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Electrification of the economy and CO 2 emissions mitigation

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  • Jae Edmonds
  • Tom Wilson
  • Marshall Wise
  • John Weyant

Abstract

In this article, the ratio of central station electricity to final energy is used as a measure of electrification. It is well known that this ratio tends to increase with gross domestic product. We show that not only is electrification a characteristic of a reference case with economic growth, but that it is significantly accelerated by a general limitation on carbon emissions. That is, limits on CO 2 concentrations, implemented efficiently across the whole economy, result in a higher ratio of electricity to total final energy use. This result reflects the relatively greater suite of options available in reducing CO 2 emissions in power generation than in other important components of the economy. Furthermore, electrification is stronger, the more stringent the constraint on CO 2 emissions, although the absolute production of electricity may be either greater or smaller in the presence of a CO 2 constraint, depending on the technologies available to the sector and to end-use sectors. The base technology scenario we examined was purposefully pessimistic about the evolution of central station and distributed electric technologies, lessening the degree of electrification. The better the performance of the set of options for emissions mitigation in power generation, the greater the acceleration of electrification. Copyright Springer Japan 2006

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  • Jae Edmonds & Tom Wilson & Marshall Wise & John Weyant, 2006. "Electrification of the economy and CO 2 emissions mitigation," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 7(3), pages 175-203, September.
    • Handle: RePEc:spr:envpol:v:7:y:2006:i:3:p:175-203
    DOI: 10.1007/BF03353999
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