Short-run allocation of emissions allowances and long-term goals for climate policy

We use economic analysis to evaluate grandfathering, auctioning, and benchmarking approaches for allocation of emissions allowances and then discuss practical experience from European and American schemes. In principle, auctions are superior from the viewpoints of efficiency, fairness, transparency, and simplicity. In practice, auctions have been opposed by important sectors of industry, which argue that carbon pricing without compensation would harm international competitiveness. In the European Union's Emissions Trading System, this concern led to grandfathering that is updated at various intervals. Unfortunately, updating gives industry an incentive to change behavior to influence future allocation. Furthermore, the wealth transferred to incumbent firms can be significantly larger than the extra costs incurred, leading to windfall profits. Meanwhile, potential auction revenues are not available to reduce other taxes. By circumscribing free allocation, benchmarking can target competitiveness concerns, incur less wealth transfer, and provide a strategy consistent with transitioning to auctions in the long run.     

Lexicographic preference in biodiversity valuation: Tests of inconsistencies and willingness to pay

Previous contingent valuation (CV) studies on biodiversity have indicated that as much as one-quarter of the respondents show lexicographic preferences when facing biodiversity-money trade-offs. This behaviour is incompatible with welfare theory underlying CV, and thus questions the validity and reliability of the outcome of CV of changes in biodiversity. However, it is difficult from CV responses to distinguish between strict and modified lexicographic preferences, and those attaching a high value to biodiversity. This paper adds to the empirical evidence showing that what at first hand seems to represent strict lexicographic preferences is at most representing modified lexicographic preferences, and probably rather represent just high valuation of biodiversity. Data on both hypothetical and actual willingness to pay (WTP) from a CV study on biodiversity were used to perform tests of inconsistent attitudes to estimate the maximum share of non-compensatory preferences for biodiversity. The results show that there are very few respondents in the group that consistently state high preference for biodiversity preservation and show clear reluctance to trade-off biodiversity with other goods. However, this group also had higher WTP, both hypothetical and actual, than the reference group. This is consistent with exchange preferences and steep indifference curves. Thus, people with lexicographic preferences for biodiversity are probably less numerous than previously indicated.     

Scope insensitivity in contingent valuation of complex environmental amenities

It has been argued that respondents in contingent valuation (CV) surveys, asked to value complex environmental amenities, will state willingness to pay (WTP) independently of the scope of the project. Such insensitivity to scope would be at odds with rational choice, and could therefore imply that CV is not a theoretically valid method for biodiversity valuation. The scope test in the present CV study was applied to endangered species preservation. Respondents were split in four sub-samples facing different scopes of endangered species preservation. The design allowed for both external and internal scope tests. Furthermore, the tests were split according to elicitation format. Of four external tests of insensitivity to scope, one was rejected, two gave mixed results, depending on either the type of test or elicitation format, and for the last one the null hypothesis could not be rejected. Of five internal tests, insensitivity to scope was rejected in three cases, one test gave mixed results, and one could not be rejected. Survey design features of the CV study, especially an unfamiliar sub-group of endangered species, could explain the apparent insensitivity to scope observed.     

Trace Element Patterns and Seasonal Variability of Dust Precipitation in a Low Polluted City – The Example of Karlsruhe/Germany

Urban areas of different land uses can be distinguished by their specific patterns of atmospheric dust and trace element precipitation. Dusts emitted from industrial areas with fossil fuel processing, for instance, are enriched in V, Ni and Co. Cluster analysis groups sampling sites based on their specific element patterns. The resulting groups correspond to the surrounding land use: Urban sampling sites were identified showing similar patterns of dust and trace element precipitation as a reference site; dusts of other urban sites were influenced by diffuse pollution (caused by non-point and dispersed pollution sources), or by specific industrial emissions. Cluster analysis was also used to characterize the chemical dust composition. Three clusters of typical element associations were distinguished. These clusters represent the dust matrix, diffuse urban pollution and pollution due to fossil fuel processing. Dust precipitation and chemical dust composition show seasonal variations. Dust precipitation and concentrations of trace elements in the precipitated dust are negatively correlated during the annual courses. The highest concentrations of trace elements occur during winter, whereas the highest precipitations of dust were found during summer. This finding stresses that both, precipitation and concentration have to be addressed for the environmental assessment of urban dusts.     

A new generic sub-model for radionuclide fixation in large catchments from continuous and single-pulse fallouts, as used in a river model

This paper presents a new general sub-model for fixation in catchment areas to be used within the framework of a river model for substances such as radionuclides and metals from continuous and single-pulse fallouts. The model has been critically tested using data from 27 European river sites covering a very wide geographical area and contaminated by radiocesium and radiostrontium from the Chernobyl accident and from the nuclear weapons tests (NWT fallout). This modelling approach gives radionuclide concentrations in water (total, dissolved and particulate phases) at defined sites on a monthly basis. The overall river model is based on processes in the upstream river stretch and in the catchment area. The catchment area is differentiated into inflow (approximately dry land) areas and outflow (approximately wetland) areas. The model has a general structure, which can be used for all radionuclides or substances. It is simple to apply in practice since all driving variables may be readily accessed from maps and standard monitoring programs. The driving variables are: latitude, altitude, catchment area, mean annual precipitation and fallout. Note that for large catchments, this model does not require data on the characteristic soil type or the percentage of outflow areas (wet lands) in the catchment, as in most previous models, since in practice it is very difficult to obtain reliable data on characteristic soil type or percentage of outflow areas, especially in large and topographically complex catchments. Modelled values have been compared to empirical data from rivers sites covering a wide domain (catchment areas from 3000 to 3,000,000 km2, precipitation from 400 to 1700 mm/year; fallouts from 1600 to 280,000 Bq/m2; altitudes from 0 to 1000 m.a.s.l. and latitudes from 41 degrees to 72 degrees N). The river model with its sub-model for fixation predicts close to the uncertainty factors given by the empirical data, which have been shown to be about a factor of 1.6 for 137Cs and a factor of 2.2 for 90Sr in river water. The obtained characteristic uncertainty factors for 137Cs from the Chernobyl fallout is 2.4, for 137Cs from the NWT fallout it is 1.3 and for the 90Sr results from the NWT fallout it is 3 using the new model.     

Automatic sorting of ichthyoplankton; Factors controlling plankton density in gradients of silica

Following isopycnic sedimentation in density gradients of colloidal silica (Ludox AM), zooplankton segregated into 3 broad bands of increasing density which included, respectively, fish eggs, invertebrates, and fish larvae. The zone of fish eggs was contaminated with Sagitta spp. and the zone of fish larvae was overlapped partially by mysids and euphausids. We have sought to minimize contamination through modifications of the silica gradients which might shift banding densities of the ichthyoplankton or of the contaminating invertebrates. Density shifts in fact occurred in different commercial formulations of silica sols and in gradients modified by small amounts of polymers, osmotica or charged small molecules. Sagitta were specifically shifted out of the zone of fish eggs by the addition, of 1% w/v dextran sulfate or in a silica sol composed of very small particles of silica (Nalcoag 1115). Fish larvae were shifted to higher densities by the addition of 1% w/v trimetaphosphate or 1% w/v dextran sulfate. Additions of 1% w/v polyvinyl alcohol, and of 10 mM glycine, and potassium phosphate had intermediate effects. The same banding densities of plankton in silica gradients were reached in less than 10 h at one gravity, independent of the immediate pretreatment of the sample.     

Fire-LCA study of TV sets with V0 and HB enclosure material

A novel Life-Cycle Assessment model (Fire-LCA) has been defined for the determination of the environmental impact of measures taken to attain a high level of fire safety. This study, which represents the first application of this LCA model, concentrates on a comparison between a TV with an enclosure manufactured with a flame retardant (FR) plastic (V0-rated high impact polystyrene, HIPS, typical for the US market) and one manufactured with a non-flame retardant (HB-rated HIPS, typical for the European market). A fire model has been defined based on international statistics, which indicate that use of V0 rated enclosure material essentially removes the risk of TV fires while approximately 165 TV fires occur per million TVs in Europe each year where the enclosure material is breached. The application of the model indicates that emissions of some key species (such as dibenzodioxins and PAH) are actually lower for the TV with the FR enclosure than for the TV with the NFR enclosure. This has direct reprercussions for the assessment of the environmental impact of the FR TV relative to that of the NFR TV. Finally, when considering the risk associated with the use of flame retardants, it is also important to consider the risk associated with fires. Based on the in-depth analysis of available fire statistics, conducted as a part of this study, it has been estimated that as many as 160 people may die each year in Europe as a direct result of TV fires and as many as 2000 may be injured in the same period.