Saturday, March 9, 2013

ICT as an Enabling Technology

This post provides an overview of how ICT enables savings of greenhouse gas emissions in society. Therefore an interactive mind map is presented, which relates and describes the common terms and concepts in this context. The branches of the mind map define the highest-level entities of a classification structure for approaches and applications of ICT for a Low Carbon Society. This structure has two dimensions: The main principles (optimization and dematerialization) and the application areas (public and economic sectors).

Explore the Mind Map to learn about ICT as an Enabling Technology


The central entity of the diagram reflects the central role of ICT as Enabling Technology in the whole context of achieving sustainability improvements by using ICT systems. The ICT sector as well as other sectors are the key players in this system. Every economic sector has a carbon footprint that is used as a measure of sustainability and can therefore be used to benchmark the progress of reaching the environmental goals. The enabling effect of ICT is based on the capability to optimize and dematerialize, which leads whether directly, or as a side-effect of energy efficiency, to emissions savings. Energy efficiency and emissions savings contribute to sustainability by reduced resource consumption and a lower greenhouse gas concentration in the atmosphere. Also the rebound effect has to be kept in mind, which is an implication of energy efficiency and partly offsets the emissions savings achieved by efficiency improvements. The aim of reaching sustainability exists in respect to the ongoing Climate Change, which is accelerated by greenhouse gas emissions.

Classification of ICT for a Low Carbon Society

Explore the Mind Map to learn about ICT for a Low Carbon Society!



The presented classification structure has two dimensions or points of view to categorize the approaches. On the one hand every approach can be assigned to a main principle of how it can contribute to a low carbon economy. Such a contribution needs concepts for the reduction of energy usage and emissions. There are two main concepts that could be identified by looking at state of the art approaches. On the one hand emissions can be directly avoided by "dematerialization". In this context dematerialization is the substitution of physical products or routes of transportation by its digital equivalent. For example, letters can be replaced by electronic mail and video conferences can be held instead of physical meetings.
On the other hand products and processes can be optimized in order to save energy and reduce emissions. Therefore the taxon optimization refers to the improvement of processes and facilities regarding to energy consumption. Current approaches try to obtain this optimization by increased efficiency of units or systems (e.g. Thin Clients), or a higher grade of automation (e.g. lighting) and optimized coordination (e.g. logistics) in processes.
The second dimension of this classification is a somehow natural categorization of the approaches, since reductions in emissions can only be achieved in areas where energy is consumed and emissions arise. These areas are defined as application areas of the current approaches in using ICT to reduce emissions and mainly represent economic sectors. The taxa in the application area dimension are the energy use in buildings, the transportation of passengers and goods, the energy supply industry, the industry and business sector, the public sector and the ICT sector.

Main Principle Dimension

There are two concepts that differentiate the approaches in the highest level of the main principle dimension. On the one hand there is dematerialization, as Information Technology has the ability to replace physical objects and processes. On the other hand, energy savings can be achieved by optimization, which constitutes the second main principle. For each of these main principles the object of application can be distinguished. This means that the concept of dematerialization as well as the concept of optimization can be applied to either a physical object, which can be a product or a production unit, or to a process, like a production process or the process of traveling. In case of the optimization of processes approaches differ once more, since some are based on automation and others on improved coordination.

Dematerialization 

One important feature of ICT regarding to sustainable development is dematerialization. The SMART 2020 report published by The Climate Group in 2008 postulates a “strong emphasis on the significant opportunities offered by dematerialisation” and states in this context: “Our study indicates that using technology to dematerialise the way we work and operate across public and private sectors could deliver a reduction of 500 MtCO2e in 2020 - the equivalent of the total ICT footprint in 2002, or just under the emissions of the UK in 2007.” [1] A graphical illustration of this estimation is given in figure 1.
This indicates that the potential of emissions savings through dematerialization is estimated to be quite large. It could also be a main concept to arrange further growth and development with a lower intensity of environmental impact. This implies a higher level of efficiency achieved by learning by experience and a declining consumption of goods and energy because of dematerialization [2].

When dealing with dematerialization enabled by ICT, it has to be distinguished between products and routes of transport, although the borders between these categories are not completely sharp. For example the e-initiatives of governments (e-government) could be classified by both taxa, because they dematerialize the use of paper, as well as routes of transport, since citizens save travel ways to governmental departments by using online services. In this taxonomy the approach of the e-government is classified as dematerializing routes of transport, because the paperless office is considered as a separate concept, which is obviously a product-dematerializing concept.

Although the ability to replace physical products and processes is assumed to be one of the big environmental benefits of ICT, there is some kind of uncertainty regarding to the real potential of dematerialization in the future. The success of every kind of technology strongly depends on adoption, which cannot be predicted in preposition [1]. As an example, the idea of the paperless office goes back to the age of early personal computers in the 1970’s [3], but its distribution is still in development due to difficulties in adoption. With the introduction of electronic mail the usage of paper was expected to decline, but users tended to print their mails at the office, so that paper consumption actually increased [4]. Therefore the future impact of dematerialization will among other things depend on the inertia of consumer habits and the incentives for adoption for businesses.


Figure 1: The potential impact of dematerialization [1]

Optimization 

The second main principle of approaches that use ICT to enable emissions savings is optimization, which is a very general term that leaves room for interpretation. To clarify this term, optimization makes things more efficient regarding to energy consumption or the usage of other resources. In opposition to the concept of dematerialization, the focus of the principle of optimization is not the replacement of things by ICT. In this case, ICT enables improvements in energy consumption and emissions reductions by making units or processes more efficient. Therefore, in the taxonomy the optimization potential of ICT is split up into unit efficiency and the optimization of processes. The first taxon groups together approaches which improve the energy efficiency of machines, production units, devices or any other physical object. Process optimization is divided into two main concepts, where automation is one and coordination the other. Automation makes use of technology to execute tasks without the need for manpower. Alongside production processes this principle is also used in lighting systems in buildings for example. The taxon coordination stands for improved coordination of processes and work flows by using information and communication technology. This involves computer applications used to optimize transport routes, as well as smart grids developed to coordinate energy supply more efficiently. Optimization can also be considered as making things smart, as ICT enables to build smart motor systems and to improve energy efficiency in buildings and transport by smart buildings and smart logistics [1]. One the one hand the term smart stands for a kind of intelligence that inheres these improved units or processes, on the other hand The Climate Group defines the actions the ICT sector can take to improve the global emissions situation by the five letters of SMART [5]:
  • Standardization of how energy consumption and information about emissions can be traced and made accessible throughout different processes in economy. 
  • Monitoring of energy consumption and emissions in real time. 
  • Accountability for energy consumption and emissions should be established beside other business priorities. This can be achieved by the application of network tools. 
  • Rethinking about how we should live, learn, play and work in a low carbon society, enabled by ICT as an information platform, which can also help working together to gain efficiency improvements. 
  • Transformation of the economy will happen if the enabling effect of ICT can be turned to account. 

This assessment of The Climate Group concerning the optimization potential of ICT suggests that Information Technology can support and enable a transformation process to a low carbon economy and society in a great extent. But this implies the acceptance and commitment of other economic sectors and governments.

 

Application Area Dimension

The application areas where ICT is used to achieve improvements in energy efficiency or emissions savings mainly correspond to the economic sectors with the highest energy demand. The results of the classification show, that there are various approaches that make use of information and communication technologies to affect energy efficiency and the amount of greenhouse gas emissions in nearly every economic sector. This fact postulates once more the role of ICT as enabling technology for energy and emissions savings, as it can be found in literature [6, 1]. On the other hand there are also some approaches concerning energy savings in the ICT sector, which can directly contribute to decrease greenhouse gas emissions by making ICT systems more energy efficient. But these concepts, summarized as Green IT, also strengthen the enabling effect of ICT.
The presented classification of the application area dimension highlights that the general concepts defined in the main principle dimension can be applied in many different areas. For example, the concept of dematerialization is applied to transport, business and public sector, as ICT can substitute transport routes and products in each of these areas.

Approximations of the possible ICT-enabled emissions savings in all other economic sector are quantified by 7,8 GtCO2e by 2020, when assuming total emissions of 51,9 GtCO2e [1]. For this estimation the SMART 2020 Report considers four general application areas: Industry, Transport, Buildings and Power (cf. figure 2). For each of these areas ICT brings so called “SMART opportunities”, in form of “Smart motors and industrial processes”, “Smart logistics”, “Smart buildings” and “Smart grids” [1]. The concept of dematerialization provides benefits for all areas except of the power sector. There is one difference between the results of this observation by The Climate Group and the conclusion of this thesis. The taxonomy of this thesis defines the public sector as separate application area for ICT approaches, whereas in figure 2 this is considered as part of dematerialization opportunities in other sectors. In fact, there are governmental initiatives like e-government or e-health that are initiated by the public sector and therefore have to be classified in this context.


Figure 2: The enabling effect of ICT estimated by The Climate Group [1]

References

[1] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[2] J.H. Ausubel and P.E. Waggoner. Dematerialization: Variety, caution, and persistence. Proceedings of the National Academy of Sciences (PNAS), vol. 105 no. 35:12774–12779, 2008.

[3] Business Week. The   office   of   the   future. Business Week, June 1975. http://www.businessweek.com/technology/content/may2008/tc20080526_547942.htm. Accessed: 2013-03-09.

[4] A. J. Sellen and R. H. R. Harper. The myth of the paperless office. MIT Press, 2003.

[5] The Climate Group. Smart 2020 report summary. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[6] G. Philipson. ICT’s role in the low carbon economy. Technical report, Australian Information Industry Association (AIIA), 2010.

Optimization

Explore the Mind Map to learn about Optimization!

The second main principle of approaches that use ICT to enable emissions savings is optimization, which is a very general term that leaves room for interpretation. To clarify this term, optimization makes things more efficient regarding to energy consumption or the usage of other resources. In opposition to the concept of dematerialization, the focus of the principle of optimization is not the replacement of things by ICT. In this case, ICT enables improvements in energy consumption and emissions reductions by making units or processes more efficient. Therefore, in the taxonomy the optimization potential of ICT is split up into unit efficiency and the optimization of processes. The first taxon groups together approaches which improve the energy efficiency of machines, production units, devices or any other physical object. Process optimization is divided into two main concepts, where automation is one and coordination the other. Automation makes use of technology to execute tasks without the need for manpower. Alongside production processes this principle is also used in lighting systems in buildings for example. The taxon coordination stands for improved coordination of processes and work flows by using information and communication technology. This involves computer applications used to optimize transport routes, as well as smart grids developed to coordinate energy supply more efficiently.

Optimization can also be considered as making things smart, as ICT enables to build smart motor systems and to improve energy efficiency in buildings and transport by smart buildings and smart logistics [1]. One the one hand the term smart stands for a kind of intelligence that inheres these improved units or processes, on the other hand The Climate Group defines the actions the ICT sector can take to improve the global emissions situation by the five letters of SMART [2]:
  • Standardization of how energy consumption and information about emissions can be traced and made accessible throughout different processes in economy. 
  • Monitoring of energy consumption and emissions in real time. 
  • Accountability for energy consumption and emissions should be established beside other business priorities. This can be achieved by the application of network tools. 
  • Rethinking about how we should live, learn, play and work in a low carbon society, enabled by ICT as an information platform, which can also help working together to gain efficiency improvements. 
  • Transformation of the economy will happen if the enabling effect of ICT can be turned to account. 

This assessment of The Climate Group concerning the optimization potential of ICT suggests that Information Technology can support and enable a transformation process to a low carbon economy and society in a great extent. But this implies the acceptance and commitment of other economic sectors and governments.

References

[1] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[2] The Climate Group. Smart 2020 report summary. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

Dematerialization

Explore the Mind Map to learn about Dematerialization!

One important feature of ICT regarding to sustainable development is dematerialization. The SMART 2020 report published by The Climate Group in 2008 postulates a “strong emphasis on the significant opportunities offered by dematerialisation” and states in this context: “Our study indicates that using technology to dematerialise the way we work and operate across public and private sectors could deliver a reduction of 500 MtCO2e in 2020 - the equivalent of the total ICT footprint in 2002, or just under the emissions of the UK in 2007.” [1] A graphical illustration of this estimation is given in figure 4.2.
This indicates that the potential of emissions savings through dematerialization is estimated to be quite large. It could also be a main concept to arrange further growth and development with a lower intensity of environmental impact. This implies a higher level of efficiency achieved by learning by experience and a declining consumption of goods and energy because of dematerialization [2].


Figure 4.2: The potential impact of dematerialization [1] 

When dealing with dematerialization enabled by ICT, it has to be distinguished between products and routes of transport, although the borders between these categories are not completely sharp. For example the e-initiatives of governments (e-government) could be classified by both taxa, because they dematerialize the use of paper, as well as routes of transport, since citizens save travel ways to governmental departments by using online services. In this taxonomy the approach of the e-government is classified as dematerializing routes of transport, because the paperless office is considered as a separate concept, which is obviously a product-dematerializing concept.

Although the ability to replace physical products and processes is assumed to be one of the big environmental benefits of ICT, there is some kind of uncertainty regarding to the real potential of dematerialization in the future. The success of every kind of technology strongly depends on adoption, which cannot be predicted in preposition [1]. As an example, the idea of the paperless office goes back to the age of early personal computers in the 1970’s [3], but its distribution is still in development due to difficulties in adoption. With the introduction of electronic mail the usage of paper was expected to decline, but users tended to print their mails at the office, so that paper consumption actually increased [4]. Therefore the future impact of dematerialization will among other things depend on the inertia of consumer habits and the incentives for adoption for businesses.

References

[1] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[2] J.H. Ausubel and P.E. Waggoner. Dematerialization: Variety, caution, and persistence. Proceedings of the National Academy of Sciences (PNAS), vol. 105 no. 35:12774–12779, 2008.

[3] Business Week. The office of the future. Business Week, June 1975.
http://www.businessweek.com/technology/content/may2008/tc20080526_547942.htm 

Accessed: 2013-02-12.

[4] A. J. Sellen and R. H. R. Harper. The myth of the paperless office. MIT Press, 2003.

Friday, March 8, 2013

Buildings

Explore the Mind Map to learn about the sustainable use of ICT in the Buildings Sector!



In Europe 40% of total energy is used in buildings [1], in China it can be numbered as one third [2]. Because of the high energy demand for heating, cooling, ventilation and lighting in buildings there are many approaches to reduce the energy usage by better insulation and more efficient systems on the one hand, and to make buildings self-supporting in terms of energy supply on the other hand. The potential for energy and emissions savings by improvements in this sector can be considered as large. A recent study in the UK showed that a single domestic property fitted with photovoltaics saved about 1 tonne of CO2 emissions in one year [3]. There are many different options to reduce energy demand in buildings, which refer to directly reducing demand by more efficient systems and insulation, as well as integrating small-scale power generators, which make use of renewable energy sources. To summarize these actions in one term, it is all about improving building design. ICT is the dominating technology to enable such improvements in buildings. Gains in energy efficiency enabled by ICT can mainly be achieved by automation. Therefore systems are developed for automated management and control of lighting, heating, ventilation and air conditioning. To make use of building integrated energy generators, like photovoltaics or wind turbines, ICT systems are needed too. There are already a few projects integrating wind turbines in buildings to provide them with clean and renewable energy [2]. In this context information technology is used to manage the needed electricity grids, that can deal with the varying work load of wind turbines. This implicates the storage of electricity in times when more power is generated than used, as well as managing additional sources of energy when the work load of the wind turbine is too low to meet total demand.
In terms of approaches in reducing emissions, buildings will be closely linked to the power supply sector in future. This is because of the distribution of Smart Grids, that allow buildings to become power supplying units. The are concepts in development, that force electricity generators integrated in buildings as local power stations for electric vehicles [4]. Concepts like these link the buildings sector to the transport sector, mainly to individual transport, as well. This shows the future importance of new approaches in the buildings sector.
The leading term for ICT supported management of buildings is Computer Aided Facility Management (CAFM) [5]. This involves the management, control and maintenance of buildings and its systems. It is the integration of different systems for heating, ventilation, cooling, lighting and small-scale power generators that characterizes the role of ICT in improving building design. An important issue of this integration are open standards, that enable interoperability of different technologies and the usage of new systems in existing buildings [6]. Beside utilization and maintenance of buildings, the advantages of ICT systems can be useful in design, construction and demolition phase too [4]. To reach the whole potential of energy efficiency in buildings, optimization of all phases in a building’s life cycle is necessary. For example there are Building Information Management (BIM) systems [7], that provide architects and engineers with necessary information in design and construction phase, which leads to optimized building design. These systems also enable the automation of design processes, resulting in shorter development times. The advantages of BIM systems can be accounted by energy assessments, improved documentation, air-flow simulations and cost analysis for example. ICT solutions for the use in operational phase of buildings are called Building Management Systems (BMS) [7]. These applications provide functionalities for the automation of monitoring and control of room conditioning and security systems.
The role of ICT for energy savings in buildings as stated by the SMART 2020 Report is as follows [4]:
  • Standardize, monitor and account: ICT systems can be used to adapt local heating, ventilation and lighting to the needs of occupants, without wasting resources. Furthermore modeling and simulating energy usage scenarios in buildings and benchmarking of building performance is enabled. The establishment of standards for technology compatibility and benchmark comparison would ease efficiency gains. Improvements in building design can be achieved by networks for remote monitoring and management of building systems and automation solutions, based on energy efficient hardware. 
  • Rethink: The inefficiencies of building management systems can be found and improved by the use of ICT. Also the involvement and engagement of users has to be extended to reach an optimum in energy usage. Information plays a major role in this adoption process towards a low carbon economy. 
  • Transform: The vision of future building design involves buildings which are adjustable to user preferences. Therefore improved user interfaces are needed. To make building usage more efficient technologies for teleworking and collaboration have to be improved. Future buildings should be equipped with local energy supply (e.g. photovoltaics) and systems for automated control, diagnosis and maintenance. 
There are estimations that the total emissions arising from building sector will reach 11.7 GtCO2e in 2020. The Smart 2020 Report states that improved building design and the use of automation technology could save 1.68 GtCO2e globally [4]. Other sources expect that the building sector would be able to reduce its greenhouse gas emissions by 30-35 percent by 2050, in spite of growing numbers of buildings, by tapping the full potential of today’s technology [7]. Basically there are two types of improving building design. The first possibility is to equip new buildings with modern building management systems in construction phase. The systems are already considered in design phase, which makes optimization easier in comparison to integrating such systems in existing building, which is the second type of improvement. To reach the amount of emissions saving that is needed to successfully address the climate problem, both types of improved building design have to be realized. Equipping existing buildings with modern technologies globally is a large-scale project, but the energy saving potential is large. The retrofitting of existing buildings is a major part of the possibility supplied by ICT to reduce the carbon footprint of the building sector [6], since 80 percent of the existing building stock is more than 10 years old [7].
Complying to the three dimensions of sustainability the net benefit of ICT enabled improved building design has economic, environmental and social aspects [7]:
  • Economic benefit – Reduced operating costs of facilities, due to lower energy consumption in design, utilization and maintenance. – Investments in the economy, in form of retrofitting activities and development of innovative building design to meet new standards and requirements. 
  • Environmental benefit – An estimation of 33.5 million tons of CO2 savings per year. 
  • Social benefit – Creation of jobs in design and construction of buildings for retrofitting and design improvements. 
Although large energy savings can be expected from improvements in building design, commissioning, utilization, operation and maintenance, there are some hurdles to adopt these technologies. There is a lack of incentives for building designers and architects to integrate energy saving technology into buildings, since the payback periods are often long [4]. Therefore it is up to governments to provide such incentives, for example by tax deductions for reaching certified performance levels of energy efficiency in buildings [7]. The need to measure efficiency levels of buildings is one part of the importance of establishing standards for building technologies. There have to be standards in rating systems and valuation tools for buildings [4], as well as standards for the interoperability of building integrated technologies. Standardization is one of the benefits ICT can offer to other sectors. It is one of the reasons for the success of the ICT sector, that it established international standards for communication and information exchange [6]. The success of reducing energy demand and emissions in the building sector will depend on the agreement on standards for system design and monitoring. Standards can be seen as a basis for achieving potential efficiency gains [6], because of their characteristic to offer interoperability and comparability.

References

[1] W. Zeiler, R. Houten, G.t Boxem, P. Savanovic, J. Velden, W. Wortel, J.-F. Haan, R. Kamphuis, and H. Broekhuizen. Design ontology for comfort systems and energy infrastructures: Flexergy.  In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 49–58. Springer Berlin Heidelberg, 2009.

[2] B. Cai and H. Jin.  Development and strategies of building integrated wind turbines in china. In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 71–78. Springer Berlin Heidelberg, 2009.

[3] F. J. O’Flaherty, J. A. Pinder, and C. Jackson. The role of photovoltaics in reducing carbon emissions in domestic properties. In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 107–115. Springer Berlin Heidelberg, 2009.

[4] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[5] International Facility Management Association (IFMA). Glossary of facility management
terms. http://fmpedia.org/. Accessed: 2011-11-07.


[6] B. Tomlinson. Greening through IT - Information Technology for Environmental Sustainability. The MIT Press, 2010.

[7] G. Philipson. Ict’s role in the low carbon economy. Technical report, Australian Information Industry Association (AIIA), 2010.


Intelligent Building Systems - Lighting Automation - HVAC Automation

Intelligent Building Systems

The term Intelligent Building System refers to the integration of various building facilities by computer systems. Such a system provides a centralized control application for example for HVAC (heat, ventilation and air conditioning), security systems, lighting systems, energy management, access control and telecommunications [1]. In other words, Intelligent Building Systems try to integrate several building automation systems. As mentioned before, these systems are developed to control innovative technologies to increase energy efficiency as well as user benefits. Approaches of this kind address the fundamental issue of achieving reductions in energy demand in buildings without lowering the quality of in-building conditions for occupants. This is of special importance for the distribution of energy efficient technology, since it can also bring direct benefits for users, beside the positive environmental impact. To reduce energy consumption in buildings Intelligent Software Agents (ISA) can be installed at different levels of automation. The focus of this approach is set on individual climate control to adjust the conditions to user preferences by an optimal setting of parameters. This implies profound knowledge of the actual weather situation and data about the building like window orientations. An approach of this kind was tested in field in office buildings in the Netherlands [2]. Although this technology is still in research phase, it is a promising concept to deal with the trade-off between energy savings and individual comfort.

Lighting automation 

Lighting is responsible for about 20 percent of total energy demand in commercial buildings and for about 10 percent of energy demand in residential homes [3]. One possibility to reduce this energy consumption is to use more efficient illuminants, like light-emitting diodes (LED). On the other hand the inefficiencies in lighting of today’s buildings arise from light usage. Light should be turned on when it’s needed and should be turned off when it’s not necessarily needed. This approach can be named as occupancy-based lighting [4]. At this point automated lighting systems come to play. Modern lighting control systems are computer systems that allow automated control and optimization of lighting in office or private buildings, that maximize efficiency and therefore save energy. The energy savings from these control systems can be numbered as up to 70 percent of today’s energy demand for lighting [5]. The global potential of emissions savings by lighting automation is estimated by about 0.12 GtCO2e [4], which would bring a significant environmental benefit. Additionally there are important social and economic benefits, like improved and individually adjusted room lighting and lower operational costs due to lower energy consumption.
Typical features of modern lighting control systems are the following [5, 6]:
  • Direct on/off and dimming controls provided to the occupants at a centralized control user interface. 
  • Possibility of remote management of lighting control of all individual lights in a whole building or several buildings combined. 
  • Scheduling functions and timers, switching lights on and off or dimming lights automatically at predefined times. 
  • Integration of photo-sensors to detect illumination levels of natural lighting. This allows to adjust additional artificial lighting efficiently to meet the required illumination levels and save a significant amount of energy. 
  • Occupancy sensors, to enable occupancy-based lighting, especially useful in areas with varying usage. 
  • Functions for measuring and monitoring energy consumption of lighting, which provide real-time or historical data on energy usage for decision making. 
As already mentioned lighting control systems can not only provide energy savings, they can also bring advancements in lighting characteristics like illumination levels in respect to the requirements at different places. As an example, lighting can be individually adjusted to several specific workplaces in the same room. Beside environmental benefits, this induces significant economic and social improvements, since it is the sense of artificial lighting to improve the productivity and wellbeing of a buildings occupants. To achieve individuality in lighting and to adjust it to user preferences, a flexible structure of the lighting network is needed. This involves a multiple-circuits configuration with local and remote control functions and individually positioned luminaries at specific areas per room [7]. Approaches like this focus at ensuring that savings in energy are not achieved at the cost of performance. However a simple case study at a small office showed, that automated lighting control could lower energy usage to about 30 or 40 percent of energy usage without any lighting control facilities [7].
One problem for adoption of lighting control systems in existing buildings are the high costs of installation and rewiring [8]. Wireless technology could help overcome this hurdle, since it is better compatible with economic considerations due to lower investment expenses for retrofitting. In the case of wireless lighting control a network of wireless photo- and occupancy sensors, as well as wireless light switches and dimmers is installed, which means that “each endpoint is wirelessly enabled” [5]. Figure 1 shows a schema of a simple wireless lighting architecture, using wireless actuation modules for luminaries with dimming functions and a base server for lighting control. The system is designed as wireless networked intelligent lighting actuation system, to gain energy savings and satisfy the needs of individual occupants [8].


Figure 1: Wireless networked lighting architecture [8]

More complex wireless lighting networks use mesh-architectures, meaning that every endpoint can communicate with the controller by at least two channels, which makes the network more stable and more resistant to failures due to redundancy [5]. Beside the relatively low costs of retrofits, the major benefits of wireless lighting control are flexibility in placing lighting controls and reconfigurations of the network, as well as high scalability in respect of adding devices and expanding the network.

Heat, ventilation and air conditioning (HVAC) automation 

Similar to lighting control, heating, ventilation and air conditioning can also be automated by special building automation system (BAS). In this case the BAS is a computer network integrating the controls of heating, ventilation and air conditioning systems of buildings, which also can be automated [6]. A main goal of these systems is to adjust HVAC settings to occupants needs in order to save energy and improve room conditions. In China HVAC systems are responsible for more than 70 percent of total energy use in buildings [9]. Globally the automation of HVAC systems could save up to 0.13 GtCO2e [4].
The full potential of energy savings from improving HVAC systems in the building sector can be tapped by developing hybrid systems for heating and cooling that use efficient and low carbon energy sources. An example of a hybrid air conditioning system is a combination of a vapor-compression system, a desiccant dehumidification system and a indirect evaporative cooling system [9]. To achieve maximum efficiency of such combined systems information technology is needed to optimize and operate them. For proper and efficient building ventilation there are hybrid concepts too. These systems use a combination of natural ventilation and air conditioning [10].
Another approach of reducing energy demand for heating and cooling is to exploit geothermal energy. This brings significant environmental benefits, since this type of energy is carbonfree and widely available. The main principle of these systems is the heat pump, which works like a “reverse refrigerator” [11]. The ground heat is used for building heating in winter, since the soil is warm relatively to the air on the surface. In summer the soil can be used to cool the building by reversing this principle. Figure 2 depicts a simple schema of a heat pump system.


Figure 2: Ground source heat pump system for building heating and cooling [11]

Geothermal systems are often used in context of passive building concepts with a low grade of natural ventilation. These concepts often optimize energy consumption at the cost of room conditions. To improve room conditions, additional active ventilation systems are necessary, to achieve the required level of air exchange in these buildings. In contrast to this, there are approaches in research to use geothermal energy with the help of ground air collectors to realize active conditioning systems. The advantage of this method is, that the whole building construction is warmed by naturally preheated air in winter and cooled by natural cool air in summer [12]. The principle is similar to traditional heat pumps, but the main difference is that air is used to heat or cool the building instead of water. By collecting ground air a higher level of ventilation can be achieved to improve room conditions and the need for additional ventilation can be avoided.
Heating of buildings by traditional systems using fossil fuels has large environmental impact. In the UK tempering buildings accounts for about 49 percent of total carbon emissions [13]. There are several technology approaches for low carbon domestic and nondomestic heating, to lower this environmental impact. Such heating systems are called microgeneration heat technology, since they are built in small-scale factor and mainly used to heat single building units [13]. Some samples for microgeneration heat technology used for room and water heating are heat pumps, solar thermal hot water, biomass stoves and boilers fuelled by wood or pellets. Just as for other building technologies the role of ICT is to control these microgeneration heat systems, integrate them with other building automation systems and therefore optimize the efficiency.
A study from the UK about the use and adoption of low carbon microgeneration technology addressed the reasons for or against the adoption of these technologies [13]. The survey showed that a big part of the adopters of microgeneration heat technologies considered themselves as “environmentally conscious” and took also different actions to reduce their energy demand, like using public transport for example. Households in rural areas, with no children, or where children already left home, are more likely to adopt low carbon technology as well. The main reason for adoption is the idea to lower bills and carbon emissions. On the other hand, the largest barriers for adoption are mainly financial: high initial costs, uncertain and long payback periods, small subsidies [13]. In summary there are financial, regional and ideological factors that influence the decision for or against adopting new technology to lower the environmental impact of domestic heating systems. The uncertainty about payback periods and efficiency of these systems that prevents many households from adoption. Therefore a well-directed information campaign and higher incentives given by governments could help overcome these barriers and support a faster distribution of low carbon heating technologies.

References

[1] Diamond Electronic Systems Ltd. http://www.diamondsystems.co.uk/index.php?option=com_content&view=article&id=81&Itemid=84. Accessed: 2013-03-08.

[2] W. Zeiler, R. Houten, and G. Boxem.  Smart buildings:  Intelligent software agents.  In
Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy
and Buildings, pages 9–17. Springer Berlin Heidelberg, 2009.


[3] B. Metz. Controlling climate change. Cambridge University Press, 2010.

[4] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[5] Daintree  Networks,   Inc.      White  paper:    The  value  of  wireless  lighting  control.
http://www.daintree.net/downloads/whitepapers/smart-lighting.pdf.  Accessed: 2013-03-08.


[6] R. Wolsey.  Controlling lighting with building automation systems.  Lighting Answers, Vol. 4 Number 1:1 – 8, May 1997.

[7] G. Parise and L. Martirano.  Impact of building automation, controls and building management on energy performance of lighting systems.  In Industrial Commercial Power Systems Technical Conference - Conference Record 2009 IEEE, pages 1 –5, May 2009.

[8] Y.-J. Wen and A.M. Agogino. Wireless networked lighting systems for optimizing energy savings and user satisfaction. In Wireless Hive Networks Conference, 2008. WHNC 2008. IEEE, pages 1 –7, Aug. 2008.

[9] K. Sumathy, Li Yong, Y. J. Dai, and R. Z. Wang.   Study on a novel hybrid desiccant dehumidification and air conditioning system. In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 413–421. Springer Berlin Heidelberg, 2009.

[10] A. Elmualim. Integrated building management systems for sustainable technologies: Design aspiration and operational shortcoming. In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 275–280. Springer Berlin Heidelberg, 2009.

[11] B. Metz. Controlling climate change. Cambridge University Press, 2010.

[12] W. Zeiler and G. Boxem. Geothermal active building concept. In Robert J. Howlett, Lakhmi C. Jain, and Shaun H. Lee, editors, Sustainability in Energy and Buildings, pages 305–314. Springer Berlin Heidelberg, 2009.

[13] S. Caird and R. Roy. Adoption and use of household microgeneration heat technologies. Low Carbon Economy, 1(2):61–70, December 2010.

Wednesday, March 6, 2013

Industry & Business

Explore the Mind Map to learn about the sustainable use of ICT in Industry & Business!

Ever since the development of ICT industry and business have been major application areas for these technologies. Their distribution brought significant changes for these sectors by revolutionizing production and trading methods. Information and communication networks offer channels for the exchange of business data, for cooperation and distribution, whereas computer systems enable optimization of a broad range of industrial and business processes, resulting in efficiency gains in energy and resource usage. Whether ICT can contribute to reduce carbon emissions arising from industry and business is discussed in this section. Given that the focus of industry and business is always set on economic growth, it is a great issue of sustainability to align this economic objective with the currently urgent environmental and social aspects on the way to a low carbon society. Therefore it is necessary to find methods of sustainable growth, meaning “to preserve the same outputs, in terms of functionality to people, with less resource use”, for which developments in technology can account.

Industrial Motor Systems

In many industrial processes electrical energy is transformed into mechanical power to drive machines, pumps or belt conveyors [1]. Also compressed air, fan and pumping systems include motor systems, in total accounting for about 60 percent of energy consumption in manufacturing processes [2]. The manufacturing sector is growing, together with energy demand, especially in countries where wages and resources are inexpensive compared to welfare states. Most of the needed energy still is generated from fossil fuels, which leads to increasing greenhouse gas emissions as well. It is estimated that industrial motor systems will account for 7 percent of global carbon emissions by 2020 [1]. Exclusively considering China, this number can be assumed to be 10 percent [3].

There is a classification scheme for motor systems based on energy efficiency, which was established by the European Commission and the CEMEP , ranging from EFF1 (high efficiency) over EFF2 (medium efficiency) to EFF3 (low efficiency) [4]. Sales figures show that in 2005 only 4 percent of purchased motor systems were classified EFF1, while the major part of motors sold was EFF2 (87%) [5]. By now the classification scheme has been changed to new international efficiency (IE) classes, where IE1 stands for standard efficiency (consistent with EFF2), IE2 stands for high efficiency (consistent with EFF1) and IE3 stands for premium efficiency [4]. Due to technological progress the low efficiency class EFF3 is not considered anymore.

As in vehicles, optimized engineered and controlled motor systems can provide energy and emissions savings as well as long-term cost reductions in production processes. Such motor systems are controlled and optimized by microelectronics. Basically there are three different possibilities to improve the energy efficiency of motor systems:
  • Replacement of existing motor systems by high efficiency systems: The potential for improvements by using motor systems of the highest efficiency classification grade is estimated at 10 percent [5]. 
  • Equipment of motor systems with electronic rotation speed control: Such motor systems are called variable speed drives (VSD) [1] and are controlled and optimized by microelectronics, to adjust rotation speed and power consumption to match the required level. This minimizes energy losses due to over-sized motor power. It is assumed that electronic speed control could account for efficiency improvements of 30 percent [5]. 
  • Optimization of mechanics: Improvements in gears, belts, bearings and lubricants can significantly increase decrease friction and losses and therefore increase energy efficiency. The improvement potential is estimated at 60 percent [5]. 

The role of ICT in the optimization of motor systems is to enable improvements by electronic rotation speed control, accounting for significant efficiency gains. In this context the main principle of optimization is to apply highly efficient frequency converters, as it is necessary to convert the electricity from energy grids to make it applicable to motor systems [5]. The conversion of electricity is always accompanied by energy losses of a certain extent, which can be optimized by microelectronics. Another possibility to improve energy efficiency is to use frequency inverters, which convert direct current (DC) to alternating current (AC) and can there- fore minimize energy losses in acceleration and breaking applications, due to the adjustment of frequency to rotation speed [5]. It is assumed that the efficiency of industrial motor systems can be increased by 30 percent, considering all of the existing options. If this technology is applied at 60 percent of industrial motors this would lead to global savings of 0.68 GtCO2e in 2020 [1].

References

[1] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[2] United Nations Industrial Development Organisation (UNIDO). Motor systems efficiency
supply curves, December 2010.


[3] G. Philipson. Ict’s role in the low carbon economy. Technical report, Australian Information Industry Association (AIIA), 2010.

[4] European Committee of Manufacturers of Electrical Machines and Power Electronics (CEMEP). New efficiency classes for low-voltage three-phase motors (IE-Code). http://www.cemep.org/index.php?id=53. Accessed: 2013-03-06.

[5] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.


 

Automation and Optimization of Industrial and Business Processes

In today’s industry there are several processes regarding to the production of goods, which are supported by computer systems. In this context four application areas of ICT support of indus- trial and business processes can be differentiated [1]:
  • Product Lifecycle Management (PLM): The whole life-cycle of a product, from design to disposal is managed computer-aided. 
  • Customer Relationship Management (CRM): ICT provided advanced possibilities to identify business markets and improve customer communication and service. 
  • Supply Chain Management (SCM): Logistics systems allowing optimization of acquisition, inventory management and delivery by increased information exchange between and within companies. 
  • Enterprise Resource Planning (ERP): ICT systems integrate business data on several internal and external corporate activities and processes to provide a single application to manage all business areas. 

Some of the most energy and resource intense industrial processes are part of the several steps of a product’s life-cycle, from the extraction of raw materials and resources to the disposal of the product. Figure 1 depicts this life-cycle. The first step of production usually is the extraction of raw materials, needed for the production of product components and base materials, which is a process with direct impact on the environment. The extent of this impact depends on the intensity of resource usage in production. After the production of base materials and the assembling and production of the final product, the product has to be packaged and transported to the end-user, where it fulfills its actual purpose during the in-use period. The last stages of a product’s life-cycle after usage, are determined by re-use, recycling or landfilling or incineration. It has to be highlighted that a product causes environmental pollution in every step of the life-cycle, basically in form of energy consumption and emissions. The types of emissions range from greenhouse gas emissions, over dust and noise emissions to waste emissions.


Figure 1: The product life-cycle and its impact on the environment [2]

By considering the environmental impacts of the different life-cycle stages it gets apparent, that methods and tools for Product Life-Cycle Management (PLM) provided by ICT enable environmentally conscious product design and production processes. There are different tools for separated application areas within Product Life-Cycle Management, like Product and Portfolio Management (PPM), Digital Product Development (DPD), Manufacturing Planning Management (MPM) and Product Data Management (PDM) [1]. A research project and awareness raising campaign on behalf of the European Commission came to the conclusion that “80% of a product’s environmental impact is determined in the design phase” [2]. This finding confirms the relevance of product design methods aiming at efficiency and sustainability. Therefore environmental considerations have to be taken into account at the design stage of a product, to determine the processes of the whole life-cycle in a way to conform to economical as well as ecological requirements. This approach is called EcoDesign [2].
There are several computer-aided technologies for Digital Product Development. These automation tools represent the basis of computer-aided production methods [1]:
• Computer-aided design (CAD) is a term for the design of physical objects or processes supported by computer systems. CAD systems are commonly used for on-screen development of physical products or buildings.
• Computer-aided manufacturing (CAM) is the use of computers and software tools to manufacture physical products and prototypes, which where engineered with CAD support.
• Computer simulation (CS) provides functionalities to generate computational models of real life products, processes and systems. Computer simulations enable fast and flexible verification of design concepts with low intensity of resource use. CS is a method of dematerialization since it substitutes physical testing systems.
• Computer-aided engineering (CAE) is a general term for analysis, design, planning, manufacturing and simulation tools based on computer systems. By the possibilities of simulation CAE provides functionalities for validation and optimization of products and processes. Therefore CAE tools also act as decision support systems for engineerings in planning and design.

The extent of the environmental benefits by Digital Product Development is hard to determine. Regarding to energy consumption, computer-aided tools definitely enable higher efficiency and savings. These savings arise from process optimization, reducing the effort in production and the needed input of resources to a minimum. Some of the automation tools like computer simulation tools provide all benefits of dematerialization, reducing the demand for energy and physical materials.

Beside the computer automated design of products, production processes are supported by information technology as well. A prominent term in the context of ICT applied in industrial production is process automation. The use of computer systems enables efficiency gains in several steps of production. For example, there are multi functional production machines, which are controlled by computers, an approach called computerized numerical control (CNC), as well as computers controlling movements between production stations, creating flexible manufacturing systems (FMS) [3].

Another example of process automation, which is related to production in the context of procurement, can be found in logistics, more precisely in supply chain management. The management of the supply chain is a business process containing a series of activities, linking vendors, service providers and customers [4]. The development of e-commerce brought fundamental changes in the structure of the supply chain and the flow of information and goods. The processes within todays supply chains are automated to a large extent. Automatic re-orders of raw and production materials result in smaller stocks, enabled by just-in-time delivery for example [5]. The reason for automation are information and communication systems providing efficient methods to exchange information within the whole supply chain, between customers and suppliers. This improves cooperation and therefore optimizes the transportation of goods, for example by improved coordination of transport routes and loading. The term describing such systems for information exchange is interorganisational information systems (IOIS) [4]. It is the possibility to share information, in order to match demand and supply, that enables companies to improve production and distribution planning. There is several research work done on the impact of ICT on improving supply chain management, which shows that ICT can be considered as key enabler in this context [4]. The information that is shared within organizations and within the whole supply chain contains several issues, ranging from demand forecast, over levels of inventory and raw materials, to plans of delivery, sales and production. The shared knowledge about the status and plans of several trade partners provides economical advantages, as well as a positive environmental impact due to lower energy utilization.

All kinds of process automation are generally developed to reach time and cost efficiency gains and therefore primarily serve for economical purposes. This optimization is realized on the basis of information and data about industrial processes, which also contains information that is relevant for sustainability. Energy and resource use can be monitored for each single process, which means that potential improvements can be identified. In this context economical and environmental interests do not conflict, as energy savings have positive impact on aspects. The potential emissions savings by automation of industrial processes are estimated by 0.29 GtCO2e in 2020 [6]. This number is based on the assumption that energy consumption in industrial processes can be decreased by 15 percent, due to a 33 percent penetration of process optimization technology.

References

[1] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.

[2] Fraunhofer Institute for Reliability and Microintegration IZM – Department Environmental Engineering. 1:    Introduction to EcoDesign – What is  it all about? http://www.ecodesignarc.info/servlet/is/810/, 2005. Accessed: 2013-03-06.

[3] M.A.R.M. Salih. Climate change and sustainable development: new challenges for poverty reduction. Edward Elgar, 2009.

[4] M. Kollberg and H. Dreyer. Exploring the impact of ict on integration in supply chain control: A research model, 2006.

[5] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[6] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008. 

 

Dematerialization by E-Products and E-Services

When it comes to emissions savings in business and industry, a significant role of ICT is achieving dematerialization, which is characterized by replacing physical high-carbon products by virtual equivalents [1]. This concept was issued before related to the transport, as well as to the buildings sector as a consequence of using ICT in these areas. In this context, concepts like videoconferencing and telecommuting where discussed. In industry, dematerialization is represented by the reduction of resource use, including raw materials and energy, at every stage of the product life-cycle. This leads to emissions and resource savings in production, reductions “of energy and material inputs” while utilization, “and of wastes at the disposal stage” [2].
When physical products are replaced by non-material substitutes the effect on resource use is obvious. This case is an example of absolute dematerialization. On the other hand there is also relative dematerialization, which is characterized by reduced material and energy usage “per unit of economic value produced” [2]. An example of relative dematerialization is a declining consumption of energy or raw-materials per Gross Domestic Product (GDP), which is a measure of the value of all produced products of a country within a defined time period [3]. In other words, this means producing the same value with less resources needed.
So, beside the replacement of physical goods by virtual substitutes and reductions in the usage of large physical systems or infrastructures (e.g. videoconferencing instead of traveling to meetings), dematerialization also means producing less energy and material intense products. Such products are still physical, but may be lighter or smaller, or are manufactured in a more efficient way [2].
Dematerialization is often mentioned in the context of e-commerce. Trading via electronic networks allows processing business data electronically and enables to sell virtual products. There are several examples of dematerializing products, services and processes in commerce, like e-ticketing, e-banking, e-books or digital music [2].

E-ticketing is an approach to replace paper tickets by electronic tickets. It can be applied to all kinds of tickets or reservations for events, as well as tickets for public transport or flights. E-tickets, which are completely electronic, have to be distinguished from online tickets, that are purchased via the Internet and printed by the customer. The concept of e-ticketing usually differs from traditional tickets: Customers register online to an event or a flight and get access to the service by confirming their identity locally. The advantages that e-tickets provide to users are an increased safety not to lose tickets, as well as faster access to tickets, without having to visit ticket shops physically. Threats of e-ticketing systems are the possibility of system failures and user errors, as well as ticket fraud. Due to electronic distribution ticket agencies experience higher efficiency in order processing. A main application area of e-ticketing is the airline industry. A survey by the International Air Transport Association (IATA) reported that in 2007 88 percent of global passengers purchased electronic tickets instead of paper tickets [2]. Airline companies realize costs reductions by selling electronic tickets, which enables them to offer tickets at lower prices. The price reduction is accompanied by increased demand for airline tickets, which also means increased emissions from airplanes. This rebound endangers potential environmental benefits from e-ticketing, like reductions of travel routes, because tickets are purchased from home or mobile devices. The dematerialization of paper tickets is also considered to help slow down deforestation.

E-banking denotes banking services, that can be accessed electronically. Banking institutions enable their customers to consult their banking accounts via the Internet, providing almost all functionalities usually offered in branches, as well as offering additional services, for example real-time share trading. Also invoicing is done electronically, including billing and payment. In 2005, between 10 and 15 percent of all retail banking transactions in Europe where done online [2]. Data of the year 2010 shows the share of Internet users, who regularly (each month) access their banking accounts online (cf. figure 1). The diagram illustrates the obvious correlation of economic development and electronic banking usage. The highest rate was determined in Canada, where about 65 percent of Internet users use online banking services each month [4]. In the USA this rate is 45 percent, which indicates, that even within Internet users, more than half of them prefer conventional offline banking, representing that e-banking is still far from dominating banking services.


Figure 1: TOP 10 Countries by Online Banking Penetration (% of Internet users, age 15+) [4]

One of the environmental benefits of e-banking are reductions of paper production and usage. This is caused paperless transactions and digital account statements, but can be offset by users printing their transaction confirmations or similar. Additional potential carbon savings could arise from reduced travel to bank branches. On the other hand the IT infrastructure needed for e-banking accounts for a certain amount of energy consumption and carbon emissions. At current state, it is unlikely, that e-banking already has positive environmental impact, but there is a certain potential of reductions in resource use. If transactions and banking services were done exclusively electronic, this would account for significant reductions in building costs, due to no longer needed branches. Today in fact, e-banking services supplement traditional services and therefore rather cause additional negative environmental impact, than reducing it [5].

Digital music is distributed as electronic music files, rather than on physical data carriers. These files can be purchased and downloaded from servers via the Internet and stored locally on hard disks or external storage (including CDs). In 2010 the global trade value of the digital music market was 4.6 billion USD, which accounts for 29 percent of the total industry revenue [6]. The music industries has therefore the second biggest share in digital distribution of all creative industries, just after the game industry (cf. figure 2). This depicts the high adoption of the Internet as distribution channel for music. In comparison to that the film industry only has a 1 percent share of revenues, and obviously still focus on conventional trade. Reasons for this may be piracy issues and the large amounts of data of video files compared to audio files. The environmental benefit arising from digital music is attributed to reductions in energy and resource use due to the lack of physical data carriers like CDs. Downloading music files cuts resource consumption by about 50 percent in comparison to conventional trade, or online shopping [2]. As no rebound effects of digital music have been identified, this form of dematerialization has still large potential for environmental improvements, keeping in mind, that the majority of music is still distributed on physical data carriers, as it is practiced by the film industry too.


Figure 2: Revenue shares of the creative industries in digital distribution [6]

E-books, e-zines and e-papers are terms for electronically published media that is conventionally printed, like newspapers, magazines or books. The possibilities provided by ICT range from web based solutions, which can be read online, to offline versions, which have to be ported to mobile devices (e.g. e-reader). Due to the proliferation of smartphones and tablet computers, the share of electronic media can be expected to grow, compared to printed media. Gartner analysts published forecasts stating, that the global sales of Media Tablets will rise from 70 million devices in 2011 to almost 300 million devices in 2015 [7]. Traditional computers and notebooks are not especially suitable for reading, due to usability and screen technology. Therefore tablet computers and e-readers are getting popular at the moment, since they provide better handling and are portable. In theory e-books save paper and the energy used in paper production, and consequently reduce deforestation. On the other hand the production of reading devices is quite energy intense and energy is needed for operation and disposal. The conclusion is that the environmental impact of e-books strongly depends on user habits. It is essential, how many printed books an e-reader replaces in it’s lifetime and how long this lifetime is, before the device gets replaced. A tablet computer or an e-reader produces about 130 to 170 kg of CO2e over its lifecycle, whereas a printed book accounts for about 4 kg [8]. Therefore a device would have to replace more than 40 printed books to reduce carbon emissions. But beside the energy needed for production also the used materials have to be considered. Paper books are made of wood, which is a renewable material. Electronic reading devices need plastics, metals and certain chemicals in production, which are materials with much more negative impact on the environment and human health than wood. Including these considerations into the calculation of the environmental impact of e-books, a state of the art electronic reading device would have to substitute more than 60 books to increase sustainability [8].

References

[1] L. Neves. Responding to the new challenge of ict-driven sustainability. Global e-SuStainability initiative (GeSI).

[2] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.

[3] J.H. Ausubel and P.E. Waggoner. Dematerialization: Variety, caution, and persistence. Proceedings of the National Academy of Sciences (PNAS), vol. 105 no. 35:12774–12779, 2008.

[4] ComScore, Inc. Top 10 countries by online banking penetration. http://www.comscoredatamine.com/2010/10/top-10-countries-by-online-banking-penetration/, October 2010. Accesssed: 2013-03-06.

[5] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[6] IFPI. Digital music report 2011. http://www.ifpi.org/content/library/DMR2011.pdf, 2011. Accessed: 2013-03-06.

[7] Gartner, Inc. Forecast: Media Tablets by Open Operating System, Worldwide, 2008-2015, April 2011.

[8]  Green Press Initiative. Environmental impacts of e-books. http://www.greenpressinitiative.org/documents/ebooks.pdf. Accessed: 2013-03-06.




E-Commerce

Electronic commerce (e-commerce) can be defined as “the buying and selling of products and services over the Internet or other electronic networks” [1]. It is a term for “the paperless exchange of business information”, referring “to Internet shopping, online stock and bond transactions, the downloading and selling of ’soft merchandise’ and business-to-business transactions” [2]. In short, e-commerce means to transact business electronically. Today, in most cases the transaction channel for e-commerce is the Internet. For this reason the expansion of e-commerce can be directly linked to the growth and increased utilization of the Internet. At the beginning of the year 2000 the Internet had about 300 million users, whereas in June 2011 this number was determined to be more than 2,100 million, which is 30 percent of the world population [3].

In an environmental context the proliferation of e-commerce has positive as well as negative impact. E-commerce inheres that products are purchased online, which means that the travel routes to shopping malls and stores drop out and the physical traffic and fuel consumption decreases. This clearly results in certain emission savings. Another example for emissions reductions achieved by e-commerce are digital products (e.g. music distributed as MP3 instead of CD), which can be distributed with low carbon impact, since nothing physical has to be produced. On the other hand, products purchased via the Internet have to be packed and shipped to the customers, a process that causes additional emissions. The question is: Do the emissions savings due to dematerialization and optimized distribution overweight the emissions arising from packaging, shipping and additional IT infrastructure? This question may be impossible to answer correctly today. The interrelations associated with e-commerce are too complex to allow profound estimations. However a closer look at the impact of e-commerce should be taken, in order to know about the effects in separate.
The economic, environmental and social effects of e-commerce can be divided into three categories. There are first-order, second-order and third-order effects [4]:
  • First-order effects: These effects arise due to the need for ICT infrastructure and it’s direct use. The production, utilization and disposal of electronic systems consumes energy and therefore produces carbon emissions. Additionally the chemical substances needed for the production of electronic equipment constitute a potential threat for workers and the environment. Together with an increase of e-commerce these negative effects of ICT equipment on the environment are rising. 
  • Second-order effects: As second-order effects the changes in markets and business activities are described. E-commerce changes business due to a new channel of marketing and distribution, which can be noted as a change of the supply chain. Products are ordered via the Internet and some products are dematerialized. 
    • The economic effects of these changes are smaller warehouses, just-in-time delivery and fewer intermediaries. There is also an increased need for communication and coordination, as well as more frequent transport. 
    • The environmental impact of these effects expresses as reduced emissions from warehouse building and utilization, but also as increased emissions from transport. The higher demand for packaging has direct environmental influence too. 
    • The social effects in this context arise from an increasing amount of online orders and the consumption of digitalized products. These actions are directly linked to a more intense use of computer equipment and a reduction of shopping trips to stores and malls. The changed habits can lead to a change of society and potentially inhere health effects, due to decreasing mobility (obesity) and unidirectional stress of muscles while handling computers. 
  • Third-order effects: These tertiary effects arise from consecutive rebound effects. 
    • The impact of e-commerce influences economy by a change in consumer information and therefore a change in competition experienced by companies. This results in a change of prices, which leads to shifting demand. It is obvious that competition increases by the expansion of e-commerce. For this reason e-commerce most likely leads to lower prices and subsequently to increasing demand. 
    • A number of rebound effects influence the environment: There are changes in energy use patterns, in transportation intensity and infrastructure (freight airports, ferry ports and shipping ports) and in land use (from shopping malls to smaller more decentralized warehouses). Some of these effects result in emissions savings, while some of the emissions just arise from a different source. 
    • As mentioned before the social impact of e-commerce is a change in consumer and lifestyle habits. The third-order effects in this context are characterized by substitute activities of consumers. Since there is a possibility to save time and money by buying online, it is likely that the saved time and money is invested elsewhere. This change in consumer habits has a certain influence on the environment and on economy, but it’s impact is hard to assess. 
One of the most considerable arguments supporting that e-commerce has a positive net environmental impact is the fact, that it enables a more direct way of distribution with a fewer number of retailers [5]. In conventional commerce a product passes through a significant number of trade partners on it’s way from the manufacturer to the consumer. These trade partners can be retailers, franchises, wholesalers, distributors or brokers. In contrast to this, e-commerce enables a distribution with just one, or even without any intermediary. Manufacturers can sell their goods in their own online shops and ship them directly to the consumer. In practice there is still one retailer (e.g. online warehouses) in most of the cases, that orders goods directly from the manufacturer and sells them to consumers. The more direct distribution results in higher efficiency and reduced costs. Figure 1 depicts the paradigm change from conventional marketing to electronic commerce.


Figure 1: Traditional commerce (left) and e-commerce [1] 

The electronic exchange of business data and higher efficiency in the supply chain enable the manufacturers to market their products at lower prices compared to conventional commerce (see efficiency in figure 1). Additionally the markups by intermediaries drop out at electronic commerce, due to fewer retailers. Intermediaries usually sell their goods at a higher price as they paid for them. This means that the price of a good rises with every trade partner it passes through. The result of the change in distribution due to electronic commerce are decreasing costs, lower prices and - by the rules of simple economics - increasing demand, which also means increasing consumption. Therefore the efficiency gains of e-commerce consequently result in rising emissions. This coherence was recognized by researchers already more than a

decade ago [1] and is a strong argument to question the net environmental improvement by e-commerce.
When thinking about the question, if the environmental impact of e-commerce is positive or negative in total, several aspects have to be considered, that bring changes in greenhouse gas emissions and resource usage. The effects of e-commerce that have either positive or negative influence on the environment are summarized in table 1. 


Table 1: The positive and negative impact of e-commerce on the environment

Considering the large number of negative environmental aspects of e-commerce it is doubt- ful, that e-commerce can lead to environmental improvements. Table 1 shows that every positive environmental aspect is accompanied by potentially negative impacts. E-commerce is like every kind of commerce designed to create economic growth, which is in most of the cases counterproductive to environmental goals. This statement can be confirmed by the fact that economic growth involves growing energy demand. Therefore sustainability and economic growth are contradictory [1]. However, the opinions of researchers diversify on this topic, since there is currently no telling argument to answer the question if e-commerce can substantially contribute to a low carbon economy. The SMART 2020 Report constitutes that e-commerce could account for a reduction of 3 percent of the emissions arising from shopping transport [6]. Although this would imply savings of 0.03 GtCO2e in 2020, this cannot be claimed as a huge expectation of the positive environmental impact of e-commerce.

References

[1] J. C. Yang.   Environmental impact of e-commerce and other sustainability - implications of the information economy. Working Paper of the Research Group on the Global Future, Center for Applied Policy Research (CAP), Industrial Technology Research Institute, 2000.

[2] S. Tiwari and P. Singh. Environmental impacts of e-commerce. International Proceedings of Chemical, Biological & Environmental Engineering (IPCBEE), vol.8:202–207, 2011.

[3] InternetWorldStats.com. Internet growth statistics. http://www.internetworldstats.com/emarketing.htm. Accessed: 2013-03-06.

[4] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[5] L.D.D. Harvey. Energy and the new reality 1: Energy Efficiency and the Demand for Energy services. Earthscan, 2010.

[6] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.