Fredrik Hedenus Physical Resource Theory Fredrik Hedenus [email protected] Physical Resource...

Fredrik HedenusPhysical Resource Theory

.

The role of economics in climate change

Policy instruments and long-term economic development

Fredrik HedenusFredrik Hedenushedenushedenus@@fyfy..chalmerschalmers.se.se

Physical Resource TheoryPhysical Resource TheoryChalmers University of TechnologyChalmers University of Technology


Long term climate targetsLong term climate targets


-

1.00

2.00

3.00

4.00

5.00

6.00

0 1,000 2,000 3,000 4,000 5,000 6,000

Population (million)

Em

iss

ion

s (

ton

car

bo

n p

er

cap

ita) USA

Canada, Australia, New Zealand

Japan

OECD Europe

Russia

Other EIT

China

Middle East

IndiaOther AsiaAfrica

Latin America


Strategies to reduce Strategies to reduce atmospheric carbon contentatmospheric carbon content Reduced energy useReduced energy use Reduced carbon intensity in the Reduced carbon intensity in the

energy supply.energy supply. Biospheric carbon stock Biospheric carbon stock

managementmanagement


Three legged carbon abatement Three legged carbon abatement policypolicy

Price signal Price signal Technology policy Technology policy Energy efficiency standardsEnergy efficiency standards

Picking technologies from the shelfPicking technologies from the shelfWind powerWind powerEthanol from biomassEthanol from biomassConventional nuclear powerConventional nuclear power

Bringing technologies to the shelfBringing technologies to the shelfCarbon capture and storageCarbon capture and storageSolar PVSolar PVFuel cellsFuel cells


Three legged climate policyThree legged climate policy

Price signal Price signal Technology policy Technology policy Energy efficiency standardsEnergy efficiency standards


Costs of meeting stabilization Costs of meeting stabilization targettarget

Present value costs of stabilising the atmosphere

02468

101214161820

350 ppm 450 ppm 550 ppm

stabilisation target

Trilli

on U

SD


Global GDP under climate Global GDP under climate policypolicyGlobal GDP

0

50

100

150

200

250

Year

Tri

llio

n U

SD

/yr

Bau

550 ppm

450 ppm

350 ppm

Source Azar & Schneider, 2002. Ecological Economics

Fredrik HedenusPhysical Resource TheoryKälla: Azar et al 2003

Supply

0

100

200

300

400

500

600

700

800

900

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

EJ/yr

nuclear

coal

oil

solar H2

bio fuels

solar electr.

wind

gas

solar heat

hydro

coal w capt.

gas w capt.

Fredrik Hedenus Physical Resource Theory Fredrik Hedenus [email protected] Physical Resource...

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