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Burden of the global energy price crisis on households
2023
The Russia–Ukraine conflict has triggered an energy crisis that directly affected household energy costs for heating, cooling and mobility and indirectly pushed up the costs of other goods and services throughout global supply chains. Here we bridge a global multi-regional input–output database with detailed household-expenditure data to model the direct and indirect impacts of increased energy prices on 201 expenditure groups in 116 countries. On the basis of a set of energy price scenarios, we show that total energy costs of households would increase by 62.6–112.9%, contributing to a 2.7–4.8% increase in household expenditures. The energy cost burdens across household groups vary due to differences in supply chain structure, consumption patterns and energy needs. Under the cost-of-living pressures, an additional 78 million–141 million people will potentially be pushed into extreme poverty. Targeted energy assistance can help vulnerable households during this crisis. We emphasize support for increased costs of necessities, especially for food.
The Russia–Ukraine war triggered an energy crisis that affected the cost of many goods and services. Guan et al. model the direct and indirect impacts of increased energy prices across expenditure groups and countries, finding temporary increases in total household energy costs of 63–113% under different scenarios.
Journal Article
The green hydrogen ambition and implementation gap
2025
Green hydrogen is critical for decarbonizing hard-to-electrify sectors, but it faces high costs and investment risks. Here we define and quantify the green hydrogen ambition and implementation gap, showing that meeting hydrogen expectations will remain challenging despite surging announcements of projects and subsidies. Tracking 190 projects over 3 years, we identify a wide 2023 implementation gap with only 7% of global capacity announcements finished on schedule. In contrast, the 2030 ambition gap towards 1.5 °C scenarios has been gradually closing as the announced project pipeline has nearly tripled to 422 GW within 3 years. However, we estimate that, without carbon pricing, realizing all these projects would require global subsidies of US$1.3 trillion (US$0.8–2.6 trillion range), far exceeding announced subsidies. Given past and future implementation gaps, policymakers must prepare for prolonged green hydrogen scarcity. Policy support needs to secure hydrogen investments, but should focus on applications where hydrogen is indispensable.
Green hydrogen is critical for hard-to-electrify sectors, but faces economic headwinds. Odenweller and Ueckerdt quantify green hydrogen ambition and implementation gaps, showing that meeting expectations will remain challenging and costly.
Journal Article
Expert elicitation survey predicts 37% to 49% declines in wind energy costs by 2050
2021
Wind energy has experienced accelerated cost reduction over the past five years—far greater than predicted in a 2015 expert elicitation. Here we report results from a new survey on wind costs, compare those with previous results and discuss the accuracy of the earlier predictions. We show that experts in 2020 expect future onshore and offshore wind costs to decline 37–49% by 2050, resulting in costs 50% lower than predicted in 2015. This is due to cost reductions witnessed over the past five years and expected continued advancements. If realized, these costs might allow wind to play a larger role in energy supply than previously anticipated. Considering both surveys, we also conclude that there is considerable uncertainty about future costs. Our results illustrate the importance of considering cost uncertainty, highlight the value and limits of using experts to reveal those uncertainties, and yield possible lessons for energy modellers and expert elicitation.
Costs of renewable energy generation have fallen rapidly in recent years, often faster than predicted. Wiser et al. undertake an expert elicitation survey to project wind power costs to 2050, finding substantial continued cost reductions, and compare back to a previous survey to understand what has changed.
Journal Article
Large inequality in international and intranational energy footprints between income groups and across consumption categories
2020
Inequality in energy consumption, both direct and indirect, affects the distribution of benefits that result from energy use. Detailed measures of this inequality are required to ensure an equitable and just energy transition. Here we calculate final energy footprints; that is, the energy embodied in goods and services across income classes in 86 countries, both highly industrialized and developing. We analyse the energy intensity of goods and services used by different income groups, as well as their income elasticity of demand. We find that inequality in the distribution of energy footprints varies across different goods and services. Energy-intensive goods tend to be more elastic, leading to higher energy footprints of high-income individuals. Our results consequently expose large inequality in international energy footprints: the consumption share of the bottom half of the population is less than 20% of final energy footprints, which in turn is less than what the top 5% consume.
Detailed measures of energy use inequality globally and within countries are essential to ensure a just energy transition. Estimating embedded energy in goods and services used by different income groups, Oswald et al. measure the large inequality in energy use in 86 countries, and internationally.
Journal Article
Substantial emission reductions from Chinese power plants after the introduction of ultra-low emissions standards
2019
In 2014, China introduced an ultra-low emissions (ULE) standards policy for renovating coal-fired power-generating units to limit SO
2
, NO
x
and particulate matter (PM) emissions to 35, 50 and 10 mg m
−3
, respectively. The ULE standard policy had ambitious levels (surpassing those of all other countries) and implementation timeline. We estimate emission reductions associated with the ULE policy by constructing a nationwide, unit-level, hourly-frequency emissions dataset using data from a continuous emissions monitoring systems network covering 96–98% of Chinese thermal power capacity during 2014–2017. We find that between 2014 and 2017 China’s annual power emissions of SO
2
, NO
x
and PM dropped by 65%, 60% and 72%, respectively. Our estimated emissions using actual monitoring data are 18–92% below other recent estimates. We detail the technologies used to meet the ULE standards and the determinants of compliance, underscoring the importance of ex post evaluation and providing insights for other countries wishing to reduce their power emissions.
In 2014 China proposed an ultra-low emissions policy for coal-fired power plants to reduce emissions. Using comprehensive nationwide stack emissions monitoring data, Tang et al. show reductions in excess of 60% for SO
2
, NO
x
and particulate matter emissions since 2014, even as power generation overall increased.
Journal Article
Global supply-chain effects of COVID-19 control measures
2020
Countries have sought to stop the spread of coronavirus disease 2019 (COVID-19) by severely restricting travel and in-person commercial activities. Here, we analyse the supply-chain effects of a set of idealized lockdown scenarios, using the latest global trade modelling framework. We find that supply-chain losses that are related to initial COVID-19 lockdowns are largely dependent on the number of countries imposing restrictions and that losses are more sensitive to the duration of a lockdown than its strictness. However, a longer containment that can eradicate the disease imposes a smaller loss than shorter ones. Earlier, stricter and shorter lockdowns can minimize overall losses. A ‘go-slow’ approach to lifting restrictions may reduce overall damages if it avoids the need for further lockdowns. Regardless of the strategy, the complexity of global supply chains will magnify losses beyond the direct effects of COVID-19. Thus, pandemic control is a public good that requires collective efforts and support to lower-capacity countries.
Guan et al. analyse the impacts of COVID-19 restrictions on global supply chains. Earlier, stricter and shorter lockdowns can minimize overall losses. A ‘go-slow’ approach to lifting restrictions may reduce overall damages if it avoids the need for further lockdowns.
Journal Article
Peer influence on household energy behaviours
by
Wolske, Kimberly S.
,
Gillingham, Kenneth T.
,
Schultz, P. Wesley
in
4014/159
,
4014/477
,
704/844
2020
Studies across multiple disciplines demonstrate the importance of peers in shaping energy-related behaviours. Research on this process is wide ranging, from documenting spatial peer effects in the adoption of rooftop solar—when an individual’s behaviour is influenced by the behaviours of neighbours—to showing how neighbour comparisons can be used to reduce household electricity consumption. However, gaps exist in our understanding of how and why these peer effects occur. In this Review, we examine recent findings on social influence in energy behaviour and discuss pathways through which social influence can result in peer effects. We propose a conceptual framework for predicting which social influence processes will most often result in peer effects, depending on the targeted energy behaviour. We also review the limitations of social influence as well as evidence for when it is expected to be the strongest.
Household energy behaviours are influenced by the behaviour of others. In this Review, the authors review recent findings on social influence in energy consumption and technology adoption and discuss pathways through which social influence can result in peer effects.
Journal Article
Advances in subjective well-being research
2018
The empirical science of subjective well-being, popularly referred to as happiness or satisfaction, has grown enormously in the past decade. In this Review, we selectively highlight and summarize key researched areas that continue to develop. We describe the validity of measures and their potential biases, as well as the scientific methods used in this field. We describe some of the predictors of subjective well-being such as temperament, income and supportive social relationships. Higher subjective well-being has been associated with good health and longevity, better social relationships, work performance and creativity. At the community and societal levels, cultures differ not only in their levels of well-being but also to some extent in the types of subjective well-being they most value. Furthermore, there are both universal and unique predictors of subjective well-being in various societies. National accounts of subjective well-being to help inform policy decisions at the community and societal levels are now being considered and adopted. Finally we discuss the unknowns in the science and needed future research.
Diener et al. synthesize findings from psychology and economics on subjective well-being across cultures and identify outstanding questions, priorities for future research and pathways to policy implementation.
Journal Article