Physics Commons^™

Global Fossil Energy Markets And Climate Change Mitigation: An Analysis With Remind, Nico Bauer, Ioanna Mouratiadou, Gunnar Luderer, Lavinia Baumstark, Robert J. Brecha, Ottmar Edenhofer, Elmar Kriegler

Physics Faculty Publications

We analyze the dynamics of global fossil resource markets under different assumptions for the supply of fossil fuel resources, development pathways for energy demand, and climate policy settings. Resource markets, in particular the oil market, are characterized by a large discrepancy between costs of resource extraction and commodity prices on international markets. We explain this observation in terms of (a) the intertemporal scarcity rent, (b) regional price differentials arising from trade and transport costs, (c) heterogeneity and inertia in the extraction sector. These effects are captured by the REMIND model. We use the model to explore economic effects of changes …

The Carbon Rent Economics Of Climate Policy, Matthias Kalkuhl, Robert J. Brecha

Physics Faculty Publications

By reducing the demand for fossil fuels, climate policy can reduce scarcity rents for fossil resource owners. As mitigation policies ultimately aim to limit emissions, a new scarcity for “space” in the atmosphere to deposit emissions is created. The associated scarcity rent, or climate rent (that is, for example, directly visible in permit prices under an emission trading scheme) can be higher or lower than the original fossil resource rent. In this paper, we analyze analytically and numerically the impact of mitigation targets, resource availability, backstop costs, discount rates and demand parameters on fossil resource rents and the climate rent. …

Development Without Energy? Assessing Future Scenarios Of Energy Consumption In Developing Countries, Jan Christof Steckel, Robert J. Brecha, Michael Jakob, Jessica Strefler, Gunnar Luderer

Physics Faculty Publications

We analyze the relationship between economic development and energy consumption in the context of greenhouse gas mitigation. The main contribution of this work is to compare estimates of energy thresholds in the form of minimum energy requirements to reach high levels of development with output projections of per capita final energy supply from a group of integrated assessment models (IAMs). Scenarios project that reductions of carbon emissions in developing countries will be achieved not only by means of decreasing the carbon intensity, but also by making a significant break with the historically observed relationship between energy use and economic growth. …

Ten Reasons To Take Peak Oil Seriously, Robert Brecha

Physics Faculty Publications

Forty years ago, the results of modeling, as presented in The Limits to Growth, reinvigorated a discussion about exponentially growing consumption of natural resources, ranging from metals to fossil fuels to atmospheric capacity, and how such consumption could not continue far into the future. Fifteen years earlier, M. King Hubbert had made the projection that petroleum production in the continental United States would likely reach a maximum around 1970, followed by a world production maximum a few decades later. The debate about “peak oil," as it has come to be called, is accompanied by some of the same vociferous …

Rose: Roadmaps Towards Sustainable Energy Futures And Climate Protection: A Synthesis Of Results From The Rose Project, Elmar Kriegler, Ioanna Mouratiadou, Gunnar Luderer, Nico Bauer, Katherine Calvin, Enrica Decian, Robert J. Brecha, Wenying Chen, Aleh Cherp, Jae Edmonds, Kejun Jiang, Shonali Pachauri, Fabio Sferra, Massimo Tavoni, Ottmar Edenhofer

Physics Faculty Publications

EXECUTIVE SUMMARY

Exploring energy demand and supply uncertainty: An exploration of uncertainty on drivers of energy demand and supply is indispensable for better understanding the prospects of long-tern climate stabilization. The RoSE study is the first of its kind to systematically explore the impact of economic growth, population and fossil fuel scarcity, in scenarios with and without climate policy, using a model ensemble. A feature of RoSE is the participation of five established integrated assessment modelling teams from three important regions in international climate policy negotiations: the EU, the USA and China.

Economic growth: Neither slow nor rapid economic growth …