Energy Primer: Some Background on Energy Systems Economics 331b Yale University Note: These slides are products of a large number of scholars in the natural and social sciences. Implicit thanks go to all who have made these available. 1

2

Some Important Units of Measurement 3

Units Scientific units: 1 Joule (J) is the MKS unit of energy, equal to the force of one Newton acting through one meter. 1 Watt is the power of a Joule of energy per second Multiplicative measures; kilo-x = 10^3 xmega-x = 10^6 x giga-x = 10^9 xtera-x= 10^12 x peta-x = 10^15 xexa-x = 10^18 x Commonly used non-scientific units: A BTU (British Thermal Unit) is the amount of heat necessary to raise one pound of water by 1 degree Fahrenheit (F). 1 BTU = 252 cal = kJ “barrel of oil” = 42 gallons =1/7 of a metric ton 4

Units of energy system 5 Source: Gruebler et al., Energy Primer

Heat content of fuels Mbtu GJ 1 barrel of crude oil ton of crude oil short ton of coal ft 3 of natural gas MBtu = 10 6 Btu (IT) 1 GJ = 10 9 J 6

Examples of Power and Energy (ranked by power ratings) Power W Time (Seconds) Energy J (Ws) Solar energy to earth per year1.8 10^ ^ ^24 Earthquake 8 Richter scale2.0 10^ ^ ^16 Global energy use for ^ ^ ^20 Thunderstorm (kinetic energy)1.0 10^ ^ ^14 Space shuttle lift-off1.2 10^ ^ ^12 B 747 flight Tokyo-Frankfurt1.1 10^ ^ ^12 Energy/day for a supermarket2.0 10^ ^ ^9 Daily metabolism of adult1.0 10^ ^ ^6 Burning a small candle3.0 10^ ^ ^3 Source: Nakicenovic 7

Schematics and cartoons 8

9 Overview of energy system Energy resources (oil in ground,…) Capital, labor, … Energy fuels (gasoline, electricity, …) Capital, labor, … Energy goods and services (passenger miles, warm house, hot coffee, … Non-energy goods and services Utility: U(c 1, c 1, …, c n )

U.S. Primary Energy Consumption by Source and Sector, 2007 (Quadrillion Btu) Source: Energy Information Agency 10

11 More detailed overview of the energy system 11

Basic data and trends for the US 12

13 Energy politics

Energy Consumption by Source, (Quadrillion Btu) Source: Energy Information Agency 14

Energy Consumption by Source, US Source: Energy Information Agency 15

Energy Production by Source for 2000, U.S. Source: Energy Information Agency 16

17

Energy Consumption by End Use, US Source: Energy Information Agency 18

Petroleum Overview, US Source: Energy Information Agency 19

Source: EIA 20

Transportation Energy Consumption, US Source: Energy Information Agency 21

Motor Vehicle Indicators, US Source: Energy Information Agency 22

Vehicle ownership per person, Source: IPCC, AR4, Mitigation 23

Coal Production by Mining Method, US Source: Energy Information Agency 24

Coal Consumption by Sector, US Source: Energy Information Agency 25

Source: Energy Information Agency 26

Nuclear Power Plant Licenses Issued, US Source: Energy Information Agency 27

Renewable Energy, US Source: Energy Information Agency 28

Renewable Energy, 2008, US Source: Energy Information Agency 29

Map on Solar Potential, US 30

Map of Wind Potential, US (wind speed) 31

Basic data and trends for the world 32

33 Total Fossil Energy Resources, Global ZJ = Zeta-joule or Joule or thousands of Exajoules Source: Nakicenovic

Global energy resources Source: Energy Primer Note: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use. 34

Potential global renewable energy Source: Energy Primer Note: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use. 35

World Crude Oil Production, Source: Energy Information Agency 36

Shares of world energy consumption Source: IPCC Energy Primer Note: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use. 37

Shares of world energy consumption Source: EIA 38

Energy intensity of production Source: IPCC Energy Primer Note: Unit is “exojoule” = 10^18 joules = 10^15 Btu = 1/400 of world energy use. 39

PRICES 40

41 Source: Nordhaus, based on BLS

42 Source: Nordhaus, based on EIA oil prices and BLS CPI.

Energy goods v. energy services A key issue in measurement is the difference between energy goods or inputs and energy outputs or services. E.g., ounce of whale oil v. lumen; gallon of gasoline v. (vmt, comfort, safety, noise, …) Production function: Energy services = f(capital, labor, fuel, infrastructure,…) Basic point: There have been vast improvements in energy services per unit of primary energy over time (call it “efficiency”) 43

The price of fuel for lighting 44 Roger Fouquet and Peter J.G. Pearson

The long-term price of light 45 Roger Fouquet and Peter J.G. Pearson

The long-term price of light 46 Roger Fouquet and Peter J.G. Pearson

The Price of Passenger Transport (per Passenger-Km-Hour), Roger Fouquet and Peter J.G. Pearson

The Price of Passenger and Freight Transport (per Passenger and Tonne-Kilometre-Hour), Roger Fouquet and Peter J.G. Pearson

The Price of Freight Transport (per Tonne-Kilometre), Roger Fouquet and Peter J.G. Pearson

Some environmental indicators 50

51 CO 2 concentrations at Mauna Loa

52 Instrumental record: global mean temperature index (°C)

Greenhouse gas emissions, 2004 Source: IPCC, AR4, Mitigation 53

CO2 emissions and concentrations Source: IPCC, AR4, Science 54

55 Trend in CO2 emissions relative to GDP, US

Global decarbonization 56

Decarbonization by country 57

Source: Muller, Nordhaus, Mendelsohn, External cost and wholesale price, power, US Wholesale price of power External costs of generation (air, …)

59 Source: Climate priced at $30 per ton C. Electricity at 8.4 cents per kwh. Muller, Nordhaus, Mendelsohn, Ratio of External Costs to Electricity Price, Different Generation Types, With and Without Climate Charge

60