Grey energy and Lognormal frequency distribution: Difference between pages

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1.  ''Sustainability - energy sources and production processes''.
A lognormal distribution is one where the logarithm - for example log(X) or ln(X) - of the variable is normally distributed.  


Grey energy is energy is energy produced from relatively more polluting sources, for example burning coal.
Lognormal distributions have a minimum - usually 'worst case' - value, whilst having an infinitely high upside.


Also known as ''brown'' energy.
A simplified illustration is set out below.


Contrasted with ''green'' energy.


A simple (non-symmetrical) lognormal distribution includes the following values:


2. ''Sustainability - total energy cost''.
0.01, 0.1, 1, 10 and 100.


The total energy required to produce goods or services.
The median - the mid-point of the distribution - being 1.


Also known as embodied energy.
 
This distribution is skewed: most of the values being in the lower (left) part of the distribution, the upside being infinitely high, and the downside limit being 0.
 
The logs - for example to the base 10 - of these values are:
 
log(0.01), log(0.1), log(1), log(10) and log(100)
 
= -2, -1, 0, 1 and 2.
 
 
When the parent values are lognormally distributed, the transformed (log) values follow a (symmetrical) normal distribution.
 
So for example the mean, mode and median of the log values above (including -2, -1, 0, 1 and 2) would all be the same, namely the middle value 0.




== See also ==
== See also ==
* [[Brown hydrogen]]
* [[Frequency distribution]]
* [[Climate Financial Risk Forum]]
* [[Leptokurtic frequency distribution]]
* [[Green]]
* [[Lognormally distributed share returns]]
* [[Green asset]]
* [[Median]]
* [[Green bond]]
* [[Normal frequency distribution]]
* [[Green Bond Principles]]
* [[Green buffer]]
* [[Green energy]]
* [[Green loan]]
* [[Green Loan Principles]]
* [[Greenhouse gas]]
* [[Sustainability]]
* [[Thermal coal]]


[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 17:56, 1 July 2022

A lognormal distribution is one where the logarithm - for example log(X) or ln(X) - of the variable is normally distributed.

Lognormal distributions have a minimum - usually 'worst case' - value, whilst having an infinitely high upside.

A simplified illustration is set out below.


A simple (non-symmetrical) lognormal distribution includes the following values:

0.01, 0.1, 1, 10 and 100.

The median - the mid-point of the distribution - being 1.


This distribution is skewed: most of the values being in the lower (left) part of the distribution, the upside being infinitely high, and the downside limit being 0.

The logs - for example to the base 10 - of these values are:

log(0.01), log(0.1), log(1), log(10) and log(100)

= -2, -1, 0, 1 and 2.


When the parent values are lognormally distributed, the transformed (log) values follow a (symmetrical) normal distribution.

So for example the mean, mode and median of the log values above (including -2, -1, 0, 1 and 2) would all be the same, namely the middle value 0.


See also