Future Environmental Regulation Issues to Promote Energy Efficiency

Abstract

It is accepted that fossil fuel is the major source of energy in use today. The technology to use this fuel is well-developed and relatively safe. However, there are two fundamental problems facing the industry that is so dependent on this type of fuel. One, it is a limited resource with only decades of life left. Second is the pollution resulting from its use, primarily the $\mathrm{C}{\mathrm{O}}_2$ greenhouse gas generated, and acid rain from $\mathrm{N}{\mathrm{O}}_x$ and $\mathrm{S}{\mathrm{O}}_2$ . Until suitable substitutes are found, developed, and implemented, the next best option is to reduce the consumption of the fuel through higher efficiency. Recent research projects with regard to environmental issues send a clear signal to both governments and the energy manufacturing industry that they need to act quickly in order to sustain the environmental conditions. Cogeneration is a technology which can achieve this, but it is important that financial and taxation systems are designed and implemented in a way that recognizes a broader scope for accountability of the needs of industry. Due to increase in the world economy there is a need for further technological progress and environmental legislation. This paper describes a potential fiscal model which could be used to encourage the responsible use of modern clean cogeneration plants to reduce the environmental impact and to allow some political influence over fuel use.