Border tax adjustments: Can energy and carbon taxes be adjusted at the border?

Will die Schweiz mit unilateralen energie- und klimapolitischen Massnahmen ambitionierte Ziele verfolgen, dann erfahren energieintensive Sektoren Nachteile im internationalen Wett- bewerb. Produktionsverlagerungen und „carbon leakage“ sind die Folgen, was nicht im Sinne der Schweizer Wirtschaft und der globalen Klimaziele ist. Mit Grenzausgleichsmassnahmen (BAM) kann die Schweiz ihre energieintensiven Betriebe nicht vor internationalen Wettbe- werbsnachteilen schützen. Weiter kommt hinzu, dass die Einführung von BAM aus rechtli- cher Sicht „riskant“ ist und bei einem Schweizer Alleingang mit hohen Vollzugshürden ge- rechnet werden muss. Für die Schweiz macht eine Einführung von BAM nur im Rahmen ei- ner grösseren Klimakoalition Sinn (bspw. zusammen mit der EU). Alternativen zu BAM sind die einfacher und autonom umsetzbaren Ausnahmeregelungen für energieintensive Betriebe oder Output-based-allocation-Systeme.

Can border carbon taxes fit into the global trade regime? Bruegel Policy Brief 2013/06, 9 December 2013

One complement to domestic climate policies could be the regulation of carbon dioxide emissions arising during the production of imported products. Such ‘border carbon adjustments’ (BCAs) are said to have several benefits, but are also severely criticised. This Policy Brief highlights some weaknesses in the standard argumentation for BCAs. But there is an alternative argument for border carbon measures, based on the fact that countries expose each other to climate externalities. The reformulated argument is economically more convincing, and provides a more convincing justification for the extraterritorial feature of border carbon measures. However, there are also several important factors mitigating against the implementation of such measures, including the risk that these measures will be used for protectionism. One complement to domestic climate policies could be the regulation of carbon dioxide emissions arising during the production of imported products. Such ‘border carbon adjustments’ (BCAs) are said to have several benefits, but are also severely criticised. This Policy Brief highlights some weaknesses in the standard argumentation for BCAs. But there is an alternative argument for border carbon measures, based on the fact that countries expose each other to climate externalities. The reformulated argument is economically more convincing, and provides a more convincing justification for the extraterritorial feature of border carbon measures. However, there are also several important factors mitigating against the implementation of such measures, including the risk that these measures will be used for protectionism.

Dynamics of Dissolved Forms of Carbon and Inorganic Nitrogen in Small Watersheds of the Coastal Atlantic Forest in Southeast Brazil

Based on the fact that streamwater quality reflects landscape conditions, the objectives of this study were: to investigate nitrogen (N), carbon (C), and major ion concentrations in six streams crossing minimally disturbed Atlantic Forest areas, with similar geomorphological characteristics; to determine N and C fluxes in one of these pristine streams (Indaia); and assess the impact of human activity on the biogeochemistry of two other streams in the same region, crossing urbanized areas. The distribution pattern of carbon and inorganic nitrogen dissolved forms, as well as the major ion and biogenic gas concentrations in the streamwater, was similar in pristine streams, indicating that the C and N dynamics were determined by influence of some factors, such as climate, atmospheric deposition, geology, soil type, and land covering, which were analogous in the forested watersheds. The urban streams were significantly different from the pristine streams, showing low dissolved oxygen concentrations, high respiration rates, and high concentrations of carbon dioxide, dissolved inorganic nitrogen, dissolved inorganic carbon, and major ion. These differences were attributed to anthropogenic impact on water quality, especially domestic sewage discharge. Additionally, in the Indaia stream, it was possible to observe the importance of rainfall over temporal dynamics of dissolved carbon forms, and also, the obtained specific flux of dissolved inorganic nitrogen was relatively elevated (approximately 11 kg ha(-1) year(-1)). These results reveal the influence of human activity over the biogeochemistry of coastal streams and also indicate the importance N export of Atlantic Forest to the ocean.

The Social and Economic Impacts of a Washington State Carbon Tax

Thesis (Master's)--University of Washington, 2016-06

Incentive based policies on climate change: taxes and tradable emssions permits

The reduction of Greenhouse Gases (GHG) plays a central role in the environmental policies considered by countries for implementation not only at its own level but also at supranational levels. This thesis is dedicated to investigate some aspects of two of the most relevant climate change policies. The first part is dedicated to emission permit markets and the second part to optimal carbon taxes. On emission permit markets we explore the strategic behavior of oligopolistic firms operating in polluting industrial sectors that are regulated by cap and trade systems. Our aim is to identify how market power influences the main results obtained under perfect competition assumptions and to understand how actions taken in one market affects the outcome of the other related market. A partial equilibrium model is developed for this purpose with specific abatement cost functions. In Chapter 2 we use the model to explain some of the most relevant literature results. In Chapter 3 the model is used to analyze different oligopolistic structures in the product market under the assumption of competitive permits market. There are two significant findings. Firstly, under the assumption of a Stackelberg oligopoly, firms have no incentives for lobbying in order to manipulate permit prices up, as they have under Cournot competition...

Optimal Climate Change Policies When Governments Cannot Commit

This paper examines the optimal design of climate change policies in the context where governments want to encourage the private sector to undertake significant immediate investment in developing cleaner technologies, but the carbon taxes and other environmental policies that could in principle stimulate such investment will be imposed over a very long future. The conventional claim by environmental economists is that environmental policies alone are sufficient to induce firms to undertake optimal investment. However this argument requires governments to be able to commit to these future taxes, and it is far from clear that governments have this degree of commitment. We assume instead that governments cannot commit, and so both they and the private sector have to contemplate the possibility of there being governments in power in the future that give different (relative) weights to the environment. We show that this lack of commitment has a significant asymmetric effect. Compared to the situation where governments can commit it increases the incentive of the current government to have the investment undertaken, but reduces the incentive of the private sector to invest. Consequently governments may need to use additional policy instruments – such as R&D subsidies – to stimulate the required investment.

The energy and water balance of a Eucalyptus plantation in southeast Brazil

The eddy covariance method was used to measure energy and water balance of a plantation of Eucalyptus (grandis x urophylla) hybrids over a 2 year period. The average daily evaporation rates were 5.4 (+/- 2.0) mm day(-1) in summer, but fell to 1.2 (+/- 0.3) mm day(-1) in winter. In contrast, the sensible heat flux was relatively low in summer but dominated the energy balance in winter. Evaporation accounted for 80% and 26% of the available energy, in summer and winter respectively. The annual evaporation was 82% (1124 mm) and 96% (1235 mm) of the annual rainfall recorded during the first and second year, respectively. Daily average canopy and aerodynamic conductance to water vapour were in the summer 51.9 (+/- 38.4) mm s(-1) 84.1 (+/- 25.6) mm s(-1), respectively; and in the winter 6.0 (+/- 10.5) mm s(-1) and 111.6 (+/- 24.6) mm s(-1), respectively. (C) 2010 Elsevier B.V. All rights reserved.

Análisis general de las externalidades ambientales derivadas de la utilización de combustibles fósiles en la industria eléctrica centroamericana

Incluye Bibliografía

Procedimento para homologação de sistemas ecoeficientes para obtenção de créditos de carbono

This paper deals with the homologation process for obtaining carbon credits through the Clean Development Mechanism (CDM), that regulates the greenhouse gases reductions under the rules of the Kyoto Protocol. The CDM evaluates projects through a project cycle, which begins with the preparation of the Project Design Document (PDD) until the project certification to receive Certified Emission Reductions (CERs), popularly known as carbon credits. This study analyzed the implementation of the system Burner Recorder System for Low Flows of Biogas (QRBBV), developed by Marcelino Junior & Godoy (2009), in an eco-friendly wastewater treatment mini-plant (miniEETERA), built at the site of UNESP - Guaratinguetá SP. The QRBBV system is low cost and high reliability, developed to burn the methane generated at sites of low and variable production of biogas, which is not economically justified their energy recovery. Currently, almost all wastewater generated at the site of the campus is being treated by miniEETERA and, as a result, the biogas originated by this activity is being released into the atmosphere. Therefore, the project activity aims to capture and burn the biogas generated by miniEETERA, reducing the negative effects caused by the methane emissions into the atmosphere and, thus, claim to receive carbon credits. This work aimed to demonstrate the project applicability under CDM through the study and preparation of the PDD, as well as an analysis of the entire project cycle required for homologation. The result of the work obtained an estimate of only 20 CERs per year and proved to be economically unviable for approval through the CDM, since the spending with the approval process would not be compensated with the sale of CERs, mainly due the low carbon price in the world market. From an environmental standpoint, the project is perfectly... (Complete abstract click electronic access below)

Procedimento para homologação de sistemas ecoeficientes para obtenção de créditos de carbono

This paper deals with the homologation process for obtaining carbon credits through the Clean Development Mechanism (CDM), that regulates the greenhouse gases reductions under the rules of the Kyoto Protocol. The CDM evaluates projects through a project cycle, which begins with the preparation of the Project Design Document (PDD) until the project certification to receive Certified Emission Reductions (CERs), popularly known as carbon credits. This study analyzed the implementation of the system Burner Recorder System for Low Flows of Biogas (QRBBV), developed by Marcelino Junior & Godoy (2009), in an eco-friendly wastewater treatment mini-plant (miniEETERA), built at the site of UNESP - Guaratinguetá SP. The QRBBV system is low cost and high reliability, developed to burn the methane generated at sites of low and variable production of biogas, which is not economically justified their energy recovery. Currently, almost all wastewater generated at the site of the campus is being treated by miniEETERA and, as a result, the biogas originated by this activity is being released into the atmosphere. Therefore, the project activity aims to capture and burn the biogas generated by miniEETERA, reducing the negative effects caused by the methane emissions into the atmosphere and, thus, claim to receive carbon credits. This work aimed to demonstrate the project applicability under CDM through the study and preparation of the PDD, as well as an analysis of the entire project cycle required for homologation. The result of the work obtained an estimate of only 20 CERs per year and proved to be economically unviable for approval through the CDM, since the spending with the approval process would not be compensated with the sale of CERs, mainly due the low carbon price in the world market. From an environmental standpoint, the project is perfectly... (Complete abstract click electronic access below)

A sustainable agricultural landscape for Australia: A review of interlacing carbon sequestration, biodiversity and salinity management in agroforestry systems

Transformation of the south-western Australian landscape from deep-rooted woody vegetation systems to shallow-rooted annual cropping systems has resulted in the severe loss of biodiversity and this loss has been exacerbated by rising ground waters that have mobilised stored salts causing extensive dry land salinity. Since the original plant communities were mostly perennial and deep rooted, the model for sustainable agriculture and landscape water management invariably includes deep rooted trees. Commercial forestry is however only economical in higher rainfall (>700 mm yr−1) areas whereas much of the area where biodiversity is threatened has lower rainfall (300–700 mm yr−1). Agroforestry may provide the opportunity to develop new agricultural landscapes that interlace ecosystem services such as carbon mitigation via carbon sequestration and biofuels, biodiversity restoration, watershed management while maintaining food production. Active markets are developing for some of these ecosystem services, however a lack of predictive metrics and the regulatory environment are impeding the adoption of several ecosystem services. Nonetheless, a clear opportunity exists for four major issues – the maintenance of food and fibre production, salinisation, biodiversity decline and climate change mitigation – to be managed at a meaningful scale and a new, sustainable agricultural landscape to be developed.

Soil carbon and litter development along a reconstructed biodiverse forest chronosequence of South-Western Australia

Soil organic matter (SOM) increases with time as landscape is restored. Studying SOM development along restored forest chronosequences would be useful in clarifying some of the uncertainties in quantifying C turnover rates with respect to forest clearance and ensuing restoration. The development of soil organic matter in the mineral soils was studied at four depths in a 16-year-old restored jarrah forest chronosequence. The size-separated SOM fractionation along with δ13C isotopic shift was utilised to resolve the soil C temporal and spatial changes with developing vegetation. The restored forest chronosequence revealed several important insights into how soil C is developing with age. Litter accumulation outpaced the native forest levels in 12 years after restoration. The surface soils, in general, showed increase in total C with age, but this trend was not clearly observed at lower depths. C accumulation was observed with increasing restoration age in all three SOM size-fractions in the surface 0–2 cm depth. These biodiverse forests show a trend towards accumulating C in recalcitrant stable forms, but only in the surface 0–2 cm mineral soil. A significant reverse trend was observed for the moderately labile SOM fraction for lower depths with increasing restoration age. Correlating the soil δ13C with total C concentration revealed the re-establishment of the isotopically depleted labile to enriched refractory C continuum with soil depth for the older restored sites. This implied that from a pedogenic perspective, the restored soils are developing towards the original native soil carbon profile.

Legal Implications of the Use of Export Taxes in Addressing Carbon Leakage: Competing Border Adjustment Measures

The prevailing uncertainties about the future of the post-Kyoto international legal framework for climate mitigation and adaptation increase the likelihood of unilateral trade interventions that aim to address climate policy concerns, as exemplified by the controversial European Union initiative to include the aviation industry in its emissions trading system. The emerging literature suggests that border carbon adjustment (BCA) measures imposed by importing countries would lead to substantial legal complications in relation to World Trade Organization law and hence to possible trade disputes. Lack of legal clarity on BCAs is exacerbated by potential counter or pre-emptive export restrictions that exporting countries might impose on carbon-intensive products. In this context, this paper investigates the interface between legal and welfare implications of competing unilateral BCA measures. It argues that carbon export taxes will be an inevitable part of the future climate change regime in the absence of a multilateral agreement. It also describes the channels through which competing BCAs may lead to trade conflicts and political complications as a result of their distributional and welfare impacts at the domestic and global levels.