Economics-Watching: How Green Innovation Can Stimulate Economies and Curb Emissions

[from IMF Blog, by Zeina Hasna, Florence Jaumotte & Samuel Pienknagura]

Coordinated climate policies can spur innovation in low-carbon technologies and help them spread to emerging markets and developing economies

Making low-carbon technologies cheaper and more widely available is crucial to reducing harmful emissions.

We have seen decades of progress in green innovation for mitigation and adaptation: from electric cars and clean hydrogen to renewable energy and battery storage.

More recently though, momentum in green innovation has slowed. And promising technologies aren’t spreading fast enough to lower-income countries, where they can be especially helpful to curbing emissions. Green innovation peaked at 10 percent of total patent filings in 2010 and has experienced a mild decline since. The slowdown reflects various factors, including hydraulic fracking that has lowered the price of oil and technological maturity in some initial technologies such as renewables, which slows the pace of innovation.

The slower momentum is concerning because, as we show in a new staff discussion note, green innovation is not only good for containing climate change, but for stimulating economic growth too. As the world confronts one of the weakest five-year growth outlooks in more than three decades, those dual benefits are particularly appealing. They ease concerns about the costs of pursuing more ambitious climate plans. And when countries act jointly on climate, we can speed up low-carbon innovation and its transfer to emerging markets and developing economies.

IMF research [archived PDF] shows that doubling green patent filings can boost gross domestic product by 1.7 percent after five years compared with a baseline scenario. And that’s under our most conservative estimate—other estimates show up to four times the effect.

The economic benefits of green innovation mostly flow through increased investment in the first few years. Over time, further growth benefits come from cheaper energy and production processes that are more energy efficient. Most importantly, they come from less global warming and less frequent (and less costly) climate disasters.

Green innovation is associated with more innovation overall, not just a substitution of green technologies for other kinds. This may be because green technologies often require complementary innovation. More innovation usually means more economic growth.

A key question is how countries can better foster green innovation and its deployment. We highlight how domestic and global climate policies spur green innovation. For example, a big increase in the number of climate policies tends to boost green patent filings, our preferred proxy for green innovation, by 10 percent within five years.

Some of the most effective policies to stimulate green innovation include emissions-trading schemes that cap emissions, feed-in-tariffs, which guarantee a minimum price for renewable energy producers, and government spending, such as subsidies for research and development. What’s more, global climate policies result in much larger increases in green innovation than domestic initiatives alone. International pacts like the Kyoto Protocol and the Paris Agreement amplify the impact of domestic policies on green innovation.

One reason policy synchronization has a prominent impact on domestic green innovation is what is called the market size effect. There’s more incentive to develop low-carbon technologies if innovators can expect to sell into a much larger potential market, that is, in countries which adopted similar climate policies.

Another is that climate policies in other countries generate green innovations and knowledge that can be used in the domestic economy. This is known as technology diffusion. Finally, synchronized policy action and international climate commitments create more certainty around domestic climate policies, as they boost people’s confidence in governments’ commitment to addressing climate change.

Climate policies even help spread the use of low-carbon technologies in countries that are not sources of innovation, through trade and foreign-direct investment. Countries that introduce climate policies see more imports of low-carbon technologies and higher green FDI inflows, especially in emerging markets and developing economies.

Risks of protectionism

Lowering tariffs on low-carbon technologies can further enhance trade and FDI in green technologies. This is especially important for middle- and low-income countries where such tariffs remain high. On the flipside, more protectionist measures would impede the broader spread of low-carbon technologies.

In addition, and given evidence of economies of scale, protectionism—with ultimately smaller potential markets—could stifle incentives for green innovation and lead to duplication of efforts across countries.

The risks of protectionism are exacerbated when climate policies, such as subsidies, do not abide by international rules. For example, local content requirements, whereby only locally produced green goods benefit from subsidies, undermine trust in multilateral trade rules and could result in retaliatory measures.

Beyond embracing a rules-based approach to climate policies, the advanced economies, where most green innovation occurs, have an important responsibility: sharing the technology so that emerging and developing economies can get there faster. Such direct technology transfers hold the promise of a double dividend for emerging markets and developing economies—reducing emissions and yielding economic benefits.

—This blog reflects research by Zeina Hasna, Florence Jaumotte, Jaden Kim, Samuel Pienknagura and Gregor Schwerhoff.

Science-Watching: Why Do Batteries Sometimes Catch Fire and Explode?

[from Berkeley Lab News, by Theresa Duque]

Key Takeaways
  • Scientists have gained new insight into why thermal runaway, while rare, could cause a resting battery to overheat and catch fire.
  • In order to better understand how a resting battery might undergo thermal runaway after fast charging, scientists are using a technique called “operando X-ray microtomography” to measure changes in the state of charge at the particle level inside a lithium-ion battery after it’s been charged.
  • Their work shows for the first time that it is possible to directly measure current inside a resting battery even when the external current measurement is zero.
  • Much more work is needed before the findings can be used to develop improved safety protocols.

How likely would an electric vehicle battery self-combust and explode? The chances of that happening are actually pretty slim: Some analysts say that gasoline vehicles are nearly 30 times more likely to catch fire than electric vehicles. But recent news of EVs catching fire while parked have left many consumers – and researchers – scratching their heads over how these rare events could possibly happen.

Researchers have long known that high electric currents can lead to “thermal runaway” – a chain reaction that can cause a battery to overheat, catch fire, and explode. But without a reliable method to measure currents inside a resting battery, it has not been clear why some batteries go into thermal runaway, even when an EV is parked.

Now, by using an imaging technique called “operando X-ray microtomography,” scientists at Lawrence Berkeley National Laboratory (Berkeley Lab) and UC Berkeley have shown that the presence of large local currents inside batteries at rest after fast charging could be one of the causes behind thermal runaway. Their findings were reported in the journal ACS Nano.

“We are the first to capture real-time 3D images that measure changes in the state of charge at the particle level inside a lithium-ion battery after it’s been charged,” said Nitash P. Balsara, the senior author on the study. Balsara is a faculty senior scientist in Berkeley Lab’s Materials Sciences Division and a UC Berkeley professor of chemical and biomolecular engineering.

“What’s exciting about this work is that Nitash Balsara’s group isn’t just looking at images – They’re using the images to determine how batteries work and change in a time-dependent way. This study is a culmination of many years of work,” said co-author Dilworth Y. Parkinson, staff scientist and deputy for photon science operations at Berkeley Lab’s Advanced Light Source (ALS).

The team is also the first to measure ionic currents at the particle level inside the battery electrode.

3D microtomography experiments at the Advanced Light Source enabled researchers to pinpoint which particles generated current densities as high as 25 milliamps per centimeter squared inside a resting battery after fast charging. In comparison, the current density required to charge the test battery in 10 minutes was 18 milliamps per centimeter squared. (Credit: Nitash Balsara and Alec S. Ho/Berkeley Lab. Courtesy of ACS Nano)
Measuring a battery’s internal currents

In a lithium-ion battery, the anode component of the electrode is mostly made of graphite. When a healthy battery is charged slowly, lithium ions weave themselves between the layers of graphite sheets in the electrode. In contrast, when the battery is charged rapidly, the lithium ions have a tendency to deposit on the surface of the graphite particles in the form of lithium metal.

“What happens after fast charging when the battery is at rest is a little mysterious,” Balsara said. But the method used for the new study revealed important clues.

Experiments led by first author Alec S. Ho at the ALS show that when graphite is “fully lithiated” or fully charged, it expands a tiny bit, about a 10% change in volume – and that current in the battery at the particle level could be determined by tracking the local lithiation in the electrode. (Ho recently completed his Ph.D. in the Balsara group at UC Berkeley.)

A conventional voltmeter would tell you that when a battery is turned off, and disconnected from both the charging station and the electric motor, the overall current in the battery is zero.

But in the new study, the research team found that after charging the battery in 10 minutes, the local currents in a battery at rest (or currents inside the battery at the particle level) were surprisingly large. Parkinson’s 3D microtomography instrument at the ALS enabled the researchers to pinpoint which particles inside the battery were the “outliers” generating alarming current densities as high as 25 milliamps per centimeter squared. In comparison, the current density required to charge the battery in 10 minutes was 18 milliamps per centimeter squared.

The researchers also learned that the measured internal currents decreased substantially in about 20 minutes. Much more work is needed before their approach can be used to develop improved safety protocols.

Researchers from Argonne National Laboratory also contributed to the work.

The Advanced Light Source is a DOE Office of Science user facility at Berkeley Lab.

The work was supported by the Department of Energy’s Office of Science and Office of Energy Efficiency and Renewable Energy. Additional funding was provided by the National Science Foundation.

Essay 106: World Watching: Project Syndicate—New Commentary

from Project Syndicate:

The EU’s EV Greenwash

by Hans-Werner Sinn

EU emissions regulations that went into force earlier this year are clearly designed to push diesel and other internal-combustion-engine automobiles out of the European market to make way for electric vehicles. But are EVs really as climate-friendly and effective as their promoters claim?

MUNICHGermany’s automobile industry is its most important industrial sector. But it is in crisis, and not only because it is suffering the effects of a recession brought on by Volkswagen’s own cheating on emissions standards, which sent consumers elsewhere. The sector is also facing the existential threat of exceedingly strict European Union emissions requirements, which are only seemingly grounded in environmental policy.

The EU clearly overstepped the mark with the carbon dioxide regulation [PDF] that went into effect on April 17, 2019. From 2030 onward, European carmakers must have achieved average vehicle emissions of just 59 grams of CO2 per kilometer, which corresponds to fuel consumption of 2.2 liters of diesel equivalent per 100 kilometers (107 miles per gallon). This simply will not be possible.

As late as 2006, average emissions for new passenger vehicles registered in the EU were around 161 g/km. As cars became smaller and lighter, that figure fell to 118 g/km in 2016. But this average crept back up, owing to an increase in the market share of gasoline engines, which emit more CO2 than diesel engines do. By 2018, the average emissions of newly registered cars had once again climbed to slightly above 120 g/km, which is twice what will be permitted in the long term.

Even the most gifted engineers will not be able to build internal combustion engines (ICEs) that meet the EU’s prescribed standards (unless they force their customers into soapbox cars). But, apparently, that is precisely the point. The EU wants to reduce fleet emissions by forcing a shift to electric vehicles. After all, in its legally binding formula for calculating fleet emissions, it simply assumes that EVs do not emit any CO2 whatsoever.

The implication is that if an auto company’s production is split evenly between EVs and ICE vehicles that conform to the present average, the 59 g/km target will be just within reach. If a company cannot produce EVs and remains at the current average emissions level, it will have to pay a fine of around €6,000 ($6,600) per car, or otherwise merge with a competitor that can build EVs.

But the EU’s formula is nothing but a huge scam. EVs also emit substantial amounts of CO2, the only difference being that the exhaust is released at a remove—that is, at the power plant. As long as coal– or gas-fired power plants are needed to ensure energy supply during the “dark doldrums” when the wind is not blowing and the sun is not shining, EVs, like ICE vehicles, run partly on hydrocarbons. And even when they are charged with solar– or wind-generated energy, enormous amounts of fossil fuels are used to produce EV batteries in China and elsewhere, offsetting the supposed emissions reduction. As such, the EU’s intervention is not much better than a cut-off device for an emissions control system.

Earlier this year, the physicist Christoph Buchal and I published a research paper [PDF, in German] showing that, in the context of Germany’s energy mix, an EV emits a bit more CO2 than a modern diesel car, even though its battery offers drivers barely more than half the range of a tank of diesel. And shortly thereafter, data published [PDF, in German] by Volkswagen confirmed that its e-Rabbit vehicle emits slightly more CO2 [PDF, in German] than its Rabbit Diesel within the German energy mix. (When based on the overall European energy mix, which includes a huge share of nuclear energy from France, the e-Rabbit fares slightly better than the Rabbit Diesel.)

Adding further evidence, the Austrian think tank Joanneum Research has just published a large-scale study [PDF, in German] commissioned by the Austrian automobile association, ÖAMTC, and its German counterpart, ADAC, that also confirms those findings. According to this study, a mid-sized electric passenger car in Germany must drive 219,000 kilometers before it starts outperforming the corresponding diesel car in terms of CO2 emissions. The problem, of course, is that passenger cars in Europe last for only 180,000 kilometers, on average. Worse, according to Joanneum, EV batteries don’t last long enough to achieve that distance in the first place. Unfortunately, drivers’ anxiety about the cars’ range prompts them to recharge their batteries too often, at every opportunity, and at a high speed, which is bad for durability.

As for EU lawmakers, there are now only two explanations for what is going on: either they didn’t know what they were doing, or they deliberately took Europeans for a ride. Both scenarios suggest that the EU should reverse its interventionist industrial policy, and instead rely on market-based instruments such as a comprehensive emissions trading system.

With Germany’s energy mix, the EU’s regulation on fleet fuel consumption will not do anything to protect the climate. It will, however, destroy jobs, sap growth, and increase the public’s distrust in the EU’s increasingly opaque bureaucracy.