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4 Energy for Heat
Pages 222-247

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From page 222...
... Primary energy sources can be converted into useful energy that, for example, powers a vehicle, lights a building, or supplies heat for an industrial process, although the conversion process inevitably involves energy losses (which can be quite considerable) and often entails substantial costs" (NAS/NAE/NRC, 2009a)
From page 223...
... Common uses of energy associated with this sector include space heating, water heating, air conditioning, lighting, refrigera tion, cooking, and running a wide variety of other equipment. NOTE: This sector includes generators that produce electricity and useful thermal output primarily to support the activities of the above-mentioned commercial establishments.
From page 224...
... The industrial sector uses some petroleum and small amounts of other primary fuels. The magnitude of associated externalities is strongly influenced by the amount of a particular fuel used and the locations of use.
From page 225...
... including losses 225 FIGURE 4-2  U.S. energy consumption by source and sector, 2008 (quadrillion Btu)
From page 226...
... Therefore, opportunities for future reductions of nonclimate-change damages from energy use for heat in the building sectors, in particular, are likely to occur mainly through the incorporation of energy efficiency in the building structures and heat energy systems, as well as the inclusion of localized energy technologies, such as solar thermal water heating or geothermal heat pumps. HEAT IN RESIDENTIAL AND COMMERCIAL BUILDINGS Buildings in the United States consume about 39% of U.S.
From page 227...
... There are about 5 million commercial buildings in the United States (2003) that have about 75 billion square feet of floor space (EIA 2008e, Table A1)
From page 228...
... Because some of these uses are provided by electricity, an estimate for nonelectric heating for water heating and cooking is about 0.4 quads. This results in an energy-for-heat estimate for commercial buildings of about 2.8 quads total in 2003 (for 58.5 billion square feet of floor space)
From page 229...
... (in Quadrillion Btu) Energy Source Industrial Sector Residential Sector Commercial Sector Liquid fuelsa 9.96/8.35 1.35/1.10 0.63/0.59 Natural gas 8.02/8.47 4.86/5.06 3.10/3.53 Coal 1.83/2.23 0.01/0.01 0.07/0.06 Renewablesb 2.07/3.89 0.43/0.50 0.12/0.12 Total 21.88/22.94 6.65/6.67 3.92/4.30 NOTE: Total U.S.
From page 230...
... Estimation of Industrial Use of Energy for Heating Table 4-1 presents EIA industrial energy use estimates by primary fuel type for 2007 and presents their use projections to 2030. DOE's Annual Energy Review suggests facility heating in the industrial sector consumes about 10% of electricity and natural gas (EIA 2008a)
From page 231...
... industrial sector is so diverse and EIA energy statistics do not necessarily correspond to energy use for heat in this sector, the externalities attributable to industrial energy use for heat are difficult to separate from externalities associated with energy use for other industrial processes (Box 4-2)
From page 232...
... • Petroleum: 10 quads – 3 quads used as feedstock = 7 quads net • Natural Gas: 8 quads – 2 quads used as feedstock = 6 quads net • Coal: 1.8 quads = 1.8 quads net • Renewables (treat as biomass) : 2.1 quads = 2.1 quads net ESTIMATES OF EXTERNALITIES ASSOCIATED WITH ENERGY USE FOR HEAT It is much more difficult to make reliable estimates of the unpriced damages associated with energy use for heating in the buildings and industrial sectors than to evaluate such impacts for electricity generation or for transportation.
From page 233...
... GHG emission externalities that are linked to present and future changes in climate and the associated impacts are discussed in Chapter 5. Residential Buildings: Damage Estimates for Criteria Air Pollutants As shown in Table 4-1, iquid fuels and natural gas predominate in nonelectric energy consumption in residential buildings, and a small amount of coal is used.
From page 234...
... The median damage estimate is approximately 11 cents/MCF TABLE 4-2  Residential Sector Natural Gas Use for Heat: National Damage Estimates from Air Pollutants (Excluding Greenhouse Gases) (Cents/MCF)
From page 235...
... Regardless, the 90th percentile values in the South still represent damages at only 5% of the price of natural gas. These results can be used to compare the damages from natural gas combustion for heating with damages associated with using electricity for heat.
From page 236...
... (Damage Estimated from 2002 NEI Data for 3,100 Counties) Standard 5th 25th 50th 75th 95th Mean Deviation Percentile Percentile Percentile Percentile Percentile MIDWEST SO2 0.4 2 0 .05 .15 .22 .49 NOx 35 290 4 7 11 15 36 PM2.5 0.8 7 .05 .1 .18 .34 1.1 VOCs 1 9 .06 .13 .25 .44 1.4 NH3 0.4 2 0 0 0 .03 2.6 Total 46 370 5 9 14 19 47 (unweighted)
From page 237...
... Using the range of natural gas nonclimate-change damages would lead to results three times lower than electricity for heating at the 5th percentile, but at the 95th percentile, these natural gas damages would be about the same as nonclimate damages from using electricity for heating. Commercial Buildings: Damage Estimates for Criteria Air Pollutants Following a similar method, the externalities for commercial sector heating from burning natural gas were estimated.
From page 238...
... The level of detail for the residential and commercial sectors in the NEI, including fuel consumption by county, was not available for the industrial sector. While the NEI has estimates of emissions from industrial activities by county, disaggregating the emissions to include only estimates from the use of fuels for heating, and from industrial activities that would not be included elsewhere in this report, proved too problematic to overcome.
From page 239...
... Figure 4-5 also shows that the GHG emissions from the industrial sector have been declining since 2000, and the building sectors show only small increases. The EIA energy use projections for 2030 incorporate some consid 3000 Million tonnes of carbon dioxide 2500 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 Year Residential (tot)
From page 240...
... The estimates for nonelectric usage show a very small growth in energy use between now and 2030. Three efficiency studies, discussed later in this chapter, indicate that there is a good potential for achieving about 10-15% overall improvement in efficiency in the use of energy to produce heat in the industrial sector if more aggressive energy policies are adopted in the future (Interlaboratory Working Group 2000; IEA 2007; McKinsey 2007)
From page 241...
... Aggregate damages from combustion of natural gas for direct heat are estimated to be about $1.4 billion per year (2007 USD) , assuming the magnitude of effects resulting from heat production in industrial activities is comparable to those of the residential and commercial sectors.
From page 242...
... . Commercial Buildings Because space heating requirements are largely determined by the building envelope characteristics, there are limited opportunities for reducing the heating energy requirements for existing buildings.
From page 243...
... Green Building Rating System, which uses third-party experts to evaluate new commercial buildings (or renovations of existing facilities) for their overall environmental and community performance and award ratings based on criteria that include energy efficiency of design and construction, as well as ease of maintenance, quality of working environment, and waste minimization (U.S.
From page 244...
... , the initial construction or renovation of the building along passive solar design principles may result in significant externalities from manufacturing new insulation, windows, or other intensive construction materials. These initial impacts can be apportioned over the total operating life of the building to provide life-cycle annual impacts.
From page 245...
... Industrial Facilities NAS/NAE/NRC (2009d) devotes a chapter to the potential for energy efficiency improvements in the industrial sector and provides specific examples of how individual industry sectors can reduce energy demand through approaches including use of waste heat, and more efficient new technologies.
From page 246...
... Enabling and crosscutting technologies -- such as advanced sensors and controls, . . . and high temperature membrane separation -- could provide efficiency gains in many industries as well as throughout the energy system . . . ." SUMMARY Externalities associated with heat production come from all sectors of the economy -- residential and commercial buildings and industry. Most heat is generated from combustion of natural gas or from electricity.
From page 247...
... Aggregate damages associated with criteria-pollutant-forming emissions from the use of energy (primarily natural gas) for heating in the buildings and industrial sectors are low relative to damages from energy use in the electricity-generation and the transportation sectors.


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