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Abstract This paper presents a new approach to incorporate climate damages in the BAU emissions baselines. The shared socio-economic pathways framework is used to inform country-level changes in the mean surface temperature for the climate projections associated with each scenario. The temperature changes are used to calculate the economic damages using empirical estimates of climate effects on GDP growth. Finally, an energy system model is used under the original socio-economic assumptions and the climate-damaged assumptions, illustrating the indirect effect of climate change in a country-level energy system. Mexico was chosen to exemplify this method. The results show a reduction of energy access and a slow down of technological transition in the energy sector under climate-damaged projections. It is concluded that greenhouse gas mitigation goals should be re-calibrated under cost-benefit analysis that takes into account the damages associated with future climates consistent with the baseline. Thus, the nationally determined contributions that state the emission goals of many countries could be closer to limit the temperature to 1.5 Celsius above pre-industrial levels. Highlights • Climate change impacts on energy systems are assessed via climatically-damaged GDP. • New business as usual scenarios are computed accounting for its associated climates. • Under new BAU, energy production and society's welfare decreases. • Greenhouse gases mitigation goals should be re-calibrated under new BAU. • The recalibration could enable accomplishment of Paris Agreement. [ABSTRACT FROM AUTHOR]

This paper examines the social costs and benefits of potential configurations of electric vehicle deployment, including and excluding vehicle-to-grid. To fully explore the benefits and costs of different electric vehicle pathways, four different scenarios are devised with both today's and 2030 electricity grid in Denmark. These scenarios combine different levels of electric vehicle implementation and communication ability, i.e. smart charging or full bi-directionality, and then paired with different levels of future renewable energy implementation. Then, the societal costs of all scenarios are calculated, including carbon and health externalities to find the least-cost mix of electric vehicles for society. The most cost-effective penetration of electric vehicles in the near future is found to be 27%, increasing to 75% by 2030. This would equate to a $34 billion reduction to societal costs in 2030, a decrease of 30% compared to business as usual. This represents a projected annual savings per vehicle of $1200 in 2030. However, current vehicle capital cost differences, a lack of willingness to pay for electric vehicles, and consumer discount rates are substantial barriers to electric vehicle deployment in Denmark in the near term. [ABSTRACT FROM AUTHOR]

Local climate action is not only a domain of large cities, but also smaller urban areas that increasingly address climate change mitigation in their policy. The Danish municipality of Helsingør can achieve a substantial CO 2 emissions reduction by transforming its heat supply and deploying heat savings. In this paper, we model the heating system of Helsingør, assess it from a simple socio- and private-economic perspective, develop future scenarios, and conduct an iterative process to derive a cost-optimal mix between district heating, individual heating and heat savings. The results show that in 2030 it is cost-optimal to reduce the heating demand by 20–39% by implementing heat savings, to deploy 32%–41% of district heating and to reduce heating-related CO 2 emissions by up to 95% in comparison to current emissions. In 2050, the cost-optimal share of district heating in Helsingør increases to between 38 and 44%. The resulting average heating costs and CO 2 emissions are found to be sensitive to biomass and electricity price. Although the findings of the study are mainly applicable for Helsingør, the combined use of the Least Cost Tool and modelling with energyPRO is useful in planning of heating and/or cooling supply for different demand configurations, geographical region and scale. [ABSTRACT FROM AUTHOR]

The danger of climate change has over the years become a reality in the public domain. While efforts to mitigate climate change involve energy mix, energy efficiency and cleaner technology, financial development has also been considered as an important factor. Indicator of financial development may draw FDI and advanced degree of research and development which can accelerate economic growth and hence affect dynamism of environmental performance. This study examines the impacts of energy use and financial development indicators by source in the environment-growth-energy model for 90 countries categorized on the basis of income possession over the period 1980–2014. The study applies the panel analysis that accounts for cross-sectional dependence and heterogeneity of series used in the estimation. Results from panel Dynamic Ordinary Least Squares (DOLS) show that in all the categories of countries, fossil fuel energy use and GDP per capita are found to be the major drivers of CO 2 emissions though fossil fuel energy use possesses the bigger elasticities. Population however, displays a sign contrary to expectation regarding economic theory in high income countries. Renewable energy and financial development on the other hand are capable of reducing CO 2 emissions. However, the magnitude of the long-run elasticity of CO 2 emissions with respect to renewable energy use and financial development are much greater in the models with M 2 /GDP than the model with M 2 /Reserve especially in the high income countries. Policies should be geared towards stimulating investments in renewable energy technology. There is need to develop robust financial systems to lend financial credence to research institutes to work towards producing energy that have less carbon or are carbon-free. [ABSTRACT FROM AUTHOR]

Stringent long-term climate targets necessitate a limit on cumulative emissions in this century for which sufficient policy signals are lacking. Using nine energy-economy models, we explore how policies pursued during the next two decades impact long-term transformation pathways towards stringent long-term climate targets. Less stringent near-term policies (i.e., those with larger emissions) consume more of the long-term cumulative emissions budget in the 2010–2030 period, which increases the likelihood of overshooting the budget and the urgency of reducing GHG emissions after 2030. Furthermore, the larger near-term GHG emissions associated with less stringent policies are generated primarily by additional coal-based electricity generation. Therefore, to be successful in meeting the long-term target despite near-term emissions reductions that are weaker than those implied by cost-optimal mitigation pathways, models must prematurely retire significant coal capacity while rapidly ramping up low-carbon technologies between 2030 and 2050 and remove large quantities of CO 2 from the atmosphere in the latter half of the century. While increased energy efficiency lowers mitigation costs considerably, even with weak near-term policies, it does not substantially reduce the short-term reliance on coal electricity. However, increased energy efficiency does allow the energy system more flexibility in mitigating emissions and, thus, facilitates the post-2030 transition. [ABSTRACT FROM AUTHOR]

Abstract: As forecasted by the International Energy Agency Energy Technology Perspectives baseline scenario, the largest increment in LDV (light-duty vehicles) stock, travel demand and transport sector energy consumption will take place in the developing world. In the developing countries where the import of used vehicles is allowed, a considerable portion of the LDV stock increment will be realized with used vehicles. In this paper, the analytical framework for assessment of climate change mitigation potential of transport sector in developing countries is adapted in order to incorporate the expected vehicle fleet increase with used vehicles. The evaluation of appropriate mitigation strategies is performed using the GHG Costing Model (GACMO), which compares each mitigation option with the BAU (business-as-usual) option and determines its environmental effectiveness (t CO2 reduced) and economic effectiveness (US$/t CO2 reduced). The adapted analytical framework is applied on the case of transport sector of Macedonia, evaluating appropriate options inline with five mitigation strategies: improvement of vehicle fleet, introduction of low carbon fuels, improvement of travel behaviour, advancement of vehicle equipment and improvement of driver behaviour. The resulting marginal cost curve for the year 2020 indicates a total achievable reduction of 22% with respect to BAU GHG transport sector emissions, with bulk of it at relatively high specific costs of around 90 US$/t CO2. [Copyright &y& Elsevier]