IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v10y2017i2p158-d88934.html
   My bibliography  Save this article

The Impact of Shale Gas on the Cost and Feasibility of Meeting Climate Targets—A Global Energy System Model Analysis and an Exploration of Uncertainties

Author

Listed:
  • Sheridan Few

    (Grantham Institute, Imperial College London, Prince Consort Road, London SW7 2AZ, UK)

  • Ajay Gambhir

    (Grantham Institute, Imperial College London, Prince Consort Road, London SW7 2AZ, UK)

  • Tamaryn Napp

    (Grantham Institute, Imperial College London, Prince Consort Road, London SW7 2AZ, UK)

  • Adam Hawkes

    (Grantham Institute, Imperial College London, Prince Consort Road, London SW7 2AZ, UK)

  • Stephane Mangeon

    (Grantham Institute, Imperial College London, Prince Consort Road, London SW7 2AZ, UK)

  • Dan Bernie

    (Met Office Hadley Centre, FitzRoy Road, Exeter, Devon EX1 3PB, UK)

  • Jason Lowe

    (Met Office Hadley Centre, FitzRoy Road, Exeter, Devon EX1 3PB, UK)

Abstract

There exists considerable uncertainty over both shale and conventional gas resource availability and extraction costs, as well as the fugitive methane emissions associated with shale gas extraction and its possible role in mitigating climate change. This study uses a multi-region energy system model, TIAM (TIMES integrated assessment model), to consider the impact of a range of conventional and shale gas cost and availability assessments on mitigation scenarios aimed at achieving a limit to global warming of below 2 °C in 2100, with a 50% likelihood. When adding shale gas to the global energy mix, the reduction to the global energy system cost is relatively small (up to 0.4%), and the mitigation cost increases by 1%–3% under all cost assumptions. The impact of a “dash for shale gas”, of unavailability of carbon capture and storage, of increased barriers to investment in low carbon technologies, and of higher than expected leakage rates, are also considered; and are each found to have the potential to increase the cost and reduce feasibility of meeting global temperature goals. We conclude that the extraction of shale gas is not likely to significantly reduce the effort required to mitigate climate change under globally coordinated action, but could increase required mitigation effort if not handled sufficiently carefully.

Suggested Citation

  • Sheridan Few & Ajay Gambhir & Tamaryn Napp & Adam Hawkes & Stephane Mangeon & Dan Bernie & Jason Lowe, 2017. "The Impact of Shale Gas on the Cost and Feasibility of Meeting Climate Targets—A Global Energy System Model Analysis and an Exploration of Uncertainties," Energies, MDPI, vol. 10(2), pages 1-22, January.
  • Handle: RePEc:gam:jeners:v:10:y:2017:i:2:p:158-:d:88934
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/10/2/158/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/10/2/158/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gülen, Gürcan & Browning, John & Ikonnikova, Svetlana & Tinker, Scott W., 2013. "Well economics across ten tiers in low and high Btu (British thermal unit) areas, Barnett Shale, Texas," Energy, Elsevier, vol. 60(C), pages 302-315.
    2. Ajay Gambhir & Laurent Drouet & David McCollum & Tamaryn Napp & Dan Bernie & Adam Hawkes & Oliver Fricko & Petr Havlik & Keywan Riahi & Valentina Bosetti & Jason Lowe, 2017. "Assessing the Feasibility of Global Long-Term Mitigation Scenarios," Energies, MDPI, vol. 10(1), pages 1-31, January.
    3. Gracceva, Francesco & Zeniewski, Peter, 2013. "Exploring the uncertainty around potential shale gas development – A global energy system analysis based on TIAM (TIMES Integrated Assessment Model)," Energy, Elsevier, vol. 57(C), pages 443-457.
    4. Hilaire, Jérôme & Bauer, Nico & Brecha, Robert J., 2015. "Boom or bust? Mapping out the known unknowns of global shale gas production potential," Energy Economics, Elsevier, vol. 49(C), pages 581-587.
    5. Whitmarsh, Lorraine & Nash, Nick & Upham, Paul & Lloyd, Alyson & Verdon, James P. & Kendall, J.-Michael, 2015. "UK public perceptions of shale gas hydraulic fracturing: The role of audience, message and contextual factors on risk perceptions and policy support," Applied Energy, Elsevier, vol. 160(C), pages 419-430.
    6. Detlef Vuuren & Elmar Kriegler & Brian O’Neill & Kristie Ebi & Keywan Riahi & Timothy Carter & Jae Edmonds & Stephane Hallegatte & Tom Kram & Ritu Mathur & Harald Winkler, 2014. "A new scenario framework for Climate Change Research: scenario matrix architecture," Climatic Change, Springer, vol. 122(3), pages 373-386, February.
    7. Brian O’Neill & Elmar Kriegler & Keywan Riahi & Kristie Ebi & Stephane Hallegatte & Timothy Carter & Ritu Mathur & Detlef Vuuren, 2014. "A new scenario framework for climate change research: the concept of shared socioeconomic pathways," Climatic Change, Springer, vol. 122(3), pages 387-400, February.
    8. Philipp M. Richter, 2015. "From Boom to Bust? A Critical Look at US Shale Gas Projections," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    9. McGlade, Christophe & Speirs, Jamie & Sorrell, Steve, 2013. "Unconventional gas – A review of regional and global resource estimates," Energy, Elsevier, vol. 55(C), pages 571-584.
    10. McGlade, Christophe & Speirs, Jamie & Sorrell, Steve, 2013. "Methods of estimating shale gas resources – Comparison, evaluation and implications," Energy, Elsevier, vol. 59(C), pages 116-125.
    11. Elmar Kriegler & John Weyant & Geoffrey Blanford & Volker Krey & Leon Clarke & Jae Edmonds & Allen Fawcett & Gunnar Luderer & Keywan Riahi & Richard Richels & Steven Rose & Massimo Tavoni & Detlef Vuu, 2014. "The role of technology for achieving climate policy objectives: overview of the EMF 27 study on global technology and climate policy strategies," Climatic Change, Springer, vol. 123(3), pages 353-367, April.
    12. Elmar Kriegler & Jae Edmonds & Stéphane Hallegatte & Kristie Ebi & Tom Kram & Keywan Riahi & Harald Winkler & Detlef Vuuren, 2014. "A new scenario framework for climate change research: the concept of shared climate policy assumptions," Climatic Change, Springer, vol. 122(3), pages 401-414, February.
    13. Henry D. Jacoby & Francis M. O'Sullivan & Sergey Paltsev, 2012. "The Influence of Shale Gas on U.S. Energy and Environmental Policy," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    14. Ajay Gambhir & Tamaryn Napp & Adam Hawkes & Lena Höglund-Isaksson & Wilfried Winiwarter & Pallav Purohit & Fabian Wagner & Dan Bernie & Jason Lowe, 2017. "The Contribution of Non-CO 2 Greenhouse Gas Mitigation to Achieving Long-Term Temperature Goals," Energies, MDPI, vol. 10(5), pages 1-23, May.
    15. J. David Hughes, 2013. "A reality check on the shale revolution," Nature, Nature, vol. 494(7437), pages 307-308, February.
    16. Kristie Ebi & Stephane Hallegatte & Tom Kram & Nigel Arnell & Timothy Carter & Jae Edmonds & Elmar Kriegler & Ritu Mathur & Brian O’Neill & Keywan Riahi & Harald Winkler & Detlef Vuuren & Timm Zwickel, 2014. "A new scenario framework for climate change research: background, process, and future directions," Climatic Change, Springer, vol. 122(3), pages 363-372, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Torgrim Log & Wegar Bjerkeli Pedersen, 2019. "A Common Risk Classification Concept for Safety Related Gas Leaks and Fugitive Emissions?," Energies, MDPI, vol. 12(21), pages 1-17, October.
    2. Golam Muktadir & Moh’d Amro & Nicolai Kummer & Carsten Freese & Khizar Abid, 2021. "Application of X-ray Diffraction (XRD) and Rock–Eval Analysis for the Evaluation of Middle Eastern Petroleum Source Rock," Energies, MDPI, vol. 14(20), pages 1-16, October.
    3. Raimi, Daniel, 2019. "The Greenhouse Gas Impacts of Increased US Oil and Gas Production," RFF Working Paper Series 19-03, Resources for the Future.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vivek Srikrishnan & Yawen Guan & Richard S. J. Tol & Klaus Keller, 2022. "Probabilistic projections of baseline twenty-first century CO2 emissions using a simple calibrated integrated assessment model," Climatic Change, Springer, vol. 170(3), pages 1-20, February.
    2. Carl-Friedrich Schleussner & Joeri Rogelj & Michiel Schaeffer & Tabea Lissner & Rachel Licker & Erich M. Fischer & Reto Knutti & Anders Levermann & Katja Frieler & William Hare, 2016. "Science and policy characteristics of the Paris Agreement temperature goal," Nature Climate Change, Nature, vol. 6(9), pages 827-835, September.
    3. Fujimori, Shinichiro & Masui, Toshihiko & Matsuoka, Yuzuru, 2015. "Gains from emission trading under multiple stabilization targets and technological constraints," Energy Economics, Elsevier, vol. 48(C), pages 306-315.
    4. Mier, Mathias & Siala, Kais & Govorukha, Kristina & Mayer, Philip, 2023. "Collaboration, decarbonization, and distributional effects," Applied Energy, Elsevier, vol. 341(C).
    5. Wang, Huan & Chen, Wenying, 2019. "Modelling deep decarbonization of industrial energy consumption under 2-degree target: Comparing China, India and Western Europe," Applied Energy, Elsevier, vol. 238(C), pages 1563-1572.
    6. Price, James & Keppo, Ilkka, 2017. "Modelling to generate alternatives: A technique to explore uncertainty in energy-environment-economy models," Applied Energy, Elsevier, vol. 195(C), pages 356-369.
    7. van Sluisveld, Mariësse A.E. & Hof, Andries F. & Carrara, Samuel & Geels, Frank W. & Nilsson, Måns & Rogge, Karoline & Turnheim, Bruno & van Vuuren, Detlef P., 2020. "Aligning integrated assessment modelling with socio-technical transition insights: An application to low-carbon energy scenario analysis in Europe," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    8. Leibowicz, Benjamin D. & Krey, Volker & Grubler, Arnulf, 2016. "Representing spatial technology diffusion in an energy system optimization model," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 350-363.
    9. Cotterman, Turner & Small, Mitchell J. & Wilson, Stephen & Abdulla, Ahmed & Wong-Parodi, Gabrielle, 2021. "Applying risk tolerance and socio-technical dynamics for more realistic energy transition pathways," Applied Energy, Elsevier, vol. 291(C).
    10. Fujimori, S. & Kainuma, M. & Masui, T. & Hasegawa, T. & Dai, H., 2014. "The effectiveness of energy service demand reduction: A scenario analysis of global climate change mitigation," Energy Policy, Elsevier, vol. 75(C), pages 379-391.
    11. Hof, Andries F. & Carrara, Samuel & De Cian, Enrica & Pfluger, Benjamin & van Sluisveld, Mariësse A.E. & de Boer, Harmen Sytze & van Vuuren, Detlef P., 2020. "From global to national scenarios: Bridging different models to explore power generation decarbonisation based on insights from socio-technical transition case studies," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    12. Lamperti, Francesco & Bosetti, Valentina & Roventini, Andrea & Tavoni, Massimo & Treibich, Tania, 2021. "Three green financial policies to address climate risks," Journal of Financial Stability, Elsevier, vol. 54(C).
    13. Solberg, Birger & Moiseyev, Alex & Hansen, Jon Øvrum & Horn, Svein Jarle & Øverland, Margareth, 2021. "Wood for food: Economic impacts of sustainable use of forest biomass for salmon feed production in Norway," Forest Policy and Economics, Elsevier, vol. 122(C).
    14. Lanzi, Elisa & Dellink, Rob & Chateau, Jean, 2018. "The sectoral and regional economic consequences of outdoor air pollution to 2060," Energy Economics, Elsevier, vol. 71(C), pages 89-113.
    15. Speers, Ann E. & Besedin, Elena Y. & Palardy, James E. & Moore, Chris, 2016. "Impacts of climate change and ocean acidification on coral reef fisheries: An integrated ecological–economic model," Ecological Economics, Elsevier, vol. 128(C), pages 33-43.
    16. Kalkuhl, Matthias & Wenz, Leonie, 2020. "The impact of climate conditions on economic production. Evidence from a global panel of regions," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    17. McManamay, Ryan A. & DeRolph, Christopher R. & Surendran-Nair, Sujithkumar & Allen-Dumas, Melissa, 2019. "Spatially explicit land-energy-water future scenarios for cities: Guiding infrastructure transitions for urban sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 880-900.
    18. Richard Taylor & Ruth Butterfield & Tiago Capela Lourenço & Adis Dzebo & Henrik Carlsen & Richard J. T. Klein, 2020. "Surveying perceptions and practices of high-end climate change," Climatic Change, Springer, vol. 161(1), pages 65-87, July.
    19. Roson, Roberto & Damania, Richard, 2016. "Simulating the Macroeconomic Impact of Future Water Scarcity an Assessment of Alternative Scenarios," Conference papers 332687, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Phetheet, Jirapat & Hill, Mary C. & Barron, Robert W. & Gray, Benjamin J. & Wu, Hongyu & Amanor-Boadu, Vincent & Heger, Wade & Kisekka, Isaya & Golden, Bill & Rossi, Matthew W., 2021. "Relating agriculture, energy, and water decisions to farm incomes and climate projections using two freeware programs, FEWCalc and DSSAT," Agricultural Systems, Elsevier, vol. 193(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:10:y:2017:i:2:p:158-:d:88934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.