Energy-output linkages in Australia: Implications for emissions reduction policies

The study investigates the long-run and dynamic relationships between energy consumption and output in Australia using a multivariate cointegration and causality framework. Using both Engle-Granger and Johansen cointegration approaches, the study finds that energy consumption and real Gross Domestic Product are cointegrated. The Granger causality tests suggest bidirectional Granger causality between energy consumption and real GDP, and Granger endogeineity in the system. Since the energy sector largely contributes to carbon emissions in Australia, we suggest that direct measures to reduce carbon by putting constraints on the energy consumption would pose significant economic costs for the Australian economy.

Carbon emission accounting fraud

This chapter explores the motivation behind potential carbon emission accounting fraud by corporations. There are several different possible risks of carbon emission accounting fraud which remain mostly overlooked by researchers to date, despite the fact that such frauds have a negative impact on a country’s economy as well as the real purpose of mitigating carbon emissions. The chapter offers discussion of some potential risks of carbon emission accounting fraud as well as related prevention policy. The study suggests that an effective mandatory carbon emission related fraud prevention policy is essential to eliminate opportunities to commit such fraud by corporations.

Optimal allocation of carbon credits to emitting agents in a carbon economy

Reduction of carbon emissions is of paramount importance in the context of global warming. Countries and global companies are now engaged in understanding systematic ways of achieving well defined emission targets. In fact, carbon credits have become significant and strategic instruments of finance for countries and global companies. In this paper, we formulate and suggest a solution to the carbon allocation problem, which involves determining a cost minimizing allocation of carbon credits among different emitting agents. We address this challenge in the context of a global company which is faced with the challenge of determining an allocation of carbon credit caps among its divisions in a cost effective way. The problem is formulated as a reverse auction problem where the company plays the role of a buyer or carbon planning authority and the different divisions within the company are the emitting agents that specify cost curves for carbon credit reductions. Two natural variants of the problem: (a) with unlimited budget and (b) with limited budget are considered. Suitable assumptions are made on the cost curves and in each of the two cases we show that the resulting problem formulation is a knapsack problem that can be solved optimally using a greedy heuristic. The solution of the allocation problem provides critical decision support to global companies engaged seriously in green programs.

The role of sustainable agriculture and renewable-resource management in reducing greenhouse-gas emissions and increasing sinks in China and India

This paper contains an analysis of the technical options in agriculture for reducing greenhouse-gas emissions and increasing sinks, arising from three distinct mechanisms: (i) increasing carbon sinks in soil organic matter and above-ground biomass; (ii) avoiding carbon emissions from farms by reducing direct and indirect energy use; and (iii) increasing renewable-energy production from biomass that either substitutes for consumption of fossil fuels or replaces inefficient burning of fuelwood or crop residues, and so avoids carbon emissions, together with use of biogas digesters and improved cookstoves. We then review best-practice sustainable agriculture and renewable-resource-management projects and initiatives in China and India, and analyse the annual net sinks being created by these projects, and the potential market value of the carbon sequestered. We conclude with a summary of the policy and institutional conditions and reforms required for adoption of best sustainability practice in the agricultural sector to achieve the desired reductions in emissions and increases in sinks. A review of 40 sustainable agriculture and renewable-resource-management projects in China and India under the three mechanisms estimated a carbon mitigation potential of 64.8 MtC yr(-1) from 5.5 Mha. The potential income for carbon mitigation is $324 million at $5 per tonne of carbon. The potential exists to increase this by orders of magnitude, and so contribute significantly to greenhouse-gas abatement. Most agricultural mitigation options also provide several ancillary benefits. However, there are many technical, financial, policy, legal and institutional barriers to overcome.

Mechanism design problems in carbon economics

Reduction of carbon emissions is of paramount importance in the context of global warming and climate change. Countries and global companies are now engaged in understanding systematic ways of solving carbon economics problems, aimed ultimately at achieving well defined emission targets. This paper proposes mechanism design as an approach to solving carbon economics problems. The paper first introduces carbon economics issues in the world today and next focuses on carbon economics problems facing global industries. The paper identifies four problems faced by global industries: carbon credit allocation (CCA), carbon credit buying (CCB), carbon credit selling (CCS), and carbon credit exchange (CCE). It is argued that these problems are best addressed as mechanism design problems. The discipline of mechanism design is founded on game theory and is concerned with settings where a social planner faces the problem of aggregating the announced preferences of multiple agents into a collective decision, when the actual preferences are not known publicly. The paper provides an overview of mechanism design and presents the challenges involved in designing mechanisms with desirable properties. To illustrate the application of mechanism design in carbon economics,the paper describes in detail one specific problem, the carbon credit allocation problem.

Decentralised carbon footprint analysis for opting climate change mitigation strategies in India

Carbon footprint (CF) refers to the total amount of carbon dioxide and its equivalents emitted due to various anthropogenic activities. Carbon emission and sequestration inventories have been reviewed sector-wise for all federal states in India to identify the sectors and regions responsible for carbon imbalances. This would help in implementing appropriate climate change mitigation and management strategies at disaggregated levels. Major sectors of carbon emissions in India are through electricity generation, transport, domestic energy consumption, industries and agriculture. A majority of carbon storage occurs in forest biomass and soil. This paper focuses on the statewise carbon emissions (CO2. CO and CH4), using region specific emission factors and statewise carbon sequestration capacity. The estimate shows that CO2, CO and CH4 emissions from India are 965.9, 22.5 and 16.9 Tg per year, respectively. Electricity generation contributes 35.5% of total CO2 emission, which is followed by the contribution from transport. Vehicular transport exclusively contributes 25.5% of total emission. The analysis shows that Maharashtra emits higher CO2, followed by Andhra Pradesh, Uttar Pradesh, Gujarat, Tamil Nadu and West Bengal. The carbon status, which is the ratio of annual carbon storage against carbon emission, for each federal state is computed. This shows that small states and union territories (UT) like Arunachal Pradesh, Mizoram and Andaman and Nicobar Islands, where carbon sequestration is higher due to good vegetation cover, have carbon status > 1. Annually, 7.35% of total carbon emissions get stored either in forest biomass or soil, out of which 34% is in Arunachal Pradesh, Madhya Pradesh, Chhattisgarh and Orissa. (C) 2012 Elsevier Ltd. All rights reserved.

How much do we spend to save? Calculating the embodied carbon costs of retrofit

The drive to reduce carbon emissions from domestic housing has led to a recent shift of focus from new-­‐build to retrofit. However there are two significant differences. Firstly more work is needed to retrofit existing housing to the same energy efficiency standards as new-­‐build. Secondly the remaining length of service life is potentially shorter. This implies that the capital expenditure – both financial and carbon -­‐ of retrofit may be disproportionate to the savings gained over the remaining life. However the Government’s definition of low and zero carbon continues to exclude the capital (embodied) carbon costs of construction, which has resulted in a lack of data for comparison. The paper addresses this gap by reporting the embodied carbon costs of retrofitting four individual pilot properties in Rampton Drift, part of an Eco-­‐Town Demonstrator Project in Cambridgeshire. Through collecting details of the materials used and their journeys from manufacturer to site, the paper conducts a ‘cradle-­‐to-­‐gate’ life cycle carbon assessment for each property. The embodied carbon figures are calculated using a software tool being developed by the Centre for Sustainable Development at the University of Cambridge. The key aims are to assess the real embodied carbon costs of retrofit of domestic properties, and to test the new tool; it is hoped that the methodology, the tool and the specific findings will be transferable to other projects. Initial changes in operational energy as a result of the retrofit works will be reported and compared with the embodied carbon costs when presenting this paper.

A Comparative Review of Existing Data and Methodologies for Calculating Embodied Energy and Carbon of Buildings

In the Climate Change Act of 2008 the UK Government pledged to reduce carbon emissions by 80% by 2050. As one step towards this, regulations are being introduced requiring all new buildings to be ‘zero carbon’ by 2019. These are defined as buildings which emit net zero carbon during their operational lifetime. However, in order to meet the 80% target it is necessary to reduce the carbon emitted during the whole life-cycle of buildings, including that emitted during the processes of construction. These elements make up the ‘embodied carbon’ of the building. While there are no regulations yet in place to restrict embodied carbon, a number of different approaches have been made. There are several existing databases of embodied carbon and embodied energy. Most provide data for the material extraction and manufacturing only, the ‘cradle to factory gate’ phase. In addition to the databases, various software tools have been developed to calculate embodied energy and carbon of individual buildings. A third source of data comes from the research literature, in which individual life cycle analyses of buildings are reported. This paper provides a comprehensive review, comparing and assessing data sources, boundaries and methodologies. The paper concludes that the wide variations in these aspects produce incomparable results. It highlights the areas where existing data is reliable, and where new data and more precise methods are needed. This comprehensive review will guide the future development of a consistent and transparent database and software tool to calculate the embodied energy and carbon of buildings.

Air quality and public health impacts of UK airports. Part I: Emissions

The potential adverse human health and climate impacts of emissions from UK airports have become a significant political issue, yet the emissions, air quality impacts and health impacts attributable to UK airports remain largely unstudied. We produce an inventory of UK airport emissions - including aircraft landing and takeoff (LTO) operations and airside support equipment - with uncertainties quantified. The airports studied account for more than 95% of UK air passengers in 2005. We estimate that in 2005, UK airports emitted 10.2 Gg [-23 to +29%] of NOx, 0.73 Gg [-29 to +32%] of SO2, 11.7 Gg [-42 to +77%] of CO, 1.8 Gg [-59 to +155%] of HC, 2.4 Tg [-13 to +12%] of CO2, and 0.31 Gg [-36 to +45%] of PM2.5. This translates to 2.5 Tg [-12 to +12%] CO2-eq using Global Warming Potentials for a 100-year time horizon. Uncertainty estimates were based on analysis of data from aircraft emissions measurement campaigns and analyses of aircraft operations.The First-Order Approximation (FOA3) - currently the standard approach used to estimate particulate matter emissions from aircraft - is compared to measurements and it is shown that there are discrepancies greater than an order of magnitude for 40% of cases for both organic carbon and black carbon emissions indices. Modified methods to approximate organic carbon emissions, arising from incomplete combustion and lubrication oil, and black carbon are proposed. These alterations lead to factor 8 and a 44% increase in the annual emissions estimates of black and organic carbon particulate matter, respectively, leading to a factor 3.4 increase in total PM2.5 emissions compared to the current FOA3 methodology. Our estimates of emissions are used in Part II to quantify the air quality and health impacts of UK airports, to assess mitigation options, and to estimate the impacts of a potential London airport expansion. © 2011 Elsevier Ltd.

A Comparative Review of existing data and methodologies for calculating embodied energy and carbon of buildings

In the Climate Change Act of 2008 the UK Government pledged to reduce carbon emissions by 80% by 2050. As one step towards this, regulations are being introduced requiring all new buildings to be ‘zero carbon’ by 2019. These are defined as buildingswhichemitnetzerocarbonduringtheiroperationallifetime.However,inordertomeetthe80%targetitisnecessary to reduce the carbon emitted during the whole life-cycle of buildings, including that emitted during the processes of construction. These elements make up the ‘embodied carbon’ of the building. While there are no regulations yet in place to restrictembodiedcarbon,anumberofdifferentapproacheshavebeenmade.Thereareseveralexistingdatabasesofembodied carbonandembodiedenergy.Mostprovidedataforthematerialextractionandmanufacturingonly,the‘cradletofactorygate’ phase. In addition to the databases, various software tools have been developed to calculate embodied energy and carbon of individual buildings. A third source of data comes from the research literature, in which individual life cycle analyses of buildings are reported. This paper provides a comprehensive review, comparing and assessing data sources, boundaries and methodologies. The paper concludes that the wide variations in these aspects produce incomparable results. It highlights the areas where existing data is reliable, and where new data and more precise methods are needed. This comprehensive review will guide the future development of a consistent and transparent database and software tool to calculate the embodied energy and carbon of buildings.

Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders

Consumer goods contribute to anthropogenic climate change across their product life cycles through carbon emissions arising from raw materials extraction, processing, logistics, retail and storage, through to consumer use and disposal. How can consumer goods manufacturers make stepwise reductions in their product life cycle carbon emissions by engaging with, and influencing their main stakeholders? A semi-structured interview approach was used: to identify strategies and actions, stakeholders in the consumer goods industry (suppliers, manufacturers, retailers and NGOs) were interviewed about carbon emissions reduction projects. Based on this, a summarising presentation was made, which was shared during a second round of interviews to validate and refine the results. The results demonstrate several opportunities that have not yet been exploited by companies. These include editing product choice in stores to remove products with higher carbon footprints, using marketing competences for environmental benefits, and bundling competences to create winewinewin business models. Governments and NGOs have important enabling roles to accelerate industry change. Although this work was initially developed to explore how companies can reduce life cycle carbon emissions of their products, these strategies and actions also give insights on how companies can influence and anticipate stakeholder actions in general. © 2012 Elsevier Ltd. All rights reserved.

Steel and aluminium in a low carbon future

Production of steel and aluminium creates 10% of global carbon emissions from energy and processes. Demand is likely to double by 2050, but climate scientists are recommending absolute reductions of at least 50% and these are Increasingly entering law. How can reductions of this order happen? Only 10-20% savings can be expected in liquid metal production, so the primary industry is pursuing carbon sequestration as the main solution. However, this Is as yet unproven at scale, and as well as carrying some risk, the capital and operating costs are likely to be high, but are as yet unknown. In parallel with these strategies we can also examine whether we can reduce demand for liquid metal. 'Material efficiency' may allow delivery of existing services with less requirement for metal, for instance through designing products that use less metal, reducing process scrap, diverting scrap for other use, re-using components or delaying end of life. Overall demand reduction could occur if goods were used more intensely, alternative means were used to deliver the same services, or total demand were constrained. The paper analyses all possible options, to define and evaluate scenarios that meet the 2050 target, and discuss the steps required to bring them about. The paper concludes with suggestions for key areas where future research In metal forming can support a future low carbon economy. © 2011 Wiley-VCH Verlag GmbH & Co. KGaA. Weinheim.

Global fire emissions and the contribution of deforestation, savanna, forest, agricultural, and peat fires (1997-2009)

New burned area datasets and top-down constraints from atmospheric concentration measurements of pyrogenic gases have decreased the large uncertainty in fire emissions estimates. However, significant gaps remain in our understanding of the contribution of deforestation, savanna, forest, agricultural waste, and peat fires to total global fire emissions. Here we used a revised version of the Carnegie-Ames-Stanford-Approach (CASA) biogeochemical model and improved satellite-derived estimates of area burned, fire activity, and plant productivity to calculate fire emissions for the 1997-2009 period on a 0.5° spatial resolution with a monthly time step. For November 2000 onwards, estimates were based on burned area, active fire detections, and plant productivity from the MODerate resolution Imaging Spectroradiometer (MODIS) sensor. For the partitioning we focused on the MODIS era. We used maps of burned area derived from the Tropical Rainfall Measuring Mission (TRMM) Visible and Infrared Scanner (VIRS) and Along-Track Scanning Radiometer (ATSR) active fire data prior to MODIS (1997-2000) and estimates of plant productivity derived from Advanced Very High Resolution Radiometer (AVHRR) observations during the same period. Average global fire carbon emissions according to this version 3 of the Global Fire Emissions Database (GFED3) were 2.0 PgC year-1 with significant interannual variability during 1997-2001 (2.8 Pg Cyear-1 in 1998 and 1.6 PgC year-1 in 2001). Globally, emissions during 2002-2007 were rela-tively constant (around 2.1 Pg C year-1) before declining in 2008 (1.7 Pg Cyear-1) and 2009 (1.5 PgC year-1) partly due to lower deforestation fire emissions in South America and tropical Asia. On a regional basis, emissions were highly variable during 2002-2007 (e.g., boreal Asia, South America, and Indonesia), but these regional differences canceled out at a global level. During the MODIS era (2001-2009), most carbon emissions were from fires in grasslands and savannas (44%) with smaller contributions from tropical deforestation and degradation fires (20%), woodland fires (mostly confined to the tropics, 16%), forest fires (mostly in the extratropics, 15%), agricultural waste burning (3%), and tropical peat fires (3%). The contribution from agricultural waste fires was likely a lower bound because our approach for measuring burned area could not detect all of these relatively small fires. Total carbon emissions were on average 13% lower than in our previous (GFED2) work. For reduced trace gases such as CO and CH4, deforestation, degradation, and peat fires were more important contributors because of higher emissions of reduced trace gases per unit carbon combusted compared to savanna fires. Carbon emissions from tropical deforestation, degradation, and peatland fires were on average 0.5 PgC year-1. The carbon emissions from these fires may not be balanced by regrowth following fire. Our results provide the first global assessment of the contribution of different sources to total global fire emissions for the past decade, and supply the community with an improved 13-year fire emissions time series. © 2010 Author(s).

Carbon mitigation costs for the commercial building sector: Discrete-continuous choice analysis of multifuel energy demand

We estimate a carbon mitigation cost curve for the U.S. commercial sector based on econometric estimation of the responsiveness of fuel demand and equipment choices to energy price changes. The model econometrically estimates fuel demand conditional on fuel choice, which is characterized by a multinomial logit model. Separate estimation of end uses (e.g., heating, cooking) using the U.S. Commercial Buildings Energy Consumption Survey allows for exceptionally detailed estimation of price responsiveness disaggregated by end use and fuel type. We then construct aggregate long-run elasticities, by fuel type, through a series of simulations; own-price elasticities range from -0.9 for district heat services to -2.9 for fuel oil. The simulations form the basis of a marginal cost curve for carbon mitigation, which suggests that a price of $20 per ton of carbon would result in an 8% reduction in commercial carbon emissions, and a price of $100 per ton would result in a 28% reduction. © 2008 Elsevier B.V. All rights reserved.

Combined heat and power and campus carbon footprint reduction

Gemstone Team Cogeneration Technology