Options for achieving a 50% cut in industrial carbon emissions by 2050.

Carbon emissions from industry are dominated by production of goods in steel, cement plastic, paper, and aluminum. Demand for these materials is anticipated to double at least by 2050, by which time global carbon emissions must be reduced by at least 50%. To evaluate the challenge of meeting this target the global flows of these materials and their associated emissions are projected to 2050 under five technical scenarios. A reference scenario includes all existing and emerging efficiency measures but cannot provide sufficient reduction. The application of carbon sequestration to primary production proves to be sufficient only for cement The emissions target can always be met by reducing demand, for instance through product life extension, material substitution, or "light-weighting". Reusing components shows significant potential particularly within construction. Radical process innovation may also be possible. The results show that the first two strategies, based on increasing primary production, cannot achieve the required emissions reductions, so should be balanced by the vigorous pursuit of material efficiency to allow provision of increased material services with reduced primary production.

A decoupled whole-building simulation engine for rapid exhaustive search of low-carbon and low-energy building refurbishment options

This paper presents the development of a new building physics and energy supply systems simulation platform. It has been adapted from both existing commercial models and empirical works, but designed to provide expedient exhaustive simulation of all salient types of energy- and carbon-reducing retrofit options. These options may include any combination of behavioural measures, building fabric and equipment upgrades, improved HVAC control strategies, or novel low-carbon energy supply technologies. We provide a methodological description of the proposed model, followed by two illustrative case studies of the tool when used to investigate retrofit options of a mixed-use office building and primary school in the UK. It is not the intention of this paper, nor would it be feasible, to provide a complete engineering decomposition of the proposed model, describing all calculation processes in detail. Instead, this paper concentrates on presenting the particular engineering aspects of the model which steer away from conventional practise. © 2011 Elsevier Ltd.

Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.