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Environmental
Theme Sub-theme
Energy
Indicator
Components
Climate
Change
ENV1 GHG
emissions
from energy
production and
use per capita
and per unit of
GDP
– GHG emissions from energy
production and use
– Population and GDP
ENV2 Ambient
concentrations
of air pollutants
in urban areas
– Concentrations
of pollutants
in air
Atmosphere
Air Quality
ENV3 Air
pollutant
emissions from
energy systems
– Air pollutant emissions
Water Water
Quality
ENV4
Contaminant
discharges in
liquid effluents
from energy
systems
including oil
discharges
– Contaminant discharges in
liquid effluents
Soil Quality
ENV5
Soil area where
acidification
exceeds critical
load
– Affected soil area
– Critical load
Forest ENV6
Rate
of
deforestation
attributed to
energy use
– Forest area at two different
times
– Biomass utilization
ENV7
Ratio of solid
waste
generation to
units
of energy
produced
– Amount of solid waste
– Energy produced
ENV8
Ratio of solid
waste properly
disposed of to
total generated
solid waste
– Amount of solid waste
properly disposed of
– Total amount of solid waste
Land
Solid Waste
Generation
and
Management
ENV9
Ratio of solid
radioactive
waste to units of
energy produced
– Amount of radioactive waste
(cumulative for a selected
period of time)
– Energy produced
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Environmental
Theme Sub-theme
Energy
Indicator
Components
ENV10 Ratio of solid
radioactive
waste awaiting
disposal to total
generated solid
radioactive
waste
– Amount of radioactive waste
awaiting disposal
– Total volume of radioactive
waste
3.1
The Indicators as a Measure of Progress
Some of these indicators are unequivocal measures of progress; they clearly
distinguish between desirable and undesirable trends. Most of the social and
environmental indicators fall into this category, including such indicators as SOC4
(accident fatalities), ENV3 (air pollutant emissions from energy systems) and ENV6
(rate of deforestation attributed to energy use). However, some of these indicators also
must be taken in context; for example, depending on
the development choices made,
there may be a temporary rise in undesirable effects until a higher level of
development is achieved, representing a larger benefit that could outweigh the interim
disadvantages. Another example is when the availability of commercial fuels — for
example, kerosene — in developing countries increases the share of a household’s
income spent on energy (SOC2). This may not indicate a negative development from
a social perspective, since the collection of non-commercial fuelwood often involves
significant losses of productive time and the burning of the wood often has important
health consequences.
Other indicators are not designed to distinguish between ‘good’ and ‘bad’ but rather
describe and give an indication of an aspect of energy use. Most of the economic
indicators fall into this category. They include ECO1 (energy use per capita) and
ECO3 (efficiency of energy conversion and distribution). Energy use per capita might
be low in a given country because that country is very poor or because there is high
energy efficiency and the economy is based on services rather than on heavy industry.
The ratio of final to primary energy might be high because the country has a
rudimentary energy system where primary and final energy are the same, or it might
be high because the country has an advanced economy
and efficient energy
transformation.
The indicators need to be read in the context of each country’s economy and energy
resources. An economy that is dominated by primary extraction and processing will
have relatively high energy use per unit of gross domestic product (GDP) no matter
how efficient it is. This does not mean that the country should abandon development
of its resource base.
Structural changes to the economy must also be taken into account. For example,
building a large, modern aluminium smelter in a country that previously relied on
subsistence farming and foreign aid would result in a large increase in the ECO6
indicator (industrial energy intensities), but would also generate export revenues and
hence improve income levels.
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Nonetheless, the indicators taken together and in context, allowing for inherent
differences between countries, give a good picture of a country’s energy system. As
the indicators change over time, they will be good markers of progress and underlying
changes. This will guide policy and help guide decisions on investments in energy,
pollution control and industry.
Finally, the use of indicators can help answer questions about external costs, which
are often difficult to quantify. Energy markets
can and do accommodate the
internalization of some of the ‘external costs’ of energy through more or less efficient
responses to more or less correct economic and regulatory incentives. However, some
external costs are difficult to internalize, with the result that they will be borne by
society. Such externalities include ill health, environmental damage and decline in
property values caused by oil refineries, power lines and other energy facilities.
What cost is placed on a tonne of nitrous oxides emitted from a gas or coal power
station, a tonne of radioactive waste from a nuclear power station or a landscape
disrupted by wind turbines? What penalties or subsidies
1
does one give to each energy
technology? By quantifying energy intensity, accidents per unit of energy and
environmental consequences per unit of energy, indicators can permit comparative
assessment
of alternatives and strategies, and help policymakers to decide on
appropriate measures, including penalties or subsidies, to promote efficient and
sustainable energy development. Indicators to reflect the extent of internalization of
external costs are being developed and may be incorporated into the EISD in due
time.
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