Energy consumption, CO2 emissions, and economic growth: evidence from Indonesia

Energy policy-makers in Indonesia are interested in the causal relationship between energy consumption, CO₂ emissions, and economic growth. Therefore, this paper attempts to analyze the short- and long-run causality issues between energy consumption, CO₂ emissions, and economic growth in Indonesia using time-series techniques. To this end, annual data covering the period 1965–2006 are employed and tests for unit roots, co-integration, and Granger-causality based on an error-correction model are applied. The results show that there is a bi-directional causality between energy consumption and CO₂ emissions. This means that an increase in energy consumption directly affects CO₂ emissions and that CO₂ emissions also stimulate further energy consumption. In addition, the results support the occurrence of uni-directional causality running from economic growth to energy consumption and to CO₂ emissions without any feedback effects. Thus, energy conservation and/or CO₂ emissions reduction policies can be initiated without the consequent destructive economic side effects.     

HOUSEHOLDS’ BEHAVIOUR AND ENVIRONMENTAL EMISSIONS IN A REGIONAL ECONOMY

Households have significant demand-side potential to drive reductions in atmospheric emissions, including both direct and indirect emissions. Our analysis focuses on the behaviour of a regional economy (Aragon, Spain) and its impact on greenhouse gases (GHG) and sulphur dioxide (SO₂). Using a CGE model, we simulate scenarios and evaluate the environmental impact of adopting changes considered in the Aragonese Climate Change and Clean Energy Strategy. Specifically, we analyse the impact of electricity savings and the promotion of public transport (bus or train) versus private car use. The results indicate that 1 MWh of saving in electricity consumption by households could reduce emissions of GHG by 0.112 kt of equivalent CO₂ and 8.209 kg of SO₂ with a shift in demand preferences and 0.022 kt of equivalent CO₂ and 7.612 kg of SO₂ with an efficiency improvement. Moreover, household changes in demand preferences regarding private/public transport, also contribute to reduce emissions.     

Renewable and non-renewable energy consumption,environmental degradation and economic growth in Tunisia

The aim of this document is to investigate the dynamic relationship between economic growth, renewable energy consumption, energy consumption and CO₂ emissions in Tunisia over the period 1990–2015. Unit root tests and co-integration test was used in order to detect the order of stationary and to test the existence long run links between the used variables. We apply the Granger causality test and VECM model to discover the short and long run links between the variables. Results have shown a bidirectional causal relationship between energy use and CO₂ emissions. Economic growth affects CO₂ emission in the short and long run. While there is a unidirectional links running from energy use to economic growth at short run. The paper shares best practices from Tunisia in terms of efficient use of renewable energy policy enablers, which may be contextualized in other emerging economies in order to keep sustainability and to achieve the green economy.     

Trade Liberalization and Pollution: An Input–Output Study of Carbon Dioxide Emissions in Mexico

This paper examines the environmental effects associated with Mexico's participation in the North American Free Trade Agreement (NAFTA). The objective is to provide quantitative estimates of carbon dioxide (CO₂) emissions from changes in the level and structure of production and consumption activity in Mexico following a liberalization of trade. The quantitative analysis was performed using input–output methods with fuel use modifications to account for CO₂ emissions before and after NAFTA's implementation. As a result of NAFTA, CO₂ emissions are expected to increase from the anticipated increase in the size of the Mexican economy. While total emissions increase as a result of tariff elimination, there is also a shift in the structure of production and final consumption away from those sectors that are the most C02 intensive.     

Regional energy efficiency and its determinants in China during 2001–2010: a slacks-based measure and spatial econometric analysis

Carbon dioxide (CO₂) emissions are largely driven by fossil fuels. To reduce CO₂ emissions in China, it is important to determine influential factors of energy efficiency. This paper introduces a slacks-based measure window analysis approach to evaluate regional dynamic energy efficiency during 2001–2010, and then explores energy efficiency determinants by considering spatial effects, which is conducted based on spatial econometric models. The empirical results show that there exist evident spatial correlations between regional energy efficiencies in China. We find that, there exist evident disparities in cumulative effects of energy efficiency among the eastern, central and western areas. Interestingly, significant energy efficiency spatial spillovers can be clearly found between regions within the western area and across the eastern and western areas. It is found that, energy structure, energy price, railway transportation development and R&D stock are significant at national level. However, energy structure and railway transportation development are insignificant in the central and western areas, while energy price and R&D stock are insignificant in the eastern and central areas, respectively. Industrial structure and urbanization level are found to be insignificant at national level, but industrial structure is significant in the eastern and western areas, and urbanization level is significant in the central and western areas. Surprisingly, industrial structure and urbanization level are found to have positive impacts on energy efficiency in the western area. In addition to regional disparities and local conditions, policies making should take efficiency spatial spillovers into consideration. Several interesting policy implications are achieved.     

A NEW SUT CONSOLIDATION METHOD TESTED BY A DECOMPOSITION OF VALUE ADDED AND CO2 EMBODIED IN EU27 EXPORTS

This paper develops a method to consolidate national supply–use tables (SUTs) into a single supra-regional SUT. The method deals with mirror trade statistics problems, such as the different valuation of imports and exports, and it corrects for double-counting re-exports. The method is tested by means of a decomposition of value added and CO₂ emissions embodied in EU27 exports to third countries. When the national SUTs for the period 2000–2007 are used, neglecting intra-European Union spillover and feedback effects results in an underestimation of the embodied value added of 12–15%. Not consolidating the national tables properly leads to a further underestimation of 11–16%. With these underestimations removed, EU27 foreign exports still only explain around 11% of EU27 Gross Domestic Product, whereas they explain 17% of the EU27 CO₂ emissions. Hence, the income benefits of these exports are, in relative terms, considerably smaller than their CO₂ emission cost.     

Mitigating climate change – how do corporate strategies differ?

Many companies are facing increasing pressure by governments, shareholders and other stakeholders to reduce their CO₂ emissions in order to mitigate climate change. The importance of managing CO₂ emissions and crafting adequate CO₂ strategies has increased for those companies affected. We present a framework that conceptualizes a company's CO₂ strategy as the focus on one or a combination of several strategic objectives: CO₂ compensation, CO₂ reduction and carbon independence. In order to investigate the CO₂ strategies of a worldwide sample of 91 electricity producers we perform a content analysis of their answers to the Carbon Disclosure Project (CDP). We demonstrate the measures the companies take to manage their emissions, the CO₂ strategies they adopt and antecedents that influence these strategies. We find that half of the companies take parallel emission management measures that aim at all three strategic objectives, while the other half pursue selected objectives only. We also find that companies with different CO₂ strategies significantly differ in terms of regional affiliation, company size and absolute amount of CO₂ emissions, while we could not identify a significant difference in relative CO₂ emissions. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

The emission cost of international sourcing: using structural decomposition analysis to calculate the contribution of international sourcing to CO2-emission growth

The effect of changes in trade patterns, particularly increasing international sourcing, on global CO₂-emissions growth has yet to be clearly understood. In this paper, we estimate the emission cost of sourcing (ECS), which originates from replacing domestic products by imports from countries with more CO₂-intensive technologies. Using a structural decomposition analysis, we find that changes in sourcing patterns between 1995 and 2007 contribute (1) to reducing territorial emissions in high-wage countries (70% of their territorial emissions growth) and (2) to increasing territorial emissions in low-wage countries (30% of their territorial emissions increase). The net global effect, the ECS, amounts to 18% of total global CO₂-emissions growth. Our results call the climate change policies based on territorial principles into question given that they disregard that differences in emission intensities between countries contribute to raising global emissions. In contrast, policies fostering the transfer of cleaner technologies to low-wage countries decrease the ECS.     

Optimizing regional allocation of CO2 emissions considering output under overall efficiency

Reduction of CO₂ emissions is a strategic priority for the construction industry, however current schemes do not provide the level of performance that is required. There is also a lack of understanding of how to allocate CO₂ emissions targets within regions. Therefore, this research study develops a three-stage empirical system to identify the CO₂ emissions allocation scheme for the Chinese construction industry at the provincial level. The results indicate that (a) the construction industry's CO₂ emissions need to be reduced by ca. 10% from the base level in 2017; (b) 86.7% of the provinces have a relatively large capacity for CO₂ emissions reduction; (c) China's East region accounts for 44.0% of the total amount for CO₂ emissions reduction; and (d) about one-third of the provinces face enormous pressure to reduce CO₂ emissions by more than 10% on the base of 2017. This research study provides unique insights and guidance to support assessment of the regional allocation of CO₂ emissions for the construction industry, which is a valuable reference for other countries and industries.     

Changes in China’s production-source CO2 emissions: insights from structural decomposition analysis and linkage analysis

This paper presents an input–output based methodology – structural decomposition analysis (SDA) plus linkage analysis, for identifying the key factors and sectors that affected production-source CO₂ emissions in China. The proposed methodology extends the SDA to account for the import substitution effect within an open economy such as China and incorporates the emission linkage by which the effect of the input mix on CO₂ emissions can be understood in depth. Empirical results indicate that, between 2005 and 2010, improving emission intensity and input intensity had helped to reduce CO₂ emissions; meanwhile, capital investment explained the majority of the increases in CO₂ emissions brought about by final demand, and import substitution was also observed to increase CO₂ emissions. Moreover, nine key emission sectors have been identified, and in this regard, domestic inputs became more CO₂-intensive in 2010 than it was in 2005.     

ISO 14001 and CO2 emissions: An analysis of the contingent role of country features

This study explores whether the association between the aggregate level of ISO 14001 adoption in a country and the reduction of its CO₂ emissions differs across national settings. We analyze potential variations in three country features: intensity of competition, inclination of firms to behave ethically, and the importance that firms attach to relationships with stakeholders. Based on a sample of 53 countries for the period 2007–2017, our results show that the connection between the aggregate level of ISO 14001 adoption and lower levels of CO₂ emissions is stronger in countries where firms tend to behave ethically but is weaker in countries where there is intense competition or where firms place high emphasis on relationships with stakeholders. These findings expand our understanding about the macrolevel consequences of ISO 14001 adoption.     

A CARBON FOOTPRINT TIME SERIES OF THE UK – RESULTS FROM A MULTI-REGION INPUT–OUTPUT MODEL

The framework and results of an international multi-region input–output (MRIO) model for the UK are presented. A time series of balanced input–output tables for the UK was constructed for the period 1992 to 2004 by using a matrix balancing procedure that is able to handle conflicting external data and inconsistent constraints. Detailed sectoral and country-specific trade data for the UK were compiled and reconciled with the UK input–output data, and economic and environmental accounts for three world regions were integrated in a UK-specific MRIO model. This was subsequently used to calculate a time series of national carbon footprints for the UK from 1992 to 2004. Greenhouse gas emissions embedded in UK trade are distinguished by destination of imports to intermediate and final demand. Most greenhouse gases show a significant increase over time in consumer emissions and a widening gap between producer and consumer emissions. Net CO₂ emissions embedded in UK imports increased from 4.3% of producer emissions in 1992 to a maximum of 20% in 2002. The total estimated UK carbon footprint in 2004 was 730 Mt for CO₂ and 934 Mt CO₂ equivalents for all greenhouse gases.     

Energy and CO2 emission relationships in the NAFTA trading bloc: a multi-regional multi-factor energy input–output approach

The North-America Free Trade Agreement (NAFTA) has brought together the economies of Canada, Mexico, and the US into forming one of the largest trading blocs worldwide (within the top CO₂ emitters). However, the current global protectionist discourse threatens the agreement. This paper analyzes the energy and energy-related CO₂ emission relationships between NAFTA countries in 2014 to gain insights into the climate change implications of current integration and the possible cancelation of the agreement. The analysis is performed with a multi-regional version of the multi-factor energy input–output model. The results show that NAFTA has not built a single integrated energy system, though it has helped reduce energy-related CO₂ emissions. Moreover, if NAFTA is not revoked, further integration would depend on the capacity of the Mexican energy sector to converge to the performance of its trade partners’ energy sectors. Conversely, a broken deal would induce negative environmental externalities.     

Does financial development stimulate environmental sustainability? Evidence from a panel study of 115 countries

This paper investigates the moderation effect of financial development (FD) on the environmental Kuznets curve (EKC). Using comprehensive panel data of 115 countries spanning the 1990–2016 period and dividing the countries into different income groups, the researcher found systematic differences in the relationship between significant indicators of environmental degradation and economic growth. More specifically, the interaction effect of FD on the relationship between gross domestic product (GDP) growth and CO₂ emissions are positive; nevertheless, the interaction effect of FD on the relationship between GDP squared and CO₂ emissions become negative for all income groups and therefore supports the EKC. Moreover, the interaction effect of FD is negative on the relationship of GDP with both CH₄ and PM_2.5 emissions in the middle‐income groups, whereas the interaction effect of FD on the relationship between GDP squared and PM_2.5 emissions are negative for the high‐income group. Our results suggest that FD can reduce environmental degradation without adversely impacting on growth.     

What is the potential impact of a taxation system reform on carbon abatement and industrial growth in China?

Economists have long argued that market-based environmental policy such as an environmental tax is beneficial to abate pollution emissions. This study aims at investigating the impact of carbon tax levy on carbon dioxide (CO₂) abatement and industrial growth in China. To this end, the marginal abatement cost (MAC) of industrial CO₂ emissions is estimated as the benchmark of setting the carbon tax rate by using the directional distance function (DDF). This paper employs the polynomial dynamic panel model to forecast the impact of carbon tax levy on target variables such as sectoral value-added and CO₂ intensity. The results reveal that the levy of a CO₂ tax has a negative impact on industrial output only in the short term. In the long term, the impact of CO₂ tax levy on output will become positive. The levy of a CO₂ tax is always beneficial to reduce CO₂ intensity. Corresponding policy suggestions for an environmental taxation system reform are given in the concluding section.     

Impact of CO2 Emission Variation on Firm Performance

The quantifying and reporting of greenhouse gas emissions is one of the most important tools for monitoring and auditing proposed to mitigate climate change, and it also directly affects business. It is thus vital that at this time we learn in detail whether firms actually report on greenhouse gas emissions and make the account entries that must be included within it. This research is twofold: first to analyse the reports on greenhouse gas emissions of international firms in the 2007 and 2008 period and to see what kind of variation occurs in CO₂ emissions between 2006–2007 and 2007–2008, and second to determine the impact that this variation (2006–2007) can have on firm performance in four time periods (t, t + 1, t + 2 and t + 3) that correspond to 2007, 2008, 2009 and 2010, taking two variables as a measure of firm performance, ROE and ROA, and considering a time period affected by a financial crisis. The results obtained show that there was a reduction in CO₂ emissions in the 2006–2007 period, and also in the 2007–2008 period. As regards the impact that the variation in CO₂ emissions has on ROE and ROA, CO₂ emission variation is a significant but negative variable only for ROA_2007 and for the rest of the years it is not statistically significant either for ROE or ROA. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Environmental Management in Japan: Applications of Input–Output Analysis to the Emission of Global Warming Gases

Environmental management requires, among other things, the incorporation of environmentally friendly technologies into production processes of environmentally friendly technologies into production processes at the producer level and the adoption of energy consumption patterns which save energy use at the household level. The systemwide approach involving both technology choice and consumer preference seems particularly essential for controlling the total emission of global warming gases. CO₂ and other global warming gases, as well as certain pollution causing gases, are produced when fossil fuels are burnt; and the consumption of fossil fuels occurs in both the production and consumption of goods and services. In this paper we discuss how input–output analysis can be used to estimate the entire production and consumption of global warming gases conditional on production technology and consumer preferences. We also present estimation results and their application to some environmental management issues in Japan. © 1997 John Wiley & Sons, Ltd.     

基于DEA方法的北京家庭耗能问题的研究

现阶段,"低碳"已经成为了愈演愈烈的热门话题。随着公民们环保意识的提高,越来越多的人关注碳排放的影响,并希望可以得到对日常生活行为的建议指导,以达到全民低碳的效应。随着我国城市化面积的不断扩大,城市家庭中,能源消耗所产生的碳排放成为了碳排放中比较重要的组成部分。以北京为例,分析家庭耗能产生碳排放的主要能源,电、煤、天然气和煤气以及石油气。通过DEA(数据包络分析法)对整个耗能投入进行分析,对北京家庭耗能的效率进行评估,并根据实验结果给出合理的意见和建议。     

CALCULATING ENERGY-RELATED CO2 EMISSIONS EMBODIED IN INTERNATIONAL TRADE USING A GLOBAL INPUT–OUTPUT MODEL

The Global Resource Accounting Model (GRAM) is an environmentally-extended multi-regional input–output model, covering 48 sectors in 53 countries and two regions. Next to CO₂ emissions, GRAM also includes different resource categories. Using GRAM, we are able to estimate the amount of carbon emissions embodied in international trade for each year between 1995 and 2005. These results include all origins and destinations of emissions, so that emissions can be allocated to countries consuming the products that embody these emissions. Net-CO₂ imports of OECD countries increased by 80% between 1995 and 2005. These findings become particularly relevant, as the externalisation of environmental burden through international trade might be an effective strategy for industrialised countries to maintain high environmental quality within their own borders, while externalising the negative environmental consequences of their consumption processes to other parts of the world. This paper focuses on the methodological aspects and data requirements of the model, and shows results for selected countries and aggregated regions.     

Transport scenarios in a company strategy

The environmental company strategy of the case company Oslo Sporveier includes scenarios for the development of person transport in Oslo up to year 2016. The basis for three different scenarios is described. This paper presents the use of scenarios as background for environmental reporting. Emissions, energy, land and time use from person transport in the three different scenarios were determined. The scenarios were (i) a private car scenario, where the main growth in person transport is to be met with a strong increase in the use of private cars, (ii) a public transport scenario, where the increase in person transport is to be taken care of with a strong increase in the public transport, and (iii) the sustainability scenario, with a reduction in total person transport, increased share of public transport and walking/bicycling, and reduced share of private car use. The total energy use, CO₂ emissions, NO_x emissions and particle emissions from person transport in Oslo are reduced in all three scenarios compared with the situation in 1996. The reduction is smallest in the private car scenario and largest in the sustainability scenario. The land use increases in the private car scenario and the public transport scenario, while there is a reduction in land use in the sustainability scenario. The total time consumption connected to person transport increases in all three scenarios. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.