Pakistan's Energy Sector Issues: Energy Efficiency and Energy Environmental Links

By Husain, Tariq | The Lahore Journal of Economics, September 2010 | Go to article overview

Pakistan's Energy Sector Issues: Energy Efficiency and Energy Environmental Links


Husain, Tariq, The Lahore Journal of Economics


Abstract

This paper analyzes Pakistan's energy sector issues and highlights (i) the importance of the link between energy and the environment, and (ii) the central importance of energy efficiency for high return demand-side solutions to meet the country's energy needs. The paper argues that energy planning should integrate the external cost of energy use in deciding about the composition of supply: coal, oil, gas, hydropower, renewable, nuclear, and solar. By utilizing external cost estimates made by the European Commission for Europe, and the US National Academy of Sciences, a total cost (external + internal) ranking of primary energy sources for Pakistan is estimated. This estimate is at the low end of the cost spectrum because classic pollutants-sulfur dioxide, nitrogen oxides, carbon monoxide-in Pakistan are significantly higher than in Europe or the US. The paper also discusses the experiences of China and OECD countries in increasing energy-wide efficiency. A central lesson emerging from the analysis is that Pakistan will have to significantly increase its energy-related research and development expenditure in order to adequately address its energy sector issues. A quadrupling from 0.25 % of gross domestic product is recommended over a decade.

Keywords: Energy, policy, environment, Pakistan.

JEL Classification: Q48, Q47, Q5.

I. Introduction

Energy is the life blood of socioeconomic development. It is essential for technological applications that promote productivity increases. The three domains where energy is used are the production of electricity, the extraction/generation of thermal energy (heating and cooling), and transportation. During the past two centuries, fossil fuels (coal, oil, and gas) have been the main sources used to meet humanity's energy requirements. Currently, fossil fuel sustains about 80 percent of global energy needs. But these resources, formed by nature over millions of years, are finite. Large fossil fuel reserves are also unevenly distributed among countries. They are concentrated in a small number of countries with about half the low- and middle-income countries having no or very few oil and gas reserves. Even rich countries are not well endowed with oil and gas, although coal is more widely distributed.

Energy uses and national income per capita are positively correlated. Table-1 gives energy consumption per capita per year for selected countries. Pakistan consumes 490 kilograms of oil equivalent1 (kgoe), China 1,320 and the US, about 7,900. Although the availability of fossil fuel has enabled wealth creation by modern civilization, today we are faced with two major challenges in the utilization of energy. The first is to find adequate substitutes for the declining resources of fossil fuel. The second relates to the link between energy and the environment. The link is evident in all phases of energy production, conversion, and use. In Pakistan, the most serious energy-environment problems are the effects of the emission of particulate matter (TSP, PM10), indoor pollution from the use of biomass fuels, sulfur dioxide (SO2), nitrogen oxide (NOx), carbon monoxide (CO) and heavy metals (lead, mercury) generated by the use of fossil fuel for transportation and generation of electricity (see Table-2). While at the global level, Pakistan is not a significant contributor to the production of carbon dioxide (CO2) (producing 0.9 tons/capita), as we look ahead Pakistan could (like China at 4.6 T CO2/capita) become a significant contributor to climate change. The US generates 19 T CO2/capita and Canada 16.7, but France, due to its use of nuclear energy, generates only 6.2 T CO2/capita.

II. Energy Efficiency and the Energy-Environment Link

Energy efficiency is a measurable quantity. It is the ratio of energy input into a process to energy or work (electricity, heat, transportation) produced by that process. Conservation in use by the final consumer is an integral part of the energy efficiency of an economy. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Pakistan's Energy Sector Issues: Energy Efficiency and Energy Environmental Links
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.