Cointegration and causal relationships between energy consumption and output: Assessing the evidence from Australia

In this paper, we describe our investigation of the cointegration and causal relationships between energy consumption and economic output in Australia over a period of five decades. The framework used in this paper is the single-sector aggregate production function, which is the first comprehensive approach used in an Australian study of this type to include energy, capital and labour as separate inputs of production. The empirical evidence points to a cointegration relationship between energy and output and implies that energy is an important variable in the cointegration space, as are conventional inputs capital and labour. We also find some evidence of bidirectional causality between GDP and energy use. Although the evidence of causality from energy use to GDP was relatively weak when using the thermal aggregate of energy use, once energy consumption was adjusted for energy quality, we found strong evidence of Granger causality from energy use to GDP in Australia over the investigated period. The results are robust, irrespective of the assumptions of linear trends in the cointegration models, and are applicable for different econometric approaches.

Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach

This paper provides an empirical estimation of energy efficiency and other proximate factors that explain energy intensity in Australia for the period 1978-2009. The analysis is performed by decomposing the changes in energy intensity by means of energy efficiency, fuel mix and structural changes using sectoral and sub-sectoral levels of data. The results show that the driving forces behind the decrease in energy intensity in Australia are efficiency effect and sectoral composition effect, where the former is found to be more prominent than the latter. Moreover, the favourable impact of the composition effect has slowed consistently in recent years. A perfect positive association characterizes the relationship between energy intensity and carbon intensity in Australia. The decomposition results indicate that Australia needs to improve energy efficiency further to reduce energy intensity and carbon emissions. © 2012 Elsevier Ltd.

A reassessment of energy and GDP relationship: The case of Australia

This paper investigates the long- and short-run relationships between energy consumption and economic growth in Australia using the bound testing and the ARDL approach. The analytical framework utilized in this paper includes both production and demand side models and a unified model comprising both production and demand side variables. The energy-GDP relationships are investigated at aggregate as well as several disaggregated energy categories, such as coal, oil, gas and electricity. The possibilities of one or more structural break(s) in the data series are examined by applying the recent advances in techniques. We find that the results of the cointegration tests could be affected by the structural break(s) in the data. It is, therefore, crucial to incorporate the information on structural break(s) in the subsequent modelling and inferences. Moreover, neither the production side nor the demand side framework alone can provide sufficient information to draw an ultimate conclusion on the cointegration and causal direction between energy and output. When alternative frameworks and structural break(s) in time series are explored properly, strong evidence of a bidirectional relationship between energy and output can be observed. The finding is true at both the aggregate and the disaggregate levels of energy consumption.

Decomposition of energy-related CO2 emissions in Australia: Challenges and policy implications

Changes in energy-related CO2 emissions aggregate intensity, total CO2 emissions and per-capita CO2 emissions in Australia are decomposed by using a Logarithmic Mean Divisia Index (LMDI) method for the period 1978-2010. Results indicate improvements in energy efficiency played a dominant role in the measured 17% reduction in CO2 emissions aggregate intensity in Australia over the period. Structural changes in the economy, such as changes in the relative importance of the services sector vis-à-vis manufacturing, have also played a major role in achieving this outcome. Results also suggest that, without these mitigating factors, income per capita and population effects could well have produced an increase in total emissions of more than 50% higher than actually occurred over the period. Perhaps most starkly, the results indicate that, without these mitigating factors, the growth in CO2 emissions per capita could have been over 150% higher than actually observed. Notwithstanding this, the study suggests that, for Australia to meet its Copenhagen commitment, the relative average per annum effectiveness of these mitigating factors during 2010-2020 probably needs to be almost three times what it was in the 2005-2010 period-a very daunting challenge indeed for Australia's policymakers.

Energy-output linkages in Australia: Implications for emissions reduction policies

The study investigates the long-run and dynamic relationships between energy consumption and output in Australia using a multivariate cointegration and causality framework. Using both Engle-Granger and Johansen cointegration approaches, the study finds that energy consumption and real Gross Domestic Product are cointegrated. The Granger causality tests suggest bidirectional Granger causality between energy consumption and real GDP, and Granger endogeineity in the system. Since the energy sector largely contributes to carbon emissions in Australia, we suggest that direct measures to reduce carbon by putting constraints on the energy consumption would pose significant economic costs for the Australian economy.

Electronic Building Passport - Final Report: Project 2 National Energy Efficient Building Project Phase 2

The National Energy Efficient Building Project (NEEBP) Phase One report, published in December 2014, investigated “process issues and systemic failures” in the administration of the energy performance requirements in the National Construction Code. It found that most stakeholders believed that under-compliance with these requirements is widespread across Australia, with similar issues being reported in all states and territories. The report found that many different factors were contributing to this outcome and, as a result, many recommendations were offered that together would be expected to remedy the systemic issues reported. To follow up on this Phase 1 report, three additional projects were commissioned as part of Phase 2 of the overall NEEBP project. This Report deals with the development and piloting of an Electronic Building Passport (EBP) tool – a project undertaken jointly by pitt&sherry and a team at the Queensland University of Technology (QUT) led by Dr Wendy Miller. The other Phase 2 projects cover audits of Class 1 buildings and issues relating to building alterations and additions. The passport concept aims to provide all stakeholders with (controlled) access to the key documentation and information that they need to verify the energy performance of buildings. This trial project deals with residential buildings but in principle could apply to any building type. Nine councils were recruited to help develop and test a pilot electronic building passport tool. The participation of these councils – across all states – enabled an assessment of the extent to which these councils are currently utilising documentation; to track the compliance of residential buildings with the energy performance requirements in the National Construction Code (NCC). Overall we found that none of the participating councils are currently compiling all of the energy performance-related documentation that would demonstrate code compliance. The key reasons for this include: a major lack of clarity on precisely what documentation should be collected; cost and budget pressures; low public/stakeholder demand for the documentation; and a pragmatic judgement that non-compliance with any regulated documentation requirements represents a relatively low risk for them. Some councils reported producing documentation, such as certificates of final completion, only on demand, for example. Only three of the nine council participants reported regularly conducting compliance assessments or audits utilising this documentation and/or inspections. Overall we formed the view that documentation and information tracking processes operating within the building standards and compliance system are not working to assure compliance with the Code’s energy performance requirements. In other words the Code, and its implementation under state and territory regulatory processes, is falling short as a ‘quality assurance’ system for consumers. As a result it is likely that the new housing stock is under-performing relative to policy expectations, consuming unnecessary amounts of energy, imposing unnecessarily high energy bills on occupants, and generating unnecessary greenhouse gas emissions. At the same time, Councils noted that the demand for documentation relating to building energy performance was low. All the participant councils in the EBP pilot agreed that documentation and information processes need to work more effectively if the potential regulatory and market drivers towards energy efficient homes are to be harnessed. These findings are fully consistent with the Phase 1 NEEBP report. It was also agreed that an EBP system could potentially play an important role in improving documentation and information processes. However, only one of the participant councils indicated that they might adopt such a system on a voluntary basis. The majority felt that such a system would only be taken up if it were: - A nationally agreed system, imposed as a mandatory requirement under state or national regulation; - Capable of being used by multiple parties including councils, private certifiers, building regulators, builders and energy assessors in particular; and - Fully integrated into their existing document management systems, or at least seamlessly compatible rather than a separate, unlinked tool. Further, we note that the value of an EBP in capturing statistical information relating to the energy performance of buildings would be much greater if an EBP were adopted on a nationally consistent basis. Councils were clear that a key impediment to the take up of an EBP system is that they are facing very considerable budget and staffing challenges. They report that they are often unable to meet all community demands from the resources available to them. Therefore they are unlikely to provide resources to support the roll out of an EBP system on a voluntary basis. Overall, we conclude from this pilot that the public good would be well served if the Australian, state and territory governments continued to develop and implement an Electronic Building Passport system in a cost-efficient and effective manner. This development should occur with detailed input from building regulators, the Australian Building Codes Board (ABCB), councils and private certifiers in the first instance. This report provides a suite of recommendations (Section 7.2) designed to advance the development and guide the implementation of a national EBP system.

On energy-momentum tensors as sources of spin-2 fields

The improvement terms in the generalised energy-momentum tensor of Callan, Coleman and Jackiw can be derived from a variational principle if the Lagrangian is generalised to describe coupling between ‘matter’ fields and a spin-2 boson field. The required Lorentz-invariant theory is a linearised version of Kibble-Sciama theory with an additional (generally-covariant) coupling term in the Lagrangian. The improved energy-momentum tensor appears as the source of the spin-2 field, if terms of second order in the coupling constant are neglected.

Sustainable energy options for the future airport metropolis

Growth in aviation has resulted in large airports that can be described as Airport Metropolises. This thesis reviews a variety of sustainable energy options that are suitable for such airports, and presents a decision support framework that can be used to guide decision makers towards the adoption of sound sustainable energy projects and practices. The thesis demonstrates use of the decision support framework via a number of case studies and outlines a methodology which could be incorporated within a Decision Support System.

Energy use in Indian household sector - An actor-oriented approach

Over the years, significant changes have taken place with regard to the type as well the quantity of energy used in Indian households. Many factors have contributed in bringing these changes. These include availability of energy, security of supplies, efficiency of use, cost of device, price of energy carriers, ease of use, and external factors like technological development, introduction of subsidies, and environmental considerations. The present paper presents the pattern of energy consumption in the household sector and analyses the causalities underlying the present usage patterns. It identifies specific (groups of) actors, study their specific situations, analyse the constraints and discusses opportunities for improvement. This can be referred to ``actor-oriented'' analysis in which we understand how various actors of the energy system are making the system work, and what incentives and constraints each of these actors is experiencing. It analyses actor linkages and their impact on the fuel choice mechanism. The study shows that the role of actors in household fuel choice is significant and depends on the level of factors - micro, meso and macro. It is recommended that the development interventions should include actor-oriented tools in energy planning, implementation, monitoring and evaluation. The analysis is based on the data from the national sample survey (NSS), India. This approach provides a spatial viewpoint which permits a clear assessment of the energy carrier choice by the households and the influence of various actors. The scope of the paper is motivated and limited by suggesting and formulating a powerful analytical technique to analyse the problem involving the role of actors in the Indian household sector.

Rapid distortion of axisymmetric turbulence

A generalization of the isotropic theory of Batchelor & Proudman (1954) is developed to estimate the effect of sudden but arbitrary three-dimensional distortion on homogeneous, initially axisymmetric turbulence. The energy changes due to distortion are expressed in terms of the Fourier coefficients of an expansion in zonal harmonics of the two independent scalar functions that describe the axisymmetric spectral tensor. However, for two special but non-trivial forms of this tensor, which represent possibly the simplest kinds of non-isotropic turbulence and specify the angular distribution but not the wavenumber dependence, the energy ratios have been determined in closed form. The deviation of the ratio from its isotropic value is the product of a factor containing R, the initial value of the ratio of the longitudinal to the transverse energy component, and another factor depending only on the geometry of the distortion. It is found that, in axisymmetric and large two-dimensional contractions, the isotropic theory gives nearly the correct longitudinal energy, but (when R > 1) over-estimates the increase in the transverse energy; the product of the two intensities varies little unless the distortion is very large, thus accounting for the stress-freezing observed in rapidly accelerated shear flows.Comparisons with available experimental data for the spectra and for the energy ratios show reasonable agreement. The different ansatzes predict results in broad qualitative agreement with a simple strategem suggested by Reynolds & Tucker (1975), but the quantitative differences are not always negligible.

Energy and cities

Any plan for decoupling growth from fossil fuel use needs to prioritise locally appropriate, integrated and multi-faceted outcomes. Such transitions can be highly complex, given the physical and institutional characteristics of existing electricity infrastructure as well as various financial, technical and practical challenges. This Chapter applies a whole systems perspective to developing decoupling solutions, reflecting on the Dutch Sustainable Technology Development Program and Townsville City (Queensland, Australia). Key aspects considered include the need for demonstrating outcomes to multiple stakeholders, using pilot projects with integrated monitoring and evaluation, fostering collaborative approaches to energy management, cultivating cultures of ‘learning by doing’, and seeking synergies across multiple agendas.

Hierarchical modelling of acclimatory processesstar, open

The term acclimation has been used with several connotations in the field of acclimatory physiology. An attempt has been made, in this paper, to define precisely the term “acclimation” for effective modelling of acclimatory processes. Acclimation is defined with respect to a specific variable, as cumulative experience gained by the organism when subjected to a step change in the environment. Experimental observations on a large number of variables in animals exposed to sustained stress, show that after initial deviation from the basal value (defined as “growth”), the variables tend to return to basal levels (defined as “decay”). This forms the basis for modelling biological responses in terms of their growth and decay. Hierarchical systems theory as presented by Mesarovic, Macko & Takahara (1970) facilitates modelling of complex and partially characterized systems. This theory, in conjunction with “growth-decay” analysis of biological variables, is used to model temperature regulating system in animals exposed to cold. This approach appears to be applicable at all levels of biological organization. Regulation of hormonal activity which forms a part of the temperature regulating system, and the relationship of the latter with the “energy” system of the animal of which it forms a part, are also effectively modelled by this approach. It is believed that this systematic approach would eliminate much of the current circular thinking in the area of acclimatory physiology.

Kinetics of formalization of poly(vinyl acetate)

Kinetic information on the formation of poly(vinyl formal) by the reaction of poly(vinyl acetate) and formaldehyde in presence of aqueous acid has been derived from the spectroscopic analysis of polymer samples after different periods of reaction. The hydroxyl content of poly(vinyl formal) is found to be nearly independent of reaction time and only slightly affected by temperature while the fall of acetate content and the increase in formal content are most rapid in the initial period and are largely influenced by temperature. The rate expression formulated on the assumption that the formalization reaction is of first order with respect to both poly(vinyl acetate) and formaldehyde explains the observed variation of polymer composition with reaction time. The activation energy for the reaction is found to be 17.3 kcal/mol.

Milking Diatoms for Sustainable Energy: Biochemical Engineering versus Gasoline-Secreting Diatom Solar Panels

In the face of increasing CO2 emissions from conventional energy (gasoline), and the anticipated scarcity of Crude oil, a worldwide effort is underway for cost-effective renewable alternative energy sources. Here, we review a simple line of reasoning: (a) geologists claim that Much crude oil comes from diatoms; (b) diatoms do indeed make oil; (c) agriculturists Claim that diatoms could make 10-200 times as much oil per hectare as oil seeds; and (d) therefore, sustainable energy could be made from diatoms. In this communication, we propose ways of harvesting oil from diatoms, using biochemical engineering and also a new solar panel approach that utilizes genomically modifiable aspects of diatom biology, offering the prospect of ``milking'' diatoms for Sustainable energy by altering them to actively secrete oil products. Secretion by and milking of diatoms may provide a way around the puzzle of how to make algae that both grow quickly and have a very high oil content.

Indoor air quality and energy management through real–time sensing in commercial buildings

Rapid growth in the global population requires expansion of building stock, which in turn calls for increased energy demand. This demand varies in time and also between different buildings, yet, conventional methods are only able to provide mean energy levels per zone and are unable to capture this inhomogeneity, which is important to conserve energy. An additional challenge is that some of the attempts to conserve energy, through for example lowering of ventilation rates, have been shown to exacerbate another problem, which is unacceptable indoor air quality (IAQ). The rise of sensing technology over the past decade has shown potential to address both these issues simultaneously by providing high–resolution tempo–spatial data to systematically analyse the energy demand and its consumption as well as the impacts of measures taken to control energy consumption on IAQ. However, challenges remain in the development of affordable services for data analysis, deployment of large–scale real–time sensing network and responding through Building Energy Management Systems. This article presents the fundamental drivers behind the rise of sensing technology for the management of energy and IAQ in urban built environments, highlights major challenges for their large–scale deployment and identifies the research gaps that should be closed by future investigations.