17
NORTH- HOLLAND Decarbonization: Doing More with Less NEBOJSA NAKICENOVIC ABSTRACT This article demonstrates that large decreases in energy requirements per unit economic output were achieved throughout the world and that carbon emissions have also decreased per unit energy. Energy is one of the most important factor inputs so that decreases in specific energy requirements contribute toward decreasing material intensity. Carbon dioxide emissions represent one of the largest single mass flows associated with human activities. Therefore, decarbonization contributes in a large way toward dematerializaton. At the global level decarbonization occurs at about 0.307o per year, and reduction of energy intensity of value added stands at 1 °70 per year, resulting in overall carbon intensity of value added reduction of about 1.3070 per year. The pervasiveness of decarbonization in the world, is illustrated for five representative countries. The case histories show that developing countries are undergoing basically the same process of decarbonization of final energy use as do most developed ones. However, carbon intensity of primary energy is increasing in some developing countries and should a reversal not occur in the forthcoming decades, it is likely the decarbonization in the industrialized countries could be offset by this tendency. Thus, the possibility cannot be entirely excluded that carbon dioxide emissions would increase faster than economic growth. These opposing tendencies could be bridged in the future if the energy system restructures toward larger reliance on natural gas, biomass, nuclear energy, and other zero-carbon options. For example, the methane economy could lead to a greater role for energy gases (and later hydrogen) in conjunction with electricity. Such an energy system would represent a gigantic step toward decarbonization and it would also be consistent with the emergence of new technologies that hold the promise of higher flexibility, productivity, and environmental compatibility. Introduction Doing more with less is a great achievement of advanced societies. Labor, capital, energy, other factor inputs, and material requirements have decreased per unit output and value added since the beginning of the industrial revolution. These productivity increases are due to numerous technological and organizational innovations and to an enormous accumulation of knowledge. These achievements are often referred to in the literature as the autonomous rates of technological change. Since the industrial revolution the production of material and of other goods and services has outpaced population growth in the world, resulting in increasing wealth and DR NEBOJSA NAKIt~ENOVI(~ is Project Leader of the Environmentally Compatible Energy Strategies Project at the International Institute for Applied Systems Analysis, Laxenburg, Austria. Some results given in this article are based on the joint research of the author with the assistance of Gilbert Ahamer and Arnulf Grtibler, both from IIASA. Views or opinions expressed herein do not necessarily represent those of the International Institute for Applied Systems Analysis or of its national member organizations. Address reprint requests to Dr. Neboj~a Naki6enovi6, IIASA, Laxenburg, Austria. Technological Forecasting and Social Change 51, 1-17 (1996) © 1996 Elsevier Science Inc. 655 Avenue of the Americas, New York, NY 10010 0040-1625/96/$15.00 SSDI 0040-1625(95)00167-9

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Page 1: Decarbonization: Doing more with less

NORTH- HOLLAND

Decarbonization: Doing More with Less

N E B O J S A N A K I C E N O V I C

ABSTRACT

This article demonstrates that large decreases in energy requirements per unit economic output were achieved throughout the world and that carbon emissions have also decreased per unit energy. Energy is one of the most important factor inputs so that decreases in specific energy requirements contribute toward decreasing material intensity. Carbon dioxide emissions represent one of the largest single mass flows associated with human activities. Therefore, decarbonization contributes in a large way toward dematerializaton. At the global level decarbonization occurs at about 0.307o per year, and reduction of energy intensity of value added stands at 1 °70 per year, resulting in overall carbon intensity of value added reduction of about 1.3070 per year. The pervasiveness of decarbonization in the world, is illustrated for five representative countries. The case histories show that developing countries are undergoing basically the same process of decarbonization of final energy use as do most developed ones. However, carbon intensity of primary energy is increasing in some developing countries and should a reversal not occur in the forthcoming decades, it is likely the decarbonization in the industrialized countries could be offset by this tendency. Thus, the possibility cannot be entirely excluded that carbon dioxide emissions would increase faster than economic growth. These opposing tendencies could be bridged in the future if the energy system restructures toward larger reliance on natural gas, biomass, nuclear energy, and other zero-carbon options. For example, the methane economy could lead to a greater role for energy gases (and later hydrogen) in conjunction with electricity. Such an energy system would represent a gigantic step toward decarbonization and it would also be consistent with the emergence of new technologies that hold the promise of higher flexibility, productivity, and environmental compatibility.

Introduction Doing m o r e with less is a great ach ievement o f ad v an ced societies. L a b o r , capital ,

energy, o the r f ac to r inpu ts , and mater ia l r equ i r emen t s have decreased per uni t ou tpu t

and value a d d e d since the beg inn ing o f the indus t r ia l r evo lu t ion . These produc t iv i ty

increases are due to n u m e r o u s t echnolog ica l and o rgan iza t iona l i nnova t i ons and to an

e n o r m o u s a c c u m u l a t i o n o f knowledge . These ach ievement s are o f t en re fe r red to in the

l i tera ture as the autonomous rates of technological change. Since the indust r ia l revolu t ion the p r o d u c t i o n o f mater ia l and o f o the r goods and

services has o u t p a c e d p o p u l a t i o n g r o w t h in the wor ld , resul t ing in increas ing weal th and

DR NEBOJSA NAKIt~ENOVI(~ is Project Leader of the Environmentally Compatible Energy Strategies Project at the International Institute for Applied Systems Analysis, Laxenburg, Austria. Some results given in this article are based on the joint research of the author with the assistance of Gilbert Ahamer and Arnulf Grtibler, both from IIASA.

Views or opinions expressed herein do not necessarily represent those of the International Institute for Applied Systems Analysis or of its national member organizations.

Address reprint requests to Dr. Neboj~a Naki6enovi6, IIASA, Laxenburg, Austria.

Technological Forecasting and Social Change 51, 1-17 (1996) © 1996 Elsevier Science Inc. 655 Avenue of the Americas, New York, NY 10010

0040-1625/96/$15.00 SSDI 0040-1625(95)00167-9

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2 N. NAKICENOVI~

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Fig. 1. Annual working hours in five industrialized countries from 1960 to 1990, expressed in total working hours per year (hours spent on sick leave, strikes, and holidays are subtracted from the formal working time). Source: Maddison [5].

improved standards of living. The growth in output and economic development in general resulted in positive returns from increasing scales of human activities, sometimes referred

to as learning by doing. For example, learning curve analyses provide ample empirical evidence for decreasing costs per unit output propor t ional to every doubling of the accu- mulative output . There is also rich empirical evidence that materials consumption and labor requirements per unit output have decreased during the process of industrialization. In this article we demonstra te that large decreases in energy requirements per unit eco- nomic output were achieved throughout the world and fur thermore that carbon dioxide

emissions have also decreased per unit energy. At the same time, absolute world consump- tion levels o f energy and other resources have increased, part icularly vigorously in the more industrialized countries. This should not be confused, however, with the fact that energy and most of the other factor inputs have decreased per unit output .

D e c r e a s e s in L a b o r a n d Mater ia l R e q u i r e m e n t s

First, we show the tendency toward decreases in specific labor and material require- ments before demonstrat ing that the reduction of energy and carbon emissions per unit activity is a secular process taking place throughout the world. Figure 1 shows the annual number of working hours in a number of industrialized countries: That number has halved over the last 130 years. Japan is something of an exception, where the decrease was not so rapid, perhaps also partly explaining the present higher productivi ty of this

country. If we take into account that individual income and consumption have increased dramatical ly over the same period, then it becomes evident that the labor requirements per unit income and output have decreased even faster than the number of hours worked. Fur thermore , life expectancy has also increased during this period, so that the effective labor requirements for lifelong consumption have decreased from more than three- quarters of the lifetime to less than one-quarter .

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DECARBONIZATION: DOING MORE WITH LESS 3

Figure 2 shows similarly dramatic decreases in some material requirements per unit output in the United States that are representative for a number o f industrialized countries. However, it is not clear that dematerial izat ion is a universal process. As the requirements for some materials, such as steel, decreases, newer and more advanced materials replace them. For example, there is a growing need for petrochemicals and advanced material such as carbon fiber or silicon. Ironically, the so-called informat ion revolution has resulted in the growth of specific paper requirements. Such counterexamples demonstrate that dematerial izat ion is occurring in some sectors but not others and is thus not a perva- sive phenomenon.

In contrast , decreases in energy intensity of economic activities and decarbonizat ion are pervasive and an almost universal development. The analysis of these two pervasive tendencies can perhaps shed more light indirectly on the question of whether demateriali- zation is occurring as well. Energy is one of the most impor tant factor inputs and is embedded in most of materials, products , and services, so that decreases in specific energy requirements can also contr ibute toward decreasing material intensity. The carbon content of energy and, therefore, the subsequent carbon dioxide emissions, represents one of the largest single mass flows that can be associated with human activities. Current annual emissions are about 6 Gigatons (billion tons) of carbon or more than 20 Gigatons of carbon dioxide. In comparison, global steel product ion is on the order of 700 Megatons (million tons). Therefore, decarbonizat ion contributes in a large way toward demateriali- zation.

Trends in Decarbonization Decarbonizat ion can be expressed as a product of two factors: (1) specific carbon

emissions per unit energy; and (2) energy requirements per unit value added, often called energy intensity. Both of these factors are decreasing in the world but are being outpaced by the rate of economic growth, resulting in an overall global increase in energy consump- tion and carbon dioxide emissions.

In general, the instrumental determinants of future energy-related carbon dioxide emissions could be represented as multiplicative factors in the hypothetical equation that determines global emission levels. The Kaya identity establishes a relationship between populat ion growth, per capi ta value added, energy per value added, and carbon emissions per energy on one side o f the equation and total carbon dioxide emissions on the other [ 1 5 ] . 1 TWO of these factors are increasing and two are declining at the global level.

At present the world 's global populat ion is increasing at a rate of about 207o per year. The longer-term historical growth rates since 1800 have been about 1070 per year. Most of the populat ion project ions expect at least another doubling during the next century [12, 13]. Product ivi ty has been increasing in excess of global populat ion growth since the beginning of industr ial izat ion and thus has resulted in more economic activity and value added per capita. Energy intensity per unit value added has been decreasing at a rate of about 1 07o per year since the 1860s and at about 207o per year in most countries since the 1970s. Carbon dioxide emissions per unit of energy have also been decreasing but at a much lower rate of about 0.3°7o per year.

Figure 3 illustrates the extent of decarbonizat ion in terms of the rat io of average carbon dioxide enfissions per unit of pr imary energy consumed globally since 1860. The

CO: = (CO2/E) x (E/GDP) x (GDP/P) x P, where E represents energy consumption, GDP the gross domestic product or value added, and P population. Changes in carbon dioxide emissions can be described by changes in these four factors.

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4 N. NAKI~ENOVI(~

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DECARBONIZATION: DOING MORE WITH LESS

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1.1

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0.9

0.8

0.7

0.6

0.5

1850

I t I - I J I ] ~ [ I I ~ - - ~ I 1900 1950 2000

Fig. 3. Global decarbonization of energy from 1860 to 1980, expressed in tons of carbon per ton of oil equivalent (tC/toe).

ratio decreases because of the continuous replacement of fuels with high carbon contents, such as coal, by those with low carbon contents and most recently also nuclear energy.

Figure 4 shows the historical decrease in energy intensity per unit value added in a number of countries. Energy development paths in different countries have varied enormously and consistently over long periods, but the overall tendency is toward lower energy intensities. For example, France and Japan have always used energy more efficiently than the United States, the United Kingdom, or Germany. This should be contrasted with the opposite development in some of the rapidly industrializing countries, where commercial energy intensity is still increasing, such as in Nigeria. Commercial energy is replacing traditional energy forms, so that total energy intensity is diminishing while commercial energy intensity is increasing. The present energy intensity of Thailand resem- bles the situation in the United States in the late 1940s. The energy intensity of India and its present improvement rates are similar to those of the United States about a century ago.

Figure 5 shows the degrees of decarbonization and energy deintensification achieved in a number of countries since the 1870s. It illustrates salient differences in the policies and structures of energy systems among countries. For example, Japan and France have achieved the largest degrees of decarbonization; in Japan this has been achieved largely through energy efficiency improvements over recent decades and in France largely through vigorous substitution of fossil fuels by nuclear energy. Most countries have achieved decarbonization through the replacement of coal first by oil, and later by natural gas.

At the global levelthe long-term reduction in carbon intensity per unit value added has been about 1.3070 per year since the mid-1800s. Decarbonization of energy occurs at about 0.3°/o per year, and the reduction of energy intensity of value added stands at about 1070 per year, resulting in overall carbon intensity of value added reduction of about 1.3070 per year. This falls short by about 1.7070 of what is required to offset the effects of global economic growth, with rates of about 3070 per year. This means that the global carbon dioxide emissions have been increasing at about 1.7070 per year, implying a dou-

i

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Fig. 4. Primary energy intensity, including biomass, of value added from 1855 to 1990, expressed in kilogram of oil equivalent (kgoe) per constant GDP in 1980 U.S. dollars (primary electricity is accounted for by equivalence method).

bling before the 2030s. This in in fact quite close to emission levels projected in some of the global scenarios.

Case Histories We have selected five representative countries in order to analyze the decarbonizat ion

processes in greater detail: China, France, Japan, India, and the United States. Based on the joint research of the author , Arnu l f Griibler, and Gilbert Ahamer [9], decarboniza- tion for various parts of the energy systems in these countries will be shown. These countries are representative because they demonstra te the diversity of different develop- ment paths and life-styles. Some other reasons for choosing these five countries have already been indirectly given. For example, the United States has one o f the highest energy intensities of the industrialized countries and also the highest per capita energy consumption in the world. France and Japan, on the other hand, have among the lowest energy intensities in the world but for different reasons. Finally, China and India represent two rapidly developing countries where the replacement of t radi t ional energy by fossil energy is still not completed, resulting in very high energy and carbon intensities. Together, these countries account for 43.5o70 of global pr imary energy consumption and 41.4°70 for CO2 energy-rela ted carbon dioxide emissions.

We focus on the analysis of decarbonizat ion in order to determine more precisely the various causes and determinants for the decreasing carbon intensity o f energy. To do this, we disaggregate the energy system into its three ma jo r constituents: pr imary

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DECARBONIZATION: DOING MORE WITH LESS 7

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Decarbonization of energy (kg C/kgoe)

Fig. 5. Global decarbonization and deintensification of energy from 1870 to 1988 expressed in kilo- grams of carbon per kilogras of oil equivalent energy (kgC/kgoe) and in kilograms oil equivalent energy per $1000 per GDP in constant 1985 U.S. dollars. Source: Griibler [3].

energy requirements, energy conversion, and final energy consumption. As the structure of the energy system changes, so does the carbon intensity of these three constituent

parts. Final energy is directly consumed and therefore represents the actual energy require- ments of the economy and individual consumers. The rest of the energy system (primary energy and its conversion) are not really transparent to the consumers. Therefore, de- termining decarbonization as a ratio of total carbon emissions per unit primary energy removes the analysis from the actual point of consumption and the interaction between the energy system and the economy. The actual final energy forms demanded and consumed

represent a clearer demonstrat ion of carbon intensity at the point of consumption. For

example, it is pretty much irrelevant to the consumer how electricity is produced. Since it is carbon free it does not lead to any carbon emissions at the point of consumption. Carbon is emitted in converting primary energy forms into final electricity. To a lesser degree this is also the case with other forms of final energy, such as oil products. The specific carbon emissions per liter of diesel or gasoline are basically the same throughout

the world; however, the carbon emissions that result in converting different grades of crude oil into these two products vary substantially. Coal, on the other hand, is rarely consumed in its primary form and is mostly converted into electricity. In order to decouple the decarbonization rates that occur in the energy system from those that occur at the point of final energy consumption, we have made the following assumptions: (I) Carbon intensity of primary energy is defined as the ratio of total carbon content of primary

energy divided by total primary energy requirements (consumption) for a given country.

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8 N. NAKICENOVIC

!.1

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0.6

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 6. Carbon intensities of primary (solid squares), final (open squares), and conversion (solid line) energy from 1960 to 1991 for the United States, expressed in tons of carbon per ton of oil equivalent energy (tC/toe).

As such, this definition is identical to the one used to define the carbon intensity of pr imary energy in the world given in Figure 3. (2) Carbon intensity of final energy is defined as the carbon content of all final energy forms consumed divided by total final energy consumption. Various final energy forms that are delivered to the point of final consumption include solid fuels, such as biomass, coal, oil products , gas, chemical feed stocks, electricity, and heat. Electricity and heat do not contain any carbon. Thus it is evident on an a priori basis that the carbon intensity of final energy should generally be lower than the carbon intensity of pr imary energy. In addit ion, its rate of decrease should be slightly higher than that of pr imary energy decarbonizat ion because of the increasing share of electricity and other fuels with lower carbon content, such as natural gas, in the final energy mix. (3) Carbon intensity of energy conversion is defined as the difference between the preceding two types of intensities.

Generally, these categories represent the carbon emissions resulting f rom the energy system itself, whereas the carbon intensity of final energy represents the carbon emissions due to the actual energy required by the economy and individual consumers. Therefore, the former is a function of the specific energy situation in a given country and the latter is a function o f economic structure and consumer behavior. The difference between the two provides deeper insight into the carbon emissions that result f rom energy and economic interactions and those that are determined by the nature of pr imary energy supply, conver- sion, and distr ibution.

Figures 6 to 8 give the three carbon intensities for the five countries, respectively, from 1960 to 1991. Figures 9 and 10 focus on 1971 to 1991. The relationship among the three ratios for the United States and Japan in Figures 6 and 7 portrays the behavior one would anticipate on an a priori basis: Final carbon intensity is lower than the primary one, and conversion intensity is the highest. Reduction of final carbon intensity is slightly higher in Japan, with about 0.8% per year compared to about 0.5O/o in the United States. The difference in the conversion carbon intensities are much more dramatic . In both cases these ratios change more erratically compared to the relatively smooth improvements

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DECARBONIZATION: DOING MORE WITH LESS

1.1

~ ' 0.9

C9 0.8

0.7

0.6

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 7. Carbon intensities of primary (solid squares), final (open squares), and conversion (solid line) energy from 1960 to 1991 for Japan, expressed in tons of carbon per ton of oil equivalent energy (tC/toe).

in pr imary and final intensities. In Japan especially, the improvement rates since 1965 have been vigorous, outpacing the reduction rates o f final intensity. As can be seen from Figure 7, the reduction o f carbon intensity in Japan is due to high energy efficiency improvements and, to a lesser degree, to the replacement of carbon-intensive energy forms. Efficiency improvements in the energy system imply that less pr imary energy is consumed per unit final energy and, therefore, lower conversion losses result in lower carbon emissions.

Figure 8 illustrates the opposite case for France. Here, the rapid introduct ion of nuclear energy since the mid-1970s has led to higher rates of decarbonizat ion of pr imary energy and conversion than that of final energy. This illustrates a fundamental ly different strategy to achieve low carbon emissions. Basically it is decoupled from the consumer and is completely internal to the energy system. The French nuclear development path really meant that the increasing share o f electricity is produced without carbon emissions, therefore lowering the overall carbon intensity of conversion. On the other hand, the relatively smooth improvement in final carbon intensity is very similar to that observed in Japan and the United States.

Figures 9 and 10 show quite different situations in China and India. First, it is important to note that the changes in the three ratios are very similar in these two rapidly developing economies, al though one has a planned economy and the other a market one. They also have very many social and cultural differences. In both countries carbon inten- sity in pr imary energy is basically s tat ionary and shows only marginal signs of improve- ment. The carbon intensity of final energy, on the other hand, is improving at rates comparable to those observed in industrialized countries. In China the reduction of final energy carbon intensity is close to 0.5% per year, and in India it stands at the impressive rate 1.1% per year. In the latter case the rapid decarbonizat ion of final energy is due to the replacement of t radi t ional fuels by commercial energy forms. For example, the unsustainable use of biomass is more carbon intensive than kerosene and bott led gas. The difference in carbon intensity of lighting between electricity (especially if efficient light bulbs are used) compared to t radi t ional practices is even more pronounced. In any

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10 N. NAKI(~ENOVI~

1.1

I

0.9

0.8

G) 0.7 0

0.6 0

0.5

0.4

0.3

0.2

0.1

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 8. Carbon intensities of primary (solid squares), final (open squares), and conversion (solidline) energy from 1960 to 1991 for France, expressed in tons of carbon per ton of oil equivalent energy (tC/toe).

case the developing economies are undergoing basically the same process of decarbonizing

final energy use as do the most developed ones. This indicates congruence in consumer

behavior as expressed in the structure o f final energy used at different income and develop-

ment levels. Decarbonization is, therefore, a pervasive phenomenon.

In the industrialized countries, decarbonization of final energy consumption has

been accompanied by appropriate structural changes in the energy system. This led to improvements in decarbonization in the energy system itself as demonstrated in lower

carbon intensity of conversion. Subsequently, the decarbonization of primary energy

intensity could also be achieved. In contrast, China and India have not undergone this

1.3

1.2

1.1

0 i

0 0.9

0.8

0.7

0.6

f

- T •

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/

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1970 1975 1980 1985 1990 1995

Fig. 9. Carbon intensities of primary (solid squares), final (open squares), and conversion (solid line) energy from 1971 to 1991 for China, expressed in tons of carbon per ton of oil equivalent energy (tC/toe).

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DECARBONIZATION: DOING MORE WITH LESS 11

1.2

I

0.8

0 --.. 0.6 0

0.4

0.2

0

m

:==8

1970 1975 1980 1985 1990 1995

Fig. 10. Carbon intensities of primary (solid squares), final (open squares), and conversion (solid line) energy from 1971 to 1991 for India, expressed in tons of carbon per ton of oil equivalent energy (tC/toe).

transition. Their energy systems depend heavily on coal, which is a very carbon-intensive source of energy. In industrialized countries, coal has been largely replaced by less carbon- intensive sources, especially in electricity production. As a consequence, the carbon inten- sity of conversion is increasing rapidly in both China and India. Should a transition to lower carbon intensity not occur in the forthcoming decades, it is quite likely that the relative reductions in specific carbon emissions in the industrialized countries will be offset by this trend. This will naturally hamper efforts to halt the increase in global carbon emissions.

Figures 11, 12, and 13 compare the three ratios for the five countries. The congruence in the gradual reduction of final energy carbon intensity is illustrated in Figure 11. The development is convergent in the three industrialized countries and is accompanied by more rapid changes in the developing countries, especially in India, which has much higher absolute intensity levels. This means that the gap between the developed and developing countries is gradually narrowing. Final energy consumption is proceeding along a similar development path in all five countries. The share of electricity in final energy is increasing throughout the world. The average mix of other fuels consumed has a decreasing carbon content, that is, increasing shares of natural gas and of oil products with a higher hydrogen content. In other words, the hydrogen-to-carbon ratio of average fuel consumed is increasing globally. These two factors, namely, the increasing hydrogen content of fuels and the increasing share of electricity result in the steady improvement in the final energy carbon intensity shown in Figure 11.

The carbon intensities of conversion give a completely different picture in Figure 12. The diversity in the development and structural changes of the energy systems in these five countries is apparent. In the developing countries carbon intensity is increasing, whereas in the industrialized countries it is decreasing at various rates, most rapidly in France due to the vigorous introduction of nuclear energy. This heterogeneity indicates not only the richness in different types of energy systems in the world but also different future development strategies. Should China and India continue to rely heavily on coal

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12 N. NAKICENOVIC

!.1

I

0.9

(I) 0.8

0.7 "4-"

0.6

0.5

0.4

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 11. Carbon intensity of final energy for China (open diamonds), France (open squares), India (solid triangles), Japan (solid diamonds), and the United States (solid squares) from 1960 to 1991, expressed in tons of carbon per ton of oil equivalent final energy (tC/toe).

as the p r i m a r y energy sou rce o f p re fe rence , t hen it m i g h t no t be poss ible to c o n t i n u e to

i m p r o v e the c a r b o n in tens i ty o f final energy in these coun t r i e s . Th i s m e a n s t h a t s o m e t i m e

in the next c e n t u r y a t r e n d reversal cou ld be expec ted , e i ther in the c a r b o n in tens i ty o f

final energy or p r i m a r y ene rgy or b o t h . T he on ly b r idge b e t w e e n these o p p o s i n g t r ends

cou ld be even h igher shares o f electr ici ty. T he o t h e r a l t e rna t ive for the f u t u r e is t h a t

1.4

1.2

O) 0.8

\ 0.6

0.4 ~ ...o

0.2

0

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 12. Carbon intensity of energy conversion for China (open diamonds), France (open squares), India (solid triangles), Japan (solid diamonds), and the United States (solid squares) from 1960 to 1991, expressed in tons of carbon per ton of oil equivalent converted energy (tC/toe).

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DECARBONIZATION: DOING MORE WITH LESS 13

1.1

I

0.9

•__ 0.7

0.6

0.5

0.4

1960 1965 1970 1975 1980 1985 1990 1995

Fig. 13. Carbon intensity of primary energy for China (open diamonds), France (open squares), India (solid triangles), Japan (solid diamonds), and the United States (solid squares) from 1960 to 1991, expressed in tons of carbon per ton of oil equivalent primary energy (tC/toe).

the energy system restructures toward natural gas, nuclear energy, biomass, and other zero-carbon options. This would bring the energy system of these two developing countries in line with those of the more industrialized ones. At the same t ime such structural changes would allow for continued improvements in the carbon intensity o f final energy consistent with the reduction of specific requirements of other factor inputs and materials throughout the world economy.

Figure 13 shows that , for the time being, the carbon intensity of pr imary energy is still developing in the same direction in all of these countries. However, as mentioned, without the proposed structural changes in the energy systems toward carbon-free and hydrogen-rich sources of pr imary energy, trend reversals cannot be excluded in the future. This figure also illustrates the large impacts in achieving decarbonizat ion by introducing zero-carbon sources of energy as il lustrated by the growing share of nuclear power in France.

T o w a r d F u r t h e r D e c a r b o n i z a t i o n

There is a possible way to reconcile the increasing needs for electricity and hydrogen- rich forms o f final energy with the relatively slow and often opposing changes in the structure of energy systems and pr imary energy supply. This can be best illustrated by the historical replacement of coal by oil and later by natural gas at the global level. Pr imary energy substi tution [1, 2, 4, 7, 8] suggests the l ikelihood that natural gas and later carbon-free energy forms will become major sources of energy globally during the next century.

Figure 14 shows the competit ive struggle between the five main sources of pr imary energy as a dynamic and quite regular process that can be described by relatively simple rules. The substi tution process clearly indicates the dominance o f coal as the major energy source between the 1880s and the 1960s after a long period during which fuelwood (and other t radi t ional energy sources) were in the lead. The massive expansion of railroads,

Page 14: Decarbonization: Doing more with less

14 N. NAKI(~ENOVIt~

f / ( l - f ) f r ac t i on (f)

2 10 O.E~

I0 0.90

wood ~ _ coal

I0 0 "~~'~f ~ ..... ,--Y ~

18S0 i tO 0 1950 2000 2050

0.20

0.50

0.30

0.I0

Fig. 14. Global primary energy substitution from 1960 to 1982 and projections for the future, ex- pressed in fractional market shares (FL Smooth lines represent model calculations, and jagged lines are historical data. Solfus is a term employed to describe a major new energy technology, for example, solar or fusion. Source: Griibler and Naki~enovi~ [4]; Naki~enovi~ [8].

the growth of steel, steamships, and many other sectors are associated with and based on technological opportunities offered by the mature coal economy. After the 1960s oil assumed a dominant role simultaneously with the maturing of the automotive, petrochem- ical, and other industries. The current reliance on coal in many developing countries illustrates the gap between the structure of primary energy supply and actual final en- ergy needs.

Figure 14 projects natural gas as the dominant source of energy during the first decades of the next century, although oil still maintains the second largest share until

the 2040s. For such an explorative look into the future, additional assumptions are required

to describe the future competition of potential new energy sources, such as nuclear, solar, and other renewables that have not yet captured sufficient market shares to allow an estimation of their penetration rates. In the future we assume that nuclear energy will diffuse at comparable rates as oil and natural gas half a century earlier. Such a scenario would require a new generation of nuclear installations; today such prospects are at best questionable. This leaves natural gas with the lion's share of primary energy over the next 50 years. In the past new sources of energy have emerged, from time to time coinciding with the saturation and subsequent decline of the dominant competitor. Solfus is a term employed to describe a major new energy technology, for example, solar or fusion, that could emerge during the 2040s at the time when natural gas is expected to saturate.

This analysis of primary energy substitution and market penetration suggests that natural gas will become the dominant energy source and remain so for half a century,

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DECARBONIZATION: DOING MORE WITH LESS

f/(1 - f) = H/C

10 2

Frac t ion f = H/ (C + H)

0 .99

101 _

10 0 _

10-I _

World

Nonfossil

H/C = 4

1 0 - 2 I 1 1

1800 1900 2000 2100

- 0.90

0.50

-0 .10

0.01

15

Fig. 15. Hydrogen-to-carbon ratio of global primary energy from 1860 to 1982 and projections for the future, expressed in fractional shares of hydrogen and carbon in average primary energy consumed (H/C) . Source: Marchetti [6].

perhaps to be replaced by carbon-free energy sources, such as nuclear, solar, or fusion. Thus, primary energy substitution implies a gradual continuation of energy decarboniza-

tion in the world. The methane economy could provide a bridge toward a carbon-flee future.

Figure 15 shows the resulting changes in the hydrogen-to-carbon ratio from global primary energy substitution. Fuelwood has the highest carbon content, with about one hydrogen per 10 carbon atoms. If consumed unsustainably, as was the case in the past

and still is in most developing countries, fuelwood has higher carbon emissions than all the

fossil energy forms. From the fossil energy sources coal has the lowest hydrogen-to-carbon atomic ratio of roughly one to one. Oil has on average two hydrogen atoms per one carbon atom, and natural gas or methane, four. These factors are used in Figure 15 to determine the hydrogen-to-carbon ratio of global energy. The ratio can be expected to increase as projected in Figure 15 to the asymptotic level of four hydrogen atoms to one carbon atom if natural gas becomes the dominant form of energy. Further improvements

would have to be achieved by the introduction of non fossil energy sources, such as nuclear, solar, fusion, and sustainable use of biomass and other renewables. The methane economy offers a bridge to this nonfossil energy future consistent with both the dynamics of primary energy substitution and steadily increasing carbon intensity of final energy. As nonfossil

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16 N. NAKIt~ENOVI(2

40

"E (D

Z.

35

30

25

20

15

I0

J

J I _ _ L I

1900 1910 1920

A/ / /

/

1930

i , I ~ l L _ _ 1940 1950 1960 1970 1980 1990

Fig, 16. Share of world primary energy going to electricity. Source: Schilling and Hildebrandt [10l; UN [111.

energy sources are introduced in the pr imary energy mix, new energy conversion systems would be required to provide other zero-carbon energy carriers in addit ion to growing shares of electricity. As suggested in Figure 15, an ideal candidate is hydrogen. Thus, the methane economy would lead to a greater role for energy gases and later hydrogen in conjunct ion with electricity. Hydrogen and electricity could provide virtually pollution- free and environmental ly benign energy carriers.

Figure 16 shows the increase in the share of electricity in the world that is complemen- tary to the increase of the hydrogen- to-carbon rat io of pr imary energy. To the extent that both hydrogen and electricity might be produced from methane, the separated carbon could be contained and subsequently stored within the energy sector, e.g., in the depleted oil and gas fields. As the methane contr ibut ion to global energy saturates and subsequently declines, carbon-free sources of energy would take over and eliminate the need for carbon handling and storage. This would also conclude the decarbonizat ion process in the world.

C o n c l u s i o n

The energy system of the distant future that would rely on electricity and hydrogen as two complementary energy carriers and final energy forms would represent a gigantic step toward dematerial izat ion. Electrons have an extremely low mass, and hydrogen has the lowest mass of all a toms, consisting only of a proton and an electron. This transit ion would radically reduce the total mass flow associated with energy activities and, more impor tant , the resulting emissions. Electricity is emission free, and appropr ia te hydrogen combust ion results in water. Decarbonizat ion would not only contr ibute toward demateri- alization, but also it is consistent with the emergence of new technologies that hold the

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DECARBONIZATION: DOING MORE WITH LESS 17

promise of higher flexibility, productivity, and environmental compatibility. Microelec- tronics, bio- and nanotechnologies, virtual reality, and information and communication systems are all more compatible with a hydrogen-electricity economy than with any other.

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Time and Time Budgets. 2. Ausubel, J. H., Griibler, A., and Nakidenovi~, N., Carbon Dioxide Emissions in a Methane Economy,

Climatic Change 12:245-263 (1988). 3. Griibler, A., Energy in the 21 st Century: From Resource to Environmental and Lifestyle Constraints, Entropie

164/165:29-33 (1991). 4. Gri~bler, A., and Naki~enovi~, N., The Dynamic Evolution of Methane Technologies, in The Methane Age.

T. H. Lee, H. R. Linden, D. A. Dreyfus, and T. Vasko, eds., Kluwer, Dordrecht, The Netherlands, 1988. 5. Maddison, A., Dynamics Forces in Capitalist Development. A Long-Run Comparative View, Oxford Univer-

sity Press, New York, 1991. 6. Marchetti, C., When WiHHydrogen Come?, WP-82-123, International Institute for Applied Systems Analy-

sis, Laxenburg, Austria (1982). 7. Marchetti, C., and Naki~enovi~, N., The Dynamics of Energy Systems and the Logistic Substitution Model,

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Ayres, and L. Fontvielle, eds., Springer-Verlag, Berlin, 1990. 9. Naki6enovi~, N., Griibler, A., and Ahamer, G., Decarbonization of the World, Representative Countries

and Regions, International Institute for Applied Systems Analysis, Laxenburg, Austria (1993). 10. Schilling, H.-D., and Hildebrandt, R., Primary Energy: Electric Energy, Rohstoffwirtschaft International

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2150, United Nations, New York, 1992b. 13. Vu, M. T., World Population Projection, Johns Hopkins University Press, Baltimore, 1985. 14. Williams, R. H., Larson, E. D., and Ross, M. H., Materials Affluence and Industrial Energy Use, Annual

Review of Energy, 12:99-144 (1987). 15. Yamaji, K., Matsuhashi, R., Nagata, Y., and Kaya, Y., An Integrated Systems for CO2/Energy/GNP

Analysis: Case Studies on Economic Measures for CO2 Reduction in Japan, Paper presented at the Workshop on CO2 Reduction and Removal: Measures for the Next Century, International Institute for Applied Systems Analysis, Laxenburg, Austria, 19-21 March 1991.

Received May 31, 1995