| 1. |
- Aklilu, Abenezer Zeleke, et al.
(författare)
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Economic incentives for carbon sequestration: a review of the literature
- 2014
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- The main purpose of this study is to review studies in economics on policies for carbon sequestration. Specific design problems are associated with heterogeneous land holders, additionality and permanence in carbon projects, and the risk of leakage. It was found that a large part of the literature, which started in the late 1980s, has been focused on the calculation of costs for carbon sequestration, mainly in forests, and on calculations of cost savings from its introduction in climate programs. Results from the literature point to cost savings of up to 40%. The small body of literature on transaction costs, mainly attributed to monitoring and verification, indicates that these costs are modest. The literature on policy design is much more scant, and the main part suggests discounting of the carbon sink value to account for the uncertainty. Assessment of equilibrium prices in the many existing voluntary and regulatory carbon sink markets shows a lower price of carbon sink compared with certain abatement of fossil fuels. This can be explained by risk discounting. A few studies suggest contract design for self-enforcement of efficient carbon projects. This has not yet been implemented in carbon sink offsets in practice, the carbon trade of which corresponds to approximately 0.3% of all carbon trade.
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| 2. |
- Aklilu, Abenezer Zeleke
(författare)
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Essays on climate policy and agriculture
- 2019
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis is a compilation of four papers that study energy demand, climate policy, production, and carbon sequestration within transport, agriculture and forestry. The four papers study separate topics, but have in common that they address issues that are relevant to Sustainable Development Goals. The first paper estimates the short-run and long-run price and income elasticities of gasoline and diesel demand in the EU-28 countries. The estimation method uses the ARDL bounds approach and tests the existence of a long-run relationship using data from 1978 to 2013. The study provides methodologically consistent elasticity estimates that are comparable across the EU-28 countries and allow the analysis and forecasting of the effect of a common fuel policy. Applying the estimated elasticities to an analysis of the EU’s 2030 emission and fuel consumption reduction targets shows that the current tax level does not guarantee that the target will be achieved. The second paper estimates the cost to car owners of achieving the EU’s 2050 transport sector emission reduction targets through passenger car switching from fossil fuel-driven to hybrid and electric-driven cars. Costs are calculated as decreases in consumer surplus using a dynamic optimization model. The results show that the total emission reduction cost amounts to 0.37% of the EU’s GDP, and that Germany, Italy, Spain, France, and the UK account for approximately two thirds of the total cost. Hybrid cars are cost-effective means of abatement, while electric cars are a viable means of abatement only when coupled with grid decarbonization. The third paper examines the effect of time spent collecting water for household consumption on rural agricultural production. A household-level fixed effects estimation approach is employed using three-round panel data from Ethiopia. The results show that time allocated for water collection negatively affects agricultural production by displacing productive labor. The fourth paper reviews studies in economics on the efficient design of policies for forest carbon sequestration and compares their findings with the design systems in practice. The paper shows that specific design problems are associated with the heterogeneity of landowners, uncertainty, additionality, and permanence in carbon projects. Discounting the value of the forest carbon sink, optimal contract design, and offset baseline management are recommended in the literature for the management of most design problems.
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| 3. |
- Aklilu, Abenezer Zeleke
(författare)
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Gasoline and diesel demand elasticities: A consistent estimate across the EU-28
- 2016
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Several studies have examined gasoline and diesel demand elasticities. These studies usually cover a single country or a group of countries that belong to a specific economic alliance such as the OECD. Even though consistent elasticities are necessary to analyze and forecast the effects of EU-level fuel policy, there has not yet been a study that provides consistent gasoline and diesel demand elasticity across the EU-28. This study set out to address this literature gap by estimating price and income elasticities for gasoline and diesel. For this purpose, an ARDL Bounds testing approach is used to test the existence of a long-run relationship and estimate the elasticities. The estimation provides short and long-run price and income elasticities of gasoline and diesel demand for the EU-28 countries and shows the countries in which a long-run equilibrium relationship is confirmed. The results show that there is a high variation in elasticity estimates between the EU-28 countries. The estimated long-run elasticities are higher than their short-run counterparts, which is in line with expectations based on the existing literature. The short and long-run income elasticities of gasoline and diesel demand are found to be more elastic than their price equivalents. This implies that if a charge on fuel is designed to decrease emissions by increasing the price, the charge needs to rise at a higher rate than income. An analysis of the EU’s longterm emission and fuel consumption reduction targets shows that, with the current tax scheme, it cannot be guaranteed that emission targets will be achieved and thus a more stringent fuel tax policy is essential.
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| 4. |
- Aklilu, Abenezer Zeleke
(författare)
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Gasoline and diesel demand in the EU: Implications for the 2030 emission goal
- 2020
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Ingår i: Renewable and Sustainable Energy Reviews. - : Elsevier BV. - 1364-0321. ; 118
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Tidskriftsartikel (refereegranskat)abstract
- Methodologically consistent demand estimates are necessary to analyze and forecast the effect of a common fuel policy across the EU-28. This study estimates short-run and long-run price and income elasticities for gasoline and diesel demands using the ARDL Bounds approach that also tests the existence of a long-run relationship using data from 1978 to 2013. The results show that elasticity estimates between the EU-28 countries vary and the estimated long-run elasticities are higher than their short-run counterparts, which is in line with expectations based on the existing literature. The short-run and long-run income elasticities of gasoline and diesel demand are found to be more elastic than their price equivalents implying that if a charge on fuel is designed to decrease emissions by increasing the price, the charge needs to rise at a higher rate than income. An analysis of the EU's 2030 emission and fuel consumption reduction targets using the estimated long-run elasticities shows that, with the current tax scheme, it cannot be guaranteed that emission targets will be achieved and thus a more stringent fuel tax policy is essential.
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| 5. |
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| 6. |
- Gren, Ing-Marie, et al.
(författare)
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Costs and distributional effects of climate transformation of the vehicle fleet in the EU
- 2021
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Ingår i: Climate. - : MDPI. - 2225-1154. ; 9:6
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Tidskriftsartikel (refereegranskat)abstract
- This study estimates the minimum total cost and distributional effects among countries transforming the car fleet in the EU to reduce emissions of carbon dioxides by 2050 by switching from fossil fuel-driven passenger cars to hybrid and electric-driven cars. Minimum cost is estimated using a dynamic optimization model in which costs are calculated as decreases in consumer surplus in the demand for vehicles under given annual increases in travel demand, carbon efficiency and technological improvement of electric cars. Distributional effects are calculated for the cost-effective allocation of costs among the EU member states and UK. Calculations are made for different emission reductions, and the cost for achieving a 60% reduction from the 1990 emission level ranges between 0.13% and 0.61% of the EU’s GDP depending on assumptions about development of travel demand and carbon efficiency. The results indicate a slightly regressive allocation in most scenarios, where the cost share is relatively high for low income countries.
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| 7. |
- Gren, Ing-Marie, et al.
(författare)
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Does Mussel Farming Promote Cost Savings and Equity in Reaching Nutrient Targets for the Baltic Sea?
- 2018
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Ingår i: Water. - : MDPI AG. - 2073-4441. ; 10
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Tidskriftsartikel (refereegranskat)abstract
- Mussel farming has been suggested as a low-cost option for reducing nutrient content in eutrophied waters. This study examines whether mussel farming contributes to reductions in total nutrient abatement cost and increases in equity for achieving nutrient load reduction targets to the Baltic Sea under different international policy regimes (cost-effective, country targets set by the Baltic Sea Action Plan (BSAP), and nutrient-trading markets). A cost-minimizing model is used to calculate the cost savings, and the analytical results show that mussel farming is a cost-effective option only when the marginal abatement cost is lower than for other abatement measures. The numerical cost-minimizing model of the Baltic Sea indicates that the largest abatement cost reductions from introduction mussel farming, approximately 3.5 billion SEK (9.36 SEK = 1 Euro), are obtained under the cost-effective and nutrient-trading systems. Equity, as measured by abatement cost in relation to affordability in terms of gross domestic product, is improved by mussel farming under the cost-effective regime but reduced under the BSAP country targets and nutrient-trading regimes.
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| 8. |
- Gren, Ing-Marie, et al.
(författare)
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Ekonomisk analys av musselodling och multifunktionella åtgärder mot eutrofiering i Östersjön
- 2018
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Effekter på Östersjön av decenniers utsläpp av kväve och fosfor är väl kända och dokumenterade, och internationella överenskommelser har ingåtts för att minskautsläppen. En kostnadseffektiv strategi för att uppnå mål om sådana reduktioner kräver två typer av beslut. Ett är val av åtgärder och fördelning av utsläpp mellan länderna i Östersjöregionen, och det andra berör implementering av styrmedel för att uppnå en kostnadseffektiv lösning. I detta delprojekt har vi studerat kostnadseffektiva strategier vid förekomst av multifunktionella åtgärder som simultant reducerar utsläpp av kväve och fosfor och även andra föroreningar såsomCO2e. En del av projektet har då fokuserat på en relativt ny teknologi, nämligen musselodling. Väsentliga resultat är att musselodling kan minska kostnaderna för att uppnå BSAP (Baltic Sea Action Plan) mål för de nio länderna runt Östersjönmed 1390 miljoner kronor. Emellertid är upptaget av näringsämnen med musselodling osäkert. Vid beaktande av denna osäkerhet visar det sig dock musslornas kostnadsfördel stärks då totala reningskostnaden minskar med 2090 miljoner kr när musslor ingår som en åtgärd. Anledningen är att effekter av andra åtgärder, såsom ändrad markanvändning inom jordbruket, är mer osäkra än effekter av musselodling. Ett annat resultat är att musselodling bidrar något till en mer rättvis fördelning av kostnader mellan länderna i relation till deras totala inkomster. Musselodling, liksom flera andra multifunktionella åtgärder, kräver dock att stapling av reduktion av olika ämnen är möjlig. Med stapling menas att en åtgärd får tillgodoräknas reduktioner av utsläpp inom ramen för regleringar av flera enskilda utsläpp. Om detta inte tillåts kan t.ex. musselodling beaktas enbart förreduktion av fosfor och inte kväve. Resultat i detta projekt pekar på att kostnaderna kan öka med 6950 miljoner när stapling inte tillåts och att de är särskilt höga under den nuvarande överenskommelsen om reduktioner för enskilda länder jämfört meden kostnadseffektiv lösning. Kostnaden av att inte tillåta stapling blir ännu högre när vi också beaktar att en del åtgärder, såsom minskad djurhållning, dessutom får effekter på utsläpp av klimatgaser, och kan då uppgå till 15230 miljoner kr. Sammantaget kan sägas att resultaten som presenteras i denna rapport pekar på att kostnaderna för BSAP mål om kvävereduktioner kan reduceras om musselodling inkluderas, av en övergång från nuvarande länder specifika mål till en kostnadseffektiv strategi, och om stapling tillåts där multifunktionella åtgärder kan tillgodoräknas flera positiva miljöeffekter.
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| 9. |
- Gren, Ing-Marie, et al.
(författare)
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Forest carbon sequestration, pathogens and the costs of the EU's 2050 climate targets
- 2018
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Ingår i: Forests. - : MDPI. - 1999-4907. ; 9:9
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Tidskriftsartikel (refereegranskat)abstract
- Carbon sequestration is suggested as a low-cost option for climate change mitigation, the functioning of which can be threatened by pathogen infestation. This study calculates the effects of infectious pathogens on the cost of achieving the EU's 2050 climate targets by combining the so-called production function method with the replacement cost method. Pathogens are then assumed to affect carbon sink enhancement through the impact on productivity of forest land, and carbon sequestration is valued as the replacement for costly reductions in emissions from fossil fuels for reaching the EU's 2050 climate targets. To this end, we have constructed a numerical dynamic optimization model with a logistic forest growth function, a simple allometr+ic representation of the spread of pathogens in forests, and reductions in emissions from fossil fuels. The results show that the annual value of forest carbon sequestration ranges between approximately 6.4 and 14.9 billion Euros, depending on the impact and dispersal of pathogens. Relatively large values are obtained for countries with large emissions from fossil fuels, e.g., Germany, France, Spain and Italy, which also face costs of pathogen together with countries with large forest area, such as Romania. © 2018 by the authors.
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| 10. |
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