Download Energy Efficiency and Human Economic Welfare

ENERGY EFFICIENCY &
HUMAN ECONOMIC WELFARE
Club of Rome International Conference on
“The Future of Energy & Interconnected Challenges of the 21st Century”
Basel -- October 17-18, 2011
By Garry Jacobs and Ivo Šlaus
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Sustainable Human Welfare
Disposable
Income
Household
Savings
Education
& Health
Employment
Human
Welfare
Income
Distribution
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Energy &
Environment
Security
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Security

Physical




Social




Peace
Energy
Climate
Income & employment
Health & retirement
Social stability
Psychological
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Absence of catastrophic threats
Confidence in ourselves, our institutions & opportunities
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Human Economic Welfare Index (HEWI)
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Composite index of human economic welfare
Encompasses factors omitted by GDP
Maintains utility of an easily measured index, e.g. CPI
Components of HEWI
 Personal
Disposable Income (PDI)
 Human Welfare Government Expenditure (HWGE)
 Full Employment Index (FEI)
 Economic Welfare Index (EWI) -- equality
 Combined Education Index (CEI)
 Health Adjusted Life Expectancy Index (HALE)
 Energy Efficiency Index (EEI)
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Energy Intensity 1830-2000
75% 
Source : Marina Fischer-Kowalski and Helga Weisz, “Transition to a Globally Sustainable Metabolism—Possible and Impossible Futures”
Presented at the 2008 Conference of the International Society for Ecological Economics, Nairobi, Kenya, August 2008; p. 7.
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Energy Intensity is Energy consumption per unit of GDP
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Projected US Energy Intensity 2008-2035
15%
Evolution of economy:
Services now account for 78% of US GDP & 64% of global output
Source EAI. 2008 =1
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Fossil Fuel Energy Intensity for Selected
OECD Countries 1970–2008
USA  60%
UK  55%
Switz  40%
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Fossil Fuel Energy Efficiency Index (EEI)
Relates fossil fuel energy consumption to Economic Welfare
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Household consumption expenditure +
Government welfare related expenditure
 Health
 Education
 Social protection & employment insurance
 Housing
 Environmental protection
Measures changes over sliding10 year periods
Higher EEI reflects investments in sustainability
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Shift to renewable sources
Improved energy efficiency
Shift to less energy-intensive economic activities
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EEI for Select Countries: 1995 - 2008
Country
Energy FFEC as %
energy
Intensity
consumed
FFEC/
HWE
1995
FFEC/
HWE
2005
FFEC/
HWE
2008
EEI
2005
US
9,146
85%
11499
8941
8420
1.16
UK
5,451
89%
7667
5765
5235
1.15
Sweden
8,857
37%
6356
4683
4207
1.13
India
7,582
92%
11911
9834
Germany
6,573
85%
7611
6732
China
13,919
93%
30386
28181
Japan
6,636
83%
7707
7465
7485
1.02
Italy
5,793
91%
6664
6488
6128
1.01
Brazil
6,906
60%
5145
5508
5478
0.98
Spain
6,481
85%
6104
6455
5720
0.94
1.06
6499
1.05
1.04
Energy Intensity unit: Btu/ 2000 intl dollars PPP; FFEC in BTU per dollar. HWE in constant $2005 PPP
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FFEC in USA 27%  in 18 years
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Trends in EEI 1975 to 2005
Country
FFEC/HWE
for 1975
FFEC/HWE
for 2005
EEI
1985
EEI
1995
EEI
2005
EEI30
1975-05
China
81,589
28,181
1.22
1.04
1.04
1.65
Sweden
12,774
4,683
1.35
1.08
1.13
1.63
UK
13,299
5,765
1.21
1.13
1.15
1.57
US
20,161
8,941
1.40
1.07
1.16
1.56
Japan
13,799
7,465
1.33
1.01
1.02
1.46
Italy
10,505
6,488
1.23
1.01
1.01
1.38
Spain
7,316
6,455
1.02
1.03
0.94
1.12
India
8,664
9,834
1.00
0.92
1.06
0.87
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Human Economic Welfare Index (2005)
GDP
PDI
EWI
FEI
CEI
EEI
HEWI
HEWI as
% GDP
India
2,234
1,821
1,638
0.96
1.02
1.06
1,702
76%
China
4,076
2,019
1,827
0.96
1.06
1.04
1,924
47%
South Africa
8,504
5,782
4,690
0.69
1.06
1.01
3,465
41%
Brazil
8,505
5,459
4,420
0.92
1.12
0.98
4,479
53%
Turkey
10,977
8,291
7,112
0.84
1.08
1.02
6,596
60%
Croatia
14,271
8,667
9,720
0.80
1.03
1.00
8,032
56%
Mexico
12,563
9,492
8,060
0.96
1.04
1.06
8,466
67%
Russia
11,861
10,564
10,297
0.92
1.02
1.05
10,119
85%
Korea, Rep
22,783
11,875
11,764
0.95
1.16
1.05
13,606
60%
Spain
27,377
18,569
20,057
0.86
1.09
0.94
17,676
65%
Japan
30,310
16,571
18,186
0.92
1.05
1.02
17,916
59%
Italy
28,144
19,205
20,082
0.83
1.08
1.01
18,196
65%
Germany
31,378
21,449
23,700
0.85
1.11
1.05
23,504
75%
Sweden
32,319
16,183
20,592
0.89
1.16
1.13
24,001
74%
UK
32,690
22,364
23,488
0.91
1.10
1.15
27,196
83%
US
41,833
29,516
27,483
0.93
1.01
1.16
30,146
72%
Country
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Thank You
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