Renewable Energy and Climate Policies: Studies in the Forest and Energy Sector

‪This dissertation examines the impacts of energy and climate policies on the energy and forest sectors, focusing on the case of Finland. The thesis consists of an introduction article and four separate studies. The dissertation was motivated by the climate concern and the increasing demand of renewable energy. In particular, the renewable energy consumption and greenhouse gas emission reduction targets of the European Union were driving this work. In Finland, both forest and energy sectors are in key roles in achieving these targets. In fact, the separation between forest and energy sector is diminishing as the energy sector is utilizing increasing amounts of wood in energy production and as the forest sector is becoming more and more important energy producer.‬ ‪The objective of this dissertation is to find out and measure the impacts of climate and energy policies on the forest and energy sectors. In climate policy, the focus is on emissions trading, and in energy policy the dissertation focuses on the promotion of renewable forest-based energy use. The dissertation relies on empirical numerical models that are based on microeconomic theory. Numerical partial equilibrium mixed complementarity problem models were constructed to study the markets under scrutiny. The separate studies focus on co-firing of wood biomass and fossil fuels, liquid biofuel production in the pulp and paper industry, and the impacts of climate policy on the pulp and paper sector.‬ ‪The dissertation shows that the policies promoting wood-based energy may have have unexpected negative impacts. When feed-in tariff is imposed together with emissions trading, in some plants the production of renewable electricity might decrease as the emissions price increases. The dissertation also shows that in liquid biofuel production, investment subsidy may cause high direct policy costs and other negative impacts when compared to other policy instruments. The results of the dissertation also indicate that from the climate mitigation perspective, perfect competition is the favored wood market competition structure, at least if the emissions trading system is not global.‬ ‪In conclusion, this dissertation suggests that when promoting the use of wood biomass in energy production, the favored policy instruments are subsidies that promote directly the renewable energy production (i.e. production subsidy, renewables subsidy or feed-in premium). Also, the policy instrument should be designed to be dependent on the emissions price or on the substitute price. In addition, this dissertation shows that when planning policies to promote wood-based renewable energy, the goals of the policy scheme should be clear before decisions are made on the choice of the policy instruments.‬

Impact of climate change on Indian forests: a dynamic vegetation modeling approach

We make an assessment of the impact of projected climate change on forest ecosystems in India. This assessment is based on climate projections of the Regional Climate Model of the Hadley Centre (HadRM3) and the dynamic global vegetation model IBIS for A2 and B2 scenarios. According to the model projections, 39% of forest grids are likely to undergo vegetation type change under the A2 scenario and 34% under the B2 scenario by the end of this century. However, in many forest dominant states such as Chattisgarh, Karnataka and Andhra Pradesh up to 73%, 67% and 62% of forested grids are projected to undergo change. Net Primary Productivity (NPP) is projected to increase by 68.8% and 51.2% under the A2 and B2 scenarios, respectively, and soil organic carbon (SOC) by 37.5% for A2 and 30.2% for B2 scenario. Based on the dynamic global vegetation modeling, we present a forest vulnerability index for India which is based on the observed datasets of forest density, forest biodiversity as well as model predicted vegetation type shift estimates for forested grids. The vulnerability index suggests that upper Himalayas, northern and central parts of Western Ghats and parts of central India are most vulnerable to projected impacts of climate change, while Northeastern forests are more resilient. Thus our study points to the need for developing and implementing adaptation strategies to reduce vulnerability of forests to projected climate change.

Climate change and forests in India: adaptation opportunities and challenges

Climate change is projected to lead to shift of forest types leading to irreversible damage to forests by rendering several species extinct and potentially affecting the livelihoods of local communities and the economy. Approximately 47% and 42% of tropical dry deciduous grids are projected to undergo shifts under A2 and B2 SRES scenarios respectively, as opposed to less than 16% grids comprising of tropical wet evergreen forests. Similarly, the tropical thorny scrub forest is projected to undergo shifts in majority of forested grids under A2 (more than 80%) as well as B2 scenarios (50% of grids). Thus the forest managers and policymakers need to adapt to the ecological as well as the socio-economic impacts of climate change. This requires formulation of effective forest management policies and practices, incorporating climate concerns into long-term forest policy and management plans. India has formulated a large number of innovative and progressive forest policies but a mechanism to ensure effective implementation of these policies is needed. Additional policies and practices may be needed to address the impacts of climate change. This paper discusses an approach and steps involved in the development of an adaptation framework as well as policies, strategies and practices needed for mainstreaming adaptation to cope with projected climate change. Further, the existing barriers which may affect proactive adaptation planning given the scale, accuracy and uncertainty associated with assessing climate change impacts are presented.

Forest policies and programs affecting vulnerability and adaptation to climate change

Due to large scale afforestation programs and forest conservation legislations, India's total forest area seems to have stabilized or even increased. In spite of such efforts, forest fragmentation and degradation continues, with forests being subject to increased pressure due to anthropogenic factors. Such fragmentation and degradation is leading to the forest cover to change from very dense to moderately dense and open forest and 253 km(2) of very dense forest has been converted to moderately dense forest, open forest, scrub and non-forest (during 2005-2007). Similarly, there has been a degradation of 4,120 km(2) of moderately dense forest to open forest, scrub and non-forest resulting in a net loss of 936 km(2) of moderately dense forest. Additionally, 4,335 km(2) of open forest have degraded to scrub and non-forest. Coupled with pressure due to anthropogenic factors, climate change is likely to be an added stress on forests. Forest sector programs and policies are major factors that determine the status of forests and potentially resilience to projected impacts of climate change. An attempt is made to review the forest policies and programs and their implications for the status of forests and for vulnerability of forests to projected climate change. The study concludes that forest conservation and development policies and programs need to be oriented to incorporate climate change impacts, vulnerability and adaptation.

Impact of climate change at species level: a case study of teak in India

In this study, we model the long-term effect of climate change on commercially important teak (Tectona grandis) and its productivity in India. This modelling assessment is based on climate projections of the regional climate model of the Hadley Center (HadRM3) and the dynamic vegetation model, IBIS. According to the model projections, 30% of teak grids in India are vulnerable to climate change under both A2 and B2 SRES scenarios because the future climate may not be optimal for teak at these grids. However, the net primary productivity and biomass are expected to increase because of elevated levels of CO2. Given these directions of likely impacts, it is crucial to further investigate the climate change impacts on teak and incorporate such findings into long-term teak plantation programs. This study also demonstrates the feasibility and limitations of assessing the impact of projected climate change at the species level in the tropics.

Implications of climate change on mitigation potential estimates for forest sector in India

Climate change is projected to impact forest ecosystems, including biodiversity and Net Primary Productivity (NPP). National level carbon forest sector mitigation potential estimates are available for India; however impacts of projected climate change are not included in the mitigation potential estimates. Change in NPP (in gC/m(2)/yr) is taken to represent the impacts of climate change. Long term impacts of climate change (2085) on the NPP of Indian forests are available; however no such regional estimates are available for short and medium terms. The present study based on GCM climatology scenarios projects the short, medium and long term impacts of climate change on forest ecosystems especially on NPP using BIOME4 vegetation model. We estimate that under A2 scenario by the year 2030 the NPP changes by (-5) to 40% across different agro-ecological zones (AEZ). By 2050 it increases by 15% to 59% and by 2070 it increases by 34 to 84%. However, under B2 scenario it increases only by 3 to 25%, 3.5 to 34% and (-2.5) to 38% respectively, in the same time periods. The cumulative mitigation potential is estimated to increase by up to 21% (by nearly 1 GtC) under A2 scenario between the years 2008 and 2108, whereas, under B2 the mitigation potential increases only by 14% (646 MtC). However, cumulative mitigation potential estimates obtained from IBIS-a dynamic global vegetation model suggest much smaller gains, where mitigation potential increases by only 6% and 5% during the period 2008 to 2108.

A macroeconomic analysis of adaptation to climate change impacts on forests in India

We examine the potential for adaptation to climate change in Indian forests, and derive the macroeconomic implications of forest impacts and adaptation in India. The study is conducted by integrating results from the dynamic global vegetation model IBIS and the computable general equilibrium model GRACE-IN, which estimates macroeconomic implications for six zones of India. By comparing a reference scenario without climate change with a climate impact scenario based on the IPCC A2-scenario, we find major variations in the pattern of change across zones. Biomass stock increases in all zones but the Central zone. The increase in biomass growth is smaller, and declines in one more zone, South zone, despite higher stock. In the four zones with increases in biomass growth, harvest increases by only approximately 1/3 of the change in biomass growth. This is due to two market effects of increased biomass growth. One is that an increase in biomass growth encourages more harvest given other things being equal. The other is that more harvest leads to higher supply of timber, which lowers market prices. As a result, also the rent on forested land decreases. The lower prices and rent discourage more harvest even though they may induce higher demand, which increases the pressure on harvest. In a less perfect world than the model describes these two effects may contribute to an increase in the risk of deforestation because of higher biomass growth. Furthermore, higher harvest demands more labor and capital input in the forestry sector. Given total supply of labor and capital, this increases the cost of production in all the other sectors, although very little indeed. Forestry dependent communities with declining biomass growth may, however, experience local unemployment as a result.

Integrated modelling approaches to analysis of climate change impacts on forests and forest management

This paper reviews integrated economic and ecological models that address impacts and adaptation to climate change in the forest sector. Early economic model studies considered forests as one out of many possible impacts of climate change, while ecological model studies tended to limit the economic impacts to fixed price-assumptions. More recent studies include broader representations of both systems, but there are still few studies which can be regarded fully integrated. Full integration of ecological and economic models is needed to address forest management under climate change appropriately. The conclusion so far is that there are vast uncertainties about how climate change affects forests. This is partly due to the limited knowledge about the global implications of the social and economical adaptation to the effects of climate change on forests.

Climate change and agricultrue-An Indian perspective

In this paper, we examine the major predictions made so far regarding the nature of climate change and its impacts on our region in the light of the known errors of the set of models and the observations over this century. The major predictions of the climate models about the impact of increased concentration of greenhouse gases ave at variance with the observations over the Indian region during the last century characterized by such increases and global warming. It is important to note that as far as the Indian region is concerned, the impact of year-to-year variation of the monsoon will continue to be dominant over longer period changes even in the presence of global warming. Recent studies have also brought out the uncertainties in the yields simulated by crop models. It is suggested that a deeper understanding of the links between climate and agricultural productivity is essential for generating reliable predictions of impact of climate change. Such an insight is also required for identifying cropping patterns and management practices which are tailored for sustained maximum yield in the face of the vagaries of the monsoon.

Recommendations for driver licensing and traffic law enforcement in India aiming to improve road safety

During the last decade, developing countries such as India have been exhibiting rapid increase in human population and vehicles, and increase in road accidents. Inappropriate driving behaviour is considered one of the major causes of road accidents in India as compared to defective geometric design of pavement or mechanical defects in vehicles. It can result in conditions such as lack of lane discipline, disregard to traffic laws, frequent traffic violations, increase in crashes due to self-centred driving, etc. It also demotivates educated drivers from following good driving practices. Hence, improved driver behaviour can be an effective countermeasure to reduce the vulnerability of road users and inhibit crash risks. This article highlights improved driver behaviour through better driver education, driver training and licensing procedures along with good on-road enforcement; as an effective countermeasure to ensure road safety in India. Based on the review and analysis, the article also recommends certain measures pertaining to driver licensing and traffic law enforcement in India aimed at improving road safety.

Multivariate nonlinear ensemble prediction of daily chaotic rainfall with climate inputs

The basic characteristic of a chaotic system is its sensitivity to the infinitesimal changes in its initial conditions. A limit to predictability in chaotic system arises mainly due to this sensitivity and also due to the ineffectiveness of the model to reveal the underlying dynamics of the system. In the present study, an attempt is made to quantify these uncertainties involved and thereby improve the predictability by adopting a multivariate nonlinear ensemble prediction. Daily rainfall data of Malaprabha basin, India for the period 1955-2000 is used for the study. It is found to exhibit a low dimensional chaotic nature with the dimension varying from 5 to 7. A multivariate phase space is generated, considering a climate data set of 16 variables. The chaotic nature of each of these variables is confirmed using false nearest neighbor method. The redundancy, if any, of this atmospheric data set is further removed by employing principal component analysis (PCA) method and thereby reducing it to eight principal components (PCs). This multivariate series (rainfall along with eight PCs) is found to exhibit a low dimensional chaotic nature with dimension 10. Nonlinear prediction employing local approximation method is done using univariate series (rainfall alone) and multivariate series for different combinations of embedding dimensions and delay times. The uncertainty in initial conditions is thus addressed by reconstructing the phase space using different combinations of parameters. The ensembles generated from multivariate predictions are found to be better than those from univariate predictions. The uncertainty in predictions is decreased or in other words predictability is increased by adopting multivariate nonlinear ensemble prediction. The restriction on predictability of a chaotic series can thus be altered by quantifying the uncertainty in the initial conditions and also by including other possible variables, which may influence the system. (C) 2011 Elsevier B.V. All rights reserved.

Use of climate information for farm-level decision making: rainfed groundnut in southern India

The production of rainfed crops in semi-arid tropics exhibits large variation in response to the variation in seasonal rainfall. There are several farm-level decisions such as the choice of cropping pattern, whether to invest in fertilizers, pesticides etc., the choice of the period for planting, plant population density etc. for which the appropriate choice (associated with maximum production or minimum risk) depends upon the nature of the rainfall variability or the prediction for a specific year. In this paper, we have addressed the problem of identifying the appropriate strategies for cultivation of rainfed groundnut in the Anantapur region in a semi-arid part of the Indian peninsula. The approach developed involves participatory research with active collaboration with farmers, so that the problems with perceived need are addressed with the modern tools and data sets available. Given the large spatial variation of climate and soil, the appropriate strategies are necessarily location specific. With the approach adopted, it is possible to tap the detailed location specific knowledge of the complex rainfed ecosystem and gain an insight into the variety of options of land use and management practices available to each category of stakeholders. We believe such a participatory approach is essential for identifying strategies that have a favourable cost-benefit ratio over the region considered and hence are associated with a high chance of acceptance by the stakeholders. (C) 2002 Elsevier Science Ltd. All rights reserved.