Ernst Worrell

Energy and carbon embodied in the international trade of Brazil: an input–output approach

Abstract All goods and services produced in an economy are directly and/or indirectly associated with energy use and, according to the type of fuel utilized, with CO2 emissions as well. International trade is an important factor in shaping the industrial structure of a country and, consequently, in affecting a countrys energy use and CO2 emissions. This study applies input–output techniques to the Brazilian economy to evaluate the total impacts of international trade on its energy use and CO2 emissions. A commodity-by-industry IO model in hybrid units (energy commodities in physical units and non-energy commodities in monetary units) is applied to the Brazilian economy in 1995. Results show that total energy embodied in the exports of non-energy goods of Brazil equals 831 PJ, while total carbon embodied is 13.5 MtC. These amounts are larger than the relevant amounts embodied in the imports of non-energy goods, respectively 679 PJ and 9.9 MtC. These figures are better understood by contrasting them with the total energy use and the corresponding total carbon emissions of the Brazilian economy in 1995 estimated by this work: 6781 PJ and 99.4 MtC, respectively. This means that international inflows and outflows of energy embodied in non-energy goods are in the order of 10 and 12% of the total energy use, while inflows and outflows of carbon embodied in non-energy goods are approximately 10 and 14% of the corresponding total carbon emissions of the Brazilian economy in 1995. The general picture is that Brazil is not only a net exporter of energy (153 PJ) and of carbon (3.6 MtC) embodied in the non-energy goods internationally traded by the country in 1995, but also that each dollar earned with exports embodied 40% more energy and 56% more carbon than each dollar spent on imports. These findings suggest that Brazilian policy-makers should be concerned about the extra impacts international trade policy may have on energy use and carbon emissions of the country.

Energy efficiency and carbon dioxide emissions reduction opportunities in the US iron and steel sector

This article presents an in-depth analysis of cost-effective energy efficiency and carbon dioxide emissions reduction opportunities in the US iron and steel industry. We show that physical energy intensity for iron and steelmaking (at the aggregate level, standard Industrial Classification 331, 332) dropped 27%, from 35.6 GJ/tonne to 25.9 GJ/tonne between 1958 and 1994, while carbon dioxide intensity (carbon dioxide emissions expressed in tonnes of carbon per tonne of steel) dropped 39%. We provide a baseline for 1994 energy use and carbon dioxide emissions from US blast furnaces and steel mills (SIC 3312) disaggregated by the processes used in steelmaking. Energy-efficient practices and technologies are identified and analyzed for each of these processes. Examination of 47 specific energy efficiency technologies and measures found a total cost-effective reduction potential of 3.8 GJ/t, having a payback period of three years or less. This is equivalent to a potential energy efficiency improvement of 18% of 1994 US iron and steel energy use and is roughly equivalent to 19% reduction of 1994 US iron and steel carbon dioxide emissions. The measures have been ranked in a bottom-up energy conservation supply-curve.

Productivity benefits of industrial energy efficiency measures

We review the relationship between energy efficiency improvement measures and productivity in industry. We review over 70 industrial case studies from widely available published databases, followed by an analysis of the representation of productivity benefits in energy modeling. We propose a method to include productivity benefits in the economic assessment of the potential for energy efficiency improvement. The case-study review suggests that energy efficiency investments can provide a significant boost to overall productivity within industry. If this relationship holds, the description of energy-efficient technologies as opportunities for larger productivity improvements has significant implications for conventional economic assessments. The paper explores the implications this change in perspective on the evaluation of energy-efficient technologies for a study of the iron and steel industry in the US. This examination shows that including productivity benefits explicitly in the modeling parameters would double the cost-effective potential for energy efficiency improvement, compared to an analysis excluding those benefits. We provide suggestions for future research in this important area.

Energy intensity in the iron and steel industry: a comparison of physical and economic indicators

Abstract Energy consumption of the iron and steel industry is examined in seven countries (Brazil, China, France, Germany, Japan, Poland and the United States) for the period 1980–1991. Using a decomposition analysis based on physical indicators for process type and product mix, we decompose intra-sectoral structural changes and efficiency improvements. Specific energy consumption decreased in all countries except Poland. Efficiency improvement played a key role in Brazil, China, Germany and the US, while structural changes were the main driver for energy savings in France and Japan. We also compare the use of various economic indicators to physical indicators and find that they do not track physical developments well in Poland or the developing countries we studied. In the industrialized countries, value added based energy intensity indicators generally reflect the specific energy consumption better than other economic indicators, although large differences occur in individual years. We found a smaller correlation between other economic indicators (gross output and value of shipments) and specific energy consumption. We conclude that use of physical energy intensity indicators improves comparability between countries, provides greater information for policy-makers regarding intra-sectoral structural changes, and provides detailed explanations for observed changes in energy intensity.

Potentials for energy efficiency improvement in the US cement industry

This paper reports on an in-depth analysis of the US cement industry, identifying cost-effective energy efficiency measures and potentials. Between 1970 and 1997, primary physical energy intensity for cement production (SIC 324) dropped 30%, from 7.9 GJ/t to 5.6 GJ/t, while specific carbon dioxide emissions due to fuel consumption and clinker calcination dropped 17%, from 0.29 tC/tonne to 0.24 tC/tonne. We examined 30 energy-efficient technologies and measures and estimated energy savings, carbon dioxide savings, investment costs, and operation and maintenance costs for each of the measures. We constructed an energy conservation supply curve for the US cement industry which found a total cost-effective energy saving of 11% of 1994 energy use for cement making and a saving of 5% of total 1994 carbon dioxide emissions. Assuming the increased production of blended cement, the technical potential for energy efficiency improvement would not change considerably. However, the cost-effective potential would increase to 18% of total energy use, and carbon dioxide emissions would be reduced by 16%. This demonstrates that the use of blended cements is a key cost-effective strategy for energy efficiency improvement and carbon dioxide emission reductions in the US cement industry.

International comparison of CO2 emission trends in the iron and steel industry

Abstract In this paper, we present an in-depth decomposition analysis of trends in CO 2 emissions in the iron and steel industry using physical indicators. Physical indicators allow a detailed analysis of intra-sectoral trends, in contrast to the mostly used monetary indicators. Detailed decomposition analysis makes it possible to link developments in energy intensity to technology change and (indirectly) to policy. We present an analysis for the iron and steel industry in seven countries, i.e. Brazil, China, India (developing countries), Mexico and South Korea (newly industrialized countries) and the United States (industrialized country). We found substantial differences in energy efficiency among these countries. In most countries the increased (or decreased) production was the main contributor to changes in CO 2 emissions, while energy-efficiency was the main factor reducing emission intensities of steel production in almost all countries. Changes in power generation contributed to a reduction of specific emissions in the case of South Korea only.

Energy use and carbon dioxide emissions from steel production in China

In 1996, China manufactured just over 100Mt of steel and became the worlds largest steel producer. Official Chinese energy consumption statistics for the steel industry include activities not directly associated with the production of steel, ‘double-count’ some coal-based energy consumption, and do not cover the entire Chinese steelmaking industry. In this paper, we make adjustements to the reported statistical data in order to provide energy use values for steel production in China that are comparable to statistics used internationally. We find that for 1996, official statistics need to be reduced by 1365PJ to account for non-steel production activities and double-counting. Official statistics also need to be increased by 415PJ in order to include steelmaking energy use of small plants not included in official statistics. This leads to an overall reduction of 950PJ for steelmaking in China in 1996. Thus, the official final energy use value of 4018PJ drops to 3067PJ. In primary energy terms, the official primary energy use value of 4555PJ is reduced to 3582PJ when these adjustments are made.

Opportunities to improve energy efficiency and reduce greenhouse gas emissions in the U.S. pulp and paper industry

LBNL-46141 E RNEST O RLANDO L AWRENCE B ERKELEY N ATIONAL L ABORATORY Opportunities to Improve Energy Efficiency and Reduce Greenhouse Gas Emissions in the U.S. Pulp and Paper Industry N. Martin, N. Anglani, D. Einstein, M. Khrushch, E. Worrell, and L.K. Price Environmental Energy Technologies Division July 2000 This work was supported by the Climate Protection Division, Office of Air and Radiation, U.S. Environmental Protection Agency through the U.S. Department of Energy under Contract No. DE-AC03-76SF00098.

International comparisons of energy efficiency-Methodologies for the manufacturing industry

Abstract In the past, many studies on energy efficiency levels were not comparable due to differences in economic structure between countries. In the project ‘International Comparisons of Energy Efficiency’ efforts are undertaken to develop methods that do account for such differences. In this paper, we identify structural differences in energy intensive industries and describe ways to incorporate these differences in international comparisons of energy efficiency. For the iron and steel, aluminium, cement, pulp and paper, ammonia, chlorine and alkali, and petrochemicals sectors, structural differences mainly arise in product (quality) mix and import/export streams. In addition to structural indicators, also non-structural, explanatory indicators are identified, such as the penetration of energy efficient equipment and Combined Heat and Power generation. Feedstock mix and process type can either be structural or explanatory indicators, depending on whether or not product mix is affected. A number of issues regarding data quality and other pitfalls are described, mainly related to aggregation level and system boundaries between different industry sectors, and between the industry and energy transformation sectors. The methodologies developed show that structural differences can be taken into account in cross-country comparisons of energy efficiency if appropriate physical energy efficiency indicators are used.

Technology transfer of energy efficient technologies in industry: a review of trends and policy issues

Abstract In 1995, industry accounted for 41% of global energy use. Although the efficiency of industrial processes has increased greatly during the past decades, energy efficiency improvements remain the major opportunity to reduce CO 2 emissions. Industrialisation may affect the environment adversely, stressing the need for transfer of cleaner technologies to developing countries. A review of trends, barriers and opportunities for technology transfer is presented. Technology transfer is a process involving assessment, agreement, implementation, evaluation and adaptation, and repetition. Institutional barriers and policies influence the transaction process, as well as the efficiency of the transfer process, in particular in the adaptation and repetition stages of the technology transfer process. Investments in industrial technology are dominated by the private sector. In industry, energy efficiency is often the result of investments in modern equipment, stressing the importance and need for environmentally sound and long-term investment policies. The interactive and dynamic character of technology transfer stresses the need for innovative and flexible approaches, through partnerships between various stakeholders. Adaptation of technology to local conditions is essential, but practices vary widely. Countries that spend on average more on adaptation, seem to be more successful in technology transfer, hence successful technology transfer depends on transfer of technological capabilities.