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.

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.

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.

Assessment of alternative disposal methods to reduce greenhouse gas emissions from municipal solid waste in India.

Open dumping, the most commonly practiced method of solid waste disposal in Indian cities, creates serious environment and economic challenges, and also contributes significantly to greenhouse gas emissions. The present article attempts to analyse and identify economically effective ways to reduce greenhouse gas emissions from municipal solid waste. The article looks at the selection of appropriate methods for the control of methane emissions. Multivariate functional models are presented, based on theoretical considerations as well as the field measurements to forecast the greenhouse gas mitigation potential for all the methodologies under consideration. Economic feasibility is tested by calculating the unit cost of waste disposal for the respective disposal process. The purpose-built landfill system proposed by Yedla and Parikh has shown promise in controlling greenhouse gas and saving land. However, these studies show that aerobic composting offers the optimal method, both in terms of controlling greenhouse gas emissions and reducing costs, mainly by requiring less land than other methods.

Global cropland and greenhouse gas impacts of UK food supply are increasingly located overseas.

Producing sufficient, healthy food for a growing world population amid a changing climate is a major challenge for the twenty-first century. Agricultural trade could help alleviate this challenge by using comparative productivity advantages between countries. However, agricultural trade has implications for national food security and could displace environmental impacts from developed to developing countries. This study illustrates the global effects resulting from the agricultural trade of a single country, by analysing the global cropland and greenhouse gas impacts of the UK's food and feed supply. The global cropland footprint associated with the UK food and feed supply increased by 2022 kha (+23%) from 1986 to 2009. Greenhouse gas emissions (GHGE) associated with fertilizer and manure application, and rice cultivation remained relatively constant at 7.9 Mt CO2e between 1987 and 2008. Including GHGE from land-use change, however, leads to an increase from 19.1 in 1987 to 21.9 Mt CO2e in 2008. The UK is currently importing over 50% of its food and feed, whereas 70% and 64% of the associated cropland and GHGE impacts, respectively, are located abroad. These results imply that the UK is increasingly reliant on external resources and that the environmental impact of its food supply is increasingly displaced overseas.

Land use efficiency: anticipating future demand for land-sector greenhouse gas emissions abatement and managing trade-offs with agriculture, water, and biodiversity.

Competition for land is increasing, and policy needs to ensure the efficient supply of multiple ecosystem services from land systems. We modelled the spatially explicit potential future supply of ecosystem services in Australia's intensive agricultural land in response to carbon markets under four global outlooks from 2013 to 2050. We assessed the productive efficiency of greenhouse gas emissions abatement, agricultural production, water resources, and biodiversity services and compared these to production possibility frontiers (PPFs). While interacting commodity markets and carbon markets produced efficient outcomes for agricultural production and emissions abatement, more efficient outcomes were possible for water resources and biodiversity services due to weak price signals. However, when only two objectives were considered as per typical efficiency assessments, efficiency improvements involved significant unintended trade-offs for the other objectives and incurred substantial opportunity costs. Considering multiple objectives simultaneously enabled the identification of land use arrangements that were efficient over multiple ecosystem services. Efficient land use arrangements could be selected that meet society's preferences for ecosystem service provision from land by adjusting the metric used to combine multiple services. To effectively manage competition for land via land use efficiency, market incentives are needed that effectively price multiple ecosystem services.

Political influences on greenhouse gas emissions from US states.

Starting at least in the 1970s, empirical work suggested that demographic (population) and economic (affluence) forces are the key drivers of anthropogenic stress on the environment. We evaluate the extent to which politics attenuates the effects of economic and demographic factors on environmental outcomes by examining variation in CO2 emissions across US states and within states over time. We find that demographic and economic forces can in part be offset by politics supportive of the environment--increases in emissions over time are lower in states that elect legislators with strong environmental records.

Greenhouse gas emissions and production cost of ethanol produced from biosyngas fermentation process.

Life cycle (LC) of ethanol has been evaluated to determine the environmental and economical viability of ethanol that was derived from biosyngas fermentation process (gasification-biosynthesis). Four scenarios [S1: untreated (raw), S2: treated (torrefied); S3: untreated-chemical looping gasification (CLG), S4: treated-CLG] were considered. The simulated biosyngas composition was used in this evaluation process. The GHG emissions and production cost varied from 1.19 to 1.32 kg-CO2 e/L and 0.78 to 0.90$/L, respectively, which were found to be dependent on the scenarios. The environmental and economical viability was found be improved when untreated feedstock was used instead of treated feedstock. Although the GHG emissions slightly reduced in the case of CLG process, production cost was nominally increased because of the cost incurred by the use of CaO. This study revealed that miscanthus is a promising feedstock for the ethanol industry, even if it is grown on marginal land, which can help abate GHG emissions.

Greater accordance with the Dietary Approaches to Stop Hypertension dietary pattern is associated with lower diet-related greenhouse gas production but higher dietary costs in the United Kingdom.

BACKGROUND: The Dietary Approaches to Stop Hypertension (DASH) diet is a proven way to prevent and control hypertension and other chronic disease. Because the DASH diet emphasizes plant-based foods, including vegetables and grains, adhering to this diet might also bring about environmental benefits, including lower associated production of greenhouse gases (GHGs). OBJECTIVE: The objective was to examine the interrelation between dietary accordance with the DASH diet and associated GHGs. A secondary aim was to examine the retail cost of diets by level of DASH accordance. DESIGN: In this cross-sectional study of adults aged 39-79 y from the European Prospective Investigation into Cancer and Nutrition-Norfolk, United Kingdom cohort (n = 24,293), dietary intakes estimated from food-frequency questionnaires were analyzed for their accordance with the 8 DASH food and nutrient-based targets. Associations between DASH accordance, GHGs, and dietary costs were evaluated in regression analyses. Dietary GHGs were estimated with United Kingdom-specific data on carbon dioxide equivalents associated with commodities and foods. Dietary costs were estimated by using national food prices from a United Kingdom-based supermarket comparison website. RESULTS: Greater accordance with the DASH dietary targets was associated with lower GHGs. Diets in the highest quintile of accordance had a GHG impact of 5.60 compared with 6.71 kg carbon dioxide equivalents/d for least-accordant diets (P < 0.0001). Among the DASH food groups, GHGs were most strongly and positively associated with meat consumption and negatively with whole-grain consumption. In addition, higher accordance with the DASH diet was associated with higher dietary costs, with the mean cost of diets in the top quintile of DASH scores 18% higher than that of diets in the lowest quintile (P < 0.0001). CONCLUSIONS: Promoting wider uptake of the DASH diet in the United Kingdom may improve population health and reduce diet-related GHGs. However, to make the DASH diet more accessible, food affordability, particularly for lower income groups, will have to be addressed.

Cost of abating greenhouse gas emissions with cellulosic ethanol.

We develop an integrated framework to determine and compare greenhouse gas (GHG) intensities and production costs of cellulosic ethanol derived from corn stover, switchgrass, and miscanthus grown on high and low quality soils for three representative counties in the Eastern United States. This information is critical for assessing the cost-effectiveness of utilizing cellulosic ethanol for mitigating GHG emissions and designing appropriate policy incentives to support cellulosic ethanol production nationwide. We find considerable variations in the GHG intensities and production costs of ethanol across feedstocks and locations mostly due to differences in yields and soil characteristics. As compared to gasoline, the GHG savings from miscanthus-based ethanol ranged between 130% and 156% whereas that from switchgrass ranged between 97% and 135%. The corresponding range for GHG savings with corn stover was 57% to 95% and marginally below the threshold of at least 60% for biofuels classified as cellulosic biofuels under the Renewable Fuels Standard. Estimates of the costs of producing ethanol relative to gasoline imply an abatement cost of at least $48 Mg(-1) of GHG emissions (carbon dioxide equivalent) abated and can be used to infer the minimum carbon tax rate needed to induce consumption of cellulosic ethanol.

The effect of feed demand on greenhouse gas emissions and farm profitability for organic and conventional dairy farms.

The reduction of product-related greenhouse gas (GHG) emissions in milk production appears to be necessary. The reduction of emissions on an individual farm might be highly accepted by farm owners if it were accompanied by an increase in profitability. Using life cycle assessments to determine the product carbon footprints (PCF) and farm-level evaluations to record profitability, we explored opportunities for optimization based on analysis of 81 organic and conventional pasture-based dairy farms in southern Germany. The objective of the present study was to detect common determining factors for low PCF and high management incomes (MI) to achieve GHG reductions at the lowest possible operational cost. In our sample, organic farms, which performed economically better than conventional farms, produced PCF that were significantly higher than those produced by conventional farms [1.61 ± 0.29 vs. 1.45 ± 0.28 kg of CO2 equivalents (CO2eq) per kg of milk; means ± SD)]. A multiple linear regression analysis of the sample demonstrated that low feed demand per kilogram of milk, high grassland yield, and low forage area requirements per cow are the main factors that decrease PCF. These factors are also useful for improving a farm's profitability in principle. For organic farms, a reduction of feed demand of 100 g/kg of milk resulted in a PCF reduction of 105 g of CO2eq/kg of milk and an increase in MI of approximately 2.1 euro cents (c)/kg of milk. For conventional farms, a decrease of feed demand of 100 g/kg of milk corresponded to a reduction in PCF of 117 g of CO2eq/kg of milk and an increase in MI of approximately 3.1 c/kg of milk. Accordingly, farmers could achieve higher profits while reducing GHG emissions. Improved education and training of farmers and consultants regarding GHG mitigation and farm profitability appear to be the best methods of improving efficiency under traditional and organic farming practices.

Municipal solid waste management planning considering greenhouse gas emission trading under fuzzy environment.

Waste management activities can release greenhouse gases (GHGs) to the atmosphere, intensifying global climate change. Mitigation of the associated GHG emissions is vital and should be considered within integrated municipal solid waste (MSW) management planning. In this study, a fuzzy possibilistic integer programming (FPIM) model has been developed for waste management facility expansion and waste flow allocation planning with consideration of GHG emission trading in an MSW management system. It can address the interrelationships between MSW management planning and GHG emission control. The scenario of total system GHG emission control is analyzed for reflecting the feature that GHG emission credits may be tradable. An interactive solution algorithm is used to solve the FPIM model based on the uncertainty-averse preferences of decision makers in terms of p-necessity level, which represents the certainty degree of the imprecise objective. The FPIM model has been applied to a hypothetical MSW planning problem, where optimal decision schemes for facility expansion and waste flow allocation have been achieved with consideration of GHG emission control. The results indicate that GHG emission credit trading can decrease total system cost through re-allocation of GHG emission credits within the entire MSW management system. This will be helpful for decision makers to effectively determine the allowable GHG emission permits in practices.

Cost-effectiveness of feeding strategies to reduce greenhouse gas emissions from dairy farming.

The objective of this paper was to evaluate the cost-effectiveness of 3 feeding strategies to reduce enteric CH4 production in dairy cows by calculating the effect on labor income at the farm level and on greenhouse gas (GHG) emissions at the chain level (i.e., from production of farm inputs to the farm gate). Strategies included were (1) dietary supplementation of an extruded linseed product (56% linseed; 1kg/cow per day in summer and 2kg/cow per day in winter), (2) dietary supplementation of a nitrate source (75% nitrate; 1% of dry matter intake), and (3) reducing the maturity stage of grass and grass silage (grazing at 1,400 instead of 1,700kg of dry matter/ha and harvesting at 3,000 instead of 3,500kg of dry matter/ha). A dairy farm linear programing model was used to define an average Dutch dairy farm on sandy soil without a predefined feeding strategy (reference situation). Subsequently, 1 of the 3 feeding strategies was implemented and the model was optimized again to determine the new economically optimal farm situation. Enteric CH4 production in the reference situation and after implementing the strategies was calculated based on a mechanistic model for enteric CH4 and empirical formulas explaining the effect of fat and nitrate supplementation on enteric CH4 production. Other GHG emissions along the chain were calculated using life cycle assessment. Total GHG emissions in the reference situation added up to 840kg of CO2 equivalents (CO2e) per t of fat- and protein-corrected milk (FPCM) and yearly labor income of €42,605. Supplementation of the extruded linseed product reduced emissions by 9kg of CO2e/t of FPCM and labor income by €16,041; supplementation of the dietary nitrate source reduced emissions by 32kg of CO2e/t of FPCM and labor income by €5,463; reducing the maturity stage of grass and grass silage reduced emissions by 11kg of CO2e/t of FPCM and labor income by €463. Of the 3 strategies, reducing grass maturity was the most cost-effective (€57/t of CO2e compared with €241/t of CO2e for nitrate supplementation and €2,594/t of CO2e for linseed supplementation) and had the greatest potential to be used in practice because the additional costs were low.

The true cost of greenhouse gas emissions: analysis of 1,000 global companies.

This study elucidated the shadow price of greenhouse gas (GHG) emissions for 1,024 international companies worldwide that were surveyed from 15 industries in 37 major countries. Our results indicate that the shadow price of GHG at the firm level is much higher than indicated in previous studies. The higher shadow price was found in this study as a result of the use of Scope 3 GHG emissions data. The results of this research indicate that a firm would carry a high cost of GHG emissions if Scope 3 GHG emissions were the focus of the discussion of corporate social responsibility. In addition, such shadow prices were determined to differ substantially among countries, among sectors, and within sectors. Although a number of studies have calculated the shadow price of GHG emissions, these studies have employed country-level or industry-level data or a small sample of firm-level data in one country. This new data from a worldwide firm analysis of the shadow price of GHG emissions can play an important role in developing climate policy and promoting sustainable development.

Energy intensity, life-cycle greenhouse gas emissions, and economic assessment of liquid biofuel pipelines.

Petroleum fuels are predominantly transported domestically by pipelines, whereas biofuels are almost exclusively transported by rail, barge, and truck. As biofuel production increases, new pipelines may become economically attractive. Location-specific variables impacting pipeline viability include construction costs, availability and costs of alternative transportation modes, electricity prices and emissions (if priced), throughput, and subsurface temperature. When transporting alcohol or diesel-like fuels, pipelines have a lower direct energy intensity than rail, barge, and trucks if fluid velocity is under 1 m/s for 4-inch diameter pipelines and 2 m/s for 8-inch or larger pipelines. Across multiple hypothetical state-specific scenarios, profit-maximizing design velocities range from 1.2 to 1.9 m/s. In costs and GHG emissions, optimized pipelines outperform trucks in each state and rail and barge in most states, if projected throughput exceeds four billion liters/year. If emissions are priced, optimum design diameters typically increase to reduce pumping energy demands, increasing the cost-effectiveness of pipeline projects.

Computer simulation of energy use, greenhouse gas emissions, and process economics of the fluid milk process.

Energy-savings measures have been implemented in fluid milk plants to lower energy costs and the energy-related carbon dioxide (CO2) emissions. Although these measures have resulted in reductions in steam, electricity, compressed air, and refrigeration use of up to 30%, a benchmarking framework is necessary to examine the implementation of process-specific measures that would lower energy use, costs, and CO2 emissions even further. In this study, using information provided by the dairy industry and equipment vendors, a customizable model of the fluid milk process was developed for use in process design software to benchmark the electrical and fuel energy consumption and CO2 emissions of current processes. It may also be used to test the feasibility of new processing concepts to lower energy and CO2 emissions with calculation of new capital and operating costs. The accuracy of the model in predicting total energy usage of the entire fluid milk process and the pasteurization step was validated using available literature and industry energy data. Computer simulation of small (40.0 million L/yr), medium (113.6 million L/yr), and large (227.1 million L/yr) processing plants predicted the carbon footprint of milk, defined as grams of CO2 equivalents (CO2e) per kilogram of packaged milk, to within 5% of the value of 96 g of CO 2e/kg of packaged milk obtained in an industry-conducted life cycle assessment and also showed, in agreement with the same study, that plant size had no effect on the carbon footprint of milk but that larger plants were more cost effective in producing milk. Analysis of the pasteurization step showed that increasing the percentage regeneration of the pasteurizer from 90 to 96% would lower its thermal energy use by almost 60% and that implementation of partial homogenization would lower electrical energy use and CO2e emissions of homogenization by 82 and 5.4%, respectively. It was also demonstrated that implementation of steps to lower non-process-related electrical energy in the plant would be more effective in lowering energy use and CO2e emissions than fuel-related energy reductions. The model also predicts process-related water usage, but this portion of the model was not validated due to a lack of data. The simulator model can serve as a benchmarking framework for current plant operations and a tool to test cost-effective process upgrades or evaluate new technologies that improve the energy efficiency and lower the carbon footprint of milk processing plants.

Financial and environmental costs of manual versus automated control of end-tidal gas concentrations.

Emerging technologies that reduce the economic and environmental costs of anaesthesia have had limited assessment. We hypothesised that automated control of end-tidal gases, a new feature in anaesthesia machines, will consistently reduce volatile agent consumption cost and greenhouse gas emissions. As part of the planned replacement of anaesthesia machines in a tertiary hospital, we performed a prospective before and after study comparing the cost and greenhouse gas emissions of isoflurane, sevoflurane and desflurane when using manual versus automated control of end-tidal gases. We analysed 3675 general anaesthesia cases with inhalational agents: 1865 using manual control and 1810 using automated control. Volatile agent cost was $18.87/hour using manual control and $13.82/hour using automated control: mean decrease $5.05/hour (95% confidence interval: $0.88-9.22/hour, P=0.0243). The 100-year global warming potential decreased from 23.2 kg/hour of carbon dioxide equivalents to 13.0 kg/hour: mean decrease 10.2 kg/hour (95% confidence interval: 2.7-17.7 kg/hour, P=0.0179). Automated control reduced costs by 27%. Greenhouse gas emissions decreased by 44%, a greater than expected decrease facilitated by a proportional reduction in desflurane use. Automated control of end-tidal gases increases participation in low flow anaesthesia with economic and environmental benefits.

Using infrastructure optimization to reduce greenhouse gas emissions from oil sands extraction and processing.

The Alberta oil sands are a significant source of oil production and greenhouse gas emissions, and their importance will grow as the region is poised for decades of growth. We present an integrated framework that simultaneously considers economic and engineering decisions for the capture, transport, and storage of oil sands CO(2) emissions. The model optimizes CO(2) management infrastructure at a variety of carbon prices for the oil sands industry. Our study reveals several key findings. We find that the oil sands industry lends itself well to development of CO(2) trunk lines due to geographic coincidence of sources and sinks. This reduces the relative importance of transport costs compared to nonintegrated transport systems. Also, the amount of managed oil sands CO(2) emissions, and therefore the CCS infrastructure, is very sensitive to the carbon price; significant capture and storage occurs only above 110$/tonne CO(2) in our simulations. Deployment of infrastructure is also sensitive to CO(2) capture decisions and technology, particularly the fraction of capturable CO(2) from oil sands upgrading and steam generation facilities. The framework will help stakeholders and policy makers understand how CCS infrastructure, including an extensive pipeline system, can be safely and cost-effectively deployed.

CO2 abatement costs of greenhouse gas (GHG) mitigation by different biogas conversion pathways.

Biogas will be of increasing importance in the future as a factor in reducing greenhouse gas emissions cost-efficiently by the optimal use of available resources and technologies. The goal of this study was to identify the most ecological and economical use of a given resource (organic waste from residential, commercial and industry sectors) using one specific treatment technology (anaerobic digestion) but applying different energy conversion technologies. Average and marginal abatement costs were calculated based on Life Cycle Cost (LCC) and Life Cycle Assessment (LCA) methodologies. Eight new biogas systems producing electricity, heat, gas or automotive fuel were analyzed in order to identify the most cost-efficient way of reducing GHG emissions. A system using a combined heat and power station (which is connected to waste treatment and digestion operation facilities and located nearby potential residential, commercial or industrial heat users) was found to be the most cost-efficient biogas technology for reducing GHG emissions. Up to € 198 per tonne of CO(2) equivalents can be saved by replacing the "business as usual" systems based on fossil resources with ones based on biogas. Limited gas injection (desulfurized and dried biogas, without compression and upgrading) into the gas grid can also be a viable option with an abatement cost saving of € 72 per tonne of CO(2) equivalents, while a heating plant with a district heating grid or a system based on biogas results in higher abatement costs (€ 267 and € 270 per tonne CO(2) eq). Results from all systems are significantly influenced by whether average or marginal data are used as a reference. Beside that energy efficiency, the reference system that was replaced and the by-products as well as feedstock and investment costs were identified to be parameters with major impacts on abatement costs. The quantitative analysis was completed by a discussion of the role that abatement cost methodology can play in decision-making.

Nonrenewable energy cost and greenhouse gas emissions of a "pig-biogas-fish" system in China.

The purpose of this study is to assess the energy savings and emission reductions of the present rural biogas system in China. The life cycle assessment (LCA) method is used to analyze a "pig-biogas-fish" system in Jingzhou, Hubei Province, China. The nonrenewable energy cost and the greenhouse gas (GHG) emissions of the system, including the pigsty, the biogas digester, and the fishpond, are taken into account. The border definition is standardized because of the utilization of the database in this paper. The results indicate that the nonrenewable energy consumption intensity of the "pig-biogas-fish" system is 0.60 MJ/MJ and the equivalent CO2 emission intensity is 0.05 kg CO2-eq/MJ. Compared with the conventional animal husbandry system, the "pig-biogas-fish" system shows high renewability and GHG reduction benefit, which indicates that the system is a scientific and environmentally friendly chain combining energy and ecology.