A global assessment of manufacturing: Economic development, energy use, carbon emissions, and the potential for energy efficiency and materials recycling

We present in two parts an assessment of global manufacturing. In the first part, we review economic development, pollution, and carbon emissions from a country perspective, tracking the rise of China and other developing countries. The results show not only a rise in the economic fortunes of the newly industrializing nations, but also a significant rise in global pollution, particularly air pollution and CO2 emissions largely from coal use, which alter and even reverse previous global trends. In the second part, we change perspective and quantitatively evaluate two important technical strategies to reduce pollution and carbon emissions: energy efficiency and materials recycling. We subdivide the manufacturing sector on the basis of the five major subsectors that dominate energy use and carbon emissions: (a) iron and steel, (b) cement, (c) plastics, (d) paper, and (e) aluminum. The analysis identifies technical constraints on these strategies, but by combined and aggressive action, industry should be able to balance increases in demand with these technical improvements. The result would be high but relatively flat energy use and carbon emissions. The review closes by demonstrating the consequences of extrapolating trends in production and carbon emissions and suggesting two options for further environmental improvements, materials efficiency, and demand reduction. © 2013 by Annual Reviews. All rights reserved.

The incentives for supply chain collaboration to improve material efficiency in the use of steel: An analysis using input output techniques

In the face of increasing demand and limited emission reduction opportunities, the steel industry will have to look beyond its process emissions to bear its share of emission reduction targets. One option is to improve material efficiency - reducing the amount of metal required to meet services. In this context, the purpose of this paper is to explore why opportunities to improve material efficiency through upstream measures such as yield improvement and lightweighting might remain underexploited by industry. Established input-output techniques are applied to the GTAP 7 multi-regional input-output model to quantify the incentives for companies in key steel-using sectors (such as property developers and automotive companies) to seek opportunities to improve material efficiency in their upstream supply chains under different short-run carbon price scenarios. Because of the underlying assumptions, the incentives are interpreted as overestimates. The principal result of the paper is that these generous estimates of the incentives for material efficiency caused by a carbon price are offset by the disincentives to material efficiency caused by labour taxes. Reliance on a carbon price alone to deliver material efficiency would therefore be misguided and additional policy interventions to support material efficiency should be considered. © 2013 Elsevier B.V.

An integrated representation of the services provided by global water resources

Water is essential not only to maintain the livelihoods of human beings but also to sustain ecosystems. Over the last few decades several global assessments have reviewed current and future uses of water, and have offered potential solutions to a possible water crisis. However, these have tended to focus on water supply rather than on the range of demands for all water services (including those of ecosystems). In this paper, a holistic global view of water resources and the services they provide is presented, using Sankey diagrams as a visualisation tool. These diagrams provide a valuable addition to the spatial maps of other global assessments, as they track the sources, uses, services and sinks of water resources. They facilitate comparison of different water services, and highlight trade-offs amongst them. For example, they reveal how increasing the supply of water resources to one service (crop production) can generate a reduction in provision of other water services (e.g., to ecosystem maintenance). The potential impacts of efficiency improvements in the use of water are also highlighted; for example, reduction in soil evaporation from crop production through better farming practices, or the results of improved treatment and re-use of return flows leading to reduction of delivery to final sinks. This paper also outlines the measures needed to ensure sustainable water resource use and supply for multiple competing services in the future, and emphasises that integrated management of land and water resources is essential to achieve this goal. © 2013 Elsevier Ltd.