Investing in built capital Flashcards
Define built capital.
The infrastructure that supports society, including telecomms, industrial parks, main streets, water and sewer systems, roads, etc.
Which economies rely on built capital?
Advanced
but also emerging as they develop
Renewables now dominate the energy market.
True or false?
False: despite increasing investment in renewables, FFs still dominate
Give 3 challenges for the energy sector.
- Energy poverty
- Public health hazards and pollution
- Energy security
Why is the renewable energy industry growing?
Due to falling costs and rapid deployment.
There has been rapid clean energy expansion in China.
By 2020, what is projected to happen?
By 2040, what is projected to happen?
Large-scale solar will become cheaper than gas-fired power stations.
If the country continues on its current trajectory, over half of China’s power will come from renewables.
Give 3 policy instruments that can help regulate the energy sector.
- Incentivising clean energy
- Phasing out FF subsidies
- Green public procurement
Give 2 examples of ‘incentivising clean energy’.
- Feed-in tariffs
2. Carbon taxation
Define feed-in tariffs.
Payments made to businesses generating their own electricity via methods that do not deplete natural resources, proportional to the amount of power generated
Feed-in tariffs are a popular, low controversy way to introduce clean energy.
True or false?
True
Give an example of a country aiming to phase out FFs.
What happened?
Egypt
In 2014 they introduced subsidy cuts as part of a 5-year programme to eliminate subsidies entirely.
It resulted in a 64% increase in diesel prices and a diffusion of shared modes of transport like car pooling.
Name 3 sectors with built capital that have high greening potential.
- Energy
- Transport
- Manufacturing
Despite urbanisation, most people still have their own car. If this remains the same, what are the 4 biggest challenges to the transport sector?
- Chronic traffic congestion
- GHGs emissions
- High dependency on FFs
- Air pollution
Name 5 policy instruments that can be used to green the transport sector.
- Effective land-use planning
- Regulation for fuel and vehicles
- Fiscal incentives
- Development of multimodal infrastructure
- Awareness campaigns of diversified mobility for health
Effective land-use planning can help to green the transport sector. How?
It reduces the distance for / eliminates commuting.
Give an example of regulations to green the transport sector.
Urban zoning
Give 2 examples of fiscal incentives to green the transport sector.
- Taxing inefficient vehicles
2. Free parking for car sharers
What fiscal incentives did Norway provide to green the transport sector?
What happened?
How was this beneficial to the environment?
From 2016, electric cars were exempt from almost all taxes. Plus, they got free or subsidised parking.
Electric cars accounted for over half of new registrations in 2017
Norway generates almost all of its electricity from hydropower, thus reducing GHG emissions / air pollution
What is the Avoid-Shift-Improve strategy? Give an example.
One that seeks to maximise different modes of transport in concert.
E.g. cycle lanes with pedestrianised areas
Give a case study of multimodal transport.
- What were the environmental benefits?
- What were the 4 social benefits?
Ecatepec in Mexico installed a cable car system as public transport.
- Prevents 4500 tonnes CO2 entering the atmosphere per day (equivalent to preventing 15,000 cars from circulating)
- Created jobs, improved workers’ commutes, attracts tourism and is safer (lots of robbery / assault on buses)
What are the 3 key challenges for greening the manufacturing sector?
- Natural resource scarcity / volatile commodity prices
- Industrial air pollution
- Hazardous substance / waste management
Define circular economy.
An economy in which products are designed to allow for maximal re-use of material during and at the end of their lifetime.
A key concept in circular economy is ‘cascading’.
What is cascading?
Give an example of cascading with clothing.
When a material has various uses along its lifecycle.
Starting with highest value usage: Retail clothing Second-hand clothing Insulation Filtration material
Give 3 policy instruments that can help to green the manufacturing sector.
- Tech performance standards with mandatory reporting
- Fiscal incentives (raise costs of unwanted outputs)
- Capacity building to increase understanding / application of latest production methods
