Authors : Aanu Loveday Solomon; Ekpu Matthias; William, Merie A. I.; Sunday Luton Uebari; Seyi Sunday Olugbeja; Osondu Chukwuebuka

Volume/Issue : Volume 11 - 2026, Issue 6 - June

Google Scholar : https://tinyurl.com/44w5ak4k

Scribd : https://tinyurl.com/4sn3zzwb

DOI : https://doi.org/10.38124/ijisrt/26jun075

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : The global transition toward net-zero emissions has historically prioritized the decarbonization of the electrical grid through renewable energy deployment. However, the abatement of emissions from heavy industrial thermal processes presents distinct thermodynamic and macroeconomic challenges. This paper provides a comparative macroeconomic analysis of decarbonizing industrial heat versus electrical grids. Utilizing a conceptual framework grounded in structural macroeconomic modeling, we compare capital investment requirements, implications for Gross Domestic Product (GDP) growth, and long-term economic returns. Drawing upon foundational frameworks of energy-growth nexuses (Shahbaz et al., 2020), systematic sustainability transitions (Bhuiyan et al., 2022), and multi-sector national climate solutions (Attanayake et al., 2024), this study demonstrates distinct structural divergences. Our findings indicate that while electrical grid decarbonization requires immense up-front capital for transmission and storage assets, it yields highly predictable longterm economic returns due to falling levelized costs of electricity (LCOE). Conversely, industrial thermal decarbonization requires deep structural capital investments into low-carbon technologies like green hydrogen (H_2) and carbon capture, utilization, and storage (CCUS). Due to high operating expenses (OPEX) and technology premiums, industrial thermal abatement introduces higher near-term risks to industrial competitiveness and GDP growth, but offers profound systemic resilience and raw material stability over long horizons. Ultimately, integrated multi-sector planning is required to mitigate macroeconomic shocks during the structural transition.

Keywords : Macroeconomic Modeling; Industrial Heat Decarbonization; Grid Decarbonization; Capital Investment; GDP Growth; Long-Term Economic Returns.

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