The impact of economic activity in Asturias on greenhouse gas emissions: consequences for environmental policy within the Kyoto Protocol framework

Climate change is one of the major worldwide environmental concerns. It is especially the case in many developed countries, where the greenhouse gas emissions responsible for this change are mainly concentrated. For the first time, the Kyoto Protocol includes an international agreement for the reduction of the net emissions of these gases. To fulfil this agreement measures designed to reduce or limit current emissions have to be brought into force. Consequently, fears have arisen about possible consequences on competitiveness and future development of manufacturing activities and the need for support mechanisms for the affected sectors is obvious. In this paper, we carry out a study of the emissions of gases responsible for climate change in Asturias (Spain), a region with an important economic presence of sectors with intensive emissions of CO(2), the chief greenhouse gas. To be precise, in the first place, the volumes of direct emissions of the said gases in 1995 were calculated, showing that the sectors most affected by the Kyoto Protocol in Asturias are iron and steel and electricity production. Secondly, input-output analysis was applied to determine the direct and indirect emissions and the direct, indirect and induced emissions of the different production sectors, respectively. The results derived from the direct and indirect emissions analysis and their comparison with the results of the former allow us to reach some conclusions and environmental policy implications.     

Environmental sub models for a macroeconomic model: agricultural contribution to climate change and acidification in Denmark

Integrated modelling of the interaction between environmental pressure and economic development is a useful tool to evaluate environmental consequences of policy initiatives. However, the usefulness of such models is often restricted by the fact that these models only include a limited set of environmental impacts, which are often energy-related emissions. In order to evaluate the development in the overall environmental pressure correctly, these model systems must be extended. In this article an integrated macroeconomic model system of the Danish economy with environmental modules of energy related emissions is extended to include the agricultural contribution to climate change and acidification. Next to the energy sector, the agricultural sector is the most important contributor to these environmental themes and subsequently the extended model complex calculates more than 99% of the contribution to both climate change and acidification. Environmental sub-models are developed for agriculture-related emissions of CH(4), N(2)O and NH(3). Agricultural emission sources related to the production specific activity variables are mapped and emission dependent parameters are identified in order to calculate emission coefficients. The emission coefficients are linked to the economic activity variables of the Danish agricultural production. The model system is demonstrated by projections of agriculture-related emissions in Denmark under two alternative sets of assumptions: a baseline projection of the general economic development and a policy scenario for changes in the husbandry sector within the agricultural sector.     

Influencing climate change regulations: examining responses from large-scale firms

Recent climate change projections and a push towards a universal agreement on carbon emission reductions suggest that firms will need to respond to future regulatory changes. This paper employs an influencing strategies lens to examine how large-scale firms might respond to future climate change regulations. The study uses a structured qualitative methodology to explore and explicate the strategic responses from 21 international firms to the proposed emissions trading scheme outlined in Australia's Garnaut Climate Change Review. The results of the analysis show that firms can use pre-emptive influencing strategies in attempts to shape and mould regulatory design parameters, secure high levels of transitional economic support, and shift the balance of public policies and expenditure. Complementary defensive strategies may also target policy makers and regulators with some of the potential negative consequences of the new regulations.     

The Value of Linking Mitigation and Adaptation: A Case Study of Bangladesh

There are two principal strategies for managing climate change risks: mitigation and adaptation. Until recently, mitigation and adaptation have been considered separately in both climate change science and policy. Mitigation has been treated as an issue for developed countries, which hold the greatest responsibility for climate change, while adaptation is seen as a priority for the South, where mitigative capacity is low and vulnerability is high. This conceptual divide has hindered progress against the achievement of the fundamental sustainable development challenges of climate change. Recent attention to exploring the synergies between mitigation and adaptation suggests that an integrated approach could go some way to bridging the gap between the development and adaptation priorities of the South and the need to achieve global engagement in mitigation. These issues are explored through a case study analysis of climate change policy and practice in Bangladesh. Using the example of waste-to-compost projects, a mitigation-adaptation-development nexus is demonstrated, as projects contribute to mitigation through reducing methane emissions; adaptation through soil improvement in drought-prone areas; and sustainable development, because poverty is exacerbated when climate change reduces the flows of ecosystem services. Further, linking adaptation to mitigation makes mitigation action more relevant to policymakers in Bangladesh, increasing engagement in the international climate change agenda in preparation for a post-Kyoto global strategy. This case study strengthens the argument that while combining mitigation and adaptation is not a magic bullet for climate policy, synergies, particularly at the project level, can contribute to the sustainable development goals of climate change and are worth exploring.     

Climate change policies and capital vintage effects: the cases of US pulp and paper, iron and steel, and ethylene

Changes in material use, energy use and emissions profiles of industry are the result of complex interrelationships among a multitude of technological and economic drivers. To better understand and guide such changes requires that attention is paid to the time-varying consequences that technology and economic influences have on an industry's choice of inputs and its associated (desired and undesired) outputs. This paper lays out an approach to improving our understanding of the dynamics of large industrial systems. The approach combines engineering and econometric analysis with a detailed representation of an industry's capital stock structure. A transparent dynamic computer modeling approach is chosen to integrate information from these analyses in ways that foster participation of stakeholders from industry and government agencies in all stages of the modeling process-from problem definition and determination of system boundaries to generation of scenarios and interpretation of results. Three case studies of industrial energy use in the USA are presented-one each for the iron and steel, pulp and paper, and ethylene industry. Dynamic models of these industries are described and then used to investigate alternative carbon emissions and investment-led policies. A comparison of results clearly points towards two key issues: the need for industry specific policy approaches in order to effectively influence industrial energy use, fuel mix and carbon emissions, and the need for longer time horizons than have typically been chosen for the analysis of industrial responses to climate change policies.     

“排污权”和“碳排放权”交易的减污降碳协同效应研究——基于污染治理和政策管理的双重视角

全面系统地评估排污权交易和碳排放权交易的减污降碳协同效应，对于进一步发挥应对气候变化和大气污染治理的协同效应、推进全国统一生态环境市场建设具有重要意义。本文基于污染治理和政策管理的双重视角，采用多时点双重差分和倾向得分匹配，分别检验排污权交易和碳排放权交易的减污和降碳效应；并在此基础上，研究三种政策情景下（排污权交易、碳排放权交易以及组合政策）的协同减排效应差异。研究表明，从污染治理视角，排污权交易和碳排放权交易均显著降低了二氧化硫和二氧化碳排放量，实现了减污降碳的协同效应；从政策协同管理视角，在减少二氧化硫污染方面，组合政策比各类政策的单独实施更为有效；在降低二氧化碳排放方面，碳排放权交易比排污权交易和组合政策更为有效。因此，在推进气候变化应对和大气污染治理机制融合的进程中，应有所侧重地推进碳排放权交易和排污权交易组合使用。     

Development and Climate Change: A Mainstreaming Approach for Assessing Economic,Social, and Environmental Impacts of Adaptation Measures

The paper introduces the so-called climate change mainstreaming approach, where vulnerability and adaptation measures are assessed in the context of general development policy objectives. The approach is based on the application of a limited set of indicators. These indicators are selected as representatives of focal development policy objectives, and a stepwise approach for addressing climate change impacts, development linkages, and the economic, social and environmental dimensions related to vulnerability and adaptation are introduced. Within this context it is illustrated using three case studies how development policy indicators in practice can be used to assess climate change impacts and adaptation measures based on three case studies, namely a road project in flood prone areas of Mozambique, rainwater harvesting in the agricultural sector in Tanzania and malaria protection in Tanzania. The conclusions of the paper confirm that climate risks can be reduced at relatively low costs, but the uncertainty is still remaining about some of the wider development impacts of implementing climate change adaptation measures.     

Climate engineering and climate tipping-point scenarios

Many scientists fear that anthropogenic emissions of greenhouse gases have set the Earth on a path of significant, possibly catastrophic, changes. This includes the possibility of exceeding particular thresholds or tipping points in the climate system. In response, governments have proposed emissions reduction targets, but no agreement has been reached. These facts have led some scientists and economists to suggest research into climate engineering. In this paper, we analyze the potential value of one climate engineering technology family, known as solar radiation management (SRM) to manage the risk of differing tipping-point scenarios. We find that adding SRM to a policy of emissions controls may be able to help manage the risk of climate tipping points and that its potential benefits are large. However, the technology does not exist and important indirect costs (e.g., change in precipitation) are not well understood. Thus, we conclude the SRM merits a serious research effort to better understand its efficiency and safety.     

The regional economic impact of reducing greenhouse gas emissions: Western Australia

This study analyses the general-equilibrium impacts of an international climate change response policy on the economy of Western Australia (WA), one of the most mining-based and energy-intensive states of Australia. It finds that emissions would fall by up to 11% from the base level in WA. However, such environmental benefits emanate at some costs to the state economy; in terms of foregone gross state product, the costs are up to 3% of the base level. Indeed, the actual costs and benefits depend on the precise design of the climate change response policy as well as on the other policies within which it operates. For example, when emission quota permits are sold to industries and no tradeable carbon credits (i.e. credits for the carbon sequestrated in Kyoto forests) are granted, emissions decline by about 8% and GSP falls by about 3% of the base levels. If carbon credits are tradeable, however, the environmental benefits could be increased and the GSP cost could be reduced substantially. Also, the reduced economic activity caused by emission abatement results in a modest fall in net government revenue, despite the additional revenue from permit sales in some cases. Accordingly, government’s fiscal package surrounding the emission permits would influence the emission abatement impacts on the economy. With regard to the effects on the structure of the state economy, the oil and gas industry suffers only a slight contraction but the energy-supplying sector as a whole contracts substantially. It is therefore not surprising that the impacts on the WA economy of curbing emissions by energy and transport industries alone are quite significant when compared to those resulted from all industries’ compliance with the abatement scheme. It needs to be noted that the model projections analysed in the paper are based on simplifying assumptions and tentative scenarios, and hence should be viewed with caution and not be understood as unconditional forecasts.     

Energy technology modelling of major carbon abatement options

The International Energy Agency Energy Technologies Perspectives (ETP) model is used to assess the prospects for carbon abatement options, including carbon capture and storage, up to 2050. Three main scenarios are considered: a Baseline scenario with current energy policies, an accelerated technology scenario that seeks to return energy-related CO₂ emissions in 2050 to their level in 2005, and a scenario for which CO₂ emissions are reduced at 50% of current levels by 2050. To reach these emissions reduction targets, annual global CO₂ emissions in the year 2050 must be reduced by 35 GtCO₂ to 48 GtCO₂ compared to the Baseline scenario. The analysis presented here shows that a broad portfolio of emissions reducing technologies will need to be deployed across all economic sectors of the global economy to reach these targets. Carbon dioxide capture and storage (CCS) is one of the suite of technologies employed across the globe to reach these targets. CCS adoption occurs in many aspects of the global economy and accounts for 14–19% of all emissions reductions. The total amount of CO₂ captured and stored in deep geologic reservoirs up to 2050 ranges between 5.1 GtCO₂ and 10.4 GtCO₂ in these two climate policy scenarios. Up to 2030, more than half of total CCS deployment takes place in OECD countries. After 2035, emerging economies account for more than half of total CCS use. This paper also demonstrates that as the climate policy becomes more stringent it will be necessary for CCS to deploy more extensively in many different industries outside of the electric power sector which often receives the most attention in discussions of CCS's role in addressing climate change.