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Energy and Economy Chapter 6. Kurt Yeager GEA West Coast Launch – Stanford 21 May 2013. Lead Authors. Felix Dayo Brian Fisher Roger Fouquet Asmeron Gilau Hans-Holger Rogner Contributing Authors Marianne Haug Richard Hosier Alan Miller Subine Schnitteger. Energy and Economy. - PowerPoint PPT Presentation
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Energy and EconomyChapter 6
Kurt YeagerGEA West Coast Launch – Stanford
21 May 2013
Lead AuthorsFelix DayoBrian FisherRoger FouquetAsmeron GilauHans-Holger Rogner
Contributing AuthorsMarianne HaugRichard HosierAlan MillerSubine Schnitteger
2
© GEA 2012www.globalenergyassessment.orgChapter 6, #3
Regional Disparities in Income and Energy Use per Capita in 2005
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Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #4
Capital-Energy Substitution Frontier
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Energy and Economy
Alternative technical production options
Capital K
Energy E
A
BC
© GEA 2012www.globalenergyassessment.orgChapter 6, #5
Primary Energy Use per Capita versus GDP per Capita
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Energy and Economy
0
100
200
300
400
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
GJ p
er ca
pita
GDP per capita
USA 1800-2008
Japan 1885-2008
China (MER) 1950-2008
India (MER) 1950-2008
UK 1800-2008
© GEA 2012www.globalenergyassessment.orgChapter 6, #6
Annual Growth Rates of Indicators for Primary Energy Demand
Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #7
Primary Energy Intensities Across Regions in 2005
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Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #8
SME Contribution to Employment and GDP
Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #9
Average External Costs for the European Union
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Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #10
The Role of Backstop Technologies in Capping Resource Prices
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Energy and Economy
Price
P0
Pb
Pt= P0 ert
Time t
Quantity/Stock
Q0
.
Backstop price
TQT
© GEA 2012www.globalenergyassessment.orgChapter 6, #11
Short and Long-Term Demand/Supply Responses to a Price Increase Due to a Loss of Supply Capacity
Energy and EconomyShort and long-term demand/supply responses to a
price increase due to a loss of supply capacity
PB
PA
A
SS
E
B
DSDL
PE
QA
SLSS
’
PC
QC QBQE
C
© GEA 2012www.globalenergyassessment.orgChapter 6, #12
Declining Investments in the US Electricity Sector
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Energy and Economy
© GEA 2012www.globalenergyassessment.orgChapter 6, #13
Energy and Financing
FINANCING• Energy Investment Constraints• Financial Sources & Mechanisms
TECHNICAL INNOVATION• The Role of Entrepreneurial Innovators
© GEA 2012www.globalenergyassessment.orgChapter 6, #14
Conclusions
• Energy is an essential prerequisite for economic development• Energy is crucial for achieving a more equitable and sustainable world• Energy technology has expanded dramatically
but it is not yet being adequatelyimplemented commercially • Electricity is the essential key to energy access and innovation• Energy transitions require robust public policy and institutional frameworks