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Poorly implemented energy subsidies are economically costly to taxpayers and damage the environment. This report aims at providing the emerging lessons form a representative sample of case studies in 20 developing countries that could help policy makers to address implementation challenges, including overcoming political economy and affordability constraints. The sample has selected on the basis of a number of criteria, including the country’s level of development (and consumption), developing country region, energy security and the fuel it subsidies (petroleum fuel, electricity, natural gas). The case studies were supported by data collection related to direct budgetary subsidies, fuel and electricity tariffs, and household survey data.The analysis provides strong evidence of the success of reforms in reducing the associated fiscal burden. For the sample of countries, the average energy subsidy recorded in the budget was reduced from 1.8% in 2004 to 1.3%GDP in 2010. The reduction of subsidies is particularly remarkable for net energy importers. Pass-through of international fuel prices was also notable in the case of electricity generated by fossil fuel. For the sample of countries, the average end-user electricity tariff increased by 50%, from USD 6 cents in 2002 to USD 9 cents per kWh in 2010.In spite of the relatively price inelastic demand for gasoline and diesel, fossil fuel consumption in the road sector (per unit of GDP) declined in the 20 countries examined from 53 (44) in 2002 to about 23 kt oil equivalent per million of GDP in 2008 in the case of gasoline (Diesel). The most notable decline in consumption was recorded in the low and lower middle income countries. This reflects the much higher rate of growth in GDP in this group of countries and underlines the opportunities to influence future consumption behavior rather than modifying the existing consumption patterns, overcoming inertia and vested interests. Similar trends are recorded for power consumption.While there is no one-size-fits-all model for subsidy reform, implementation of compensatory social policies and an effective communication strategy, before the changes are introduced, reduces helped with the implementation of reforms.

This book explores energy savings performance contracts (ESPCs) as a means of overcoming some of the more difficult hurdles in promoting energy efficiency in public facilities. ESPCs represent a very attractive solution to many of the problems that are unique to public agencies, since they involve outsourcing a full project cycle to a service provider. From the detailed audit through implementation and savings verification, ESPCs can relieve public agencies of bureaucratic hassles, while service providers can secure the off-budget project financing and be paid from the actual energy savings, thus internalizing project performance risks. ESPC bidding also allows public agencies to select from a range of technical solutions, maximizing the benefit to the agency. Global experience suggests that ESPCs have been more effective at realizing efficiency gains than many other policy measures and programs, since the service providers have a vested interest in ensuring that a project is actually implemented. Many of the country governments interviewed for the study also saw enormous potential in bundling, financing, and implementing energy efficiency projects on a larger scale in the public sector, a method that increases the rate of efficiency gains and creates further benefits through economies of scale.

The global energy crisis, which began in 2021 due to the extraordinary economic recovery after the pandemic and intensified after Russia’s invasion of Ukraine in February 2022, has changed the conditions of energy management, paying more attention to energy efficiency. Natural gas prices have reached record levels and, consequently, so have electricity prices in some markets. Oil prices have reached their highest level since 2008. Higher energy prices have contributed to sharply increased inflation. Households are again becoming interested in buying coal as a source of heat. High energy and gas prices have pushed many families into poverty and forced some factories to cut production or even close. They have also slowed economic growth to the point where some countries are heading for a serious recession. Paradoxically, the negative effects of the energy crisis may accelerate the introduction of cleaner, sustainable, renewable energy such as wind and solar energy. The energy crisis is comparable to the oil crisis of the 1970s, when it contributed to significant advances in energy efficiency. The current crisis has highlighted the importance of investments in renewable energy resources and initiated the process of integrating regional markets, developing energy efficiency and promoting renewable energies. The aim of this article is to comprehensively explore the complex relationship between energy awareness, consumption patterns, and energy efficiency, with a focus on both individual consumers and industries, during the global energy crisis. This paper is based on a literature review, overarching policy documents, energy reports, and other secondary documents. The primary research method was the systematic literature review method, based on which the impact of the global energy crisis on energy efficiency was evaluated. This study emphasizes the diverse influences on energy awareness, ranging from economic factors to consumer preferences and environmental consciousness. The findings of the paper underscore the significant responsibility of industries in contributing to energy-saving efforts and the active role of consumers in the energy market. The responsibility of industries in contributing to energy efficiency is highlighted, with a call for a comprehensive approach that integrates energy-saving criteria into product development and corporate social responsibility.

Protected areas (PAs) are the leading tools to conserve forests. However, given their mixed effectiveness, we want to know when they have impacts internally and, if they do, when they have spillovers. Political economy posits roles for the level of government. One hypothesis is that federal PAs avoid more internal deforestation than state PAs since federal agencies consider gains for other jurisdictions. Such political differences as well as economic mechanisms can cause PA spillovers to vary greatly, even from “leakage,” more deforestation elsewhere, to “blockage,” less deforestation elsewhere. We examine internal impacts and local spillovers for Brazilian Amazon federal and state agencies. Outside the region’s “arc of deforestation,” we confirm little internal impact and show no spillovers. In the “arc,” we test impacts by state, as states are large and feature considerably different dynamics. For internal impacts, estimates for federal PAs and indigenous lands are higher than for state PAs. For local spillover impacts, estimates for most arc states either are not significant or are not robust; however, for Pará, federal PAs and indigenous lands feature both internal impacts and local spillovers. Yet, the spillovers in Pará go in opposite directions across agencies, leakage for indigenous lands but blockage for federal PAs, suggesting a stronger external signal from the environmental agency. Across all these tools, only federal PAs lower deforestation internally and nearby. Results suggest that agencies’ objectives and capacities are critical parts of the contexts for conservation strategies.

Studying and analyzing energy consumption and structural changes in Pakistan’s major economic sectors is crucial for developing targeted strategies to improve energy efficiency, support sustainable economic growth, and enhance energy security. The logarithmic mean Divisia index (LMDI) method is applied to find the factors’ effects that change sector-wise energy consumption from 1990 to 2019. The results show that: (1) the change in mixed energy and sectorial income shows a negative influence, while energy intensity (EI) and population have an increasing trend over the study period. (2) The EI effects of the industrial, agriculture and transport sectors are continuously rising, which is lowering the income potential of each sector. (3) The cumulative values for the industrial, agricultural, and transport sectors increased by 57.3, 5.3, and 79.7 during 2019. Finally, predicted outcomes show that until 2035, the industrial, agriculture, and transport incomes would change by -0.97%, 13%, and 65% if the energy situation remained the same. Moreover, this sector effect is the most crucial contributor to increasing or decreasing energy consumption, and the EI effect plays the dominant role in boosting economic output. Renewable energy technologies and indigenous energy sources can be used to conserve energy and sectorial productivity.

The energy rebound effect is a potential threat to energy-saving targets based on energy efficiency improvements. This paper employs a stochastic energy demand frontier model to analyze the energy demand and rebound effect in China’s urban residential sector. Using a panel data set of 30 Chinese provincial-level regions over the period 2001–2014, for the first time, we investigate the degrees and determinants of China’s urban residential energy demand and energy rebound effect. The results show that residents’ income level, energy price, temperature deviation, population scale, household size, and district heating system are significant influencing factors of residential energy consumption. Regarding the energy rebound effect, we find that energy price is negatively correlated with the rebound effect, and an inverted U-shaped relationship between residents’ income level and rebound-effect size exists. The magnitude of the rebound effect varies across regions, with an average of 65.4%. The main policy implication generated by this study is that it should be in urgent need of energy pricing reform to mitigate the rebound effect in China.

Phase change materials (PCMs) with high heat recovery and high energy density were introduced to the wood-plastic composites (WPCs) to regulate the indoor temperature, achieving the purpose of reducing building energy consumption. However, the interface compatibility between PCMs and WPCs seriously restricts its applications. To improve the utilization efficiency and expand the application fields, novel thermal storage wood-plastic composites (WPCs) were synthesized based on poly (ethylene glycol) (PEG) encapsulated by organic montmorillonite (OMMT) and WPC matrix. The leakage of PEG in PCMs were effectively solved. WPCs were successfully prepared since the peaks of the C–O bond and Si–O bond in WPC-3 are significantly more intense than WPC-0. The phase change temperature range of WPCs (17–26 °C) was similar to PCM3 (17–23 °C), which was caused by the restriction on crystal arrangement and orientation of PEG molecular chains in the wood-plastic matrix. The value of latent heat for PCM3 was 108.97 J/g, while the enthalpy value of WPCs reached 47.53 J/g when the loading percentage of PCM3 was 40%. Based on the good thermal properties, both PCMs and WPCs could effectively regulate the indoor temperature. The results of TG show that the fabrication of the organic network enhanced the thermal stability of PCMs, and the high-temperature resistance of the MMT reduced the degradation rate of WPCs. The thermal storage WPCs possess excellent thermal reliability and stability, good interface interaction and combustion performance, which are potential in the application of building energy-saving and indoor air-conditioning systems.

The supposition that agricultural intensification results in land sparing for conservation has become central to policy formulations across the tropics. However, underlying assumptions remain uncertain and have been little explored in the context of conservation incentive schemes such as policies for Reducing Emissions from Deforestation and forest Degradation, conservation, sustainable management, and enhancement of carbon stocks (REDD+). Incipient REDD+ forest carbon policies in a number of countries propose agricultural intensification measures to replace extensive \"slash-and-burn\" farming systems. These may result in conservation in some contexts, but will also increase future agricultural land rents as productivity increases, creating new incentives for agricultural expansion and deforestation. While robust governance can help to ensure land sparing, we propose that conservation incentives will also have to increase over time, tracking future agricultural land rents, which might lead to runaway conservation costs. We present a conceptual framework that depicts these relationships, supported by an illustrative model of the intensification of key crops in the Democratic Republic of Congo, a leading REDD+ country. A von Thünen land rent model is combined with geographic information systems mapping to demonstrate how agricultural intensification could influence future conservation costs. Once postintensification agricultural land rents are considered, the cost of reducing forest sector emissions could significantly exceed current and projected carbon credit prices. Our analysis highlights the importance of considering escalating conservation costs from agricultural intensification when designing conservation initiatives.

China is currently undergoing an important stage wherein it is adjusting its development mode and upgrading its industrial structure. Green investment has become a major driving force through which China can achieve green and sustainable development. Based on the panel data of 30 Chinese provinces for the 2006–2017 period, this paper uses a spatial Durbin model and a dynamic threshold model to empirically analyze the impact of green investment and institutional quality on environmental pollution. The research results show that China’s environmental pollution is significantly characterized by spatial dependence. Local environmental pollution is negatively impacted by green investment, but it is not affected by green investment in neighboring areas; this conclusion remains valid after a series of robustness tests. Green investment can reduce environmental pollution by improving efficiency of energy conservation and emission reduction, expanding technological innovation capabilities and upgrading the industrial structure. The regression results of the dynamic threshold model show that green investment has a nonlinear impact on environmental pollution that is dependent on institutional quality. A higher degree of regional corruption can lead to a gradual decrease in the role of green investment in reducing environmental pollution. However, improvements in marketization and intellectual property protection can increase the positive influence of green investment in reducing environmental pollution. Significant regional heterogeneity is also found in the impact of green investment on environmental pollution, and this impact gradually decreases from the eastern coast to the western region.