Poverty eradication and climate change: Is there a conflict?

By Narasimha D. Rao, IIASA Energy Program

Many people associate raising living standards in developing countries with increases in greenhouse gas emissions. But would improving access to basic needs—such as water supply and nutrition to poor households in Africa—have the same impact on climate change as increasing affluence—people moving to the suburbs, buying bigger homes, and buying cars?

New research that we published this week shows that in fact, it may take fewer emissions to raise the poor’s basic living standards than it does to grow affluence. If this is the case, then progressive development policies may well support climate mitigation. Our new study suggests that climate research needs to focus on how countries’ emissions growth relates to the services people are provide. This could change how we think about development, and influence how we approach the Paris climate negotiations in 2015­ – a milestone many view as the last chance for international cooperation to guide humanity onto a safe path of climate stabilization.

Usripur, India. Photo Credit: Rajashree Khalap

There are many reasons why researchers have stumbled when thinking about poverty eradication and climate change mitigation. First, poverty is itself a debated concept. Much of the development community has moved beyond thinking of poverty just as income. We now include measures of other deprivations for example food, health, and education. But metrics abound, many of which are hard to quantify and aggregate. Second, the climate research community has yet to catch up on this shift when linking growth to human-induced greenhouse gases.  Countries’ growth pathways in climate scenarios are still represented solely in terms of GDP, which doesn’t say much about how that wealth is distributed or access to basic living standards. Third, data on the multiple dimensions of poverty are hard to come by, particularly for poor countries where they are needed most.

In our new study, we used available data on well-recognized poverty indicators – adequate nourishment, water supply and sanitation and electricity access – to relate countries’ growth over time to these indicators and to emissions. We found that while countries’ GDP has grown largely in proportion to emissions, access to these basic needs has grown in the majority of developing countries without proportionate emissions increases. Furthermore, in a handful of countries (such as Costa Rica, Armenia, Kyrgyzstan, and others) over 90% of the population have access to these basic needs with total emissions of less than five tons of CO2 equivalent per capita, which is well below the world average of 6.3 tons per capita.

A new study shows that raising the poor's basic living standards could lead to fewer greenhouse gas emissions than similar gains in already affluent populations. (Photo Credit: Dave Wilson via Flickr)

Hyderabad, India. Photo Credit: Dave Wilson via Flickr

Much more research is needed before we can assess whether other countries can raise living standards with low carbon emissions growth. Indeed, increased energy access is a primary driver of greenhouse gas growth, and the energy needs of basic human development aren’t well understood, although we have begun to characterize economy-wide energy needs besides providing modern energy to homes. Countries with different fuel endowments and climate may require different energy and emissions to achieve the same progress in human development.

Understanding the climate impacts of poverty alleviation can be useful for international climate policy. One can identify opportunities and challenges for basic human development within the limited carbon space available if we are to keep global average temperature rise within 2-3 degrees C. Second, it can offer a way to differentiate mitigation efforts among developing countries by recognizing and quantifying emissions associated with basic needs. The lack of a successful agreement on other efforts-sharing regimes over the last twenty years gives cause to chart new directions.

References

Rao, ND, Riahi K, and Grubler A. 2014. Climate impacts of poverty eradication. Nature Climate Change. 4,749–751 doi:10.1038/nclimate2340

Rao, ND, P. Baer. 2012, Decent living emissions: a conceptual framework. Sustainability 4 (4), 656-681. doi:10.3390/su4040656

Rao, ND. 2013. International and intranational equity in burden-sharing agreements for climate change mitigation. International Environmental Agreements: Politics, Law and Diplomacy, Volume 14, Issue 2, pp 129-146. doi:10.1007/s10784-013-9212-7

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

 

Innovating to address climate change

By Charlie Wilson and Arnulf Grubler, Tyndall Centre for Climate Change Research and IIASA Transitions to New Technologies Program 

Solar-powered flying skateboards: Central to your typical 8-year-old’s vision of a climate-friendly future, but, alas, destined only for the world of science fiction.

But all is not lost. Many other forms of energy technology innovation lie squarely within the realms of science. And scientists working on how to address climate change see innovation as key to addressing climate change.

Tower of technology innovation

“The history of energy innovation is littered with over-exuberance…”

The question is how do we innovate successfully? The history of energy innovation is littered with over-exuberance, pipe dreams, and white elephants. But it’s also marked by striking successes, such as the world-leading Danish wind power and Brazilian ethanol industries, or the energy efficiency of Japanese consumer products.

Our new book  scours the pages of history to work out what has distinguished past successes from failures. We cast a critical eye on twenty varied innovation histories of energy technologies, from large to small, old to new, and supply to end-use. We are interested both in the technologies that now dominate our landscape as well as technologies that have faded from public view.

Our motivation for the book was to find out: how can we innovate successfully to address climate change? We don’t come up with all the answers, but we do think we can point the way.

A systemic perspective on energy technology innovation

Successful innovation is like a puzzle: you need all the pieces to see the whole picture. But history shows us that innovation policy, research, analysis, and market activity have too frequently focused on a particular piece of the puzzle.

Research and development (R&D) is a good example. Energy-related R&D activities are dominated by private firms. But governments play a crucial role in supporting and investing in R&D with less immediate prospects and less certain pay-offs. When we looked at the history of R&D, we found that public R&D efforts often targeted early and rapid upscaling of promising new technologies. This was particularly the case for energy supply technologies, including wind turbines, solar thermal plants , synthetic fuels, and nuclear power.

Building big can help reduce costs. But cost reductions from upscaling are by no means guaranteed. They depend on all sorts of other things: experimentation and testing, often for prolonged periods; entrepreneurs trying out applications in different market niches; early adopters demonstrating its advantages; underlying investments in skills, training, and human capital; shared expectations around a technology’s prospects; mechanisms to share and exchange knowledge about what works; a consistent market environment without cyclical or stop-start activity that leads to turnover in workforces and the loss of acquired knowledge.

These are just some of the other pieces of the puzzle, elements of the broader innovation system. The cost reductions sought by policymakers and technology developers may be the corner piece that holds the rest together. But it doesn’t make a picture on its own.

This is why advocates of an Apollo program or Manhattan project for low-carbon technologies are wrong. These historical examples of singular science-led R&D programs are poor analogues for what’s needed in today’s energy market environment, with discerning consumers, profit-seeking developers, and cash-poor governments.

We need silver buckshot not silver bullets, diverse portfolios of options not one-shot, large-scale panaceas. Diversity means entrepreneurialism, risk-taking, variety, and experimentation in technology development, learning processes to sustain performance improvements through market deployment, and support for and protection of niche markets by public policy. More and more pieces of the puzzle.

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What does it take to bring down the costs of new technologies? A systemic approach to innovation is key.

Learning from history

Our book identifies the hallmarks of historical innovation successes and sets out how we can apply these lessons towards a low-carbon future. We put the puzzle together to reveal the picture of a comprehensive yet simple framework for analyzing energy technology innovation.

An innovation systems perspective makes transparently clear that successful innovation is founded on effectively functioning innovation systems. An inter-dependent mesh of knowledge, institutions, use, and resources that cohere to support new technologies through development and out into the market. With a critical role for consistent, continuous and aligned policy support for all the elements of the energy system.

That corner piece? Well, it’s an important piece of the puzzle … but it’s only a piece.

The book ‘Energy Technology Innovation: Learning from Historical Successes and Failures’ is edited by Arnulf Grubler and Charlie Wilson, and published by Cambridge University Press. It’s also available  on Amazon.com.

Contact: wilsonch@iiasa.ac.at or grubler@iiasa.ac.at  for more details.

Note: This article gives the views of the authors, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.