Study on the Non-Energy Benefit (NEB) of Area-Wide Energy Utilization and Evaluation of the Marginal Abatement Cost

Abstract

To achieve the Kyoto Protocol target of carbon reduction in Japan, additional measures beyond individual building-scale are strongly required. Area-wide energy utilization is expected to play an important role, not only in improving energy efficiency, but also in enhancing utilization of renewable energy and unused thermal energy toward a low-carbon society. But so far there have been few initiatives that have been realized. One of the major hurdles is the lack of methods to convince stakeholders to collaborate towards implementation. This study focuses on non-energy benefits (NEBs), which are indirect benefits such as stimulating regional economies and environmental protection, as distinguished from the direct energy-benefit (EB) of utility costs reduction. Through the development of methods to classify and quantify various NEBs and to assign monetary values in the marginal abatement cost (MAC), area-wide energy utilization has been deemed to be more competitive among various carbon reduction measures. Customized marginal abatement cost curve evaluation has proven effective for encouraging stakeholders to implement.