The case for international emission trade in the absence of cooperative climate policy

We evaluate the efficacy of international trade in carbon emission permits when countries are guided strictly by their national self-interest. To do so, we construct a calibrated general equilibrium model that jointly describes the world economy and the strategic incentives that guide the design of national abatement policies. Countries’ decisions about their participation in a trading system and about their initial permit endowment are made non-cooperatively; so a priori it is not clear that permit trade will induce participation in international abatement agreements or that participation will result in significant environmental gains. Despite this, we find that emission trade agreements can be effective; that smaller groupings pairing developing and developed-world partners often perform better than agreements with larger rosters; and that general equilibrium responses play an important role in shaping these outcomes.     

Non-cooperative and cooperative climate policies with anticipated breakthrough technology

Global warming can be curbed by pricing carbon emissions and thus substituting fossil fuel with renewable energy consumption. Breakthrough technologies (e.g., fusion energy) can reduce the cost of such policies. However, the chance of such a technology coming to market depends on investment. We model breakthroughs as an irreversible tipping point in a multi-country world, with different degrees of international cooperation. We show that international spill-over effects of R&D in carbon-free technologies lead to double free-riding, strategic over-pollution and underinvestment in green R&D, thus making climate change mitigation more difficult. We also show how the demand structure determines whether carbon pricing and R&D policies are substitutes or complements.     

Optimal resource management control for CO2 emission and reduction of the greenhouse effect

In recent years, the world has witnessed an ever-growing concern towards global warming caused by greenhouse gases, such as carbon dioxide (CO₂). In order to reduce the emissions of CO₂ without limiting economic growth, substantial investments should target the development of clean technology and the expansion of forested areas. Considering the limited availability of resources, investments must be used in the most effective way. The present work proposes a method to efficiently manage these resources by applying the optimal control theory to a new mathematical model that describes the dynamics of the atmospheric CO₂. The contributions of this work are twofold: (1) present a model that describes the dynamic relation of CO₂ emission with investment in reforestation and clean technology and (2) present a method to efficiently manage the available resources by casting an optimal control problem. The mathematical model uses ordinary differential equations to relate the production of CO₂ with forest area and Gross Domestic Product (GDP). The model parameters are adjusted to fit the actual published data. Given an appropriate performance index, the optimal solution is found by numerically solving the Two-Point Boundary Value Problem (TPBVP) that arises from the application of Pontriagyn's Maximum Principle. The sensitivity of the obtained numerical solution is evaluated with respect to the uncertainties in the model parameters. The main objective of this work is to provide a quantitative tool for the efficient allocation of resources to reduce the greenhouse effect caused CO₂ emissions.     

Can a water market avert the “double-whammy” of trade reform and lead to a “win–win” outcome?

This paper focuses on the linkages between water and trade policies, using Morocco as a case. This country is typical of many in that policy protects its import competing agricultural and industrial sectors while water in irrigated agriculture is priced below its marginal value product. Changing water policy without correcting for these other distortions leads to a more inefficient allocation of water. On the other hand, reforming trade policy alone can make farmers growing crops protected pre-reform worse off. Using an intertemporal, applied general equilibrium model, we find that trade reform actually creates an opportunity to pursue water policy reform. Creating a water user-rights market post trade reform not only compensates for the decline in farmers’ profits caused by the trade reform, but also raises the efficiency of water allocation and hence benefits the economy as a whole.     

Robust technology policy against emission leakage: The case of upstream subsidies

Asymmetric regulation of a global pollutant between countries can alter the competitiveness of industries and lead to emissions leakage, which hampers countries’ welfare. In order to limit leakage, governments consider supporting domestic trade-exposed firms by subsidizing their investments in abatement technology. The suppliers of such technologies tend to be less than perfectly competitive, particularly when both emissions regulations and advanced technologies are new. In this context of twin market failures, we consider the relative effects and desirability of subsidies for abatement technology. We find a more robust recommendation for upstream subsidies than for downstream subsidies. Downstream subsidies tend to increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary, upstream subsidies reduce abatement technology prices, and hence also emissions leakage.     

The relevance of James Lovelock’s research and philosophy to environmental science and academia

James E. Lovelock, famed for his Gaia hypothesis, which views the Earth as a living integrated and interconnected self-regulating system whose equilibrium comes about from complex energy-based interactions and feedback loops, ultimately sustaining life, passed away at the end of July, 2022 at the age of 103. Not only are the adaptive mechanisms of Gaia central to the conversation of environmental homeostasis, they lie at the heart of climate change and global warming. Lovelock is also remembered as the co-inventor of the electron capture detector that eventually allowed for the sensitive detection of chlorofluorocarbons and pesticides. Finally, Lovelock’s free-spirited nature and research independence allow academia to rethink current research’s modus operandi.     

Effects of boreal forest management practices on the climate impact of CO2 emissions from bioenergy

In Life Cycle Assessment (LCA), carbon dioxide (CO₂) emissions from biomass combustion are traditionally assumed climate neutral if the bioenergy system is CO₂ flux neutral, i.e. the quantity of CO₂ released approximately equals the amount of CO₂ sequestered in biomass. This convention is a plausible assumption for fast growing biomass species, but is inappropriate for slower growing biomass, like forests. In this case, the climate impact from biomass combustion can be potentially underestimated if CO₂ emissions are ignored, or overestimated, if biogenic CO₂ is considered equal to anthropogenic CO₂. The estimation of the effective climate impact should take into account how the CO₂ fluxes are distributed over time: the emission of CO₂ from bioenergy approximately occurs at a single point in time, while the absorption by the new trees is spread over several decades. Our research target is to include this dynamic time dimension in unit-based impact analysis, using a boreal forest stand as case study. The boreal forest growth is modelled with an appropriate function, and is investigated under different forestry regimes (affecting the growth rate and the year of harvest). Specific atmospheric decay functions for biomass-derived CO₂ are then elaborated for selected combinations of forest management options. The contribution to global warming is finally quantified using the GWP_bio index as climate metric. Results estimates the effects of these practices on the characterization factor used for the global warming potential of CO₂ from bioenergy, and point out the key role played by the selected time horizon.     

国际金融危机背景下中国服务贸易的开放

近年来我国服务贸易保持着稳健发展,逐步跻身全球服务贸易大国行列.国际金融危机对我国服务贸易的发展既是严峻挑战,又带来了新的发展机遇.本文就在国际金融危机背景下,中国服务贸易面对机遇和挑战将如何开放提出了几点对策.     

The Economics of Pollution Permit Banking in the Context of Title IV of the 1990 Clean Air Act Amendments

This paper presents a model of the collective emission permit banking behavior of electricity-generating units affected by Title IV of the Clean Air Act Amendments of 1990. A rigorous treatment of the constraint that pollution permits cannot be borrowed from future allocations is introduced. This approach enables an analysis of the impact of future changes in electricity demand, regulations, and technologies on the present permit price and emissions level. The effect of uncertainty on the banking behavior is also explored.     

The impact of coastal flooding on conservation areas: A study of the Clyde Estuary, Scotland

This study examines the impact of flooding on land of high conservation value located along part of the southern shoreline of the River Clyde Estuary in western Scotland. This paper hypothesizes that, over the next 50 years, the frequency and extent of coastal flooding will increase due to the gradual effect of global warming and the consequent rise in sea-level and increase in storminess. It is argued that because of the great cost of constructing new flood defence systems it will not be possible to protect all land areas to an equal extent from flooding. A means of ranking different land use will be necessary so that society can make a rational judgement concerning which sections of coastline will be worth protecting. This study provides a methodology that combines an objective ranking of conservation areas using non-economic indicators with a GIS model of flood potential, and permits accurate forecasts of flood losses to conservation areas of different ecological value. The conservation case study used in this paper proposes the use of an ecological weighting value based on five ecological variables each of 10 categories. Tables and maps identify the sites that have been highlighted as consisting of the most ‘valuable’ conservation sites. The methodology makes extensive use of geographical information systems (GIS) to model the predicted areas of flooding and to calculate conservation weighting values of the land areas.     

The impact of coastal flooding on conservation areas: A study of the Clyde Estuary, Scotland

This study examines the impact of flooding on land of high conservation value located along part of the southern shoreline of the River Clyde Estuary in western Scotland. This paper hypothesizes that, over the next 50 years, the frequency and extent of coastal flooding will increase due to the gradual effect of global warming and the consequent rise in sea-level and increase in storminess. It is argued that because of the great cost of constructing new flood defence systems it will not be possible to protect all land areas to an equal extent from flooding. A means of ranking different land use will be necessary so that society can make a rational judgement concerning which sections of coastline will be worth protecting. This study provides a methodology that combines an objective ranking of conservation areas using non-economic indicators with a GIS model of flood potential, and permits accurate forecasts of flood losses to conservation areas of different ecological value. The conservation case study used in this paper proposes the use of an ecological weighting value based on five ecological variables each of 10 categories. Tables and maps identify the sites that have been highlighted as consisting of the most ‘valuable’ conservation sites. The methodology makes extensive use of geographical information systems (GIS) to model the predicted areas of flooding and to calculate conservation weighting values of the land areas.     

An optimized policy for the reduction of CO2 emission in the Brazilian Legal Amazon

The Brazilian government has already acknowledged the importance of investing in the development and application of technologies to reduce or prevent CO₂ emissions resulting from human activities in the Legal Brazilian Amazon (BA). The BA corresponds to a total area of 5 × 10⁶ km² from which 4 × 10⁶ km² was originally covered by the rain forest. One way to interfere with the net balance of greenhouse gases (GHG) emissions is to increase the forest area to sequester CO₂ from the atmosphere. The single most important cause of depletion of the rain forest is cattle ranching. In this work, we present an effective policy to reduce the net balance of CO₂ emissions using optimal control theory to obtain a compromising partition of investments in reforestation and promotion of clear technology to achieve a CO₂ emission target for 2020. The simulation indicates that a CO₂ emission target for 2020 of 376 million tonnes requires an estimated forest area by 2020 of 3,708,000 km², demanding a reforestation of 454,037 km². Even though the regional economic growth can foster the necessary political environment for the commitment with optimal emission targets, the reduction of 38.9% of carbon emissions until 2020 proposed by Brazilian government seems too ambitious.     

Analyzing the effectiveness of international environmental policies: The case of the Kyoto Protocol

We study the effectiveness of emission targets under the Kyoto Protocol with respect to reducing CO₂ emissions. Using country-level and US state-level panel data and employing the synthetic control method, we find very little evidence for an emission reduction effect for the major emitters among the Annex B countries with binding emission targets. More generally, we also show that evaluating the effectiveness of international environmental policies at the country level comes with a number of empirical challenges that may invalidate findings based on more traditional panel data approaches.     

Species composition of the international shark fin trade assessed through a retail‐market survey in Hong Kong

The shark fin trade is a major driver of shark exploitation in fisheries all over the world, most of which are not managed on a species‐specific basis. Species‐specific trade information highlights taxa of particular concern and can be used to assess the efficacy of management measures and anticipate emerging threats. The species composition of the Hong Kong Special Administrative Region of China, one of the world's largest fin trading hubs, was partially assessed in 1999–2001. We randomly selected and genetically identified fin trimmings (n = 4800), produced during fin processing, from the retail market of Hong Kong in 2014–2015 to assess contemporary species composition of the fin trade. We used nonparametric species estimators to determine that at least 76 species of sharks, batoids, and chimaeras supplied the fin trade and a Bayesian model to determine their relative proportion in the market. The diversity of traded species suggests species substitution could mask depletion of vulnerable species; one‐third of identified species are threatened with extinction. The Bayesian model suggested that 8 species each comprised >1% of the fin trimmings (34.1–64.2% for blue [Prionace glauca], 0.2–1.2% for bull [Carcharhinus leucas] and shortfin mako [Isurus oxyrinchus]); thus, trade was skewed to a few globally distributed species. Several other coastal sharks, batoids, and chimaeras are in the trade but poorly managed. Fewer than 10 of the species we modeled have sustainably managed fisheries anywhere in their range, and the most common species in trade, the blue shark, was not among them. Our study and approach serve as a baseline to track changes in composition of species in the fin trade over time to better understand patterns of exploitation and assess the effects of emerging management actions for these animals.     

The burden of proof in trade disputes and the environment

The WTO leaves discretion over environmental policies to its members, but requests that a fundamental non-discrimination principle is respected: National Treatment (NT). The provision seeks to prevent protectionist use of domestic policy instruments, requesting that when an imported product is sufficiently similar to a domestic product, they are treated identically. WTO adjudicators will often face severe informational problems in environmental disputes. Important for the practical implementation of NT is therefore the allocation of the burden of proof (BoP). This paper highlights basic implications of the BoP for the occurrence of judicial errors, for the environment and for welfare, using a setting where NT serves its intended role of supporting negotiated tariff liberalization. The paper suggests that NT may indeed constrain environmental policies, but that this may be desirable from an efficiency point of view. Also, BoP rules that benefit the environment may not benefit global welfare, and conversely.     

The rise of thermophilic sea urchins and the expansion of barren grounds in the Mediterranean Sea

Recent ecological studies have shown a strong relation between temperature, echinoids and their grazing effects on macro-algal communities. In this study, we speculate that climate warming may result in an increasingly favourable environment for the reproduction and development of the sea urchin Arbacia lixula. The relationship between increased A. lixula density and the extent of barren grounds in the Mediterranean Sea is also discussed.     

Modelling the impact of thermal adaptation of soil microorganisms and crop system on the dynamics of organic matter in a tropical soil under a climate change scenario

No consensus currently exists about how climate change should affect the status of soil organic matter (SOM) in the tropics. In this study, we analyse the impact of climate change on the underlying mechanisms controlling SOM dynamics in a ferralsol under two contrasting tropical crops: maize (C4 plant) and banana (C3 plant). We model the effect of microbial thermal adaptation on carbon (C) mineralisation at the crop system scale and introduce it in the model STICS, which was previously calibrated for the soil-crop systems tested in this study. Microbial thermal adaptation modelling is based on a reported theory for thermal acclimation of plant and soil respiration. The climate is simulated from 1950 to 2099 for the tropical humid conditions of Guadeloupe (French Antilles), using the ARPEGE model and the IPCC emission scenario A1B. The model predicts increases of 3.4 °C for air temperature and 1100 mm yr⁻¹ for rainfall as a response to an increase of 375 ppm for atmospheric carbon dioxide concentration in the 2090-2099 decade compared with the 1950-1959 decade. The results of the STICS model indicate that the crop affects the response of SOM to climate change by controlling the change in several variables involved in C dynamics: C input, soil temperature and soil moisture. SOM content varies little until 2020, and then it decreases faster for maize than for banana. The decrease is weakened under the hypothesis of thermal adaptation, and this effect is greater for maize (−180 kg C ha⁻¹ yr⁻¹ without adaptation and −140 kg C ha⁻¹ yr⁻¹ with adaptation) than for banana (−60 kg C ha⁻¹ yr⁻¹ and −40 kg C ha⁻¹ yr⁻¹, respectively). The greater SOM loss in maize is mainly due to the negative effect of warming on maize growth decreasing C input from residues. Climate change has a small effect on banana growth, and SOM loss is linked to its effect on C mineralisation. For both crops, annual C mineralisation increases until 2040, and then it decreases continuously. Thermal adaptation reduces the initial increase in mineralisation, but its effect is lower on the final decrease, which is mainly controlled by substrate limitation. No stabilisation in SOM status is attained at the end of the analysed period because C mineralisation is always greater than C input. Model predictions indicate that microbial thermal adaptation modifies, but does not fundamentally change the temporal pattern of SOM dynamics. The vegetation type (C3 or C4) plays a major role in SOM dynamics in this tropical soil because of the different impact of climate change on crop growth and then on C inputs.     

Cost-benefit analysis of implementing policy measures for reducing PM and O3 concentrations: the case of Israel

This paper aims to identify the most suitable and economically feasible policy measures to reduce concentrations of particulate matter (PM) and ozone (O₃) in Israel. It describes a comprehensive methodology that takes into account the effects of PM and O₃ and describes the overall costs and benefits expected from their reduction. Cost-benefit analysis of a series of proposed policy measures allows us to identify and recommend those that are most feasible and effective. These policy measures have a significant impact on reducing air pollution on one hand, while constituting the highest net benefit to the economy on the other.     

Assessing carbon footprint in the life cycle of accommodation services: the case of an international tourist hotel

The accommodation sector is the most demanding energy consumer among all building stock categories. This study quantifies an international tourist hotel in Taiwan to holistically estimate the greenhouse gas emissions of hotel accommodation services through a complete life cycle inventory. The study also investigates the difference between the carbon emissions of the baseline and reduction years to understand the effects of carbon emission reduction on the hotel industry. Results show that energy consumption is the main source of carbon footprint. However, the carbon emissions of other activities, such as the production and transportation of hotel amenities and laundry services, are 15.90% for the baseline year and 16.03% for the reduction year. These values are larger than the 5% cutoff rule according to PAS 2050. Thus, these factors should also be considered in assessing the carbon emissions of accommodation services. Hotel occupancy rate significantly affects carbon emissions during a one-night stay in a standard room as the functional unit. The selection of the functional unit should be considered in the hotel strategy. Although this case study involves an international tourist hotel in Taiwan, the findings and recommendations for improvements can be applied elsewhere.     

Impact of the quality of climate models for modelling species occurrences in countries with poor climatic documentation: a case study from Bolivia

The quality of climate models has largely been overlooked as a possible source of uncertainty that may affect the outcomes of species distribution models, especially in the tropics, where comparatively few climatic stations are available. We compared the geographical discrepancies and potential conservation implications of using two different climate models (Saga and Worldclim) in combination with the species modelling approach Maxent in Bolivia. We estimated ranges of selected bird and fern species biogeographically restricted to either humid montane forest of the northern Bolivian Andes or seasonal dry tropical forests (in the Andes and southern lowlands). Saga and Worldclim predicted roughly similar climate patterns of temperature that were significantly correlated. Precipitation layers of both climate models were also roughly similar, but showed important differences. Species ranges estimated with Worldclim and Saga likewise produced different results. Ranges of species endemic to humid montane forests estimated with Saga had higher AUC (Area under the curve) values than those estimated with Worldclim, which for example predicted the occurrence of humid montane forest bird species near Lake Titicaca, an area that is clearly unsuitable for these species. Likewise, Worldclim overpredicted the occurrence of fern and bird species in the lowlands of the Chapare region and well south of the Andean Elbow, where more seasonal biomes occur. By contrast, Saga predictions were coherent with the known distribution of humid montane forests in the northern Bolivian Andes. Estimated ranges of species endemic to seasonal dry tropical forests predicted with Saga and Worldclim were not statistically different in most cases. However, detailed comparisons revealed that Saga was able to distinguish fragments of seasonal dry tropical forests in rain-shadow valleys of the northern Bolivian Andes, whereas Worldclim was not. These differences highlight the neglected influence of climate layers on modelling results and the importance of using the most accurate climate data available when modelling species distributions.