Martino & Eyre, Nick, 2012. "Modelling transport energy demand: A socio-technical approach," Energy Policy, Elsevier, vol. 41(C), pages 125-138.
    11. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    12. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    13. John Barrett & Glen Peters & Thomas Wiedmann & Kate Scott & Manfred Lenzen & Katy Roelich & Corinne Le Qu�r�, 2013. "Consumption-based GHG emission accounting: a UK case study," Climate Policy, Taylor & Francis Journals, vol. 13(4), pages 451-470, July.
    14. Richard Loulou, 2008. "ETSAP-TIAM: the TIMES integrated assessment model. part II: mathematical formulation," Computational Management Science, Springer, vol. 5(1), pages 41-66, February.
    15. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198, January.
    16. Karali, Nihan & Xu, Tengfang & Sathaye, Jayant, 2014. "Reducing energy consumption and CO2 emissions by energy efficiency measures and international trading: A bottom-up modeling for the U.S. iron and steel sector," Applied Energy, Elsevier, vol. 120(C), pages 133-146.
    17. Guo, Zhengquan & Zhang, Xingping & Zheng, Yuhua & Rao, Rao, 2014. "Exploring the impacts of a carbon tax on the Chinese economy using a CGE model with a detailed disaggregation of energy sectors," Energy Economics, Elsevier, vol. 45(C), pages 455-462.
    18. Fleiter, Tobias & Fehrenbach, Daniel & Worrell, Ernst & Eichhammer, Wolfgang, 2012. "Energy efficiency in the German pulp and paper industry – A model-based assessment of saving potentials," Energy, Elsevier, vol. 40(1), pages 84-99.
    19. Daly, Hannah E. & Ramea, Kalai & Chiodi, Alessandro & Yeh, Sonia & Gargiulo, Maurizio & Gallachóir, Brian Ó, 2014. "Incorporating travel behaviour and travel time into TIMES energy system models," Applied Energy, Elsevier, vol. 135(C), pages 429-439.
    20. Paul Ekins & Gabrial Anandarajah & Neil Strachan, 2011. "Towards a low-carbon economy: scenarios and policies for the UK," Climate Policy, Taylor & Francis Journals, vol. 11(2), pages 865-882, March.
    21. Pardo, Nicolás & Moya, José Antonio, 2013. "Prospective scenarios on energy efficiency and CO2 emissions in the European Iron & Steel industry," Energy, Elsevier, vol. 54(C), pages 113-128.
    22. Böhringer, Christoph & Balistreri, Edward J. & Rutherford, Thomas F., 2012. "The role of border carbon adjustment in unilateral climate policy: Overview of an Energy Modeling Forum study (EMF 29)," Energy Economics, Elsevier, vol. 34(S2), pages 97-110.
    23. Hasanbeigi, Ali & Morrow, William & Masanet, Eric & Sathaye, Jayant & Xu, Tengfang, 2013. "Energy efficiency improvement and CO2 emission reduction opportunities in the cement industry in China," Energy Policy, Elsevier, vol. 57(C), pages 287-297.
    24. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
    25. Anandarajah, Gabrial & Strachan, Neil, 2010. "Interactions and implications of renewable and climate change policy on UK energy scenarios," Energy Policy, Elsevier, vol. 38(11), pages 6724-6735, November.
    26. Brunke, Jean-Christian & Blesl, Markus, 2014. "A plant-specific bottom-up approach for assessing the cost-effective energy conservation potential and its ability to compensate rising energy-related costs in the German iron and steel industry," Energy Policy, Elsevier, vol. 67(C), pages 431-446.
    27. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935, January.
    28. Arnold Tukker & Erik Dietzenbacher, 2013. "Global Multiregional Input-Output Frameworks: An Introduction And Outlook," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 1-19, March.
    29. Broeren, M.L.M. & Saygin, D. & Patel, M.K., 2014. "Forecasting global developments in the basic chemical industry for environmental policy analysis," Energy Policy, Elsevier, vol. 64(C), pages 273-287.
    30. Swan, Lukas G. & Ugursal, V. Ismet, 2009. "Modeling of end-use energy consumption in the residential sector: A review of modeling techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 1819-1835, October.
    31. Fujimori, S. & Kainuma, M. & Masui, T. & Hasegawa, T. & Dai, H., 2014. "The effectiveness of energy service demand reduction: A scenario analysis of global climate change mitigation," Energy Policy, Elsevier, vol. 75(C), pages 379-391.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. DeCarolis, Joseph & Daly, Hannah & Dodds, Paul & Keppo, Ilkka & Li, Francis & McDowall, Will & Pye, Steve & Strachan, Neil & Trutnevyte, Evelina & Usher, Will & Winning, Matthew & Yeh, Sonia & Zeyring, 2017. "Formalizing best practice for energy system optimization modelling," Applied Energy, Elsevier, vol. 194(C), pages 184-198.
    2. Barazza, Elsa & Strachan, Neil, 2020. "The impact of heterogeneous market players with bounded-rationality on the electricity sector low-carbon transition," Energy Policy, Elsevier, vol. 138(C).
    3. Napp, T.A. & Few, S. & Sood, A. & Bernie, D. & Hawkes, A. & Gambhir, A., 2019. "The role of advanced demand-sector technologies and energy demand reduction in achieving ambitious carbon budgets," Applied Energy, Elsevier, vol. 238(C), pages 351-367.
    4. Li, Francis G.N. & Trutnevyte, Evelina, 2017. "Investment appraisal of cost-optimal and near-optimal pathways for the UK electricity sector transition to 2050," Applied Energy, Elsevier, vol. 189(C), pages 89-109.
    5. Hall, Lisa M.H. & Buckley, Alastair R., 2016. "A review of energy systems models in the UK: Prevalent usage and categorisation," Applied Energy, Elsevier, vol. 169(C), pages 607-628.
    6. Vaillancourt, Kathleen & Bahn, Olivier & Frenette, Erik & Sigvaldason, Oskar, 2017. "Exploring deep decarbonization pathways to 2050 for Canada using an optimization energy model framework," Applied Energy, Elsevier, vol. 195(C), pages 774-785.
    7. Diesendorf, Mark & Elliston, Ben, 2018. "The feasibility of 100% renewable electricity systems: A response to critics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 318-330.
    8. Pye, Steve & Daly, Hannah, 2015. "Modelling sustainable urban travel in a whole systems energy model," Applied Energy, Elsevier, vol. 159(C), pages 97-107.
    9. Sachs, Julia & Moya, Diego & Giarola, Sara & Hawkes, Adam, 2019. "Clustered spatially and temporally resolved global heat and cooling energy demand in the residential sector," Applied Energy, Elsevier, vol. 250(C), pages 48-62.
    10. Roberts, Simon H. & Foran, Barney D. & Axon, Colin J. & Warr, Benjamin S. & Goddard, Nigel H., 2018. "Consequences of selecting technology pathways on cumulative carbon dioxide emissions for the United Kingdom," Applied Energy, Elsevier, vol. 228(C), pages 409-425.
    11. Borasio, M. & Moret, S., 2022. "Deep decarbonisation of regional energy systems: A novel modelling approach and its application to the Italian energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    12. Daniel Moran & Richard Wood, 2014. "Convergence Between The Eora, Wiod, Exiobase, And Openeu'S Consumption-Based Carbon Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 245-261, September.
    13. Pye, Steve & Sabio, Nagore & Strachan, Neil, 2015. "An integrated systematic analysis of uncertainties in UK energy transition pathways," Energy Policy, Elsevier, vol. 87(C), pages 673-684.
    14. Renaud Coulomb & Oskar Lecuyer & Adrien Vogt-Schilb, 2019. "Optimal Transition from Coal to Gas and Renewable Power Under Capacity Constraints and Adjustment Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 557-590, June.
    15. Sijm, Jos & Lehmann, Paul & Chewpreecha, Unnada & Gawel, Erik & Mercure, Jean-Francois & Pollitt, Hector & Strunz, Sebastian, 2014. "EU climate and energy policy beyond 2020: Are additional targets and instruments for renewables economically reasonable?," UFZ Discussion Papers 3/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    16. Paul Lehmann & Patrik Söderholm, 2018. "Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 475-505, October.
    17. Acquaye, Adolf & Ibn-Mohammed, Taofeeq & Genovese, Andrea & Afrifa, Godfred A & Yamoah, Fred A & Oppon, Eunice, 2018. "A quantitative model for environmentally sustainable supply chain performance measurement," European Journal of Operational Research, Elsevier, vol. 269(1), pages 188-205.
    18. van der Zwaan, Bob & Kober, Tom & Longa, Francesco Dalla & van der Laan, Anouk & Jan Kramer, Gert, 2018. "An integrated assessment of pathways for low-carbon development in Africa," Energy Policy, Elsevier, vol. 117(C), pages 387-395.
    19. van der Zwaan, Bob & Kober, Tom & Calderon, Silvia & Clarke, Leon & Daenzer, Katie & Kitous, Alban & Labriet, Maryse & Lucena, André F.P. & Octaviano, Claudia & Di Sbroiavacca, Nicolas, 2016. "Energy technology roll-out for climate change mitigation: A multi-model study for Latin America," Energy Economics, Elsevier, vol. 56(C), pages 526-542.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:162:y:2016:i:c:p:699-712. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.