June 21, 2011 Michael Hartner, Reinhard Haas

June 21, 2011 Michael Hartner, Reinhard Haas Assessing embedded energy with Input-Output Analysis …understanding energy demand from a consumption perspective

June 21, 2011 Michael Hartner, Reinhard Haas Content 1.Introduction and objectives 2.Input-Output methodology 3.Results for Austria 4.Further steps

June 21, 2011 Michael Hartner, Reinhard Haas Definition „Embedded energy is the commercial energy that was used in the work to make any product, bring it to the market and dispose of it“

June 21, 2011 Michael Hartner, Reinhard Haas Introduction and Objectives Consumption based and product oriented view Total demand for energy can be traced back to the consumption of goods and services Understanding drivers from a consumption perspective Identifying reduction potentials for emissions

June 21, 2011 Michael Hartner, Reinhard Haas - What is the energy requirement for the consumption of goods and services? Introduction and Objectives

June 21, 2011 Michael Hartner, Reinhard Haas Introduction and Objectives Literature: - Miller Ronald E., Blair Peter D.(2009): Input-Output Analysis – Foundations and Extensions; Cambridge University Press; Cambridge - Manfred Lenzen, University of Sydney -Tukker Arnold et al (2006): Environmental Impact of Products – Analysis of the life cycle environmental impacts related to the final consumption oft he EU-25, Main report; Joint Research Centre; European Commission - Bednar-Friedl Birgit, Munoz Jaramillo Pablo, Schinko Thomas, Steininger Karl (2010): The Carbon Content of Austrian Trade Flows in the European and International Trade Context; FIW Research Reports 2009/2010 N°5

June 21, 2011 Michael Hartner, Reinhard Haas Sector 1Sector 2Sector 3DemandTotal Output Sector 1Zd YdX Sector 2Zd YdX Sector 3Zd YdX WageLLL ProfitNNN Total OutputXXX Domestic economy Input Output Input Output model

June 21, 2011 Michael Hartner, Reinhard Haas Sector 1Sector 2Sector 3DemandTotal Output Sector 1Zd YdX Sector 2Zd YdX Sector 3Zd YdX WageLLL ProfitNNN Total OutputXXX Sector 1Sector 2Sector 3DemandTotal Imports Sector 1Zi YiM Sector 2Zi YiM Sector 3Zi YiM Sector 1Sector 2Sector 3DemandTotal Output Sector 1Zf YfXf Sector 2Zf YfXf Sector 3Zf YfXf WageLf ProfitNf Total OutputXf Domestic economy Imports from Rest of the World to domestic economy. ROW - economy Input Output Input Output model

June 21, 2011 Michael Hartner, Reinhard Haas domestic production imported intermediates imported final goods Input Output model

June 21, 2011 Michael Hartner, Reinhard Haas Results for Austria - Embedded energy in final demand components - Embedded vs. Direct energy use of private consumption - Product groups and composition of Embedded Energy - Change in private consumption spending

June 21, 2011 Michael Hartner, Reinhard Haas Results for Austria

June 21, 2011 Michael Hartner, Reinhard Haas Direct vs. Embedded Energy

June 21, 2011 Michael Hartner, Reinhard Haas Direct vs. Embedded Energy

June 21, 2011 Michael Hartner, Reinhard Haas Direct vs. Embedded Energy

June 21, 2011 Michael Hartner, Reinhard Haas Includes intermediate goods: - construction work - sewage and disposal services - water distribution Results for Austria

June 21, 2011 Michael Hartner, Reinhard Haas Results - Range from 0.2 to 4.9 kWh/€ - Variance in energy intensities decreases – Ratio of 90% and 10% quantil is 11 vs Some services demand energy intensive intermediate goods

June 21, 2011 Michael Hartner, Reinhard Haas Example: Sector insurance and pension funding Energy intensity of consumption: 0.32 kWh/€ Intensity form sector data: kWh/€ Results for Austria

June 21, 2011 Michael Hartner, Reinhard Haas Results for Austria

June 21, 2011 Michael Hartner, Reinhard Haas Changing consumption patterns and energy demand 10% leeway leads to 6.5% reduction in embedded energy of private consumption Total output of sectors change less than p Construction work and related sectors hardly affected

June 21, 2011 Michael Hartner, Reinhard Haas Further research steps Process analysis for relevant products Assessing reduction potentials along the process chain and related costs Translate major changes in process chains into new input coefficients to assess economic effects of measures to reduce energy demand Hybrid model for embedded energy

June 21, 2011 Michael Hartner, Reinhard Haas Thanks for your attention!!! Contact: