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Assessing ‘Green Energy Economy’ policies for transforming the building stock in Shanghai

Mundaca, Luis LU ; Na, Lin and Smedby, Nora LU (2014) 4th International Association for Energy Economics (IAEE) Asian Conference In [Host publication title missing]
Abstract
The 2008–2009 global financial crisis triggered ‘Green Energy Economy’ (GEE) policy packages to stimulate green growth in many countries. China soon became a leader and, supported by its 11th Five-Year Plan (2006–2010), devoted approximately one-third of its US$ 647 billion stimulus package to green energy technologies. Since then, numerous policy instruments have been implemented to encourage ‘Green Buildings’. We take the Chinese city of Shanghai as a case study as it has the largest population, urbanization ratio and GDP in China and evaluate the performance of GEE policies targeted at the multi-household building sector. We use a bottom-up modelling tool to quantitatively estimate alternative baselines and assess different policy... (More)
The 2008–2009 global financial crisis triggered ‘Green Energy Economy’ (GEE) policy packages to stimulate green growth in many countries. China soon became a leader and, supported by its 11th Five-Year Plan (2006–2010), devoted approximately one-third of its US$ 647 billion stimulus package to green energy technologies. Since then, numerous policy instruments have been implemented to encourage ‘Green Buildings’. We take the Chinese city of Shanghai as a case study as it has the largest population, urbanization ratio and GDP in China and evaluate the performance of GEE policies targeted at the multi-household building sector. We use a bottom-up modelling tool to quantitatively estimate alternative baselines and assess different policy scenarios for the period 2010–2050. We measure the performance of policies in relation to energy use, efficiency improvements, CO2 emissions and net direct economic impacts. Our results suggest that current GEE policies are insufficient to stimulate radical change in the building sector. When unambitious policy measures are implemented in isolation, they provide marginal improvements compared to current building codes. The retrofitting of existing buildings is both a significant policy challenge, and offers fertile ground for improvements. Our results show that ambitious, technology-oriented financial incentives for both new and existing buildings, including energy price reform and a CO2 tax offer the right mix of incentives for green building transformation. When the social costs of climate change are taken into account, an integrated policy mix also delivers the highest net economic benefits. We conclude that policies must be more ambitious and include an integrated mix of instruments in order to drive a low-carbon transformation of both new and existing buildings in Shanghai. Finally, the theoretical impacts and potential benefits of GEE policy instruments must not underestimate the challenges associated with their design, implementation and enforcement. (Less)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
Building stock, Global financial crisis, Green energy economy, Policy evaluation, Shanghai, Economy recovery packages.
categories
Higher Education
in
[Host publication title missing]
pages
21 pages
publisher
International Association for Energy Economics
conference name
4th International Association for Energy Economics (IAEE) Asian Conference
language
English
LU publication?
yes
id
159b04ae-65f2-4044-8f39-9ac5eda48def (old id 5104606)
date added to LUP
2015-02-25 11:41:34
date last changed
2016-04-16 08:36:21
@misc{159b04ae-65f2-4044-8f39-9ac5eda48def,
  abstract     = {The 2008–2009 global financial crisis triggered ‘Green Energy Economy’ (GEE) policy packages to stimulate green growth in many countries. China soon became a leader and, supported by its 11th Five-Year Plan (2006–2010), devoted approximately one-third of its US$ 647 billion stimulus package to green energy technologies. Since then, numerous policy instruments have been implemented to encourage ‘Green Buildings’. We take the Chinese city of Shanghai as a case study as it has the largest population, urbanization ratio and GDP in China and evaluate the performance of GEE policies targeted at the multi-household building sector. We use a bottom-up modelling tool to quantitatively estimate alternative baselines and assess different policy scenarios for the period 2010–2050. We measure the performance of policies in relation to energy use, efficiency improvements, CO2 emissions and net direct economic impacts. Our results suggest that current GEE policies are insufficient to stimulate radical change in the building sector. When unambitious policy measures are implemented in isolation, they provide marginal improvements compared to current building codes. The retrofitting of existing buildings is both a significant policy challenge, and offers fertile ground for improvements. Our results show that ambitious, technology-oriented financial incentives for both new and existing buildings, including energy price reform and a CO2 tax offer the right mix of incentives for green building transformation. When the social costs of climate change are taken into account, an integrated policy mix also delivers the highest net economic benefits. We conclude that policies must be more ambitious and include an integrated mix of instruments in order to drive a low-carbon transformation of both new and existing buildings in Shanghai. Finally, the theoretical impacts and potential benefits of GEE policy instruments must not underestimate the challenges associated with their design, implementation and enforcement.},
  author       = {Mundaca, Luis and Na, Lin and Smedby, Nora},
  keyword      = {Building stock,Global financial crisis,Green energy economy,Policy evaluation,Shanghai,Economy recovery packages.},
  language     = {eng},
  pages        = {21},
  publisher    = {ARRAY(0xe670b50)},
  series       = {[Host publication title missing]},
  title        = {Assessing ‘Green Energy Economy’ policies for transforming the building stock in Shanghai},
  year         = {2014},
}