INVESTING IN INDUSTRIAL-INNOVATION - A RESPONSE TO CLIMATE-CHANGE

In this paper, we review industrial energy use and energy intensity tr ends, and discuss industrial decision making and how it relates to cha nges in energy intensity. Based on this review, me propose that polici es that promote technology innovation and investment in process equipm ent are most likely to lead to greater industrial energy efficiency. W e propose and analyse four such policies and project that with full im plementation of these policies, industrial energy consumption and carb on emissions will be reduced in 2010 by 12.4% and 12.1%, respectively, over the base case without changing economic growth. Reductions will increase to 35.65% and 33.1% in 2030. (C) 1998 Elsevier Science Ltd. A ll rights reserved.