Multiplier effect on reducing carbon emissions of joint demand and supply side measures in the hydrogen market

The article discusses the importance of hydrogen energy in replacing fossil fuels and achieving net zero carbon emissions by 2050. It outlines three key measures to promote hydrogen energy, reducing the cost of low-carbon hydrogen through technological improvements, increasing the production capacity of low-carbon hydrogen by stimulating investment and enhancing hydrogen use as an energy carrier and in industrial processes through demand-side policies. Using a global computable general equilibrium model, the study examines the effectiveness of these measures in boosting the hydrogen market and reducing global carbon emissions. The findings indicate that each measure, whether implemented individually or together, increases the production and use of low-carbon hydrogen. Crucially, the combined implementation of all three measures results in a reduction of emissions in 2050 that is 2.5 times greater than the sum of the reductions achieved by each measure alone. This significant multiplier effect suggests that joint implementation of supply and demand side policies is essential to maximize the impact on reducing emissions.