United States
               Environmental Protection
               Agency
Air and Energy Engineering
Research Laboratory
Research Triangle Park NC 27711
               Research and Development
EPA/600/S9-91/019 Sept. 1991
EPA       Project Summary

               Analysis of Historical  Radiatively
               Important Trace Gases  (RITG)
               Emissions: Development of a
               Trace Gas Accounting  System
               (T-GAS)  for 14 Countries

               S. Piccot, T. Lynch, R. Kaufmann, C. Cleveland, and B. Moore
                 In September 1989, a study was com-
              pleted which focused on evaluating the
              feasibility of developing a country-spe-
              cific CO, emissions forecast model. One
              objective of this 1989 study was to de-
              velop a pilot scale emissions model
              which could be used to estimate energy
              consumption and CO, emissions for
              specific energy end-use sectors In  a
              country. Consistent with this objective,
              a pilot scale model was developed for
              Poland, South Korea, France, and India.
              The second objective of this study was
              to test or validate the methodology used
              in the model and, If the methodology
              proved to be viable, to develop a full
              scale model development plan. Analy-
              sis of the results from the pilot model
              showed  that the methodology was  a
              potentially viable tool for developing  a
              country-specific global  emissions
              model. Based in part  of this  finding,
              EPA decided to Initiate a more compre-
              hensive, Phase 2 study. This report sum-
              marizes the results of the Phase 2 study.
              The objectives of the  Phase  2 study
              were to: (1) develop and  test a CO,
              emissions model for 14 countries; (2)
              conduct a limited test of the  model's
              forecasting capability by estimating and
              comparing emissions forecasts for Po-
              land with forecasts developed by other
              models; and (3) use the model and ac-
              companying global  energy use data-
              bases to  summarize and  assess
              historical energy use  and emissions
              patterns for the  14 countries. A key
              outcome of the Phase 2 study was the
              development of model  algorithms and
              databases for the 14 countries. Other
 key outcomes were the development of
 software systems which facilitate the
 use of the algorithms and databases
 developed under this program, and
 Which assist In the manipulation and
 analysis of the model resuts. These al-
 gorithms, databases, and software sys-
 tems are referred to as the Trace Gas
 Accounting System (T-GAS).
   This Project Summary was devel-
 oped  by EPA's Air and Energy  En-
 gineering Research  Laboratory,
 Research Triangle Park,  NC, to  an-
 nounce key findings of the research
 project that Is fully documented In a
 separate report of the same title (see
 Project Report ordering Information at
 back).

 Introduction
   Identifying and assessing the most ap-
 plicable and effective mitigation strategy
 for a country requires that country-specific
 emission patterns be examined and that
 country-specific mitigation studies be con-
 ducted. Those  strategies which are ulti-
 mately identified as the best will vary from
 country to country depending on several
 highly country-specific factors such as its
 energy infrastructure,  energy resource
 base, political and social system, economic
 system, level of development, and the gen-
 eral health of the economy. As the debate
over greenhouse gases and mitigation strat-
egies continues, the need to conduct rep-
 resentative  country-specific case studies
which are consistent with these and other
factors  will continue to increase. It is this
need which  prompted the research de-
scribed in this report.

        ^69 Printed on Recycled Paper

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     In September 1989, a study was com-
  pleted which focused on evaluating the
  feasibility of developing a country-specific
  carbon dioxide (CO2) emissions forecast
  model. Key objectives of the 1989 study
  were to develop a pilot scale emissions
  model for energy related sources and to
  test or validate the methodology used in
  the model to estimate historical and future
  CO2 emissions. This study was referred to
  as  the Pilot Study, and  the  results  and
  recommendations for future research were
  summarized in a model development and
  implementation plan, which described the
  methodology used to develop a pilot scale
  emission model for Poland, South Korea,
  France, and India. The plan also summa-
  rized the results of an analysis performed
  to validate the country- and sector-specific
  emissions estimates developed by the pi-
  lot scale model.  Finally, the plan laid the
  groundwork for a full scale model develop-
  ment program based on the results of the
  Pilot Study.
    The methodology used to develop the
  pilot scale model differs from  other tech-
  niques applied to develop energy related
  CO2 emissions models.  In  general,  the
  model consists of regression equations that
 estimate the demand for  specific energy
 types (e.g., coal, oil, gas, electricity) in key
 energy end-use sectors of a country, in-
 cluding the  industrial, transportation, resi-
 dential,  commercial, and agricultural
 sectors. The input variables for these re-
 gression equations include standard eco-
 nomic and demographic variables such as
 GNP,*  fuel  prices, population, and  per-
 sonal consumption expenditures. The equa-
 tions are  developed by  performing
 regression analyses using historical en-
 ergy, economic,  and other data sets for
 each country. To estimate emissions for a
 country with the  model, the demand  for
 specific fuel  types in each sector is first
 estimated by the  regression equations for
 years for which economic and other input
 variables  are provided. These energy de-
 mand estimates are then  converted  into
 CO, emissions using country-specific emis-
 sion factors and information which charac-
 terize the performance and makeup of each
 country's secondary energy production sys-
 tem (e.g., electric utilities and refineries).
   A validation of the results from the pilot
 model showed that the methodology used
to develop the model represented a poten-
tially viable basis from which a country-
specific global emissions model could be
developed. As discussed earlier, a model
development  work plan was  prepared to
guide future work at the conclusion of the
pilot study. Based in part on these conclu-
  sions, EPA decided to initiate a more com-
  prehensive Phase 2 study. This report sum-
  marizes  the  findings  from this Phase 2
  study.

  Scope of the Phase 2 Study
     In the Phase 2 study, the basic meth-
  odology  developed under  the Pilot Study
  was used  to develop and validate CO2
  emission models for the 14 countries listed
  in Table 1. As for the Pilot Study, countries
  selected for the Phase 2 study represented
  a mix of differing  economic, social, and
  developmental characteristics.  The coun-
  tries  included those  participating in the
  IPCC (Intergovernmental Panel on Climate
  Change) process.
    A primary objective  of the  Phase  2
  study was  to develop and test the CO2
  emissions models developed for the  14
 countries listed in Table 1. Other key ob-
 jectives  were to conduct a limited test of
 the  model's forecasting capability and to
 use the models and accompanying global
 databases to examine historical energy
 and  emissions patterns. The equations,
 databases,  and computer software devel-
 oped in support  of these  objectives are
 referred to as the Trace Gas Accounting
 System (T-GAS),,
   Consistent with the above objectives,
 three technical analyses were conducted:
      For each of the 14 countries, T-GAS
      regression equations were estimated
      and the model framework was devel-
      oped. The representativeness of the
      results from the model was then ex-
      amined by comparing T-GAS results
      with established  energy and emis-
      sions databases. Where discrepan-
      cies were  identified,  assessments
      were conducted to identify the source
      of the discrepancies and, where pos-
      sible, the model was revised.
      Historical energy  use  data from the
      OECD and historical CO2 emissions
      estimates from T-GAS were devel-
      oped and summarized for each of
      the 14 countries.
  •    T-GAS emissions forecast capability
      was examined by conducting a lim-
      ited test forecast in which emissions
                were estimated for Poland from 1958
                to 2030 with T-GAS and the results
                were compared to other model re-
                sults developed for the IPCC.

           Development/Performance of
           Models for the 14 Countries
              The quantity and mix of fuels used to
           produce outputs vary greatly among sec-
           tors and nations. Nevertheless,  the eco-
           nomic  principles that  guide  a firm's
           technological  decisions can  be  used to
           analyze fuel consumption and assess the
           potential for change. As the price of a fuel
           rises, the impetus for technological change
           increases and the resultant change  can
           reduce the amount of fuel used to produce
           a unit of output. Similarly, as the price of
           one fuel rises relative to another,  substitu-
           tion allows firms to replace some fraction
           of the fuel whose price has risen with the
           fuel against which that  price has been
           registered. The key factors influencing
           these changes can be identified and quan-
           tified based on an econometric analysis of
           historical data. By assuming that such op-
           portunities  for technological change and
           fuel substitution persist, the behavioral re-
           sponses or response functions estimated
           from historical data can be useful in fore-
           casting the effect of future changes.
             The T-GAS model uses these response
          functions to estimate demand for coal, oil,
          gas, heat, and electricity. The results of
          the development of these response func-
          tions for each country are too complex to
          discuss in this summary but are discussed
          in detail by country in the full report. In-
          stead, this summary examines the perfor-
          mance of the equations developed  for each
          country.
             The representativness and performance
          characteristics  of T-GAS  response func-
          tions  were evaluated  by comparing a
          "backcast" of CO2 emissbns from the model
          with an  historical  CO2  emissions record
          developed for the U.S. Department of En-
          ergy (DOE)* for each of the 14 countries.


            Rotty. R.M. and G. Marland. Production of CO, from
            Fossil Fuel Burning by Fuel Type, 1860-1982. U S
            Department of Energy, 1984.
Table 1.     Countries in Phase 2 Study

OECD' Countries              Developing Countries

Franco
Italy
Japan
United Kingdom
United States
West Germany
                         Other Non-OECD Countries
Brazil
India
Mexico
South Korea
China
Hungary
Poland
Soviet Union
*  Gross national product
  Organization for Economic Co-operation and Development

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T-GAS backcasts were calculated by us-
ing historical economic and other data as
inputs to the  regression equations in the
model  to  calculate the fuel-specific de-
mand for energy. The amount of CO2 re-
leased was then estimated by multiplying
these energy demand estimates by coun-
try-specific CO2 emission factors.
   This model validation exercise attempts
to test the model's endogenous behavior,
such as the  regression equations which
are used to estimate energy demand. The
integrity of this validation is maintained in
several ways. First, the nations used in this
validation  represent a wide range of eco-
nomic systems, including developed econo-
mies, economies that have undergone rapid
development, developing economies, and
centrally planned economies. The equa-
tions for fuel intensity were estimated with
data from the period 1971 to 1985, but the
backcast extends  to the  late 1950s  (in
some cases)  and early 1960s, depending
on the availability  of historical economic
data. The timing of this break provides an
additional  test of the methodology, tf the
backcast reproduces the  DOE historical
CO2 record, it may indicate that the dra-
matic price changes of the 1970s and 1980s
did not change the behavioral relationship
between energy use and economic activ-
ity. In fact, such stability does appear to
occur and  indicates  that  the  behavioral
relationship that prevailed  in the  1970s
and 1980s can be used to forecast into the
1990s and the beginning of the next cen-
tury.
   Figures 1 through 14 compare the emis-
sions estimates developed  by T-GAS with
DOE emissions estimates. The  figures
show the  percent difference between T-
GAS DOE emission estimates for the years
examined in this study. The percent differ-
ence is defined  in the following manner:

 percent difference -
      ([T-GAS - DOE]/T-GAS)*100.
   The results  for the 14  countries are
presented in  order of  decreasing emis-
sions significance; i.e., those countries with
the greatest emissions are  presented first.
As the figures show,  T-GAS results are
generally in good agreement with the DOE
emission  estimates.  For most  countries
examined, T-GAS  emissions  are  usually
well within 10% of the DOE emission esti-
mates. The stated accuracy of the  DOE
record is ± 10%.
   The difference  between T-GAS and
DOE emissions is consistently higher than
10% for a few countries, including South
  Rotty, R.M. and G. Marland. Production of CO, from
  Fossil Fuel Burning by Fuel Type, 1860-1982. U.S.
  Department of Energy, 1984.
    40
    30
    20
    10
J-/0

$-20
   -30
   -40
   -50
      1961
    1965
                           1969
1973
                                   1977
                                                         1981
                              1985
Figure 1.
Percent difference between T-GAS and DOE emission estimates for the United
States from 1961 to 1986.
     50

     40

     30

     20

     10

     0
    -30
    -40
    -50
        1970    1972    1974    1976    1978     1980    1982    1984    1986
Figure 2.     Percent difference between T-GAS and DOE emission estimates for the Soviet
            Union from 1970 to 1986.
Korea, India, West Germany, and Mexico.
For South Korea, the results presented in
Figure 12 are somewhat misleading. Al-
though the differences shown for the late
1950s and early 1960s are high, the abso-
lute value of the difference between these
two methodologies is relatively small. In
fact, a detailed examination of the emis-
sions results for South Korea shows that
the model accurately predicts the rapidly
                             increasing energy and emissions use trends
                             which have occurred there since the early
                             1960s.
                                 For India, agreement between the two
                             methodologies is poor from about 1976 to
                             1985. In an effort to identify the reasons for
                             this poor agreement, the reliability of the
                             OECD energy  data used to develop T-
                             GAS response functions was examined. A
                             comparative study was conducted to com-

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         1969    1971     1973    1975    1977    1979    1981    1983    1985
 Figure 3.     Percent difference between T-GAS and DOE emission estimates for China from
             1969 to 1985.
     50

     40




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 5  -a,
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    -40

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Figure 4.
                                                              s
                                                                 '
                                                                      y
        1973
                  1975
                           1977
                                    1979
                                              1981
                                                       1983
                                                                 1985
            Percent difference between T-GAS and DOE emission estimates for Japan from
            1973 to 1986.
pare OECD energy data with other energy
databases developed for India. These com-
parisons revealed  no  serious discrepan-
cies with the OECD database and indicated
that the discrepancy between DOE and T-
GAS emission estimates might be attribut-
able to errors in the energy data used to
develop the DOE  data. The  DOE data
were developed in part from United Na-
tions energy data statistics, and the en-
ergy data comparisons conducted in the
T-GAS study reveal some unexplained data
                                         inconsistencies.  A  similar comparative
                                         study was conducted for Mexico and dis-
                                         crepancies were found between the OECD
                                         energy data used to develop T-GAS and
                                         the United Nations data sets used in the
                                         DOE record. Conclusions  could not  be
                                         reached as to which data set for Mexico
                                         was in error.
                                            West German emissions estimates for
                                         oil use, a  dominant  fossil fuel source of
                                         CO2 emissions in that country, agree rea-
                                         sonably well with  DOE for all years (the
 difference  is less than 10%). Coal  use
 compares well  in the early years but di-
 verges significantly from the DOE values
 starting about 1970 (T-GAS is higher than
 DOE). This divergence in coal use is a
 primary cause of the poor agreement be-
 tween the DOE and T-GAS total emissions
 estimates shown  in Figure 5. Closer ex-
 amination of the results shows that T-GAS
 total coal estimates  appear to be over-
 stated for many years in the 1970s and
 1980s.
 Summary of Historical
 Emissions and Energy Use
 Data
    In the process of developing the emis-
 sions backcasts discussed earlier, a sub-
 stantial volume of historical emissions data
 was developed for the 14 countries. These
 historical  emissions data and the historical
 energy use databases used to develop T-
 GAS can be used to examine historical
 emissions patterns of individual countries
 and to identify the factors  contributing to
 emissions changes within  a country.  By
 examining the factors which  have influ-
 enced emissions changes in the past, valu-
 able  information can be developed
 concerning how best to reduce emissions
 in the future, and what changes might be
 expected  as a result of implementing spe-
 cific emissions mitigation strategies. Such
 detailed assessments could not be con-
 ducted within the scope of this study. How-
 ever, a brief overview of the types of data
 developed in this study should provide the
 reader with  a basis  for assessing how
 such information could be used in perform-
 ing such assessments in the future. A more
 comprehensive summary of the historical
 emissions and energy data developed for
 each country is presented for each country
 in the full  report.
    Figures 15, 16, and 17  present esti-
 mates of  total CO2 developed by  T-GAS
 for the 14 countries evaluated. Figure  15
 shows historical emissions for the four
 countries  in this study that produce  the
 most  emissions. Figure 17 presents  the
 historical emissions associated with sev-
 eral developing countries, while Figure 16
 presents the historical emissions associ-
 ated with several European countries. Al-
 though  a  detailed  assessment of  these
 data was not conducted, some interesting
features in the data are noted. First, the
data show that CO2 emissions from sev-
eral major countries (e.g., France, Brazil,
Japan, West  Germany, the United King-
dom) have been declining over the years.
These emission reductions have occurred
in spite of  the fact  that the economies  of
many of these countries continue to grow.

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   Several different and complex reasons
for these emission reductions can be iden-
tified based on the data developed in this
study,  and each reason points to areas
where further mitigation evaluations should
be focused. Figure 17 compares CO2 emis-
sions for  developing  nations for  various
years.  As the figure shows, Brazil's emis-
sions trends are an anomaly compared to
those of other developing nations: growth
in emissions  has decreased dramatically
since the late 1970s. For many years, the
Brazilian electric utility sector has steadily
increased its use of non-fossil fuels (prima-
rily hydropower) to the point that over 90%
of the total electricity generated in the coun-
try comes from non-fossil fuel power plants.
This, coupled with the fact that during the
1970s  many energy end-use sectors (i.e.,
industrial, residential,  and agricultural) in
Brazil dramatically increased their use of
electricity, has significantly  contributed to
reductions in the use of fossil fuels. Clearly,
emissions  mitigation strategies aimed  at
reducing electricity consumption in Brazil
would  do little to  reduce CO2  emissions.
Instead, strategies aimed at reducing the
consumption of fossil  fuels in  major end-
use sectors seem  more appropriate. For
Brazil,  this includes the transportation sec-
tor, which accounted for about  50% of the
total fossil fuel consumption there in 1987.
Within  this sector, road transportation is
the most significant, accounting for 87% of
the total energy consumed. The  second
most significant consumer of fossil fuels is
air transport (7%), followed by  ship trans-
port (3%).
   Figures 18 and 19 show historical emis-
sions and  energy  use trends  associated
with Japan and the U.S., respectively. For
both countries, the figures can  be  used to
examine historical changes  in  the overall
CO2 emission intensity for each  country
(i.e., the amount of CO2 produced per unit
of total energy consumed). As Figure 18
shows, total emissions in Japan have been
increasing  slowly  relative to increases in
total energy  consumption.  As a conse-
quence, the emissions intensity in Japan
has decreased significantly from a value of
0.73 tons of carbon per TOE*  in 1973 to
0.60 tons of carbon per TOE in 1986 (al-
most a 20% reduction). On the other hand,
the emissions intensity  for the U.S. has
changed very little since the early 1960s.
Figure  19 shows that both total emissions
and total energy use have steadily in-
creased since the 1960s. In the early 1960s,
the emissions intensity was 0.72  tons  of
carbon per TOE. By 1987, the value had
decreased very little to 0.70 tons of carbon
per TOE (less than a 3% decrease). There
are several reasons that  Japan has re-
duced its emissions intensity so signifi-
cantly.  As  for  Brazil, Japan  has
simultaneously  expanded  its use of non-
fossil fuels at electric utilities and expanded
the role of electricity use as a major fuel in
several key sectors. Based on the regres-
                                      sion analysis  conducted to develop the
                                      response functions,  it  also appears that
                                      the energy intensity  associated with sev-
                                      eral major sectors has been  steadily de-
                                      creasing in Japan.  This indicates that
                                      energy is being used more efficiently and
                                      that the economy has steadily moved to-
                                      ward providing goods and services which
                                      do not require significant amounts of en-
                                      ergy to produce (e.g., electronics).
     50

     40 - - -

     30 - -
 70+~

  0

-704-
    -30 - -
    -40
    -50
         ZJ
7963
               1967
                               1971
1975
                                               1979
                                                                   1983
Figure 5.     Percent difference between T-GAS and DOE emission estimates for West Germany
            from 1963 to 1985.
                                                  1961
                                                          1964    1967   1970    1973
                                              1976
                                                  1979    1982
                                                                                                                 1985
*  Ton of oil equivalent.
                                           Figure 6.      Percent difference between T-GAS and DOE emission estimates for the United
                                                       Kingdom from 1961 to 1986.

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 Development/Analysis of an
 Emissions Forecast for Poland
    Although  the model was  used  in this
 study primarily to estimate and assess his-
 torical CO2 emissions, it can also be used
 to estimate future emissions  if values for
 future  economic and other variables are
                                      provided as inputs. Key objectives of the
                                      Phase 2 study were to examine the model's
                                      forecasting capability  and to assess  its
                                      ability  to  perform emissions  mitigation
                                      evaluations. The results of such an effort
                                      are presented for Poland. In general, Po-
                                      land was selected for this component of
                                      the study for several  reasons: (1) it is an
 50

 40

 30

 20

 10




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-30.

-40-

-50-
                  pn
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                               TC2C3
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Figure 7.
     i^    i  '   rm  '  *   i  •  '  i  •  *—i   •  '—r™1—'—i—1—'—i—«—i—r
   1958   1961   1964  1967  1970   1973   1976   1979  1982  1985

        Percent difference between T-GAS and DOE emission estimates for Poland from
        1958 to 1986.
     50

     40

     30




     10

      0

    -10




    -30-

    -40-
    -50
                                                      X
         • ^   i   '   i  '—i—'—r—i—i—i—i—i—i—i—i—i  i   i—r—i—i—-
        1962  1964  1966  1968  1970 1972  1974  1976  1978  1980  1982  1984


Figure 8.     Percent difference between T-GAS and DOE emission estimates for India from
            1962 to 1985.
  important case study in the mitigation evalu-
  ations conducted under the IPCC; and (2)
  the energy, economic, and political struc-
  ture in Poland poses challenges to the
  development of a representative emissions
  model for the country.
    The  Response Strategies Working
  Group of the  IPCC conducted an emis-
  sions mitigation study  for Poland.  In the
  IPCC study, several future emissions sce-
  narios were developed and evaluated us-
  ing a different emissions model. Using the
  T-GAS model developed for Poland,  an
  attempt was made to reproduce and com-
  pare the model results obtained in  the
  IPCC study by  using  scenario assump-
  tions from the  IPCC study as inputs to T-
  GAS.
    Two different emission scenarios were
  examined: the base case scenario and the
  structural change scenario. Both provide
 forecasts of emissions of CO2 from 1985 to
 2030. In the base case scenario, the IPCC
 study assumed the continuation of current
 trends; i.e., no important changes  in cur-
 rent trends  in the overall  structure of  the
 economy, patterns of energy end-use  de-
 mand, or energy efficiency. Depending on
 the year, base case economic growth  as-
 sumptions in the Polish economy range
 from  2.0 to 2.6% annual growth in GNP.
 The structural change scenario was devel-
 oped as  an IPCC  case study  in part to
 assess the  impact that restructuring the
 Polish industrial sector would have on emis-
 sions. Structural change is simulated by
 adjusting the growth rates of five industrial
 subsectors  included in both the T-GAS
 model and  the  IPCC study model  (e.g.,
 iron and steel production, chemical manu-
 facturing). Since the most energy intensive
 industries are assumed to grow more slowly
 than in the base case, the structural change
 scenario generally simulates a shift toward
 less energy intensive industries (e.g., away
 from steel production).  In general, growth
 rates for the five industrial subsectors are
 lower here than in the base case scenario.
 The structural change scenario takes into
 consideration improvements in living con-
 ditions, increases in the production of con-
 sumer goods, and  reduced  reliance  on
 heavy industries. The overall level of eco-
 nomic activity in the  structural change sce-
 nario is greater than in the  base case.
   The  emissions forecast for the base
case scenario is illustrated in Figure 20.
Emissions from  1958 to 1985  (i.e., the
non-forecast years)  are also shown in the
figure to provide the reader with an histori-
cal context  from  which to examine the
trends in future emissions. Total base case
emissions in Poland were estimated by  T-
GAS to be  194,100,000 metric tons  of

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 carbon by 2030. This represents an overall
 60% increase in emissions from 1985, or
 an annual average increase of 1.2% per
 year. This increase is on the low side of
 the  historical annual average  increases
 seen in Poland since the late 1950s. About
 84% of the emissions are associated with
 the  use of coal, 11% with the use of oil,
 and the remaining 5% with the use of gas.
 This is very similar to the current distribu-
 tion of emissions by fuel type and is con-
 sistent with historical fuel mix patterns seen
 in Poland. This fuel mix forecast can be
 considered reasonable if it can be assumed
 that Poland has sufficient energy reserves
 over the next 40 years to satisfy the  level
 of fossil fuel demand estimated  by the
 model. For coal, this assumption may be
 optimistic.
   The T-GAS estimate of total emissions
 for the base case is significantly lower than
 the estimates developed for the IPCC case
 study. In the IPCC base case, total emis-
 sions were estimated to be 263,700,000
 metric tons of carbon by 2030. This esti-
 mate is 35% higher than the T-GAS esti-
 mate  for  2030.  An  investigation  was
 conducted to identify the possible source
 of this discrepancy.  Several  potential rea-
 sons were identified. First,  in the  IPCC
 model it was assumed that no improve-
 ment in energy efficiency would occur over
 the efficiencies which existed in 1985 for
 each sector.  In T-GAS, energy efficiency
 improvement is allowed to occur in a man-
 ner which is consistent with changes in the
 factors that have influenced Polish energy
 efficiency change in the past. That is, the
 model allows a "business  as  usual" or
 base case efficiency improvement to oc-
 cur.  This is a key difference with the IPCC
 methodology and could  result in  T-GAS
 estimating lower energy consumption and
 subsequent emissions. It seems reason-
 able to assume that some improvement in
 energy efficiency  will occur  in  Poland by
 2030.
   A second potential source of discrep-
 ancy is that the IPCC model is not capable
 of projecting the future mix of primary en-
 ergy (e.g.,  coal, oil, gas, nuclear,  hydro).
 Instead, the mix is  assumed. In T-GAS,
 fuel mix is estimated based on the regres-
 sion equations developed from historical
 data sets. This is a key difference in the
 way  IPCC  and T-GAS models work  and
 could cause  significant variations  in  fuel
 mix and subsequent emissions estimates.
   Figure 21 shows the emissions esti-
 mated for the structural change scenario.
A comparison of the base case results with
the structural change  results shows  that
emissions decrease only slightly under the
structural change  scenario. For example,
I
8
1
a
1
40-
30-
20-
10-
0 -
-10-
-20 -
-30 -
-40-
-50-




™n*™m F3r^LR3™_nn

A



"v i--\-'i>'\iiiiiii -i 	 \ 	 1 	 1 	 1 	 r-
1963 1966 1969 1972 1975 1978 1981 1984
 Figure 9.      Percent difference between T-GAS and DOE emission estimates for France from
             1963 to 1985.
Percent Difference from DOE Record
40 -i
30 -
20 -
10 -
0-
-10 -
-20 -
-30 -
-40 -
-50 -




71 _f7l_ ™
>-^ [23 I/I l/j "-^ r?~1 L-^J I—" L/l •— " •— • LZJ «-*T^rrvi *~^ 	 — "•
LdM 121




^v l • • 1 • • I • • | • • | • • | 	 T- -i 	 1 	 1 	 1 	 j— ^i 	 r-
1962 1965 1968 1971 1974 1977 1980 1983
Figure 10.    Percent difference between T-GAS and DOE emission estimates for Italy from 1962
            to 1985.
total emissions in 2030 under  the  base
case scenario were estimated by T-GAS to
be 194,100,000 metric tons of carbon. To-
tal emissions for 2030 under the structural
change scenario were estimated by T-GAS
to be 182,314,000 metric tons of carbon;
about 6% less than the base  case. An
analysis of the results  indicates that,  al-
though some actions were taken to reduce
emissions under the structural change sce-
nario (i.e., efficiency gains  in industry and
transportation and reduced growth in en-
ergy intensive industrial subsectors), high
growth in the overall economy resulted in
significant energy increases that in some
cases overshadow the energy reductions
associated with the efficiency  improve-
ments specified for structural change. For
example, the consumption of total energy
(solid, liquid, and electricity) in the trans-
portation sector in 2030 was estimated to

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      50
      40
      20
      10
 I  """*
 2  -20
     -30
     -40
     -50
         1972
1974
                            1976
                  1978
                                             1980
                                                       1982
                                                               1984
                                                                        1986
 Figure 11.    Percent difference between T-GAS and DOE emission estimates for Mexico from
             1972 to 1986.
                       O*=r
                            /
        1958    1961    1964   1967   1970   1973   1976    1979    1982    1985

Figure 12.    Percent difference between T-GAS and DOE emission estimates for Soutf) Korea
            from 1958 to 1985.
be  17.8  MTOE* for the base case sce-
nario.  Total energy consumption in the
transportation sector was estimated to be
21.4 MTOE for the structural change sce-
nario even though greater energy efficiency
improvements were assumed to occur in
road transportation compared to the base
case. In general, T-GAS estimates that, as
the  Polish people become more wealthy
relative to the base case (as indicated by
                       the rapid increases in GDP** relative to the
                       base case), the demand for increased mo-
                       bility and other consumer related energy
                       activities will  increase significantly in Po-
                       land and could overshadow the benefits
                       associated with improved energy efficiency.
                          A comparison of the T-GAS and IPCC
                       results for the structural change scenario
                       shows that T-GAS estimates  are  again
                       tower than the results from the IPCC case
 study. In the IPCC case study, total emis-
 sions were estimated to be 231,000,000
 tons of carbon. Although this is about 20%
 higher than the T-GAS results, it is less of
 a discrepancy than existed when compar-
 ing the  base case results, where a 35%
 difference was identified.

 Summary/Conclusions
    The  forecasting exercise  for Poland
 described above suggests that T-GAS is
 capable of developing representative and
 credible emission estimates up to at least
 2030. Although the results obtained from
 T-GAS were consistently tower than the
 results from the IPCC model, the likely
 reasons  for the discrepancy were ex-
 plained. In at least one case, the T-GAS
 estimates may be more representative than
 the IPCC case study assumptions (i.e., in
 the base  case,  IPCC assumes  no effi-
 ciency improvements will occur, while T-
 GAS allows a "business as usual" efficiency
 improvement to occur). These  results also
 show that T-GAS is a useful analytic tool.
 For example, an analysis of  the results
 from the structural change scenario showed
 that even moderate increases  in the over-
 all economic activity of the country (i.e., as
 measured by GDP) can overshadow the
 emission reductions associated with a va-
 riety of major technological improvements.
    The results above also demonstrate
 that T-GAS is capable of performing de-
 tailed emissions mitigation evaluations for
 individual countries. Recall that,  in the struc-
 tural  change scenario, a complex set of
 scenario assumptions were represented in
 T-GAS which  were intended to simulate
 the  effects of simultaneous changes in
 technology efficiency,  economic activity,
 and industrial restructuring. Specifically,
 technology change aimed at improving en-
 ergy efficiency was  simulated  for several
 sectors and subsectors (e.g., road trans-
 portation, iron and steel production, chemi-
 cal  manufacturing,  pulp  and  paper
 production, light industry). Industrial restruc-
 turing was simulated by adjusting the eco-
 nomic growth  rates of energy intensive
 industries downward (e.g., iron and steel)
 and adjusting the economic growth rates
of less energy intensive industries upward.
  Million tons of oil equivalent.
                                            Gross domestic product.
                                                            8

-------
40 -
Is 30 -
f* 20-
Uj
8 «,
1
*~ n .
g U
5 -20 -
1
c -30 -
-40 -
-50 -





y/vA'/,^^ — —^ —
'/j L^-£_n




             1971
              1973
                                 1975
                                  1977
                                                     1979
                                                      1981
                                                                         1983
 Figure 13.    Percent difference between T-GAS and DOE emission estimates for Brazil from 1971 to 1984.
     o:
     UJ
50


40


30


20
         -10


         -20


         -30


         -40


         -50
   1962
                   /

             /
                     1965
                             1968
                             1971
                                               1974
                                                        1977
                                                       1980
                                                                         1983
Figure 14.     Percent difference between T-GAS and DOE emission estimates for Hungary from 1962 to 1985.

                                                               9

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          1960
                        1965
                                      1970
                                                   1975
                                                                 1980
                                                                              1985
Figure 15.     Comparison of CO, emissions for various years from the four largest emission sources evaluated in the study.
        260
    ^  240-
    •I   220-
    .o   160-
    |   140-
    I   120-

    I   1°°~
    |   *)-
    ?   60-
    I   ^>-
        20-
         0
        West Germany
           1960
                       1965
                                    1970
                                                  1975
-t—i—i—i
    1980
                                                                            1985
Figure 16.     Comparison of CO, emissions for various years from selected European countries.
                                                                10

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      I
      s
      I
      I
             7955
                      7962
7966
1970
  Figure 17.     Comparison of CO2 emissions for various years from the four developing nations.
                                 Total Energy Use in Million TOE
                           Total Emissions in Million Metric Tons of Carbon
                     1975
                                1977
                                           1979
                                                      1981
                                                                 1983
                                                                            1985
Figure 18.     Comparison of emissions and energy use data for Japan from 1973 to 1986.




                                                                  11

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     Q>

     5
     X
Ul

v
                               -— Total Energy Use in Billion TOE
                         Total Emissions in Billion Metric Tons of Carbon
            1961  1963 1965  1967 1969  1971  1973  1975 1977  1979 1981 1983  1985
 Figure 19.     Comparison of emissions and energy use data for the United States from 1961 to 1985.
       200.0
  I
  1

  I
                    O 7"GasGas
                    V TGas Oil
                    + TGas Coal
                    X TGas Total
         o.o
           1958  1964   1970    1976   1982   1988   1994  2000  2006  2012  2018  2024  2030
Figure 20.     T-GAS emissions estimates for Poland from 1958 to 2030 under the base case scenario.


                                                                 12

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      187.5
      175.0

      162.5

      150.0

      137.5

      125.0

      112.5

      100.0

      87.5

      75.0

      62.5

      50.0

<3    37.5

      25.0

      12.5

        0.0
          1958   1964  1970   1976   1982   1988  1994   2000   2006  2012  2018   2024  2030

Figure 21.     T-GAS emissions estimates for Poland from 1958 to 2030 under the structural change scenario.

                                                                   13
                                                                                 •&U.S. GOVERNMENT PRINTING OFFICE: 1991 - 548-028/40066

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 S. Pkxotand T. Lynch are with Alliance Technologies Corp., Chapel Hill, NC 27514:
   R. Kaufmann and C. Cleveland are with Boston Univ., Boston, MA 02215; and B.
   Moore is the the Univ. of New Hampshire, Durham, NH 03824.
 Paul Jeffrey Chappell is the EPA Project Officer, (see below).
 The complete report, entitled "Analysis of Historical Radiatively Important Trace Gases
   (RITG) Emissions: Development of a Trace Gas Accounting System (T-GAS) for 14
   Countries,' (Order No. PB91-216325/AS; Cost: $39.00, subject to change) will be
   available only from:
         National Technical Information Service
         5285 Port Royal Road
         Springfield,  VA 22161
         Telephone:  703-487-4650
 The EPA Project Officer can be contacted at:
         Air and Energy Engineering Research Laboratory
         U.S. Environmental Protection Agency
         Research Triangle Park, NC 27711
United States
Environmental Protection
Agency
Center for Environmental Research
Information
Cincinnati, OH 45268
      BULK RATE
POSTAGE & FEES PAID
 EPA PERMIT NO. G-35
Official Business
Penalty for Private Use $300
EPA/600/S9-91/019

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