Alaska’s Freshwater Resources: Issues Affecting Local and International Interests1

Alessa, Lilian, Mark Altaweel, Andrew Kliskey, Christopher Bone, William Schnabel, and Kalb Stevenson, 2011. Alaska’s Freshwater Resources: Issues Affecting Local and International Interests. Journal of the American Water Resources Association (JAWRA) 47(1):143‐157. DOI: 10.1111/j.1752‐1688.2010.00498.x Abstract: The State of Alaska faces a broad range of freshwater challenges including limited resource access in rural communities, increasing freshwater use, and a pressing need to better understand and prepare for climate‐driven change. Despite these significant issues, Alaska is relatively water‐rich and far more equipped to address its water resource concerns compared with other regions of the world. Globally, simultaneous and rapid water stresses have influenced and complicated conflicts and are motivating nations to develop markets and trade as one of the primary means to manage their needs for this resource. This paper presents these interacting issues in the context of Alaska’s relationship with a world undergoing significant social and ecological changes that affect freshwater supplies. We present the challenges faced by Alaska in the context of a larger global perspective, and briefly explore the relative effects these issues have on local, regional, and global scales. We present the argument that Alaska needs to develop more robust institutions and policies that can alleviate both household concerns and ensure that Alaska plays a significant role in the international freshwater arena for its long‐term resilience.     

Global Warming Impact of Electricity Generation from Beef Cattle Manure: A Life Cycle Assessment Study

We compare calculated greenhouse gas emissions for a North American beef feedlot operation, which includes biogas production by anaerobic digestion with subsequent electricity generation (the AD case), to the emissions for a “business as usual” case, which includes both a feedlot and an equivalent amount of grid-generated electricity. Anaerobic digestion, biogas production and electricity production are the major sources of differences in emissions. Fertilizer production, crop production, manure collection and spreading, as well as the associated transport stages are also considered within the LCA system boundaries; impacts on life cycle emissions from these sources are lower. Running a feedlot and producing electricity using typical grid power plants produces 3,845 kg CO_2?eq/MWh while running a feedlot, which generates biogas to produce electricity, produces 2,965 kg CO_2?eq/MWh. This savings of 880 kg CO_2?eq/MWh arises because the net power generation in the AD case emits about 90% less life cycle GHG emissions compared to grid-average electricity. The high overall emission levels arise due to emissions associated with enteric fermentation in beef cattle as the main source of GHG emissions in both the “business as usual” and the AD cases. It contributed 57% of total emissions for the feedlot /biogas /electricity system and 44% of total emissions for the feedlot /grid electricity system.     

A ton is not always a ton: A road-test of landfill,manure, and afforestation/reforestation offset protocols in the U.S. carbon market

The outcome of recent international climate negotiations suggests we are headed toward a more fragmented carbon market, with multiple emission trading and offset programs operating in parallel. To effectively harmonize and link across programs, it will be important to ensure that across offset programs and protocols that a “ton is a ton”. In this article, we consider how sample offsets projects in the U.S. carbon market are treated across protocols from five programs: the Clean Development Mechanism, Climate Action Reserve, Chicago Climate Exchange, Regional Greenhouse Gas Initiative, and the U.S. EPA's former program, Climate Leaders. We find that differences among protocols for landfill methane, manure management, and afforestation/reforestation project types in accounting boundary definitions, baseline setting methods, measurement rules, emission factors, and discounts lead to differences in offsets credited that are often significant (e.g. greater than 50%). We suggest opportunities for modification and harmonization of protocols that can improve offset quality and credibility and enhance prospects for future linking of trading units and systems.     

Futures markets and economic efficiency: A theoretical perspective

This article examines the role of futures markets in schieving economic efficiency. The question is introduced in a timeless, certain framework, and extended to the case where time, but not uncertainty, becomes important: it is shown that in such a framework futures markets ensure economic efficiency. Uncertainty is then introduced, and it is shown that contingent markets ensure full efficiency, but that these are cumbersome; it is also shown that futures markets, as an alternative, ensure approximate efficiency. An appendix explores more formally the relation between markets and efficiency.     

Challenges and opportunities of a post-Kyoto mitigation regime: a survey of the European electricity sector

This paper empirically shows how the uncertainty associated to the absence of a mitigation regime which follows the United Nations Framework Convention on Climate Change Kyoto Protocol (UN FCCC Kyoto Protocol) is affecting investments in abatement activities in the EU electricity sector and, thus, future emissions levels. Based on a survey of EU electric utilities, it identifies the most likely post-Kyoto scenarios considered by them and how they are coping with such uncertainty in their investment decisions. It is found that firms react differently to such uncertainty and adopt different strategies to cope with it, diversifying their emissions control activities. Although most companies foresee post-Kyoto compliance regimes with emissions trading systems, they differ in their perceptions of the form that a post-Kyoto regime could take and are, thus, positioning differently to face such regime. The particular features of each company and the country where they operate affect their perception of the uncertainties, their position regarding a possible post-Kyoto regime and their inclination to carry out mitigation activities. Complying with Kyoto (and, eventually, post-Kyoto) targets significantly influences the investment decisions of European electricity companies. Uncertainty about a post-Kyoto regime may already be affecting investments in mitigation activities in the electricity sector. Therefore, significant progress has to be made in the definition of a post-Kyoto regime. It is urgent to define and agree internationally the emissions reduction objectives and the mitigation instruments that will be accepted for compliance, ensuring continuity of the international emissions trading system foreseen in the Kyoto Protocol.

The private and social economics of bulk electricity storage

The ability to store excess intermittent renewable electricity is increasingly being seen as a key option for integrating large quantities of renewable capacity. However, intermittent energy sources currently account for very small amounts of total generation. Despite this fact, policymakers have begun implementing requirements that will dramatically increase the amount of bulk storage capacity. This paper examines the social benefits provided by bulk storage in the Texas electricity market, which has a large amount of renewable capacity relative to other states, but still quite limited renewable penetration. We focus on the impact of arbitraging electricity across time—a major service of bulk storage. Using current storage technologies, we demonstrate that electricity arbitrage will increase daily CO₂ emissions by an average of 0.19 tons for each MWh stored. In addition, daily SO₂ emissions will increase by an average of 1.89 pounds/MWh while NO_X emissions will fall by an average of 0.15 pounds/MWh.     

Forecasting precious metal price movements using trader positions

In the early 2000s, the precious metal markets entered into a new phase where a steady rise of prices had been observed until the October 2008 crash. Given the size and importance of precious metal market, as well as the hedging capacity of precious metals due to their low correlation with equity markets (Draper et al., 2006), the question we want to arise is whether trader positions predict the direction of gold, platinum, and silver spot price movements. The forecasting content of the Commodity Futures Trading Commission’s Commitment of Traders report for platinum, silver and gold prices using trader positions is investigated in a VAR framework. Granger causality tests are conducted to determine whether a relation between trader positions and market prices exists. An examination of the extreme trader positions on price movements is also conducted. The results indicate that market return is a significant parameter in explaining trader’s positions for all trader types in each of the precious metal markets under consideration after the beginning of 2000s where we detect a structural break for each of the market under study. Commercial traders are found to be negative feedback traders, that is, they sell when the prices increase in the market. On the other hand, in line with the previous literature, a positive correlation between returns and positions held by non-commercial and non-reporting traders is found. However, trader’s net positions do not lead market returns in general. There is some evidence on the forecasting ability of extreme trader positions on market returns.     

Options for Change in the Australian Energy Profile

Climate change is occurring largely as a result of increasing CO₂ emissions whose reduction requires greater efficiency in energy production and use and diversification of energy sources away from fossil fuels. These issues were central to the United Nation climate change discussions in Durban in December 2011 where it was agreed that a legally binding agreement to decrease greenhouse gas emissions should be reached by 2015. In the interim, nations were left with the agreement reached at the analogous 2009 Copenhagen and 2010 Cancun meetings that atmospheric CO₂ levels should be constrained to limit the global temperature rise to 2 °C. However, the route to this objective was largely left to individual nations to decide. It is within this context that options for reduction in the 95 % fossil fuel dependency and high CO₂ emissivity of the Australian energy profile using current technologies are considered. It is shown that electricity generation in particular presents significant options for changing to a less fossil fuel dependent and CO₂ emissive energy profile.     

Why are Prices in Wild Catch and Aquaculture Industries so Different?

Through a comparative analysis of prices in capture fisheries and aquaculture sectors, the objectives of this paper are a) to investigate three the trends in prices of forage catches to feed the aquaculture species, b) to analyze the amount of fish species need to feed aquaculture species in order to assess the level of efficiency in resource use, and c) to examine the degree of economic concentration either in wild-catch industry and aquaculture sectors. The results show that prices of cultivated species are higher than prices of the same species when harvested from the sea. We explain this fact by the interplay of three forces. First, the amount of wild fish to feed aquaculture species continues to improve over time. Second, the pressure of fishing activities has not been reduced since catches of most forage fishes are declining, which induce higher prices of capture species that feed aquaculture production. Third, the level of seafood market concentration is significantly higher in aquaculture than in wild catches, which generates higher prices in aquaculture.     

Diversion from landfill: quality products from valuable plastics

Mechanical recycling of 100% post-consumer plastic waste into high-quality products has been performed. The chemical and physical properties of these recycled materials have been compared with similar products manufactured from virgin resins. The properties of a blow-moulded bottle prepared from 100% post-consumer high-density polyethylene (HDPE) showed that this recycled polymer exceeded the materials specifications for virgin plastic designs. Similarly, a sample of thermoplastic polyolefin (TPO, 100% polypropylene), obtained entirely from shredder residue (SR) displayed sufficient material strength for future separation and reprocessing.