Energy for a Sustainable World

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Energy for a Sustainable World ENERGY FOR A SUSTAINABLE WORLD (iiild wi K.\. IM Kulvr'l II. Willum^ W O R L D R t S C) U R C H S INSTITU T L ENERGY FOR A SUSTAINABLE WORLD Jose Goldemberg Thomas B. Johansson Amulya K. N. Reddy Robert H. Williams A book-length version of this study with the same title is being published by Wiley-Eastern, New Delhi, India. n WORLD RESOURCES INSTITUTE A Center for Policy Research September 1987 Kathleen Courrier Publications Director Hyacinth Billings Production Supervisor Earthscan, Toyota Motor Sales, World Bank, An Exxon Photo, Renew America Project Cover Photo Each World Resources Institute Report represents a timely, scientific treatment of a subject of public concern. WRI takes responsibility for choosing the study topics and guaranteeing its authors and researchers freedom of inquiry. It also solicits and responds to the guidance of advisory panels and expert reviewers. Unless otherwise stated, however, all the interpretation and findings set forth in WRI publications are those of the authors. Copyright © 1987 World Resources Institute. All rights reserved. Library of Congress Catalog Card Number 87-050961 ISBN 0-915825-21-X ISSN 0880-2582 Contents The Energy Crisis Revisited 1 IV. Behind the Numbers 35 I. Some Surprises on the Demand Side .... 5 A New Approach 35 Structural Shifts in Industrialized A Quiet Revolution in the Making 5 Market-Oriented Countries 36 Future Possibilities 6 The Growth of the Service Sector.... 36 Relevance to Developing Countries 8 The Growing Importance of Adding It Up 11 Fabrication and Finishing 36 The Structure of Energy Demand in II. A Closer Look at the Energy Problem 17 Developing Countries 41 Energy and Basic Human Needs 43 A Temporary Reprieve for Energy and Employment Oil Consumers 17 Generation 45 Energy and Development 19 Energy for Agriculture 48 The Other Energy Crisis 20 Energy Planning as an Instrument The Hidden Costs of Conventional of Development 49 Energy 22 Opportunities for Using Commercial Global Insecurity and Middle East Energy More Efficiently 49 Oil 22 Space Heating in Industrialized Global Climatic Change and Fossil Countries 51 FuelUse 22 Appliances in Industrialized and Nuclear Weapons Proliferation and Developing Countries 55 Nuclear Power 23 Automobiles Around the World 59 Looking Ahead—Reason for Optimism ... 25 Steelmaking and Technological Leapfrogging 67 III. Alternative Energy Futures 27 Case Studies: Sweden and the United States 70 The IIASA/WEC Numbers and Our Sweden 71 Numbers: What They Mean 29 The United States 71 Future Energy Demand 29 Conclusion 72 Future Energy Supplies 31 Energy Use in Developing Countries— A More Hopeful Outlook 33 A Thought Experiment 74 V. Changing the Political Economy of Creating and Maintaining Energy Energy 87 End-Use Data Bases 97 The Role of Markets in End-Use Keeping Score on Conservation Energy Strategies 88 Programs 97 Market Shortcomings 88 Energy and Economic Development 98 The Importance of the Market in Energy Efficiency in the Modern Implementing End-Use Strategies ... 90 Sectors of Developing Countries .... 98 Market Intervention in the Present Energy and Basic Human Needs 99 Political Climate 91 Energy and Employment Promoting More Efficient Use of Generation 100 Commercial Energy 91 Energy for Agriculture 100 Eliminating Energy Supply Political Feasibility 101 Subsidies 91 International Actions 102 Rationalizing Energy Prices 92 Helping Developing Countries Improving the Flow of Information ... 92 Become More Self-Reliant 102 Targeting Energy Performance 92 Coping with Global Problems 105 Stabilizing Consumer Oil Prices 93 Conclusion 108 Promoting Comprehensive Energy Service Delivery 94 Notes 109 Making Capital Available for Energy Efficiency Investments 95 Appendix: A Top-Down Representation of Our Assisting the Poor 95 Bottom-Up Energy Demand Promoting Research and Scenario 113 Development on Energy End-Uses .. 96 Acknowledgments his report presents the major global The authors are indebted to Sam Baldwin, findings of the End-Use Global Energy Deborah Bleviss, Gautam Dutt, Harold T Project (EUGEP), of which the authors Feiveson, Howard Geller, Frank von Hippel, are co-organizers. Results of this project are Roberto Hukai, Eric Larson, Irving Mintzer, presented in more detail in a book of the same Jose Roberto Moreira, Lee Schipper, Robert title being published by Wiley-Eastern, New Socolow, and Peter Steen for fruitful discus- Delhi, India. sions, assistance, and encouragement in the course of research leading to this report, to The authors acknowledge support for the Alan Miller for many discussions and reviews research leading to this publication from the of early drafts that helped shape the presenta- World Resources Institute, the Rockefeller tion of our findings, and to David Sheridan Brothers Fund, the John D. and Catherine T. and Kathy Courrier for their diligent editorial MacArthur Foundation, the Alida and Mark efforts in bringing this manuscript to its final Dayton Charitable Trust, the Energy Research form. Commission of Sweden, the International Labor Organization, the Max and Anna Levin- J.G. son Foundation, the Swedish International T.B.J. Development Authority, and the Macauley and A.K.N.R. Helen Dow Whiting Foundation. R.H.W. in Foreword he 1970s saw nothing less than a revo- get far more bang for the energy buck than lution in energy use in the industrial- anyone dreamed possible before 1973, and far T ized countries. While energy demand more than conventional energy analysis still had grown in lockstep with economic growth suggests today. How much more is, in for decades, the oil price shocks of 1973-74 and essence, the subject of this study. 1978-9 shattered that historical relationship. So profound was the change that between 1973 Building on detailed studies of the energy and 1986 there was no growth in U.S. energy economies of the United States, Sweden, India, use while the economy grew by 30 percent. and Brazil, the EUGEP global energy scenario Comparable declines in the energy intensity of for 2020 suggests a per capita energy use in the the economy occurred in Western Europe and industrialized countries of about half what it Japan. was in 1980 (3.2 kilowatts per person rather than 6.3 kilowatts). Envisioning a widespread This change confounded much conventional shift in the developing world from traditional, energy analysis, and has fostered a new breed inefficiently used non-commercial fuels to of energy analysts who have been studying the modern energy technologies used in high effi- energy problem, not with a primary focus on ciency applications, the EUGEP scenario sees supply, but with detailed analysis of energy an average of 1.3 kilowatts per capita (con- demand. Whereas conventional energy analysts trasted to the present average of 1.0 kilowatts) posed the question: "What mix of energy sup- supporting a living standard up to that of plies can best meet projected demand?" (with Western Europe today. Overall, even with pop- demand based on projected macroeconomic ulation rising to 7 billion, the EUGEP scenario trends), this new breed asked instead: "What portrays a world in which global energy use is actual uses is energy needed for and how can only 10 percent higher than it is today, a stark those needs be most efficiently met?" Foremost contrast to conventional projections which among these "end-use" analysts have been the show an increase of more than 100 percent. authors of this study, an international team of Jose Goldemberg (Brazil), Thomas B. Johansson The EUGEP analysis is neither a projection (Sweden), Amulya K. N. Reddy (India), and nor a policy prescription. It is rather an illustra- Robert H. Williams (U.S.), with whom WRI tion (a rather conservative one in that it has collaborated for several years. employs only commercially available or near- commercial technologies) of what is technically What the EUGEP (End Use Global Energy possible. Nonetheless, its policy implications Project) analysts have found, and actual experi- are profound. Foremost among these is the far ence has demonstrated, is that it is possible to greater flexibility and freedom of maneuver governments have if they must plan for a 10 sidies in promoting inefficient energy use in percent rather than a 100 percent increment in both industrialized and developing countries. energy supply. Instead of having to push on WRI's scientific and policy work on the green- nearly every energy front to meet projected house effect, on the depletion of the earth's demand, the EUGEP message to policymakers ozone shield, and on acid rain, tropospheric is that they can choose. ozone, and other air pollutants, also ties in directly with the recommendations of this The EUGEP scenario described in detail in study on how to satisfy economic goals with- these pages embodies choices that reflect the out running up against severe environmental authors' particular values: limited growth in constraints. the use of nuclear power so as to lower nuclear proliferation risks; a balanced energy supply WRI is pleased to have worked closely with mix to reduce oil imports from the Middle East the EUGEP authors in supporting their work and thereby promote national self-reliance and and in making the results of their research enhanced global security; and, limits in the use available. Their effort is an excellent example of of coal in particular and fossil fuels in general collaborative research at the international level so as to diminish the extent of greenhouse on an issue of global importance. warming and other environmental risks. Both WRI and the EUGEP group wish to ex- To my mind these are good choices. Individ- press their gratitude to the following organiza- ual policymakers may differ in their priorities. tions which generously provided the financial What remains crucial in this work is the support that made this study possible: the demonstration that at or near the present level Rockefeller Brothers Fund, the John D.
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