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Cities, which are the primary economic engine and emission source in China, accounted for 70% of the country's total energy-related CO2 emissions in 2010. The development of low-carbon cities has become the first priority of policymakers. Low-carbon cities enhance competition in the long run but also inevitably impose costs in the short term. To investigate the associated abatement costs of CO2 toward low-carbon cities, we apply the directional distance function on panel data covering 104 Chinese prefecture-level and above cities from 2001 to 2014. Our results show that, on average, the cost to control one ton of CO2 is 1070 CNY, or equivalent to 129 US $. This cost shows great individual heterogeneity and time variation; the year 2011 witnesses a significant reversal of the marginal abatement cost of CO2. It is because China begins implementing a mandatory CO2 intensity reduction target for the 12th Five-Year Plan (FYP). We establish a four-quadrant matrix framework to identify low-carbon cities and track the low-carbon transition path based on emission indicators (total emissions, per capita emissions, and emission intensity) and abatement cost pairs. Among the four types of emission-cost patterns, more cities are scattered in the "low emission-level and high abatement-cost" quadrant, and eight cities are clarified as low-carbon cities in 2014. In terms of per capita emissions and abatement costs, the "high-per-capita-emission and low-abatement-cost" club include five cities in 2001, while this number rises to seven members in 2014. Most cities are also located in the "low-emission-intensity and low-abatement-cost" zone when the relationship between CO2 intensity and abatement cost is considered. Our results call for policymakers' attention to hot spots and emission-based, per capita emission-based, or intensity-based city-level decarbonizing policies. [ABSTRACT FROM AUTHOR]

This paper examines empirically the importance of equity preferences for the formation of international environmental agreements (IEA) for transboundary pollution control. Although it has been shown theoretically that the existence of equity preferences among countries considering an IEA increases the chances for formation and stability of a coalition, empirical assessments of such preferences have been limited to climate change mitigation and single‐country studies. We consider the case of marine plastic pollution, of which a large share consists of food and beverage containers, representing a transboundary pollution control problem of increasing policy concern, with properties that lead to distinct considerations for equity and the sharing of abatement costs. We employ a coordinated choice experiment in the United Kingdom and United States to assess preferences for abatement‐cost allocations in a marine plastics IEA. Pairs of cooperating countries and the relative allocation of abatement costs are varied experimentally. Results show systematic aversion to both advantageous and disadvantageous inequality with respect to abatement costs but also that the relative strength of advantageous and disadvantageous inequality aversion differs across countries. Across both countries, there is evidence that left‐leaning voters generally favor more equal international sharing of abatement costs. Differences of these results from the case of greenhouse gas emission reduction, and implications for current efforts to establish a legally binding global treaty on marine plastic pollution, are discussed. [ABSTRACT FROM AUTHOR]

The carbon quota allocation scheme serves as the fundamental backbone for ensuring the smooth and sustainable operation of the carbon market. Despite numerous prior studies, ongoing debates persist regarding the impact of historical emissions, both positive and negative, on carbon quota allocation. Utilizing the four indicators of historical emissions (both positive and negative), egalitarianism, payment capability, and emission efficiency, this paper employs the entropy method to develop 22 distinct carbon quota allocation plans tailored for China’s provincial regions in the year 2030. Subsequently, utilizing the shadow price method, the study calculates the emission reduction costs of each province under each allocation scheme, thereby evaluating the carbon quota plans from the perspective of emission reduction costs. Finally, a comparative analysis is conducted to assess the impact of both positive and negative historical emissions on the carbon quota allocation scheme, and the paper identifies the carbon quota allocation approach that minimizes the overall emission reduction cost for China. The findings suggest that: 1) allocating more allowances to provinces with higher historical emissions can effectively reduce emission reduction costs for each province; 2) the most cost-effective option for carbon quota allocation is a scheme that takes into account both egalitarian and historical emission criteria; 3) in order to further decrease the overall cost of emissions reduction, it is crucial to achieve comprehensive coverage of the carbon market and facilitate inter-provincial carbon quota trading.

While previous studies have pointed to their economic significance, terminal operations are frequently ignored in transport appraisal and policy analysis. This paper develops a generic model framework for estimating noise emissions from container terminal operations to derive key metrics for port policy analysis. A novel microeconomic production model that accommodates basic acoustics is proposed. Based thereon, abatement costs are derived using optimization and marginal external costs and efficiency scores are estimated using panel data frontier estimation. The virtues of the modeling approach are illustrated using noise meter readouts combined with port activity and meteorological data from the port of Oslo, Norway. • Fills research gap regarding marginal external noise costs of terminal operations. • First treatment of non-material pollutants in environmental production analysis. • Development of a generic production analysis framework for noise pollution. • Empirical analysis of container handling within the port of Oslo, Norway. • Estimation of marginal external and abatement costs and environmental efficiency. [ABSTRACT FROM AUTHOR]

The increase in atmospheric methane (CH 4 ) level directly contributes to approximately one-fifth of global mean temperature rise since preindustrial era, only next to CO 2 . Global anthropogenic CH 4 emissions has augmented by nearly three-fifths during the past five decades; due to climate change, natural CH 4 emissions are plausibly projected to increase in the foreseeable future. Thereby, examining and projecting long-term natural and anthropogenic CH 4 emissions and sinks are imperative. According to peer-reviewed literatures as information sources for this compendium, we recapitulate natural and anthropogenic CH 4 emissions, summarize available abatement approaches and their mitigation potentials, and investigate and encapsulate economic costs and social benefits of reductions. We list current challenges in realizing CH 4 emissions reductions and suggest possible technical pathways for future mitigation., Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (Copyright © 2024 Elsevier Ltd. All rights reserved.)

This study proposes the use of marginal abatement cost curves to calculate environmental damages of agricultural systems in China's Loess Plateau. Total system costs and revenues, management characteristics and pollution attributes are imputed into a directional output distance function, which is then used to determine shadow prices and abatement cost curves for soil and nitrogen loss. Marginal abatement costs curves are an effective way to compare economic and conservation tradeoffs when field-specific data are scarce. The results show that sustainable agricultural practices can balance soil conservation and agricultural production; land need not be retired, as is current policy.

This paper examines the costs of emissions abatement through various types of projects financed under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Using project data, cost functions are estimated applying alternative functional forms. Results show that the average cost of abatement decreases with the volume of abatement, showing economies of scale and suggesting that reducing emissions through small projects is relatively expensive. Results also show significant variation in the costs of abatement by project type and location. Nevertheless, the observed distribution of project investments does not closely match the relative cost structure, either by location or project type. Renewable energy projects accounted for 62% of the projects even though they had the second highest cost. Most of the CDM projects are located in emerging economies, principally China, India, and Brazil, even though the fixed costs of establishing CDM projects in these countries are higher than in many other developing countries. Significantly, while much of the conceptual and applied numerical literature concerning greenhouse gas abatement policies relies on presumptions about the structure of abatement cost curves, these findings suggest that comparative advantage is only one of several factors driving CDM investments and that investors hold additional preferences about project location and project type. Finally, results indicate a general, though noncontinuous, downward trend in the costs of abatement for new CDM projects.

Drained peatland currently contributes 7.5% of Germany's total national greenhouse gas emissions. The National Peatland Protection Strategy adopted by the German government in 2022 recognizes that these emissions need to be reduced significantly to meet the country's climate change mitigation commitments. The present study employs a global dynamic computable general equilibrium model to assess the economic and greenhouse gas emission impacts of alternative agriculture-focused peatland rewetting scenarios for Germany up to 2030. In contrast to partial-analytic approaches, the global general equilibrium approach allows to take consistent account of economic ripple-on effects and carbon leakage effects triggered by peatland rewetting. The results suggest that in the medium term towards 2030 a reduction in annual emissions from agricultural peatland use by up to 45% are attainable at marginal private abatement costs between 27 and 61 Euro/tCO 2 e. Carbon leakage effects due to induced indirect land use change in Germany and the rest of the European Union reduce the global net emission reduction impact by 0.7 to 1.0% of the direct emission reduction. The effects on food prices remain small in all scenarios. In conclusion, a sizable reduction of Germany's land-use-related emissions is achievable at a low macroeconomic cost by moving beyond the moderate ambitions of the National Peatland Restoration Strategy. [ABSTRACT FROM AUTHOR]

This paper considers the success of the Montreal Protocol on Substances that deplete the Ozone Layer in addressing an incompletely understood global environmental hazard under risk and uncertainty, and its implications for and interactions with other global environmental protection regimes, particularly the Kyoto Protocol. We illustrate a method for assessing joint impacts of projects and policies designed to reduce environmental damage in the absence of a coordinated legal and regulatory framework. Further, we note areas for improvements in coordination and efficiency across the treaties.

Natura 2000 areas are designated according to the EU's Birds and Habitats Directives in order to protect particular habitats and species. A variety of these habitats and species are particularly sensitive to deposition of nitrogen caused by ammonia emissions. Livestock farming is the primary source of this pollution. The purpose of this paper is to compare the costs of reaching the ammonia emission targets for different livestock farms near Natura 2000 sites in the Netherlands, Germany (Schleswig-Holstein), and Denmark. These countries have some of the highest NH 3 deposition rates in Europe, and Germany in particular will have to implement new measures to reach the NEC requirements for 2030. This will also benefit nature sites in Denmark as a large share of the ammonia emissions is dispersed over long distances. The general regulation includes implementation of BAT technologies and emission ceilings. The analysis looks at regulatory aspects, the emission requirements and the cost of implementing the technologies to reduce emissions further. The selected case farms are a finisher farm and a dairy farm, and the distance to a Natura 2000 site is 400 and 2000 m. In all three countries, relatively few livestock farms are situated near or inside Natura 2000 areas. The regulatory approach is very different in the three countries and key issues are: additional deposition from projects, neighbouring livestock farms (cumulation), the inclusion of background deposition and the use of the critical loads concept. The Dutch PAS system is interesting as projected reductions in emissions are distributed as additional "room for development" today. The costs for the case farm with finishers in Schleswig-Holstein are the highest as the Filter Decree requires the use of air scrubbers. The findings suggest that farms 400 m from a Natura 2000 site in the Netherlands face lower and less costly constraints than in the other countries, whereas the opposite is the case for farms 2000 m from Natura 2000 sites. The requirements near Natura 2000, where strict requirements apply, are so high that farms will expand at a different site instead. • The regulatory approach used in the three countries is very different. • The costs for farms wanting to expand near Natura 2000 sites are high in all three regions. • The additional annual costs for farms expanding near Natura 2000 sites are between €0 and €32,000 per farm per year depending on region and distance. • When farms want to expand far from Natura 2000 sites the costs are highest in the Netherlands. [ABSTRACT FROM AUTHOR]

Purpose: The interpretation of differences between alternative systems in life cycle assessment (LCA) can be problematic when different impact categories point to different directions. Using shadow prices is one way to overcome this problem, as the results are expressed in a monetary value, making comparison easy for decision makers. However, for the International Reference Life Cycle Data System midpoint impact categories 'water depletion' and 'land use', the shadow prices were missing. In the current paper, these were derived from literature sources. Methods: Abatement-based shadow prices (Pa) were established from the costs of the abatement measures minus the additional benefits. The damage-based shadow price (Pd) was based on the economic damage per unit of impact. Damage to ecosystems or human health was not included, as monetary values were lacking. As a consequence, Pd is an underestimation. Pa prices for land use, based on soil organic carbon (SOC) depletion, were derived from the cost of abatement measures like adding organic matter to agricultural soil or changing tillage. The response of crop yield to SOC, for several countries and crops, was used for the Pd calculation. For water depletion, Pa was based on water saving measures and desalination techniques, and Pd was based on economic losses due to water unavailability. Results and discussion: The following shadow prices were found for SOC depletion: Pa of 0.10 € kg−1 SOC and Pd of 0.0286 € kg−1 SOC. For water depletion, Pa of 15.8 € m−3 eq. was based on replacing turf with less-water-consuming planting. The value of water for irrigation was the base for the Pd 5.17 € m−3 eq. Freshwater and SOC Pa values unexpectedly exceeded the Pd values. This originated partly from the methods used. Pd was established by averaging marginal costs, while Pa used the most expensive measure, and this may lead to Pa exceeding Pd. Furthermore, the damage-based Pd for SOC and water depletion was mainly based on crop yield, and other types of ecological or societal damage will exist. Including these damages that lacked reliable data will increase Pd. Conclusions: The shadow prices presented here are the first science-based global estimates. For LCA, the Pd values should preferably be used. The values are regarded as conservative estimates since only economic damage was included as other damages like ecological damage could not be monetised. The estimated shadow prices were derived for impacts where economic data is relatively scarce, and this limited the quality of the estimates. More extensive studies are needed to further improve the quality of the estimated prices. [ABSTRACT FROM AUTHOR]

As an important supplementary mechanism to the Emissions Trading Scheme (ETS), the Chinese Certified Emission Reduction (CCER) scheme is of profound significance for achieving low-cost emission reduction and renewable energy goal. However, limited literature discusses the role of the CCER scheme. To explore to what extent will the CCER scheme save cost for China's carbon trading system, this paper establishes a two-level decision sub-game led by the national government and compares the cost-saving effect before and after introducing the CCER scheme. The empirical results from China confirm the cost-saving effect of the CCER scheme while achieving the homogeneity and equivalence of carbon emission quotas and CCER quotas are the prerequisite for the minimum national aggregate costs. The equilibrium CCER trading price is linked to three factors, including the offset rate of CCER quotas, the total carbon emission quotas and the reciprocal of the declaration cost coefficient. Depending on the actual situation in China, the ceiling offset rate of CCER quotas should not exceed 6%. Even so, the national government still needs to clarify the potential provinces and direction of CCER projects to ensure that the actual offset rate could be as close as possible to the optimal value. These findings can provide guidance for policy makers in the design of the national carbon trading system. • A two-level decision sub-game led by the central government is established. • The cost-saving effect of the CCER scheme is confirmed. • The optimal and ceiling offset rate of CCER quotas is obtained. • The development potential and direction of CCER projects are discussed. [ABSTRACT FROM AUTHOR]

Abstract In this paper, we adopt a non-radial directional distance function to analyze the efficiency and shadow price of CO 2 emissions of coal-fired power plants. Using a sample of Shanghai's 20 coal-fired power plants, we find that the efficiency performance of power plants remained steady during the period 2007–2010. On average, the carbon abatement costs of Shanghai's power plants increased from 20.58 yuan/ton to 39.67 yuan/ton during 2007–2010. Although the average shadow price of the power plants increased during the period, the price was still well below shadow prices for the energy consumption of the industries, and a little lower than the trading price in the ETS markets. In addition, the paper discusses the implications of the findings. [ABSTRACT FROM AUTHOR]

This paper explores potential land-sector policies and practices that could help meet New Zealand’s 2030 Paris Agreement target of reducing their greenhouse gas emissions by 30% from 2005 levels while simultaneous achieving improvements in freshwater quality. We use an integrated model of the country’s agricultural and forestry sectors to explore the economic and environmental outcomes for 21 freshwater and climate change policy alternatives and mitigation target scenarios. The agri-environmental model estimates are then included in a multidimensional decision space framework that incorporates the risk attitude of policy-makers and uses an ordered weighting average model to evaluate potential policy pathways. We find policies that feature afforestation of marginal land are often preferred over because they provide a range of co-benefits such as carbon sequestration and reduced sedimentation and nutrient loss at relatively low cost. On the contrary, policies that only target a specific practice or pollutant are often less preferred because they fail to provide ample spill overs relative to their cost savings.

The European Emissions Trading System (EU ETS) is the central pillar of the EU response against climate change. This trading mechanism is considered, from the theoretical point of view, as the most cost-effective method to reduce GHG. However, previous studies show that the agents who participate in these markets may behave in a way that may lead to inefficient CO2prices, creating doubts about the static and dynamic efficiency of the system. This article analyses these possible anomalies by first trying to model the ETS in a more realistic way, addressing some of the limitations of previous models, and second, by comparing the results with real market transactions. For this, a bottom-up, multi-sector model has been built, which represents the EU ETS in an integrated, cross-sectoral way, paying particular attention to the interactions among the most emissions intensive industries. The results show the benefits of this modelling approach and how it better reflects real market conditions. Some preliminary conclusions regarding the behaviour of the agents in the ETS market are also presented. POLICY RELEVANCE Low allowance prices in the EU ETS have put into question the dynamic efficiency of the EU ETS system, prompting various ideas for structural reform. However, determining the right reform also requires estimating correctly how agents will respond to it. This article proposes a tool to realistically simulate the EU ETS under the assumption of rational agents, and compare it to real market outcomes, in order to understand better the behaviour of agents in this carbon market, and therefore how to design better policies. [ABSTRACT FROM AUTHOR]

• Requisite utilization for EV to deliver efficiency abatement cost outcomes greatly exceed existing trends. • Complete electrical grid decarbonization may be insufficient to produce efficient abatement cost outcomes for EVs. • Adopting procurement incentivize programs that reward EV utilization addresses existing policy inefficiencies. • Doing so also addresses longstanding distributional concerns surrounding EV incentive programs. Electric vehicles (EVs) are one solution to creating a transportation system that is more energy efficient, fosters greater energy security, and is less polluting. Existing public policy reflects this sentiment. Over the last two decades, various government-sponsored policies have been adopted to stimulate EV sales. The most notable – and ubiquitous – of these are procurement incentives. However, the effectiveness of this policy as a pathway to emissions reductions depends on the cost-to-emissions advantage EVs offer over gasoline powered vehicles. Under what conditions is this advantage realized? Using publicly available data, we estimate the precursors – with foci on aggregate mileage and battery longevity - required for EVs to achieve an array of abatement cost thresholds. Our findings are fourfold. First, we illustrate that increased aggregate vehicle utilization – ceteris paribus – decreases implied abatement cost. Second, we find that, after accounting for battery replacements, requisite aggregate utilization for EV-incentive policies to achieve cost parity with alternatives can greatly exceed existing ownership trends, depending on the targeted abatement cost and vehicle ownership period. Third, we document that – owing to their sole emphasis on EV procurement rather than utilization – existing policy fails to accommodate these preconditions. Fourth, we demonstrate that electrical grid decarbonization may be insufficient to produce efficient abatement cost outcomes for EVs. Addressing these inefficiencies necessitates – we conclude – adopting procurement incentivize programs that reward utilization rather than acquisition alone. Doing so would also address longstanding distributional concerns surrounding such programs. [ABSTRACT FROM AUTHOR]

This paper presents the application of an optimization model developed for Lake Rozkoš, which is located in a sub-basin of the Elbe River basin in Bohemia. Two scenarios for achieving environmental targets (required status of the lake water) were formulated by specialists, together with an assessment of the investment and operating costs of the projects. The optimal solution (investment program) for 41 pollutermunicipalities, where 166 coalitions can be considered (41 individual and 125 joint wastewater treatment plants), was computed. The results suggest that the modelling method presented in this paper has the potential to increase the role of economic considerations in the early stages of planning and decision-making about water treatment programs. In this case, more than 20% of the costs could be saved when selected joint wastewater treatment plants are realized. The approach has the potential to contribute to increasing cost-effectiveness of allocation of financial sources from national and European Union sources. [ABSTRACT FROM AUTHOR]

As part of the Paris climate agreement, countries have submitted (Intended) Nationally Determined Contributions (NDCs), which includes greenhouse gas reduction proposals beyond 2020. In this paper, we apply the IMAGE integrated assessment model to estimate the annual abatement costs of achieving the NDC reduction targets, and the additional costs if countries would take targets in line with keeping global warming well below 2 °C and “pursue efforts” towards 1.5 °C. We have found that abatement costs are very sensitive to socio-economic assumptions: under Shared Socioeconomic Pathway 3 (SSP3) assumptions of slow economic growth, rapidly growing population, and high inequality, global abatement costs of achieving the unconditional NDCs are estimated at USD135 billion by 2030, which is more than twice the level as under the more sustainable socio-economic assumptions of SSP1. Furthermore, we project that the additional costs of full implementation of the conditional NDCs are substantial, ranging from 40 to 55 billion USD, depending on socio-economic assumptions. Of the ten major emitting economies, Brazil, Canada and the USA are projected to have the highest cots as share of GDP to implement the conditional NDCs, while the costs for Japan, China, Russia, and India are relatively low. Allowing for emission trading could decrease global costs substantially, by more than half for the unconditional NDCs and almost by half for the conditional NDCs. Finally, the required effort in terms of abatement costs of achieving 2030 emission levels consistent with 2 °C pathways would be at least three times higher than the costs of achieving the conditional NDCs – even though reductions need to be twice as much. For 1.5 °C, the costs would be 5–6 times as high. [ABSTRACT FROM AUTHOR]

After the initiation of carbon trading pilots in seven provinces and cities in China, issues of their effectiveness and impact on economy, environment and export are of great significance to policy makers, managers and experts of environmental science. To respond to these issues, we first define the concepts of carbon emission reduction, energy saving and low-carbon economy and discuss policy measures and economic instruments related to carbon emission reduction. Focusing on "quantity control" and "price control", we analyze in detail their implementation process and actual effectiveness in both theoretical and practical points. Also, we present in this paper the mechanism and pathways of carbon emission reduction and their inspiration to China from macro, micro and technical perspectives. We then review the related literature and comment how these academic results can be used to help China to achieve its carbon reduction target at optimal economic costs. Finally, we point out the deficiencies and possible theoretical gaps in the previous studies and present some important issues that need further academic exploration. [ABSTRACT FROM AUTHOR]

Crop residue-based bioenergy (CRB) is a green replacement for fossil fuels and an effective way of utilizing crop residues. Understanding CRB's GHG reduction effects is critical for predicting its contributions to carbon neutrality. However, many studies have focused on single products or regional assessments, and results remain uncertain and lacking in systematic examination of the diversity in products, feedstock types and their supply. Therefore, this paper systematically investigates the GHG reduction efficiency, driving factors and abatement costs of principal CRB products using a database of 225 cases composed of 71 carbon trading projects and 154 projects analyzed in scientific publications. The results show that bio-power and/or heat (bio-P&H) is highly efficient (689 kg CO 2 e/t dry CR) and economical (269 $/t CO 2 e) in reducing GHG emissions, but liquid biofuels is not encouraged because of its inefficient performance. Plant size and feedstock collection radius significantly affected GHG reductions of bio-P&H and liquid biofuel. Recommended plant sizes and feedstock types for CRB production were identified from environmental and economic perspectives. Overall, these results clarify the patterns and driving factors of GHG reduction efficiency and abatement costs of various CRB products, providing a framework for optimizing CRB development to combat climate change. [Display omitted] • AsSessing GHG reduction patterns of various crop residue-based bioenergy products. • Comprehensive assessment of the environmental and economic performance. • Identifying the impacts of key factors influencing GHG reduction efficiency. • A meta-analysis based on both scientific publications and project datasets. • Bio-power & Heat shows good GHG reduction efficiency with lower abatement cost. [ABSTRACT FROM AUTHOR]

This study evaluates the technical feasibility and the abatement costs of the use of CO 2 that is generated by the fermentation of ethanol produced in the South-Central region of Brazil to perform enhanced oil recovery using CO 2 (CO 2 -EOR) in oil fields of the Campos basin. This mitigation alternative includes the capture of CO 2 , its transportation to the location of use and injection. The fermentation of ethanol produces a high concentration stream of CO 2 and therefore has a low cost of capture. The technical feasibility analysis demonstrates the potential to use approximately 80% of the CO 2 that is emitted by the distilleries. The abatement costs vary with the costs of dehydration, compression and injection of CO 2 and with the type of investor in the CO 2 -EOR infrastructure, which could be an oil company or a set of distilleries. When an oil company invests in the EOR infrastructure, the average abatement cost is approximately US$ 200 per tonne of CO 2 . When distilleries are the investors, the average abatement cost is approximately US$ 350 per tonne of CO 2 . This disparity is because the revenue from selling the oil that is produced by EOR is much higher than the revenue from selling the CO 2 at the wellhead. [ABSTRACT FROM AUTHOR]

Natural peatlands are the world's most area-effective carbon sinks. However, over 90% of German, 40% of European and 10–20% of global peatlands have been degraded and converted into carbon sources, primarily because of agricultural drainage. Against this background, rewetting and more sensible uses of peat soils for agriculture are internationally recognized as effective potential options to mitigate greenhouse gas (GHG) emissions. This paper presents estimates of the GHG mitigation potential and abatement costs of different peatland management options by using the example of farm models that represent typical farm types in an intensive grassland-use peatland region in southern Germany. Therefore, an optimization model at the farm level that includes the emissions from all relevant sources in the production process is used. The current net GHG emissions of the farm models range from 10 to 12.9 tCO 2 e ha − 1 a − 1 , of which the peat soil-borne emissions make up a noticeable share. The rewetting and conversion of medium-drained grassland into wet grassland lead to considerable reductions of GHG emissions. However, in intensively managed dairy farms, the full emission mitigation potential of these peatland management options is not realized, because necessary adaptations increase emissions from other sources. Because of its low GHG mitigation potential, the conversion of arable land into medium drained intensive grassland leads to high abatement costs of up to 92 €/tCO 2 e, while the abatement costs of the rewetting and conversion into wet grassland range from 5 to 57 €/tCO 2 e. The results vary by farm type, intensity of agricultural peatland use to date and the share of peatland area on a farm. This stresses the need for individual farm approaches and impact analyses for planned peatland renaturations. The findings also show that the overall costs to compensate farmer income loss from planned peatland renaturations will be as high as they are for more intensively managed dairy farms, which will be located in and affected in the respective area. The modelling approach presented has the potential to be adapted to the needs of peatland farm systems in other countries of the temperate zone. [ABSTRACT FROM AUTHOR]

Biochar may become a key instrument at the nexus of managed carbon flows, including value added potential in soil amelioration, climate protection, energy supply and organic waste management. This article reflects the potential use of biochar in agriculture from the perspective of the farming economy. Biochar soil amendment in crop production is regarded as a win–win situation, both for assumed increases in cropping yields and carbon sequestration in soil organic matter. However, an extensive review on biochar effect on crop yield has not yet been able to provide compelling arguments to foster more widespread biochar use in cropping systems. Furthermore, the half-lives of biochars are frequently shorter than commonly suggested, and other financial incentives, such as including biochar in carbon credit systems, are not in place to compensate for the extra cost of applying biochar. As a result, we conclude with a somewhat skeptical view for a widespread use of biochar in agriculture in the near future. [ABSTRACT FROM AUTHOR]

Publicly announced greenhouse gas (GHG) mitigation targets and emissions pricing strategies by individual governments may suffer from inherent commitment problems. When emission prices are perceived as short-lived, socially cost-effective upfront investment in climate technologies may be hampered. This paper compares the social abatement cost of a uniform GHG pricing system with two policy options for overcoming such regulatory uncertainty: One combines the emissions pricing with a state guarantee scheme whereby the regulatory risk is borne by the government and one combines the system with subsidies for upfront climate technology investments. A technology-rich computable general equilibrium model is applied that accounts for abatement both within and beyond existing technologies. Our findings suggest a tripling of abatement costs if domestic climate policies fail to stimulate investment in new technological solutions. Since the cost of funding investment subsidies is found to be small, the subsidy scheme performs almost as well as the guarantee scheme. [ABSTRACT FROM AUTHOR]

In the context of the negotiations under the United Nations Framework Convention on Climate Change and its accompanying Kyoto Protocol, participating nations have recognized the need for formulating Nationally Appropriate Mitigation Actions (NAMAs). These NAMAs allow countries to take into account their national circumstances and to construct measures to mitigate GHG emissions across economic sectors. Israel has declared to the UN that it would strive to reduce its GHG emissions by 20% in the year 2020 relative to a ‘business as usual' scenario. With its growing population and an expanding economy, the national GHG mitigation plan was developed to draw a course for steering the Israeli economy into a low-carbon future while accommodating continued economic growth. The article describes relevant policy measures, designed to aid in the implementation of the plan and compares them with measures being undertaken by different countries. Emphasis is placed on analysing the progress to date, opportunities and barriers to attaining the ultimate GHG emissions reduction goals. The objective of this article is to contribute to the knowledge base of effective approaches for GHG emissions reduction. We emphasize the integrated approach of planning and implementation that could be especially useful for developing countries or countries with economies in transition, as well as for developed countries. Yet, in the article we argue that NAMAs’ success hinges on structured tracking of progress according to emerging global consensus standards such as the GHG Protocol Mitigation Goals Standard. Policy relevance: The study is consistent with the NAMA concept, enabling a country to adopt a ‘climate action plan’ that contributes to its sustainable development, while enabled by technology and being fiscally sound. The analysis shows that although NAMAs have been framed in terms of projects, policies, and goals, current methodologies allow only the calculation of emission reductions that can be attributed to distinct projects. Currently, no international guidance exists for quantifying emissions reduction from policy-based NAMAs, making it difficult to track and validate progress. This gap could be addressed by an assessment framework that we have tested, as part of a World Resources Institute pilot study for an emerging voluntary global standard. [ABSTRACT FROM PUBLISHER]

An equitable burden-sharing framework is essential for the successful collective efforts to cope with climate change. Various carbon emission rights allocation schemes have been proposed in the international community. This paper focuses on the comparison among different schemes with the Equitable Access to Sustainable Development (EASD) model. The EASD model consists of four modules: a global target module, an allocation module, a carbon equity module and an abatement costs module. EASD integrates 20 key allocation schemes. For a selected scheme, country-specific allowance trajectories are provided in accordance with the global emission pathway. Then the carbon equity after allocation is measured by carbon Gini coefficient defined by per capita cumulative emission from the global rather than the narrower national perspective. A reduction tradeoff relationship is also performed among country groups. With marginal abatement cost curves, regional abatement costs are further analyzed. Our studies show that EASD would be a powerful policy-tool to profoundly compare and assess emission rights allocation schemes. [ABSTRACT FROM AUTHOR]

This paper derives a production analysis framework for modeling secondary benefits from environmental regulation, i.e. induced changes in yet unregulated pollutants. We emphasize the various ways in which the producers can respond to environmental regulations, and evaluate them in terms of their costs and their generation of secondary benefits. An application on the US electricity sector illustrates our main point: In our case, abatement technologies that reduce regulated emissions while leaving the plants' unregulated emissions unchanged appear to be among the least costly producer responses to the existing sulfur and nitrogen regulations, but at the expense of limited secondary reductions in carbon dioxide emissions. This finding raises questions about the magnitude of the much debated secondary benefits from future regulations on carbon dioxide emissions, since similar abatement technologies are currently being developed for carbon dioxide. With new environmental issues emerging over time, our findings suggest that regulators should signal the possibilities of new regulations on connected pollutants to producers. Such information may be relevant for producers when choosing current abatement strategies-with minor cost increases to deal with today's issues, overall compliance costs for near-future environmental problems may be lowered. [ABSTRACT FROM AUTHOR]

We assess the physical potential to reduce nutrient loads from waste water treatment plants in the Baltic Sea region and determine the costs of abating nutrients based on the estimated potential. We take a sample of waste water treatment plants of different size classes and generalize its properties to the whole population of waste water treatment plants. Based on a detailed investment and operational cost data on actual plants, we develop the total and marginal abatement cost functions for both nutrients. To our knowledge, our study is the first of its kind; there is no other study on this issue which would take advantage of detailed data on waste water treatment plants at this extent. We demonstrate that the reduction potential of nutrients is huge in waste water treatment plants. Increasing the abatement in waste water treatment plants can result in 70 % of the Baltic Sea Action Plan nitrogen reduction target and 80 % of the Baltic Sea Action Plan phosphorus reduction target. Another good finding is that the costs of reducing both nutrients are much lower than previously thought. The large reduction of nitrogen would cost 670 million euros and of phosphorus 150 million euros. We show that especially for phosphorus the abatement costs in agriculture would be much higher than in waste water treatment plants. [ABSTRACT FROM AUTHOR]

This paper analyses the effect of different emission metrics and metric values on timing and costs of greenhouse gas mitigation in least-cost emission pathways aimed at a forcing level of 3.5 W m ^−2 in 2100. Such an assessment is currently relevant in view of UNFCCC’s decision to replace the values currently used. An emission metric determines the relative weights of non-CO _2 greenhouse gases in obtaining CO _2 -equivalent emissions. For the first commitment period of the Kyoto Protocol, the UNFCCC has used 100 year global warming potential (GWP) values as reported in IPCC’s Second Assessment Report. For the second commitment period, the UNFCCC has decided to use 100 year GWP values from IPCC’s Fourth Assessment Report. We find that such a change has only a minor impact on (the optimal timing of) global emission reductions and costs. However, using 20 year or 500 year GWPs to value non-CO _2 greenhouse gases does result in a significant change in both costs and emission reductions in our model. CO _2 reductions are favored over non-CO _2 gases when the time horizon of the GWPs is increased. Application of GWPs with time horizons longer than 100 year can increase abatement costs substantially, by about 20% for 500 year GWPs. Surprisingly, we find that implementation of a metric based on a time-dependent global temperature potential does not necessary lead to lower abatement costs. The crucial factor here is how fast non-CO _2 emissions can be reduced; if this is limited, the delay in reducing methane emissions cannot be (fully) compensated for later in the century, which increases total abatement costs.

This paper provides an analysis of co-benefits for traditional air pollutants made possible through global climate policies using the Greenhouse Gas and Air Pollution Interactions and Synergies (GAINS) model in the time horizon up to 2050. The impact analysis is based on projections of energy consumption provided by the Prospective Outlook for the Long term Energy System (POLES) model for a scenario without any global greenhouse gas mitigation efforts, and for a 2°C climate policy scenario which assumes internationally coordinated action to mitigate climate change. Outcomes of the analysis are reported globally and for key world regions: the European Union (EU), China, India and the United States. The assessment takes into account current air pollution control legislation in each country. Expenditures on air pollution control under the global climate mitigation regime are reduced in 2050 by 250 billion € when compared to the case without climate measures. Around one third of financial co-benefits estimated world-wide in this study by 2050 occur in China, while an annual cost saving of 35 billion (Euros) € is estimated for the EU if the current air pollution legislation and climate policies are adopted in parallel. Health impacts of air pollution are quantified in terms of loss of life expectancy related to the exposure from anthropogenic emissions of fine particles, as well as in terms of premature mortality due to ground-level ozone. For example in China, current ambient concentrations of particulate matter are responsible for about 40 months-losses in the average life expectancy. In 2050, the climate strategies reduce this indicator by 50 %. Decrease of ozone concentrations estimated for the climate scenario might save nearly 20,000 cases of premature death per year. Similarly significant are reductions of impacts on ecosystems due to acidification and eutrophication. [ABSTRACT FROM AUTHOR]

Climate change is an important threat to human society. Agriculture is a source of greenhouse gases (GHG), but it also provides alternatives to confront climate change. The expansion of intensive agriculture around the world during recent decades has generated significant environmental damages from pollution emissions. The spatial distribution of emissions is important for the design of local abatement measures. This study makes an assessment of GHG emissions in an intensive agricultural area of Aragon (Spain), and then an economic optimization model is developed to analyze several GHG mitigation measures. The results indicate that adequate management of manure, emissions limits, and animal production restrictions are appropriate measures to abate pollution. Economic instruments such as input and emission taxes could be only ancillary measures to address nonpoint pollution problems. Suitable pollution abatement policies should be based on institutional instruments adapted to local conditions, and involve the cooperation of stakeholders. [ABSTRACT FROM AUTHOR]

Abstract: This article synthesizes the growing empirical literature on transaction costs to identify pragmatic design recommendations for environmental and natural resource policies. The New Institutional Economics literature recognizes that appropriate policy choice and design will be a function of the specific characteristics of the problem. The physical and institutional determinants of both transaction costs and abatement costs should be considered in the policy design process due to potential interactions between them. Analysts also need to incorporate the extent to which the technologies, institutional environment, governance structures, or policy designs can be changed; some factors can only be adjusted to or “designed around” while others can be designed differently. This framework highlights the importance of property rights since transaction costs will be incurred to obtain or retain property rights and since the rights assignment may affect both the magnitudes and distribution of costs. Another implication is that education and extension programs or use of behavioral economics concepts to affect choices can be cost-effective in some circumstances. Policy design should take advantage of economies of scale and foster technical change. Appropriate sequencing of policy instruments may decrease transaction costs, particularly if there is potential for technical change. [Copyright &y& Elsevier]

Abstract: In this paper we reflect on the challenge of reallocating water resources from agricultural interests to environmental uses. The area of interest is the Murray–Darling Basin, Australia, although the evidence presented provides salient lessons for a range of settings. We draw on the transaction cost literature where the tasks of re-designing and using institutions can help conceptualise the costs associated with policy change. A framework for improving ex ante assessment of transaction costs and its relationship to transformation or abatement costs is elaborated, especially as it relates to community consultation exercises. Against the background of the water reforms of the past three decades we conclude that policy makers and administrators could limit increases in transformation costs and contain transaction costs by giving greater attention to the form of community consultation, by taking account of the sources of uncertainty that attend policy choices and recognising the potential for consultation fatigue. [Copyright &y& Elsevier]

An agricultural sector model is used in simulating agricultural markets under changing policies and markets, implying changes in regional production structure and land use. Given the direct farm-level costs of implementing specific abatement options as inputs, the sector model shows their likely impacts on agricultural production and land use in different regions. Most importantly, the sector-level model also includes indirect effects through product markets, i.e. changes in the balance of supply and demand. The sector model includes the endogenous structural development of agriculture, i.e. farm size growth and changes in production allocation in different regions. Hence, the dynamic sector model, while including specific descriptions of agricultural policies and markets, shows a consistent overall picture of the agricultural production development impacted by the GHG mitigation measures. The approach provides a unifying framework for farm-level analysis at multiple regions and scales. [ABSTRACT FROM PUBLISHER]

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Abstract: The costs associated to the abatement of pollutants coming from the burning of fossil fuels are calculated through the thermodynamic property exergy. We define the clean ton of a fossil fuel as the difference between its maximum recoverable energy (or exergy) and its exergy abatement cost. This way, energy reserves can be expressed in terms of clean tons of oil equivalent, ctoe, instead of the conventional measure expressed as toe. Additionally, the energy content of fossil fuels is affected by the conditions of the environment. An increase in atmospheric CO2 emissions and temperature due to the greenhouse effect, will lead to a decrease in their available energy. Hence, the actual clean tons will take into account both issues, the decrease of exergy due to the utilization of clean technologies plus the climate change effect. In the paper we make an inventory of the clean exergy fossil fuel reserves. The results show that the exergy of proven reserves are decreased by about 11%, if these two factors are taken into account. [Copyright &y& Elsevier]

Abstract: This paper uses nonparametric efficiency analysis technique to estimate the energy efficiency, potential emission reductions and marginal abatement costs of energy-related CO2 emissions in China. We employ a non-radial slacks-based data envelopment analysis (DEA) model for estimating the potential reductions and efficiency of CO2 emissions for China. The dual model of the slacks-based DEA model is then used to estimate the marginal abatement costs of CO2 emissions. An empirical study based on China’s panel data (2001–2010) is carried out and some policy implications are also discussed. [Copyright &y& Elsevier]