The design and implementation of an international trading scheme for greenhouse gas emissions

NARCIS (Netherlands)

Zhang, ZX

The inclusion of emissions trading in the Kyoto Protocol reflects an important decision to address climate-change issues through flexible market mechanisms. The author addresses a number of policy issues that must be considered in designing and implementing an international greenhouse gas (GHG)

Community system updating and extension concerning greenhouse gas emissions duties trading

International Nuclear Information System (INIS)

Arrieta-Langarika, I.

2010-01-01

Approving 29/2009/CE Directive, that amends Directive 2003/87/EC, relating to a trading system for allowances of greenhouse gas emissions in the Community, the European Union wants to improve this system, and, in that way, providing an appropriate tool for achieving the emissions reduction targets, set for 2020: in particular, reducing the emissions of carbon dioxide (CO 2 ) in a 20% compared to 1990 levels. Recognizing the virtues of this system as an innovative tool for reducing emissions, it should be harmonized through the use of common standards that ensure equal conditions of the facilities affected and their update, among others, increasing their scope and establishing a system of re-allocation to reduce emissions. At the same time, the regulation adopted by the EU should not address possible competition difficulties, that may arise for the industries affected by this emission trading system, more specifically, the problem of carbon leakage: the phenomenon refers to the risk that European industries must move outside the EU for not being able to cope with competition from other countries with less stringent limitations on this matter. In any case, the regime established by Directive 29/2009/CE is subject to possible changes in function of international countries might conclude. (Author) 8 refs.

Emissions trading in the real world : Ontario Power Generation's domestic and international trading activities

International Nuclear Information System (INIS)

Jantzi, B.

2001-01-01

In this presentation, the author discussed Ontario Power Generation's voluntary commitment to stabilize carbon dioxide equivalent emissions at 1990 levels. To do so, Ontario Power Generation is implementing a series of green energy initiatives, a corporate tree planting program, internal energy efficiency, and an emission reduction trading (ERT). The emphasis was placed on emission trading, where Ontario Power Generation is a leader in the field of greenhouse gas, nitrogen oxide and sulphur dioxide trading in Canada. The approach to trading adopted was explained, with the specifics provided for each of the different categories of emissions. Some examples further illustrated the process. The outlook for the future was outlined, with plans for the geological sequestration of carbon dioxide and enhanced oil recovery, low nitrogen oxide gasoline additive. The benefits of emission trading were discussed from the perspective of Ontario Power Generation and the environment, such as allowing real reductions in emissions in a cost effective manner, enhanced risk management, investments in emissions reductions. The author argued that emission reduction is the way of the future, representing the only way in which the greenhouse gas emissions reductions required to minimize global climate change will be accomplished

Environmental impacts of food trade via resource use and greenhouse gas emissions

International Nuclear Information System (INIS)

Dalin, Carole; Rodríguez-Iturbe, Ignacio

2016-01-01

Agriculture will need to significantly intensify in the next decades to continue providing essential nutritive food to a growing global population. However, it can have harmful environmental impacts, due to the use of natural and synthetic resources and the emission of greenhouse gases, which alter the water, carbon and nitrogen cycles, and threaten the fertility, health and biodiversity of landscapes. Because of the spatial heterogeneity of resource productivity, farming practices, climate, and land and water availability, the environmental impact of producing food is highly dependent on its origin. For this reason, food trade can either increase or reduce the overall environmental impacts of agriculture, depending on whether or not the impact is greater in the exporting region. Here, we review current scientific understanding of the environmental impacts of food trade, focusing on water and land use, pollution and greenhouse gas emissions. In the case of water, these impacts are mainly beneficial. However, in the cases of pollution and greenhouse gas emissions, this conclusion is not as clear. Overall, there is an urgent need for a more comprehensive, integrated approach to estimate the global impacts of food trade on the environment. Second, research is needed to improve the evaluation of some key aspects of the relative value of each resource depending on the local and regional biophysical and socio–economic context. Finally, to enhance the impact of such evaluations and their applicability in decision-making, scenario analyses and accounting of key issues like deforestation and groundwater exhaustion will be required. (letter)

Environmental impacts of food trade via resource use and greenhouse gas emissions

Science.gov (United States)

Dalin, Carole; Rodríguez-Iturbe, Ignacio

2016-03-01

Agriculture will need to significantly intensify in the next decades to continue providing essential nutritive food to a growing global population. However, it can have harmful environmental impacts, due to the use of natural and synthetic resources and the emission of greenhouse gases, which alter the water, carbon and nitrogen cycles, and threaten the fertility, health and biodiversity of landscapes. Because of the spatial heterogeneity of resource productivity, farming practices, climate, and land and water availability, the environmental impact of producing food is highly dependent on its origin. For this reason, food trade can either increase or reduce the overall environmental impacts of agriculture, depending on whether or not the impact is greater in the exporting region. Here, we review current scientific understanding of the environmental impacts of food trade, focusing on water and land use, pollution and greenhouse gas emissions. In the case of water, these impacts are mainly beneficial. However, in the cases of pollution and greenhouse gas emissions, this conclusion is not as clear. Overall, there is an urgent need for a more comprehensive, integrated approach to estimate the global impacts of food trade on the environment. Second, research is needed to improve the evaluation of some key aspects of the relative value of each resource depending on the local and regional biophysical and socio-economic context. Finally, to enhance the impact of such evaluations and their applicability in decision-making, scenario analyses and accounting of key issues like deforestation and groundwater exhaustion will be required.

Price floors for emissions trading

International Nuclear Information System (INIS)

Wood, Peter John; Jotzo, Frank

2011-01-01

Price floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit trading than the alternatives. It can also be used to implement more general hybrid approaches to emissions pricing. - Research highlights: → Price floors for emissions trading schemes guarantee a minimum carbon price. → Price floors mean that emissions can be less than specified by the ETS cap. → We examine how price floors can relate to different policy objectives. → We compare different mechanisms for implementing a price floor. → We find that a mechanism where there is an extra tax or fee has advantages.

New Commitment Options: Compatibility with Emissions Trading

Energy Technology Data Exchange (ETDEWEB)

NONE

2006-07-01

This paper considers different options for quantitative greenhouse gas emission commitments from the standpoint of their technical compatibility with emissions trading. These are dynamic targets, binding targets with price caps, non-binding targets, sector-wide targets/mechanisms, action targets, allowances and endowments, and long-term permits. This paper considers these options from the standpoint of their compatibility with emissions trading.

Review Existing and Proposed Emissions Trading Systems

Energy Technology Data Exchange (ETDEWEB)

NONE

2010-07-01

This paper reviews key design features of mandatory emissions trading systems that had been established or were under consideration in 2010, with a particular focus on implications for the energy sector. Putting a price on greenhouse gas emissions is a cornerstone policy in climate change mitigation. To this end, many countries have implemented or are developing domestic emissions trading systems.

Linking project-based mechanisms with domestic greenhouse gas emissions trading schemes

International Nuclear Information System (INIS)

Bygrave, S.; Bosi, M.

2004-01-01

Although there are a number of possible links between emission trading and project-based mechanisms, the focus of this paper is on linking domestic GHG emission trading schemes with: (1) domestic; and, (2) international (JI and CDM) GHG reduction project activities. The objective is to examine some of the challenges in linking DETs and project-based mechanisms, as well as some possible solutions to address these challenges. The link between JI / CDM and intergovernmental international emissions trading (i.e. Article 17 of the Kyoto Protocol) is defined by the Kyoto Protocol, and therefore is not covered in this paper. The paper is written in the context of: (a) countries adhering to the Kyoto Protocol and elaborating their strategies to meet their GHG emission commitments, including through the use of the emissions trading and project-based mechanisms. For example, the European Union (EU) will be commencing a GHG Emissions Trading Scheme in January 2005, and recently, the Council of ministers and the European Parliament agreed on a text for an EU Linking Directive allowing the use of JI and CDM emission units in the EU Emission Trading Scheme (EU-ETS); and (b) all countries (and/or regions within countries) with GHG emission obligations that may choose to use domestic emissions trading and project-based mechanisms to meet their GHG commitments. The paper includes the following elements: (1) an overview of the different flexibility mechanisms (i.e. GHG emissions trading and PBMs), including a brief description and comparisons between the mechanisms (Section 3); (2) an exploration of the issues that emerge when project-based mechanisms link with domestic emissions trading schemes, as well as possible solutions to address some of the challenges raised (Section 4); (3) a case study examining the EU-ETS and the EU Linking Directive on project-based mechanisms, in particular on how the EU is addressing in a practical context relevant linking issues (Section 5); (4) a

Influence of trade on national CO2 emissions

International Nuclear Information System (INIS)

Munksgaard, Jesper; Pade, Lise-Lotte; Minx, Jan; Lenzen, Manfred

2005-01-01

International trade has an impact on national CO 2 emissions and consequently on the ability to fulfil national CO 2 reduction targets. Through goods and services traded in a globally interdependent world, the consumption in each country is linked to greenhouse gas emissions in other countries. It has been argued that in order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in internationally traded commodities can have a considerable influence on the national 'greenhouse gas responsibility'. By using input-output modelling, we analyse the influence from international trade on national CO 2 emissions. The aim is to show that trade is the key to define CO 2 responsibility on a macroeconomic level and that imports should be founded in a multi-region model approach. Finally, the paper concludes on the need to consider the impact from foreign trade when negotiating reduction targets and base line scenarios. (Author)

The game of trading jobs for emissions

International Nuclear Information System (INIS)

Arto, I.; Rueda-Cantuche, J.M.; Andreoni, V.; Mongelli, I.; Genty, A.

2014-01-01

Following the debate on the implications of international trade for global climate policy, this paper introduces the topic of the economic benefits from trade obtained by exporting countries in relation to the emissions generated in the production of exports. In 2008, 24% of global greenhouse gas (GHG) emissions and 20% of the employment around the world were linked to international trade. China “exported” 30% of emissions and hosted 37.5% of the jobs generated by trade worldwide. The European Union and the United States of America were the destination of 25% and 18.4% of the GHG emissions embodied in trade. The imports of these two regions contributed to the creation of 45% of the employment generated by international trade. This paper proposes the idea of including trade issues in international climate negotiations, taking into account not only the environmental burden generated by developed countries when displacing emissions to developing countries through their imports, but also the economic benefits of developing countries producing the goods exported to developed countries. - Highlights: • Employment and trade issues should be considered in GHG emission reduction policies. • In 2008 24% of global GHG emissions and 20% of the employment are linked to trade. • 43% of GHG and 45% of employment embedded in trade are due to EU and US imports. • China exports 30% of the GHG and hosts 38% of the jobs generated by trade worldwide

Imported emissions. The world trade stowaway

International Nuclear Information System (INIS)

Fink, Meike; Gautier, Celia

2013-05-01

This study first gives an overview of existing tools and methodological challenges to account emissions included in consumed products fabricated elsewhere. It notably discusses the passage from a methodology based on a production principle to a methodology based on a consumption principle, outlines the different methodologies associated with the different analysis levels, and the importance of uncertainty sources. The second part proposes a view on emission flows included in exports and imports. It addresses the following issues: the international level, increasing importance of emissions transferred via world trade, emissions related to consumption per capita and per social class, carbon and energy intensity of products at the origin of emissions, composition of imported and exported products and intensity of their emissions, impact of a methodological change on greenhouse gas emissions by France, extent of emissions imported in France, and Germany as the first trade partner and emission importer of France. The third part discusses the political implications of an accounting of emissions related to consumption and to world trade

Emissions trading and the negotiation of pollution credits

Energy Technology Data Exchange (ETDEWEB)

Black A.J.

2000-07-01

A new market is emerging based on greenhouse gas emissions and the trading of pollution credits. While the structure of the primary market is being planned, many businesses are already positioning themselves in the nascent secondary market. This trend is based on corporate 'realpolitik' a recognition that tougher environmental regulation is inevitable. But the development of an emissions trading regime is lagging behind commercial reality. This article examines the state of play in the development of a market for carbon emissions trading.

Sectoral roles in greenhouse gas emissions and policy implications for energy utilization and carbon emissions trading: a case study of Beijing, China.

Science.gov (United States)

Ge, Jianping; Lei, Yalin; Xu, Qun; Wang, Xibo

2016-01-01

In this study, a decomposition and emissions matrix is developed to identify the roles (giver or taker) played by the sectors in the greenhouse gas emissions for the economy of Beijing in China. Our results indicate that services were the most important emitter if we consider the total (direct and indirect) emissions. In addition to Construction, Scientific studies and technical services and Finance sectors of services were the largest takers. They have a large role in boosting greenhouse gas emissions throughout the economy of Beijing. As the basis and supporter of production activities, the electricity production and the transportation sectors were the greatest givers. More emphasis should be placed on using clean energy and carbon capture and storage technologies to reduce emissions within these sectors. Based on the roles played by these sectors in greenhouse gas emissions, some policy implications were proposed for energy utilization and carbon emissions trading.

International greenhouse gas emissions trading. Who should be held liable for the non-compliance by sellers?

International Nuclear Information System (INIS)

Zhang, Zhong Xiang

1999-01-01

Article 17 of the Kyoto Protocol authorizes emissions trading, but the rules governing emissions trading have been deferred to subsequent conferences. In designing and implementing an international greenhouse gas (GHG) emissions trading scheme, assigning liability has been considered to be one of the most challenging issues. This article discusses a variety of the rules for accountability under international GHG emissions trading. It indicates that a 'buyer beware' liability is effective only to the extent that it puts additional pressure on sellers to comply with their commitments because after all sellers exercise great, if not complete, control over whether or not they comply with their commitments. Because putting such a pressure on sellers to develop effective compliance systems is not without costs to buyers, a 'buyer beware' liability should thus be imposed only in the case where non-compliance of sellers is virtually certain to occur. Moreover, in determining the optimal combination of these not-mutually-exclusive rules for accountability that are discussed in the article, the marginal benefits of adding one rule needs to be weighted against the increased costs of doing so. 12 refs

Report on a survey in fiscal 1999. Survey on the status of activities by European and American business enterprises related to greenhouse gas emissions trading; 1999 nendo onshitsu koka gas haishutsu ken torihiki ni kansuru Obei minkan kigyo no katsudo chosa

Energy Technology Data Exchange (ETDEWEB)

NONE

2000-03-01

Emissions trading of greenhouse gases is going to be introduced to give flexibility to the method of achieving reduction of the greenhouse gas emission established in the Kyoto Protocol. The emissions trading is an institution intended to achieve the environmental targets by using the 'market mechanism' in the environmental policies, which is expected to accomplish the effect of reducing greenhouse gas emission. The U.S.A. has adopted since 1990 the policy utilizing the emissions trading on SO2 and NOx, creating cases of successfully achieving the initial regulation targets in a short time. The history of this SO2 emissions trading showed that the emissions trading that makes the market mechanism to function can function as a policy even in the environmental policy. The representative of business enterprises working actively on this issue is BP Amco. BP Amco has started January 2000 full-fledged greenhouse gas right-to-emit institution inside the company. Among electric power companies, Ontario Power of Canada has executed about ten greenhouse gas emissions tradings yearly. Enron International has structured a system in order to participate positively in the greenhouse gas trading. (NEDO)

Report on a survey in fiscal 1999. Survey on the status of activities by European and American business enterprises related to greenhouse gas emissions trading; 1999 nendo onshitsu koka gas haishutsu ken torihiki ni kansuru Obei minkan kigyo no katsudo chosa

Energy Technology Data Exchange (ETDEWEB)

NONE

2000-03-01

Emissions trading of greenhouse gases is going to be introduced to give flexibility to the method of achieving reduction of the greenhouse gas emission established in the Kyoto Protocol. The emissions trading is an institution intended to achieve the environmental targets by using the 'market mechanism' in the environmental policies, which is expected to accomplish the effect of reducing greenhouse gas emission. The U.S.A. has adopted since 1990 the policy utilizing the emissions trading on SO2 and NOx, creating cases of successfully achieving the initial regulation targets in a short time. The history of this SO2 emissions trading showed that the emissions trading that makes the market mechanism to function can function as a policy even in the environmental policy. The representative of business enterprises working actively on this issue is BP Amco. BP Amco has started January 2000 full-fledged greenhouse gas right-to-emit institution inside the company. Among electric power companies, Ontario Power of Canada has executed about ten greenhouse gas emissions tradings yearly. Enron International has structured a system in order to participate positively in the greenhouse gas trading. (NEDO)

The emission trading E U system: Assessment and prospects

International Nuclear Information System (INIS)

Golini, G.

2008-01-01

The system of emission trading is a cap and trade mechanism aimed at reducing greenhouse gas emissions in an economically efficient way. It draws on Article 17 of the Kyoto Protocol and was established by directive 2003/87/CE amended by Directive 2004/101/EC. [it

Policy recommendations for Canadian municipal greenhouse gas trading

International Nuclear Information System (INIS)

Seskus, A.

2002-01-01

The municipal policies regarding greenhouse gas (GHG) emissions trading from municipalities in developed countries outside of Canada were examined in an effort to help establish a position on municipal carbon trading in Canada. The main uncertainty regarding this new concept of GHG emissions trading is the fate of the Kyoto Protocol, when or if it will be ratified. It is premature for municipalities to have well-established polices about emissions trading because the country in which a municipality is located determines the position towards GHG emissions trading. For this study, an extensive literature search of municipal policies was conducted for both GHG trading and domestic national GHG trading. This was followed by a survey on emissions trading which was distributed to more than 350 member cities (including the United States, Europe and Australia) of the International Council for Environmental Initiatives (ICLEI) Cities for Climate Protection (CCP) Campaign. The literature search revealed that municipalities outside of Canada have not yet formulated policies to address the issue of emissions trading. Only 7 per cent of the cities felt that they were informed about emissions trading, even in Europe and Australia where domestic emissions trading is closer to becoming a reality. This paper demonstrated that it is evident that more training is needed for municipalities regarding this issue. For the very few cities that had developed a GHG trading policy, each municipal policy supported municipal participation in emissions trading under conditions that included an environmental retirement, a do-no-harm clause, or an obligation to meet voluntary commitments before excess emissions can be traded. refs., tabs., figs

Greenhouse gas emission management in the US - current regional initiatives compared with international carbon trading programs

International Nuclear Information System (INIS)

Rink, A.G.; Law, S.

2009-01-01

In the United States (US) there are currently voluntary reporting programs (EPA Climate Leaders, Carbon Disclosure Project and The Climate Registry), organized market-based trading platforms (Chicago Climate Exchange and The Green Exchange) and proposed regional mandatory cap and trade programs in California, the Northeast, the West and the Midwest. The past success of the US Acid Rain 'cap-and-trade' system market-based format together with the availability of the European Union Emission Trading Scheme to serve as a template for future greenhouse gas regulations is promising as the US can participate in the world wide carbon markets already established. (author)

National Emissions Trading; Interim Report by the Committee on the Kyoto mechanisms

International Nuclear Information System (INIS)

2001-01-01

By emissions trading is meant that operators eligible for emissions trading can trade in emission rights, which entitle the operator to greenhouse gas emissions. The domestic emissions trading in gases released into the atmosphere would be limited to domestic units and emissions only. Emissions trading does not reduce emissions. Emissions are reduced by investments and changes in lines of action. The role of the national emissions trading depends on the overall national climate programme. Emissions trading - especially if it is connected with quotas imposed on greenhouse gas emissions or with other quantitative restrictions - is a strong instrument of which there is no previous experience in Finland. Compared to mere emission quotas, emissions trading might, however, offer a flexible and cost-efficient means of meeting the emission targets. The Committee thinks that the majority of - and most important - points speak in favour of the option that, if emissions trading is to be taken among the methodology of the climate policy, it is more profitable and more cost-efficient for Finland to use emissions trading as one instrument included in the climate policy together with other countries. The emissions trading area should also include countries that have lower costs of reducing emissions than those of Finland. The Committee does not propose that emissions trading between companies be initiated so as to be applicable in Finland only. If the EU Member States and the Community ratify the Kyoto Protocol and if emissions trading within the EU area begins, Finland will have to consider joining the trading system. If no decisions are made on the EU trading system by the year 2005, or if Finland cannot join it due to an implementation method that would be disadvantageous to Finland, Finland will have to consider joining the emissions trading system especially on the regional level covering the Nordic countries and the Baltic Sea States. Before joining any emissions trading

National Emissions Trading; Interim Report by the Committee on the Kyoto mechanisms

International Nuclear Information System (INIS)

2001-01-01

By emissions trading is meant that operators eligible for emissions trading can trade in emission rights, which entitle the operator to greenhouse gas emissions. The domestic emissions trading in gases released into the atmosphere would be limited to domestic units and emissions only. Emissions trading does not reduce emissions. Emissions are reduced by investments and changes in lines of action. The role of the national emissions trading depends on the overall national climate programme. Emissions trading - especially if it is connected with quotas imposed on greenhouse gas emissions or with other quantitative restrictions - is a strong instrument of which there is no previous experience in Finland. Compared to mere emission quotas, emissions trading might, however, offer a flexible and cost-efficient means of meeting the emission targets. The Committee thinks that the majority of - and most important- points speak in favour of the option that, i emissions trading is to be taken among the methodology of the climate policy, it is more profitable and more cost-efficient for Finland to use emissions trading as one instrument included in the climate policy together with other countries. The emissions trading area should also include countries that have lower costs of reducing emissions than those of Finland. The Committee does not propose that emissions trading between companies be initiated so as to be applicable in Finland only. If the EU Member States and the Community ratify the Kyoto Protocol and if emissions trading within the EU area begins, Finland will have to consider joining the trading system. If no decisions are made on the EU trading system by the year 2005, or if Finland cannot join it due to an implementation method that would be disadvantageous to Finland, Finland will have to consider joining the emissions trading system especially on the regional level covering the Nordic countries and the Baltic Sea States. Before joining any emissions trading

Emissions Trading

NARCIS (Netherlands)

Woerdman, Edwin; Backhaus, Juergen

2014-01-01

Emissions trading is a market-based instrument to achieve environmental targets in a cost-effective way by allowing legal entities to buy and sell emission rights. The current international dissemination and intended linking of emissions trading schemes underlines the growing relevance of this

International emissions trading

DEFF Research Database (Denmark)

Boom, Jan Tjeerd

This thesis discusses the design and political acceptability of international emissions trading. It is shown that there are several designs options for emissions trading at the national level that have a different impact on output and thereby related factors such as employment and consumer prices....... The differences in impact of the design make that governments may prefer different designs of emissions trading in different situations. The thesis furthermore establishes that international emissions trading may lead to higher overall emissions, which may make it a less attractive instrument....

The liability rules under international GHG emissions trading

International Nuclear Information System (INIS)

Zhong Xiang Zhang

2001-01-01

Article 17 of the Kyoto Protocol authorizes emissions trading, but the rules governing emissions trading have been deferred to subsequent conferences. In designing and implementing an international greenhouse gas (GHG) emissions trading scheme, assigning liability rules has been considered to be one of the most challenging issues. In general, a seller-beware liability works well in a strong enforcement environment. In the Kyoto Protocol, however, it may not always work. By contrast, a buyer-beware liability could be an effective deterrent to non-compliance, but the costs of imposing it are expected to be very high. To strike a middle ground, we suggest a combination of preventive measures with strong but feasible end-of-period punishments to ensure compliance with the Kyoto emissions commitments. Such measures aim to maximize efficiency gains from emissions trading and at the same time, to minimize over-selling risks. (author)

China's emissions trading takes steps towards big ambitions

Science.gov (United States)

Jotzo, Frank; Karplus, Valerie; Grubb, Michael; Löschel, Andreas; Neuhoff, Karsten; Wu, Libo; Teng, Fei

2018-04-01

China recently announced its national emissions trading scheme, advancing market-based approaches to cutting greenhouse gas emissions. Its evolution over coming years will determine whether it becomes an effective part of China's portfolio of climate policies.

Emissions trading stalls

International Nuclear Information System (INIS)

Milne, R.

1998-01-01

A brief article examines prospects for emission trading of greenhouse gas emissions in the UK. Topics covered include a checklist of principles for any trading system, plans for oil companies to do it internally, the possibility for carbon sinks as well as emissions and developments around the world. (UK) alt. Directly northward of the Sigsbee Escarpment, there is a relatively thin, low-velocity zone known as a ''gumbo zone''. Here two other pressure compartments are proposed. The origin of them is two-fold. First, initial sedimentation consists of pelagic clay draped over oceanic and transitional crust. Later, as the continental margin progrades nearer sedimentation becomes hemipelagic and coarser as gravity-driven sediments predominate. Secondly, as the salt wedge overrides a given spot of the basement, it is possible to develop a shear couple between the migrating salt and the stationary basement. The resultant shear (the site of the next strike-slip fault) may change pressures beneath the salt such that the shear may create two pressure compartments. The differences between the two compartments may be accentuated by lithologic changes caused by depositional mechanisms. (author)

Suitability of non-energy GHGs for emissions trading

International Nuclear Information System (INIS)

Haites, E.; Proestos, A.

2000-01-01

This paper assesses the suitability of different sources of non-energy greenhouse gases for emissions trading. Different forms of emissions trading are defined and criteria for determining whether a source is suitable for emissions trading are proposed. The suitability for emissions trading is assessed for: methane (CH4) from oil and gas production; CH4 from coal mines; CH4 from landfills; CH4 from wastewater treatment; CH4 from enteric fermentation; CH4 from livestock manure, nitrous oxide (N2O) from adipic acid production; N2O from fertilizer use; N2O from nitric acid production, carbon dioxide (CO2) and perfluorocarbons (PFCs) from aluminum smelting; sulphur hexafluoride (SF6) from magnesium smelting and die casting; HFCs from HCFC production, other uses of SF6, PFCs and hydrofluorocarbons (HFCs); CO2 from ammonia production; lime and cement production, and iron ore reduction

Emissions Trading: Trends and Prospects

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

This paper provides the latest developments of announced, proposed and existing greenhouse gas emissions trading schemes (ETS) around the world since 2006. It also examines different potential design options for ETS (e.g. coverage, allocation mode, provision for offsets), and how these options are treated in the existing, announced or proposed schemes.

Trading CO2 emission; Verhandelbaarheid van CO2-emissies

Energy Technology Data Exchange (ETDEWEB)

De Waal, J.F.; Looijenga, A.; Moor, R.; Wissema, E.W.J. [Afdeling Energie, Ministerie van VROM, The Hague (Netherlands)

2000-06-01

Systems for CO2-emission trading can take many shapes as developments in Europe show. European developments for emission trading tend to comprehend cap and-trade systems for large emission sources. In the Netherlands a different policy is in preparation. A trading system for sheltered sectors with an option to buy reductions from exposed sectors will be further developed by a Commission, appointed by the minister of environment. Exposed sectors are committed to belong to the top of the world on the area of energy-efficiency. The authors point out that a cap on the distribution of energy carriers natural gas, electricity and fuel seems to be an interesting option to shape the trade scheme. A cap on the distribution of electricity is desirable, but not easy to implement. The possible success of the system depends partly on an experiment with emission reductions. 10 refs.

Buyer Liability and Voluntary Inspections in International Greenhouse Gas Emissions Trading. A Laboratory Study

International Nuclear Information System (INIS)

Cason, T.N.

2003-01-01

This paper reports a preliminary laboratory experiment in which traders make investments to increase the reliability of tradable instruments that represent greenhouse gas emissions allowances. In one half of the sessions these investments are unobservable, while in the other half traders can invite costless and accurate inspections that make reliability investments public. We implement a buyer liability rule, so that if emissions reductions are unreliable (i.e., sellers default), the buyer of the allowances cannot redeem them to cover emissions. We find that allowing inspections significantly increases the reliability investment rate and overall efficiency. Prices of uninspected allowances usually trade at a substantial discount due to the buyer liability rule, which provides a strong market incentive for sellers to invest in reliability

Preparing for the emissions trading game

International Nuclear Information System (INIS)

Anon.

2001-01-01

Although the deadline (1 April 2001) for the introduction of the climate change levy (or UK greenhouse gas emissions trading scheme) is near, it is difficult to assess the likely impact of the legislation since some of the architecture and much of the detail have yet to be revealed. Meanwhile, there is a growing fear that emissions trading may work against the sectoral energy efficiency agreements and the risks and costs for individual companies are not clear. The views of the CBI are discussed in detail; it is apparently concerned that the DETR's proposals are incomplete in a number of respects and these are discussed. The subjects of grandfathering, outsourcing, electricity generation and plant closures receive special attention. Other aspects discussed are legal issues, sanctions and liability, trading and risks. Tim Denne of Oxera doubts that the UK scheme will achieve the hoped for level of trading. The scheme is likely to be a subject of boardroom debate for several years to come

[Emissions trading potential : achieving emission reductions in a cost-effective manner

International Nuclear Information System (INIS)

Fay, K.

1998-01-01

The issue of emissions trading as a viable tool to reduce greenhouse gas emissions by developed countries was discussed. The essence of this author's argument was that emissions trading alone will not solve the climate change problem and that the details of the program are hazy at best. In order to have any hope of meeting the emission reductions, it is essential to begin working out the details now, and to coordinate them with the Clean Development Mechanism (CDM) and Joint Implementation (JI) plan since all three of these flexibility mechanisms will be working in and among themselves, therefore they need to be consistent. Work on a general set of draft principles by the International Climate Change Partnership (ICCP), a coalition headquartered in Washington, DC, was summarized. Essentially, ICCP favors voluntary programs, incentives for participation, no quantitative limits on trading, no limits on sources and sinks. ICCP believes that trading should be allowed at the company level, and liability should not devolve on the buyer alone, rather, it should be negotiated between buyers and sellers. Credits for early action should also be tradable and most of all, the trading program should be simple to allow active participation by industry, and be free of bureaucratic impediments

From climate change to emissions trading : a briefing

International Nuclear Information System (INIS)

Marcu, A.

2002-01-01

Global warming is caused by the presence of greenhouse gases (GHGs) in the earth's atmosphere. These gases include, carbon dioxide, nitrous oxides, sulphur dioxide and methane. GHGs trap heat between the earth's atmosphere and the earth's surface to cause an overall warming trend of the Earth. The United Nations Framework Convention on Climate Change was established to address the issue of climate change and to determine the anthropogenic impact on climate change. Evidence from ice cores suggest that global warming has occurred in the past. The current state of global warming was examined by comparing the climate of today with that of the past. It was determined that the current global warming trend surpasses that of any ever observed in the past. The Kyoto Protocol was adopted in 1997 as a policy set to address the need for the world to reduce GHG emissions into the atmosphere. The Kyoto Protocol puts forth 3 sets of mechanisms to help businesses reduce GHG emissions. Emissions trading is one of them: it is a financial flexibility mechanism that allows businesses that have emitted more than their allowed share of GHGs to buy allowances from business that have emitted fewer GHGs than they were allowed. Emissions trading does not create reductions, however, it identifies the most economical solution to reduce GHGs. TransAlta, Ontario Power Generation and Suncor have conducted a few transactions to see how the market will work. There will be a global register to keep track of all assigned allowances. The paper described government action in addressing the climate change issue with reference to actions in the United Kingdom, Netherlands, Denmark and Switzerland. Canada has initiated the Greenhouse Gas Emission Reduction Trading Pilot (GERT) to test the effectiveness of emission reduction trading for GHGs in the Canadian context. GERT is a partnership between the federal government, some provinces, industry, labour and environmental groups. Ontario has established a

Judicial aspects of emission trade. Emission trade in the European Union

International Nuclear Information System (INIS)

Van Beuge, M.J.J.

2004-01-01

Emission trade will start in Europe in 2005. In a series of articles an overview will be given of several juridical aspects with respect to the international and national trade of emission. In part 1 attention was paid to the international judicial basis for the present climate policy. In this article an overview is given of developments with regard to emission trade in the European Union [nl

Emission trading and Kyoto's protocol: discussions concerning rules and international coordination

International Nuclear Information System (INIS)

Baron, R.

2000-01-01

The Kyoto Protocol of the Climate Convention introduced the possibility to trade greenhouse gas emission reductions among industrialized countries, as a means to reduce the total cost of achieving the agreed emission goals. The rules for this international co-ordination regime are still debated, even if its principle is generally agreed. This article, written before the negotiation in the Hague, summarizes how the notion of emission trading made its way in the Framework Convention on Climate Change. The authors show what economic gains could realistically be expected from emission trading, based on macro-economic modelling results and a simulation of trading in the conditions of the Kyoto Protocol. They stress the critical contribution that emission trading could make, provided that the Protocol's environmental basis is not undermined. In the end, the negotiation collapsed over this issue. Beyond this near-term obstacle, the international emission trading system represents a significant progress towards an efficient resolution of man-made global climate change. (author)

Emission trading: A discussion paper

International Nuclear Information System (INIS)

1992-05-01

Emission trading is a market-based incentive program designed to control air emissions in which a cap is placed on the total quantity of pollutants allowed to be emitted in an airshed. Appropriate shares of this amount are allocated among participating emission sources, and participants can buy or sell their shares. Advantages of emission trading include its potential to achieve air emission targets at a lower cost than the traditional command and control approach, and its ability to accommodate economic growth without compromising environmental quality. A study was conducted to evaluate the potential use of emission trading programs to achieve emission reduction goals set for nitrogen oxides, volatile organic compounds (VOC), and sulfur oxides. Emission trading programs in the USA are reviewed and a set of factors important for the success of emission trading are identified. Key policy and design issues related to an emission trading program are identified, explained, and discussed. Administrative issues are then analyzed, such as legislative authority, monitoring and enforcement requirements, and trading between jurisdictions. A preliminary assessment of emission trading for control of NOx and VOC in the Lower Fraser Valley indicates that emission trading would be feasible, but legislative authority to implement such a program would have to be introduced

How to design greenhouse gas trading in the EU?

DEFF Research Database (Denmark)

Svendsen, Gert Tinggaard; Vesterdal, Morten

2001-01-01

A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should...... be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision...... concerning the future design of GHG permit trading in the EU....

How to Design Greenhouse Gas Trading in the EU?

DEFF Research Database (Denmark)

Svendsen, Gert Tinggaard; Vesterdal, Morten

2003-01-01

A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should...... be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision...... concerning the future design of GHG permit trading in the EU. Udgivelsesdato: NOV...

BP's emissions trading system

International Nuclear Information System (INIS)

Victor, David G.; House, Joshua C.

2006-01-01

Between 1998 and 2001, BP reduced its emissions of greenhouse gases by more than 10%. BP's success in cutting emissions is often equated with its use of an apparently market-based emissions trading program. However no independent study has ever examined the rules and operation of BP's system and the incentives acting on managers to reduce emissions. We use interviews with key managers and with traders in several critical business units to explore the bound of BP's success with emissions trading. No money actually changed hands when permits were traded, and the main effect of the program was to create awareness of money-saving emission controls rather than strong price incentives. We show that the trading system did not operate like a 'textbook' cap and trade scheme. Rather, the BP system operated much like a 'safety valve' trading system, where managers let the market function until the cost of doing so surpassed what the company was willing to tolerate

Emissions Trading Resources

Science.gov (United States)

Learn about emissions trading programs, also known as cap and trade programs, which are market-based policy tools for protecting human health and the environment by controlling emissions from a group of sources.

Abatement Costs vs. Compliance Costs in Multi-Period Emissions Trading - The Firms' Perspective

OpenAIRE

Bode, Sven

2003-01-01

Greenhouse gas emission trading has become more and more important in the context of climate change. Recently, a discussion on trading on entity (i.e. company) level has started. Emitters likely to be obliged to participate have argued for an initial allocation of the emission rights free of charge. I analyse the implication of such an allocation based on historical emissions and on benchmarks in multi-period emission trading. Different allocation rules for successive periods are applied, nam...

Virtual CO2 Emission Flows in the Global Electricity Trade Network.

Science.gov (United States)

Qu, Shen; Li, Yun; Liang, Sai; Yuan, Jiahai; Xu, Ming

2018-05-14

Quantifying greenhouse gas emissions due to electricity consumption is crucial for climate mitigation in the electric power sector. Current practices primarily use production-based emission factors to quantify emissions for electricity consumption, assuming production and consumption of electricity take place within the same region. The increasingly intensified cross-border electricity trade complicates the accounting for emissions of electricity consumption. This study employs a network approach to account for the flows in the whole electricity trade network to estimate CO 2 emissions of electricity consumption for 137 major countries/regions in 2014. Results show that in some countries, especially those in Europe and Southern Africa, the impacts of electricity trade on the estimation of emission factors and embodied emissions are significant. The changes made to emission factors by considering intergrid electricity trade can have significant implications for emission accounting and climate mitigation when multiplied by total electricity consumption of the corresponding countries/regions.

Issues in the implementation of greenhouse gas emissions trading in Europe

International Nuclear Information System (INIS)

Ellerman, D.

2001-01-01

Ironically, emissions trading proposals to implement the Kyoto Protocol are being proposed in Europe, not among the nations usually associated with such measures. This article identifies and discusses very briefly the main issues that will have to be considered in adopting a national system of CO 2 emissions trading. These issues are: allocation of permits and monitoring, penalties and liability for non-compliance, comprehensiveness of the emissions cap, integration with renewable energy certificates, integration of sinks and other gases with carbon trading, and cost caps and escape valves. Assuming the current proposals are adopted, Europe bids fair to become the test-bed in which the rules of an eventual international system will be developed in process not unlike that characterizing the development of the European Union. The European challenge is then both inward, to Europe, to go beyond proposals and to resolve the issues identified here, and outward, to other nations, to take similar steps in matching deed with advocacy. (author)

Inspection and market-based regulation through emissions trading. The striking reliance on self-monitoring, self-reporting and verification

International Nuclear Information System (INIS)

Peeters, M.

2006-01-01

This contribution discusses inspection with regard to emissions trading. It focuses on the EU greenhouse gas emissions trading scheme. The core rule of emissions trading is that industries need to cover their emissions with tradable emission rights. There are several options for the government to distribute those rights, basically through a free allocation or an auction. The need to cover emissions with a tradable right gives a financial incentive to firms to choose for the reduction of emissions, of course related to the market price of the tradable right. This price-incentive at the same time urges governments to put in place a sound enforcement approach. One of the characteristics of current emissions trading schemes is that they heavily rely on self-monitoring duties. Nevertheless, the ultimate responsibility to inspect rests on the government. However, with the introduction of emissions trading a remarkable shift takes place: instead of the more traditional control of the actual behaviour of industries, inspection by the government ranges under the greenhouse gas emissions-trading instrument much more towards the control of self-monitoring activities. The use of verifiers within the EU greenhouse gas emissions trading scheme is in this respect a unique new provision, but at the same time raises many practical and fundamental questions.

Combined Heat and Power and Emissions Trading

Energy Technology Data Exchange (ETDEWEB)

NONE

2008-07-01

The aim of this IEA Information Paper is to help policy makers and other stakeholders understand the challenges facing the incorporation of high efficiency combined heat and power (CHP) into greenhouse gas (GHG) Emissions Trading Schemes (ETSs) -- and to propose options for overcoming them.

Transportation and Greenhouse Gas Emissions Trading. Final Technical Report

Energy Technology Data Exchange (ETDEWEB)

Steve Winkelman; Tim Hargrave; Christine Vanderlan

1999-10-01

The authors conclude in this report that an upstream system would ensure complete regulatory coverage of transportation sector emissions in an efficient and feasible manner, and as such represents a key component of a national least-cost GHG emissions abatement strategy. The broad coverage provided by an upstream system recommends this approach over vehicle-maker based approaches, which would not cover emissions from heavy-duty vehicles and the aviation, marine and off-road sub-sectors. The on-road fleet approach unfairly and inefficiently burdens vehicle manufacturers with responsibility for emissions that they cannot control. A new vehicles approach would exclude emissions from vehicles on the road prior to program inception. The hybrid approach faces significant technical and political complications, and it is not clear that the approach would actually change behavior among vehicle makers and users, which is its main purpose. They also note that a trading system would fail to encourage many land use and infrastructure measures that affect VMT growth and GHG emissions. They recommend that this market failure be addressed by complementing the trading system with a program specifically targeting land use- and infrastructure-related activities. A key issue that must be addressed in designing a national GHG control strategy is whether or not it is necessary to guarantee GHG reductions from the transport sector. Neither an upstream system nor a downstream approach would do so, since both would direct capital to the least-cost abatement opportunities wherever they were found. They review two reasons why it may be desirable to force transportation sector reductions: first, that the long-term response to climate change will require reductions in all sectors; and second, the many ancillary benefits associated with transportation-related, and especially VMT-related, emissions reduction activities. If policy makers find it desirable to establish transportation

Five essays on emissions trading

Energy Technology Data Exchange (ETDEWEB)

Godal, Odd

2005-03-01

The thesis discusses energy, environmental and economic aspects of polluting emissions with emphasis on greenhouse gas trade and political measures. 5 papers are included with titles: 1) Carbon trading across sources and periods constrained by the Marrakesh Accords which examines examine the potential effects on permit prices and abatement costs of four compliance rules governing emissions trade across sources and periods in the Kyoto Protocol: The banking rule that allows excess permits to be used later; the restoration rate rule that penalizes borrowing; the commitment period reserve rule that limits sales; and finally, the suspension rule that restricts borrowing and sales. Our framework is a two-period model where parties may be out of compliance in the Kyoto period, but are assumed to comply at a later time. Under varying assumptions about market power and US participation, we find that the rules may have pronounced effects on individual costs, but overall efficiency is not severely affected. 2) Affine price expectations and equilibrium in strategic markets which considers equilibrium in imperfect markets, featuring agents who exchange property rights. Important cases include trade in emission permits of greenhouse gases, or exchange of catch quotas of fish. Some players act strategically while others are price-takers. The ''demand curve'' is endogenous, and it affects all parties. The resulting, reduced objectives need not be concave. Therefore, existence of equilibrium is a delicate matter. To simplify things, and to ensure availability of ''equilibria up to first order'', we presume that all strategic agents form affine price expectations. 3) Greenhouse gases, quota exchange and oligopolistic competition that discusses the problem how quotas can be shared in the ''emissions market'' and how can the agents reach as overall equilibrium in the product market. 4) Strategic markets in property rights

Five essays on emissions trading

Energy Technology Data Exchange (ETDEWEB)

Godal, Odd

2005-03-01

The thesis discusses energy, environmental and economic aspects of polluting emissions with emphasis on greenhouse gas trade and political measures. 5 papers are included with titles: 1) Carbon trading across sources and periods constrained by the Marrakesh Accords which examines examine the potential effects on permit prices and abatement costs of four compliance rules governing emissions trade across sources and periods in the Kyoto Protocol: The banking rule that allows excess permits to be used later; the restoration rate rule that penalizes borrowing; the commitment period reserve rule that limits sales; and finally, the suspension rule that restricts borrowing and sales. Our framework is a two-period model where parties may be out of compliance in the Kyoto period, but are assumed to comply at a later time. Under varying assumptions about market power and US participation, we find that the rules may have pronounced effects on individual costs, but overall efficiency is not severely affected. 2) Affine price expectations and equilibrium in strategic markets which considers equilibrium in imperfect markets, featuring agents who exchange property rights. Important cases include trade in emission permits of greenhouse gases, or exchange of catch quotas of fish. Some players act strategically while others are price-takers. The ''demand curve'' is endogenous, and it affects all parties. The resulting, reduced objectives need not be concave. Therefore, existence of equilibrium is a delicate matter. To simplify things, and to ensure availability of ''equilibria up to first order'', we presume that all strategic agents form affine price expectations. 3) Greenhouse gases, quota exchange and oligopolistic competition that discusses the problem how quotas can be shared in the ''emissions market'' and how can the agents reach as overall equilibrium in the product market. 4) Strategic markets in property rights without price-takers that deals with Cournot-type models of

Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table

International Nuclear Information System (INIS)

Rose, Adam; Wei Dan

2008-01-01

This paper examines the aggregate net costs and individual country cost savings of greenhouse gas emissions trading among Pacific Rim countries. We propose emission permit allocation rules designed to entice developing countries to participate. Absence of developing country involvement has served as an excuse for the lack by participation by the United States in the first compliance period of the Kyoto Protocol and may serve as a disincentive to even more countries in subsequent periods. Our analysis specifies permit allocation rules that could result in no net costs, and even cost-savings, to developing countries for their involvement in the emissions trading market, while at the same time providing extensive benefits to industrialized countries through access to lower-cost mitigation alternatives

Implementing greenhouse gas trading in Europe. Lessons from economic literature and international experiences

International Nuclear Information System (INIS)

Boemare, Catherine; Quirion, Philippe

2002-01-01

The European Commission (document COM (2001) 581) has recently presented a directive proposal to the European Parliament and Council in order to implement a greenhouse gas emission trading scheme. If this proposal survives the policy process, it will create the most ambitious trading system ever implemented. However, the legislative process is an opportunity for various interest groups to amend environmental policies, which as a result generally deviate further from what economic literature proposes. A close look at implemented emission trading schemes, stressing their discrepancies with economic literature requests, is thus useful to increase the chances of forthcoming emission trading schemes to go through the political process. We thus review ten emission trading systems, which are either implemented or at an advanced stage of the policy process. We draw attention to major points to be aware of when designing an emission trading system: sectoral and spatial coverage, permits allocation, temporal flexibility, trading organisation, monitoring, enforcement, compliance, and the harmonisation vs. subsidiarity issue. The aim is to evaluate how far experiences in emission trading move away from theory and why. We then provide some lessons and recommendations on how to implement a greenhouse gas emission trading program in Europe. We identify some pros of the Commission proposal (spatial and sectoral coverage, temporal flexibility, trading organisation, compliance rules), some potential drawbacks (allocation rules, monitoring and enforcement) and items on which further guidance is needed (monitoring and allocation rules). Lastly, the European Commission should devote prominent attention to the US NO X Ozone Transport Commission budget program, as the only example of integration between the federal and state levels

Growth in emission transfers via international trade from 1990 to 2008.

Science.gov (United States)

Peters, Glen P; Minx, Jan C; Weber, Christopher L; Edenhofer, Ottmar

2011-05-24

Despite the emergence of regional climate policies, growth in global CO(2) emissions has remained strong. From 1990 to 2008 CO(2) emissions in developed countries (defined as countries with emission-reduction commitments in the Kyoto Protocol, Annex B) have stabilized, but emissions in developing countries (non-Annex B) have doubled. Some studies suggest that the stabilization of emissions in developed countries was partially because of growing imports from developing countries. To quantify the growth in emission transfers via international trade, we developed a trade-linked global database for CO(2) emissions covering 113 countries and 57 economic sectors from 1990 to 2008. We find that the emissions from the production of traded goods and services have increased from 4.3 Gt CO(2) in 1990 (20% of global emissions) to 7.8 Gt CO(2) in 2008 (26%). Most developed countries have increased their consumption-based emissions faster than their territorial emissions, and non-energy-intensive manufacturing had a key role in the emission transfers. The net emission transfers via international trade from developing to developed countries increased from 0.4 Gt CO(2) in 1990 to 1.6 Gt CO(2) in 2008, which exceeds the Kyoto Protocol emission reductions. Our results indicate that international trade is a significant factor in explaining the change in emissions in many countries, from both a production and consumption perspective. We suggest that countries monitor emission transfers via international trade, in addition to territorial emissions, to ensure progress toward stabilization of global greenhouse gas emissions.

Greenhouse gas emission trading schemes: a new tool for the environmental regulator's kit

International Nuclear Information System (INIS)

Soleille, Sebastien

2006-01-01

As the European Union greenhouse gas emission trading scheme (ETS) is emerging, it seems interesting to look back on previous experiments and to bring together a few elements of reflection about the pertinence of ETS as a new policy tool to regulate industrial pollution. So far, several regulatory tools have been used to decrease pollution. This article focuses on two of them, command-and-control (CAC) and ETS. There is no simple answer to which one is more efficient. It depends strongly on the context. Given a few elements outlined in this paper, the choice of an ETS to abate industrial emissions of greenhouse gases in the European Union (EU) can be considered pertinent. But, ultimately, what makes a scheme environmentally efficient is not the tool in itself (ETS or CAC) but the ambition of the target. Hence the design of the National Allocation Plans setting the emission caps are of paramount importance. They will make the EU ETS either a useless mess or an effective climate change mitigation policy tool

Climate, energy and emissions trading in the EU and DK

International Nuclear Information System (INIS)

Dyck-Madsen, S.

2004-04-01

European Union member states are facing two serious challenges: human-induced climatic changes and oil shortage. Evidence that human-induced global heating is threatening the climatic balance is piling up and the conflicts over the last oil resources are becoming critical. The European Union has neither large oil resources nor foreign-political or military power to conquer additional oil resources. The EU Commission's awareness of these facts is influencing the EU energy and climate policy. Recently EU launched the directive on carbon dioxide emissions trading within certain energy-heavy sectors. The greenhouse gas emission allowance trading directive requires a national ceiling on the allocation of CO 2 quotas for the heavy industry and energy sectors, thus adapting the quantity of quotas to the Kyoto requirements. This requirement can be quite extensive for the sectors affected by the greenhouse gas emission allowance trading directive, if national governments choose to abstain from political intervention in order to reduce release of greenhouse gases in sectors outside the emissions trading, e.g. agriculture, transportation, households, and smaller industry and service. Lack of action in these sectors will require the governments to impose either large burdens or use of national Joint Implementation and Clean Development agreements on the heavy industry and energy sectors outside national borders, thus conflicting with the Kyoto Protocol. (BA)

Multi-lateral emission trading: lessons from inter-state NOx control in the United States

International Nuclear Information System (INIS)

Farrell, A.

2001-01-01

Marketable emission permit mechanisms are increasingly proposed as efficient means of managing environmental pollution problems such as greenhouse gas emissions. Existing examples of emissions trading in the literature have so far been limited to domestic efforts put in place through the action of a national legislature, which has no parallel in international politics. This paper examines two efforts to establish multi-lateral emissions trading for nitrogen oxides among various states with the US. One, the Ozone Transport Commission's NO x Budget program is a success. The other, the Ozone Transport Assessment Group and the federal government's subsequent NO x SIP Call has not resulted in a multi-lateral emissions control program, let alone an efficient, market-based one. Due to the relative similarities of the states (compared to highly heterogeneous nations of the world) these are ''best case'' examples, and explaining the vast differences in outcomes will help explain the potential and the challenges in developing an international emission trading program to control greenhouse gas emissions. (author)

Emissions trading in international aviation. Possible design options for an emissions trading scheme and their impact on climate change and the aviation industry

International Nuclear Information System (INIS)

Deuber, Odette; Cames, Martin

2003-01-01

According to the Intergovernmental Panel on Climate Change (IPCC), the contribution of aviation to global warm-ing was 3.5 % in 1992. Considering the average growth rate of 4 % per year, the share might be more than doubled by the end of the first commitment period of the Kyoto Protocol (2012). However, due to difficulties in allocating emissions from international aviation to individual countries, these emissions are exempt from commitments under the Kyoto Protocol, although in Article 2.2 the Parties to the Protocol are obliged to stabilize and reduce greenhouse gas emissions from international aviation. To comply with this obligation, the introduction of emissions trading in international aviation is being discussed within the International Civil Aviation Organisation (ICAO). This paper analyses the design options of such an emissions trading scheme and its impact on climate change and the aviation industry. Among other matters, it discusses issues such as open and closed emissions trading schemes, coverage of gases, initial allocation of allowances and possible caps for the aviation industry. It is based on a re-search project that has been carried out on behalf of the German Federal Environmental Agency. The paper reveals that despite complex tropospheric and stratospheric interactions, as well as allocation problems, there are adequate structural options for the design of an emissions trading scheme. Given an adequate structure, emissions trading offers a great incentive to optimise flight routes not only according to economic but also to climatic factors. Consequently, the system would effectively reduce the contribution of aviation to climate change

The trading game : emissions trading schemes offer pollution as a market commodity

Energy Technology Data Exchange (ETDEWEB)

Bradbury, D.

2005-07-01

This paper discussed the market mechanisms for emissions trading. The concept emerged in signatory countries to the Kyoto Protocol in response to their commitment to reduce greenhouse gas (GHG) emissions. Emissions trading systems allow large polluters to buy and sell pollution credits in order to meet emission reduction targets. While member states in the European Union (EU) started trading in February 2005, Canada is still developing its own proposal that will be introduced in 2008 to correspond with the first phase of the Kyoto Protocol. In contrast to the European model that places absolute limits on GHG emissions, the Canadian system is intensity-based. Heavy polluters, known as large final emitters, will have to cut emissions of the 6 GHGs covered under the Kyoto Protocol as a percentage of their total industrial output. Companies that reduce their emissions more than their defined targets can trade the surplus as credits on the open domestic market. It was argued that this allows businesses to meet their own emissions targets while failing to contribute effectively to Canada's overall Kyoto target. In addition, in order to lessen the burden to industry, Canada has imposed a $15 cap on the price of credits, which is in contrast to the European system. It was argued that businesses in Europe will be more motivated to meet their targets because of the higher value on European pollution credits. With less onus on business in Canada to reduce absolute targets, the burden of reducing GHG emissions has shifted to federal taxpayers. The paper addressed some of the factors that led to Canada's decision to use an intensity-based system. One main factor was the refusal of the United States to ratify the Kyoto Protocol and the cost disadvantage this would create for Canadian firms. However, some argue that by paying more attention to energy use, companies can reduce emissions and increase shareholder value by achieving cost savings that are greater than the

International trade in carbon emission rights and basic materials: General equilibrium calculations for 2020

International Nuclear Information System (INIS)

Perroni, C.; Rutherford, T.F.

1993-01-01

Restrictions on CO 2 emissions affect international trade and the pattern of comparative advantage. This paper, based on calculations with a static general equilibrium model, suggests that international trade in carbon rights is a substitute for trade in energy-intensive goods, and thus international trading in carbon rights reduces sectoral effects of emission reductions. In our model, we surprisingly find that free riding by non-signatory countries may not render unilateral action ineffective. If the OECD unilaterally cuts global emissions by 5 per cent from 1990 levels by the year 2020, emission by non-OECD regions increase but offset less than 15 per cent of this cutback. Moreover, carbon taxes depress international oil prices and create incentives for increased trade in natural gas. 14 refs, 7 figs

Unilateral regulation of bilateral trade in greenhouse gas emission permits

International Nuclear Information System (INIS)

Rehdanz, Katrin; Tol, Richard S.J.

2005-01-01

This paper considers the coordination of domestic markets for tradable emission permits where countries determine their own emission reduction targets, using a two-country model. Linking such schemes is beneficial to both countries but may cause the exporting country to decrease its emission reduction target and export more permits. This in turn would not only reduce the costs for both countries as less emissions have to be reduced, but it also lowers the environmental benefits of the importing country. One price instrument (tariff) and two quantity instruments (discount, quota) to prevent the exporting country from issuing more permits are examined. Each instrument restricts trade and alters the terms of trade for the two countries. The importing country (and regulator) prefers an import tariff and an import quota to a carbon discount. If the exporting country releases additional permits, the importing country should not try to keep total emissions constant, as that would be ineffective and maybe even counterproductive. Instead, the importing country should aim to keep the total import constant; this would impose costs on the exporting country that are independent of the policy instrument; an import quota would be the cheapest option for the importing country. An import quota would also stress the idea of supplementary of the flexible mechanism as it increases the share of emissions reduced domestically. Compliance and liability issues constrain the market further. However, both the importing and the exporting country would prefer that the permit seller is liable in case of non-compliance, as sellers' liability would less constrain the market

Aspects related to 'emission trading'

International Nuclear Information System (INIS)

Tutuianu, Ovidiu

1999-01-01

The paper presents the aspects of international GHG (greenhouse gases) emission trading, such as: quality of GHG emission data, possible partners, monitoring activity, market mechanisms and difficulties. The following conclusions are drown: - debates on international trade with GHG emissions are currently in a very early stage; - actions are possible and feasible, particularly after Kyoto Conference, as versatile mechanism (besides the Joint Implementation Projects) which have in view the lowering of the global emission costs in different zones of the planet; - difficulties concerning monitoring, reporting and verification, practically preclude implementing a system of emission trading covering all the GHG, all the sources and reservoirs; - an international viable system of emission trading could initiate with a limited number of participants and consideration of only emission categories easy to be confined and surveyed; - existence of a national market and corresponding institutions for monitoring which could booster an international system development

EU Action against Climate Change. EU emissions trading. An open scheme promoting global innovation

International Nuclear Information System (INIS)

2005-01-01

The European Union is committed to global efforts to reduce the greenhouse gas emissions from human activities that threaten to cause serious disruption to the world's climate. Building on the innovative mechanisms set up under the Kyoto Protocol to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) - joint implementation, the clean development mechanism and international emissions trading - the EU has developed the largest company-level scheme for trading in emissions of carbon dioxide (CO2), making it the world leader in this emerging market. The emissions trading scheme started in the 25 EU Member States on 1 January 2005

Linking environment-productivity trade-offs and correlated uncertainties: Greenhouse gas emissions and crop productivity in paddy rice production systems

International Nuclear Information System (INIS)

Hayashi, Kiyotada; Nagumo, Yoshifumi; Domoto, Akiko

2016-01-01

In comparative life cycle assessments of agricultural production systems, analyses of both the trade-offs between environmental impacts and crop productivity and of the uncertainties specific to agriculture such as fluctuations in greenhouse gas (GHG) emissions and crop yields are crucial. However, these two issues are usually analyzed separately. In this paper, we present a framework to link trade-off and uncertainty analyses; correlated uncertainties are integrated into environment-productivity trade-off analyses. We compared three rice production systems in Japan: a system using a pelletized, nitrogen-concentrated organic fertilizer made from poultry manure using closed-air composting techniques (high-N system), a system using a conventional organic fertilizer made from poultry manure using open-air composting techniques (low-N system), and a system using a chemical compound fertilizer (conventional system). We focused on two important sources of uncertainties in paddy rice cultivation—methane emissions from paddy fields and crop yields. We found trade-offs between the conventional and high-N systems and the low-N system and the existence of positively correlated uncertainties in the conventional and high-N systems. We concluded that our framework is effective in recommending the high-N system compared with the low-N system, although the performance of the former is almost the same as the conventional system. - Highlights: • Correlated uncertainties were integrated into environment-productivity trade-offs. • Life cycle GHG emissions and crop yields were analyzed using field and survey data. • Three rice production systems using chemical or organic fertilizers were compared. • There were portfolio (insurance) effects in matured technologies. • Analysis of trade-offs and correlated uncertainties will be useful for decisions.

Linking environment-productivity trade-offs and correlated uncertainties: Greenhouse gas emissions and crop productivity in paddy rice production systems

Energy Technology Data Exchange (ETDEWEB)

Hayashi, Kiyotada, E-mail: hayashi@affrc.go.jp [Institute for Agro-Environmental Sciences, National Agriculture and Food Research Organization, 3-1-3 Kannondai, Tsukuba, Ibaraki 305-8604 (Japan); Nagumo, Yoshifumi [Crop Research Center, Niigata Agricultural Research Institute, 857 Nagakura-machi, Nagaoka, Niigata 940-0826 (Japan); Domoto, Akiko [Mie Prefecture Agricultural Research Institute, 530 Kawakita-cho, Ureshino, Matsusaka, Mie 515-2316 (Japan)

2016-11-15

In comparative life cycle assessments of agricultural production systems, analyses of both the trade-offs between environmental impacts and crop productivity and of the uncertainties specific to agriculture such as fluctuations in greenhouse gas (GHG) emissions and crop yields are crucial. However, these two issues are usually analyzed separately. In this paper, we present a framework to link trade-off and uncertainty analyses; correlated uncertainties are integrated into environment-productivity trade-off analyses. We compared three rice production systems in Japan: a system using a pelletized, nitrogen-concentrated organic fertilizer made from poultry manure using closed-air composting techniques (high-N system), a system using a conventional organic fertilizer made from poultry manure using open-air composting techniques (low-N system), and a system using a chemical compound fertilizer (conventional system). We focused on two important sources of uncertainties in paddy rice cultivation—methane emissions from paddy fields and crop yields. We found trade-offs between the conventional and high-N systems and the low-N system and the existence of positively correlated uncertainties in the conventional and high-N systems. We concluded that our framework is effective in recommending the high-N system compared with the low-N system, although the performance of the former is almost the same as the conventional system. - Highlights: • Correlated uncertainties were integrated into environment-productivity trade-offs. • Life cycle GHG emissions and crop yields were analyzed using field and survey data. • Three rice production systems using chemical or organic fertilizers were compared. • There were portfolio (insurance) effects in matured technologies. • Analysis of trade-offs and correlated uncertainties will be useful for decisions.

EU emissions trading: Distinctive behavior of small companies

OpenAIRE

Naegele, Helene; Zaklan, Aleksandar

2016-01-01

The EU Emissions Trading System (EU ETS) is the cornerstone of the European Union's climate policy and covers just under half of the EU's greenhouse gas emissions. More than ten years since the EU ETS was first introduced, there continues to be substantial research interest regarding its functioning and the behavior of participating companies. DIW Berlin conducted three econometric studies based on microdata at company and/or installation level. The findings suggest that, overall, there are o...

The Adaptation Law for emissions trading. Part 2. A level playing field for emissions trading?

International Nuclear Information System (INIS)

Simonetti, S.

2010-01-01

To supplement, clarify and simplify the regulations for emission trading, the Amendment Act emission trading II was submitted to the Dutch Lower Chamber end of 2009. This article discusses the pending bill and comments on a number of remarkable stipulations that may be important to the market parties. First a brief overview is provided of the basic principles of emission trading and the players in the CO2 market. [nl

Strategic partitioning of emission allowances under the EU Emission Trading Scheme

Energy Technology Data Exchange (ETDEWEB)

Boehringer, Christoph [Univ. of Oldenburg, Department of Economics, and Centre for European Economic Research (ZEW) (Germany); Rosendahl, Knut Einar [Statistics Norway, Research Department, Pob. 8131 Dep., N-0033 Oslo (Norway)

2009-08-15

The EU Emission Trading Scheme (ETS) is breaking new ground in the experience with emission trading regimes across multiple jurisdictions. Since the EU ETS covers only some industries, it implies a hybrid emission control scheme where EU member states must apply complementary domestic emissions regulation for the non-trading sectors of their economies in order to comply with their national emission reduction targets. The EU ETS thus opens up for strategic partitioning of national emissions budgets by the member states between trading and non-trading sectors. In this paper we examine the potential effects of such strategic behavior on compliance cost and emissions prices. We show that concerns on efficiency losses from strategic partitioning are misplaced. In turn, our analysis implicitly indicates significant political economy forces behind EU climate policy, as both cost-effective and strategically motivated partitioning of national emission budgets are far off from the actual break-down between trading and non-trading sectors. (author)

Judicial aspects of emission trade. Disputes

International Nuclear Information System (INIS)

Bitter, J.W.

2004-01-01

Emission trade will start in Europe in 2005. In a series of articles an overview will be given of several juridical aspects with respect to the international and national trade of emission. In this last part attention will be paid to settlement of disputes in emissions trade [nl

EU Energy Law. Volume 4. The EU Greenhouse Gas Emissions Trading Scheme

International Nuclear Information System (INIS)

Delbeke, J.; Hartridge, O.; Lefevere, J.; Meadows, D.; Runge-Metzger, A.; Slingenberg, Y.; Vainio, M.; Vis, P.; Zapfel, P.

2006-06-01

Gives valuable insights in the why's, how's, trade-offs, and critical design choices of the Emission Trading System of the European Union (EU ETS). The chapters deal with (1) The EU ETS: the result of a decade of policy action on the economic dimension of EU environmental policy; (2) The international climate policy developments of the 1990s: UNFCCC, the Kyoto Protocol, the Marrakech Agreements and the EU's Kyoto ratification decision; (3) Emissions trading: What is it? Design options and misconceptions; (4) The EU ETS Directive 2003/87/EEC explained; (5) The EU ETS Linking Directive explained; (6) The economic efficiency benefits of the EU ETS; (7) The NAP I experience; (8) The key importance of the Registry Regulation and of solid monitoring and verification; and (9) The potential role of the EU ETS for the elaboration of the post-2012 international climate regime. Conclusions are in chapter 10

Emissions trading and competitive positions. The European Proposal for a Directive establishing a Framework for Greenhouse Gas Emissions Trading and Methods for the initial Allocation of Pollution Rights

International Nuclear Information System (INIS)

Grimeaud, D.; Peeters, M.

2002-10-01

The study on the intention to introduce emissions trading on a European Union level was conducted on the basis of the following three questions: Which methods can be used (by the Member States) to distribute the tradable emissions rights en which legal preconditions should be observed considering the EU-Treaty and the relevant directive proposal? Whenever necessary and possible international agreements on climate change and international trade law will be mentioned. Which safeguards are available for fair competition and which system of emissions trading is advisable in this perspective? How should the PSR (performance standard rate) system, which is preferred by industry, be valued? The structure of this study is as follows: in chapter 2 insight is given into the various methods that can be used to start an emissions trading system, i.e. the way tradable pollution rights are distributed (initial allocation). Chapter 3 will further examine the system of the initial allocation of pollution rights as it has been chosen in the proposal for the European directive. The aim is to give an exact qualification of the method of emissions trading, especially the method of initial allocation, that is used in the directive proposal. Chapter 4 examines whether safeguards are available to prevent competition distortions between firms that fall under the scope of the emissions trading scheme. Special attention will be given to conditions that result from the EU-Treaty in this context, such as the prohibition of state aid. In this chapter the international trade law will be dealt with as well. Chapter 5 will present an executive summary and the specific question whether the PSR-system is legally acceptable or maybe even recommendable, will be answered

The evolution of emissions trading in the EU. Tensions between national trading schemes and the proposed EU directive

International Nuclear Information System (INIS)

Boemare, Catherine; Quirion, Philippe; Sorrell, Steve

2003-12-01

The EU is pioneering the development of greenhouse gas emissions trading, but there is a tension between the 'top-down' and 'bottom-up' evolution of trading schemes. While the Commission is introducing a European emissions trading scheme (EU ETS) in 2005, several member states have already introduced negotiated agreements that include trading arrangements. Typically, these national schemes have a wider scope than the proposed EU directive and allow firms to use relative rather than absolute targets. The coexistence of 'top-down' and 'bottom-up' trading schemes may create some complex problems of policy interaction. This paper explores the potential interactions between the EU ETS and the negotiated agreements in France and UK and uses these to illustrate some important generic issues. The paper first describes the proposed EU directive, outlines the UK and French policies and compares their main features to the EU ETS. It then discusses how the national and European policies may interact in practice. Four issues are highlighted, namely, double regulation, double counting of emission reductions, equivalence of effort and linking trading schemes. The paper concludes with some recommendations for the future development of UK and French climate policy

How to design greenhouse gas trading in the EU?

International Nuclear Information System (INIS)

Svendsen, G.T.

2003-01-01

A new and remarkable Green Paper about how to trade greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green Paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (author)

How to design greenhouse gas trading in the EU?

International Nuclear Information System (INIS)

Tinggaard Svendsen, G.; Vesterdal, M.

2001-01-01

A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (au)

How to design greenhouse gas trading in the EU?

Energy Technology Data Exchange (ETDEWEB)

Tinggaard Svendsen, G; Vesterdal, M

2001-07-01

A new and remarkable Green Paper about how to trade Greenhouse gases (GHG) in the EU has recently been published by the Commission of the European Union. This to achieve the stated 8% reduction target level. The Green paper raises ten questions about how greenhouse gas permit trading should be designed in the EU before year 2005. These ten questions can be compressed into four main issues, namely target group, allocation of emission allowances, how to mix emission trading with other instruments and fourth enforcement. In the literature, there is a strong need to guide decision-makers and stimulate academic debates concerning the actual design of a simple and workable GHG market model for the EU. This model must take both economic, administrative and political concerns into account so that it is feasible in practice. Based on our findings, we therefore develop a policy recommendation concerning the future design of GHG permit trading in the EU. (au)

Fraud risks in emissions trading

International Nuclear Information System (INIS)

2010-09-01

The system of emission trading is a complex composed entity with on the one hand a strong environmental component and on the other hand a financial world that hooked on this instrument. In chapter 2 an introduction is provided to the emission trading system. The subsequent chapters elaborate Types of Fraud (Chapter 3), Powers (Chapter 4), and Instruments (Chapter 5). The report shows that various forms of fraud are occurring in emission trading, such as VAT fraud and identity theft. [nl

ECO2, Emissions Trading Services, development project

International Nuclear Information System (INIS)

Ruokonen, A.

2006-01-01

Emissions Trading started within EU at the beginning of 2005. It caused substantial changes to the business environment of energy companies and energy intensive industry. The planning of Emissions Trading is a complicated process and companies will need consulting, IT systems and other services. Emissions Trading introduces a new factor of production emission allowances, which are tradable commodities. In future, Emissions Trading emissions, emission allowances and the prices of emission allowances have to be considered during the fuel purchasing and the energy production planning. And the best possible knowledge of the own emissions balance and market situation has a monetary value when trading emission allowances. Allocation of emission allowances has done in each country according to National Allocation Plan (NAP), accepted by EU. Finland itself and thus also the Finnish companies will be net buyers of emission allowances in long run. That means commonly that the Finnish companies have to buy more allowances meaning some extra costs to the companies. That's why it is very important to develop and provide to the companies an innovatory emissions planning, follow-up, management and reporting systems. With good emission balance management the extra costs of Emissions Trading will be as low as possible. In ECO2 project, Empower together with Power-Deriva, developed Expert services, Emissions Balance Management and Reporting services and Risk Management services for Emissions Trading and needed software and tools for these services. (orig.)

Emission trading in Slovakia is not bound to Kyoto

International Nuclear Information System (INIS)

Slovak, K.; Zackova, K.

2004-01-01

After Pentagon published its report problems related to changes in climate became an important discussion topic again. The report indicates that future temperature increase could have fatal impacts like flooding of Netherlands. Representatives of Slovak National Climate Program do not completely share this view. They consider it to be the worst scenario - catastrophic scenario. And they are also positive that the emissions of greenhouse gases that are the main reason for these changes of climate will decrease. EU is currently working on Directives that will support one of the possible solutions - emission trading and will make this trade independent from ratification of the Kyoto protocol. The basic principle is simple - a country with production of the greenhouse gases below the legally set level or below the level set out by international agreement on climatic changes will have some spare emission quotas that can be traded i.e. sold to a country that produces more gases then allowed. And based on such an agreement signed between a Slovak and Japanese company, Japan will be allowed to produce more greenhouse gases if it can prove that there is an area in the world where the production is below the limit. But, at the same time, it will have to pay for this over-production. Starting next year over 12-thousand companies will be allowed to participate in this business. At the moment an act on emission trading is being prepared in Slovakia. It should have been completed by end of January but the approval process is being delayed. Similar acts are under preparation also in other countries and not even the EU member states have passed them yet. The National Allocation Plan in Slovakia should distribute the emission quotas to about 200 companies. Many European politicians consider the emission trade an effective economic tool provided it will be used as motivation for decrease of greenhouse gas production. And so all companies participating in this project will handle in

Report for fiscal 2000 investigations on effects imposed by introducing emission trading system; 2000 nendo haishutsuryo torihiki system donyu ni yoru eikyo ni kansuru chosa hokokusho

Energy Technology Data Exchange (ETDEWEB)

NONE

2001-03-01

With regard to effectiveness of the emission trading targeted to reduce the greenhouse effect gas emission, evaluation has been given from the three viewpoints: economies, environment, and household economy. In the research, simulations were implemented by using the GEC calculation model modified for introduction of domestic emission trading, and utilization of international emission trading. In evaluating the effects on industries and foreign trades, notice was given on the large energy consuming industries to discuss the effects of introducing the emission trading on the quantity of production and export. Regarding the effects on environment, calculations and discussions were given on greenhouse effect gas leakage rates to assess the greenhouse effect gas emission reducing effects from the domestic and international viewpoints. As a result of the discussions, it was found that the economies, environment and household economy are all benefited in regard with the domestic emission trading. Utilization of the international emission trading was also found to have sufficient positive benefit exist for the economies and household economy. (NEDO)

Pathways of human development and carbon emissions embodied in trade

Science.gov (United States)

Steinberger, Julia K.; Timmons Roberts, J.; Peters, Glen P.; Baiocchi, Giovanni

2012-02-01

It has long been assumed that human development depends on economic growth, that national economic expansion in turn requires greater energy use and, therefore, increased greenhouse-gas emissions. These interdependences are the topic of current research. Scarcely explored, however, is the impact of international trade: although some nations develop socio-economically and import high-embodied-carbon products, it is likely that carbon-exporting countries gain significantly fewer benefits. Here, we use new consumption-based measures of national carbon emissions to explore how the relationship between human development and carbon changes when we adjust national emission rates for trade. Without such adjustment of emissions, some nations seem to be getting far better development `bang' for the carbon `buck' than others, who are showing scant gains for disproportionate shares of global emissions. Adjusting for the transfer of emissions through trade explains many of these outliers, but shows that further socio-economic benefits are accruing to carbon-importing rather than carbon-exporting countries. We also find that high life expectancies are compatible with low carbon emissions but high incomes are not. Finally, we see that, despite strong international trends, there is no deterministic industrial development trajectory: there is great diversity in pathways, and national histories do not necessarily follow the global trends.

Impact of cutting meat intake on hidden greenhouse gas emissions in an import-reliant city

Science.gov (United States)

Yau, Y. Y.; Thibodeau, B.; Not, C.

2018-06-01

Greenhouse gas emissions embodied in trade is a growing concern for the international community. Multiple studies have highlighted drawbacks in the territorial and production-based accounting of greenhouse gas emissions because it neglects emissions from the consumption of goods in trade. This creates weak carbon leakage and complicates international agreements on emissions regulations. Therefore, we estimated consumption-based emissions using input-output analysis and life cycle assessment to calculate the greenhouse gas emissions hidden in meat and dairy products in Hong Kong, a city predominately reliant on imports. We found that emissions solely from meat and dairy consumption were higher than the city’s total greenhouse gas emissions using conventional production-based calculation. This implies that government reports underestimate more than half of the emissions, as 62% of emissions are embodied in international trade. The discrepancy emphasizes the need of transitioning climate targets and policy to consumption-based accounting. Furthermore, we have shown that dietary change from a meat-heavy diet to a diet in accordance with governmental nutrition guidelines could achieve a 67% reduction in livestock-related emissions, allowing Hong Kong to achieve the Paris Agreement targets for 2030. Consequently, we concluded that consumption-based accounting for greenhouse gas emissions is crucial to target the areas where emissions reduction is realistically achievable, especially for import-reliant cities like Hong Kong.

Implementing a system of emissions trading to manage GHGs; La mise en oeuvre des systemes de quotas d'emission echangeables dans la gestion des emissions de GES

Energy Technology Data Exchange (ETDEWEB)

Webster, A. [Sherbrooke Univ., PQ (Canada)

2005-06-01

The exact geographical location of greenhouse gas (GHG) emissions has no bearing on climate change. In this context the Kyoto Protocol recognizes mechanisms of flexibility for countries to attain their GHG emissions reductions. Emission trading takes advantage of this flexibility, allowing GHGs to be sold, traded, or stockpiled. An emission quota allows the owner of an energy facility to emit a certain amount of GHGs throughout the year. If this quota is not used, it can be stockpiled for the following year or it could be traded to another enterprise and owner. If the amount of emissions exceeds the initial quotas, facilities can adopt different strategies, such as reducing their GHG purchasing quotas from national enterprises that have reduced their emissions or purchase quotas from international markets. The initial allocation of quotas is an important political decision since it determines the initial distribution of the GHG reduction effort. The establishment of a quota system can contribute to economical competition and can be used to fulfill environmental objectives regarding energy source development. It is also the most effective way to minimize greenhouse gas emissions and the associated environmental impacts. This paper reviewed the regulations regarding the design of the quota system; how the ceiling of emission levels was determined; the criteria for allocating the quotas and the rules for the exchange of emission quotas. Canada and the European countries have expressed interest in this system of emissions trading. 7 refs.

Life Cycle Assessment of Greenhouse Gas Emissions

NARCIS (Netherlands)

Reijnders, L.; Chen, W.Y.; Suzuki, T.; Lackner, M.

2015-01-01

Life cycle assessments of greenhouse gas emissions have been developed for analyzing products "from cradle to grave": from resource extraction to waste disposal. Life cycle assessment methodology has also been applied to economies, trade between countries, aspects of production, and waste

Canadian municipal carbon trading primer

International Nuclear Information System (INIS)

Seskus, A.

2002-01-01

The trading of greenhouse gas (GHG) emissions is being suggested as an effective economic way to meet Canada's Kyoto target. Emissions trading is a market-based instrument that can help achieve environmental improvements while using the market to absorb the economical and effective measures to achieve emissions reductions. Placing a value on emissions means that in order to minimize costs, companies will be motivated to apply the lowest-cost emission reductions possible for regulatory approval. The two main types of emissions trading that exist in Canada are the trading of emissions that lead to the formation of smog or acid rain, and the trading of greenhouse gas emissions that lead to climate change. Since carbon dioxide is the most prevalent GHG, making up approximately 75 per cent of Canadian GHG emissions, the trading of units of GHGs is often referred to as carbon trading. The impact that emissions trading will have on municipal operations was the focus of this primer. The trading of GHG involves buying and selling of allowances of GHGs between contracting parties, usually between one party that is short of GHG credits and another that has excess credits. The 3 common approaches to emissions trading include allowance trading (cap and trade), credit trading (baseline and credit), and a hybrid system which combines both credit and allowance trading systems. The issues that impact municipalities include the debate regarding who owns the credits from landfills, particularly if power is generated using landfill gas and the power is sold as green power. Other viable questions were also addressed, including who can claim emission reduction credits if a city implements energy efficiency projects, or fuel substitution programs. Also, will municipalities be allowed to trade internationally, for example, with municipalities in the United States, and how should they spend their money earned from selling credits. This report also presents highlights from 3 emissions

Emissions trading under market imperfections

Energy Technology Data Exchange (ETDEWEB)

Lappi, P.

2013-08-15

In this thesis we consider emissions trading under various market imperfections such as uncertainty over permit price, imperfect competition and noncompliance. First, we study the effects of uncertain permit price on the firms choice of emission intensive and clean inputs in an multi-input production process. We also assess the risk aversion factors of some Finnish heat and power producers. Second, we study imperfect competition in output and permit markets with a two-stage model, where output decision is made before permit trades. The emphasis is on the strategic interaction between firms and on the efficiency increasing regulation. Third, we turn back to uncertainty and analyse the welfare difference between emissions trading and emission tax, when some of the firms may be noncompliant. The main finding is that welfare is greater with emission tax than with emissions trading, when at least one firm is noncompliant. Finally, we extend some existing models of permit banking and borrowing to encompass also noncompliant behavior of firms. Here, we analyse the incentives of compliant firms to become noncompliant at some point in time and also the time paths of the choice variables. (orig.)

Combining policy instruments to curb greenhouse gas emissions

International Nuclear Information System (INIS)

Bahn, O.

2001-01-01

The Kyoto Protocol has set greenhouse gas emission reduction targets for selected countries. To comply with these reduction requirements, decision-makers may use market-based instruments on a national or international basis. This paper advocates the combining of national emission taxes with international trade of emission permits. As a numerical application, this paper analyses macro-economic impacts of such a strategy for Switzerland. (Author)

Creating a level playing field? The concentration and centralisation of emissions in the European Union Emissions Trading System

International Nuclear Information System (INIS)

Bryant, Gareth

2016-01-01

This article questions the assumption that carbon markets create a level playing field by exploring the relationship between the organisation of capital and the organisation of emissions in the European Union Emissions Trading System (EU ETS). It constructs a database by matching installations and owners to reveal that a relatively small number of large-scale coal-fired power stations, owned by a very small group of states and corporations, are responsible for a significant proportion of greenhouse gas emissions. The findings are analysed by considering how technological dependence on coal together with the corporate institutional form combine to support the socio-spatial concentration and centralisation of capital and emissions. Case studies of the consolidation of the seven largest polluting owners from Europe's coal-dependent electricity sector and the carbon trading strategies of the two largest polluters, RWE and E.ON, then assess the impacts of energy liberalisation and emissions trading policies. The article concludes that EU energy and climate policies are pulling in different directions by clustering responsibility for greenhouse gas emissions and diffusing responsibility to address climate change. The uneven distribution of emissions within the EU ETS makes an alternative policy approach that directly targets the biggest corporate and state polluters both feasible and necessary. - Highlights: • 20 ultimate owners are responsible for one-half of 2005–12 EU ETS emissions. • 83 installations are responsible for one-third of 2005–12 EU ETS emissions. • Focus on technological dependence on coal and the corporate institutional form. • Energy liberalisation policy has consolidated responsibility for emissions. • Carbon markets have diffused responsibility for addressing climate change.

International gas trade: Potential major projects

International Nuclear Information System (INIS)

Haamsoe, B.; Mashayekhi, A.; Razavi, H.

1994-01-01

The present paper reviews some key factors affecting continued expansion of the use and trade of natural gas, with a particular focus on a group of major gas trade and transport projects now in various stages of consideration. The paper begins by outlining the distribution of potential gas supplies, it also sketches the sectorial and regional structures of potential demand for natural gas. It continues by considering current and emerging trends in the international trade of natural gas by pipeline and as liquefied natural gas (LNG). Within the context thus provided, the paper then details a number of significant potential gas trade and transportation projects individually. Finally, the paper comments on the challenges in financing and implementing gas projects, especially with regard to economic, political, and institutional issues in the producing, transit, and consuming countries

Country-Level Life Cycle Assessment of Greenhouse Gas Emissions from Liquefied Natural Gas Trade for Electricity Generation.

Science.gov (United States)

Kasumu, Adebola S; Li, Vivian; Coleman, James W; Liendo, Jeanne; Jordaan, Sarah M

2018-02-20

In the determination of the net impact of liquefied natural gas (LNG) on greenhouse gas emissions, life cycle assessments (LCA) of electricity generation have yet to combine the effects of transport distances between exporting and importing countries, country-level infrastructure in importing countries, and the fuel sources displaced in importing countries. To address this, we conduct a LCA of electricity generated from LNG export from British Columbia, Canada with a three-step approach: (1) a review of viable electricity generation markets for LNG, (2) the development of results for greenhouse gas emissions that account for transport to importing nations as well as the infrastructure required for power generation and delivery, and (3) emissions displacement scenarios to test assumptions about what electricity is being displaced in the importing nation. Results show that while the ultimate magnitude of the greenhouse gas emissions associated with natural gas production systems is still unknown, life cycle greenhouse gas emissions depend on country-level infrastructure (specifically, the efficiency of the generation fleet, transmission and distribution losses and LNG ocean transport distances) as well as the assumptions on what is displaced in the domestic electricity generation mix. Exogenous events such as the Fukushima nuclear disaster have unanticipated effects on the emissions displacement results. We highlight national regulations, environmental policies, and multilateral agreements that could play a role in mitigating emissions.

Municipal solid waste management planning considering greenhouse gas emission trading under fuzzy environment.

Science.gov (United States)

Zhang, Xiaodong; Huang, Gordon

2014-03-15

Waste management activities can release greenhouse gases (GHGs) to the atmosphere, intensifying global climate change. Mitigation of the associated GHG emissions is vital and should be considered within integrated municipal solid waste (MSW) management planning. In this study, a fuzzy possibilistic integer programming (FPIM) model has been developed for waste management facility expansion and waste flow allocation planning with consideration of GHG emission trading in an MSW management system. It can address the interrelationships between MSW management planning and GHG emission control. The scenario of total system GHG emission control is analyzed for reflecting the feature that GHG emission credits may be tradable. An interactive solution algorithm is used to solve the FPIM model based on the uncertainty-averse preferences of decision makers in terms of p-necessity level, which represents the certainty degree of the imprecise objective. The FPIM model has been applied to a hypothetical MSW planning problem, where optimal decision schemes for facility expansion and waste flow allocation have been achieved with consideration of GHG emission control. The results indicate that GHG emission credit trading can decrease total system cost through re-allocation of GHG emission credits within the entire MSW management system. This will be helpful for decision makers to effectively determine the allowable GHG emission permits in practices. Copyright © 2014 Elsevier Ltd. All rights reserved.

Life cycle assessment of greenhouse gas emissions

NARCIS (Netherlands)

Reijnders, L.; Chen, W.Y.; Seiner, J.; Suzuki, T.; Lackner, M.

2012-01-01

Life cycle assessments of greenhouse gas emissions have been developed for analyzing products "from cradle to grave": from resource extraction to waste disposal. Life cycle assessment methodology has also been applied to economies, trade between countries, aspects of production and to waste

Life cycle assessment of greenhouse gas emissions

NARCIS (Netherlands)

Reijnders, L.; Chen, W.-Y.; Suzuki, T.; Lackner, M.

2017-01-01

Life cycle assessments of greenhouse gas emissions have been developed for analyzing products “from cradle to grave”: from resource extraction to waste disposal. Life cycle assessment methodology has also been applied to economies, trade between countries, aspects of production, and waste

International markets for greenhouse gas emission reduction policies - possibilities for integrating developing countries

DEFF Research Database (Denmark)

Halsnæs, K.; Olhoff, A.

2005-01-01

Greenhouse gas (GHG) emissions are affecting a global common: the climate, and as a global environmental problem with a public good character it provides attractive opportunities for minimising control costs through the use of emission trading markets. This paper introduces cost and benefit princ...... principles that can be applied to the assessment of global markets for GHG emission reduction options and evaluates the scope for and the potential economic gains of such markets.......Greenhouse gas (GHG) emissions are affecting a global common: the climate, and as a global environmental problem with a public good character it provides attractive opportunities for minimising control costs through the use of emission trading markets. This paper introduces cost and benefit...

Emissions credits from natural gas vehicles

International Nuclear Information System (INIS)

Anderson, J.F.; Kodjak, D.

1997-01-01

Dedicated natural gas vehicles (NGVs) often are capable of testing to lower than federally required engine certification standards. NGVs often meet inherently low emission vehicle (ILEV) and ultra low emission vehicle (ULEV) standards. Over the useful life of the vehicle, a significant amount of mobile source emission reduction credits (MSERCs) can be generated. This paper will discuss key elements of establishing a workable methodology to quantify the emissions benefits generated through the purchase and use of heavy-duty natural gas vehicles instead of heavy-duty diesel vehicles. The paper will focus on a public fleet of transit buses owned by the Massachusetts Bay Transit Agency, the Massachusetts Port Authority, and a private fleet of waste haulers. Public fleets may generate emission credits as a key compliance option to offset emission shortfalls from changes to the Employee Commute Options (ECO) program, the Inspection and Maintenance program, and facilitate annual surface transportation conformity. Private fleets may generate emission credits for open market trading to area and stationary sources seeking to buy credits from mobile sources, where allowed by EPA and state policy

Improving efficiency in bilateral emission trading

International Nuclear Information System (INIS)

Burtraw, D.; Harrison, K.W.; Turner, P.

1998-01-01

When environmental damages from emissions are spatially nonuniform, permit trading has been modeled most often as a 'pollution offset program' in which emission permits are traded between agents, subject to constraints on ambient air quality. To date the institution envisioned to implement such a program involves trading on a bilateral and sequential basis. However, simulation studies indicate that the sequence of trades may alter the outcome and undermine the cost savings from a pollution offset program. This paper identifies a design for the trading institution that tends to overcome this phenomenon and improve the efficiency of equilibria obtained in a simulation model. We model a bilateral trading process for the reduction of sulfur dioxide emissions with a stochastic description of the sequence of trades within groups of nations in Europe. When trading takes place between disaggregated, stylistic representations of economic enterprises, rather than between national governments, a significantly greater portion of potential savings is achieved. In fact, under most sets of assumptions, approximate first order stochastic dominance is achieved wherein the more decentralized the trading agents, the greater the expected savings from a trading program. 4 figs., 2 tabs., 31 refs

Emissions trading in the Netherlands

International Nuclear Information System (INIS)

Zapfel, P.

2002-01-01

In the article 'Emissions trading in the Netherlands. The optimal route towards an international scheme?' (issue 1, 2002) Mulder asks the question to what extent a Dutch national CO2 trading scheme is a worthwhile effort toward an international trading scheme (i.e. is it a first step toward a European-wide emissions trading scheme) when presenting the proposal of the Dutch Commission on CO2 trade and related economic analysis. His conclusion, underlined by modeling results, is that a national scheme along the lines proposed by the Dutch Commission is an expensive policy instrument due to the high transaction costs. The first-best option according to Mulder is to impose CO2-emissions trading with an absolute ceiling on an international level. In the meantime, he states, improving the design of the energy tax system may be an efficient alternative. In this comment I would like to address two issues. First, does the approach proposed by the Dutch Commission make sense from a European perspective towards an EU-wide cap and trade allowance scheme as proposed by the European Commission in October 2001? and Second, what might this Dutch model and philosophy, scaled up to the EU level, look like?

Does EU ETS lead to emission reductions through trade? The case of the Swedish emissions trading sector participants

International Nuclear Information System (INIS)

Sandoff, Anders; Schaad, Gabriela

2009-01-01

The first trading period of the European Emissions Trading Scheme (EU ETS) has recently come to an end. The experiences of the actors in the trading sector will be of great importance in evaluating the aim and direction of this 'Grand Policy Experiment'. This paper gives an account of the attitudes and actions of the companies included in the Swedish emissions trading sector after about 15 months of experience with the system. The data are based on a study commissioned by the Swedish Environmental Protection Agency, and is a comprehensive survey that encompasses all companies operating installations included in the Swedish Emission Trading Registry. However, the results point in a somewhat disquieting direction. Although the Swedish companies have shown significant interest in reducing emissions, this survey indicates that this is done without close attention to the pricing mechanism of the market-based instruments. If this praxis is widespread within the European trading sector, it can have a serious negative effect on the efficiency of the system.

What Is Emissions Trading?

Science.gov (United States)

Learn the basics about how emissions trading uses a market-based policy tool used to control large amounts of pollution emissions from a group of sources in order to protect human health and the environment.

Climate protection and emission trading in the agriculture; Klimaschutz und Emissionshandel in der Landwirtschaft

Energy Technology Data Exchange (ETDEWEB)

Luenenbuerger, Benjamin

2013-01-15

The percentage of the agriculture in the greenhouse-gas emissions in Germany amounts 7.1% in the year 2010. Despite its importance, climate protection instruments in the area of the German agriculture are still not developed. There are hardly special regulatory, informational or market-based instruments for the climate protection in the agriculture. The question arises whether the emission trading can be a suitable instrument for climate protection in the agriculture. Thus, the opportunities of the emission trading in the agriculture are investigated. Moreover, alternative and additional instruments of climate protection are considered with respect to the agriculture.

Linking GHG Emission Trading Systems and Markets

Energy Technology Data Exchange (ETDEWEB)

NONE

2006-07-01

Several different types of links are possible between different GHG-mitigation systems. These include: Linking two or more emission trading schemes so that emissions trading can occur both within and between different schemes ('direct links'); and Linking emission trading systems to registries/mechanisms and systems that generate offsets from project based mechanisms or from direct purchases/transfers of AAUs ('indirect links').

International trade in oil, gas and carbon emission rights: An intertemporal general equilibrium model

International Nuclear Information System (INIS)

Manne, A.S.; Rutherford, T.F.

1994-01-01

This paper employs a five-region intertemporal model to examine three issues related to carbon emission restrictions. First, we investigate the possible impact of such limits upon future oil prices. We show that carbon limits are likely to differ in their near- and long-term impact. Second, we analyze the problem of open-quotes leakageclose quotes which could arise if the OECD countries were to adopt unilateral limits upon carbon emissions. Third, we quantify some of the gains from trade in carbon emission rights. Each of these issues have been studied before, but to our knowledge this is the first study based on a multi-regional, forward-looking model. We show that sequential joint maximization can be an effective way to compute equilibria for intertemporal general equilibrium models of international trade. 18 refs., 10 figs

Greenhouse gas emissions trading and complementary policies. Developing a smart mix for ambitious climate policies

Energy Technology Data Exchange (ETDEWEB)

Matthes, Felix C.

2010-06-15

A debate has - most notably as a result of the introduction of fixed caps within the framework of emissions trading - been raised about the need for using additional instruments of climate and energy policy. A common line of argument is that the targets set within the emissions trading scheme are going to be met with a high degree of certainty, and flexibility among the regulated stakeholders will lead to market-based discovery processes. Additional instruments would only generate additional costs and would therefore have to be rejected. However, closer analysis of these fundamental arguments shows that they are constructed on a very high level of abstraction and sometimes rely on strongly simplifying or idealising assumptions. Their theoretical assumptions are, at least in part, very questionable and do not correspond to conditions in the real world for climate and energy policy. At the same time the debate about policy instruments cannot be held autonomously of the specific context of the problem at hand. In this sense the very extensive (complete) and above all effective decarbonisation of the economies of industrialised countries in a comparatively short time frame is the key basic condition for the analysis, assessment and design of the climate policy mix. Essentially, the question is what the best instruments are for purging the whole economic system almost entirely of CO{sub 2} emissions within a period of only forty years. The introduction of emissions trading schemes for greenhouse gases in an increasing number of OECD countries undoubtedly constitutes an important landmark of climate policy. They: - provide a high degree of certainty in terms of meeting targets; - create, on the basis of a standardised price signal, a clearing mechanism for the broad spectrum of emission reduction options close to the market, at least in the short to medium term; and - represent, by means of linking, an interesting option in terms of the globalisation of climate policy

Implementing the Kyoto protocol : why JI and CDM show more promise than international emissions trading

NARCIS (Netherlands)

Woerdman, E.

The Kyoto protocol allows developed countries to achieve cost-effective greenhouse gas emission reductions abroad by means of international emissions trading (IET), joint implementation (JI) and the clean development mechanism (CDM). The article argues that JI and CDM projects will be more

A basis for greenhouse gas trading in agriculture : Final report of the emission reduction trading protocol team

International Nuclear Information System (INIS)

2002-01-01

A link has been established between increasing levels of greenhouse gases in the atmosphere and the rise in global temperatures. The burning of fossil fuels, land use changes, agricultural and industrial activities play a large part in the increase of greenhouse gases and result in in changes to temperature, precipitation and weather patterns. The two methods that can be used to reduce the buildup of greenhouse gases in the atmosphere are the reduction of the gases and the sequestration of carbon dioxide (carbon dioxide is absorbed) into terrestrial processes. Several policy options are being considered to effect this reduction in buildup, and one of those includes the implementation of a tradable system of emission permits. Such a scenario would involve the agricultural sector removing and reducing on-farm emissions of greenhouse gases, thereby earning it credits that could then be sold to those industries that face tougher greenhouse gases control costs. The study led to several findings: (1) trades in carbon dioxide in the Albertan agricultural sector and changes in agricultural practices could lead to reductions of up to 5 million tonnes per year to 2008, (2) the sector is in a good position to trade carbon removals and credits into a large final emitter cap and trade system, (3) some uncertainties in the policy area remain, (4) the early years of trading are not risk-free, and (5) the risks are being hedged through a number of mechanisms and tools that have already been identified. 18 refs., 3 tabs., 3 figs

Multi-period emissions trading in the electricity sector-winners and losers

International Nuclear Information System (INIS)

Bode, Sven

2006-01-01

In the context of controlling greenhouse gas emissions, the directive on a Europe-wide trading scheme may be perceived as one of the most important milestones in recent years. Prior to its start, however, a number of very specific design features have to be agreed upon. Regarding the allocation of allowances, a distribution (almost) free of charge seems to be the most likely choice. An aspect that has interestingly attracted little attention in the past is the question of how to allocate emission rights over time. The following paper analyses different allocation options in multi-period emissions trading that are currently discussed in the European context. The options are applied for the electricity sector which is simulated over two periods. The paper distinguishes between a market effect of emissions trading and compliance costs for meeting the emission reduction obligation. The market effect results from a price increase which is due to the fact that opportunity costs for using allowances must be considered. It turns out that the electricity sector as a whole gains from the introduction of the instrument due to the increase of the electricity price. With regard to the different allocation options, it is found that utilities have different preferences depending on the fuel used

Emission Trading - Effects of the EU directive; Emission Trading - Auswirkungen der EG-Richtlinie

Energy Technology Data Exchange (ETDEWEB)

Meller, E. [Verband der Elektrizitaetswirtschaft -VDEW- e.V., Berlin (Germany)

2004-07-01

The EU-Directive on 'Establishing a Scheme for Greenhouse Gas Emission Allowance Trading within the Community' came into force after it had been published in the Official Journal of the EU. The electricity industry has pursued carefully and constructively the development of this Directive. A number of suggestions were taken into consideration. Currently, the focus - in connection with the adaptation by national legislation - is on the development of a national allocation plan. (orig.) [German] Knapp zwei Jahre nach der Vorlage eines Richtlinien-Entwurfs durch die Europaeische Kommission ist die Richtlinie zur 'Einfuehrung eines EU-weiten Handels mit Treibhausgas-Emissionszertifikaten' in Kraft getreten. Im Mittelpunkt der Umsetzung der Richtlinie in nationales Recht steht die Erstellung eines Nationalen Allokationsplans, dem Kernelement des Zertifikatehandels. Fuer die Stromwirtschaft relevante Aspekte werden eroertert. (orig.)

Trading emissions improve air quality

International Nuclear Information System (INIS)

Lents, J.M.

1993-01-01

While admitting sharply contrasting views exist, James M. Lents of the South Coast Air Quality Management District in southern California sees emissions trading open-quotes as a lifesaver for our troubled planet.close quotes He explains: open-quotes If political support for the environment is to be maintained, we must seek the most economical and flexible means of pursuing cleanup. At present, market incentives and emissions trading represent our best hope.close quotes Lents is putting his money where his pen is. The air quality management district he heads plans to use market incentives, including emissions trading, to reduce air pollution in the notoriously dirty southern California area. When the system goes into operation in 1994, he estimates it will save southern California businesses more than $400 million a year in compliance costs, while also making major improvements in the region's air quality. If the idea works there, why won't it work elsewhere, even on a global scale, Lents asks? He believes it will. But open-quotes the ultimate success of emissions-trading programs, whether regional, national, or international in scope, lies in the proof that they're actually achieving reductions in harmful emissions,close quotes he emphasizes. open-quotes These reductions must be real and verifiable to satisfy the Clean Air Act and a skeptical public.close quotes

What are the opportunities related to the trading of emission reductions in the electricity market?

International Nuclear Information System (INIS)

Lemieux, M.

2003-01-01

Gaz Metropolitain distributes approximately 97 per cent of the natural gas used in Quebec. It operates an 8300 kilometre (km) pipeline network and has 150,000 customers. Revenues in 2002 were 1.6 billion. Since 1990, Gaz Metropolitain has reduced its greenhouse gas (GHG) emissions by 30 per cent. After a brief look at the sources of energy in Quebec and their associated GHG emissions, the author discussed the viability of a closed emission trading system with only a limited number of permits. The system could be opened up through the creation of credits in excluded sectors. Under the Kyoto Protocol, countries are allocated emitting permits in an open system since the credits are included in the Protocol. In Canada, the federal government has announced that a domestic emission trading system will be implemented for large emitters. The thermal production sector will be covered by a system consisting of an exchange of rights. Electricity produced from renewable energy sources would be excluded from the system, and it is yet to be decided whether credits could be generated. The creation of credits under the Canadian plan was reviewed. The projects accepted under the Greenhouse Gas Emission Reduction Trading Pilot (GERT) were examined and the development of the project was described. Some of the projects under GERT include a new dam in Newfoundland, a wind power project in Alberta, and a biomass cogeneration project in British Columbia to name but a few. It was noted that quantifying emissions in the case of indirect reductions is complex but feasible. 3 refs., tabs., figs

The effect of trade between China and the UK on national and global carbon dioxide emissions

International Nuclear Information System (INIS)

Li, You; Hewitt, C.N.

2008-01-01

We estimate the amount of carbon dioxide embodied in bi-lateral trade between the UK and China in 2004. Developing and applying the method of Shui and Harriss [2006. The role of CO 2 embodiment in US-China trade. Energy Policy 34, 4063-4068], the most recently available data on trade and CO 2 emissions have been updated and adjusted to calculate the CO 2 emissions embodied in the commodities traded between China and the UK. It was found that through trade with China, the UK reduced its CO 2 emissions by approximately 11% in 2004, compared with a non-trade scenario in which the same type and volume of goods are produced in the UK. In addition, due to the greater carbon-intensity and relatively less efficient production processes of Chinese industry, China-UK trade resulted in an additional 117 Mt of CO 2 to global CO 2 emissions in the same one year period, compared with a non-trade scenario in which the same type and volume of goods are produced in the UK. This represents an additional 19% to the reported national CO 2 emissions of the UK (555 Mt/y in 2004) and 0.4% of global emissions. These findings suggest that, through international trade, very significant environmental impacts can be shifted from one country to another, and that international trade can (but does not necessarily) result in globally increased greenhouse gas emissions. These results are additional to the environmental consequences of transporting goods, which are not robustly quantified here. (author)

Multi-objective optimisation of wastewater treatment plant control to reduce greenhouse gas emissions.

Science.gov (United States)

Sweetapple, Christine; Fu, Guangtao; Butler, David

2014-05-15

This study investigates the potential of control strategy optimisation for the reduction of operational greenhouse gas emissions from wastewater treatment in a cost-effective manner, and demonstrates that significant improvements can be realised. A multi-objective evolutionary algorithm, NSGA-II, is used to derive sets of Pareto optimal operational and control parameter values for an activated sludge wastewater treatment plant, with objectives including minimisation of greenhouse gas emissions, operational costs and effluent pollutant concentrations, subject to legislative compliance. Different problem formulations are explored, to identify the most effective approach to emissions reduction, and the sets of optimal solutions enable identification of trade-offs between conflicting objectives. It is found that multi-objective optimisation can facilitate a significant reduction in greenhouse gas emissions without the need for plant redesign or modification of the control strategy layout, but there are trade-offs to consider: most importantly, if operational costs are not to be increased, reduction of greenhouse gas emissions is likely to incur an increase in effluent ammonia and total nitrogen concentrations. Design of control strategies for a high effluent quality and low costs alone is likely to result in an inadvertent increase in greenhouse gas emissions, so it is of key importance that effects on emissions are considered in control strategy development and optimisation. Copyright © 2014 Elsevier Ltd. All rights reserved.

Electricity trade and GHG emissions: Assessment of Quebec's hydropower in the Northeastern American market (2006-2008)

International Nuclear Information System (INIS)

Ben Amor, Mourad; Pineau, Pierre-Olivier; Gaudreault, Caroline; Samson, Rejean

2011-01-01

Worldwide electricity sector reforms open up electricity markets and increase trades. This has environmental consequences as exports and imports either increase or decrease local production and consequently greenhouse gas (GHG) emissions. This paper's objective is to illustrate the importance of electricity trade's impact on GHG emissions by providing an estimate of the net GHG emissions resulting from these trades. To achieve this objective, Quebec hourly electricity exchanges with adjacent jurisdictions were examined over the 2006-2008 period. In order to associate a specific GHG emission quantity to electricity trades, hourly marginal electricity production technologies were identified and validated using the Ontario hourly output per power plant and information released in the Quebec adjacent system operator reports. It is estimated that over three years, imports into Quebec were responsible for 7.7 Mt of GHG, while Quebec hydropower exports avoided 28.3 Mt of GHG emissions. Hence, the net result is 20.6 Mt of avoided emissions over 2006-2008, or about 7 Mt per year, which corresponds to more than 8% of the Quebec yearly GHG emissions. When GHG emissions from all life cycle stages (resource extraction to end-of-life) are accounted for, the net avoided GHG emissions increase by 35%, to 27.9 Mt. - Research highlights: → Environmental benefits of hydropower exports are considerable. → Detailed GHG assessment of such electricity trade is missing from the literature. → Net GHG emissions estimate resulting from such trade is provided. → GHG gains are significant in the Northeast American electricity market due to such electricity trade.

Pollution added credit trading (PACT). New dimensions in emissions trading

International Nuclear Information System (INIS)

Schaltegger, Stefan; Thomas, Tom

1996-01-01

To date, sources of hazardous, toxic, or otherwise harmful emissions have been regulated on a pollutant by pollutant basis. Environmental policies, even the more advanced 'incentive-based' programs, have focused on individual substances rather than on the overall environmental problem to which the substances contribute. This has produced results that are less economically efficient and ecologically effective than is desirable. A more comprehensive approach combines the principles of emission reduction credit trading with advances made recently in the field of environmental impact assessment, to yield an advanced form of inter-pollutant trading, which we refer to as pollution added credit trading (PACT). PACT incorporates a method for estimating the total environmental harm generated (pollution added) by a facility emitting a variety of pollutants. Weightings that reflect relative harm are used to calculate total pollution added. Each facility covered by PACT would receive annual allowances for total pollution added that they could discharge to the environment. As with existing emissions trading programs, surplus allowances could be sold and shortfalls would be covered by purchasing other facilities' surplus allowances. PACT is more efficient than single-pollutant emissions trading in that it captures differences in marginal reduction costs that exist between pollutants as well as between facilities. It is more ecologically effective because it focuses on the overall environmental problem, rather than on the individual pollutants that contribute to the problem

Emissions trading for business and industry. A new instrument to achieve environmental goals

International Nuclear Information System (INIS)

2001-05-01

Key components of the Kyoto Protocol are the flexible instruments or mechanisms: namely trading emissions, Joint Implementation and the Clean Development Mechanism. These mechanisms make it possible to trade in CO2 emissions or emission permits, thereby enabling the Kyoto Protocol targets that have been imposed on all states, to be attained in the most cost-effective way. Although the Kyoto targets are binding only on states, it is likely that governments will pass responsibility for meeting them on to specific target groups and impose absolute or relative (energy efficiency or CO2 per unit) targets on them. Flexible instruments, especially Joint Implementation (JI) and the Clean Development Mechanism (CDM), can also be used by companies to achieve their emission targets. Until now, the VNO-NCW Confederation of Netherlands Industry has generally been positive about the use of flexible instruments. However, various developments have persuaded the VNO-NCW that it is a good idea to examine more specific questions with regard to flexible instruments. First, the CO2 trade committee (the Vogtlaender Committee) has been asked to issue recommendations concerning the possibilities inherent in a national system for emissions trading. A basic variant will be explored, in which protected sectors (households, the service industry, small industrial enterprises) will be assigned absolute ceilings and internationally operating companies will be assigned with relative targets. Second, in March 2000 the European Commission published a Green Paper on trade in greenhouse gas emissions within the European Union in order to launch an European Union (EU)-wide debate on the introduction of an EU system for trade in emissions in 2005. In common with the Netherlands, various EU member states are studying the possibilities for phasing in a system of trade in CO2 emissions; only in Denmark has such a system actually been introduced. In industry, too, many initiatives have been taken in

Voluntary emission trading potential of Turkey

International Nuclear Information System (INIS)

Ari, İzzet

2013-01-01

Climate change is likely to cause serious market failures, and carbon trading as a market instrument can help correct its negative impacts. The global carbon markets established to combat climate change include regulatory and voluntary markets. Turkey cannot utilise regulatory carbon markets under the Kyoto Protocol. As a result of her unique position in the UNFCCC, some offsetting projects in Turkey have benefitted only voluntary emission trading for the reduction of GHG emissions. Due to on-going climate change negotiation under the UNFCCC, it seems that Turkey will not use the current regulatory carbon markets. Thus, Turkey should promote the use of and participation in voluntary carbon markets. In this article, emission reduction potential via energy efficiency, renewable energy and solid waste management, and corresponding offsetting of credits with their estimated prices is investigated for the period between 2013 and 2020. The emission reduction potential for energy efficiency, renewable energy and solid waste management projects are estimated at 403, 312 and 356 million tons of CO 2 equivalent emissions respectively, totalling 1,071 million tons of CO 2 equivalent. The total revenue of the carbon certificates are estimated in the range of 19,775–33,386 million US Dollars for the same period. -- Highlights: •Turkey has 1,071 million tons GHG emission reduction in three sectors for 2013–2020. •Turkey can only use voluntary emission trading for reduction of GHGs. •Total revenue estimation could be between 19,775 and 33,386 million US Dollars. •Turkey's economy and emissions have been rapidly growing. •Turkey can more easily reduce its emission by using voluntary emission trading

Combining rate-based and cap-and-trade emissions policies

International Nuclear Information System (INIS)

Fischer, Carolyn

2003-12-01

Rate-based emissions policies (like tradable performance standards, TPS) fix average emissions intensity, while cap-and-trade (CAT) policies fix total emissions. This paper shows that unfettered trade between rate-based and cap-and-trade programs always raises combined emissions, except when product markets are related in particular ways. Gains from trade are fully passed on to consumers in the rate-based sector, resulting in more output and greater emissions allocations. We consider several policy options to offset the expansion, including a tax, an 'exchange rate' to adjust for relative permit values, output-based allocation (OBA) for the rate-based sector, and tightening the cap. A range of combinations of tighter allocations could improve situations in both sectors with trade while holding emissions constant

Competitiveness and linking of emission trading systems

Energy Technology Data Exchange (ETDEWEB)

Hausotter, Tobias; Steuwer, Sibyl; Taenzler, Dennis [adelphi, Berlin (Germany)

2011-01-15

The establishment of emission trading systems raises concerns among industries regarding international competitive disadvantages for the industries under an emissions cap. This study aims to assess competitiveness exposure of industrial sectors and presents policy measures to address these concerns. Moreover, the study provides a comparison of different existing approaches to competitiveness concerns proposed by regional emission trading systems. (orig.)

International trade and CO{sub 2} emissions; International handel og CO{sub 2}-udledning

Energy Technology Data Exchange (ETDEWEB)

Munksgaard, J.; Pade, L.L. [AKF, Copenhagen (Denmark); Lenzen, M. [Univ. of Sydney (Australia)

2005-04-01

International trade has an impact on national CO{sub 2} emissions and consequently on the ability to fulfil national CO{sub 2} reduction targets. Through goods and services traded in a globally interdependent world, the consumption in each country is linked to greenhouse gas emissions in other countries. It has been argued that in order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in international traded commodities can have a considerable influence on the national greenhouse gas responsibility. Founded in the concepts of 'producer CO{sub 2} responsibility', 'consumer CO{sub 2} responsibility' and 'CO{sub 2} trade balance' the aim of the present study has been to develop the single-region input-output model as used in a previous study into a multi-region input-output model in order to get a more realistic description of the production technologies actually used in the countries of imports. The study concludes that trade is the key to define CO{sub 2} responsibility on macroeconomics level and that imports should be founded in a multi-region model approach. The study also points at the need to consider the impact from foreign trade when negotiating national reduction targets and base line scenarios within the context of international climate agreements. (BA)

The Political Economy of International Emissions Trading Scheme Choice

DEFF Research Database (Denmark)

Boom, Jan-Tjeerd; Svendsen, Jan Tinggard

2000-01-01

The Kyoto Protocol allows emission trade between the Annex B countries. We consider three schemes of emissions trading: government trading, permit trading and credit trading. The schemes are compared in a public choice setting focusing on group size and rent-seeking from interest groups. We find ...

The coal question that emissions trading has not answered

International Nuclear Information System (INIS)

Pearse, Rebecca

2016-01-01

Can emissions trading assist with the task of placing a limit on coal production and consumption in Australia? This paper outlines a critical political economy perspective on coal and a flagship ‘market mechanism’ for emissions reduction. The prospects for an effective emissions trading scheme in coal-dominated economies are considered in light of its theoretical justifications as well as recent attempts to price carbon in Australia. Emissions trading is a weak instrument that does not address real-world failures of coal governance. At their theoretical best, carbon prices produce marginal changes to the cost structure of production. In practice, the Australian case demonstrates emissions trading is an attempt to displace the emissions reduction task away from coal, through compensation arrangements and offsetting. In light of the urgent need to rapidly reduce global emissions, direct regulation and democratisation of coal production and consumption should be flagship climate policy. - Highlights: • Emissions trading schemes (ETS) are weak instruments for placing a limit on coal. • Pre-existing failures of coal governance cannot be addressed by emissions trading. • Considerable transfers of public wealth to coal companies occurred as part of the Australian ETS. • Carbon offset arrangements spatially displace responsibility for reducing emissions away from coal.

Greenhouse gas emissions trading - implications for the coal industry

Energy Technology Data Exchange (ETDEWEB)

Joshua, F. [Arthur Andersen, London (United Kingdom). Greenhouse Gas Emissions Trading Services

2000-07-01

The Kyoto Protocol has initiated a process whereby greenhouse gas emissions markets are beginning to emerge and risks can be assessed at the corporate level. The talk discussed the three flexible market mechanisms to be available to companies for the management of carbon risk. It explained how a carbon-constrained environment will increase the emphasis on an efficient risk management strategy and infrastructure. The 'Clean Development Mechanism market place' may provide business opportunities. Recent increases in energy use and emissions, and forecasts to 2020, were discussed. Issues to be tackled at the next conference of the parties, COP6, in finalising the Kyoto Protocol are outlined. The proceedings contain only overheads/viewgraphs presented at the conference.

Hitting emissions targets with (statistical) confidence in multi-instrument Emissions Trading Schemes

International Nuclear Information System (INIS)

Shipworth, David

2003-12-01

A means of assessing, monitoring and controlling aggregate emissions from multi-instrument Emissions Trading Schemes is proposed. The approach allows contributions from different instruments with different forms of emissions targets to be integrated. Where Emissions Trading Schemes are helping to meet specific national targets, the approach allows the entry requirements of new participants to be calculated and set at a level that will achieve these targets. The approach is multi-levelled, and may be extended downwards to support pooling of participants within instruments, or upwards to embed Emissions Trading Schemes within a wider suite of policies and measures with hard and soft targets. Aggregate emissions from each instrument are treated stochastically. Emissions from the scheme as a whole are then the joint probability distribution formed by integrating the emissions from its instruments. Because a Bayesian approach is adopted, qualitative and semi-qualitative data from expert opinion can be used where quantitative data is not currently available, or is incomplete. This approach helps government retain sufficient control over emissions trading scheme targets to allow them to meet their emissions reduction obligations, while minimising the need for retrospectively adjusting existing participants' conditions of entry. This maintains participant confidence, while providing the necessary policy levers for good governance

International Emissions Trading : Design and Political Acceptability

NARCIS (Netherlands)

Boom, Jan Tjeerd

2006-01-01

This thesis discusses the design and political acceptability of international emissions trading. It is shown that there are several designs options for emissions trading at the national level that have a different impact on output and thereby related factors such as employment and consumer prices.

Greenhouse gases and emissions trading

International Nuclear Information System (INIS)

LeBlanc, A.; Dudek, D.J.

1993-01-01

Global cooperation is essential in cutting greenhouse-gas emissions, say Alice LeBlanc and Daniel J. Dudek of the Environmental Defense in New York City. The first step, they continue, is agreement among nations on an overall global limit for all greenhouse gases, followed by an allocation of the global limit among nations. The agreements must contain effective reporting and monitoring systems and enforcement provisions, they add. The Framework Convention on Climate Change, signed by most nations of the world in Brazil in 1992, provides the foundation for such an agreement, LeBlanc and Dudek note. open-quotes International emissions trading is a way to lower costs and expand reduction options for the benefit of all,close quotes they contend. Under such an arrangement, an international agency would assign allowances, stated in tons of carbon dioxide. Countries would be free to buy and sell allowances, but no country could exceed, in a given year, the total allowances it holds. By emitting less than its allowed amount, a country would accumulate more allowances, which it could sell. The authors claim such a system would offer benefits to the world economy by saving billions of dollars in pollution-reduction costs while still achieving emission limits established in an international agreement

CO2 emission trade from a fiscal perspective

International Nuclear Information System (INIS)

Klaassen, F.A.H.; Derksen, R.T.; Keijel, J.J.C.

2004-06-01

The report gives answers to questions as 'are CO2 emission permits assets or supplies?'; how to deal with forward contracts and options in CO2 emission permits 'fiscal-wise'; and 'which are the consequences of CO2 emissions trade for the rebate of pre-taxes?' Als attention is paid to trading system for NOx emission [nl

Extension of EU Emissions Trading Scheme to Other Sectors and Gases: Consequences for Uncertainty of Total Tradable Amount

International Nuclear Information System (INIS)

Monni, S.; Syri, S.; Pipatti, R.; Savolainen, I.

2007-01-01

Emissions trading in the European Union (EU), covering the least uncertain emission sources of greenhouse gas emission inventories (CO 2 from combustion and selected industrial processes in large installations), began in 2005. During the first commitment period of the Kyoto Protocol (2008-2012), the emissions trading between Parties to the Protocol will cover all greenhouse gases (CO 2 , CH 4 , N 2 O, HFCs, PFCs, and SF 6 ) and sectors (energy, industry, agriculture, waste, and selected land-use activities) included in the Protocol. In this paper, we estimate the uncertainties in different emissions trading schemes based on uncertainties in corresponding inventories. According to the results, uncertainty in emissions from the EU15 and the EU25 included in the first phase of the EU emissions trading scheme (2005-2007) is ±3% (at 95% confidence interval relative to the mean value). If the trading were extended to CH 4 and N 2 O, in addition to CO 2 , but no new emissions sectors were included, the tradable amount of emissions would increase by only 2% and the uncertainty in the emissions would range from -4 to +8%. Finally, uncertainty in emissions included in emissions trading under the Kyoto Protocol was estimated to vary from -6 to +21%. Inclusion of removals from forest-related activities under the Kyoto Protocol did not notably affect uncertainty, as the volume of these removals is estimated to be small

An examination of the International Natural Gas Trade

International Nuclear Information System (INIS)

Mazighi, A.

2003-01-01

Recent developments in the liquefied natural gas (LNG) industry, particularly the ongoing projects of liquefaction and regasification and the increasing number of LNG-carriers to be delivered in forthcoming years, have led some specialists to argue that LNG is today a crossroads between regionalisation and globalisation. Other specialists think that, by LNG's share of the total international trade of natural gas will be predominant, compared to that of pipelines. All these assumptions are based on an examination of the duration and ongoing international gas projects. The objective of our article is to examine the historical patterns of the international natural gas and discuss the conditions for the globalisation of LNG trade. Using some evidence on the international trade of natural gas from 1970 to 1997, we show the A strong correlation exists between the international trade of gas by pipeline and LNG becomes predominant, we need a delinking of these two means of trading gas. Globalisation of the LNG trade is not only linked to an increase in the relative share trade; it is also and primarily linked to an increase in the inter-area trade of LNG. There is a negligible change in the pattern of inter-area and intra-area trade of even during the late 1990s; this is due to the contracted nature of the LNG international that resulted in a stickiness of LNG routes. The emergence of a global LNG market requires the satisfaction of four conditions: economic, technical and institutional conditions - therefore, it will certainly take more years to make ING a global commodity. (author)

The surveillance of the electricity wholesale market and emission trading market

International Nuclear Information System (INIS)

Luedemann, Volker

2015-01-01

The Regulation on Wholesale Market Integrity and Transparency (REMIT) and the German Law on the Establishment of a Market Transparency Office for Wholesale Trade in Electricity and Gas (MTS-G) have fundamentally changed the surveillance of electricity wholesale trade in Germany. From now on the Federal Network Agency and the Federal Cartel Office will be jointly responsible for monitoring the electricity wholesale trade for suspicious market phenomena and abusive behaviour. The REMIT specifies that the electricity trade must be surveilled ''with due consideration to interactions'' with the emission trade system. However, occurrences observed in recent years have shown that the emission trading system is in need of reform. This has also been recognised and has prompted extensive corrective action by the regulatory authorities of the European Union. These changes have yet to be transposed into the national surveillance regimes. The present article explains why the new role accorded to the Federal Network Agency under the REMIT fails to eliminate the structural shortcomings of the old surveillance system. At least the decision to put the collection and evaluation of data exclusively in the hands of the market transparency office and the cooperation this will prompt between the supervisory authorities responsible will make the task of surveilling the energy wholesale trading market a lot easier for the authorities. The energy transition and its exigencies will yet lead to further changes in the market and its surveillance regime.

An emissions trading regime for Canada

International Nuclear Information System (INIS)

Smith, S.L.

2001-01-01

In 1998, over twelve papers were published on emissions trading regimes in Canada by the National Round Table on the Environment and the Economy (NRTEE), a federal government agency whose members represent stakeholders as varied as business, environmental groups, academics, aboriginal groups and others. One of the recommendations that emerged was for the computer modelling of the possibilities that had been identified for a domestic trading regime in Canada for greenhouse gases. It is unclear whether the modelling was ever performed as the file was taken over by the Finance Department under the umbrella of a special emission trading table that examined Canada's commitment under the Kyoto Protocol. The author examined questions pertaining to whether a domestic trading regime is essential, and what its characteristics should be in case it was deemed essential or advisable to have one. The upstream versus downstream application was looked at, as well as grand-fathering versus auction. Provincial issues were then addressed, followed by meshing with a credit system. International systems were reviewed. Early action was discussed, whereby an emitter seeks credit for action taken toward reductions since the original reference year of 1990. The case of emitters having bought or sold permits since the original reference years will also want those trades recognized under a trading regime. The author indicated that it seems probable that an emission trading system will eventually be implemented and that a debate on the issue should be initiated early

Carbon Countdown. Emissions trading to combat climate change

International Nuclear Information System (INIS)

2006-06-01

The European Emission Trading Scheme (EU ETS) is a crucial cornerstone of climate change policy in Europe and the first international trading system for carbon dioxide (CO2) emissions in the world. The ETS is a major part of the solution to one of the biggest challenges humanity is facing: global warming. A WWF review of Phase 1 of the European Emission Trading Scheme and recommendations to improve its environmental effectiveness and economic efficiency for Phase 2

Possibilities of using ISO 1406X standards in the management of greenhouse gas emissions

International Nuclear Information System (INIS)

Fabian, G.; Priesol, J.

2009-01-01

Aim of this paper is to define and describe using of ISO 1406X standards for organization, which production of greenhouse gas emissions represents an important environmental aspect especially in terms of financial benefits accruing from trading with saved / reduced emissions. Following the main aim of this paper, we have set the following sub-objectives and tasks: - Define and describe the algorithm of implementation of program on greenhouse gas emissions according to the requirements and guidelines of the ISO 1406X in the organization; - Create a model of comprehensive management of greenhouse gas emissions standards as described.

The feasibility of domestic CO2 emissions trading in Poland

International Nuclear Information System (INIS)

Missfeldt, F.; Hauff, J.

2000-09-01

In early 2000, neither a comprehensive upstream system nor an all-encompassing downstream approach to CO 2 emissions permit trading seems feasible in Poland. However, a pilot emissions trading system in the power and Combined Heat and Power (CHP) sector is thought to be a realistic option in the near future. A comprehensive upstream approach would require permits for the carbon contained in fossil fuels produced or imported in Poland. It is ruled out due to the perceived difficulties of the inclusion of the coal sector in such a system. While inclusion of the gas sector, and especially of the oil sector, seems possible within a relatively short time, relying on an upstream approach without the coal sector is not advisable. Once the restructuring of the coal sector as well as the privatization of the gas and oil sector is advanced, an upstream approach might become an option again. A comprehensive downstream approach would regulate CO 2 emissions at their source, that is mostly at point of combustion of fossil fuels. A system which includes industry, households and transport can be assumed to be infeasible. Instead, a 'core program' was examined, which would focus on power and heat generation as well as energy intensive industries. Such an approach was found feasible in principle. Currently, however, only the largest emitters could be easily integrated in a reliable system. Drawing the line between those included and those excluded from such a partial system requires careful analysis. Including all enterprises in the relevant sectors would require significant improvements in monitoring and reporting reliability. A pilot emissions permit trading system could be introduced in the professional power and heat sector. Here, awareness concerning the instrument was found to be high and the system could be based on monitoring requirements already required by law. Gradual inclusion of more relevant sectors and eventual combination with an upstream component to include oil

Bi-lateral CO_2 emissions embodied in Australia–China trade

International Nuclear Information System (INIS)

Jayanthakumaran, Kankesu; Liu, Ying

2016-01-01

This paper quantifies the CO_2 emissions embodied in bi-lateral trade between Australia and China using a sectoral input–output model. The results revealed: (1) that China performs lower than Australia in clean technology in the primary, manufacturing, energy sectors due to their overuse of coal and inefficient sectoral production processes, and (2) that China had a 30.94 Mt surplus of bi-lateral CO_2 emissions in 2010–2011 and (3) overall global emissions were reduced by 20.19 Mt through Australia–China trade in 2010–2011. The result indicates that the greater the energy efficient a country among the trading partners the lower will be the overall global CO_2 emissions. Global emissions decreased mainly because China consumed Australian primary products rather than producing them. Australia is an energy efficient producer of primary products relative to China. The bilateral trade compositions and trade volume played an important role in lowering global emissions and therefore one can view proposed China Australia Free trade Agreement positively in reducing global emissions. However, for the sustainable development, China should strengthen clean energy use and both countries should adopt measures to create an emission trading scheme in order to avoid protectionism in the form of future border price adjustments. - Highlights: •Primary (Australia) and manufactured (China) exports are a unique combination. •Quantifies CO_2 emissions embodied in bi-lateral trade between Australia and China. •Global emissions reduce because China consume Australian primary. •Australia is energy efficient producer of primary products relative to China. •Results support more trade with appropriate trade composition and volume.

Understanding the Design and Performance of Emissions Trading Systems for Greenhouse Gas Emissions

Energy Technology Data Exchange (ETDEWEB)

Toman, M.

1999-01-31

Research Spotlight presents new research findings and projects underway at Resources for the Future that are relevant to the analysis of climate change policy. As interest in greenhouse gas trading policies grows in the United States and other Annex I countries, so does the need for stronger analytical tools. The paper by Tietenberg in this collection lays out some of the principal conceptual issues that analysts face in providing more accurate and relevant tools and results for decisionmakers. In this paper we build on Tietenberg's analysis to consider some of the key modeling challenges that analysts face in developing an improved capacity for quantitatively assessing real-world policies.

Long term prospects for world gas trade

International Nuclear Information System (INIS)

Linder, P.T.

1991-01-01

Results are presented from a world gas trade model used to forecast long term gas markets. Assumptions that went into the model are described, including the extent of current proven gas reserves, production ratios, total energy and gas demand, gas supply cost curves for each producing country, available gas liquefaction and transportation facilities, and liquefied natural gas (LNG) shipping costs. The results indicate that even with generally very low supply costs for most gas producing basins, gas trade will continue to be restricted by the relatively high cost of transportation, whether by pipeline or tanker. As a consequence, future gas trade will tend to be regionally oriented. United States gas imports will come mostly from Canada, Venezuela, and Mexico; Western Europe will largely be supplied by the Soviet Union and Africa, and Japan's requirements will generally be met by Pacific Rim producers. Although the Middle East has vast quantities of gas reserves, its export growth will continue to be hampered by its remote location from major markets. 16 figs

International greenhouse gas trading programs: a discussion of measurement and accounting issues

International Nuclear Information System (INIS)

Vine, Edward; Kats, Gregory; Sathaye, Jayant; Joshi, Hemant

2003-01-01

There is general scientific consensus that global warming is occurring and that this results from human activities, primarily burning fossil fuels. There is also a growing international consensus that the most cost-effective way to slow global warming is to establish international climate change trading programs that let institutions sell greenhouse gas (GHG) reductions in an international trading program. A well designed international GHG trading program could save billions or tens of billions of dollars and could result in a more rapid transfer of cleaner, more modern energy generating, transmitting and using technologies to developing nations. Establishing an international GHG trading program will require the development of international consensus rules on how to value and credit investments, for example in energy efficiency, that result in reduced emissions of greenhouse gases. Such a program would require the development of an international technical agreement on how to value emissions reductions attributed to energy-efficiency investments that reflect realistic estimates of future energy savings--and emissions reductions--that come from those investments. This paper examines five possible approaches for valuing energy savings which might serve as the basis for an international agreement, discusses the strengths and weaknesses of each approach, and discusses lessons learned from conducting this evaluation process

Greenhouse gas emission factors of purchased electricity from interconnected grids

International Nuclear Information System (INIS)

Ji, Ling; Liang, Sai; Qu, Shen; Zhang, Yanxia; Xu, Ming; Jia, Xiaoping; Jia, Yingtao; Niu, Dongxiao; Yuan, Jiahai; Hou, Yong; Wang, Haikun; Chiu, Anthony S.F.; Hu, Xiaojun

2016-01-01

Highlights: • A new accounting framework is proposed for GHG emission factors of power grids. • Three cases are used to demonstrate the proposed framework. • Comparisons with previous system boundaries approve the necessity. - Abstract: Electricity trade among power grids leads to difficulties in measuring greenhouse gas (GHG) emission factors of purchased electricity. Traditional methods assume either electricity purchased from a grid is entirely produced locally (Boundary I) or imported electricity is entirely produced by the exporting grid (Boundary II) (in fact a blend of electricity produced by many grids). Both methods ignore the fact that electricity can be indirectly traded between grids. Failing to capture such indirect electricity trade can underestimate or overestimate GHG emissions of purchased electricity in interconnected grid networks, potentially leading to incorrectly accounting for the effects of emission reduction policies involving purchased electricity. We propose a “Boundary III” framework to account for emissions both directly and indirectly caused by purchased electricity in interconnected gird networks. We use three case studies on a national grid network, an Eurasian Continent grid network, and North Europe grid network to demonstrate the proposed Boundary III emission factors. We found that the difference on GHG emissions of purchased electricity estimated using different emission factors can be considerably large. We suggest to standardize the choice of different emission factors based on how interconnected the local grid is with other grids.

Emission trading in Europe with an exchange rate

International Nuclear Information System (INIS)

Klassen, G.A.J.; Amann, M.; Foersund, F.R.

1994-01-01

The analytical and empirical properties of a new method for emission trading according to a fixed exchange rate are explored. The exchange rate is based on the ratios of the marginal costs of abatement in the optimal solution in order to account for the impact of the location of emission sources on the deposition. It is shown that, generally, this system will not achieve the optimal solution and does not guarantee that environmental deposition constraints are not violated, although total abatement costs are always reduced. A routine was developed to mimic trading as a bilateral, sequential process, subject to an exchange rate. Use has been made of an adapted version of the optimization module in the RAINS (REgional Acidification INformation and Simulation) model. In the example used, results for SO 2 emissions in Europe show that, starting from a uniform reduction, exchange-rate trading achieves higher cost savings than one-to-one trading, without achieving the cost minimum. Sulfur deposition targets are not violated since the initial emission allocation overfulfilled targets at many places. The results are sensitive to: pre-trade emission levels, the transaction costs, the availability of information on potential cost savings and assumptions made on the behavior of trading partners. 6 figs., 3 tabs., 28 refs

Greenhouse gas emissions - a global challenge

International Nuclear Information System (INIS)

Aarebrot, Eivind; Langvik, Sveinung

2000-01-01

The article describes some greenhouse gas emission challenges in the Norwegian petroleum industry. Some of the conclusions are that the national taxation policies are insufficient and that international co-operation is essential in order to obtain significant pollution abatement. The mechanisms for this are not yet in place. Some possible measures are mentioned. The main solution to the problems internationally seems to be international co-operation projects generally with quota trade in order to meet the Kyoto agreement obligations

Trading in LNG and natural gas

International Nuclear Information System (INIS)

1992-01-01

We have examined the market for natural gas from a number of viewpoints, starting with the role of natural gas in the global energy market where its 20% share of primary energy demand has been captured in the space of almost as many years. In discussion regional energy markets we cover the disparities between supply and demand which give rise to trade by pipeline, and by sea in the form of liquefied natural gas (LNG). Both have in fact increased steadily in recent years, yet even in 1991, only 12-15% of total gas production was traded across international boundaries, whereas for oil it was closer to 40%. For the moment pipeline trade remains heavily concentrated in Europe and North America, and it is in the LNG sector where the spread of projects, both existing and planned, is more global in nature. We examine the development of LNG trades and the implications for shipping. Finally, we look at transportation costs, which are likely to be an important component in the viability of many of the natural gas export schemes now under review. There is good reason to be ''bullish'' about parts of the natural gas industry but this Report suggests that there are areas of concern which could impinge on the development of the market in the 1990s. (author)

Ontario emissions trading code : emission reduction credit creation, recording and transfer rules, rules for renewable energy projects and conservation projects, and rules for the operation of the Ontario Emissions Trading Registry

International Nuclear Information System (INIS)

2001-12-01

Emissions trading has been an integral part of Ontario's air quality strategy since December 31, 2001. Ontario has adopted the 'cap, credit and trade' type of emissions trading system, a hybrid that takes the best features of pure 'cap-and-trade' and 'baseline-and-credit' type systems. It covers nitric oxide and sulphur dioxide. The Ontario Emissions Trading Code supplements Ontario Regulation 397/01 and sets out rules for renewable energy projects and conservation projects for which applications for emission allowances can be made. This Code describes the rules for the creation and transfer of emission reduction credits (ERCs). It also explains the rules for the operation of the registry that has been established to provide information to the public about the emissions trading program and records decisions about credit creation and credit and allowance retirement. 3 tabs

Trading off Aircraft Fuel Burn and NO x Emissions for Optimal Climate Policy.

Science.gov (United States)

Freeman, Sarah; Lee, David S; Lim, Ling L; Skowron, Agnieszka; De León, Ruben Rodriguez

2018-03-06

Aviation emits pollutants that affect the climate, including CO 2 and NO x , NO x indirectly so, through the formation of tropospheric ozone and reduction of ambient methane. To improve the fuel performance of engines, combustor temperatures and pressures often increase, increasing NO x emissions. Conversely, combustor modifications to reduce NO x may increase CO 2 . Hence, a technology trade-off exists, which also translates to a trade-off between short-lived climate forcers and a long-lived greenhouse gas, CO 2 . Moreover, the NO x -O 3 -CH 4 system responds in a nonlinear manner, according to both aviation emissions and background NO x . A simple climate model was modified to incorporate nonlinearities parametrized from a complex chemistry model. Case studies showed that for a scenario of a 20% reduction in NO x emissions the consequential CO 2 penalty of 2% actually increased the total radiative forcing (RF). For a 2% fuel penalty, NO x emissions needed to be reduced by >43% to realize an overall benefit. Conversely, to ensure that the fuel penalty for a 20% NO x emission reduction did not increase overall forcing, a 0.5% increase in CO 2 was found to be the "break even" point. The time scales of the climate effects of NO x and CO 2 are quite different, necessitating careful analysis of proposed emissions trade-offs.

Greenhouse gas credits trade versus biomass trade – weighing (Workshop Summary)

NARCIS (Netherlands)

Junginger, H.M.; Faaij, A.P.C.; Robertson, K.; Woes-Gallasch, S.; Schlamadinger, B.

2006-01-01

A workshop entitled ‘Greenhouse gas credits trade versus biomass trade – weighing the benefits’, jointly organised by IEA Bioenergy Tasks 38 (GHG Balances of Biomass and Bioenergy Systems) and 40 (Sustainable International Bioenergy Trade: Securing Supply and Demand), and ENOVA, took place in

Emissions trading for climate policy - US and European perspectives

Energy Technology Data Exchange (ETDEWEB)

Bernd Hansjuergens (ed.) [Martin Luther-Universitaet Halle-Wittenburg (Germany)

2005-07-01

The 1997 Kyoto Conference introduced emissions trading as a new policy instrument for climate protection. Bringing together scholars in the fields of economics, political science and law, this book provides a description, analysis and evaluation of different aspects of emissions trading as an instrument to control greenhouse gases. The authors analyse theoretical aspects of regulatory instruments for climate policy, provide an overview of US experience with market-based instruments, draw lessons from existing trading schemes for the control of greenhouse gases, and discuss options for emissions trading in climate policy. They also highlight the background of climate policy and instrument choice in the US and Europe and of the emerging new systems in Europe, particularly the new EU's directive for a CO{sub 2} emissions trading system. 8 figs., 15 tabs.

Simulating greenhouse gas (GHG) allowance cost and GHG emission reduction in Western Europe

International Nuclear Information System (INIS)

Delarue, Erik; Lamberts, Hans; D'haeseleer, William

2007-01-01

Due to the growing concern for global warming, the EU25 have implemented the European Union Greenhouse Gas Emission Trading Scheme (EU ETS). In the first trading period (2005-2007), part of the targeted GHG emission reductions presumably will have to result from a switch from coal fired electricity generation to gas fired electricity generation. It is possible to calculate the allowance cost necessary to switch a certain coal fired plant with a certain gas fired plant in the merit order. The allowance cost obtained is a so called switching point. When comparing historic European Union Allowance (EUA) prices (2005) with the corresponding historic switching points, the EUA prices were found high enough to cause a certain switch in the summer season. This finding leads to the use of switching points in establishing allowance cost profiles for several scenarios. A variable gas price profile is used in the simulation tool E-Simulate to simulate electricity generation and related GHG emissions in an eight zonal model representing Western Europe. Several GHG allowance cost profile scenarios are examined. For each scenario, electricity generation in the considered countries is clarified. The focus however lies on the GHG emission reduction potentials. These potentials are addressed for each scenario

EU Emissions Trading Scheme and Investments in the power sector

Energy Technology Data Exchange (ETDEWEB)

Sapienza, M.D.; Stefanoni, S.

2007-07-01

How environmental regulation affects electricity players' investment decisions? Should policy makers look beyond for alternative mechanisms - such as energy efficiency, capture and storage of carbon dioxide, and incentives for renewables - to fulfill the environmental objectives set by Kyoto Protocol? This paper suggests - through a Real Option approach - how the efficacy of the EU Emission Trading Scheme on technological innovation, emissions reduction and energy price dynamics, is strongly affected by the 'hysteresis' emerging from the capital budgeting process of main utilities. As a matter of fact, long-term substitutions between coal-fired units and Combined Cycle Gas Turbine plants production only take place under quite restrictive conditions. (auth)

Emissions trading and the climate change levy

International Nuclear Information System (INIS)

Connett, Richard

2000-01-01

This paper discusses the flexible mechanisms established in the Kyoto Protocol of the UN Framework on Climate Change focussing on the mechanism whereby countries achieving their target for reducing the emissions of greenhouse gases can trade their excess to countries having difficulty achieving their target. UK measures to meet their commitment, the UK government's proposed climate change levy on the use of energy, negotiated agreements, emissions trading, and the nature, supply and trading of permits are examined. Compatibility with international agreements and the Integrated Pollution Prevention and Control (IPPC) Directive, monitoring, and penalties are considered

Frameworks for comparing emissions associated with production, consumption, and international trade.

Science.gov (United States)

Kanemoto, Keiichiro; Lenzen, Manfred; Peters, Glen P; Moran, Daniel D; Geschke, Arne

2012-01-03

While the problem of climate change is being perceived as increasingly urgent, decision-makers struggle to agree on the distribution of responsibility across countries. In particular, representatives from countries hosting emissions-intensive exporting industries have argued that the importers of emissions-intensive goods should bear the responsibility, and ensuing penalties. Indeed, international trade and carbon leakage appear to play an increasingly important role in the carbon emissions debate. However, definitions of quantities describing the embodiment of carbon emissions in internationally traded products, and their measurement, have to be sufficiently robust before being able to underpin global policy. In this paper we critically examine a number of emissions accounting concepts, examine whether the ensuing carbon balances are compatible with monetary trade balances, discuss their different interpretations, and highlight implications for policy. In particular, we compare the emissions embodied in bilateral trade (EEBT) method which considers total trade flows with domestic emission intensities, with the multi-regional input-output (MRIO) method which considers trade only into final consumption with global emission intensities. If consumption-based emissions of different countries were to be compared, we would suggest an MRIO approach because of the global emissions coverage inherent in this method. If trade-adjusted emission inventories were to be compared, we would suggest an EEBT approach due to the consistency with a monetary trade balance.

EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes

OpenAIRE

Thomas Eichner; Rüdiger Pethig

2009-01-01

The European Union fulfills its emissions reductions commitments by means of an emissions trading scheme covering some part of each member state’s economy and by national emissions control in the rest of their economies. The member states also levy energy/emissions taxes overlapping with the trading scheme. Restricting our focus on cost-effective policies, this paper investigates the distributive consequences of increasing the overlapping emissions tax that is uniform across countries. For ...

NOx emissions trading: Precursor to future growth

International Nuclear Information System (INIS)

Colella, A.

1993-01-01

Title I of the Clean Air Act Amendments (CAAA) of 1990 specified the framework for enhanced regulation in ozone non-attainment areas with increasingly stringent requirements dependent on the area classification - marginal, moderate, serious, severe or extreme. Before the CAAA were passed, only volatile organic compounds (VOCs) were regulated as precursors to ozone formation, Now, by statute, emissions of nitrogen oxides (NO x ) are also regulated as ozone precursor. Under the CAAA, new sources and modifications of existing sources are subject to Title I permitting requirements in ozone non-attainment areas if emissions of NO x and/or VOCs exceed certain triggering levels. For many new or facility expansion projects, especially power generation, the NO x thresholds are easily exceeded thus triggering Title I non-attainment new source review which requires application of control technology to new equipment which results in the Lowest Achievable Emission Rate (LAER), and securing emission reductions either internally or from other major sources to offset the increased emission from the new or modified source. The selection of a LAER technology is generally within an applicant's control. An applicant can determine up-front the engineering and cost considerations associated with LAER technology is assessing a project's viability. However, without a clear source of emission offsets of a means to secure them, assessing project viability could be difficult if not impossible. No available emission offsets means no industrial growth. For sources of NO x undergoing Title I new source review, a regional or state banking system that facilitates NO x emissions trading is needed as a precursor to future growth. This paper presents an overview of EPA's Emissions Trading Policy and Title I new source review offset provisions. Industry's concerns about emissions trading and recommendations for future trading programs are presented

Presentation of the information report on the greenhouse gas emission trading scheme

International Nuclear Information System (INIS)

2010-01-01

This document reports the hearing during which the results of an investigation on European Union Emission Trading Scheme (ETS) have been commented. The author of this investigation briefly describes the scheme, how it has been implemented. He outlines some of its weaknesses and discusses how it could be improved, notably by extending it to different sectors, for example the air transport sector. He also outlines how this European Union scheme could be an example for the rest of the world. The author and the Commission members then discuss several aspects: the origins of CO 2 emissions and how to take them into account, the international negotiations and the positions of China or India, the taxing possibilities, and the fact that the nuclear energy does not award credits

Emissions trading in transition economies: the link between international and domestic policy

International Nuclear Information System (INIS)

Evans, M.

2003-01-01

International emissions trading has the potential to significantly lower carbon mitigation costs and to promote environmentally friendly investment in transition economies. The design of domestic systems to complement international emissions trading will likely play a major role in emissions trading's effectiveness. This paper examines the benefits and challenges of proposed domestic systems and the related flows of emissions trading revenue in seller nations. The overwhelming majority of emissions available for sale will come from transition economies, which is why this article considers these countries as a group. Governments in countries such as Russia and Poland are interested in the potentially significant revenue they would reap from emissions trading, and some in those governments feel the money would best be used as general revenue for the government. Others argue that emissions trading should involve the private sector and other emitters in order to provide maximum incentives to reduce emissions and generate additional emissions trading revenue (the rules for international emissions trading explicitly allow this). Still others feel that special carbon mitigation funds would allow the government to maintain control yet stimulate additional emission reductions. Each policy contains its own set of challenges: stimulating further emission reductions, credibly monitoring emissions and emission reductions, or applying adequate fiscal accounting to the money flows

The feasibility of domestic CO{sub 2} emissions trading in Poland

Energy Technology Data Exchange (ETDEWEB)

Missfeldt, F. [ed.; Hauff, J.

2000-10-01

In early 2000, neither a comprehensive upstream system nor an all-encompassing downstream approach to CO{sub 2} emissions permit trading seems feasible in Poland. However, a pilot emissions trading system in the power and Combined Heat and Power (CHP) sector is thought to be a realistic option in the near future. A comprehensive upstream approach would require permits for the carbon contained in fossil fuels produced or imported in Poland. It is ruled out due to the perceived difficulties of the inclusion of the coal sector in such a system. While inclusion of the gas sector, and especially of the oil sector, seems possible within a relatively short time, relying on an upstream approach without the coal sector is not advisable. Once the restructuring of the coal sector as well as the privatization of the gas and oil sector is advanced, an upstream approach might become an option again. A comprehensive downstream approach would regulate CO{sub 2} emissions at their source, that is mostly at point of combustion of fossil fuels. A system which includes industry, households and transport can be assumed to be infeasible. Instead, a 'core program' was examined, which would focus on power and heat generation as well as energy intensive industries. Such an approach was found feasible in principle. Currently, however, only the largest emitters could be easily integrated in a reliable system. Drawing the line between those included and those excluded from such a partial system requires careful analysis. Including all enterprises in the relevant sectors would require significant improvements in monitoring and reporting reliability. A pilot emissions permit trading system could be introduced in the professional power and heat sector. Here, awareness concerning the instrument was found to be high and the system could be based on monitoring requirements already required by law. Gradual inclusion of more relevant sectors and eventual combination with an upstream

The greenhouse gases emissions allowances trading in the Czech Republic

International Nuclear Information System (INIS)

Chemisinec, Igor; Marvan, Miroslav; Tuma, Jiri

2006-01-01

The energy policy of the State is very important for a state development. The aim of this policy is power energy development, which is essential for improving the quality of life and standards of people's living in every country. Unfortunately, power energy development also has a negative impact; primarily on the environment. Some possible solutions exist for reduction of the power energy negative impacts. This paper deals with reduction of greenhouse gases (GHG) emissions in the Czech Republic according to the Kyoto protocol to the United Nations Framework Convention climate change. The ultimate objective of the United Nations Framework Convention on Climate Change is to achieve stabilization of greenhouse gas concentrations in the atmosphere. The GHG emissions allowances trading as one of the instruments for stabilisation of GHG emissions is described in the paper. (authors)

Demand and supply of wood fuels in the emission trade

International Nuclear Information System (INIS)

Ranta, T.; Lahtinen, P.; Laitila, J.

2005-01-01

The emission trade according to the EU directive on greenhouse gas emission allowance started at the beginning of the year 2005. This will boost the demand for wood fuels because of the addition-al value of CO 2 neutrality compared to fossil fuels. This bulletin covers the development of the demand and supply of wood fuels from 2002 to 2010 both at a national and a provincial level. The demand and supply balance of wood fuels will be evaluated both without the effect of emission trade and when the emission trade price level is 20 euro/ton- CO 2 for emission rights in 2010. The evaluations of fuel consumption for individual boilers were made with the help of the databases of Electrowatt-Ekono Ltd. The demand for wood fuels was estimated to double by the year 2010, being almost 50 TWh. The share of forest chips of the demand was one third, i.e. 17 TWh. The supply potential was divided into forest chips and solid by-products from forest industry. Forest chip sources included small diameter wood from young forests and logging residues and stumps from re-generation felling sites. The supply potential calculations of logging residues and stump biomass were based on databases of regeneration felling stands. The biomass potential from small diamreter wood was evaluated on the basis of field measurements of NFI 8 and 9 at a provincial level and multi-source data at a municipal level. In 2010, the supply potential of by-products was estimated to be 28 TWh of which 11 TWh was marketable out-side of the internal use of forest industry. Correspondingly, the theoretical potential of forest chips was estimated to be 51 TWh and the techno-economical potential 24 TWh. As a result of the regional optimization model, the energy use of wood fuels was 29 TWh, which was 59 % of the potential demand. In emission trade the demand was 33 TWh, which was 68 % of the potential demand. Regionally, the potential demand for wood fuels for energy use was higher than the supply in all provinces

Great expectations. Can international emissions trading deliver an equitable climate regime?

International Nuclear Information System (INIS)

Baumert, Kevin A.; Perkaus, James F.; Kete, Nancy

2003-01-01

Climate change equity debates tend to focus on achieving a fair and global 'allocation' of emission rights among countries. Allocation proposals typically envision, if implicitly, two purposes for international emissions trading. First, trading is expected to serve as a cost-effective means of promoting compliance with emissions targets. Second, trading is posited as a means to generate financial transfers, typically from industrialized to transitioning and developing countries. This article investigates the common assumption that international emissions trading will effectively serve both of these purposes. We conclude that the two purposes might not be mutually supportive, and that efforts to use international emissions trading as a financial transfer mechanism may potentially undermine cost-effectiveness goals. International emissions trading on a global scale would create new risks in terms of both cost-effectiveness and environmental performance, some of which will be challenging to manage. In particular, uncertainties over market prices and trading eligibility, coupled with the costs of participation, may together be the Achilles heel of some allocation proposals that entail large financial transfers from industrialized to developing countries. Any proposal for an 'equitable' allocation of emission allowances, we conclude, must be cognizant of the risks and costs implied by a reliance on international emissions trading. We offer some suggestions to this end

Study of atmospheric emission trading programs in the United States

International Nuclear Information System (INIS)

1991-01-01

A detailed review and evaluation was conducted of federal and state atmospheric emission trading programs in the USA to identify the factors critical to a successful program. A preliminary assessment was also made of the feasibility of such a program for NOx and volatile organic compounds (VOC) in the lower Fraser Valley in British Columbia. To date, experience in the USA with atmospheric emissions trading has primarily involved trades of emission reduction credits pursuant to the 1977 Clean Air Act amendments. Most trades occur under netting provisions which allow expansion of an existing plant without triggering the stringent new-source review process. Six case studies of emissions trading are described from jurisdictions in California, New Jersey, and Kentucky and from the national SO 2 allowance trading program. Estimates of cost savings achieved by emissions trading are provided, and factors critical to a successful program are summarized. These factors include clearly defined goals, participation proportional to problem contribution, an emissions inventory of satisfactory quality, a comprehensive permit system, a credible enforcement threat, efficient and predictable administration, location of the program in an economic growth area, and support by those affected by the program. In the Fraser Valley, it is concluded that either an emissions reduction credit or an allowance trading system is feasible for both NOx and VOC, and recommendations are given for implementation of such a program based on the factors determined above. 1 fig., 8 tabs

A Study on emission and reduction policy of greenhouse gas in Korea - a positive analysis using CGE (Computable General Equilibrium Model) model

Energy Technology Data Exchange (ETDEWEB)

Cho, Gyeong Lyeob; Kwon, Tae Gyu [Korea Energy Economics Institute, Euiwang (Korea)

1999-01-01

The present situation and characters of greenhouse gas emission in Korea was reviewed and then the theoretical analysis on pros and cons about emissions trading system and carbon tax, and estimation of reduction cost and loss of GDP using GDP model to reduce greenhouse gas was discussed. Finally a ripple effect of carbon tax and emissions trading system on balance of international payments and output per each industry was reviewed. 24 refs., 34 Figs., 30 tabs.

CO2 emission costs and Gas/Coal competition for power production

International Nuclear Information System (INIS)

Santi, Federico

2005-01-01

This paper demonstrates how a CO 2 emission reduction programme can change the competition between the two power production technologies which will probably dominate the future of the Italian power industry: the coal fired USC steam power plant and the natural gas fired CCGT power plant. An economic value of the CO 2 emission is calculated, in order to make the short-run-marginal-cost (or the long-run-marginal-cost). equal for both technologies, under a CO 2 emission trading scheme and following a single-plant specific CO 2 emission homogenizing approach [it

An emerging equilibrium in the EU emissions trading scheme

International Nuclear Information System (INIS)

Bredin, Don; Muckley, Cal

2011-01-01

The European Union's Emissions Trading Scheme (ETS) is the key policy instrument of the European Commission's Climate Change Program aimed at reducing greenhouse gas emissions to eight percent below 1990 levels by 2012. A critically important element of the EU ETS is the establishment of a market determined price for EU allowances. This article examines the extent to which several theoretically founded factors including, economic growth, energy prices and weather conditions determine the expected prices of the European Union CO 2 allowances during the 2005 through to the 2009 period. The novel aspect of our study is that we examine heavily traded futures instruments that have an expiry date in Phase 2 of the EU ETS. Our study adopts both static and recursive versions of the Johansen multivariate cointegration likelihood ratio test as well as a variation on this test with a view to controlling for time varying volatility effects. Our results are indicative of a new pricing regime emerging in Phase 2 and point to a maturing market driven by the fundamentals. These results are valuable both for traders of EU allowances and for those policy makers seeking to improve the design of the European Union ETS.

Sectoral and regional expansion of emissions trading

Energy Technology Data Exchange (ETDEWEB)

Boehringer, Christoph; Bouwe, Dijkstra; Rosendahl, Knut Einar

2011-07-01

We consider an international emissions trading scheme with partial sectoral and regional coverage. Sectoral and regional expansion of the trading scheme is beneficial in aggregate, but not necessarily for individual countries. We simulate international CO{sub 2} emission quota markets using marginal abatement cost functions and the Copenhagen 2020 climate policy targets for selected countries that strategically allocate emissions in a bid to manipulate the quota price. Quota exporters and importers generally have conflicting interests about admitting more countries to the trading coalition, and our results indicate that some countries may lose substantially when the coalition expands in terms of new countries. For a given coalition, expanding sectoral coverage makes most countries better off, but some countries (notably the USA and Russia) may lose out due to loss of strategic advantages. In general, exporters tend to have stronger strategic power than importers.(Author)

Impact of trade in emission reduction credits on solar projects

International Nuclear Information System (INIS)

Kulkarni, P.

1993-01-01

Since the amendment of the Clean Air Act in 1990, the possibility of trading in Emission Reduction Credits has been looked upon as a strategy for improving the economic feasibility of solar projects. This paper discusses developments towards such a market and reviews current and proposed emission trading practices. The paper analyzes how the current characteristics of the market help or hinder the trading of credits generated by solar projects, and suggests possible solutions. Emission credits from four different solar projects and their trading potentials are presented

Implementation of a european directive establishing a negotiable CO2 emissions trading scheme

International Nuclear Information System (INIS)

Coussy, P.

2003-01-01

Approved on July 22, 2003, European Directive 87/2003/EC establishes a scheme for the trading of greenhouse gas emissions allowances. Before the market comes into effect on January 1, 2005, industrialists will have to account for a new financial asset in planning development strategy: the CO 2 allowance. Each Member State is currently developing a climate plan that includes the allocation of CO 2 emissions allowances to industrial installations. It will not be possible to exceed these allowances without incurring a financial penalty. (author)

CO{sub 2} emissions trading. A study on the conditions and necessities for starting national emissions trading; CO{sub 2} -paeaestoekauppa. Selvitys kansallisen paeaestoekaupan kaeyttoeoenoton edellytyksistae sekae siinae huomioitavista seikoista

Energy Technology Data Exchange (ETDEWEB)

Maeaettae, K.

2000-02-01

This study analyses the applicability of emissions trading as a means of steering climate policy. Attention is paid to limiting carbon dioxide emissions in particular at national level. The model used in the implementation of national CO{sub 2} emissions trading are the emissions trading schemes applied in the United States, especially the trading in sulphur dioxide allowances, included in their Acid Rain Programme. All schemes applied until now are studied in order to specify what kinds of hindrances there could be to the well-functioning of emissions trading and also to map out what kinds of institutional innovations have been developed in practice to improve emissions trading. This study excludes the joint implementation procedure and the clean development mechanism. In fact, international control related to climate policy has been left to minor attention in other respects, too. In addition to the subjects mentioned above, this study also describes the terminological and legal framework within which emissions trading is to be practised. In this connection, it has been considered necessary to deal with technical legislative details, since, as it has been stated in relation to emissions trading, 'the devil is likely to be in details'. Thus this study discusses, among others, issues pertaining to the construing of. the criterion for an emission quota, i.e. what is actually traded in emissions trading, how the emission quotas and rights can be used (e.g. the emission deposit and emission derivatives), what kinds of provisions should be laid down on eligibility to emissions trading or on who can participate in emissions trading, what should be the validity period of an emission right, what would be the most appropriate way to organise the administrative control of emissions trading, and what kinds of sanctions should be laid down for infringements related to emissions trading. This study has been carried out by examining mainly U.S. literature on this

Emissions trading with and without a cap

International Nuclear Information System (INIS)

Nentjes, A.; Boom, J.T.

2000-01-01

The authors try to reduce the confusion about all the proposals for the design of flexibility mechanisms with respect to the Kyoto Protocol and following Conventions of Parties (CoP) by sketching consistent views of International Emission Trading (IET) and Joint Implementation (JI). It is argued that environmentalists should change their views since it is feasible to design international emission trading in a way that should make it the favourite instrument of environmental organizations

77 FR 21748 - Oil and Gas Trade Mission to Israel

Science.gov (United States)

2012-04-11

... DEPARTMENT OF COMMERCE International Trade Administration Oil and Gas Trade Mission to Israel... Foreign Commercial Service (CS), is organizing an Executive-led Oil and Gas Trade Mission to Israel.... The purpose of the mission is to introduce U.S. firms to Israel's rapidly expanding oil and gas market...

Cooperative Emissions Trading Game: International Permit Market Dominated by Buyers.

Science.gov (United States)

Honjo, Keita

2015-01-01

Rapid reduction of anthropogenic greenhouse gas emissions is required to mitigate disastrous impacts of climate change. The Kyoto Protocol introduced international emissions trading (IET) to accelerate the reduction of carbon dioxide (CO2) emissions. The IET controls CO2 emissions through the allocation of marketable emission permits to sovereign countries. The costs for acquiring additional permits provide buyers with an incentive to reduce their CO2 emissions. However, permit price has declined to a low level during the first commitment period (CP1). The downward trend in permit price is attributed to deficiencies of the Kyoto Protocol: weak compliance enforcement, the generous allocation of permits to transition economies (hot air), and the withdrawal of the US. These deficiencies created a buyer's market dominated by price-making buyers. In this paper, I develop a coalitional game of the IET, and demonstrate that permit buyers have dominant bargaining power. In my model, called cooperative emissions trading (CET) game, a buyer purchases permits from sellers only if the buyer forms a coalition with the sellers. Permit price is determined by bargaining among the coalition members. I evaluated the demand-side and supply-side bargaining power (DBP and SBP) using Shapley value, and obtained the following results: (1) Permit price is given by the product of the buyer's willingness-to-pay and the SBP (= 1 - DBP). (2) The DBP is greater than or equal to the SBP. These results indicate that buyers can suppress permit price to low levels through bargaining. The deficiencies of the Kyoto Protocol enhance the DBP, and contribute to the demand-side dominance in the international permit market.

Emissions trading and competitiveness: pros and cons of relative and absolute schemes

International Nuclear Information System (INIS)

Kuik, Onno; Mulder, Machiel

2004-01-01

Emissions trading is a hot issue. At national as well as supranational levels, proposals for introduction of emissions trading schemes have been made. This paper assesses alternative emissions trading schemes at domestic level: (1) schemes where the total level of emissions is fixed (absolute cap-and-trade), (2) schemes where the allowable level of emissions per firm is related to some firm-specific indicator (relative cap-and-trade), and (3) mixed schemes which combine elements of the above alternatives. We present a quantitative assessment of these alternatives for climate change policy in the Netherlands. It is concluded that while relative cap-and-trade would avoid negative effects on competitiveness, it would not reduce emissions at the lowest costs. Besides, the addition of a trade system to existing relative standards does not result in additional emission reduction; it should be combined with other policy measures, such as energy taxes, in order to realise further reduction. Absolute cap-and-trade leads to efficient emissions reduction, but, implemented at the national level, its overall macroeconomic costs may be significant. The mixed scheme has as drawback that it treats firms unequal, which leads to high administrative costs. We conclude that none of the trading schemes is an advisable instrument for domestic climate policy

Mobil emission reduction credits for natural gas vehicle programs

International Nuclear Information System (INIS)

Baker, G.F.

1993-01-01

Since the passage of the Clean Air Act Amendments in 1990, there has been increasing interest among regulators and business interests alike in innovative, market-based strategies to air quality control. In particular, larger metropolitan areas have begun to examine marketable emission reduction credit (ERC) programs. These programs limit the total allowable emissions in a non-attainment area, allocate these emission open-quotes creditsclose quotes among sources in the region, and allow the sources to redistribute their allowances through trading. This approach provides for the most cost-effective distribution of control burdens among affected sources, taking advantage of the differences in marginal control costs. Some control measures applied to mobile sources may be significantly less expensive than those applied to stationary sources, making mobile sources an excellent candidate for inclusion in an ERC program. However, there are several potential problems involving quantification, enforcement, and credit trading issues that hinder the development of mobile source ERC programs. This paper will evaluate those obstacles and discuss how they are being addressed in a Natural Gas Vehicle (NGV) program currently under development for the Houston ozone non-attainment area. Specifically, the study will outline the credit validation (i.e., quantification) procedure, including baseline emission determination and emission testing for each NGV in the program. In addition, the study will describe the vehicle/fuel consumption tracking system, and discuss issues related to credit trading with stationary sources. Finally, observations are made concerning the applicability of mobile ERC programs for other emission control measures such as old vehicle scrappage and vehicle Inspection and Maintenance programs

Does trade matter for carbon emissions in OECD countries? Evidence from a new trade openness measure.

Science.gov (United States)

Gozgor, Giray

2017-12-01

This paper analyzes the impacts of the per capita income, the per capita energy consumption, and the trade openness on the level of per capita carbon emissions in the panel dataset of 35 Organization for Economic Cooperation and Development (OECD) countries over the period 1960-2013. Along with the nominal trade openness, the paper uses a different trade openness measure, so called as the "trade potential index" (TPI). To the best of our knowledge, this is the first paper that uses the TPI in the empirical environmental Kuznets curve (EKC) hypothesis literature. The paper finds that the EKC hypothesis is valid and there is an "inverted-U" relationship between the income and the carbon emissions. In addition, the paper observes that there is a positive effect of the energy consumption on the carbon emissions. Furthermore, the results indicate that both trade openness measures are negatively associated with the carbon emissions in the OECD countries in the long run.

Policy design and performance of emissions trading markets: an adaptive agent-based analysis.

Science.gov (United States)

Bing, Zhang; Qinqin, Yu; Jun, Bi

2010-08-01

Emissions trading is considered to be a cost-effective environmental economic instrument for pollution control. However, the pilot emissions trading programs in China have failed to bring remarkable success in the campaign for pollution control. The policy design of an emissions trading program is found to have a decisive impact on its performance. In this study, an artificial market for sulfur dioxide (SO2) emissions trading applying the agent-based model was constructed. The performance of the Jiangsu SO2 emissions trading market under different policy design scenario was also examined. Results show that the market efficiency of emissions trading is significantly affected by policy design and existing policies. China's coal-electricity price system is the principal factor influencing the performance of the SO2 emissions trading market. Transaction costs would also reduce market efficiency. In addition, current-level emissions discharge fee/tax and banking mechanisms do not distinctly affect policy performance. Thus, applying emissions trading in emission control in China should consider policy design and interaction with other existing policies.

CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA.

Science.gov (United States)

Dogan, Eyup; Turkekul, Berna

2016-01-01

This study aims to investigate the relationship between carbon dioxide (CO2) emissions, energy consumption, real output (GDP), the square of real output (GDP(2)), trade openness, urbanization, and financial development in the USA for the period 1960-2010. The bounds testing for cointegration indicates that the analyzed variables are cointegrated. In the long run, energy consumption and urbanization increase environmental degradation while financial development has no effect on it, and trade leads to environmental improvements. In addition, this study does not support the validity of the environmental Kuznets curve (EKC) hypothesis for the USA because real output leads to environmental improvements while GDP(2) increases the levels of gas emissions. The results from the Granger causality test show that there is bidirectional causality between CO2 and GDP, CO2 and energy consumption, CO2 and urbanization, GDP and urbanization, and GDP and trade openness while no causality is determined between CO2 and trade openness, and gas emissions and financial development. In addition, we have enough evidence to support one-way causality running from GDP to energy consumption, from financial development to output, and from urbanization to financial development. In light of the long-run estimates and the Granger causality analysis, the US government should take into account the importance of trade openness, urbanization, and financial development in controlling for the levels of GDP and pollution. Moreover, it should be noted that the development of efficient energy policies likely contributes to lower CO2 emissions without harming real output.

Emissions trading and green power : profitability for buyers and sellers

International Nuclear Information System (INIS)

Haites, E.

1998-01-01

Proposed features of the competitive electricity market in Ontario were reviewed. The speaker predicted that demand for renewable energy in Ontario's competitive electricity market will be affected by green power, emissions trading, labelling, and renewables portfolio standard. Under current regulations retailers can charge customers a premium for purchasing electricity generated by 'green' sources. The existing limits on emissions of sulphur dioxide, nitrogen oxides and carbon dioxides will remain in place, but an emissions cap and trading program for all Ontario-based generation is an option to consider. Ontario's Market Design Committee (MDC) has recommended the implementation of emissions trading for electricity-related air pollutants for all generators located in Ontario. The complex mechanics of emission trading are explained. The MDC recommendation of the use of standard labels to disclose the mix of energy sources used by sellers of electricity and their associated pollution emissions are also summarized

National Framework for GHG Emission Trading in Russia

International Nuclear Information System (INIS)

Kotov, V.; Nikitina, E.

2003-01-01

If Russia ratifies the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), domestic implementation of its international commitments under this international regime will require special national responses, i.e. institutional capacity building for application of its mechanisms. The Kyoto Protocol and its mechanisms, particularly, international emission trading (IET) and joint implementation (JI), mark a turning point, with opportunities for Russia to benefit from an economic and environmental standpoint from international cooperation. Russia might wish to sell to other parties a surplus in its assigned amount for the first commitment period in 2008-2012, as according to existing estimates its GHG emissions are expected to be below their 1990 base level. In order to participate in international emission trading, Russia has to meet several international requirements, including providing national inventory and reporting and establishing national registry compatible with the standard international format. It is to establish a domestic institutional regime defining laws and rules of behaviour for its participants, the administrative frameworks, and designing major schemes for domestic emission trading programme. Russia's emission trading system is not formed yet. This is a challenging innovation for Russia, as in its previous environmental management practices it did not have any experience in domestic emission trading with other air pollutants. The paper examines the key elements suggested in a number of existing proposals, assessments, and approaches of the government, parliamentarians and non-governmental experts for its institutional design which is at the core of ongoing climate policy debates in the country. These approaches and practical suggestions define the current state-of-the-art in domestic emission trading regime formation and channel the paths of its institutional development in the future. This paper analyses peculiarities

Assessment of greenhouse gas emissions from natural gas

International Nuclear Information System (INIS)

Anon

2000-01-01

The study, 'Assesment of greenhouse gas emission from natural gas' by independent consultants Energetics Pty Ltd, shows that natural gas has significantly fewer greenhouses gas emissions than either black or brown cola for the defined life cycle stages. The life cycle emissions from natural gas use by an Australian Major User are approximately 50% less than the emissions from Victorian brown coal and approximately 38% less than the emissions from Australian average black coal. Australian Best Practice gas fired electricity generation is estimated to emit between 514 and 658 kg CO 2 e/MWh. By comparison, Australian Best Practice coal-fired electricity generation is estimated to emit between 907 and 1,246 kg CO 2 e/MWh for black and brown coal respectively. Greenhouse gas emissions from Australian Best Practice gas-fired electricity generation using combined cycle gas turbines (including full fuel cycle emissions) vary from 41% to 46% of the emissions from brown coal-fired electricity generation and 57% to 64% of emissions from black coal-fired electricity generation. Greenhouse gas emissions from direct gas supply water heating range from 1,470 to 2,042 kilograms per annum. This compares with emissions of 1,922 to 2,499 kg for electric heating from gas-fired electricity generation and 3,975 to 5,393 kg for coal-fired electricity generation. The implications for greenhouse policy nationally are also discussed, emphasising the need to review national energy policy, currently tied to 'fuel neutrality' doctrine

Internalizing carbon costs in electricity markets: Using certificates in a load-based emissions trading scheme

International Nuclear Information System (INIS)

Gillenwater, Michael; Breidenich, Clare

2009-01-01

Several western states have considered developing a regulatory approach to reduce greenhouse gas (GHG) emissions from the electric power industry, referred to as a load-based (LB) cap-and-trade scheme. A LB approach differs from the traditional source-based (SB) cap-and-trade approach in that the emission reduction obligation is placed upon Load Serving Entities (LSEs), rather than electric generators. The LB approach can potentially reduce the problem of emissions leakage, relative to a SB system. For any of these proposed LB schemes to be effective, they must be compatible with modern, and increasingly competitive, wholesale electricity markets. LSE's are unlikely to know the emissions associated with their power purchases. Therefore, a key challenge for a LB scheme is how to assign emissions to each LSE. This paper discusses the problems with one model for assigning emissions under a LB scheme and proposes an alternative, using unbundled Generation Emission Attribute Certificates. By providing a mechanism to internalize an emissions price signal at the generator dispatch level, the tradable certificate model addresses both these problems and provides incentives identical to a SB scheme

Economic rationale for an emission allowance trading program

International Nuclear Information System (INIS)

Anon.

1992-01-01

The assumption behind the economic model of allowance trading is that managers of firms are better at solving pollution abatement problems than government overseers. This is because firms know more than an environmental regulator about their own operations and because the profit motive, rather than direct government mandate of compliance decisions, may be more effective at minimizing emission control costs. The allowance trading program in the CAAA is designed to provide firms with an incentive to make good choices about how to reduce emissions by allowing the firm to reduce compliance cost and profit from trading. This chapter discusses the benefits of allowance trading and summarizes the economic literature on tradable pollution rights. 17 refs., 2 figs

Eu emission trading scheme and its implications on energy sector of Lithuania

International Nuclear Information System (INIS)

Streimikiene, D.; Mikalauskiene, A.

2004-01-01

The main objectives of the article are to analyse the theoretical principles of emission trading and to emphasize the main features and requirements of EU emission trading scheme. The goal of the article to assess the impact of GHG emission trading on economy and GHG emission reduction in EU and Lithuania

The impact of CO{sub 2} emissions trading on the European transport sector

Energy Technology Data Exchange (ETDEWEB)

Kaageson, Per

2001-07-01

The objective of this report is to analyse how a common European scheme for CO{sub 2} emissions trading covering all sectors of society would affect the transport sector. Transport externalities other than CO{sub 2} are assumed to be internalised by kilometer charging. This means road fuels will no longer be subject to taxation. The European Union's commitment under the 1997 Kyoto Protocol can be reached at a marginal abatement cost around 65 Euro per tonne of CO{sub 2} in a case where emissions trading replaces all current taxes on fossil fuels. In a case where emissions trading is supplementary to today's energy and carbon taxes, the current average taxation (45-50 Euro per tonne CO{sub 2}) and the shadow price of the emission permits (33 Euro per tonne) would together give a total marginal abatement cost around 80 Euro per tonne Of CO{sub 2}. Having to buy emission permits would significantly raise the cost of fuel and electricity used in rail, aviation and short sea shipping, as these modes are currently not taxed at all. The resulting long-term (2025) improvement in specific energy efficiency is estimated at around 25 per cent compared to trend for rail and 20 and 40 per cent respectively for aviation and sea transport. A combination of CO{sub 2} emissions trading and km charging would moderately raise the variable cost of driving a gasoline car. The cost of using diesel vehicles would rise considerably in most Member States. Annual mileage per car would therefore decline somewhat. The fuel, however, would become cheaper than today (especially gasoline) and this would reduce the incentive to buy fuel-efficient vehicles. The reform would thus hamper the introduction of new, more efficient, technologies that might be needed for meeting more long-term commitments. Emissions trading would not encourage the introduction of biofuels in road transport. The incremental cost of producing ethanol or RME is much too high and cannot be expected to fall to the

Community system updating and extension concerning greenhouse gas emissions duties trading; Actualizacion y ampliacion del regimen comunitario de comercio de derechos de emision de gases de efecto invernadero

Energy Technology Data Exchange (ETDEWEB)

Arrieta-Langarika, I.

2010-07-01

Approving 29/2009/CE Directive, that amends Directive 2003/87/EC, relating to a trading system for allowances of greenhouse gas emissions in the Community, the European Union wants to improve this system, and, in that way, providing an appropriate tool for achieving the emissions reduction targets, set for 2020: in particular, reducing the emissions of carbon dioxide (CO{sub 2}) in a 20% compared to 1990 levels. Recognizing the virtues of this system as an innovative tool for reducing emissions, it should be harmonized through the use of common standards that ensure equal conditions of the facilities affected and their update, among others, increasing their scope and establishing a system of re-allocation to reduce emissions. At the same time, the regulation adopted by the EU should not address possible competition difficulties, that may arise for the industries affected by this emission trading system, more specifically, the problem of carbon leakage: the phenomenon refers to the risk that European industries must move outside the EU for not being able to cope with competition from other countries with less stringent limitations on this matter. In any case, the regime established by Directive 29/2009/CE is subject to possible changes in function of international countries might conclude. (Author) 8 refs.

The Political Economy of International Emission Trading Scheme Choice: Empirical Evidence

DEFF Research Database (Denmark)

Boom, J.T.; Svendsen, Gert Tinggaard

2000-01-01

The Kyoto Protocol allows emissions trading. It does however not specify how this is to take place and the discussion on the design of an emissions trading scheme is ongoing. In this paper, we give some empirical evidence on the preference of industry and environmental organizations for internati...... for international emissions trading scheme. Since they may have an influence on decision makers, their opinion is important. Our conclusion is that both industry and environmental organizations prefer credit trading, although for widely different reasons....

Building Trust in Emissions Reporting. Global Trends in Emissions Trading Schemes

Energy Technology Data Exchange (ETDEWEB)

Kruijd, J.; Walrecht, A.; Laseur, J.; Schoolderman, H.; Gledhill, R.

2007-02-15

This report highlights the key characteristics of the world's main emission trading schemes, presents a new vision for compliance in emissions trading and calls for global action to develop this. Climate change is now at the top of the political and business agenda. Al Gore's 'An Inconvenient Truth', the Stern Review and the now almost daily press coverage of climate change science and impacts have engaged many of the global leaders in government and in business. Emissions trading is increasingly seen as a central plank in the response to climate change. But market mechanisms like this depend on trust and confidence. Any widespread or systemic failure, as a result of deficient monitoring and reporting, flawed compliance processes or fraud, could undermine confidence in markets and regulation and jeopardise the crucial policy goals that they are designed to address. Key to this trust are the three central criteria of transparency, accountability and integrity. The PricewaterhouseCoopers report looks at how the patchwork of trading schemes that are emerging around the globe stacks up against these criteria. Despite good intentions across the board, the general picture is one of new and immature markets, inconsistent and complex compliance frameworks and risk. PricewaterhouseCoopers make the case for urgent and coordinated action to develop a framework of generally accepted principles and practice that will underpin trust and efficiency in these new markets - in effect, a new Global Emissions Compliance Language.

Building Trust in Emissions Reporting. Global Trends in Emissions Trading Schemes

International Nuclear Information System (INIS)

Kruijd, J.; Walrecht, A.; Laseur, J.; Schoolderman, H.; Gledhill, R.

2007-02-01

This report highlights the key characteristics of the world's main emission trading schemes, presents a new vision for compliance in emissions trading and calls for global action to develop this. Climate change is now at the top of the political and business agenda. Al Gore's 'An Inconvenient Truth', the Stern Review and the now almost daily press coverage of climate change science and impacts have engaged many of the global leaders in government and in business. Emissions trading is increasingly seen as a central plank in the response to climate change. But market mechanisms like this depend on trust and confidence. Any widespread or systemic failure, as a result of deficient monitoring and reporting, flawed compliance processes or fraud, could undermine confidence in markets and regulation and jeopardise the crucial policy goals that they are designed to address. Key to this trust are the three central criteria of transparency, accountability and integrity. The PricewaterhouseCoopers report looks at how the patchwork of trading schemes that are emerging around the globe stacks up against these criteria. Despite good intentions across the board, the general picture is one of new and immature markets, inconsistent and complex compliance frameworks and risk. PricewaterhouseCoopers make the case for urgent and coordinated action to develop a framework of generally accepted principles and practice that will underpin trust and efficiency in these new markets - in effect, a new Global Emissions Compliance Language

Organic farmers may gain from Green House Gas trade

DEFF Research Database (Denmark)

Svendsen, Gert Tinggaard

2009-01-01

Farmers may earn money from participating in the ongoing greenhouse gas (GHG) trade system under the Kyoto agreement.......Farmers may earn money from participating in the ongoing greenhouse gas (GHG) trade system under the Kyoto agreement....

Developments in the emissions trading market 2009; Utvecklingen paa utslaeppsraettsmarknaden 2009

Energy Technology Data Exchange (ETDEWEB)

Bohnstedt, Sophie; Karlberg, Marie; Myrman, Johanna

2010-07-01

The Energy Agency has analyzed the development of emissions trading within the EU and globally in 2009. The analysis relates to larger events which mainly affected the prices and traded volumes during the year. The analysis includes the market for European emissions, markets for the project-based mechanisms, development of trade with the assigned emission units (AAUs), the unregulated market and developments in other trading in the world. The report is based on existing studies and monitoring of markets development during January to November 2009

Testing the theory of emissions trading. Experimental evidence on alternative mechanisms for global carbon trading

International Nuclear Information System (INIS)

Klaassen, Ger; Nentjes, Andries; Smith, Mark

2005-01-01

Simulation models and theory prove that emission trading converges to market equilibrium. This paper sets out to test these results using experimental economics. Three experiments are conducted for the six largest carbon emitting industrialized regions. Two experiments use auctions, the first a single bid auction and the second a Walrasian auction. The third relies on bilateral, sequential trading. The paper finds that, in line with the standard theory, both auctions and bilateral, sequential trading capture a significant part (88% to 99%) of the potential cost savings of emission trading. As expected from trade theory, all experiments show that the market price converges (although not fully) to the market equilibrium price. In contrast to the theory, the results also suggest that not every country might gain from trading. In both the bilateral trading experiment and the Walrasian auction, one country actually is worse off with trade. In particular bilateral, sequential trading leads to a distribution of gains significantly different from the competitive market outcome. This is due to speculative behavior, imperfect foresight and market power

Emissions Trading - An Internet site on the EU Emissions Trading Scheme (ETS); Utslappshandel - En Internetsida om handel med utslaeppsraetter inom EU

Energy Technology Data Exchange (ETDEWEB)

2009-07-01

Utslappshandel.se is a one-stop shop for overall information about the EU Emissions Trading Scheme (ETS) as applied in Sweden (the site is available in Swedish and English). It also offers a gateway to the Swedish Emissions Trading Registry (SUS), where companies report their transactions on an ongoing basis and surrender emission allowances once a year. The Swedish Energy Agency is in charge of the Swedish registry. The Swedish Environmental Protection Agency decides on the allocation of emission allowances and is responsible for following up companies' annual reporting on their CO{sub 2} emissions. The EU ETS is expected to cover installations equivalent to approximately 50 per cent of total CO{sub 2} emissions in the EU. In Sweden, it is expected to cover only 40 per cent of emissions, mainly owing to the very low level of fossil electricity production

Refunded emission taxes: A resolution to the cap-versus-tax dilemma for greenhouse gas regulation

International Nuclear Information System (INIS)

Johnson, Kenneth C.

2007-01-01

Regulatory instruments for greenhouse gas control present a policy dilemma: Market-based instruments such as cap and trade function to reduce regulatory costs; but because they provide no guarantee that costs will be reduced to acceptable levels it is infeasible to set caps at sustainable levels. Emission taxes provide cost certainty, but their comparatively high cost makes it infeasible to set tax rates at levels commensurate with sustainability goals. However, there is a straightforward solution to this dilemma: Just as cap and trade uses free allowance allocation to minimize regulatory costs, an emission tax's cost can be mitigated by refunding tax revenue in such a way that emission reduction becomes profitable. A refunded tax, like cap and trade with free allocation, would be revenue-neutral within the regulated industry. Marginal competitive incentives for commercializing emission-reducing technologies would not be diminished by the refund, and the refund could actually make it politically and economically feasible to increase the incentives by an order of magnitude. Whereas cap and trade merely caps emissions at an unsustainable level while subjecting the economy to extreme price volatility, refunded emission taxes could create a stable investment environment with sustained incentives for emission reduction over a long-term investment horizon

Monitoring, Accounting and Enforcement in Emissions Trading Regimes

International Nuclear Information System (INIS)

Peterson, S.

2003-01-01

Monitoring, accounting and enforcement have been addressed in quite a number of presentations, papers and discussions in the past four CATEP workshops. Besides drawing conclusions from the experiences with existing trading regimes, different aspects of compliance have been analysed in more detail and finally there has been a special focus on standardised accounting systems. This paper tries to summarise the diverse findings to get a comprehensive picture of what is needed to assure high compliance in emissions trading regimes and identify any specific problems. The first section focuses on real trading regimes that are all local or at most national. It describes the monitoring, accounting and enforcement systems in existing and planned trading regimes to get an idea of what such systems include and to draw conclusions from experience. One focus is on enforcement mechanisms, as different from monitoring and accounting, which are basically a question of regulation and technology, penalties and compliance are a question of choices by participants and can be analysed with analytic tools. Section 3 deals with specific monitoring, accounting and enforcement problems in international emissions trading. It describes the development of internationally standardised systems and discusses the commitment period reserve as one instrument to avoid overselling of permits in international emission trading under the Kyoto Protocol. Section 5 provides a summary and conclusion

Does trade openness affect CO2 emissions: evidence from ten newly industrialized countries?

Science.gov (United States)

Zhang, Shun; Liu, Xuyi; Bae, Junghan

2017-07-01

This paper examines whether the hypothetical environmental Kuznet curve (EKC) exists or not and investigates how trade openness affects CO 2 emissions, together with real GDP and total primary energy consumption. The study sample comprises ten newly industrialized countries (NICs-10) from 1971 to 2013. The results support the existence of hypothetical EKC and indicate that trade openness negatively and significantly affects emissions, while real GDP and energy do positive effects of emissions. Moreover, the empirical results of short-run causalities indicate feedback hypothetical linkage of real GDP and trade, unidirectional linkages from energy to emissions, and from trade to energy. The error correction terms (ECTs) reveal in the long run, feedback linkages of emissions, real GDP, and trade openness, while energy Granger causes emissions, real GDP, and trade, respectively. The study recommendations are that our policymakers should encourage and expand the trade openness in these countries, not only to restrain CO 2 emissions but also to boost their growth.

How would the gas exporting countries forum influence gas trade?

International Nuclear Information System (INIS)

Wagbara, O.N.

2007-01-01

The cleanest burning fossil fuel, today, is natural gas. While many businesses have gone global, it has remained an exception. An impending challenge facing the industry, however, is the evolution of a cartel from the 5-year-old Gas Exporting Countries Forum. How would this new organization influence the trade of gas globally? Does its existence imply a threat to the development of gas trade? The paper reviews this fairly new organization within the context of the above questions. It is mainly a comparative study of the body in relation to OPEC's historical, political and economic development. Subsequently, the author proposes probable influence options available to the Forum and the impending consequence of such actions on the market. The outcome of this study calls for further analysis and research on new issues and questions of interest. (author)

How would the gas exporting countries forum influence gas trade?

International Nuclear Information System (INIS)

Wagbara, Obindah N.

2007-01-01

The cleanest burning fossil fuel, today, is natural gas. While many businesses have gone global, it has remained an exception. An impending challenge facing the industry, however, is the evolution of a cartel from the 5-year-old Gas Exporting Countries Forum. How would this new organization influence the trade of gas globally? Does its existence imply a threat to the development of gas trade? The paper reviews this fairly new organization within the context of the above questions. It is mainly a comparative study of the body in relation to OPEC's historical, political and economic development. Subsequently, the author proposes probable influence options available to the Forum and the impending consequence of such actions on the market. The outcome of this study calls for further analysis and research on new issues and questions of interest

The Air-Carbon-Water Synergies and Trade-Offs in China's Natural Gas Industry

Science.gov (United States)

Qin, Yue

China's coal-dominated energy structure is partly responsible for its domestic air pollution, local water stress, and the global climate change. Primarily to tackle the haze issue, China has been actively promoting a nationwide coal to natural gas end-use switch. My dissertation focuses on evaluating the air quality, carbon, and water impacts and their interactions in China's natural gas industry. Chapter 2 assesses the lifecycle climate performance of China's shale gas in comparison to coal based on stage-level energy consumption and methane leakage rates. I find the mean lifecycle carbon footprint of shale gas is about 30-50% lower than that of coal under both 20 year and 100 year global warming potentials (GWP20 and GWP100). However, primarily due to large uncertainties in methane leakage, the lifecycle carbon footprint of shale gas in China could be 15-60% higher than that of coal across sectors under GWP20. Chapter 3 evaluates the air quality, human health, and the climate impacts of China's coal-based synthetic natural gas (SNG) development. Based on earlier 2020 SNG production targets, I conduct an integrated assessment to identify production technologies and end-use applications that will bring as large air quality and health benefits as possible while keeping carbon penalties as small as possible. I find that, due to inefficient and uncontrolled coal combustion in households, allocating currently available SNG to the residential sector proves to be the best SNG allocation option. Chapter 4 compares the air quality, carbon, and water impacts of China's six major gas sources under three end-use substitution scenarios, which are focused on maximizing air pollutant emission reductions, CO 2 emission reductions, and water stress index (WSI)-weighted water consumption reductions, respectively. I find striking national air-carbon/water trade-offs due to SNG, which also significantly increases water demands and carbon emissions in regions already suffering from

NOx emission trade. What is the state-of-the-art?

International Nuclear Information System (INIS)

Witkamp, J.

2003-01-01

In Leiden, Netherlands, 28 November 2002, a symposium was organized on the subject of NOx emission trade in preparation of a NOx emission trade system. In this article an overview is given of the developments so far [nl

Trading sulphur emissions under the Second Sulphur Protocol

Energy Technology Data Exchange (ETDEWEB)

Foersund, Finn R.; Naevdal, Eric

1997-07-01

Emission trading is a potent policy instrument in theoretical analyses of environmental policy. However, trading in emission quotas of non-uniformly dispersed pollutants requires that the offsetting quantities vary with location of sources. Such a system is not yet in use. The Second Sulphur Protocol for Europe makes it possible to try out a system of ``exchange rates`` through a clause allowing ``joint implementation`` of emission reductions. In this report, the authors investigate some properties of a system with exogenous exchange rates within a simultaneous trade model based on cost efficiency. Incorporation of constraints on depositions in third party countries may be necessary in order to get third party country cooperation. It is demonstrated that imposition of constraints is feasible, but it is also revealed what demands such incorporation places on the design of the institutional setting. Constraints on trade should only be introduced when the concern for the environment of the various receptors fail to be captured adequately by the calibration of the exchange rates. 16 refs., 2 figs., 3 tabs.

Border carbon adjustments: Addressing emissions embodied in trade

International Nuclear Information System (INIS)

Sakai, Marco; Barrett, John

2016-01-01

Approximately one fourth of global emissions are embodied in international trade and a significant portion flows from non-carbon-priced to carbon-priced economies. Border carbon adjustments (BCAs) figure prominently as instruments to address concerns arising from unilateral climate policy. Estimating the volume of emissions that could be potentially taxed under a BCA scheme has received little attention until now. This paper examines how a number of issues involved in the implementation of BCAs can affect their ability to cover emissions embodied in trade and thus address carbon leakage. These issues range from ensuring compliance with trade provisions and assumptions on the carbon intensity of imports, to determining which countries are included and whether intermediate and final demand are considered. Here we show that the volume of CO_2 captured by a scheme that involved all Annex B countries could be significantly reduced due to these issues, particularly by trade provisions, such as the principle of ‘best available technology’ (BAT). As a consequence, the tariff burdens faced by non-Annex B parties could dwindle considerably. These findings have important policy implications, as they question the effectiveness and practicalities of BCAs to reduce carbon leakage and alleviate competitiveness concerns, adding further arguments against their implementation. - Highlights: •We estimate the volume of emissions that could be potentially taxed by BCAs. •We study the effects of trade provisions and country and sectoral coverage on BCAs. •Trade provisions can significantly reduce the scope and effectiveness of BCAs. •Best available technology and exclusion of electricity reduce tariffs considerably. •BCAs are not optimal policy tools to address carbon leakage concerns.

Some risks related to the short-term trading of natural gas

International Nuclear Information System (INIS)

Ahmed El Hachemi Mazighi

2004-01-01

Traditionally guided by long-term contracts, the international natural gas trade is experiencing new methods of operating, based on the short term and more flexibility. Today, indeed, the existence of uncommitted quantities of natural gas, combined with gas price discrepancies among different regions of the world, gives room for the expansion of the spot-trading of gas. The main objective of this paper is to discuss three fundamental risks related to the short-term trading of natural gas: volume risk, price risk and infrastructure risk. The defenders Of globalisation argue that the transition from the long-term to the short-term trading of natural gas is mainly a question of access to gas reserves, decreasing costs of gas liquefaction, the building of liquefied natural gas (LNG) fleets and regasification facilities and third-party access to the infrastructure. This process needs to be as short as possible, so that the risks related to the transition process will disappear rapidly. On the other hand, the detractors of globalisation put the emphasis on the complexity of the gas value chain and on the fact that eliminating long- term contracts increases the risks inherent to the international natural gas business. In this paper, we try to untangle and assess the risks related to the short-term trading of natural gas. Our main conclusions are: the short-term trading of gas is far from riskless; volume risk requires stock-building in both consuming and producing countries. (author)

Some risks related to the short-term trading of natural gas

International Nuclear Information System (INIS)

Mazighi, Ahmed El Hachemi

2004-01-01

Traditionally guided by long-term contracts, the international natural gas trade is experiencing new methods of operating, based on the short term and more flexibility. Today, indeed, the existence of uncommitted quantities of natural gas, combined with gas price discrepancies among different regions of the world, gives room for the expansion of the spot-trading of gas. The main objective of this paper is to discuss three fundamental risks related to the short-term trading of natural gas: volume risk, price risk and infrastructure risk. The defenders of globalisation argue that the transition from the long-term to the short-term trading of natural gas is mainly a question of access to gas reserves, decreasing costs of gas liquefaction, the building of liquefied natural gas (LNG) fleets and regasification facilities and third-party access to the infrastructure. This process needs to be as short as possible, so that the risks related to the transition process will disappear rapidly. On the other hand, the detractors of globalisation put the emphasis on the complexity of the gas value chain and on the fact that eliminating long-term contracts increases the risks inherent to the international natural gas business. In this paper, we try to untangle and assess the risks related to the short-term trading of natural gas. Our main conclusions are: the short-term trading of gas is far from riskless; volume risk requires stock-building in both consuming and producing countries; price risk, through the high volatility for gas, induces an increase in options prices; there is no evidence to suggest that money-lenders' appetite for financing gas infrastructure projects will continue in a short-term trading system. This would be a threat to consumers' security of supply. (Author)

Forest carbon accounting methods and the consequences of forest bioenergy for national greenhouse gas emissions inventories

International Nuclear Information System (INIS)

McKechnie, Jon; Colombo, Steve; MacLean, Heather L.

2014-01-01

Highlights: • Forest carbon accounting influences the national GHG inventory impacts of bioenergy. • Current accounting rules may overlook forest carbon trade-offs of bioenergy. • Wood pellet trade risks creating an emissions burden for exporting countries. - Abstract: While bioenergy plays a key role in strategies for increasing renewable energy deployment, studies assessing greenhouse gas (GHG) emissions from forest bioenergy systems have identified a potential trade-off of the system with forest carbon stocks. Of particular importance to national GHG inventories is how trade-offs between forest carbon stocks and bioenergy production are accounted for within the Agriculture, Forestry and Other Land Use (AFOLU) sector under current and future international climate change mitigation agreements. Through a case study of electricity produced using wood pellets from harvested forest stands in Ontario, Canada, this study assesses the implications of forest carbon accounting approaches on net emissions attributable to pellets produced for domestic use or export. Particular emphasis is placed on the forest management reference level (FMRL) method, as it will be employed by most Annex I nations in the next Kyoto Protocol Commitment Period. While bioenergy production is found to reduce forest carbon sequestration, under the FMRL approach this trade-off may not be accounted for and thus not incur an accountable AFOLU-related emission, provided that total forest harvest remains at or below that defined under the FMRL baseline. In contrast, accounting for forest carbon trade-offs associated with harvest for bioenergy results in an increase in net GHG emissions (AFOLU and life cycle emissions) lasting 37 or 90 years (if displacing coal or natural gas combined cycle generation, respectively). AFOLU emissions calculated using the Gross-Net approach are dominated by legacy effects of past management and natural disturbance, indicating near-term net forest carbon increase but

The construction of Shenzhen's carbon emission trading scheme

International Nuclear Information System (INIS)

Jiang, Jing Jing; Ye, Bin; Ma, Xiao Ming

2014-01-01

The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emissions trading scheme to operate in China. This paper gives an overview of the economic and emissions situation in Shenzhen and focuses on the development of the Shenzhen ETS regulatory framework. It is devised as an ETS with an intensity-based cap, output-based allocation and a market for trading of allowances. The design of the Shenzhen ETS attaches great importance to coordinate the dynamic relationships between economic growth, industrial transition and emissions control. The cap and its allocation are determined by carbon intensity reduction targets and economic output, with an aim to slow down emissions growth while mitigating shocks from economic fluctuation and industrial adjustment to market stability. The Shenzhen ETS features extensive coverage consisting of three types of regulated entities and four categories of covered emissions, in order to control carbon emissions by both improving energy efficiency and restraining growing energy demand. A competitive game theory method is created for allocation of free allowances to manufacturing enterprises. Mechanisms for carbon offsets and market stabilization are developed to promote active and orderly trading in the carbon market. Moreover, several challenges and their policy choices are detailed for the development of the Shenzhen ETS. - Highlights: • The Shenzhen ETS is the first urban-level “cap-and-trade” carbon emission trading scheme operated in China. • This paper focuses on the construction of Shenzhen carbon emission trading scheme. It is devised as the intensity-based cap, output-based allocation and allowance trade carbon market. • It has some signatures in the general principles, coverage and scope, cap and allocation and other mechanisms. • Several challenges and their policy choices are detailed for the development of Shenzhen ETS

Initial scoping of GHG emissions trading potential in Alberta : CABREE discussion paper

International Nuclear Information System (INIS)

Armstrong, R.

2002-03-01

The past five years have seen the emergence of the concept of emissions trading for greenhouse gases, which would make possible a reduction of the costs required to meet emissions targets agreed upon under the Kyoto Protocol. Emissions trading potential and initial scoping in Alberta is examined in this document, with a special emphasis placed on greenhouse gases. The design of a system, encompassing the theory underlying the mechanism, the current developments, issues of importance in this context, as well as the potential for inclusion of other sectors in Alberta were also discussed. For the purpose of this document, emissions trading was defined as one party reducing its emissions levels then transferring the ownership of that reduction to another party who can then purchase this reduction to assist in meeting its own emissions target. Emission trading can be divided into two basic types called Cap and Trade, and Baseline and Credit. Market creation and behaviour, and regulatory behaviour are factors that can render a trading system more feasible. It is important to analyze the goals before designing the specifics of the system. The incorporation of the various sectors of the economy of Alberta would be affected by their unique features. The greatest promise for emissions trading in Alberta is shown by the energy sector. The percentage of emissions covered, the number of participants, the economic effectiveness are all criteria that affect the performance of any system. figs

Greenhouse gas emissions from the international maritime transport of New Zealand's imports and exports

International Nuclear Information System (INIS)

Fitzgerald, Warren B.; Howitt, Oliver J.A.; Smith, Inga J.

2011-01-01

Greenhouse gas emissions from international maritime transport are exempt from liabilities under the Kyoto Protocol. Research into quantifying these emissions is ongoing, and influences policy proposals to reduce emissions. This paper presents a cargo-based analysis of fuel consumption and greenhouse gas emissions from New Zealand's international maritime transport of goods. Maritime transport moves 99.5% (by mass) of New Zealand's internationally traded products. It is estimated that 73% of visiting vessels' activity can be directly attributed to the movement of goods in and out of New Zealand. A cargo-based methodology was used to estimate that the international maritime transport of New Zealand's imports and exports consumed 2.5 million tonnes (Mt; 2.6 billion litres) of fuel during the year 2007, which generated 7.7 Mt of carbon dioxide (CO 2 ) emissions. Double-counting of emissions would occur if a similar method was applied to all New Zealand's trading partners. In contrast, since few large vessels refuel in New Zealand, the National Greenhouse Gas Inventory listed 2007 international maritime transportation emissions as 0.98 Mt of CO 2 , calculated from fuel bunkered for international transport. The results, therefore, show a significant difference between activity-based and bunker-fuel methodologies in quantifying New Zealand's emissions. International policy implications are discussed. - Research highlights: → Cargo-based analysis of GHG emissions from New Zealand's international maritime transport of goods. → 7.7 Mt of CO 2 estimated from international maritime transport of NZ's 2007 imports and exports. → 73% of visiting vessels' 2007 activity attributed to the movement of goods in and out of NZ. → The results were significantly different from NZ's GHG Inventory bunker-fuel derived emissions figure. → Detailed approach for international transport emissions regional/national assessments described.

China’s provincial CO2 emissions embodied in international and interprovincial trade

International Nuclear Information System (INIS)

Guo Ju’e; Zhang Zengkai; Meng Lei

2012-01-01

Trades create a mechanism of embodied CO 2 emissions transfer among regions, causing distortion on the total emissions. As the world’s second largest economy, China has a large scale of trade, which results in the serious problem of embodied CO 2 emissions transfer. This paper analyzes the characteristics of China’s CO 2 emissions embodied in international and interprovincial trade from the provincial perspective. The multi-regional Input–Output Model is used to clarify provincial CO 2 emissions from geographical and sectoral dimensions, including 30 provinces and 28 sectors. Two calculating principles (production accounting principle and consumption accounting principle, ) are applied. The results show that for international trade, the eastern area accounts for a large proportion in China’s embodied CO 2 emissions. The sectors as net exporters and importers of embodied CO 2 emissions belong to labor-intensive and energy-intensive industries, respectively. For interprovincial trade, the net transfer of embodied CO 2 emissions is from the eastern area to the central area, and energy-intensive industries are the main contributors. With the largest amount of direct CO 2 emissions, the eastern area plays an important role in CO 2 emissions reduction. The central and western areas need supportive policies to avoid the transfer of industries with high emissions. - Highlights: ► China’s embodied CO 2 emissions are analyzed from the provincial perspective. ► Eastern provinces have larger CO 2 emissions embodied in international trade. ► Embodied CO 2 emissions are mainly transferred from eastern area to central area. ► Coastal provinces play important roles in CO 2 emissions reduction. ► Inland provinces need supportive policies on emissions reduction.

EU Emission Trading: Starting with Carbon Dioxide

DEFF Research Database (Denmark)

Vesterdal, Morten; Svendsen, Gert Tinggaard

2003-01-01

The Commission of the European Union wants to start a limited emission trading scheme by 2005 within the Community to enable "learning-by-doing" prior to the Kyoto Protocol. This to accomplish the desired 8% target level for six different greenhouse gases. However, in the EU it is not clear whether...... all the six relevant greenhouse gases or only CO2 should be traded. What is the simplest and most practicable solution? We argue in favour of the latter option for three main reasons: the possible dominating global warming potential of CO2, expected future developments in CO2 emissions and the fact...

CO2 emissions, energy consumption, income and foreign trade: A South African perspective

International Nuclear Information System (INIS)

Kohler, Marcel

2013-01-01

The effect of trade liberalisation on environmental conditions has yielded significant debate in the energy economics literature. Although research on the relationship between energy consumption, emissions and economic growth is not new in South Africa, no study specifically addresses the role that South Africa's foreign trade plays in this context. A surprising fact given trade is one of the most important factors that can explain the environmental Kuznets curve. This study employs recent South African trade and energy data and modern econometric techniques to investigate this. The main finding of interest in this paper is the existence of a long run relationship between environmental quality, levels of per capita energy use and foreign trade in South Africa. As anticipated per capita energy use has a significant long run effect in raising the country's CO 2 emission levels, yet surprisingly higher levels of trade for the country act to reduce these emissions. Granger causality tests confirm the existence of a positive bidirectional relationship between per capita energy use and CO 2 emissions. Whilst the study also finds positive bidirectional causality between trade and income per capita and between trade and per capita energy use, it appears however that trade liberalisation in South Africa has not contributed to a long run growth in pollution-intensive activities nor higher emission levels. - Highlights: • A long run relationship between CO 2 emissions, levels of energy use and trade in SA. • Per capita energy has a significant long run effect in raising SA's CO 2 levels. • Trade reduces CO 2 emissions through stimulating technological innovations. • Positive bidirectional causality between per capita energy use and CO 2 emissions. • Bidirectional causality between trade and income and trade and energy use

Examining drivers of the emissions embodied in trade.

Directory of Open Access Journals (Sweden)

Leying Wu

Full Text Available Emissions embodied in provincial trade (EEPT have important effects on provinces' responsibilities for carbon emission reductions. Based on a multi-regional input-output model, we calculated EEPT for China's 30 provinces in 2002, 2007 and 2010, and we attempted to determine the drivers of EEPT. The results showed that, during this period, the ratio of EEPT to production-based emissions increased over time, reaching 40.24% in 2010. In consideration of its important role in carbon emissions, we analyzed the factors attributable to EEPT through structure decomposition analysis. The decomposition results showed that final demand and carbon emission intensity were two major factors in EEPT, while the final demand in other provinces and the carbon emission intensity in the local province were major factors for Emissions embodied in provincial exports and the final demand in the local province and the carbon emission intensity in other provinces were major factors for Emissions embodied in provincial imports. Regarding the differences among the EEPT of different provinces, changes in the structure of trade were the primary reason.

Study of atmospheric emission trading programs in the United States. Final report

International Nuclear Information System (INIS)

1991-01-01

A detailed review and evaluation was conducted of federal and state atmospheric emission trading programs in the USA to identify the factors critical to a successful program. A preliminary assessment was also made of the feasibility of such a program for NOx and volatile organic compounds (VOC) in the lower Fraser Valley in British Columbia. To date, experience in the USA with atmospheric emissions trading has primarily involved trades of emission reduction credits pursuant to the 1977 Clean Air Act amendments. Most trades occur under netting provisions which allow expansion of an existing plant without triggering the stringent new-source review process. Six case studies of emissions trading are described from jurisdictions in California, New Jersey, and Kentucky and from the national SO 2 allowance trading program. Estimates of cost savings achieved by emissions trading are provided, and factors critical to a successful program are summarized. These factors include clearly defined goals, participation proportional to problem contribution, an emissions inventory of satisfactory quality, a comprehensive permit system, a credible enforcement threat, efficient and predictable administration, location of the program in an economic growth area, and support by those affected by the program. In the Fraser Valley, it is concluded that either an emissions reduction credit or an allowance trading system is feasible for both NOx and VOC, and recommendations are given for implementation of such a program based on the factors determined above. 1 fig., 8 tabs

Industry protests new emissions trading regime

International Nuclear Information System (INIS)

Berends, J.; Schyns, V.

2008-01-01

The new emissions trading proposals presented by the European Commission on January 23rd, 2008, threaten to seriously hamper the competitiveness of European industry in the global market, according to industry organizations. They demand radical changes in the way Brussels allocates emission allowances. It is stated that auctioning of allowances, as the Commission proposes, will drive industry and employment out of Europe

Deep greenhouse gas emission reductions in Europe: Exploring different options

International Nuclear Information System (INIS)

Deetman, Sebastiaan; Hof, Andries F.; Pfluger, Benjamin; Vuuren, Detlef P. van; Girod, Bastien; Ruijven, Bas J. van

2013-01-01

Most modelling studies that explore emission mitigation scenarios only look into least-cost emission pathways, induced by a carbon tax. This means that European policies targeting specific – sometimes relatively costly – technologies, such as electric cars and advanced insulation measures, are usually not evaluated as part of cost-optimal scenarios. This study explores an emission mitigation scenario for Europe up to 2050, taking as a starting point specific emission reduction options instead of a carbon tax. The purpose is to identify the potential of each of these policies and identify trade-offs between sectoral policies in achieving emission reduction targets. The reduction options evaluated in this paper together lead to a reduction of 65% of 1990 CO 2 -equivalent emissions by 2050. More bottom-up modelling exercises, like the one presented here, provide a promising starting point to evaluate policy options that are currently considered by policy makers. - Highlights: ► We model the effects of 15 climate change mitigation measures in Europe. ► We assess the greenhouse gas emission reduction potential in different sectors. ► The measures could reduce greenhouse gas emissions by 60% below 1990 levels in 2050. ► The approach allows to explore arguably more relevant climate policy scenarios

Emissions trading comes of age as a strategic tool

International Nuclear Information System (INIS)

Pospisil, R.

1996-01-01

Trading of emissions credits has quickly evolved from a curiosity to a viable compliance strategy for electric utilities and power-generating industrial firms. A sure sign that emissions trading has matured is the entry of power marketers onto the scene; in bundling pollution allowances with their electricity offerings, they are making their product more attractive - and stealing a page from the coal companies' strategy book to boot. Although most current activity involves credits for sulfur dioxide (SO 2 ), nitrogen oxide (NO x ) trading is under way in certain areas as well, although NO x markets are local and thus slower to develop. However, utilities see economic development potential in this area; some are providing NO x credits to their industrial customers to help them comply with environmental regulations - and to retain their loyalty when deregulation affords them a choice of electricity suppliers. This paper briefly discusses the issues related to emissions trading

Embodied greenhouse gas emission by Macao

International Nuclear Information System (INIS)

Li, J.S.; Chen, G.Q.; Lai, T.M.; Ahmad, B.; Chen, Z.M.; Shao, L.; Ji, Xi

2013-01-01

Comprehensive inventory of cities' greenhouse gas emissions (GHG) is the basis for cities to make appropriate mitigation plans. However, previous studies on cities' GHG emissions consider emissions occurring within the city boundary (Scope 1) and out of boundary electricity emissions (Scope 2), but neglect indirect emissions associated with commodities consumed by cities (Scope 3), resulting in emission leakage. To cope with this problem, a systematic accounting covering all 3 scopes is presented in a case study of Macao for the years 2005–2009, based on the latest embodied emission intensity databases for China and for the world. The results show that total emissions are dominated by indirect emissions mainly embodied in imports, which is 3–4 times direct emissions during the period concerned. It is verified that accounting under Scopes 1 and 2 cannot capture the full picture of cities' emissions, especially cities like Macao which are dominated by service industry and inevitably sustained by massive materials and services from other regions. Our study suggests that Macao should adjust its current GHG mitigation policies which consider only its emissions occurring within its border, as Macao is a net GHG emissions importer. This work is the first assessment of Macao's embodied GHG emissions. - Highlights: • A systematic accounting procedure is presented to inventory a city's GHG emissions. • A comprehensive review of GHG emissions is performed for Macao. • Indirect GHG emissions dominate Macao's embodied GHG emissions. • Macao induced large amount of GHG emissions in other regions through trade. • The variation in GHG emission structure against socio-economic changes is revealed

Emissions trading in the context of electricity deregulation : a case study on Ontario

International Nuclear Information System (INIS)

Johns, G.

2003-01-01

This presentation discussed the deregulation of the electric power industry in Ontario and Alberta with particular reference to emissions trading, emissions profiles for the two provinces, and current market rules. It was noted that deregulation in Ontario is the major impetus for developing an emission trading system. Alberta is also in the process of developing an emission trading system for all industry sectors. The author discussed Ontario's Bill 210 which places a 6 year cap on prices and which offers tax incentives for renewable energy sources. It was argued that Bill 210 negates new generation and inhibits participants and competition in emissions trading market. Ontario generators face competitiveness concerns with neighbouring jurisdictions. Current market rules were outlined for emission caps, allocation for nitrogen oxide and sulfur dioxide allowances, credit creation, emission trading, and credit use. 6 figs

Why quota trade should be restricted: The arguments behind the EU position on emissions trading

International Nuclear Information System (INIS)

Westskog, Hege

2001-01-01

In this paper I try to clarify the background and arguments behind the EU position on emissions trading in negotiating the Kyoto Protocol and their suggestions of how the supplementary cap in the Kyoto agreement can be operationalized. I discuss economic arguments for restricting quota trade with a focus on the market power issue, transaction costs, and ancillary benefits of reducing emissions of climate gases. I also address the problem of hot air as an important argument to restrict quota trade, and arguments for restrictions connected to technological innovation. Finally, I look into the ethical considerations of restrictions. (author)

Why quota trade should be restricted: The arguments behind the EU position on emissions trading

Energy Technology Data Exchange (ETDEWEB)

Westskog, Hege

2001-07-01

In this paper I try to clarify the background and arguments behind the EU position on emissions trading in negotiating the Kyoto Protocol and their suggestions of how the supplementarity cap in the Kyoto agreement can be operationalized. I discuss economic arguments for restricting quota trade with a focus on the market power issue, transaction costs, and ancillary benefits of reducing emissions of climate gases. I also address the problem of hot air as an important argument to restrict quota trade, and arguments for restrictions connected to technological innovation. Finally, I look into the ethical considerations of restrictions. (author)

CH4 and N2O emissions embodied in international trade of meat

International Nuclear Information System (INIS)

Caro, Dario; Caldeira, Ken; LoPresti, Anna; Davis, Steven J; Bastianoni, Simone

2014-01-01

Although previous studies have quantified carbon dioxide emissions embodied in products traded internationally, there has been limited attention to other greenhouse gases such as methane (CH 4 ) and nitrous oxide (N 2 O). Following IPCC guidelines, we estimate non-CO 2 emissions from beef, pork and chicken produced in 237 countries over the period 1990–2010, and assign these emissions to the country where the meat is ultimately consumed. We find that, between 1990 and 2010, an average of 32.8 Mt CO 2 -eq emissions (using 100 year global warming potentials) are embodied in beef, pork and chicken traded internationally. Further, over the 20 year period, the quantity of CO 2 -eq emissions embodied in traded meat increased by 19%. The largest trade flows of emissions embodied in meat were from Brazil and Argentina to Russia (2.8 and 1.4 Mt of CO 2 -eq, respectively). Trade flows within the European region are also substantial: beef and pork exported from France embodied 3.3 Mt and 0.4 Mt of CO 2 -eq, respectively. Emissions factor of meat production (i.e. CO 2 -eq emissions per kg of meat) produced depend on ambient temperature, development level, livestock category (e.g. cattle, pork, and chicken) and livestock management practices. Thus, trade may result in an overall increase of GHG emissions when meat-consuming countries import meat from countries with a greater emissions intensity of meat production rather than producing the meat domestically. Comparing the emissions intensity of meat production of trading partners, we assess trade flows according to whether they tend to reduce or increase global emissions from meat production. (letter)

Environmental benefits of distributed generation with and without emissions trading

International Nuclear Information System (INIS)

Tsikalakis, A.G.; Hatziargyriou, N.D.

2007-01-01

The need for improving energy efficiency and reducing CO 2 emissions and other pollutants, as well as the restructuring of energy markets has favoured the increase of distributed energy resources (DER). The co-ordinated control of these sources comprising renewable energy sources (RES) and distributed generators (DG) characterised by higher efficiencies and lower emissions compared to central thermal generation, when based on coal or oil provide several environmental benefits. These benefits can be quantified based on DER participation in the CO 2 emission trading market. This paper provides a method to calculate emissions savings achieved by the marginal operation of DER in liberalised market conditions using available emissions data. The participation of DER in emissions trading markets is also studied, with respect to profits, pollutants decrease and change in operating schedules. It is shown that the operation of DER can significantly reduce pollutants, provided sufficient remuneration from CO 2 emission trading market participation is provided. Moreover, it is shown that using average emissions values to calculate the environmental benefits of DER might provide misleading results. (author)

Long-term outlook for world gas trade: 1920-2015

International Nuclear Information System (INIS)

MacDougall, M.W.; Linder, P.T.

1992-01-01

The World Gas Trade Model (WGTM) was designed to simulate the economic relationships of world and regional gas markets. Using the data gathered for supply, transportation and demand, the model calculated a consistent set of prices and quantities that, through time, would simultaneously satisfy all physical, behavioural and financial relations embodied in the model network. Three sensitivity cases were examined. The first one examined the effects on world gas supply, demand and trade with oil prices remaining constant throughout the study period. The second sensitivity case examined the effects of lower costs of new liquefied natural gas (LNG) liquefaction facilities. The third sensitivity case examined the effects of policy shifts in favour of natural gas over other fossil fuels for environmental reasons. During the 25-year period of the study, global production of natural gas was projected to almost double, with the overall level of final consumption being very similar to production. Results indicated that natural gas would remain predominantly a regionally traded commodity. The relatively high cost of natural gas transportation was shown to provide a substantial competitive advantage to local producers compared to more distant competitors. The cost of new liquefaction facilities was not considered to be competitive with long distance pipeline transportation. The model also indicated that reducing transportation costs or increasing the wellhead price differential between exporting and importing regions would accelerate the development of global natural gas trade. figs., tabs., refs

Assessment of emission trading impacts on competitive electricity market price

DEFF Research Database (Denmark)

Singh, S.N.; Saxena, D.; Østergaard, Jacob

2011-01-01

analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism. Findings - It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed...... side emission trading impact on electricity prices in the competitive power market. Design/methodology/approach - Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper...... with a special emphasis on the European market. Research limitations/implications - Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic. Originality/value - The emission trading impacts are analyzed on a simple example....

Environmental regulations and emissions trading in China

International Nuclear Information System (INIS)

Chang, Y.-C.; Wang Nannan

2010-01-01

This paper begins with the international context concerning climate change and how China fits into this context. Concentration is then turning into the emissions control system in China including environmental planning, legislation, policy instruments and measures as well as institutional setting in China's environmental governance system. Special attentions also being paid to emissions control in China's power sector. It should be noted that the pollution discharge permit system in China only exists superficially in many places. Insufficient resources are applied to the implementation of the said permit system, which in turn means that the system is applied according to differing standards in different parts of the country. The findings of this paper suggested that emissions trading programmes are usually introduced alongside the existing policies. The power sector usually has numerous other policy objectives and therefore the design and implementation of emissions trading programmes in the sector will have to address concern about the compatibility of existing industry policies.

To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile

International Nuclear Information System (INIS)

Coria, Jessica; Loefgren, Aasa; Sterner, Thomas

2009-01-01

Whether tradable permits are appropriate for use in transition and developing economies - given special social and cultural circumstances, such as the lack of institutions and lack of expertise with market-based policies - is much debated. We conducted interviews and surveyed a sample of firms subject to emissions trading programs in Santiago, Chile, one of the first cities outside the OECD that has implemented such trading. The information gathered allow us to study what factors affect the performance of the trading programs in practice and the challenges and advantages of applying tradable permits in less developed countries

Europe's cross-border gas trade on the rise

International Nuclear Information System (INIS)

Anon.

1991-01-01

Europe is poised for more growth in the gas industry that is certain to expand international gas trade into the next century. In the affluent societies of western Europe, gas growth will be fueled by an increasing public perception that it is the least environmentally harmful of fossil fuels. That factor is helping boost natural gas and LNG trade in many parts of the world. Gas will continue to penetrate the European residential market, but the biggest growth will occur in the industrial use, particularly for electrical power generation. The European Community has belatedly lifted restrictions on the use of a gas as a fuel for power generation. That, combined with the greater efficiency of cogeneration systems, is likely to set off a 100% increase in Europe's gas fueled power generation capacity in the first 5 years of 1990s

Integrated cost-effectiveness analysis of greenhouse gas emission abatement. The case of Finland

Energy Technology Data Exchange (ETDEWEB)

Lehtilae, A.; Tuhkanen, S. [VTT Energy, Espoo (Finland). Energy Systems

1999-11-01

In Finland greenhouse gas emissions are expected to increase during the next decades due to economic growth, particularly in the energy intensive industrial sectors. The role of these industries is very central in the national economy. The emission control according to the Kyoto Protocol will therefore be quite difficult and costly. The study analyses the cost-effectiveness of different technical options for reducing the emissions of carbon dioxide, methane, and nitrous oxide in Finland. The analysis is performed with the help of a comprehensive energy system model for Finland, which has been extended to cover all major sources of methane and nitrous oxide emissions in the energy sector, industry, waste management and agriculture. The focus being on technical options, no consideration is given to possible policy measures, emission trading or joint implementation in the study. Under the boundary conditions given for the development of the Finnish energy economy, cost-effective technical measures in the energy system include increases in the use of wood biomass, natural gas and wind energy, increases in the contribution of CHP to the power supply, and intensified energy conservation in all end-use sectors. Additional cost-effective measures are landfill gas recovery, utilisation of the combustible fraction of waste and catalytic conversion of N{sub 2}O in nitric acid production. With baseline assumptions, the direct annual costs of emission abatement are calculated to be about 2000 MFIM (330 M{epsilon}) in 2010. The marginal costs are estimated to be about 230 FIM (40 {epsilon}) per tonne of CO{sub 2}-equivalent in 2010. The cost curie derived from the analysis could be used in further analyses concerning emissions trading. (orig.) 109 refs. SIHTI Research Programme

Developing emission reduction credit trading in Texas

International Nuclear Information System (INIS)

Dodds, J.E.

1993-01-01

The Texas Air Control Board has begun to develop a system of emission reduction credit training. The system will be developed incrementally over time. The first step, banking of VOC and NO x Emission Reduction Credits, began March 15, 1993. Additional programs under study and development include NO x RACT trading, emission credits for motor vehicle scrappage and alternative fuel conversion, and establishment of community organizations to generate and acquire emission reduction credits for economic development purposes

Analyses of CO2 emissions embodied in Japan-China trade

International Nuclear Information System (INIS)

Liu Xianbing; Ishikawa, Masanobu; Wang Can; Dong Yanli; Liu Wenling

2010-01-01

This paper examines CO 2 emissions embodied in Japan-China trade. Besides directly quantifying the flow of CO 2 emissions between the two countries by using a traditional input-output (IO) model, this study also estimates the effect of bilateral trade to CO 2 emissions by scenario analysis. The time series of quantifications indicate that CO 2 emissions embodied in exported goods from Japan to China increased overall from 1990 to 2000. The exported CO 2 emissions from China to Japan greatly increased in the first half of the 1990s. However, by 2000, the amount of emissions had reduced from 1995 levels. Regardless, there was a net export of CO 2 emissions from China to Japan during 1990-2000. The scenario comparison shows that the bilateral trade has helped the reduction of CO 2 emissions. On average, the Chinese economy was confirmed to be much more carbon-intensive than Japan. The regression analysis shows a significant but not perfect correlation between the carbon intensities at the sector level of the two countries. In terms of CO 2 emission reduction opportunities, most sectors of Chinese industry could benefit from learning Japanese technologies that produce lower carbon intensities.

The european union emission trading scheme and energy markets: economic and financial analysis

International Nuclear Information System (INIS)

Bertrand, Vincent

2012-01-01

This thesis investigates relationships between the European Union Emission Trading Scheme (EU ETS) and energy markets. A special focus is given to fuel switching, the main short term abatement measure within the EU ETS. This consists in substituting Combined Cycle Gas Turbines (CCGTs) for hard-coal plants in off-peak power generation. Thereby coal plants run for shorter periods, which allows power producers to reduce their CO 2 emissions. In Chapter 1, we outline different approaches explaining relationships between carbon and energy markets. We also review the literature relating to these issues. Next, we further describe the fuel switching process and, in particular, we analyze the influence of energy and environmental efficiency of thermal power plants (coal and gas) on fuel switching. In Chapter 2, we provide a theoretical analysis that shows how differences in the efficiency of CCGTs can rule interactions between gas and carbon prices. The main result shows that the allowance price becomes more sensitive to the gas price when the level of CO 2 emissions increases. In Chapter 3, we examine interactions between carbon, coal, gas and electricity prices in an empirical study. Among the main results, we find that there is a significant link between carbon and gas prices in the long-run equilibrium. In Chapter 4, we analyze the cross-market price discovery process between gas and CO 2 markets. We identified in previous chapters that there is a robust significant link between gas and CO 2 markets. They are linked commodities, and their prices are affected by the same information. In an empirical analysis, we find that the carbon market is the leader in cross-market price discovery process. (author)

What are the opportunities related to the trading of emission reductions in the electricity market?; Quelles sont les opportunites reliees aux echanges de reduction d'emission dans le marche de l'electricite

Energy Technology Data Exchange (ETDEWEB)

Lemieux, M. [Gaz Metropolitain, Montreal, PQ (Canada)

2003-07-01

Gaz Metropolitain distributes approximately 97 per cent of the natural gas used in Quebec. It operates an 8300 kilometre (km) pipeline network and has 150,000 customers. Revenues in 2002 were 1.6 billion. Since 1990, Gaz Metropolitain has reduced its greenhouse gas (GHG) emissions by 30 per cent. After a brief look at the sources of energy in Quebec and their associated GHG emissions, the author discussed the viability of a closed emission trading system with only a limited number of permits. The system could be opened up through the creation of credits in excluded sectors. Under the Kyoto Protocol, countries are allocated emitting permits in an open system since the credits are included in the Protocol. In Canada, the federal government has announced that a domestic emission trading system will be implemented for large emitters. The thermal production sector will be covered by a system consisting of an exchange of rights. Electricity produced from renewable energy sources would be excluded from the system, and it is yet to be decided whether credits could be generated. The creation of credits under the Canadian plan was reviewed. The projects accepted under the Greenhouse Gas Emission Reduction Trading Pilot (GERT) were examined and the development of the project was described. Some of the projects under GERT include a new dam in Newfoundland, a wind power project in Alberta, and a biomass cogeneration project in British Columbia to name but a few. It was noted that quantifying emissions in the case of indirect reductions is complex but feasible. 3 refs., tabs., figs.

National greenhouse-gas accounting for effective climate policy on international trade

Science.gov (United States)

Kander, Astrid; Jiborn, Magnus; Moran, Daniel D.; Wiedmann, Thomas O.

2015-05-01

National greenhouse-gas accounting should reflect how countries’ policies and behaviours affect global emissions. Actions that contribute to reduced global emissions should be credited, and actions that increase them should be penalized. This is essential if accounting is to serve as accurate guidance for climate policy. Yet this principle is not satisfied by the two most common accounting methods. Production-based accounting used under the Kyoto Protocol does not account for carbon leakage--the phenomenon of countries reducing their domestic emissions by shifting carbon-intensive production abroad. Consumption-based accounting (also called carbon footprinting) does not credit countries for cleaning up their export industries, and it also punishes some types of trade that could contribute to more carbon efficient production worldwide. We propose an improvement to consumption-based carbon accounting that takes technology differences in export sectors into account and thereby tends to more correctly reflect how national policy changes affect total global emissions. We also present empirical results showing how this new measure redraws the global emissions map.

An emissions trading scheme design for power industries facing price regulation

International Nuclear Information System (INIS)

Kim, Yong-Gun; Lim, Jong-Soo

2014-01-01

The electricity market, monopolistic in nature, with government price regulation, poses a serious challenge for policy makers with respect to the cost-effectiveness of emissions trading, particularly in Asian countries. This paper argues that a cap-and-trade regulatory system for indirect emissions combined with a rate-based allocation system for direct emissions can achieve market efficiency even in the presence of price and quantity controls in the electricity market. This particular policy mix could provide appropriate incentives for industries to reduce their electricity consumption while inducing power producers to reduce their direct carbon emissions cost-effectively in conditions where there is strict government control of electricity prices. Another advantage of the suggested policy mix is that it allows carbon leakage in cross-border power trades to be effectively eliminated. - Highlights: • A rate-based allocation induces power producers to minimize direct emissions. • A cap-and-trade on indirect emission induces firms to reduce electricity consumption. • These two can jointly achieve market efficiency even in the regulated power market

Linking CO{sub 2} emissions from international shipping to the EU emissions trading scheme

Energy Technology Data Exchange (ETDEWEB)

Kaageson, Per [Nature Associates, Stockholm (Sweden)

2009-09-15

The objective of the report is to analyse the feasibility of a cap-and-trade system for CO{sub 2} emissions from international shipping linked to the European Emission Trading Scheme (ETS). The idea presented in the paper is to tie the permission for a ship to call at a port of a participating country to the vessels participation in a scheme for emissions trading under a common cap. The ship would be liable for emissions from fuel bunkered during, say, six months prior to a call at a participating port. With this design, emissions from the return voyages of ships involved in intercontinental traffic would automatically be covered, and shipowners and operators would gain nothing by calling at ports just outside the European Union. The geographical scope would thus be global, albeit limited to ships that call at ports of the European Union (and other participating states). The fuel consumption, that the surrendered CO{sub 2} allowances would have to match, could be declared by using the existing mandatory bunker delivery notes that all ships above 400 GT need to keep according to Regulation 18 of MARPOL Annex VI. The report discusses various ways for initial allocation of allowances and concludes that the least distorting method would be to sell them on auction and recycle all or most of the revenues to the shipping sector in a way that does not interfere with the objective of the trading scheme. In the case where Maritime Emissions Trading Scheme (METS) is initially limited to the ports of the European Union, at least 6 200 million ton less CO{sub 2} would be emitted over the 23 years between 2012 and 2035 compared to a business-as-usual scenario. However, a great part of this would be reductions in land-based sources paid indirectly by the shipping sector. (orig.)

An evaluation of the use of mobile source emissions trading: Locomotive case study

International Nuclear Information System (INIS)

West, W.R.; Brazell, M.M.

1993-01-01

There are many proposals for generating mobil source credits for use by stationary and other sources. This paper examines the benefits and practicality of including locomotive rail emissions in proposed emissions trading programs in california. In particular, this paper examines (1) if trading of locomotive rail emissions will result in lower compliance costs for railroads than traditional open-quotes command and controlclose quotes approaches, and (2) if emissions trading programs provide large enough incentives to entice railroads to seek to meet or exceed expected emissions reduction open-quotes command and controlclose quotes targets. The paper also examines under what circumstances stationary sources would be willing to purchase mobile source credits from railroads, in order to offset some of the stationary source's emissions reductions requirements. Stated simply, this analysis examines whether proposed trading programs offer enough benefits to both trading partners to warrant their use

Establishing credible emission reduction estimates: GERT's experience

International Nuclear Information System (INIS)

Loseth, H.

2001-01-01

To address the challenge of reducing the greenhouse gas emissions in Canada, the federal and provincial governments are developing strategies and policies to reach that goal. One of the proposed solutions is the establishment of an emission trading system, which it is believed would encourage investment in lower-cost reductions. The Greenhouse Gas Emission Reduction Trading (GERT) pilot was established in 1998 to examine emission trading. It represents the collaborative efforts of government, industry, and non-governmental organizations. It is possible to establish emission reduction trading outside of a regulated environment. Emission reduction is defined as being an action which reduces emissions when compared to what they would have been otherwise. The functioning of GERT was described from the initial application by a buyer/seller to the review process. The assessment of projects is based on mandatory criteria: reductions of emissions must be real, measurable, verifiable and surplus. A section of the presentation was devoted to landfill gas recovery project issues, while another dealt with fuel substitution project issues. Section 5 discussed emission reductions from an off-site source electricity project issues. figs

Emission Trading as a Basis for new Bioenergy Business Concepts in the Baltic Sea Region

International Nuclear Information System (INIS)

Vesterinen, Pirkko; Helynen, Satu

2006-01-01

The new EU Emission Trading system started in the beginning of 2005. This system will bring new challenges, but also new opportunities for the energy market in the Baltic Sea Region (BSR) countries. Typically in some EU countries the decreasing of greenhouse gas emissions tends to be more expensive to achieve than in the others. This brings about new trade schemes that could be implemented in the BSR. One important way of reducing emissions is to replace fossil fuels with biomass-based fuels in large scale power and steam production. As the availability of biomass, price level of biomass, electricity and steam, and national subsidies and taxation are different in different countries, it may be economically viable to create a framework for international trade. The product to be traded may be e.g. wood fuel (either as logs and chips or in refined form like pellets), energy (electricity), green certificates or emission allowances. It is also possible to implement so-called JI (Joint Implementation) projects to reach the emission reduction targets.All the above mentioned options may be realised in different ways. The purpose of the project is to find win-win opportunities, in which both the exporting and importing countries/regions will get profit from the system. These positive impacts may be quite impressive in regional level, as they directly boost several business areas like fuel production and transport, equipment manufacturing and maintenance, plant construction, as well as energy production and use. In addition, the impacts cover also forestry and agriculture, by bringing new value and utilisation options for their by-products.The paper presents the first results of an on-going project which is co-financed by the EU programme BSR INTERREG III B. The two-year project started in the beginning of 2005, and the main results will be available in autumn 2006

Coordination of the EU's emissions trading, energy taxation and subsidies for energy production. Interim Report by the Working Group

International Nuclear Information System (INIS)

2004-01-01

The Working Group was to make preparations for the coordination of emissions trading in the European Union, energy taxation and energy production subsidies. It was supposed to issue an interim report on the role of energy taxation by 15 December 2003. In its interim report, the Working Group examined the present energy taxation scheme and the needs for its development upon the start-up of EU-wide emissions trading in 2005. The aim has been to recognise the immediate needs for amending energy taxation and energy tax subsidies in the near future while taking account of the outlines set out in the Government Programme. From the climate policy perspective, emissions trading is an efficient means of steering, because the commitment set for the emissions trading sector can be met by means of it. At the first stage, the EU's emissions trading will concern carbon dioxide emissions only, and in the future probably also other greenhouse gas emissions mentioned in the Kyoto Protocol. Its steering effect does not extend to other emissions, such as acidifying emissions. Other measures will be required for curbing them. Emissions trading is not a sufficient instrument for energy policy, although it partly directs development in a direction that is favourable for energy policy targets. On top of that, the most important steering mechanism of emissions trading, the price of an emission allowance, is beyond the reach of Finnish energy policy. It is determined on the EU-wide emission allowances market. The current energy taxation and energy tax subsidies safeguard the position of renewable energy sources in the circumstances of emissions trading. The competitiveness of domestic fuels, too, can be partly secured with current taxes. In the energy production of communities and industry, energy wood often replaces peat. i.e. two domestic and local fuels are competing against one another. In condensing power production peat is clearly losing more of its competitive edge the higher the

Competition and trade in Australian gas markets

International Nuclear Information System (INIS)

Holmes, Leanne; Mander, Sally

1993-01-01

Although Australia has large gas reserves, the bulk of reserves (about 80 per cent) are located on the North West Shelf, off Western Australia. On the other had, the major demand centres are located in the south east of the country. The relative scarcity of proven gas reserves close to major markets has meant that governments in the state and territories with reserves have a strong vested interest in the future use of the gas. Equally, governments in states and territories that do not have gas reserves are interested in securing future supplies. The scope for increasing competition and trade in Australian gas markets depends on a number of features of the industry. These include: the characteristics of the resource, the structure of supply including the presence of natural monopolies, the nature and extent of upstream or downstream integration of firms and the presence of long term contracts - the characteristics of gas demand, and the regulatory and policy framework. The main purpose in this article is to review the economic factors driving natural gas markets in Australia, highlighting the factors influencing competition and trade. Against this background, some options for reform are also examined. 30 refs., 6 figs

Potential greenhouse gas benefits of transatlantic wood pellet trade

International Nuclear Information System (INIS)

Dwivedi, Puneet; Khanna, Madhu; Bailis, Robert; Ghilardi, Adrian

2014-01-01

Power utility companies in the United Kingdom are using imported wood pellets from the southern region of the United States for electricity generation to meet the legally binding mandate of sourcing 15% of the nation’s total energy consumption from renewable sources by 2020. This study ascertains relative savings in greenhouse gas (GHG) emissions for a unit of electricity generated using imported wood pellet in the United Kingdom under 930 different scenarios: three woody feedstocks (logging residues, pulpwood, and logging residues and pulpwood combined), two forest management choices (intensive and non-intensive), 31 plantation rotation ages (year 10 to year 40 in steps of 1 year), and five power plant capacities (20–100 MW in steps of 20 MW). Relative savings in GHG emissions with respect to a unit of electricity derived from fossil fuels in the United Kingdom range between 50% and 68% depending upon the capacity of power plant and rotation age. Relative savings in GHG emissions increase with higher power plant capacity. GHG emissions related to wood pellet production and transatlantic shipment of wood pellets typically contribute about 48% and 31% of total GHG emissions, respectively. Overall, use of imported wood pellets for electricity generation could help in reducing the United Kingdom’s GHG emissions. We suggest that future research be directed to evaluation of the impacts of additional forest management practices, changing climate, and soil carbon on the overall savings in GHG emissions related to transatlantic wood pellet trade. (paper)

Trade pattern change impact on industrial CO2 emissions in Taiwan

International Nuclear Information System (INIS)

Wu, Jung-Hua; Huang, Yun-Hsun; Chen, Yen-Yin

2007-01-01

Input-output structural decomposition analysis (I-O SDA) is applied in this paper to analyze the sources of change in industrial CO 2 emissions in Taiwan from 1989 to 2001. Owing to the fact that Taiwan is an export-oriented, trade-dependent economy, the focus is on trade transformation over the past decade and its effect over industrial CO 2 emissions. Change in trade patterns has significantly impacted many aspects of the Taiwan economy, subsequently resulting in various influences on industrial CO 2 emissions, as shown by empirical analysis results. Change in export level increased industrial CO 2 emissions, above all other effects, by 72.1%. However, changes in export mix and import coefficients imposed effects of dragging down industrial CO 2 emissions by 5.7% and 11.7%, respectively. (author)

Emission reduction trading - a power marketer`s perspective

Energy Technology Data Exchange (ETDEWEB)

Stewart, M. [Powerex Inc., Vancouver, BC (Canada)

1999-10-01

The current situation , and the short-term and long-term outlook in emission reduction trading are reviewed from the point of view of a power marketer. The author`s view is that while the concept of emission reduction credit (ERC) is easy enough to understand, i.e. a series of measures to reduce carbon dioxide production and enhance carbon sequestration, there is no standard definition, although there are a number of models under consideration. What is being sought is clear ownership and title, a clear understanding of what qualifies as a credit, credit for early action, commodity specifications and the ability to hedge. The author predicts that in the short-tem, industry will experiment with different types of transactions to gain experience and seek partners who are willing to share risk and development cost. In the longer-term, emission reduction credits will be bought and sold as commodities and traded, swapped or exchanged as part of a portfolio in bilateral trade transactions, and used in hedging against future liabilities.

Frameworks for pricing greenhouse gas emissions and the policy objectives they promote

International Nuclear Information System (INIS)

Higgins, Paul A.T.

2013-01-01

Four cost-effective frameworks for pricing greenhouse gas emissions currently receive widespread attention: cap-and-trade, emission fees, and hybrid cap-and-trade approaches that include upper or lower limits on permit prices (price ceilings or floors). This paper develops a fifth framework that uses an emission fee with an upper limit on the quantity of emissions—a quantity ceiling—and compares the impact of each framework on emission prices and quantities. Cap-and-trade with a price ceiling minimizes price increases for emitting activities in all cases whereas an emission fee with a quantity ceiling maximizes emissions reductions. Thus, the choice of framework influences policy outcomes because each framework is more or less suited to particular policy goals. Whether pursuing one potential policy goal serves society's interests best depends on the eventual consequences of climate damage and emissions pricing, which are uncertain when policy choices are made. Policy updating over time may reduce but likely cannot entirely eliminate the differences in outcome that arise due to framework choice. Therefore, the “best” framework for emissions pricing depends on subjective preferences regarding the relative importance of different policy objectives, most notably whether one is more risk averse to climate damages or emissions price increases. - Highlights: • This article develops and examines a carbon tax that includes a quantity constraint on emissions. • This approach maximizes climate protection in all cases, unlike existing policy alternatives. • This promotes rapid reductions in emissions if mitigation is easy without risk to long term targets. • This analysis reveals that different policy frameworks promote different policy goals. • The analysis helps round out ongoing policy discussions over how to deal with climate change

Climate policy, emissions trading and hydrogen : Results of a Mannesmann Pilotentwicklung study and options for the hydrogen community

International Nuclear Information System (INIS)

Geres, R.

2002-01-01

The use of emissions trading for the introduction of hydrogen technologies into the market was studied under the Mannesmann Pilotentwicklung. It was argued that the integration of environmental effects becomes part of the business planning on the revenue side, provided a scenario with environmental benefits like the reduction of greenhouse gas emissions in the atmosphere. New possibilities and opportunities are available for hydrogen technologies. It enables the definition of more detailed projects within the hydrogen community, considering factors such as economic, strategic, technological and political aims. The projects involve both mobile and stationary applications, and cover regional activities as well as international cooperation. Public institutions or the private sector can undertake them. As a result of the ratification of the Kyoto Protocol, an emissions trading scheme is scheduled to begin in 2005 inside the European Union. 2 refs., 2 tabs., 2 figs

Life-cycle greenhouse gas emissions of shale gas, natural gas, coal, and petroleum.

Science.gov (United States)

Burnham, Andrew; Han, Jeongwoo; Clark, Corrie E; Wang, Michael; Dunn, Jennifer B; Palou-Rivera, Ignasi

2012-01-17

The technologies and practices that have enabled the recent boom in shale gas production have also brought attention to the environmental impacts of its use. It has been debated whether the fugitive methane emissions during natural gas production and transmission outweigh the lower carbon dioxide emissions during combustion when compared to coal and petroleum. Using the current state of knowledge of methane emissions from shale gas, conventional natural gas, coal, and petroleum, we estimated up-to-date life-cycle greenhouse gas emissions. In addition, we developed distribution functions for key parameters in each pathway to examine uncertainty and identify data gaps such as methane emissions from shale gas well completions and conventional natural gas liquid unloadings that need to be further addressed. Our base case results show that shale gas life-cycle emissions are 6% lower than conventional natural gas, 23% lower than gasoline, and 33% lower than coal. However, the range in values for shale and conventional gas overlap, so there is a statistical uncertainty whether shale gas emissions are indeed lower than conventional gas. Moreover, this life-cycle analysis, among other work in this area, provides insight on critical stages that the natural gas industry and government agencies can work together on to reduce the greenhouse gas footprint of natural gas.

Benchmark-based emission allocation in a cap-and-trade system

International Nuclear Information System (INIS)

Groenenberg, H.; Blok, K.

2002-01-01

One of the important bottlenecks for the introduction of emission trading is how allowances should be distributed among the participants in a trading scheme. Both grandfathering on the basis of historic emissions and auctioning have important drawbacks. In this paper, we propose an allowance distribution rule based on bench-marking of production processes: each company's share in the total allowance is determined by its production level and a reference emission level per product. The scheme shows some important advantages compared to other schemes

European emissions trading - the business perspective

International Nuclear Information System (INIS)

Pocklington, D.

2002-01-01

Annex I parties to the Kyoto Protocol will commit to reducing the emissions of the basket of greenhouse gases by the equivalent of 135 MtC by the first commitment period of 2008-2012. Within the overall target, the EU has agreed to an average reduction of 8%, although this is subject to burden sharing within an EU ''bubble'', in which there are substantial differences in Member States' allocations. The instruments for reduction are emissions trading, industrial country joint implementation and clean development mechanism. By their nature, market instruments, such as emissions trading, are reliant upon the efficient operation of the market, which in turn depends upon the full involvement of the maximum number of participants to ensure liquidity. Although emissions trading has been generally welcomed by industry, when the proposals were published, many representative organisations expressed reservations concerning its format and details. The position papers of those organisations reviewed in this article demonstrate that within industry there is a high degree of unanimity on the majority of the critical issues within the current proposal, and agreement on the components that should be included in the final version. If the Commission's ambitious timetable is to be achieved, significant changes will need to be made to the proposal, for it is unlikely to achieve early adoption in its present form, and the longer the process takes, the more the national schemes will have the opportunity to develop and ultimately shape the EU scheme that is eventually agreed. In this respect, there certainly will be ''early mover advantage'' to those Member States that have or are currently establishing their own schemes, and have the requisite political weight to impose their views. (author)

Revisiting the emissions-energy-trade nexus: evidence from the newly industrializing countries.

Science.gov (United States)

Ahmed, Khalid; Shahbaz, Muhammad; Kyophilavong, Phouphet

2016-04-01

This paper applies Pedroni's panel cointegration approach to explore the causal relationship between trade openness, carbon dioxide emissions, energy consumption, and economic growth for the panel of newly industrialized economies (i.e., Brazil, India, China, and South Africa) over the period of 1970-2013. Our panel cointegration estimation results found majority of the variables cointegrated and confirm the long-run association among the variables. The Granger causality test indicates bidirectional causality between carbon dioxide emissions and energy consumption. A unidirectional causality is found running from trade openness to carbon dioxide emission and energy consumption and economic growth to carbon dioxide emissions. The results of causality analysis suggest that the trade liberalization in newly industrialized economies induces higher energy consumption and carbon dioxide emissions. Furthermore, the causality results are checked using an innovative accounting approach which includes forecast-error variance decomposition test and impulse response function. The long-run coefficients are estimated using fully modified ordinary least square (FMOLS) method, and results conclude that the trade openness and economic growth reduce carbon dioxide emissions in the long run. The results of FMOLS test sound the existence of environmental Kuznets curve hypothesis. It means that trade liberalization induces carbon dioxide emission with increased national output, but it offsets that impact in the long run with reduced level of carbon dioxide emissions.

Trading for a better environment. Feasibility of CO2 emission trade in the Netherlands

International Nuclear Information System (INIS)

Kolk, J. van der; Harmsen, H.

2002-01-01

July 1, 2000, the Committee CO2 trade was initiated by the Dutch Minister of Housing, Spatial Planning and the Environment (VROM) to investigate the desirability and feasibility of a national system for the trade of CO2 emission. Other greenhouse gases than carbon dioxide are not taken into account [nl

The future of emissions trading in light of the acid rain experience

International Nuclear Information System (INIS)

McLean, B.J.; Rico, R.

1995-01-01

The idea of emissions trading was developed more than two decades ago by environmental economists eager to provide new ideas for how to improve the efficiency of environmental protection. However, early emissions trading efforts were built on the historical open-quotes command and controlclose quotes infrastructure which has dominated U.S. environmental protection until today. The open-quotes command and controlclose quotes model initially had advantages that were of a very pragmatic character: it assured large pollution reductions in a time when large, cheap reductions were available and necessary; and it did not require a sophisticated government infrastructure. Within the last five years, large-scale emission trading programs have been successfully designed and started that are fundamentally different from the earlier efforts, creating a new paradigm for environmental control just when our understanding of environmental problems is changing as well. The purpose of this paper is to focus on the largest national-scale program--the Acid Rain Program--and from that experience, forecast when emission trading programs may be headed based on our understanding of the factors currently influencing environmental management. The first section of this paper will briefly review the history of emissions trading programs, followed by a summary of the features of the Acid Rain Program, highlighting those features that distinguish it from previous efforts. The last section addresses the opportunities for emissions trading (and its probable future directions)

An approach to evaluating the economic impact of emissions trading

International Nuclear Information System (INIS)

Lieu, S.; Johnson, S.L.; Dabirian, S.

1993-01-01

The command-and-control system to air quality controls is a mixture of technology-forcing standards for existing sources and offset for new sources. More stringent controls are required to achieve the ambient air quality standards in non-attainment urban areas which have been conformed with burgeoning economic growth. Due to the economy of scale and locale of polluting sources, some sources can implement these controls in a more cost-effective manner than others. In order to minimize the control costs of regulated sources, trading of emissions has been stipulated and has occurred among power plants to curb acid rain at the national level. Southern California is currently embarking on the trading of oxides of nitrogen, reactive organic compounds, and oxides of sulfur among existing and new stationary sources. New economic opportunities for entrepreneurs with advances control technology will arise under emissions trading. Trading will also result in the redistribution of emissions geographically and across industries. Through the linkage of a linear-programming trading model, a regional econometric model, and an urban airshed model, the impact of trading on the Southern California economy can thus be examined. This paper describes a framework which can be used to compare and contrast RECLAIM with the command-and-control system; and discusses a few issues which may arise in a trading market and how these issues can be dealt with are also examined

Emissions Trading: The Ugly Duckling in European Climate Policy?

Energy Technology Data Exchange (ETDEWEB)

Wraake, Markus

2009-07-15

The initial years of the European Union's Emissions Trading System (EU ETS) have provided a large-scale testing ground for trading of a new environmental commodity, carbon dioxide. This paper provides an overview of the origins and characteristics of the EU ETS. It then goes on to analyse the most contentious issues that have been discussed in the economics literature and in the public debate surrounding the trading system. The lessons learned are diverse and not all experiences are positive. Nevertheless, invaluable information has been gained from the EU ETS and policy makers in Europe and elsewhere would be wise to make use of it, be they supporters of emissions trading or sceptics to such policies. The paper concludes with a look toward the future, highlighting some upcoming revisions of the EU ETS and at what issues remain unresolved

75 FR 69884 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

Science.gov (United States)

2010-11-16

... Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... amend the Emissions Banking and Trading of Allowances (EBTA) Program. The EBTA Program establishes a cap... Emissions Banking and Trading of Allowances Program? IV. What is EPA's evaluation of the Emissions Banking...

Impact of Trade Openness and Sector Trade on Embodied Greenhouse Gases Emissions and Air Pollutants

OpenAIRE

Islam, Moinul; Kanemoto, Keiichiro; Managi, Shunsuke

2016-01-01

The production of goods and services generates greenhouse gases (GHGs) and air pollution both directly and through the activities of the supply chains on which they depend. The analysis of the latter—called embodied emissions—in the cause of internationally traded goods and services is the subject of this paper. We find that trade openness increases embodied emissions in international trade (EET). We also examine the impact of sector trade on EET. By applying a fixed-effect model using large...

Environmental and economic benefits resulting from citizens' participation in CO2 emissions trading: An efficient alternative solution to the voluntary compensation of CO2 emissions

International Nuclear Information System (INIS)

Rousse, Olivier

2008-01-01

Over the last few months in the emerging and lucrative carbon project market, a growing number of organizations have proposed to offset citizens' greenhouse gas emissions. The target of these carbon-offset initiatives is to satisfy the increasing demand of individuals wishing to take part in the fight against climate change. In this paper, we review and criticize these carbon-offsetting programs in general terms. We then propose an alternative that, in our opinion, should prove to be a better solution for citizens who are willing to pay for protecting the environment. This alternative is to organize citizens' participation in carbon emissions trading on a large scale in order to purchase and retire (destroy) CO 2 permits. To do so, a benevolent Regulator or non-governmental organization must correct certain CO 2 emissions market failures; this particularly concerns the high transaction costs, which represent an entry barrier and prevent citizens from purchasing and withholding permits. Based on theoretical findings, we demonstrate that implementing citizens' participation in emissions trading is an economically efficient and a morally preferable option. (author)

Restricted linking of emissions trading systems

NARCIS (Netherlands)

Schneider, Lambert; Lazarus, Michael; Lee, Carrie; Asselt, van Harro

2017-01-01

With over 17 emissions trading systems (ETSs) now in place across four continents, interest in linking ETSs is growing. Linking ETSs offers economic, political, and administrative benefits. It also faces major challenges. Linking can affect overall ambition, financial flows, and the location and

A Global Maritime Emissions Trading System. Design and Impacts on the Shipping Sector, Countries and Regions

Energy Technology Data Exchange (ETDEWEB)

Faber, J.; Markowska, A.; Eyring, V.; Cionni, I.; Selstad, E. Shipping / Emissions trading / Economy / Costs / Effects / Developing countries Publication number:

2010-01-15

This report designs a global cap-and-trade scheme for maritime transport and assesses its impacts on the shipping sector, regions and groups of countries. It shows that it is feasible to implement a cap-and-trade scheme for greenhouse gas emissions in the maritime transport sector. Such a scheme ensures that the environmental target is met, while allowing the sector to grow and ensuring that the target is met in the most cost-effective way. An emissions trading scheme would result in an increase in the costs of shipping of less than 10%, depending on the price of allowances. The increase in import values is likely to be less than 1% for most commodity groups, and the impact on consumer prices even lower. Using new data on emissions of ships sailing to regions and country groups, this report demonstrates that the additional costs of imports for most regions and country groups are estimated to be less than 0.2% of GDP, with a few exceptions. This report demonstrates that it is possible to compensate developing countries for the increased costs of imports by using approximately two thirds of the revenues of the auction. The remainder of the revenues can be used for other aims, such as R and D into fuel-efficiency of ships.

Responsibility and trade emission balances : An evaluation of approaches

NARCIS (Netherlands)

Serrano, Monica; Dietzenbacher, Erik

2010-01-01

This paper compares two concepts to evaluate the international responsibility of a country with respect to its emissions. Using a multi-regional input-output model, we show that the trade emission balance and the responsibility emission balance yield the same result. In practical work, however, a

Simulation analysis of emissions trading impact on a non-utility power plant

International Nuclear Information System (INIS)

Imran, Kashif; Ahmad, Intesar; Hassan, Tehzeebul; Aslam, Muhammad Farooq; Ngan, Hon-Wing

2009-01-01

Non-utility power plants can competitively participate in open electricity market to reduce operational costs but in the absence of pollution charges or emissions trading such generators are tempted to cause greater pollution for profit maximization. This paper presents a solution that incorporates pollution charges for nitrogen oxides and sulphur dioxide emissions in line with existing national environmental quality standards and a new carbon dioxide emissions trading mechanism. A novel approach has been used for allocation of allowable emissions that favors efficiently fuelled and environmentally friendly operation for maximizing profit. Impact of proposed carbon trading on economical utilization of enormous indigenous coal reserves has been analyzed and determined to be acceptable. Software developed in this paper, harnessing Sequential Quadratic Programming capabilities of Matlab, is shown to be adequate simulation tool for various emissions trading schemes and an useful operational decision making tool for constrained non-linear optimization problem of a non-utility power plant. (author)

Simulation analysis of emissions trading impact on a non-utility power plant

Energy Technology Data Exchange (ETDEWEB)

Imran, Kashif; Ahmad, Intesar [Department of Electrical Engineering, COMSATS Institute of IT, Lahore (Pakistan); Hassan, Tehzeebul [Department of Electrical Engineering, University of Engineering and Technology (UET), Lahore (Pakistan); Aslam, Muhammad Farooq [Department of Electrical Engineering, University of Management and Technology (UMT), Lahore (Pakistan); Ngan, Hon-Wing [Department of Electrical Engineering, Hong Kong Polytechnic University (China)

2009-12-15

Non-utility power plants can competitively participate in open electricity market to reduce operational costs but in the absence of pollution charges or emissions trading such generators are tempted to cause greater pollution for profit maximization. This paper presents a solution that incorporates pollution charges for nitrogen oxides and sulphur dioxide emissions in line with existing national environmental quality standards and a new carbon dioxide emissions trading mechanism. A novel approach has been used for allocation of allowable emissions that favors efficiently fuelled and environmentally friendly operation for maximizing profit. Impact of proposed carbon trading on economical utilization of enormous indigenous coal reserves has been analyzed and determined to be acceptable. Software developed in this paper, harnessing Sequential Quadratic Programming capabilities of Matlab, is shown to be adequate simulation tool for various emissions trading schemes and an useful operational decision making tool for constrained non-linear optimization problem of a non-utility power plant. (author)

Analysis and Design of International Emission Trading Markets Applying System Dynamics Techniques

Science.gov (United States)

Hu, Bo; Pickl, Stefan

2010-11-01

The design and analysis of international emission trading markets is an important actual challenge. Time-discrete models are needed to understand and optimize these procedures. We give an introduction into this scientific area and present actual modeling approaches. Furthermore, we develop a model which is embedded in a holistic problem solution. Measures for energy efficiency are characterized. The economic time-discrete "cap-and-trade" mechanism is influenced by various underlying anticipatory effects. With a systematic dynamic approach the effects can be examined. First numerical results show that fair international emissions trading can only be conducted with the use of protective export duties. Furthermore a comparatively high price which evokes emission reduction inevitably has an inhibiting effect on economic growth according to our model. As it always has been expected it is not without difficulty to find a balance between economic growth and emission reduction. It can be anticipated using our System Dynamics model simulation that substantial changes must be taken place before international emissions trading markets can contribute to global GHG emissions mitigation.

Carbon Footprint Management of Road Freight Transport under the Carbon Emission Trading Mechanism

Directory of Open Access Journals (Sweden)

Jin Li

2015-01-01

Full Text Available Growing concern over environmental issues has considerably increased the number of regulations and legislation that aim to curb carbon emissions. Carbon emission trading mechanism, which is one of the most effective means, has been broadly adopted by several countries. This paper presents a road truck routing problem under the carbon emission trading mechanism. By introducing a calculation method of carbon emissions that considers the load and speed of the vehicle among other factors, a road truck routing optimizing model under the cap and trade mechanism based on the Travelling Salesman Problem (TSP is described. Compared with the classical TSP model that only considers the economic cost, this model suggests that the truck routing decision under the cap and trade mechanism is more effective in reducing carbon emissions. A modified tabu search algorithm is also proposed to obtain solutions within a reasonable amount of computation time. We theoretically and numerically examine the impacts of carbon trading, carbon cap, and carbon price on truck routing decision, carbon emissions, and total cost. From the results of numerical experiments, we derive interesting observations about how to control the total cost and reduce carbon emissions.

Emissions trading in China: A conceptual 'leapfrog' approach?

International Nuclear Information System (INIS)

Raufer, Roger; Li, Shaoyi

2009-01-01

China is well aware of the advantages of quantity-based economic instruments (i.e., emissions trading) for domestic pollution control, but pilot studies and experimental programs in Taiyuan, Hong Kong/Guangdong, and other locations have not been successful. This paper proposes a very different type of emissions trading program, designed with Chinese implementation concerns in mind. It has three component parts: (1) a real-time intermittent control system (ICS) strategy designed to address public health concerns in the near term; (2) software-oriented Predictive emissions monitoring systems (PEMS) targeting process parameter (rather than emission) reporting from individual emission sources; and (3) real-time emissions markets responding to the ICS constraint. The technical and political difficulties associated with implementing such a system are recognized as daunting. However, such an approach would 'leapfrog' over existing systems, allowing the country to develop a comprehensive air pollution control strategy as economic growth occurs, continuously improving air quality in a cost efficient manner, utilizing both advanced technology and market-based control approaches in a manner consistent with China's unique environmental needs. It would also lay the groundwork for the eventual pricing of CO 2 and other greenhouse gases within China.

Deregulation and natural gas trade relationships: lessons from the Alberta-California experience

International Nuclear Information System (INIS)

Wilson, Patrick Impero

1997-01-01

In 1978 the US government moved to deregulate the American natural gas industry. The market changes that resulted from this initial step took time to ripple their way out to regional and subnational gas trading relationships. This ripple effect required subnational governments (state and provincial regulators) to rethink their gas regulatory policies. This article examines the restructuring of the Alberta-California gas trade. It explores how changes in US policy forced California and Alberta regulators to recast their policies. It concludes with several lessons that can be drawn from this case about the complex challenge of restructuring international gas trading relationships. (author)

The surveillance of the electricity wholesale market and emission trading market; Die Ueberwachung von Stromgrosshandelsmarkt und Emissionshandelsmarkt

Energy Technology Data Exchange (ETDEWEB)

Luedemann, Volker [Hochschule Osnabrueck (Germany). Forschungszentrum Energiewirtschaft/Energierecht (fee); Hochschule Osnabrueck (Germany). Wirtschafts- und Wettbewerbsrecht; Konar, Selma [Sozietaet Becker Buettner Held, Muenchen (Germany)

2015-05-15

The Regulation on Wholesale Market Integrity and Transparency (REMIT) and the German Law on the Establishment of a Market Transparency Office for Wholesale Trade in Electricity and Gas (MTS-G) have fundamentally changed the surveillance of electricity wholesale trade in Germany. From now on the Federal Network Agency and the Federal Cartel Office will be jointly responsible for monitoring the electricity wholesale trade for suspicious market phenomena and abusive behaviour. The REMIT specifies that the electricity trade must be surveilled ''with due consideration to interactions'' with the emission trade system. However, occurrences observed in recent years have shown that the emission trading system is in need of reform. This has also been recognised and has prompted extensive corrective action by the regulatory authorities of the European Union. These changes have yet to be transposed into the national surveillance regimes. The present article explains why the new role accorded to the Federal Network Agency under the REMIT fails to eliminate the structural shortcomings of the old surveillance system. At least the decision to put the collection and evaluation of data exclusively in the hands of the market transparency office and the cooperation this will prompt between the supervisory authorities responsible will make the task of surveilling the energy wholesale trading market a lot easier for the authorities. The energy transition and its exigencies will yet lead to further changes in the market and its surveillance regime.

The downside of emissions trading

International Nuclear Information System (INIS)

Viialainen, M.

2004-01-01

High unemployment and redundancies are a major problem in Finland today, and the economic downturn has only intensified as a result of the weak dollar and low investments. The growth of the global economy and the expansion of the EU are likely to see the shift in production and jobs away from Finland to low- cost countries, such as China or the countries of Eastern Central Europe, only intensily. The cost burden imposed by emissions trading will be an added problem. The disproportionally high emission reduction demands placed on Finland within the EU could lead to the loss of as many as 15,000 jobs, according to some estimates

Flue gas emissions from gas-fired cogeneration units <25 MWe

International Nuclear Information System (INIS)

Nielsen, M.; Wit, J. de

1997-01-01

A total of 900 MW e gas driven combined heat and power (CHP) has now been established in Denmark based on gas engines and gas turbine units less than 25 MW e each. Of the 900 MW e approx. 750 MW e are based on gas engines. Biogas is used as fuel for some 32 MW e of these. Emission limits for NO x and CO are 650 mg/nm 3 (ref. 5% O 2 and electrical efficiency 30% LCV). There is at present no limit for unburned hydrocarbons (UHC) for gas engines or gas turbines. The average emission of unburned hydrocarbons for the Danish gas engine driven CHP units is equal to approx. 3,5% of the fuel used. It is the target of this report to provide the basis for evaluating the planned UHC limit and possible adjustments of the present limit for NO x emission. The average NO x emission from gas turbines slightly exceeds the NO x emission from gas engines. This is due to a number of older gas turbines. Modern gas turbines can achieve significantly lower NO x emission compared to engines. The NO x emission from biogas driven engines is significantly higher than that of natural gas driven units. This is mainly due to NO x -unfavourable engine settings and the use of older units, as there are no legislation concerning NO x emission for the majority of these biogas driven units. The emission of CO and UHC is lower from gas turbines than from gas engines. The NO x emission can be reduced by SCR Catalyst systems. In Denmark 3 gas engine installations use this commercially available technology. Oxidation catalyst for UHC reduction at modern gas engine installations has proven relatively unsuccesful in Denmark until now. Only limited reductions are achieved and many catalysts are toxificated in less than 100 hours of operation. However, long-term field testing of promising UHC reducing catalysts is now being made. UHC reduction by incineration is at the prototype stage. No such plant has yet been set up in Denmark. (Abstract Truncated)

Limiting net greenhouse gas emissions in the United States

Energy Technology Data Exchange (ETDEWEB)

Bradley, R A; Watts, E C; Williams, E R [eds.

1991-09-01

In 1988, Congress requested that DOE produce a study on carbon dioxide inventory and policy to provide an inventory of emissions sources and to analyze policies to achieve a 20% reduction in carbon dioxide emissions in 5 to 10 years and a 50% reduction in 15 to 20 years. Energy and environmental technology data were analyzed using computational analysis models. This information was then evaluated, drawing on current scientific understanding of global climate change, the possible consequences of anthropogenic climate change (change caused by human activity) and the relationship between energy production and use and the emission of radiatively important gases. Topics discussed include: state of the science in estimating atmosphere/climate change relationships, the potential consequences of atmosphere/climate change, us greenhouse emissions past and present, an approach to analyzing the technical potential and cost of reducing US energy-related greenhouse gas emissions, current policy base and National Energy Strategy actions, fiscal instruments, regulatory instruments, combined strategies and instruments, macroeconomic impacts, carbon taxation and international trade, a comparison to other studies.

Energy and emissions trading. Proceedings; Energie und Klimawandel. Tagungsband

Energy Technology Data Exchange (ETDEWEB)

Ehlers, Dirk; Wolffgang, Hans-Michael; Schroeder, Ulrich Jan (eds.)

2010-07-01

Within the 14th Muensteraner Foreign Trade legislation conference at 15th and 16th October, 2009 in Muenster (Federal Republic of Germany), the following lectures were held: (1) National and European energy policy (Dieter Kunhenn); (2) Trade, transport and distribution of energy - actual and future legal aspects (Markus J. Kachel); (3) Liberalization and regulation of energy services at multilateral and bilateral level (Christian Pitschas); (4) Legal protection for foreign direct investigations in the energy sector (Richard Kreindler); (5) Energy cartels in the light of the WTO law (Joerg Philipp Terhechte); (6) Subsidisation of renewable energy in the area of attention between WTO and EU subsidy law (Martin Lukas); (7) Legal aspects of pipeline through the Baltic Sea (Barbara Kaech); (8) Sustainability standards and their compatibility with the WTO law (Lorenz Franken); (9) Economic instruments between Kyoto and Kopenhagen - Quo vadis climate protection? (Benjamin Goeerlach); (10) Emissions rights trading with developing countries (Peter Ebsen); (11) Legal aspects of the European emissions rights trading (Stefan Altenschmidt).

Impact of Carbon Quota Allocation Mechanism on Emissions Trading: An Agent-Based Simulation

Directory of Open Access Journals (Sweden)

Wei Jiang

2016-08-01

Full Text Available This paper establishes an agent-based simulation system of the carbon emissions trading in accordance with the complex feature of the trading process. This system analyzes the impact of the carbon quota allocation mechanism on emissions trading for three different aspects including the amount of emissions reduction, the economic effect on the emitters, and the emissions reduction cost. Based on the data of the carbon emissions of different industries in China, several simulations were made. The results indicate that the emissions trading policy can effectively reduce carbon emissions in a perfectly competitive market. Moreover, by comparing separate quota allocation mechanisms, we obtain the result that the scheme with a small extent quota decrease in a comprehensive allocation mechanism can minimize the unit carbon emission cost. Implementing this scheme can also achieve minimal effects of carbon emissions limitation on the economy on the basis that the environment is not destroyed. However, excessive quota decrease cannot promote the emitters to reduce emission. Taking into account that several developing countries have the dual task of limiting carbon emissions and developing the economy, it is necessary to adopt a comprehensive allocation mechanism of the carbon quota and increase the initial proportion of free allocation.

Panorama 2015 - Greenhouse gas emissions in the road transport sector: moving towards inclusion in the European system of CO2 allowances?

International Nuclear Information System (INIS)

Coussy, Paula; Portenart, Philomene; Afriat, Marion; Alberola, Emilie

2014-12-01

In the year 2000, out of 41.8 Gt of global greenhouse gas (GHG) emissions, almost 10% came from transports sector. In Europe, this share of transports GHG emissions rises to 21% and emissions are forecast to rise. Against this background, should the road transport sector be included in the European Union Emissions Trading Scheme and thereby contribute to national GHG emission reduction targets? (authors)

Shale gas production: potential versus actual greenhouse gas emissions

OpenAIRE

O'Sullivan, Francis Martin; Paltsev, Sergey

2012-01-01

Estimates of greenhouse gas (GHG) emissions from shale gas production and use are controversial. Here we assess the level of GHG emissions from shale gas well hydraulic fracturing operations in the United States during 2010. Data from each of the approximately 4000 horizontal shale gas wells brought online that year are used to show that about 900 Gg CH[subscript 4] of potential fugitive emissions were generated by these operations, or 228 Mg CH[subscript 4] per well—a figure inappropriately ...

Role of natural gas in meeting an electric sector emissions reduction strategy and effects on greenhouse gas emissions

International Nuclear Information System (INIS)

Lenox, Carol; Kaplan, P. Ozge

2016-01-01

With advances in natural gas extraction technologies, there is an increase in the availability of domestic natural gas, and natural gas is gaining a larger share of use as a fuel in electricity production. At the power plant, natural gas is a cleaner burning fuel than coal, but uncertainties exist in the amount of methane leakage occurring upstream in the extraction and production of natural gas. At higher leakage levels, the additional methane emissions could offset the carbon dioxide emissions reduction benefit of switching from coal to natural gas. This analysis uses the MARKAL linear optimization model to compare the carbon emissions profiles and system-wide global warming potential of the U.S. energy system over a series of model runs in which the power sector is required to meet a specific carbon dioxide reduction target across a number of scenarios in which the availability of natural gas changes. Scenarios are run with carbon dioxide emissions and a range of upstream methane emission leakage rates from natural gas production along with upstream methane and carbon dioxide emissions associated with production of coal and oil. While the system carbon dioxide emissions are reduced in most scenarios, total carbon dioxide equivalent emissions show an increase in scenarios in which natural gas prices remain low and, simultaneously, methane emissions from natural gas production are higher. - Highlights: • MARKAL analysis of energy system GHG emissions reduction scenarios. • High methane leakage can eliminate the benefit that natural gas brings over coal. • A robust GHG reduction strategy takes into account upstream emissions for all fuels.

Development of Competitive Gas Trading in Continental Europe

Energy Technology Data Exchange (ETDEWEB)

NONE

2008-07-01

In this publication the IEA examines the history of major gas markets' development in OECD Europe, and explores the possible expansion of trading through the mechanism of different hubs across the region. Lessons learned from North American markets on the benefits of regulatory convergence and investor-friendly legal framework are an important part of the analysis. Competitive trading based on transparent, non-discriminatory rules in a flexible and integrated European gas market will lead to more efficiency, timely investment, and greater market resilience, therefore ensuring more security for both customers and suppliers in the long term.

Emissions trading and innovation in the German electricity industry

Energy Technology Data Exchange (ETDEWEB)

Cames, Martin

2010-07-01

One major objective of the introduction of emissions trading in the European Union was to promote innovation towards mitigating climate change. Focusing on the German electricity industry, the extent to which this objective has been achieved up to now and how the design of the trading scheme could be improved towards achieving the intended objective shall be analyzed in this thesis. These questions are tackled in the thesis from a theoretical and an empirical perspective. The theoretical analysis was largely based on neoclassical environmental economics by using an algebraic model which allowed for comparison of the relevant companies' profits under various configurations of the analyzed design options. The empirical analysis was grounded on two surveys of the electricity industry - one before the start of emissions trading, the other after two and a half years of experience - which enabled identification of the concrete changes in the companies' perceptions and attitudes towards innovation due to the introduction of emissions trading. The analysis reveals some indications that the instrument has basically functioned as originally intended although it has certainly not yet developed its full potential in terms of promoting innovation towards a more climate friendly electricity system. From an environmental innovation perspective the following improvements are essential: (1) Closure provisions should be abolished as soon as possible because they basically extend the lifetime of old installations and thus rather delay innovation. (2) Fuel-specific allocation to new entrants should also be abandoned since it eliminates - at least partly - the incentives to shift investments towards technologies which use more carbon friendly fuels such as natural gas or biomass. (3) Introducing full auctioning for the electricity industry would remedy both of the above-mentioned weaknesses and at the same time eliminate the windfall profit generated by free allocation of allowances

Emissions trading and innovation in the German electricity industry

Energy Technology Data Exchange (ETDEWEB)

Cames, Martin

2010-07-01

One major objective of the introduction of emissions trading in the European Union was to promote innovation towards mitigating climate change. Focusing on the German electricity industry, the extent to which this objective has been achieved up to now and how the design of the trading scheme could be improved towards achieving the intended objective shall be analyzed in this thesis. These questions are tackled in the thesis from a theoretical and an empirical perspective. The theoretical analysis was largely based on neoclassical environmental economics by using an algebraic model which allowed for comparison of the relevant companies' profits under various configurations of the analyzed design options. The empirical analysis was grounded on two surveys of the electricity industry - one before the start of emissions trading, the other after two and a half years of experience - which enabled identification of the concrete changes in the companies' perceptions and attitudes towards innovation due to the introduction of emissions trading. The analysis reveals some indications that the instrument has basically functioned as originally intended although it has certainly not yet developed its full potential in terms of promoting innovation towards a more climate friendly electricity system. From an environmental innovation perspective the following improvements are essential: (1) Closure provisions should be abolished as soon as possible because they basically extend the lifetime of old installations and thus rather delay innovation. (2) Fuel-specific allocation to new entrants should also be abandoned since it eliminates - at least partly - the incentives to shift investments towards technologies which use more carbon friendly fuels such as natural gas or biomass. (3) Introducing full auctioning for the electricity industry would remedy both of the above-mentioned weaknesses and at the same time eliminate the windfall profit generated by free allocation of

Emission reduction trading - a power marketer's perspective

Energy Technology Data Exchange (ETDEWEB)

Stewart, M. (Powerex Inc., Vancouver, BC (Canada))

1999-01-01

The current situation , and the short-term and long-term outlook in emission reduction trading are reviewed from the point of view of a power marketer. The author's view is that while the concept of emission reduction credit (ERC) is easy enough to understand, i.e. a series of measures to reduce carbon dioxide production and enhance carbon sequestration, there is no standard definition, although there are a number of models under consideration. What is being sought is clear ownership and title, a clear understanding of what qualifies as a credit, credit for early action, commodity specifications and the ability to hedge. The author predicts that in the short-tem, industry will experiment with different types of transactions to gain experience and seek partners who are willing to share risk and development cost. In the longer-term, emission reduction credits will be bought and sold as commodities and traded, swapped or exchanged as part of a portfolio in bilateral trade transactions, and used in hedging against future liabilities.

CO{sub 2} emission costs and Gas/Coal competition for power production; Prezzi delle emissioni di CO{sub 2} e competivita' gas/carbone per la produzione termoelettrica

Energy Technology Data Exchange (ETDEWEB)

Santi, Federico [La Sapienza Univ., Roma (Italy). Dipartimento di Ingegneria Nucleare e Conversioni dell' Energia

2005-05-01

This paper demonstrates how a CO{sub 2} emission reduction programme can change the competition between the two power production technologies which will probably dominate the future of the Italian power industry: the coal fired USC steam power plant and the natural gas fired CCGT power plant. An economic value of the CO{sub 2} emission is calculated, in order to make the short-run-marginal-cost (or the long-run-marginal-cost). equal for both technologies, under a CO{sub 2} emission trading scheme and following a single-plant specific CO{sub 2} emission homogenizing approach. [Italian] Si dimostra come un programma teso alla riduzione delle emissioni di CO{sub 2} possa mutare la competivita' tra le due tecnologie per la produzione termoelettrica che saranno dominanti nel prossimo futuro in Italia: le centrali a carbone USC e le centrali CCGT a gas naturale. Si calcola il prezzo delle emissioni di CO{sub 2} per valutare il costo marginale di breve periodo (o il costo marginale di lungo periodo) per entrambe le tecnologie, avvalendosi di un programma di emission trading e utilizzando un approccio di omogeneizzazione delle emissioni di CO{sub 2} specifiche di ogni impianto.

Systems for carbon trading. An overview

International Nuclear Information System (INIS)

Hasselknippe, Henrik

2003-12-01

This paper focuses on the increasing number of regional, national and international systems for trading and transfer of greenhouse gas emission allowances and emission reduction credits. The paper will serve as a platform for further discussions on the development of the international carbon trading market. The analysis builds on the International Emissions Trading Association (IETA) Trading Schemes Database, which has been developed by Point Carbon, covering all known trading schemes and programs. A full overview of all existing trading schemes and proposals is presented, showing inter alia the outreach and judicial nature of the systems, the range and nature of emission reduction or credit purchase targets, allocation methods used, links to external systems, and possibilities for the use of project-based credits. A comparative assessment is performed on a number of design criteria, allowing for conclusions to be drawn on the level of harmonisation of these systems, and the identification of convergence or divergence of important operational features. The systems covered in the analysis display considerable variation when it comes to key design criteria and functionality. A rapid integration of many of the planned and active systems seems likely following the agreement on the EU emissions trading scheme, and will be further accelerated if the Kyoto Protocol is ratified

China's foreign trade and climate change: A case study of CO2 emissions

International Nuclear Information System (INIS)

Yan Yunfeng; Yang Laike

2010-01-01

The globalization of trade has numerous environmental implications. Trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries. Carbon leakage exerts great influences on international trade and economy. Applying an input-output approach, the paper estimates the amount of carbon dioxide (CO 2 ) embodied in China's foreign trade during 1997-2007. It is found that 10.03-26.54% of China's annual CO 2 emissions are produced during the manufacture of export goods destined for foreign consumers, while the CO 2 emissions embodied in China's imports accounted for only 4.40% (1997) and 9.05% (2007) of that. We also estimate that the rest of world avoided emitting 150.18 Mt CO 2 in 1997, increasing to 593 Mt in 2007, as a result of importing goods from China, rather than manufacturing the same type and quantity of goods domestically. During 1997-2007, the net 'additional' global CO 2 emissions resulting from China's exports were 4894 Mt. Then, the paper divides the trade-embodied emissions into scale, composition and technical effect. It was found that scale and composition effect increased the CO 2 emissions embodied in trade while the technical effect offset a small part of them. Finally, its mechanism and policy implications are presented.

Interactions between energy efficiency and emission trading under the 1990 Clean Air Act Amendments

International Nuclear Information System (INIS)

Hillsman, E.L.; Alvic, D.R.

1994-08-01

The 1990 Clean Air Act Amendments affect electric utilities in numerous ways. The feature that probably has received the greatest attention is the provision to let utilities trade emissions of sulfur dioxide (SO 2 ), while at the same time requiring them to reduce S0 2 emissions in 2000 by an aggregate 43%. The emission trading system was welcomed by many as a way of reducing the cost of reducing emissions, by providing greater flexibility than past approaches. This report examines some of the potential interactions between trading emissions and increasing end-use energy efficiency. The analysis focuses on emission trading in the second phase of the trading program, which begins in 2000. The aggregate effects, calculated by an emission compliance and trading model, turn out to be rather small. Aggressive improvement of end-use efficiency by all utilities might reduce allowance prices by $22/ton (1990 dollars), which is small compared to the reduction that has occurred in the estimates of future allowance prices and when compared to the roughly $400/ton price we estimate as a base case. However, the changes in the allowance market that result are large enough to affect some compliance decisions. If utilities in only a few states improve end-use efficiency aggressively, their actions may not have a large effect on the price of an allowance, but they could alter the demand for allowances and thereby the compliance decisions of utilities in other states. The analysis shows how improving electricity end-use efficiency in some states can cause smaller emission reductions in other states, relative to what would have happened without the improvements. Such a result, while not surprising given the theory behind the emission trading system, is upsetting to people who view emissions, environmental protection, and energy efficiency in moral rather than strictly economic terms

Climate policy and trade policy - The French proposal for a EU-wide border tax adjustment for CO2 emissions

International Nuclear Information System (INIS)

Damian, M.; Abbasn, M.

2007-01-01

The paper examines the French proposal to establish a EU-wide border tax adjustment for CO 2 emissions. The tax seeks to offset competitive distortions toward European industries which incur the cost of the Kyoto Protocol and to prompt European competitors to join the Kyoto Protocol. So far, the debate has chiefly focused on the compatibility of such a border tax adjustment with the rules of the multilateral trading system of the World Trade Organization. Without auguring how a dispute would eventually be settled within the WTO frame-work, the paper argues that the implementation of a border tax adjustment is not as much an issue of technical feasibility or compatibility with the multilateral trading system, as a matter of collective determination to drastically reduce greenhouse gas emissions. The French proposal is a yardstick for climate policy after the expiration of the Kyoto Protocol in 2012. The paper looks in more details into the core directions of pending negotiations. (authors)

Strategic analysis on establishing a natural gas trading hub in China

Directory of Open Access Journals (Sweden)

Xiaoguang Tong

2014-12-01

Full Text Available Since 2010, the LNG importing price premium in the Asia–Pacific markets has become increasingly high, generating great effects on the economic development in China. In addition, the natural gas dependence degree is expanding continuously, making it extremely urgent to establish a natural gas trading hub in China, with the aim to ensure national energy security, to gain the pricing power, and to build the regional benchmark prices. Through a comparative analysis of internal strength/weakness and external competitiveness, we concluded that with intensively-issued supporting policies on the natural gas sector, the initiation of spot and futures markets, the rapid growth of gas production and highly-improved infrastructures, as well as Shanghai's advantageous location, China has more advantages in establishing an Asian Natural Gas Trading Hub than other counties like Singapore, Japan and Malaysia. Moreover, based on the SWOT (strength, weakness, opportunity and threat and the marketization process analysis, the following strategies were presented: to impel the establishment of a natural gas trading hub depending on the gas supply condition, to follow the policies to complete the gas storage system, to form regional communities by taking comparative advantages, and to reinforce the marketization reform and regulation system establishment with foreign experiences for reference. This study rationalized the necessity and practicality of establishing a natural gas trading hub in China and will help China make a proper decision and find a periodical strategic path in this sector.

Banning banking in EU emissions trading?

International Nuclear Information System (INIS)

Schleich, Joachim; Ehrhart, Karl-Martin; Hoppe, Christian; Seifert, Stefan

2006-01-01

Admitting banking in emissions trading systems reduces overall compliance costs by allowing for inter-temporal flexibility: cost savings can be traded over time. However, unless individual EU Member States (MS) decide differently, the transfer of unused allowances from the period of 2005-2007 into the first commitment period under the Kyoto Protocol, i.e. 2008-2012, will be prohibited. In this paper, we first explore the implications of such a ban on banking when initial emission targets are lenient. This analysis is based on a simulation which was recently carried out in Germany with companies and with a student control group. The findings suggest that a EU-wide ban on banking would lead to efficiency losses in addition to those losses which arise from the lack of inter-temporal flexibility. Second, we use simple game-theoretic considerations to argue that, under reasonable assumptions, such a EU-wide ban on banking will be the equilibrium outcome. Thus, to avoid a possible prisoners' dilemma, MS should have co-ordinated their banking decisions

The role of natural gas consumption and trade in Tunisia's output

International Nuclear Information System (INIS)

Farhani, Sahbi; Shahbaz, Muhammad; Arouri, Mohamed; Teulon, Frédéric

2014-01-01

This paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in the case of Tunisia over the period 1980–2010. We use an Autoregressive Distributed Lag (ARDL) bounds testing approach to test for cointegration between the variables. The Toda–Yamamoto approach is then used to test for causality. Our findings indicate the existence of a long-term relationship between the variables. Natural gas consumption, real gross fixed capital formation and trade add in economic growth. Natural gas consumption, real gross fixed capital formation and real trade cause real GDP in Tunisia. These findings open up new insights for policymakers to formulate a comprehensive energy policy to sustain economic growth in the long-term. - Highlights: • We study how gas consumption, fixed capital formation and trade affect GDP in Tunisia. • We use auto-regressive distributed lag bounds testing approach and causality tests. • Gas consumption, real gross fixed capital formation and trade add in economic growth

Opportunities and trade-offs of biomass based negative emissions within planetary boundaries

Science.gov (United States)

Heck, Vera; Gerten, Dieter; Lucht, Wolfgang

2017-04-01

The Paris Agreement requires "a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of the century" (UNFCCC, 2015). Without a full decarbonization of the energy and land use sector until the second half of this century, negative emission technologies (NETs) are required to achieve net zero greenhouse gas emissions. Integrated assessment studies indicate that bioenergy with carbon capture and storage (BECCS), a land based NET, has the potential to contribute substantially to balancing anthropogenic fossil fuel emissions. However, significant negative emission potentials from BECCS require substantial biomass potentials, which can only be achieved by intensively managed (fertilized and irrigated) large-scale biomass plantations. Additional to direct trade-offs of land and water availability, the implementation of large-scale biomass plantations implies major restructuring of the land surface on top of existing land use and would be accompanied by indirect trade-offs such as changes in moisture and energy fluxes. In the context of the planetary boundaries framework as proposed by Rockström et al. (2009), BECCS might contribute to reduce the transgression of the planetary boundary (PB) for climate change, but would most likely steer the Earth system closer to the PB for freshwater use and lead to further transgression of the PBs for land system change, biosphere integrity and biogeochemical flows. This presentation will investigate the opportunities of second generation biomass potentials within the safe operating space for humanity and highlight the multidimensional trade-offs between biomass potentials for BECCS in relation to the PBs. Scenarios of land availability for biomass plantations and land based carbon sequestration were developed with a spatially explicit multi-criterial optimization framework, considering the precautionary need to stay within the safe operating space vis-à-vis the need to

How Can Economies in Transition Pursue Emissions Trading or Joint Implementation?

International Nuclear Information System (INIS)

Missfeldt, F.; Villavicenco, A.

2002-07-01

Under the 1997 Kyoto Protocol, economies in transition are eligible for both emissions trading (Article 17) and joint implementation (Article 6). Guiding rules for implementing these mechanisms were decided through the Marrakech Accords in November 2001. These countries may benefit substantially from those mechanisms if they are implemented appropriately. However, with the departure of the USA from the Kyoto Protocol, the likely revenues from international emissions trading for the economies in transition are likely to be limited at least during the first commitment period. A key criterion on whether countries should undertake emissions trading is the comparison of projections of emissions until 2012 with the target under the Kyoto Protocol. For joint implementation, the investment climate and the emission reductions potential of a specific project are more important. Countries that are bound by the Kyoto Protocol need to implement a clear institutional structure, which includes a JI office or a position solely in charge of JI. Even if a country decides not to engage in JI, such an office could help guide possible foreign investors

Greenhouse gas emission reduction by means of fuel switching in electricity generation: Addressing the potentials

International Nuclear Information System (INIS)

Delarue, Erik; D'haeseleer, William

2008-01-01

Many countries committed themselves in the Kyoto protocol to reduce greenhouse gas (GHG) emissions. Some of these targeted emission reductions could result from a switch from coal-fired to gas-fired electricity generation. The focus in this work lies on Western Europe, with the presence of the European Union Emission Trading Scheme (EU ETS). For the switching to occur, several conditions have to be fulfilled. First, an economical incentive must be present, i.e. a sufficiently high European Union Allowance (EUA) price together with a sufficiently low natural gas price. Second, the physical potential for switching must exist, i.e. at a given load, there must remain enough power plants not running to make switching possible. This paper investigates what possibilities exist for switching coal-fired plants for gas-fired plants, dependent on the load level (the latter condition above). A fixed allowance cost and a variable natural gas price are assumed. The method to address GHG emission reduction potentials is first illustrated in a methodological case. Next, the GHG emission reduction potentials are addressed for several Western European countries together with a relative positioning of their electricity generation. GHG emission reduction potentials are also compared with simulation results. GHG emission reduction potentials tend to be significant. The Netherlands have a very widespread switching zone, so GHG emission reduction is practically independent of electricity generation. Other counties, like Germany, Spain and Italy could reduce GHG emissions significantly by switching. With an allowance cost following the switch level of a 50% efficient gas-fired plant and a 40% efficient coal-fired plant in the summer season (like in 2005), the global GHG emission reduction (in the electricity generating sector) for the eight modeled zones could amount to 19%

Responsibility and trade emission balances. An evaluation of approaches

International Nuclear Information System (INIS)

Serrano, Monica; Dietzenbacher, Erik

2010-01-01

This paper compares two concepts to evaluate the international responsibility of a country with respect to its emissions. Using a multi-regional input-output model, we show that the trade emission balance and the responsibility emission balance yield the same result. In practical work, however, a lack of data availability implies that the same technology assumption has been commonly adopted. In that case, also a third alternative exists, which simply evaluates the emissions embodied in the trade balance of the country. This third alternative yields the same results as the other two approaches at the aggregate level. At the level of individual products, however, the results are clearly different and it turns out that the third alternative answers a different question. That is, it is appropriate for measuring the emission content of the products that cross the border. In our empirical application, we consider Spain in 1995 and 2000, distinguishing nine different gases: CO 2 , CH 4 , N 2 O, SF 6 , HFCs, PFCs, SO 2 , NO x , and NH 3 . (author)

A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading

International Nuclear Information System (INIS)

Farrahi Moghaddam, Reza; Farrahi Moghaddam, Fereydoun; Cheriet, Mohamed

2013-01-01

It will be difficult to gain the agreement of all the actors on any proposal for climate change management, if universality and fairness are not considered. In this work, a universal measure of emissions to be applied at the international level is proposed, based on a modification of the Greenhouse Gas Intensity (GHG-INT) measure. It is hoped that the generality and low administrative cost of this measure, which we call the Modified Greenhouse Gas Intensity measure (MGHG-INT), will eliminate any need to classify nations. The core of the MGHG-INT is what we call the IHDI-adjusted Gross Domestic Product (IDHIGDP), based on the Inequality-adjusted Human Development Index (IHDI). The IDHIGDP makes it possible to propose universal measures, such as MGHG-INT. We also propose a carbon border tax applicable at national borders, based on MGHG-INT and IDHIGDP. This carbon tax is supported by a proposed global Emissions Trading System (ETS). The proposed carbon tax is analyzed in a short-term scenario, where it is shown that it can result in a significant reduction in global emissions while keeping the economy growing at a positive rate. In addition to annual GHG emissions, cumulative GHG emissions over two decades are considered with almost the same results. - Highlights: ► An IHDI-adjusted GDP (IHDIGDP) is introduced to universally account the activities of nations. ► A modified GHG emission intensity (MGHG-INT) is introduced based on the IHDIGDP. ► Based on green and red scenarios, admissible emissions and RED percentage are introduced. ► The RED percentage is used to define a border carbon tax (BCT) and emission trading system. ► The MGHG-INT can provide a universal control on emissions while allowing high economical growth

Trade-off in emissions of acid gas pollutants and of carbon dioxide in fossil fuel power plants with carbon capture

International Nuclear Information System (INIS)

Tzimas, Evangelos; Mercier, Arnaud; Cormos, Calin-Cristian; Peteves, Stathis D.

2007-01-01

This paper investigates the impact of capture of carbon dioxide (CO 2 ) from fossil fuel power plants on the emissions of nitrogen oxides (NO X ) and sulphur oxides (SO X ), which are acid gas pollutants. This was done by estimating the emissions of these chemical compounds from natural gas combined cycle and pulverized coal plants, equipped with post-combustion carbon capture technology for the removal of CO 2 from their flue gases, and comparing them with the emissions of similar plants without CO 2 capture. The capture of CO 2 is not likely to increase the emissions of acid gas pollutants from individual power plants; on the contrary, some NO X and SO X will also be removed during the capture of CO 2 . The large-scale implementation of carbon capture is however likely to increase the emission levels of NO X from the power sector due to the reduced efficiency of power plants equipped with capture technologies. Furthermore, SO X emissions from coal plants should be decreased to avoid significant losses of the chemicals that are used to capture CO 2 . The increase in the quantity of NO X emissions will be however low, estimated at 5% for the natural gas power plant park and 24% for the coal plants, while the emissions of SO X from coal fired plants will be reduced by as much as 99% when at least 80% of the CO 2 generated will be captured

Corporate intentions to participate in emission trading

NARCIS (Netherlands)

Pinkse, J.M.

2007-01-01

The adoption of the Kyoto Protocol in 1997 has led to increasing business interest in the issue of climate change. It has also created much uncertainty for companies, particularly about the role of trading in realizing emission reductions. This paper investigates what drives multinational

Legal frameworks for emissions trading in the European Union

Energy Technology Data Exchange (ETDEWEB)

Maeaettae, K.; Anttonen, K. (Univ. of Joensuu (Finland)). Email: kalle.maatta@joensuu.fi; Upston-Hooper, K. (GreenStream Networks, Helsinki (Finland)); Mehling, M. (Univ. of Greifswald (Germany)); Perrels, A. (Government Institute for Economic Research VATT, Helsinki (Finland)), email: adriaan.perrels@vatt.fi

2009-07-01

The project is based on a comparative and pragmatic review of the legal frameworks for implementing the EU Emission Trading Scheme (ETS) in four EU jurisdictions (Finland, Sweden, United Kingdom and Germany). The project does not seek to examine the rationale of utilizing tradable mechanisms nor assess the costs and benefits of doing so. Its primary focus is to undertake a detailed study of the legal realities involved in implementing the EU ETS, particularly those issues of commercial importance such as taxation and accounting rules. The methodology adopted has been to formulate a comprehensive questionnaire (of approximately 70 questions) to be used as the basis of national reports together with a stand alone analysis by VATT, and in turn use the national reports and VATT study as the building blocks of a comparative overview report. The questionnaire seeks to highlight those significant legal and regulatory issues that impact on the establishment of emission allowance trading arrangements within the respective jurisdictions. The comparative analysis of these issues will focus on 'golden threads' of similarity and difference that impact on the establishment of an internal market within the European Union for the trading of emissions allowances. (orig.)

Legal frameworks for emissions trading in the European Union

International Nuclear Information System (INIS)

Upston-Hooper, K.; Perrells, A.; Anttonen, K.; Mehling, M.

2007-01-01

The Project is based on a comparative and pragmatic review of the legal frameworks for implementing the EU Emission Trading Scheme (ETS) in four EU jurisdictions (Finland, Sweden, United Kingdom and Germany). The Project does not seek to examine the rationale of utilizing tradable mechanisms nor assess the costs and benefits of doing so. Its primary focus is to undertake a detailed study of the legal realities involved in implementing the EU ETS, particularly those issues of commercial importance such as taxation and accounting rules. The methodology adopted has been to formulate a comprehensive questionnaire (of approximately 70 questions) to be used as the basis of national reports together with a stand alone analysis by VATT, and in turn use the national reports and VATT study as the building blocks of a comparative overview report. The questionnaire seeks to highlight those significant legal and regulatory issues that impact on the establishment of emission allowance trading arrangements within the respective jurisdictions. The comparative analysis of these issues will focus on 'golden threads' of similarity and difference that impact on the establishment of an internal market within the European Union for the trading of emissions allowances. (orig.)

Uncertainties in the Norwegian greenhouse gas emission inventory

Energy Technology Data Exchange (ETDEWEB)

Flugsrud, Ketil; Hoem, Britta

2011-11-15

The national greenhouse gas (GHG) emission inventory is compiled from estimates based on emission factors and activity data and from direct measurements by plants. All these data and parameters will contribute to the overall inventory uncertainty. The uncertainties and probability distributions of the inventory input parameters have been assessed based on available data and expert judgements.Finally, the level and trend uncertainties of the national GHG emission inventory have been estimated using Monte Carlo simulation. The methods used in the analysis correspond to an IPCC tier 2 method, as described in the IPCC Good Practice Guidance (IPCC 2000) (IPCC 2000). Analyses have been made both excluding and including the sector LULUCF (land use, land-use change and forestry). The uncertainty analysis performed in 2011 is an update of the uncertainty analyses performed for the greenhouse gas inventory in 2006 and 2000. During the project we have been in contact with experts, and have collected information about uncertainty from them. Main focus has been on the source categories where changes have occured since the last uncertainty analysis was performed in 2006. This includes new methodology for several source categories (for example for solvents and road traffic) as well as revised uncertainty estimates. For the installations included in the emission trading system, new information from the annual ETS reports about uncertainty in activity data and CO2 emission factor (and N2O emission factor for nitric acid production) has been used. This has improved the quality of the uncertainty estimates for the energy and manufacturing sectors. The results show that the uncertainty level in the total calculated greenhouse gas emissions for 2009 is around 4 per cent. When including the LULUCF sector, the total uncertainty is around 17 per cent in 2009. The uncertainty estimate is lower now than previous analyses have shown. This is partly due to a considerable work made to improve

Influence of the Emissions Trading Scheme on generation scheduling

International Nuclear Information System (INIS)

Kockar, Ivana; McDonald, James R.; Conejo, Antonio J.

2009-01-01

The paper investigates the effects of emissions constraints and Emissions Trading Scheme (ETS) on the generation scheduling outcome. ETS is a cap-and-trade market mechanism that has been introduced in European Union in order to facilitate CO 2 emissions management. This scheme gives generators certain amount of CO 2 allowances which they can use to cover emissions produced during energy generation. In a current setting, most of the allowances are given for free. However, under ETS generators also have an opportunity to buy and sell CO 2 allowances on the market. Since generation power outputs are bounded by the amount of CO 2 emissions that they are allowed to produce over time, it is becoming increasingly important for generating units to manage their allocations in the most profitable way and decide when and how much of permissions to spent to produce electricity. The method proposed here allows for modeling of this new limitation by including costs of buying and selling of CO 2 allowance in the generation scheduling procedure. It also introduces additional emissions constraints in the problem formulation. Although CO 2 permissions and energy are traded in separate markets, the proposed formulation permits analysis on how emission caps and emission market prices can influence market outcome. The method is illustrated on a 5-unit system. Given examples compare (i) a base-case when all generators have made a decision to use portions of their total free allocations that do not cause any shortfall during the investigated time period; (ii) two cases when the least expensive generators' decisions on the amount of free allowances they are willing to use during the considered period are insufficient. In all cases generators also submit prices at which they expect to be able to ''top-up'' or sell allowances on the market, however, only in the second and third case the ''buying'' option becomes active and affects generation scheduling and total costs. In addition, the

The cross-border opportunity on how to enhance Canada-US energy trade : Panel 3 : toward seamless trade in power and emission reductions

International Nuclear Information System (INIS)

LeCroy, J.; Rudgers, N.; McCuaig, P.

2006-01-01

This third panel discussion on seamless trade in power and emissions reductions addressed the impact of energy issues on agriculture. In particular, it focused on biomass as an energy source to address the need to reduce carbon dioxide emissions to the atmosphere. Although ethanol, biodiesel and other biomass are not going to completely replace petroleum in the near future, renewables such as biomass, wind, solar and geothermal energy sources will be part of the energy mix. It was noted that biomass can be produced in abundance in North America. In addition to being renewable and carbon neutral, biomass can be used in existing transportation/stationary fuels infrastructure. It was suggested that growing energy crops such as corn, soybeans, switchgrass and short-rotation woody crops represent the best potential to bring under-utilized agricultural lands back into productive use. The power industry's interest in biomass was also discussed. The Department of Energy has estimated that using syngas from biomass for fuel cells can be cost competitive with natural gas at current prices. The discussion also addressed the role of biomass in the 13-state Regional Greenhouse Gas Initiative (RGGI) which was launched to limit and reduce carbon dioxide emissions from the Mid-Atlantic and New England states. 7 figs

The EU Emissions Trading Scheme. Allowance Prices, Trade Flows, Competitiveness Effects

International Nuclear Information System (INIS)

Klepper, G.; Peterson, S.

2004-03-01

The upcoming European Emissions Trading Scheme (ETS) is one of the more controversial climate policy instruments. Predictions about its likely impact and its performance can at present only be made to a certain degree. As long as the National Allocations Plans are not finally settled the overall supply of allowances is not determined. In this paper we will identify key features and key impacts of the EU ETS by scanning the range of likely allocation plans using the simulation model DART. The analysis of the simulation results highlights a number of interesting details in terms of allowance trade flows between member countries, of allowance prices, and in terms of the role of the accession countries in the ETS

Greenhouse gas emissions increase global warming

OpenAIRE

Mohajan, Haradhan

2011-01-01

This paper discusses the greenhouse gas emissions which cause the global warming in the atmosphere. In the 20th century global climate change becomes more sever which is due to greenhouse gas emissions. According to International Energy Agency data, the USA and China are approximately tied and leading global emitters of greenhouse gas emissions. Together they emit approximately 40% of global CO2 emissions, and about 35% of total greenhouse gases. The developed and developing industrialized co...

Should the rules of allocating emissions permits be harmonised?

NARCIS (Netherlands)

Zhang, Z.X.

1999-01-01

The Kyoto Protocol is the first international environmental agreement that sets legally binding greenhouse gas emissions targets and timetables for Annex I countries. Its Article 17 authorizes emissions trading among Annex B countries. If properly designed, emissions trading can effectively reduce

Investment appraisal of heat and power plants within an emissions trading scheme. Final Report of the INVIS Project

International Nuclear Information System (INIS)

Laurikka, H.; Pirilae, P.

2005-04-01

The opportunity cost for carbon dioxide (CO 2 ) emissions has become a new factor influencing investments in heat and power production capacity globally, and in particular in countries with a greenhouse gas emissions trading system, such as the European Union Emissions Trading Scheme (EU ETS). There is a considerable power capacity investment need in the coming decades in Finland, in Europe and globally. As the economic lifetime of an investment in heat and power capacity typically ranges from 20-40 years, 'carbon finance' and the EU ETS therefore introduce a considerable and fundamental price risk to the investment problem. In Europe, the price risk is present in all investments and divestments of power production licences or capacity, be it a green-field plant, a retrofit of an existing plant or an acquisition. The objective of the INVIS research project was to extend the knowledge on strategic implications of emissions trading in investments into heat and power generation. This report gives an overview on the main findings of the project. The focus of INVIS project was on (1) quantitative investment appraisal and (2) methods rather than tools or parameter values. Particular attention in the INVIS project was paid to the incorporation of emissions trading in new methods of investment appraisal, which aim at taking into account the value of real options, rights to postpone or revise decisions. The EU ETS modifies the quantitative investment appraisal of heat and power plants directly through the emission allowance price and the number of free allowances and indirectly through impacts on output prices, input prices, taxation, and subsidies. From the risk perspective, the most problematic impact seems to be the regulatory uncertainty in the number of free allowances, which can turn out to be a barrier for investment in fossil-fuel-fired thermal power plants - even combined-cycle gas turbines. The emission allowance price is a stochastic variable, which implies it is

Improved price transparency : how electronic trading is affecting natural gas prices

International Nuclear Information System (INIS)

Gault, G.

2002-01-01

New electronic trading platforms can be categorized as: (1) proprietary or marketplace systems owned by the market maker or liquidity provider, (2) matching systems for brokerage systems where counter parties are matched and electronically executed through bilateral trading agreements, and (3) cleared exchanges which have traditional characteristics such as neutrality, anonymity, and clearing. The Calgary-based Natural Gas Exchange (NGX) is an independent electronic energy exchange. It is owned by OM in Stockholm, Sweden and operates under an order from the Alberta Securities Commission. Its main objective is to provide electronic energy trading and clearing services to participants in the the North American energy market. NGX has transacted more than 270,000 trades with zero default. The services at NGX include: centralized and anonymous electronic trading; centralized risk management and netting; centralized collateral management; transaction facilitation; pipeline title transfer coordination; and, real time price index generation. This paper described the impact of the many different types of trading platforms on liquidity and volatility in the marketplace. It also addresses the future of online energy trading and their respective platforms. Supply and demand of natural gas, storage, and weather are the basic market fundamentals, but trading platforms have an impact of volatility of natural gas because of market fragmentation, transparency, and market systems. As online energy exchanges evolve, we will see a consolidation of online energy exchanges that will thin a shrinking pool of players, and appropriately capitalized and centralized clearinghouses will become the backbone of all major online energy trading operations

Fiscal 1999 report on basic research for promotion of joint implementation programs. Gas pipeline system optimization involving Ukrainian pipeline modification for reduction in global warming gas emissions; 1999 nendo ondanka gas haishutsu sakugen no tame no Ukraina ni okeru gas pipeline no kaishu wo fukumu pipeline system no saitekika chosa hokokusho

Energy Technology Data Exchange (ETDEWEB)

NONE

2000-03-01

The result of a survey which involves a 520km-long gas pipeline (Shebelinka-Dikanka-Kyiv) modification in the Ukraine is described, which will promote joint implementation programs under COP3 (Third Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change). Since the greenhouse effect of methane gas is 21 times as serious as that of CO2, it is important to ensure good maintenance and structural soundness for natural gas transporting pipeline systems. The currently available Ukrainian gas turbines and compressors are so obsolescent that their efficiency rate is as low as 23%. The rate will rise to 36% when the old ones are replaced by high power equipment capable of high efficiency combustion. Pipelines will be checked for deterioration due to stress corrosion cracking and dangerous pipes will be replaced, with attention paid particularly to joint sections. It is expected that there will be a greenhouse gas reduction of 512,000 tons (in terms of CO2) and a saving of 103,000 tons on fuel (in terms of crude). Balance is tentatively estimated in case the expected reduction in emissions is transacted in emission trading. Profitability will occur, in view of profit from emission trading and gas sales revenue after gas leakage prevention thanks to project implementation, when the emission right sells at 30 dollars/ton or higher. The rippling effect will be great now that the Ukrainian pipeline system is quite extensive (with 30% thereof superannuated). (NEDO)

Economic growth and greenhouse gas emissions

Energy Technology Data Exchange (ETDEWEB)

Ansuategi, Alberto [Environment Department, University of York, York (United Kingdom); Escapa, Marta [Foundations of Economic Analysis Department, University of the Basque Country, Bilbao (Spain)

2002-01-01

Recent empirical research has examined the relationship between certain indicators of environmental degradation and income, concluding that in some cases an inverted U-shaped relationship, which has been called an environmental Kuznets curve (EKC), exists between these variables. Unfortunately, this inverted U-shaped relationship does not hold for greenhouse gas emissions. One explanation of the absence of EKC-like behavior in greenhouse gas emissions is that greenhouse gases are special pollutants that create global, not local, disutility. But the international nature of global warming is not the only reason that prevents de-linking greenhouse gas emissions from economic growth. The intergenerational nature of the negative impact of greenhouse gas emissions may have also been an important factor preventing the implementation of greenhouse gas abatement measures in the past. In this paper we explore the effect that the presence of intergenerational spillovers has on the emissions-income relationship. We use a numerically calibrated overlapping generations model of climate-economy interactions. We conclude that: (1) the intertemporal responsibility of the regulatory agency, (2) the institutional capacity to make intergenerational transfers and (3) the presence of intergenerationally lagged impact of emissions constitute important determinants of the relationship between economic growth and greenhouse gas emissions.

An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey

International Nuclear Information System (INIS)

Halicioglu, Ferda

2009-01-01

This study attempts to empirically examine the dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time-series data for the period 1960-2005. This research tests the interrelationship between the variables using the bounds testing to cointegration procedure. The bounds test results indicate that there exist two forms of long-run relationships between the variables. In the case of first form of long-run relationship, carbon emissions are determined by energy consumption, income and foreign trade. In the case of second long-run relationship, income is determined by carbon emissions, energy consumption and foreign trade. An augmented form of Granger causality analysis is conducted amongst the variables. The long-run relationship of CO 2 emissions, energy consumption, income and foreign trade equation is also checked for the parameter stability. The empirical results suggest that income is the most significant variable in explaining the carbon emissions in Turkey which is followed by energy consumption and foreign trade. Moreover, there exists a stable carbon emissions function. The results also provide important policy recommendations. (author)

Scotian gas: breaking the free trade consensus

International Nuclear Information System (INIS)

Wilson, F.; Shrybman, S.

2002-08-01

In this document, the authors argued that the federal government failed to protect the interests of all Canadians with regard to the oil and gas industry. The authors indicated that oil and gas companies, as was the case in the challenge before the National Energy Board from New Brunswick, were allowed to circumvent the safeguards in place for the protection of Canada's long term energy needs. Ensuring that gas exports only take place after Canadian needs have been met is a key mandate of the National Energy Board. According to the authors, approximately 80 per cent of the increase in exports ( 90 per cent of the exports from Nova Scotia) took place pursuant to short term orders granted without public notice or hearing. The increase should have been made through an export license application to the National Energy Board and reviewed at hearings. The challenge presented by New Brunswick calls for an end to the granting of short term orders for Scotian offshore gas by the National Energy Board. The authors found that the request from New Brunswick does not violate the North American Free Trade Agreement. The debate concerning the guarantee to the United States of ongoing access to Canadian energy resources, an important cost of free trade, was renewed by this document. refs

The market effectiveness of electricity reform: A case of carbon emissions trading market of Shenzhen city

Science.gov (United States)

Wang, Yongli; Wang, Gang; Zuo, Yi; Fan, Lisha; Xiao, Yao

2017-03-01

In the 13th Five-Year Plan, the Chinese government proposed to achieve the national carbon emission trading market established by 2017. The establishment of carbon emission trading market is the most important one in power reform, which helps to promote the power reform and achieve the goal of energy saving and emission reduction. As the bond of connecting environment energy issues and the economic development, carbon emissions trading market has become a hot research topic in the related fields, by market means, it incentive the lower cost subject emissions to undertake more reductions and therefore to benefit, the body of the high cost finished the task by buying quota reduction, to achieve the effect of having the least social total cost. Shenzhen has become the first city in China to start carbon trading pilot formally on June 16, 2013, online trading on June 18. The paper analyzes the market effectiveness of electricity reform in China, which takes carbon emissions trading market of Shenzhen city for example, and gives some suggestions for future development.

Climate, energy and emissions trading

International Nuclear Information System (INIS)

Baron, R.; Philibert, C.

2007-01-01

The authors question the 4 main concerns that have arisen since the implementation of emission trade markets 3 years ago. First, the allowance policy was not accurate enough and has led to a surplus offer of CO 2 allowances. Secondly, the impact on electricity prices of carbon emission costs was all the higher as it happened at the moment of the deregulation of electricity markets. Thirdly, the CO 2 allowances whose price will near 14 euros a ton for the 2008-2012 period are accused of hindering the competitiveness of the European industrial sector. Fourth, the present allowance system that gives to new comers free CO 2 allowances is not very conducive to the adoption by these new comers of technologies that are less CO 2 emitting. Some ways of improvement are given. (A.C.)

Does a regional greenhouse gas policy make sense? A case study of carbon leakage and emissions spillover

International Nuclear Information System (INIS)

Chen, Yihsu

2009-01-01

The Regional Greenhouse Gas Initiative (RGGI) is a state-level effort by ten northeast states in the U.S. to control CO 2 emissions from the electric sector. The approach adopted by RGGI is a regional cap-and-trade program, which sets a maximal annual amount of regional CO 2 emissions that can be emitted from the electric sector. However, incoherence of the geographic scope of the regional electricity market is expected to produce two undesirable consequences: CO 2 leakage and NO x and SO 2 emissions spillover. This paper addresses these two issues using transmission-constrained electricity market models. The results show that although larger CO 2 leakage is associated with higher allowance prices, it is negatively related to CO 2 prices if measured in percentage terms. On the other hand, SO 2 and NO x emissions spillover increase in commensurate with CO 2 allowance prices. Demand elasticity attenuates the effect of emissions trading on leakage and emissions spillover. This highlights the difficulties of designing a regional or local climate policy. (author)

Making a market for SO2 emissions trading

International Nuclear Information System (INIS)

Solomon, B.D.; Rose, K.

1992-01-01

Under the innovative, market-based approach to acid rain control included in the Clean Air Act amendments of 1990 (CAAA), sulfur dioxide emission allowances allocated to existing electric utility sources of these emissions can be used by utilities, banked for future use, or sold or traded to other users. Most power plants that burn fossil fuels will need to obtain an adequate supply of allowances from the market of EPA-sponsored auctions to cover their future emissions. This article addresses the respective roles of regulators and the private sector in facilitating a market for SO 2 emission allowances. In previous work, the authors have argued that state public utility commissions should seize the opportunity to encourage utilities to facilitate the allowance market. Yet it is the nature of new markets that many potential participants (including regulators) are risk-averse and wait for others to make the first move. Taken to the extreme, such behavior is a prescription for failure. The authors stated purpose is both to offer a perspective on how to make a market for what was previously considered an externality, as well as to stimulate debate among the various players and elicit better ideas. In fact, much more may be at stake. The success or failure of the emissions trading program could well set a benchmark for future environmental protection efforts in the US and globally

Investigations in relation with prevention of global warming in fiscal 2000. Structuring of strategies related to emission trading; 2000 nendo chikyu ondanka boshi kanren chosa hokokusho. Haishutsuryo torihiki ni kakawaru senryaku kochiku

Energy Technology Data Exchange (ETDEWEB)

NONE

2001-03-01

Investigations in relation with the greenhouse effect gas emission trading system have been performed on introduction and discussion of the system in major countries in order to discuss basically the emission trading system in Japan. The EU has been advancing the discussion with the introduction thereof to start in 2005 kept in mind, whereas the points of issue for the system designing include the followings: what roles should be taken by the EU and membership countries, consistency between the membership countries with regard to the participating organizations, and the scheme for initial allocation. In Denmark, the emission trading system has been introduced in January 2001 between the electric power companies. The objects of the allocation are only the eight power generation companies, making the management of emission right retaining quantities by the government simple. The United Kingdom has a schedule of introducing the emission trading system in April 2001, but the trading itself will start in 2002. Management of the trading scheme, and acceptability of banking after 2008 are the main points of issue. In the fundamental discussions on designing the emission trading system in Japan, discussion items were extracted, and the points of issue were put into order. (NEDO)

Canada - United States Natural Gas Trade - A Model for Expanding Regional Energy Trade

International Nuclear Information System (INIS)

D ArcyMcGee, T.

1996-01-01

This document deals with the expansion of Canadian natural gas exports to the United States. Over the past decade, these exports have more than tripled. The expansion of energy trade requires a growing market, a competitive supply source, deregulation of markets and free trade agreements, capital investment and eventually a transparent market with many buyers and sellers. Even if all these factors coexisted, there have been problems linked to this expansion of exports, such as the construction of transportation capacity. (TEC)

76 FR 15 - Approval and Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of...

Science.gov (United States)

2011-01-03

... Promulgation of Implementation Plans; Texas; Emissions Banking and Trading of Allowances Program AGENCY... to the Texas State Implementation Plan (SIP) that create and amend the Emissions Banking and Trading... revisions to the Texas State Implementation Plan (SIP) that create and amend the Emissions Banking and...

The dynamics of the world gas trade

International Nuclear Information System (INIS)

Chabrelie, M.F.

2003-01-01

The steadily growing distances between the world's gas rich regions and consumer zones foreshadow a powerful expansion of the international trade, at an annual rate of around 3.5% by 2020. Flows could then account for about 32% of marketed production. Trade by LNG tanker is very likely to emerge as the winner of this dynamic, with the flexibility it procures exploited to adjust supply to the demand of a more global market. This is today's gamble of an industry which, driven by technological improvements and market potential, is investing massively in new infrastructures

Permit trading and credit trading

DEFF Research Database (Denmark)

Boom, Jan-Tjeerd; R. Dijstra, Bouwe

This paper compares emissions trading based on a cap on total emissions (permit trading) and on relative standards per unit of output (credit trading). Two types of market structure are considered: perfect competition and Cournot oligopoly. We find that output, abatement costs and the number...... of firms are higher under credit trading. Allowing trade between permit-trading and credit-trading sectors may increase in welfare. With perfect competition, permit trading always leads to higher welfare than credit trading. With imperfect competition, credit trading may outperform permit trading....... Environmental policy can lead to exit, but also to entry of firms. Entry and exit have a profound impact on the performance of the schemes, especially under imperfect competition. We find that it may be impossible to implement certain levels of total industry emissions. Under credit trading several levels...

An analysis of the driving forces of CO2 emissions embodied in Japan-China trade

International Nuclear Information System (INIS)

Dong Yanli; Ishikawa, Masanobu; Liu Xianbing; Wang Can

2010-01-01

By using the latest China-Japan input-output data sets and the index decomposition analysis (IDA) approach, this article analyzes the driving forces of CO 2 emissions embodied in trade between the two countries during 1990-2000. We found that the growth of trade volume had a large influence on the increase of CO 2 emissions embodiments in bilateral trade. The dramatic decline in carbon intensity of the Chinese economy is a primary cause in offsetting CO 2 emissions exported from China to Japan over 1995-2000. We argue that a better understanding of the factors affecting CO 2 emissions embodied in international trade will assist in seeking more effective climate policies with wider participation in the post-Kyoto regime.

Effects of US biofuel policies on US and world petroleum product markets with consequences for greenhouse gas emissions

International Nuclear Information System (INIS)

Thompson, Wyatt; Whistance, Jarrett; Meyer, Seth

2011-01-01

US biofuel policy includes greenhouse gas reduction targets. Regulators do not address the potential that biofuel policy can have indirect impacts on greenhouse gases through its impacts on petroleum product markets, and scientific research only partially addresses this question. We use economic models of US biofuel and agricultural markets and US and world petroleum and petroleum product markets to show that discontinuing biofuel tax credits and ethanol tariff lower biofuel use could lead to increased US petroleum product use, and a reduction in petroleum product use in other parts of the world. The net effect is lower greenhouse gas emissions. Under certain assumptions, we show that biofuel use mandate elimination can have positive or negative impacts on greenhouse gas emissions. The magnitude and the direction of effects depend on how US biofuel trade affects biofuel in other countries with different emissions, context that determines how important use mandates are in the first place, who pays mandate costs, and the price responsiveness of global petroleum supplies and uses. However, our results show that counter-intuitive effects are possible and discourage broad conclusions about the greenhouse gas impacts of removing these elements of US biofuel policy. - Highlights: → Biofuel policy has counter-intuitive greenhouse gas effects under certain conditions. → US biofuel policies affect global petroleum markets, with implications for GHGs. → US biofuel use mandate GHG effects depend on whether they are binding and who pays. → US biofuel GHGs are sensitive to policy, petroleum market responses, and biofuel trade.

Carbon trading: Current schemes and future developments

International Nuclear Information System (INIS)

Perdan, Slobodan; Azapagic, Adisa

2011-01-01

This paper looks at the greenhouse gas (GHG) emissions trading schemes and examines the prospects of carbon trading. The first part of the paper gives an overview of several mandatory GHG trading schemes around the world. The second part focuses on the future trends in carbon trading. It argues that the emergence of new schemes, a gradual enlargement of the current ones, and willingness to link existing and planned schemes seem to point towards geographical, temporal and sectoral expansion of emissions trading. However, such expansion would need to overcome some considerable technical and non-technical obstacles. Linking of the current and emerging trading schemes requires not only considerable technical fixes and harmonisation of different trading systems, but also necessitates clear regulatory and policy signals, continuing political support and a more stable economic environment. Currently, the latter factors are missing. The global economic turmoil and its repercussions for the carbon market, a lack of the international deal on climate change defining the Post-Kyoto commitments, and unfavourable policy shifts in some countries, cast serious doubts on the expansion of emissions trading and indicate that carbon trading enters an uncertain period. - Highlights: → The paper provides an extensive overview of mandatory emissions trading schemes around the world. → Geographical, temporal and sectoral expansion of emissions trading are identified as future trends. → The expansion requires considerable technical fixes and harmonisation of different trading systems. → Clear policy signals, political support and a stable economic environment are needed for the expansion. → A lack of the post-Kyoto commitments and unfavourable policy shifts indicate an uncertain future for carbon trading.

Emissions trading and transaction costs : analyzing the flaws in the discussion

NARCIS (Netherlands)

Woerdman, E.

Although emissions trading lowers the costs of climate change mitigation, transaction costs (e.g. to find a trading partner) may reduce its cost-effectiveness. Some economists claim that transaction costs for Joint Implementation (JI) and Clean Development Mechanism (CDM) projects will be higher

Analysis of the impacts of combining carbon taxation and emission trading on different industry sectors

International Nuclear Information System (INIS)

Lee, Cheng F.; Lin, Sue J.; Lewis, Charles

2008-01-01

Application of price mechanisms has been the important instrument for carbon reduction, among which the carbon tax has been frequently advocated as a cost-effective economic tool. However, blanket taxes applied to all industries in a country might not always be fair or successful. It should therefore be implemented together with other economic tools, such as emission trading, for CO 2 reduction. This study aims to analyze the impacts of combining a carbon tax and emission trading on different industry sectors. Results indicate that the 'grandfathering rule (RCE2000)' is the more feasible approach in allocating the emission permit to each industry sector. Results also find that the accumulated GDP loss of the petrochemical industry by the carbon tax during the period 2011-2020 is 5.7%. However, the accumulated value of GDP will drop by only 4.7% if carbon taxation is implemented together with emission trading. Besides, among petrochemical-related industry sectors, up-stream sectors earn profit from emission trading, while down-stream sectors have to purchase additional emission permits due to failure to achieve their emission targets

National Greenhouse Gas Emission Inventory

Data.gov (United States)

U.S. Environmental Protection Agency — The National Greenhouse Gas Emission Inventory contains information on direct emissions of greenhouse gases as well as indirect or potential emissions of greenhouse...

How do farm models compare when estimating greenhouse gas emissions from dairy cattle production?

DEFF Research Database (Denmark)

Hutchings, Nicholas John; Özkan, Şeyda; de Haan, M

2018-01-01

The European Union Effort Sharing Regulation (ESR) will require a 30% reduction in greenhouse gas (GHG) emissions by 2030 compared with 2005 from the sectors not included in the European Emissions Trading Scheme, including agriculture. This will require the estimation of current and future...... from four farm-scale models (DairyWise, FarmAC, HolosNor and SFARMMOD) were calculated for eight dairy farming scenarios within a factorial design consisting of two climates (cool/dry and warm/wet)×two soil types (sandy and clayey)×two feeding systems (grass only and grass/maize). The milk yield per...

Emissions trading and firms' strategies. The case of power producers

International Nuclear Information System (INIS)

Rousse, O.

2005-11-01

This thesis deals with the impacts of a domestic emissions trading scheme on firms' strategies. As recent experiences of such programs (Acid Rain Program, RECLAIM Program, NOx Budget Program and the European Union Emissions Trading Scheme) concern mainly heat and power producers, we analyze especially strategies of these companies. In context of electricity market deregulation, our study takes two directions: uncertainty and competitive distortions. Concerning uncertainty, we are interested in portfolio management of emission permits, that is choice under uncertainty between buying, selling and banking permits. Concerning competitive distortions, we consider manipulations on the permits and/or products markets. Among others, we investigate interactions between a pollution market and the wholesale electricity market. From a general point of view, we show that a permits market, even competitive, gives to power producers more opportunities to act strategically on wholesale electricity markets. By this way, our study attempts to indicate when these market distortions are more likely to occur and to give some emissions market design instructions. (author)

Land use efficiency: anticipating future demand for land-sector greenhouse gas emissions abatement and managing trade-offs with agriculture, water, and biodiversity.

Science.gov (United States)

Bryan, Brett A; Crossman, Neville D; Nolan, Martin; Li, Jing; Navarro, Javier; Connor, Jeffery D

2015-11-01

Competition for land is increasing, and policy needs to ensure the efficient supply of multiple ecosystem services from land systems. We modelled the spatially explicit potential future supply of ecosystem services in Australia's intensive agricultural land in response to carbon markets under four global outlooks from 2013 to 2050. We assessed the productive efficiency of greenhouse gas emissions abatement, agricultural production, water resources, and biodiversity services and compared these to production possibility frontiers (PPFs). While interacting commodity markets and carbon markets produced efficient outcomes for agricultural production and emissions abatement, more efficient outcomes were possible for water resources and biodiversity services due to weak price signals. However, when only two objectives were considered as per typical efficiency assessments, efficiency improvements involved significant unintended trade-offs for the other objectives and incurred substantial opportunity costs. Considering multiple objectives simultaneously enabled the identification of land use arrangements that were efficient over multiple ecosystem services. Efficient land use arrangements could be selected that meet society's preferences for ecosystem service provision from land by adjusting the metric used to combine multiple services. To effectively manage competition for land via land use efficiency, market incentives are needed that effectively price multiple ecosystem services. © 2015 John Wiley & Sons Ltd.

Efficiency of European emissions markets: Lessons and implications

International Nuclear Information System (INIS)

Krishnamurti, Chandrasekhar; Hoque, Ariful

2011-01-01

While prior studies have shown that emission rights and futures contracts on emission rights are efficiently priced, there are no studies on the efficiency of the options market. Therefore, this study fills the gap. We examine empirical evidence regarding the efficiency of the options market for emissions rights in Europe. We employ the put-call parity approach to test the efficiency of options on emission rights traded in the European market. This implies that firms can trade options on emission rights in addition to other existing strategies in order to manage their greenhouse gas emissions. - Highlights: → Efficiency of the European options market for emissions. → Design implications for the development of emissions trading schemes in other countries. → Governance issues pertaining to emissions trading.

Waste Isolation Pilot Plant: Alcove Gas Barrier trade-off study

International Nuclear Information System (INIS)

Lin, M.S.; Van Sambeek, L.L.

1992-07-01

A modified Kepner-Tregoe method was used for a trade-off study of Alcove Gas Barrier (AGB) concepts for the Waste Isolation Pilot Plant. The AGB is a gas-constraining seal to be constructed in an alcove entrance drift. In this trade-off study, evaluation criteria were first selected. Then these criteria were classified as to their importance to the task, assigning a weighting value to each aspect. Eleven conceptual design alternatives were developed based on geometrical/geological considerations, construction materials, constructibility, and other relevant factors and evaluated

Partner Country Series: Developing a Natural Gas Trading Hub in Asia

Energy Technology Data Exchange (ETDEWEB)

NONE

2013-06-01

The trading of natural gas in the Asia-Pacific region is dominated by long-term contracts in which the price of gas is indexed to that of oil. As the price of gas between Asia and other parts of the world has widened in recent years, observers have raised serious doubts about the sustainability of this pricing model. In this report, the IEA shows what it would take to create a functional, regional natural-gas trading hub in which prices reflect the local supply and demand fundamentals. The report aims to provide stakeholders with insights on the changes that are required in the Asia-Pacific natural gas sector - both downstream and upstream - to allow a competitive natural gas price to emerge. Building on OECD Europe and OECD America experiences, this report sets out to assess perspectives for these changes in the Asia-Pacific natural gas markets. It identifies obstacles and opportunities for a competitive natural gas price in the Asian economies to emerge.

Impacts of the EU emissions trading scheme on the industrial competitiveness in Germany