Transaction costs and the clean development mechanism

The emissions trading provisions of the Kyoto Protocol and its clean development mechanism (CDM) are designed to permit greenhouse gas (GHG) emission reductions at the lowest cost globally. However, to ensure climate integrity, these reductions must pass through vigilant approval, monitoring and evaluation procedures that create additional transaction costs unrelated to the physical process of eliminating GHGs. Moreover, the CDM's additionality criterion creates constraints that magnify the influence of these transaction costs on project viability. If these costs are extreme, they could undermine the success of the CDM, and possibly of the Kyoto Protocol itself. This article describes the trading provisions of the treaty, creates a working definition of transaction costs, and discusses their effects. It then analyzes the process of creating a CDM project to identify the sources of transaction costs, illustrated by an example of a fuel substitution project in Ghana. The conditions for project profitability are analyzed and compared with recent GHG emission credit prices in Europe. The specific Ghanaian results are not generalizable to all CDM projects, but the model does suggest a template that can be used to analyze the effects of project and transaction costs in other contexts.     

OPTIMAL PROFITS UNDER ENVIRONMENTAL CONSTRAINTS: IMPLICATIONS OF NUTRIENT AND SEDIMENT STANDARDS1

To reduce nonpoint source pollution from nutrient, chemical, and sediment runoff, a number of environmental policy standards have been proposed. Such standards could be used to reduce nonpoint source pollution from nutrient, chemical, and sediment runoff to impaired water bodies. State governments can use voluntary approaches to meet nonpoint source pollution reduction goals. However, the practices that lower net returns will not be voluntarily adopted by farmers. Crop rotations and tillage practices may help producers to comply with the environmental standards while minimizing losses in farm profits. This study compares runoff from crop rotation practices and conventional continuous row cropping systems in Mississippi. The results are compared for different tillage systems in order to examine robustness of results. Nutrient runoff and sediment runoff are simulated using the Erosion Productivity Impact Calculator (EPIC). Sensitivity analysis of the sediment and nitrate reductions at 15 percent, 25 percent, and 35 percent are conducted. Under these scenarios, net returns are optimized under environmental constraints, and the marginal cost of sediment reduction ranges from US$1.61 to US$9.63 per ton depending on soil conditions, while the corresponding nitrate and phosphorus reductions costs range from US$1.21 to US$7.08 per kg and from US$0.09 to US$31.91, respectively. The empirical results from this study indicate that a nitrate reduction policy is relatively less costly than a sediment reduction policy. The results also demonstrate the importance of geophysical conditions and policy costs, which vary across regions.     

Forestry-based carbon sequestration projects in Africa: Potential benefits and challenges

Carbon sequestration through forestry and agroforestry can help mitigate global warming. For Africa, carbon sequestration also represents an opportunity to fund sustainable development through financial inflows. However, with a low share of global carbon trade, there are strong concerns that African countries are losing out on this valuable opportunity. Through a comprehensive review of 23 carbon sequestration projects across 14 countries, this paper discusses ways to overcome critical challenges to scale up carbon investments in Africa. These projects are expected to sequester 26.85 million tCO₂ beyond the baseline situation. Within the continent, East Africa is the preferred destination for carbon investors. Most projects are non‐Kyoto compliant and represent voluntary emission reductions. While project benefits such as increased local incomes and improved natural resources are promising, there are concerns that conversion of grasslands into tree plantations can harm local ecosystems. Insecure land tenure constrains new investments and increases the risk that local communities will lose access to forests. Another challenge is that projects with smallholders have high transaction costs. These costs can be overcome by building strong community institutions and simplifying project guidelines. To attract more projects, African governments will need to build their capacity to identify relevant opportunities.     

The cost effectiveness of radon mitigation in existing German dwellings – A decision theoretic analysis

Radon is a naturally occurring inert radioactive gas found in soils and rocks that can accumulate in dwellings, and is associated with an increased risk of lung cancer. This study aims to analyze the cost effectiveness of different intervention strategies to reduce radon concentrations in existing German dwellings. The cost effectiveness analysis (CEA) was conducted as a scenario analysis, where each scenario represents a specific regulatory regime. A decision theoretic model was developed, which reflects accepted recommendations for radon screening and mitigation and uses most up-to-date data on radon distribution and relative risks. The model was programmed to account for compliance with respect to the single steps of radon intervention, as well as data on the sensitivity/specificity of radon tests. A societal perspective was adopted to calculate costs and effects. All scenarios were calculated for different action levels. Cost effectiveness was measured in costs per averted case of lung cancer, costs per life year gained and costs per quality adjusted life year (QALY) gained. Univariate and multivariate deterministic and probabilistic sensitivity analyses (SA) were performed. Probabilistic sensitivity analyses were based on Monte Carlo simulations with 5000 model runs. The results show that legal regulations with mandatory screening and mitigation for indoor radon levels >100 Bq/m³ are most cost effective. Incremental cost effectiveness compared to the no mitigation base case is 25,181 € (95% CI: 7371 €–90,593 €) per QALY gained. Other intervention strategies focussing primarily on the personal responsibility for screening and/or mitigative actions show considerably worse cost effectiveness ratios. However, targeting radon intervention to radon-prone areas is significantly more cost effective. Most of the uncertainty that surrounds the results can be ascribed to the relative risk of radon exposure. It can be concluded that in the light of international experience a legal regulation requiring radon screening and, if necessary, mitigation is justifiable under the terms of CEA.     

Early action to reduce greenhouse gas emissions before the commitment period of the Kyoto protocol: advantages and disadvantages

Current “business as usual” projections suggest greenhouse gas emissions from industrialized nations will grow substantially over the next decade. However, if it comes into force, the Kyoto Protocol will require industrialized nations to reduce emissions to an average of 5% below 1990 levels in the 2008–2012 period. Taking early action to close this gap has a number of advantages. It reduces the risks of passing thresholds that trigger climate change “surprises.” Early action also increases future generations' ability to choose greater levels of climate protection, and it leads to faster reductions of other pollutants. From an economic sense, early action is important because it allows shifts to less carbon-intensive technologies during the course of normal capital stock turnover. Moreover, many options for emission reduction have negative costs, and thus are economically worthwhile, because of paybacks in energy costs, healthcare costs, and other benefits. Finally, early emission reductions enhance the probability of successful ratification and lower the risk of noncompliance with the protocol. We discuss policy approaches for the period prior to 2008. Disadvantages of the current proposals for Credit for Early Action are the possibility of adverse selection due to problematic baseline calculation methods as well as the distributionary impacts of allocating a part of the emissions budget already before 2008. One simple policy without drawbacks is the so-called baseline protection, which removes the disincentive to early action due to the expectation that businesses may, in the future, receive emission rights in proportion to past emissions. It is particularly important to adopt policies that shift investment in long-lived capital stock towards less carbon-intensive technologies and to encourage innovation and technology development that will reduce future compliance costs.     

Financial viability of reforesting reclaimed surface mined lands, the burden of site conversion costs, and carbon payments as reforestation incentives

US Federal law mandates that mined land be returned by mine operators to a condition capable of supporting its pre-mining use or a higher use. Previously forested lands have commonly been reclaimed to hayland/pasture or wildlife habitat, and most of these lands have been abandoned from management and rendered non-productive. This situation has left landowners in the position of converting these reclaimed mined lands to forests at a later date, if they choose to make them economically productive. Such land-use conversion, however, comes with a substantial up-front cost to the landowner, which makes the financial viability of such a conversion questionable. We examine the financial viability of reforestation of these previously reclaimed mine lands by calculating land expectation value (LEV) under a range of conditions that include forest type, site quality, and reforestation intensity. We find that conversion to white pine is viable on higher quality sites under low to moderate interest rates with low or high timber prices, but conversion to mixed hardwoods is only profitable under the high price scenario with low interest rates, and only on higher quality sites. We also consider the implications of a shift in reforestation burden from the landowner to the mine operator, and results suggest that including costs of reforestation as part of the mining operation creates a financially viable forest enterprise for landowners under all scenarios for both white pine and mixed hardwoods. Two forms of carbon payments that could encourage reforestation of previously reclaimed mined lands also are examined: an annual payment based upon the total accumulated carbon found on-site in a given year, and an annual payment based on only the increment of carbon storage each year. Our carbon payment results indicate that annual values of up to $5.17 per ton of carbon stored in hardwoods and $9.39 per ton of carbon stored in pines would be required to make reforestation profitable under the poorest conditions (high interest rates, low prices, and poor quality site) when the payment is based on accumulated on-site carbon, although lower values are required under more favorable scenarios. Payments that are based upon the annual increment of carbon must fall in the range of $8.66–$71.88 per ton of carbon stored in hardwoods and $0–$83.29 per ton of carbon stored in pines to make reforestation financially viable.     

The Cost of Developing Site-Specific Environmental Regulations: Evidence from EPA's Project XL

The flagship of the Environmental Protection Agency's regulatory reinvention initiative, Project XL has been touted as a regulatory blueprint for a site-specific, performance-based pollution-control system, but widespread complaints about the costs of the program beg the question of whether the costs of tailoring regulations to individual facilities are manageable. To address this question, this paper presents original survey data on a sample of 11 XL projects. We find that the fixed costs of putting in place XL agreements are substantial, averaging over $450,000 per firm. While stakeholder negotiations are widely cited as the principal source for these costs, we find that they actually arise mainly from interaction between participating facilities and the EPA. Moreover, EPA management problems are perceived by our survey respondents as having inflated project development costs. Finally, we find that the key factors that explains differences in costs across XL projects are the scope and complexity of the project proposal. These findings suggest that Project XL favors large firms that can afford to pay significant project development costs, that EPA management problems must be resolved to reduce costs, and that there may be a significant economic bias against complex and innovative proposals—precisely the type of proposals that Project XL was designed to foster in order to improve the efficiency of the regulatory system.     

Eco-Compensation in Multi-District River Networks in North Jiangsu, China

Eco-compensation is a multi-disciplinary topic. There is no consensus on the issue of river eco-compensation across districts. Although policies regarding river eco-compensation have been issued in China since 2008, due to the high cost, eco-compensation has not been well implemented in the Taihu pilot region. Therefore, a simplified method based solely on water quality (both water quality and water volume included in the Taihu method) was proposed for North Jiangsu province (NJP). However, the formula was flawed and it led to payments being too low. Three problems need to be solved: (1) how to specify the eco-compensation areas; (2) how to test a reasonable eco-compensation model and (3) how to determine the compensation criterion. Solving these issues is already a priority. In this paper, three potential solutions surrounding eco-compensation are discussed: (1) three principles for selecting the representative eco-compensation areas are suggested; (2) the compensation calculation method based on contaminant flux above the ultra standard is revised and (3) a compensation criterion model based on the treatment costs of sewage is proposed. In the NJP case in 2009, the average eco-compensation criterion for chemical oxygen demand (COD) is 2,000 Chinese Yuan (CNY) per ton and ammonia nitrogen (NH₄–N) and total phosphorus (TP) are 8,000 CNY and 80,000 CNY per ton, respectively. Five districts needed to be compensated. The payments in the revised scheme were 4.15–586 million CNY, which were 16–48 times greater than that in the draft method. The new method can provide an important template for managers when drafting river eco-compensation schemes.     

A RETROSPECTIVE BENEFIT-COST ANALYSIS OF WATER RESOURCE PROJECTS IN THE CUMBERLAND RIVER BASIN1

ABSTRACT: A retrospective benefit-cost analysis of major water resources projects in the Cumberland River basin was conducted. The U.S. Army Corps of Engineers' projects selected were Dale Hollow, Wolf Creek, Center Hill, and J. Percy Priest Reservoirs. The ex-post performance of the evaluated reservoirs were compared to the ex-ante estimates. Benefits and costs for each project were deflated to their base year and respective average annual values for each of these components were calculated. An ex-post benefit-cost ratio was determined for each project, as well as the combined system. The benefit-cost ratio for each project surpassed unity. The actual ratio as compared to the ex-ante estimate for each project is as follows: Dale Hollow, 1.24 to 1.46; Wolf Creek, 1.40 to 1.53; Center Hill, 1.17 to 2.02; and J. Percy Priest, 1.45 to 1.6. The internal rate of return was also determined for each project. The results obtained for each project are tabulated and discussed with consideration given to factors effecting the economic evaluation of the projects.     

Modeling the impact of revegetation on regional water quality: A collective approach to manage the cumulative impacts of mining in the Bowen Basin,Australia

In this paper we quantify the additional water quality benefits that can be achieved through coordinated cumulative impact management. To do this we simulate coordinated and un-coordinated revegetation investments and compare their impact on achieving regional water quality goals. Our results show that coordination between multiple mining companies achieves additional benefits since prioritization is enabled across a broader range of investment opportunities. Additionally, when coordinated investment is permitted beyond the boundaries of coal mining leases, results show that additional benefits are greatly enhanced since these regions provide more rewarding investment opportunities. Results illustrate (a) how regional coordination may influence reputational benefits of investments, and (b) that coordination is beneficial when investment opportunities are unevenly distributed across the landscape. When additional benefits are achievable, we suggest that mining companies should develop collective investment projects with an understanding of how coordination influences project costs. Similarly, investment projects should be developed with an understanding of investment tradeoffs and how these may adversely impact on regional stakeholders and hence industry reputation. The mining industry has significant potential to contribute to regional wellbeing; however, land management policies must be flexible and promote incentives to enable companies to invest beyond compliance.     

CO2 capture for refineries,a practical approach

This paper evaluates the opportunities and associated costs for post-combustion capture at a world-scale complex refinery. It is concluded that it is technically feasible to apply post-combustion capture at such a refinery. The costs for capture and sequestration from a gasifier are calculated to be lowest at about 30 Euro per ton; this process currently already produces a concentrated CO₂ stream. Next, the CO₂ source most suited for capture appears to be a combined stack, but there are a number of other sources that may be targeted at comparable costs. In total these sources may form about 40% of the overall refinery emissions. Our evaluations show the costs of capture from such sources based on available amine technology will be in the range of 90–120 Euro per ton, which is about 3–4 times higher than the current carbon trading values. The capture of CO₂ from a large amount of smaller CO₂ sources will bring along even much higher costs. A high-level study of the CO₂ emissions profile of a number of Shell refineries shows that, typically, up to 50% of the emitted CO₂ may be captured at similar costs. About 10–20% of concentrated CO₂ associated with hydrogen manufacturing may be captured at lower costs. The remainder of emitted dilute CO₂ will bring along significantly higher costs. Based on this study, it is concluded for the justification of the implementation of post-combustion capture at refineries, either a significant increase in carbon trading values, mandatory regulations, or a major technological break-through is required.     

SOCIAL OVERHEAD CAPITAL COSTS OF IRRIGATION DEVELOPMENT IN WASHINGTON STATE1

ABSTRACT: Increased irrigation as a means of achieving economic development can impose significant social costs on the state or region of growth. The growth in population induced by additional irrigation will require new roads, water and sewage facilities, schools, fire and police protection, etc. Also the increased energy demands due to irrigation and growth in economic activity must be met. Capital investments required to service these needs of new development can become very large. This study attempts to measure such social overhead costs or irrigation development for some specific irrigation project areas of Eastern Washington. It is shown that investment costs in overhead items can reach $2,000 per acre irrigated or $70,000 per job created. Alternatively, the annual costs can equal $180 per acre or $6,700 per worker. These costs must be paid locally through increased taxes, utility rates, or costs for services.     

Wetland ecological and compliance assessments in the San Francisco Bay Region, California, USA

The San Francisco Bay Region of the California Regional Water Quality Control Board (SFB CRWQCB) and the San Francisco District of the US Army Corps of Engineers (US ACOE) are looking for an expeditious means to determine whether regulated wetland projects produce ecologically valuable systems and remain in compliance with their permits (i.e. fulfill their legal requirements) until project completion. A study was therefore undertaken in which 20 compensatory wetland mitigation projects in the San Francisco Bay Region were reviewed and assessed for both permit compliance and habitat function, and this was done using a rapid assessment method adapted for this purpose. Thus, in addition to determining compliance and function, a further goal of this study was to test the efficacy of the assessment method, which, if useful, could be applied not only to mitigation projects, but also to restoration projects and natural wetland systems. Survey results suggest that most projects permitted 5 or more years ago are in compliance with their permit conditions and are realizing their intended habitat functions. The larger restoration sites or those situated between existing wetland sites tend to be more successful and offer more benefits to wildlife than the smaller isolated ones. These results are consistent with regulatory experience suggesting that economies of scale could be realized both with (1) large scale regional wetland restoration sites, through which efforts are combined to control invasive species and share costs, and (2) coordinated efforts by regulatory agencies to track project information and to monitor the increasing number and size of mitigation and restoration sites. In regard to the assessment methods, we find that their value lies in providing a consistent protocol for evaluations, but that the ultimate assessment will rely heavily on professional judgment, regulatory experience, and the garnering of pre-assessment information.     

From exogenous to endogenous development in Scottish forestry: the feasibility of small-scale wood energy enterprise

This paper presents a change in the Scottish forestry policy from the exogenous to the endogenous development approach, and feasibility of heat entrepreneurship based on locally produced woodfuels in the Highlands of Scotland. The cost structure and heat pricing in the case of an 800 kW solid fuel boiler is presented, and the profitability of local heat entrepreneurship is analysed with scenarios of different investment costs and fuel prices. The results indicate that a district heating (DH) system, using locally produced woodchips, could produce heat at a lower price than single-house heating systems using light fuel oil. The profitability of replacing existing heating units by investing in a new district heating (DH) scheme is very dependent on the available investment support, price level of woodchips and substituted light fuel oil, and the amount of sold energy. In the case of an 800 kW DH scheme, and woodchip prices of 14 and 22 €/MWh, investments should remain under break-even points of 280 and 420 €/kW of heating power (230,000–335,000€).     

Transitions of municipal solid waste management. Part II: Hybrid life cycle assessment of Swiss glass-packaging disposal

In policy support of municipal solid waste (MSW) management, life cycle assessment (LCA) can serve to compare the environmental or economic impacts of two or more options for waste processing. The scope of waste management LCAs generally focuses less attention on future developments, e.g., where will recycling take place, and more on the environmental performance of prototypes, e.g., the incineration of all waste compared to recycling. To provide more robust support for Swiss waste glass-packaging disposal, scenarios of Swiss waste glass-packaging are assessed from a life cycle perspective. The scenarios consist in schemes for the disposal of the total amount of Swiss waste glass-packaging, i.e., different combinations of recycling and downcycling in Switzerland or abroad developed in Part I, Meylan et al. (2013). In this article (Part II), the disposal schemes are assessed with respect to eco-efficiency, an indicator that combines total environmental impacts and gross value added in Switzerland. Results show that no policy alternative guarantees environmental impact reductions and gross value added gains under all developments of exogenous constraints. Downcycling to foam glass in Switzerland is not only an environmentally sound disposal option, but it also buffers gross value added losses in case domestic recycling (and thus glass-packaging production in Switzerland) ceases in the future. The substitution of products based on raw materials other than Swiss cullet is the main responsible for change in environmental and economic impacts. Hence, an eco-efficiency maximizing policy should consider the products of disposal schemes. The combination of scenario analysis and eco-efficiency assessment as presented in this paper can be applied to other contexts (i.e., countries, waste fractions).     

Utilisation of steel slags as neutralising agents in biooxidation of a refractory gold concentrate and their influence on the subsequent cyanidation

A study on the possibilities to utilise steel slag as neutralising agent in biooxidation of a refractory gold concentrate has been done with reference to commercial grade slaked lime. The idea has been to reduce the operating costs for neutralisation in the biooxidation plant, which is known to be the second largest operating cost. Other benefits would be savings in cost for landfilling of slag, possibilities to recycle elements present in the slag and savings of virgin limestone deposits. The slags used were an EAF slag and a slag from ladle refining; both originating from Swedish scrap based steel-making. Continuous biooxidation of the refractory gold concentrate was conducted in a single-stage 5 L reactor at a retention time of 56 h. The neutralisation capacity was determined by comparing the amount needed, per ton of feed concentrate added, to maintain the desired pH of 1.5 during steady state operation. Slaked lime had the highest neutralisation capacity with 110 kg/ton feed followed by ladle slag and EAF slag with values of 152 and 267 kg/ton feed, respectively. Sulphide mineral oxidation was similar and high in all cases although the ladle slag results were slightly better. Gold recoveries after cyanide leaching on the residues obtained were also similar and were in the range of 86-89%. However, the cyanide consumption expressed as kilogram cyanide per ton of concentrate fed to biooxidation, was double in the case of ladle slag and three times as much for the EAF slag compared to the slaked lime experiment. The increased cyanide consumption could not be explained only by the increased amount of elemental sulphur obtained in the slag experiments. The elemental sulphur formed had different reactivities as seen from the thiocyanate formation and cyanide losses due to thiocyanate formation were 16%, 32% and 40% for EAF slag, slaked lime and ladle slag, respectively. It is concluded that the ladle slag could be a possible replacement for limestone if they are mixed in proper proportions so that the microbial carbon dioxide demand is met whereas the EAF slag is less suitable due to the very fine reaction products obtained which gave operational problems with filtration and washing. To come further, experiments with the normal multi-stage biooxidation set-up with total retention time of 120 h should be performed which would increase the sulphur oxidation and eventually also reduce the cyanide consumption.     

The effects of large-scale afforestation and climate change on water allocation in the Macquarie River catchment,NSW, Australia

Widespread afforestation has been proposed as one means of addressing the increasing dryland and stream salinity problem in Australia. However, modelling results presented here suggest that large-scale tree planting will substantially reduce river flows and impose costs on downstream water users if planted in areas of high runoff yield. Streamflow reductions in the Macquarie River, NSW, Australia are estimated for a number of tree planting scenarios and global warming forecasts. The modelling framework includes the Sacramento rainfall-runoff model and IQQM, a streamflow routing tool, as well as various global climate model outputs from which daily rainfall and potential evaporation data files have been generated in OzClim, a climate scenario generator. For a 10% increase in tree cover in the headwaters of the Macquarie, we estimate a 17% reduction in inflows to Burrendong Dam. The drying trend for a mid-range scenario of regional rainfall and potential evaporation caused by a global warming of 0.5 degree C may cause an additional 5% reduction in 2030. These flow reductions will decrease the frequency of bird-breeding events in Macquarie Marshes (a RAMSAR protected wetland) and reduce the security of supply to irrigation areas downstream. Inter-decadal climate variability is predicted to have a very significant influence on catchment hydrologic behaviour. A further 20% reduction in flows from the long-term historical mean is possible, should we move into an extended period of below average rainfall years, such as occurred in eastern Australia between 1890 and 1948. Because current consumptive water use is largely adapted to the wetter conditions of post 1949, a return to prolonged dry periods would cause significant environmental stress given the agricultural and domestic water developments that have been instituted.     

Carbon storage potential in natural fiber composites

The environmental performance of hemp based natural fiber mat thermoplastic (NMT) has been evaluated in this study by quantifying carbon storage potential and CO₂ emissions and comparing the results with commercially available glass fiber composites. Non-woven mats of hemp fiber and polypropylene matrix were used to make NMT samples by film-stacking method without using any binder aid. The results showed that hemp based NMT have compatible or even better strength properties as compared to conventional flax based thermoplastics. A value of 63 MPa for flexural strength is achieved at 64% fiber content by weight. Similarly, impact energy values (84–154 J/m) are also promising. The carbon sequestration and storage by hemp crop through photosynthesis is estimated by quantifying dry biomass of fibers based on one metric ton of NMT. A value of 325 kg carbon per metric ton of hemp based composite is estimated which can be stored by the product during its useful life. An extra 22% carbon storage can be achieved by increasing the compression ratio by 13% while maintaining same flexural strength. Further, net carbon sequestration by industrial hemp crop is estimated as 0.67 ton/h/year, which is compatible to all USA urban trees and very close to naturally, regenerated forests. A comparative life cycle analysis focused on non-renewable energy consumption of natural and glass fiber composites shows that a net saving of 50 000 MJ (3 ton CO₂ emissions) per ton of thermoplastic can be achieved by replacing 30% glass fiber reinforcement with 65% hemp fiber. It is further estimated that 3.07 million ton CO₂ emissions (4.3% of total USA industrial emissions) and 1.19 million m³ crude oil (1.0% of total Canadian oil consumption) can be saved by substituting 50% fiber glass plastics with natural fiber composites in North American auto applications. However, to compete with glass fiber effectively, further research is needed to improve natural fiber processing, interfacial bonding and control moisture sensitivity in longer run.     

Economic and employment impacts of offshore wind for Ireland: A value chain analysis

ABSTRACT

The imminent development of a number of offshore wind farms in the Republic of Ireland presents a sizable opportunity to stimulate the Irish economy through the growth of an indigenous and globally competitive offshore wind supply chain. This study uses a value chain analysis to evaluate the economic and employment potential of the offshore wind sector for Ireland. The analysis is based on the expenditure on products and services required to develop an offshore wind farm, the planned capacity of projects in the pipeline, and the ability of Irish companies to supply the sector. Results suggest that by 2030, 2.5–4.5GW of domestic offshore wind development could create between 11,424 and 20,563 supply chain jobs and generate between €763 m and €1.4bn in gross value added. This is the first study to estimate domestic GVA potential for the sector.     

Added-value from innovative value chains by establishing nutrient cycles via struvite

The establishment of nutrient cycles has been widely proposed as a strategy for an efficient management of nutrients such as phosphorus (P). Global reserves of phosphate rocks are limited and are being increasingly depleted. At the same time, P is disposed of via various substance-streams in wastewater treatment. Establishing nutrient cycles may solve these problems and lead to innovative added-value chains with a higher added-value. The objective of this paper is to assess the added-value of P-recovery from sewage sludge via struvite precipitation and its application as fertilizer in Berlin-Brandenburg (Germany). The added-value from struvite precipitation was determined by performing a cost/benefit analysis based on data from standardized questionnaires and interviews with operators of wastewater treatment facilities. Surveys of 146 farmers were used to ascertain what crops were cultivated in the study area and to gauge the willingness of farmers to substitute struvite for conventional mineral P-fertilizer. Benefits from using struvite were found by calculating the fertilizer costs when struvite is substituted for conventional mineral fertilizer. The results indicate that the precipitation of struvite and its use as fertilizer generates added-value gains for wastewater treatment facilities (416,000 €) and for crop producers (35,000 €). In wastewater treatment, struvite precipitation reduces operating costs and yields additional revenues through struvite sales. In crop production, fertilization costs are reduced by substituting struvite for mineral P-, N- and Ca-fertilizers. The distribution of the added-value in the struvite value chain is determined by the marketing strategy of struvite. Farmers may obtain a higher share of added-value if struvite is marketed via direct sale.