Permit markets,carbon prices and the creation of innovation clusters

Innovation clusters combining public and private effort to develop breakthrough technologies promise greater technological advances to slow down climate change. We use a multi-country model with an emission trading system to examine whether and how international climate policy can incentivize countries to create such innovation clusters. We find that a minimal carbon price is needed to attract applied research firms, but countries may nevertheless fail to invest in complementary research infrastructure. We construct a mechanism that leads to innovation clusters when emissions targets are set before uncertainty surrounding technological developments is resolved. It is a combination of low permit endowments for the country with the lowest costs to build the needed infrastructure, compensation for this country by profits from permit trade, and maximal possible permit endowments for the remaining countries. We outline how the EU-ETS can be further refined according to this mechanism.     

Advertisement policy for dual-channel within emissions-controlled flexible production system

Nowadays, industrial firms are very much careful to build a green environment by reducing carbon emissions. The government imposes some rules and regulations to provide a better eco-friendly environment. In this study, the cap-and-trade mechanism has been considered in a production model to control the carbon emissions rate. The manufacturers invest in advanced green technology to reduce per unit emissions. As online and offline selling is crucial to any industry for increasing customer demand, the manufacturers sell their products by dual-channel and advertise their products by online channel to make more popular of their products. Keeping these in mind, a sustainable flexible production model with single-type substitutable product production is considered here by imposing a cap-and-tax policy, investing in green technology, and advertising for products. This model is divided into two cases: with and without investment in green technology. The demand of each manufacturer depends upon an online selling price, an offline selling price, and an online advertisement of the product. A classical optimization technique helps to get the optimum strategies for the online selling price, offline selling price, advertisement investment, green technology, cycle time, and production rate. From the numerical study, it is proved that the industry gets 6.97% more profit in the case of green technology investment and the proposed study gives 5.74% more profit than the traditional production system. Sensitivity analysis and managerial insights are performed.     

Supply‐ versus Demand‐Side Policies in the Presence of Carbon Leakage and the Green Paradox

We consider a climate coalition that seeks to reduce global emissions in the presence of carbon leakage and resource exhaustibility. We show that a credible announcement of future unilateral supply‐side policies delays foreign emissions, and we derive the optimal combination of consumer taxes and producer taxes when we consider leakages from free riders, both within periods and across periods. The tax shares generally differ over time. A decline in the present value of the social cost of carbon over time supports a time path where the consumers’ tax share of the total carbon tax also declines over time. We illustrate our findings with a numerical model.     

Structural production layer decomposition: a new method to measure differences between MRIO databases for footprint assessments

Recent empirical assessments revealed that footprint indicators calculated with various multi-regional input–output (MRIO) databases deliver deviating results. In this paper, we propose a new method, called structural production layer decomposition (SPLD), which complements existing structural decomposition approaches. SPLD enables differentiating between effects stemming from specific parts in the technology matrix, e.g. trade blocks vs. domestic blocks, while still allowing to link the various effects to the total region footprint. Using the carbon footprint of the EU-28 in 2011 as an example, we analyse the differences between EXIOBASE, Eora, GTAP and WIOD. Identical environmental data are used across all MRIO databases. In all model comparisons, variations in domestic blocks have a more significant impact on the carbon footprint than variations in trade blocks. The results provide a wealth of information for MRIO developers and are relevant for policy makers designing climate policy measures targeted to specific stages along product supply chains.     

A multivariate time series analysis of energy consumption,real output and pollutant emissions in a developing economy: New evidence from Nepal

Mountain economies will have to play a central role in attaining the global pursuit of green economic growth as crucial bearers of ecosystems goods and services. However, these economies are not adequately represented in the development policy debates in spite of their fundamental importance towards global sustainable development. This study examines the inter relationships between energy consumption, output and carbon emissions in a developing mountainous economy using an augmented Vector Autoregression model. Time-series data over the period 1975–2013 is studied applying a multivariate framework using population and gross fixed capital formation as additional variables for Nepal. Testing for Granger causality between integrated variables based on asymptotic theory reveals a long-run unidirectional Granger causality running from GDP to energy consumption, and a unidirectional Granger causality running from carbon emissions to GDP. We suggest that the government of Nepal can address energy poverty by accelerating the adoption energy conservation policies such as rationing energy consumption and energy efficiency improvements to narrow the energy supply-demand gap. The opportunity to promote the uptake of decentralised off-grid renewable technologies in remote areas and the large scale development of hydropower at the national level also needs to be prioritized. Our results remain robust across different estimators and contributes to an emerging literature on the nexus relationships between energy consumption, income and carbon emissions in mountainous developing economies.     

转变城市发展方式之低碳城市建设——基于德国经验借鉴

首先从产业能源体系、低碳交通网络及生态环境三方面梳理德国低碳城市建设实践,然后总结德国在低碳意识培养、战略目标制定、政策体系建设等方面值得借鉴的经验,最后从“公平-效率-质量”视角为我国低碳城市建设提出建设路径:加快创新驱动,提高建设效率;提供制度支持,注重建设公平;强调以人为本,提升建设质量。     

Energy efficiency promotion backfires under cap-and-trade

Major climate-cum-energy policies and respective impact projections rest on the widespread belief that increased energy efficiency can be equated with savings in energy use and emissions. This belief is flawed. Due to the rebound effect emissions savings from energy efficiency improvements will be generally less than what is technically feasible, or even be reversed. By means of an analytical general equilibrium model we demonstrate the latter to be true in a case that is both stark and relevant: if electricity generation is subject to a cap-and-trade scheme with partial coverage, increased efficiency of electric devices leads unambiguously to increased carbon emissions. The result implies that a proper distinction between the energy rebound and the carbon rebound is warranted, and that public policy must carefully consider the interactions between energy efficiency promotion and carbon pricing.     

中国碳金融发展:决定于经济还是环境?——基于结构方程模型

气候变化为全球带来严峻考验,碳金融是对气候变化的有效应对,碳金融的发展在我国究竟决定于经济还是环境?采用结构方程模型对碳金融发展的影响因素做出实证分析。结果表明:现阶段我国的经济因素和居民因素对碳金融发展有抑制作用;居民因素在经济因素对碳金融发展影响的路径中起到中介作用,对环境因素产生负效应;环境因素与碳金融发展存在互惠关系,在碳金融发展中起突出作用。最后从科学顶层设计、依法治理,推动低碳经济产业的优化,强化居民、企业环保意识,加强污染防治与生态建设等方面给出建议。     

Assessment of land use and land cover changes and valuation of carbon stocks in the Sergipe semiarid region,Brazil: 1992–2030

The semiarid region in the state of Sergipe, Brazil, approximately 11,000 km², has experienced high deforestation rates in the last decades, which ultimately contribute to global climatic changes. The valuation of ecosystem services of CO₂ sequestration can support definition of environmental policies to decrease deforestation in that region. This study aimed to assess land use and land cover changes in the Sergipe semiarid region between 1992 and 2017 by applying remotely sensed data and technics; simulate the land use and land cover changes between 2017 and 2030 by applying a cellular automaton model, by assuming current land use trends (Business as Usual – BAU) as a reference scenario, and a more conservative scenario (Protected Forest – PF), in which was assumed an effective enforcement of the Brazilian Forest Code established in 2012; simulate the carbon stocks by 2017 assuming the BAU and PF scenarios by 2030, and estimate the Carbon balance between the 2030 and 2017 scenarios; and estimate the economic valuation of carbon emission and sequestration by using the InVEST software. The results showed that agriculture (cropped lands) was main driver of the landscape changes in the study area, which increased 14% by 2017, a net increase of 1494.45 km². The results showed that the total Carbon emissions would reach 736,900 Mg CO₂-eq by assuming the BAU scenario, which would increase the cost of opportunity up to US$ 17.7 million and a social carbon cost varying between US$ 10.3 and US$ 30.2 million. The restoration of the permanent preservation areas could contribute to increase Carbon sequestration up to 481,900 Mg CO₂-eq by 2030, which is equivalent cost of US$ 11.6 million. The natural landscape in the Sergipe semiarid region was strongly affected by deforestation activities occurred between 1992 and 2017. It requires, therefore, effective actions to support and promote restoration of degraded areas. The forested areas within the Sergipe semiarid region were the most affected type of vegetation because of expansion of agricultural fields soil exposures (Exposed Land). Environmental assessments based on scenarios and economic valuations can provide crucial information to support policy and decision makers to improve strategies for environmental management and conservation.     

Not seeing the carbon for the trees? Why area-based targets for establishing new woodlands can limit or underplay their climate change mitigation benefits

Area-based targets for afforestation are a frequent and prominent component of policy discourses on forestry, land use and climate change emissions abatement. Such targets imply an expected contribution of afforestation to the net reduction of greenhouse gas emissions, yet the nature of afforestation undertaken and its geographical distribution means that there is considerable uncertainty over the eventual emission reductions outcomes. This uncertainty is reduced if the net carbon balance is calculated for all potential afforestation sites, considering climate, soil characteristics and the possible types of afforestation (species and management regimes). To quantify the range of possible emissions outcomes for area-based afforestation targets, a new spatial analysis method was implemented. This improved the integration of spatial data on antecedent land use with mapped outputs from forest models defining the suitability and productivity of eleven forestry management alternatives. This above ground carbon data was then integrated with outputs from the ECOSSE (Estimation of Carbon in Organic Soils – Sequestration and Emissions) model which simulates the soil carbon dynamics. The maps and other model output visualisations combining above and below ground carbon highlight where net carbon surpluses and deficits are likely to occur, how long they persist after afforestation and their relationships with antecedent land use, soils, weather conditions and afforestation management strategies. Using more productive land classes delivers more net sequestration per hectare and could mean greater carbon storage than anticipated by emissions reduction plans. Extensive establishment of lower yielding trees on low-quality ground, with organo-mineral soils could, though, result in net emissions that persist for decades. From the spatial analysis, the range of possible outcomes for any target area of planting is substantial, meaning that outcomes are highly sensitive to policy and implementation decisions on the mix of forestry systems preferred and to spatial targeting or exclusions (both at regional and local scales). The paper highlights the importance of retaining the existing presumption against planting of deep peat areas, but also that additional incentives or constraints may be needed to achieve the aggregate rates of emission mitigation implied by policy commitments. Supplementary carbon storage tonnage targets for new forestry would introduce a floor for carbon sequestration outcomes, but would still allow for flexibility in achieving an appropriate balance in the trade-offs between carbon sequestration and the many other objectives that new woodlands are expected to deliver.