DeepSummary
The transcript is an interview with Gernot Wagner, an economist and researcher at Harvard University. Wagner discusses his work on quantifying and understanding factors affecting energy transition and climate change, such as the rebound effect, decomposing emissions reductions into different drivers like fuel switching and renewables growth, and pricing carbon emissions.
Wagner explains his methodology for analyzing the reasons behind the drop in US CO2 emissions from 2007-2013, finding that renewables played as big a role as the switch from coal to natural gas. He also delves into the rebound effect - whether efficiency gains simply lead to more energy use - concluding that while some rebound occurs, it does not outweigh the benefits of efficiency.
The discussion moves to Wagner's current work on solar geoengineering as a potential cost-effective way to combat climate change. Throughout, Wagner emphasizes the importance of properly pricing carbon emissions to account for externalities and drive an effective energy transition.
Key Episodes Takeaways
- Wagner's analysis found that renewables growth played as large a role as fuel switching in reducing US emissions from 2007-2013, contrary to common assumptions.
- While the rebound effect from efficiency gains is real, leading to some increase in energy use, empirical evidence suggests it does not fully negate the benefits of improved efficiency.
- Economic growth enabled by productivity gains is distinct from the rebound effect and can increase overall energy use if energy production is not properly priced to account for environmental costs.
- Accurately pricing carbon emissions is critical to drive effective climate and energy transition policies.
- Solar geoengineering is an area of research Wagner is exploring as a potential cost-effective approach to combating climate change.
- Quantifying complex, difficult-to-measure factors like rebound effects and decomposing drivers of emissions changes is a key focus of Wagner's work.
- Having access to more granular data enabled new insights in Wagner's emissions decomposition analysis.
- While efficiency gains have benefits, they alone cannot solve climate change without proper carbon pricing according to Wagner.
Top Episodes Quotes
- “Frankly, we had more detailed data. That was the real difference.“ by Gernot Wagner
- “Now, of course, there's this much, much broader question then around economic growth in general and sort of productivity growth in general. So if we figure out better ways of putting together widgets, producing certain things, we make the economy more productive overall, as in do more things with less energy. Well, what does that do overall? It leads to, in the long run, to more economic growth.“ by Gernot Wagner
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Episode Information
The Energy Transition Show with Chris Nelder
XE Network
5/2/18