JP

Existing fuel taxes play a major role in determining the welfare effects of exempting the transportation sector from measures to control greenhouse gases. To study this phenomenon we modify the MIT Emissions Prediction and Policy Analysis (EPPA) model to disaggregate the household transportation sector. This improvement requires an extension of the GTAP data set that underlies the model. The revised and extended facility is then used to compare economic costs of cap-and-trade systems differentiated by sector, focusing on two regions: the USA where the fuel taxes are low, and Europe where the fuel taxes are high. We find that the interplay between carbon policies and pre-existing taxes leads to different results in these regions: in the USA exemption of transport from such a system would increase the welfare cost of achieving a national emissions target, while in Europe such exemptions will correct pre-existing distortions and reduce the cost.

The spatial distribution and fate of riverine dissolved organic carbon (DOC) in the Arctic may be significant for the regional carbon cycle but are difficult to fully characterize using the sparse observations alone. Numerical models of the circulation and biogeochemical cycles of the region can help to interpret and extrapolate the data and may ultimately be applied in global change sensitivity studies. Here we develop and explore a regional, three-dimensional model of the Arctic Ocean in which, for the first time, we explicitly represent the sources of riverine DOC with seasonal discharge based on climatological field estimates. Through a suite of numerical experiments, we explore the distribution of DOC-like tracers with realistic riverine sources and a simple linear decay to represent remineralization through microbial degradation. The model reproduces the slope of the DOC-salinity relationship observed in the eastern and western Arctic basins when the DOC tracer lifetime is about 10 years, consistent with published inferences from field data. The new empirical parameterization of riverine DOC and the regional circulation and biogeochemical model provide new tools for application in both regional and global change studies.

Hydrogen transportation has been proposed as a low-carbon alternative to the current gasoline-powered fleet. Using a computable general equilibrium model of the world economy, we explore the economic viability of hydrogen transportation in several different tax and carbon stabilisation policy scenarios. For each scenario, various combinations of hydrogen fuel price and vehicle mark-ups are used as inputs to explore what technological improvements in terms of cost reductions would be necessary for the technology to penetrate the market. The effect of introducing reduced-carbon fuel substitutes, such as ethanol-blend fuels, on the economic viability of hydrogen transportation is also explored. Hydrogen-powered fuel cell vehicles could make a significant contribution to decarbonisation of transportation if production of hydrogen itself is not carbon-intensive. For those involved in hydrogen research, this analysis provides cost targets that would need to be met for hydrogen transportation to be economically viable within the next century. Cost targets needed for the technology to penetrate in the USA are such that the hydrogen fuel would need to be in the range of 1 to 1.7 times the 1997 price of gasoline and the vehicle mark-up of an average fuel cell automobile would need to be no more than 1.3 to 1.5 times an average conventional vehicle.

© 2009 Journal of Transport Economics and Policy

The Kyoto Protocol is an international agreement aimed at limiting emissions of several greenhouse gases (GHGs; specifically: CO2, CH4, N2O, PFCs, HFCs, and SF6), and allows credit for approved sinks for CO2. It does not include consideration of several other trace atmospheric constituents that have important indirect effects on the radiative budget of the atmosphere. Here we show that inclusion of other GHGs and CO2 sinks greatly reduces the cost of achieving CO2 emissions reductions specified under the agreement. The Kyoto Protocol extrapolated to 2100 reduces predicted warming by only about 17%. The errors caused by simulating other GHGs with scaled amounts of CO2 on atmospheric composition, climate, and ecosystems are small. Larger errors come from failure to account for interactive and climatic effects of gases that affect atmospheric composition but are not included in the protocol (CO, NOx, and SOx). Over the period to 2100, the Global Warming Potential (GWP) indices based on a 100-year time horizon as specified in the protocol appear to be an adequate representation of trace gas climatic effects. The principal reason for the success of this simplified GWP approach in our calculations is that the mix of gas emissions resulting from a carbon-only rather than a multi-gas control strategy does not change by a large amount.

The Kyoto Protocol allows reductions in emissions of several 'greenhouse' gases to be credited against a CO2-equivalent emissions limit, calculated using 'global warming potential' indices for each gas. Using an integrated global-systems model, it is shown that a multi-gas control strategy could greatly reduce the costs of fulfilling the Kyoto Protocol compared with a CO2-only strategy. Extending the Kyoto Protocol to 2100 without more severe emissions reductions shows little difference between the two strategies in climate and ecosystem effects. Under a more stringent emissions policy, the use of global warming potentials as applied in the Kyoto Protocol leads to considerably more mitigation of climate change for multi-gas strategies than for the—supposedly equivalent—CO2-only control, thus emphasizing the limits of global warming potentials as a tool for political decisions.

© 2008 Nature Publishing Group

In the effort to understand and address global climate change, most analysis has focused on rapidly rising emissions of carbon dioxide (CO2) and options for reducing them. Indeed, carbon dioxide, a byproduct of fossil fuel combustion, is the principal greenhouse gas contributing to global warming. However, other greenhouse gases including methane, nitrous oxide, and a number of industrial-process gases also are important contributors to climate change. From both an environmental and an economic standpoint, effective climate strategies should address both carbon dioxide and these other greenhouse gases.

Non-CO2 gases account for 17 percent of total greenhouse gas emissions in the United States and a much larger percentage in developing countries such as India and Brazil. In addition, a host of local and regional air pollutant emissions interact in the atmosphere’s complex chemistry to produce either additional warming or cooling effects. Understanding how these gases interact—and how to craft policies that address a range of environmental impacts—is vital to addressing both local and global environmental concerns.

In this report, authors John Reilly, Henry Jacoby, and Ronald Prinn of M.I.T. unravel some of the complexities associated with analyzing the impacts of these multiple gases and opportunities for reducing them. Emissions originate from a wide range of sectors and practices. Accurate calculation of emissions and emission reductions is easier for some sources than for others. For policy purposes, various greenhouse gases are compared on the basis of “global warming potentials,” which are based on the atmospheric lifetime of each gas and its ability to trap heat. However, these do not yet accurately capture the climatic effects of all the substances contributing to climate change and so must be used with some caution. While scientists have recognized the various roles of non-CO2 gases and other substances that contribute to climate change for some time, only recently have the various pieces of the puzzle been fit together to provide a more complete picture of the critical role these gases can play in a cost-effective strategy to address climate change.

Using M.I.T.’s general equilibrium model, the authors demonstrate that including all greenhouse gases in a moderate emissions reduction strategy not only increases the overall amount of emissions reductions, but also reduces the overall cost of mitigation: a win-win strategy. In fact, due to the high potency of the non-CO2 gases and the current lack of economic incentives, this analysis concludes that control of these gases is especially important and cost-effective in the near term. The policy implications are clear: any attempt to curb warming should include efforts to reduce both CO2 and non-CO2 greenhouse gases.

 

 

A multi-gas control strategy that includes abatement of all greenhouse gases and sink enhancement significantly reduces the cost of the Kyoto Protocol Most discussion of how to address global warming has focused on one single greenhouse gas (GHG), carbon dioxide, from fossil fuel use only. Yet, other GHGs and carbon sinks also affect the atmosphere's "radiative budget." The Kyoto Protocol allows credit for enhancing sinks and reducing five classes of other greenhouse gases-methane, nitrous oxide, perfluorocarbons, hydrofluoro-carbons, and sulfur hexafluoride-in a multigas emissions limit. Several studies at MIT address the cost implications of the Kyoto Protocol's multigas approach.

 

 

Under the Kyoto Protocol, reductions in emissions of several radiative gases can be credited against a carbon equivalent emissions cap. We investigate the economic implications of including other greenhouse gases and sinks in the climate change control policy using our revised and updated version of the Emissions Prediction and Policy Analysis (EPPA) model. In addition we amended our methane abatement curves based on different interpretations of estimates that substantial abatement of methane can be obtained at no cost. The inclusion of other greenhouse gases and CO2 sinks reduces the costs of achieving CO2 emissions reductions specified under the agreement.

Under the Kyoto Protocol, reductions in emissions of several radiative gases can be credited against a carbon equivalent emissions cap. We investigate the economic implications of including other greenhouse gases and sinks in the climate change control policy using our revised and updated version of the Emissions Prediction and Policy Analysis (EPPA) model. In addition we amended our methane abatement curves based on different interpretations of estimates that substantial abatement of methane can be obtained at no cost. The inclusion of other greenhouse gases and CO2 sinks reduces the costs of achieving CO2 emissions reductions specified under the agreement.

This study evaluates air pollution-related health impacts on the Chinese economy by using an expanded version of the Emissions Prediction and Policy Analysis model. We estimated that marginal welfare impact to the Chinese economy of ozone and particulate-matter concentrations above background levels increased from 1997 US$22 billion in 1975 to 1997 US$112 billion in 2005, despite improvements in overall air quality. This increase is a result of the growing urban population and rising wages that thus increased the value of lost labor and leisure. In relative terms, however, welfare losses from air pollution decreased from 14% of the historical welfare level to 5% during the same period because the total size of the economy grew much faster than the absolute air pollution damages. In addition, we estimated that particulate-matter pollution alone led to a gross domestic product loss of 1997 US$64 billion in 1995. Given that the World Bank’s comparable estimate drawn from a static approach was only 1997 US$34 billion, this result suggests that conventional static methods neglecting the cumulative impact of pollution-caused welfare damage are likely to underestimate pollution-health costs substantially. However, our analysis of uncertainty involved in exposure–response functions suggests that our central estimates are susceptible to significantly large error bars of around +/- 80%.

© 2011 Elsevier Ltd. All rights reserved.

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