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Matrix method for comparing system and individual energy return ratios when considering an energy transition

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  • King, Carey W.

Abstract

ERRs (Energy return ratios) are valuable metrics for understanding and comparing the contributions of individual energy technologies. It is also important to calculate ERRs in the context of a system, or economy, using a mix of energy technologies. In this paper I demonstrate a framework to simultaneously consider individual energy technology and system-wide ERRs using a process-based input–output model approach. I demonstrate the approach via an example calculating grid electricity ERRs assuming constant technology with only a shift in dominance from fossil to renewable technology. The framework also enables interpretation of changes in individual ERRs due to a shift from one technology to another, with implications for energy scenario analyses. Another finding of this paper is that the ERR GER (gross energy ratio, often assumed equal to EROImm (energy return on energy invested at the ‘mine mouth’)), is only well-defined for primary energy extraction and not energy carriers such as gasoline and electricity. NER (Net energy ratio) and NEER (net external energy ratio), also known as EPR (energy payback ratio), are the most appropriate metrics for describing energy carriers sold to consumers.

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  • King, Carey W., 2014. "Matrix method for comparing system and individual energy return ratios when considering an energy transition," Energy, Elsevier, vol. 72(C), pages 254-265.
    • Handle: RePEc:eee:energy:v:72:y:2014:i:c:p:254-265
    DOI: 10.1016/j.energy.2014.05.032
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    Cited by:

    1. King, Carey W., 2020. "An integrated biophysical and economic modeling framework for long-term sustainability analysis: the HARMONEY model," Ecological Economics, Elsevier, vol. 169(C).
    2. Aramendia, Emmanuel & Heun, Matthew K. & Brockway, Paul E. & Taylor, Peter G., 2022. "Developing a Multi-Regional Physical Supply Use Table framework to improve the accuracy and reliability of energy analysis," Applied Energy, Elsevier, vol. 310(C).
    3. Victor Court, 2019. "An Estimation of Different Minimum Exergy Return Ratios Required for Society," Biophysical Economics and Resource Quality, Springer, vol. 4(3), pages 1-13, September.
    4. Carey W. King, 2021. "Interdependence of Growth, Structure, Size and Resource Consumption During an Economic Growth Cycle," Papers 2106.02512, arXiv.org.
    5. Palmer, Graham, 2017. "An input-output based net-energy assessment of an electricity supply industry," Energy, Elsevier, vol. 141(C), pages 1504-1516.
    6. Ke Wang & Harrie Vredenburg & Jianliang Wang & Yi Xiong & Lianyong Feng, 2017. "Energy Return on Investment of Canadian Oil Sands Extraction from 2009 to 2015," Energies, MDPI, vol. 10(5), pages 1-13, May.
    7. Marta Bottero & Federico Dell’Anna & Vito Morgese, 2021. "Evaluating the Transition Towards Post-Carbon Cities: A Literature Review," Sustainability, MDPI, vol. 13(2), pages 1-28, January.
    8. Heun, Matthew Kuperus & Owen, Anne & Brockway, Paul E., 2018. "A physical supply-use table framework for energy analysis on the energy conversion chain," Applied Energy, Elsevier, vol. 226(C), pages 1134-1162.
    9. Carey W. King, 2016. "Information Theory to Assess Relations Between Energy and Structure of the U.S. Economy Over Time," Biophysical Economics and Resource Quality, Springer, vol. 1(2), pages 1-33, December.
    10. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 2: Total Economy Expenditure Perspective," Energies, MDPI, vol. 8(11), pages 1-22, November.
    11. Victor Court & Fizaine Floriane, 2023. "EROI Minimum et Croissance Economique," Working Papers hal-04087776, HAL.
    12. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 1: Single Technology and Commodity Perspective," Energies, MDPI, vol. 8(11), pages 1-26, November.
    13. Jarvis, Andrew, 2018. "Energy Returns and The Long-run Growth of Global Industrial Society," Ecological Economics, Elsevier, vol. 146(C), pages 722-729.
    14. Adrien Fabre, 2018. "Evolution of EROIs of Electricity Until 2050: Estimation Using the Input-Output Model THEMIS," Policy Papers 2018.09, FAERE - French Association of Environmental and Resource Economists.

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