eprintid: 14481 rev_number: 15 eprint_status: archive userid: 5 dir: disk0/00/01/44/81 datestamp: 2017-03-16 15:38:46 lastmod: 2021-08-27 17:28:45 status_changed: 2017-03-16 15:38:46 type: article metadata_visibility: show creators_name: Nabernegg, S. creators_name: Bednar-Friedl, B. creators_name: Wagner, F. creators_name: Schinko, T. creators_name: Cofala, J. creators_name: Clement, Y.M. creators_id: 1789 creators_id: 8847 creators_id: 1460 creators_orcid: 0000-0003-3429-2374 creators_orcid: 0000-0003-1156-7574 title: The Deployment of Low Carbon Technologies in Energy Intensive Industries: A Macroeconomic Analysis for Europe, China and India ispublished: pub divisions: prog_air divisions: prog_risk divisions: prog_mag divisions: prog_rpv keywords: energy intensive industry; decarbonization; computable general equilibrium analysis; international trade; rebound effect abstract: Industrial processes currently contribute 40% to global CO2 emissions and therefore substantial increases in industrial energy efficiency are required for reaching the 2 C target. We assess the macroeconomic effects of deploying low carbon technologies in six energy intensive industrial sectors (Petroleum, Iron and Steel, Non-metallic Minerals, Paper and Pulp, Chemicals, and Electricity) in Europe, China and India in 2030. By combining the GAINS technology model with a macroeconomic computable general equilibrium model, we find that output in energy intensive industries declines in Europe by 6% in total, while output increases in China by 11% and in India by 13%. The opposite output effects emerge because low carbon technologies lead to cost savings in China and India but not in Europe. Consequently, the competitiveness of energy intensive industries is improved in China and India relative to Europe, leading to higher exports to Europe. In all regions, the decarbonization of electricity plays the dominant role for mitigation. We find a rebound effect in China and India, in the size of 42% and 34% CO2 reduction, respectively, but not in Europe. Our results indicate that the range of considered low-carbon technology options is not competitive in the European industrial sectors. To foster breakthrough low carbon technologies and maintain industrial competitiveness, targeted technology policy is therefore needed to supplement carbon pricing. date: 2017-03-14 date_type: published publisher: MPDI id_number: 10.3390/en10030360 creators_browse_id: 321 creators_browse_id: 272 creators_browse_id: 55 full_text_status: public publication: Energies volume: 10 number: 3 pagerange: 360 refereed: TRUE issn: 1996-1073 coversheets_dirty: FALSE fp7_project: no fp7_type: info:eu-repo/semantics/article citation: Nabernegg, S., Bednar-Friedl, B., Wagner, F. ORCID: https://orcid.org/0000-0003-3429-2374 , Schinko, T. ORCID: https://orcid.org/0000-0003-1156-7574 , Cofala, J. , & Clement, Y.M. (2017). The Deployment of Low Carbon Technologies in Energy Intensive Industries: A Macroeconomic Analysis for Europe, China and India. Energies 10 (3) p. 360. 10.3390/en10030360 . document_url: https://pure.iiasa.ac.at/id/eprint/14481/1/energies-10-00360-v2.pdf