Designing climate change mitigation plans that add up.

Mitigation plans to combat climate change depend on the combined implementation of many abatement options, but the options interact. Published anthropogenic emissions inventories are disaggregated by gas, sector, country, or final energy form. This allows the assessment of novel energy supply options, but is insufficient for understanding how options for efficiency and demand reduction interact. A consistent framework for understanding the drivers of emissions is therefore developed, with a set of seven complete inventories reflecting all technical options for mitigation connected through lossless allocation matrices. The required data set is compiled and calculated from a wide range of industry, government, and academic reports. The framework is used to create a global Sankey diagram to relate human demand for services to anthropogenic emissions. The application of this framework is demonstrated through a prediction of per-capita emissions based on service demand in different countries, and through an example showing how the "technical potentials" of a set of separate mitigation options should be combined.

A global assessment of manufacturing: Economic development, energy use, carbon emissions, and the potential for energy efficiency and materials recycling

We present in two parts an assessment of global manufacturing. In the first part, we review economic development, pollution, and carbon emissions from a country perspective, tracking the rise of China and other developing countries. The results show not only a rise in the economic fortunes of the newly industrializing nations, but also a significant rise in global pollution, particularly air pollution and CO2 emissions largely from coal use, which alter and even reverse previous global trends. In the second part, we change perspective and quantitatively evaluate two important technical strategies to reduce pollution and carbon emissions: energy efficiency and materials recycling. We subdivide the manufacturing sector on the basis of the five major subsectors that dominate energy use and carbon emissions: (a) iron and steel, (b) cement, (c) plastics, (d) paper, and (e) aluminum. The analysis identifies technical constraints on these strategies, but by combined and aggressive action, industry should be able to balance increases in demand with these technical improvements. The result would be high but relatively flat energy use and carbon emissions. The review closes by demonstrating the consequences of extrapolating trends in production and carbon emissions and suggesting two options for further environmental improvements, materials efficiency, and demand reduction. © 2013 by Annual Reviews. All rights reserved.

Climate change, sea level rise and integrated coastal zone management: An IPCC approach

Expansion of economic activities, urbanisation, increased resource use and population growth are continuously increasing the vulnerability of the coastal zone. This vulnerability is now further raised by the threat of climate change and accelerated sea level rise. The potentially severe impacts force policy-makers to also consider long-term planning for climate change and sea level rise. For reasons of efficiency and effectiveness this long-term planning should be integrated with existing short-term plans, thus creating an Integrated Coastal Zone Management programme. As a starting point for coastal zone management, the assessment of a country's or region's vulnerability to accelerated sea level rise is of utmost importance. The Intergovernmental Panel on Climate Change has developed a common methodology for this purpose. Studies carried out according to this Common Methodology have been compared and combined, from which general conclusions on local, regional and global vulnerability have been drawn, the latter in the form of a Global Vulnerability Assessment. In order to address the challenge of coping with climate change and accelerated sea level rise, it is essential to foresee the possible impacts, and to take precautionary action. Because of the long lead times needed for creating the required technical and institutional infrastructures, such action should be taken in the short term. Furthermore, it should be part of a broader coastal zone management and planning context. This will require a holistic view, shared by the different institutional levels that exist, along which different needs and interests should be balanced.

Carbon leakage revisited: unilateral climate policy with directed technical change

Using a stylized theoretical model, we argue that current economic analyses of climate policy tend to over-estimate the degree of carbon leakage, as they abstract from the effects of induced technological change. We analyse carbon leakage in a two-country model with directed technical change, where only one of the countries enforces an exogenous cap on emissions. Climate policy induces changes in relative prices, that cause carbon leakage through a terms-of-trade effect. However, these changes in relative prices also affect the incentives to innovate in different sectors. This leads to a counterbalancing induced-technology effect, which always reduces carbon leakage. We therefore conclude that the leakage rates reported in the literature may be too high, as these estimates neglect the effect of price changes on the incentives to innovate.

Directed Technical Change and International Trade

Recent changes in comparative advantage in the largest OECD economies differ significantly from the predictions of Heckscher-Ohlin-Vanek theory. Japan's rising share of OECD machinery exports and the improvement in the comparative advantage of the USA and Germany in heavy industry were accompanied by growing scarcities of the factors used intensively in the favored sector of each country. Here we examine Acemoglu's (1998, 2002) hypothesis that technical change may be directed toward raising the marginal productivity of abundant factors. Testing this hypothesis with 1970-1992 export data from 14 OECD countries, we find evidence that international comparative advantage was reshaped by innovation biased toward the abundant factors in the largest economies.

Technical instruments and conceptual definitions: theoretical and practical implications of the change on the definition of unemployment in Colombia

En junio de 2000 el Departamento Nacional de Estadística de Colombia adopto una nueva definición de medición de desempleo siguiendo los estándares sugeridos por la organización Internacional del Trabajo (OIT). El cambio de definición implico una reducción de la tasa de desempleo en cerca de dos puntos porcentuales. En este documento contrastamos la experiencia colombiana con otra experiencias internacionales, y analizamos las implicaciones empíricas y teóricas de este cambio de definición usando dos tipos de estimaciones cuantitativas: en la primera se contrasta las principales características de las diferentes categorías clasificadas según la definición nueva y vieja de desempleo (empleado, desempleado y fuera de la fuerza laboral) usando el algoritmo EM; en la segunda se pone a prueba la implicación del desempleo estructural y su relación con el perfil educacional de personas desempleadas y las características teóricas que enfrentan los estándares de la OIT en la definición de empleo.

Technical change and factor shares

The implications of technical change that directly alters factor shares are examined. Such change can lower the income of some factors of production even when it raises total output, thus offering a possible explanation for episodes of social conflict such as the Luddite uprisings in 19th century England and the recent divergence in the U. S. between wages for skilled and unskilled labor. An explanation also why underdeveloped countries do not adopt the latest technology but continue to use outmoded production methods. Total factor productivity is shown to be a misleading measure of technical progress. Share-altering technical change brings into question the plausibility of a wide class of endogenous growth models.