Energy carbon emission structure and reduction potential focused on the supply-side and demand-side.

In recent years, the environmental problems caused by excessive carbon emissions from energy sources have become increasingly serious, which not only aggravates the climate change caused by the greenhouse effect but also seriously restricts the sustainable development of Chinese economy. An attempt is made in this paper to use energy consumption method and input-output method to study the carbon emission structure of China's energy system and industry in 2015 from two perspectives, namely China's energy supply side and energy demand side, by taking into account the two factors of energy invest in gross capital formation and export. The results show that neglecting these two factors will lead to underestimation of intermediate use carbon emissions and overestimation of final use carbon emissions. On energy supply side, the carbon emission structure of China's energy system is still dominated by high-carbon energy (raw coal, coke, diesel, and fuel oil, etc.), accounting for more than 70% of total energy carbon emissions; on the contrary, the natural gas such as clean energy accounts for only 3.45% of total energy carbon emissions, indicating that the energy consumption structure optimization and emission reduction gap of China's energy supply side are still substantial. On energy demand side, the final use (direct consumption by residents and government) produces less carbon emissions, while the intermediate use (production by enterprises) produces more than 90% of the total energy carbon emissions. Fossil energy, power sector, heavy industry, chemical industry, and transportation belong to industries with larger carbon emissions and lower carbon emission efficiency, while agriculture, construction, light industry, and service belong to industries with fewer carbon emissions and higher carbon emission efficiency. This means that the optimization of industrial structure is conducive to slowing down the growth of energy carbon emissions on the demand side.

Transparency of Financial Reporting on Greenhouse Gas Emission Allowances: The Influence of Regulation.

This study focuses on the transparency of financial reporting on emission allowances (EA) and greenhouse gas (GHG) emissions within the European Union Emissions Trading Scheme (EU ETS). In particular, the different accounting treatments adopted by standard setters and professionals were analyzed to evaluate the influence of regulation in the transparency of financial reporting on EA and GHG emissions. Based on a sample of 85 companies registered with the Portuguese, Spanish, and French National Plans of Allocation (NPAs), data collected from the annual reports were analyzed for the 2008-2014 period. The results were obtained based on descriptive, logistic regressions and panel data statistical techniques, and they show that better levels of transparency of financial reporting on EA and GHG emissions are conditioned by a variety of accounting policies, which compromises the comparability of the financial information. The adoption of the International Accounting Standards Board (IASB) standards set lead to a greater dispersion in the choice of the accounting approach and a higher probability of not disclosing any information, as well as adopting off-balance sheet policies. Therefore, the regulatory factor is a determinant of the level of transparency of financial reporting on EA and GHG emissions, contributing to reduce strategies of omission.

With or without U(K): A pre-Brexit network analysis of the EU ETS.

The European Emission Trading System (EU ETS) is commonly regarded as the key pillar of the European climate policy and as the main unifying tool to create a unique carbon price all over Europe. The UK has always played a crucial role in the EU ETS, being one of the most active national registry and a crucial hub for the exchange of allowances in the market. Brexit, therefore, could deeply modify the number and directions of such exchanges as well as the centrality of the other countries in this system. To investigate these issues, the present paper exploits network analysis tools to compare the structure of the EU ETS market in its first two phases with and without the UK, investigating a few different scenarios that might emerge from a possible reallocation of the transactions that have involved UK partners. We find that without the UK the EU ETS network would become in general much more homogeneous, though results may change focusing on the type of accounts involved in the transactions.

Carbon footprint accounts of Pakistan: an input-output life cycle assessment model.

The Paris agreement (2015) seems a significant achievement towards a global mitigation policy to climate change. However, implementing the promised Intended Nationally Determined Contribution (INDC) targets by the participating countries has become a real challenge. In this aspect, the input-output life cycle assessment (IO-LCA) model provides an important assessment mechanism to design suitable abatement policies limiting the rising greenhouse gas (GHG) emissions. The present paper develops an IO-LCA model for Pakistan and estimates all the direct and indirect GHG emissions caused by all the production activities during all the stages of production. This task is achieved in three phases. In phase 1, the Pakistan input-output table (IOT) is constructed. In phase 2, the GHG environmental satellite accounts are created for each sector in the economy. In phase 3, the GHG emissions are linked to different categories of final demand.

The impact of human health co-benefits on evaluations of global climate policy.

The health co-benefits of CO2 mitigation can provide a strong incentive for climate policy through reductions in air pollutant emissions that occur when targeting shared sources. However, reducing air pollutant emissions may also have an important co-harm, as the aerosols they form produce net cooling overall. Nevertheless, aerosol impacts have not been fully incorporated into cost-benefit modeling that estimates how much the world should optimally mitigate. Here we find that when both co-benefits and co-harms are taken fully into account, optimal climate policy results in immediate net benefits globally, overturning previous findings from cost-benefit models that omit these effects. The global health benefits from climate policy could reach trillions of dollars annually, but will importantly depend on the air quality policies that nations adopt independently of climate change. Depending on how society values better health, economically optimal levels of mitigation may be consistent with a target of 2 °C or lower.

How production-based and consumption-based emissions accounting systems change climate policy analysis: the case of CO2 convergence.

Much of the existing research analyses on emissions and climate policy are dominantly based on emissions data provided by production-based accounting (PBA) system. However, PBA provides an incomplete picture of driving forces behind these emission changes and impact of global trade on emissions, simply by neglecting the environmental impacts of consumption. To remedy this problem, several studies propose to consider national emissions calculated by consumption-based accounting (CBA) systems in greenhouse gas (GHG) assessments for progress and comparisons among the countries. In this article, we question the relevance of PBA's dominance. To this end, we, firstly, try to assess and compare PBA with CBA adopted in greenhouse gas emissions accounting systems in climate change debates on several issues and to discuss the policy implications of the choice of approach. Secondly, we investigate the convergence patterns in production-based and consumption-based emissions in 35 Annex B countries for the period between 1990 and 2015. This study, for the first time, puts all these arguments together and discusses possible outcomes of convergence analysis by employing both the production- and consumption-based CO2 per capita emissions data. The empirical results found some important conclusions which challenge most of the existing CO2 convergence studies.

Healthy and sustainable diets that meet greenhouse gas emission reduction targets and are affordable for different income groups in the UK.

OBJECTIVE: To model dietary changes required to shift the UK population to diets that meet dietary recommendations for health, have lower greenhouse gas emissions (GHGE) and are affordable for different income groups. DESIGN: Linear programming was used to create diets that meet dietary requirements for health and reduced GHGE (57 and 80 % targets) by income quintile, taking account of food budgets and foods currently purchased, thereby keeping dietary change to a minimum.Setting/ParticipantsNutrient composition, GHGE and price data were mapped to 101 food groups in household food purchase data (UK Living Cost and Food Survey (2013), 5144 households). RESULTS: Current diets of all income quintiles had similar total GHGE, but the source of GHGE differed by types of meat and amount of fruit and vegetables. It was possible to create diets with a 57 % reduction in GHGE that met dietary and cost restraints in all income groups. In the optimised diets, the food sources of GHGE differed by income group due to the cost and keeping the level of deviation from current diets to a minimum. Broadly, the changes needed were similar across all groups; reducing animal-based products and increasing plant-based foods but varied by specific foods. CONCLUSIONS: Healthy and lower-GHGE diets could be created in all income quintiles but tailoring changes to income groups to minimise deviation may make dietary changes more achievable. Specific attention must be given to make interventions and policies appropriate for all income groups.

Carbon price volatility: The case of China.

Based on carbon spot prices selected from seven carbon pilots, we assess the financial performances related to carbon volatility in China on the overall perspective. According to the results, the Chinese carbon market fluctuated severely at the beginning of carbon trading, but has stabilised in general, despite several dramatic changes related to 'yearly compliance events'. Long-term memory exists in the volatility series. Moreover, asymmetry exists in the Chinese carbon market, and volatility reacts more severely to good news than to bad news. Finally, we discuss our empirical results, and make certain suggestions regarding firms' awareness, international cooperation and individual investors not only for policy makers in China but also for other developing countries who are contemplating either commencing carbon trading or improving the current market.

The Impacts of Regulations and Financial Development on the Operations of Supply Chains with Greenhouse Gas Emissions.

To establish a micro foundation to understand the impacts of greenhouse gas (GHG) emission regulations and financial development levels on firms' GHG emissions, we build a two-stage dynamic game model to incorporate GHG emission regulations (in terms of an emission tax) and financial development (represented by the corresponding financing cost) into a two-echelon supply chain. With the subgame perfect equilibrium, we identify the conditions to determine whether an emission regulatory policy and/or financial development can affect GHG emissions in the supply chain. We also reveal the impacts of the strictness of GHG emission regulation, the financial development level, and the unit GHG emission rate on the operations of the supply chain and the corresponding profitability implications. Managerial insights are also discussed.

GHGs and air pollutants embodied in China's international trade: Temporal and spatial index decomposition analysis.

Temporal index decomposition analysis and spatial index decomposition analysis were applied to understand the driving forces of the emissions embodied in China's exports and net exports during 2002-2011, respectively. The accumulated emissions embodied in exports accounted for approximately 30% of the total emissions in China; although the contribution of the sectoral total emissions intensity (technique effect) declined, the scale effect was largely responsible for the mounting emissions associated with export, and the composition effect played a largely insignificant role. Calculations of the emissions embodied in net exports suggest that China is generally in an environmentally inferior position compared with its major trade partners. The differences in the economy-wide emission intensities between China and its major trade partners were the biggest contribution to this reality, and the trade balance effect played a less important role. However, a lower degree of specialization in pollution intensive products in exports than in imports helped to reduce slightly the emissions embodied in net exports. The temporal index decomposition analysis results suggest that China should take effective measures to optimize export and supply-side structure and reduce the total emissions intensity. According to spatial index decomposition analysis, it is suggested that a more aggressive import policy was useful for curbing domestic and global emissions, and the transfer of advanced production technologies and emission control technologies from developed to developing countries should be a compulsory global environmental policy option to mitigate the possible leakage of pollution emissions caused by international trade.

The causal nexus between carbon dioxide emissions and agricultural ecosystem-an econometric approach.

Achieving a long-term food security and preventing hunger include a better nutrition through sustainable systems of production, distribution, and consumption. Nonetheless, the quest for an alternative to increasing global food supply to meet the growing demand has led to the use of poor agricultural practices that promote climate change. Given the contribution of the agricultural ecosystem towards greenhouse gas (GHG) emissions, this study investigated the causal nexus between carbon dioxide emissions and agricultural ecosystem by employing a data spanning from 1961 to 2012. Evidence from long-run elasticity shows that a 1 % increase in the area of rice paddy harvested will increase carbon dioxide emissions by 1.49 %, a 1 % increase in biomass-burned crop residues will increase carbon dioxide emissions by 1.00 %, a 1 % increase in cereal production will increase carbon dioxide emissions by 1.38 %, and a 1 % increase in agricultural machinery will decrease carbon dioxide emissions by 0.09 % in the long run. There was a bidirectional causality between carbon dioxide emissions, cereal production, and biomass-burned crop residues. The Granger causality shows that the agricultural ecosystem in Ghana is sensitive to climate change vulnerability.

Cost-effectiveness analysis of farmers' rice straw management practices considering CH4 and N2O emissions.

This study assessed the environmental consequences of burning and other rice straw management practices in terms of non-CO2 greenhouse gas (GHG) emissions, and evaluated the cost-effectiveness of selected rice straw management alternatives. On a per-hectare basis and considering a time horizon of five years, incorporating stubble more than 30 days before crop establishment, and incorporating composted rice straw in the field yielded the lowest cumulative CH4 and N2O emissions. Considering the associated costs and secondary benefits, the most cost-effective option for farmers is to incorporate stubble and straw in the soil more than 30 days before crop establishment. Rapid straw composting and incorporation of rice straw compost entails much higher additional cost but it also significantly mitigates GHG emission, hence it is the next most cost-effective option. Incorporating rice stubble and straw less than a month before crop establishment and removing rice straw for use as animal feed, on the other hand, appear to result in a net increase in ton CO2-eq given the assumed time horizon. The results underscore the impacts on the environment of small changes in straw management practices entailing minimal costs. Cost-effectiveness analysis considering rice straw for power generation and bio ethanol production is recommended. Further study on water management and tillage practice as mitigation options is recommended for a broader perspective useful for farmers, policy-makers, and other rice stakeholders.

A Circular Bioeconomy with Biobased Products from CO2 Sequestration.

The unprecedented climate change influenced by elevated concentrations of CO2 has compelled the research world to focus on CO2 sequestration. Although existing natural and anthropogenic CO2 sinks have proven valuable, their ability to further assimilate CO2 is now questioned. Thus, we highlight here the importance of biological sequestration methods as alternate and viable routes for mitigating climate change while simultaneously synthesizing value-added products that could sustainably fuel the circular bioeconomy. Four conceptual models for CO2 biosequestration and the synthesis of biobased products, as well as an integrated CO2 biorefinery model, are proposed. Optimizing and implementing this biorefinery model might overcome the limitations of existing sequestration methods and could help realign the carbon balance.