Emergy analysis using US economic input-output models with applications to life cycles of gasoline and corn ethanol

A commonly encountered challenge in emergy analysis is the lack of transformity data for many economic products and services. To overcome this challenge, emergy analysts approximate the emergy input from the economy via a single emergy/money ratio for the country and the monetary price of economic inputs. This amounts to assuming homogeneity in the entire economy, and can introduce serious uncertainties in the results. This paper proposes and demonstrates the use of a thermodynamically augmented economic input-output model of the US economy for obtaining sector-specific emergy to money ratios that can be used instead of a single ratio. These ratios at the economy scale are more accurate than a single economy-wide emergy/money ratio, and can be obtained quickly for hundreds of economic products and services. Comparing sector-specific emergy/money ratios with those from conventional emergy studies indicates that the input-output model can provide reasonable estimates of transformities at least as a stop-gap measure until more detailed analysis is completed. A hybrid approach to emergy analysis is introduced and compared with conventional emergy analysis using life cycles of corn ethanol and gasoline as examples. Emergy and transformity data from the hybrid approach are similar to those from conventional emergy analysis, indicating the usefulness of the proposed approach. In addition, this work proposes the metric of return on emergy investment for assessing product alternatives with the same utility such as transportation fuels. The proposed approach and data may be used easily via web-based software.     

Greenhouse gas emissions and natural resources use by the world economy: Ecological input-output modeling

For the world economy as a biophysical network associated with financial links, an ecological endowment inventory and corresponding ecological input-output modeling are presented to investigate the greenhouse gas emissions and natural resources use in 2000. A forty-sector global economic input-output table is constructed through an integration and extension of existing statistics which covers thirty-four countries accounting for about 80% of the world economy. Global inventories for ecological endowments of six categories, i.e., greenhouse gas emissions, energy sources, water resources, exergy resources, solar emergy resources, and cosmic emergy resources, are accounted in detail. As a result of the modeling, embodied intensities of different ecological endowments are obtained for all forty sectors, based on which the sectoral embodiments for consumptive and productive uses are presented separately. Results of this study provide a sound scientific database for policy making on global climate change mitigation as well as on global resources management.     

Economic and environmental performance of electricity production in Finland: A multicriteria assessment framework

Meeting environmental, economic, and societal targets in energy policy is complex and requires a multicriteria assessment framework capable of exploring trade-offs among alternative energy options. In this study, we integrated economic analysis and biophysical accounting methods to investigate the performance of electricity production in Finland at plant and national level. Economic and environmental costs of electricity generation technologies were assessed by evaluating economic features (direct monetary production cost), direct and indirect use of fossil fuels (GER cost), environmental impact (CO₂ emissions), and global environmental support (emergy cost). Three scenarios for Finland's energy future in 2025 and 2050 were also drawn and compared with the reference year 2008. Accounting for an emission permit of 25 €/t CO₂, the production costs calculated for CHP, gas, coal, and peat power plants resulted in 42, 67, 68, and 74 €/MWh, respectively. For wind and nuclear power a production cost of 63 and 35 €/MWh were calculated. The sensitivity analysis confirmed wind power's competitiveness when the price of emission permits overcomes 20 €/t CO₂. Hydro, wind, and nuclear power were characterized by a minor dependence on fossil fuels, showing a GER cost of 0.04, 0.13, and 0.26 J/J_e, and a value of direct and indirect CO₂ emissions of 0.01, 0.04, and 0.07 t CO₂/MWh. Instead, peat, coal, gas, and CHP plants showed a GER cost of 4.18, 4.00, 2.78, and 2.33 J/J_e. At national level, a major economic and environmental load was given by CHP and nuclear power while hydro power showed a minor load in spite of its large production. The scenario analysis raised technological and environmental concerns due to the massive increase of nuclear power and wood biomass exploitation. In conclusion, we addressed the need to further develop an energy policy for Finland's energy future based on a diversified energy mix oriented to the sustainable exploitation of local, renewable, and environmentally friendly energy sources.     

Environmental policy and human capital inequality: A matter of life and death

This paper analyzes the economic implications of an environmental policy when we account for the life expectancy of heterogeneous agents. In a framework in which everyone suffers from pollution but health status also depends on individual human capital, we find that the economy may be stuck in a trap in which inequality rises steadily, especially when the initial pollution intensity of production is too high. We emphasize that such inequality is in the long run costly for the economy in terms of health and growth. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to address this situation. We show that a stricter environmental policy may allow the economy to escape from the inequality trap while enhancing the long-term growth rate when the initial inequality in human capital is not too large.     

Obscuring Ecosystem Function with Application of the Ecosystem Services Concept

Abstract: Conservationists commonly have framed ecological concerns in economic terms to garner political support for conservation and to increase public interest in preserving global biodiversity. Beginning in the early 1980s, conservation biologists adapted neoliberal economics to reframe ecosystem functions and related biodiversity as ecosystem services to humanity. Despite the economic success of programs such as the Catskill/Delaware watershed management plan in the United States and the creation of global carbon exchanges, today's marketplace often fails to adequately protect biodiversity. We used a Marxist critique to explain one reason for this failure and to suggest a possible, if partial, response. Reframing ecosystem functions as economic services does not address the political problem of commodification. Just as it obscures the labor of human workers, commodification obscures the importance of the biota (ecosystem workers) and related abiotic factors that contribute to ecosystem functions. This erasure of work done by ecosystems impedes public understanding of biodiversity. Odum and Odum's radical suggestion to use the language of ecosystems (i.e., emergy or energy memory) to describe economies, rather than using the language of economics (i.e., services) to describe ecosystems, reverses this erasure of the ecosystem worker. Considering the current dominance of economic forces, however, implementing such solutions would require social changes similar in magnitude to those that occurred during the 1960s. Niklas Luhmann argues that such substantive, yet rapid, social change requires synergy among multiple societal function systems (i.e., economy, education, law, politics, religion, science), rather than reliance on a single social sphere, such as the economy. Explicitly presenting ecosystem services as discreet and incomplete aspects of ecosystem functions not only allows potential economic and environmental benefits associated with ecosystem services, but also enables the social and political changes required to ensure valuation of ecosystem functions and related biodiversity in ways beyond their measurement on an economic scale.     

依靠科技进步 发展低碳农业

在全球携手应对气候变暖、减少温室气体排放的背景下,发展低碳经济是解决气候变化与经济发展矛盾的有效途径。通过描述气候变化、固碳减排对粮食安全、土壤碳汇、森林固碳、资源循环利用等影响和促进作用,深入分析发展低碳经济与可持续发展的关系,探讨如何在农业领域内开发高效循环生产体系,从而实现农业生产过程的固碳减排目的。由此,提出发展低碳农业是实现低碳经济的目标之一,它是一个复合技术体系,涉及了绿色农业、循环农业、生态文明、可持续发展理念。必须通过科学技术的突破,改造、提升低碳农业技术,改变农业现有的＂高能耗、高污染＂的生产状况,实现低碳生产、生活方式的转变。最后提出发展现代的低碳农业产业经济的对策和思考。     

Low carbon transition options for Australia

A rapid and sustained transition to new energy systems for Australia was explored using the OzECCO model implemented in a systems dynamics simulation package. OzECCO simulates the close relationship between energy use and economic productivity at a sectoral level to explore scenarios of economic and biophysical function based on a calibration period of 1981-2005 and a scenario period 2006-2051. The core scenarios showed that a fully renewable (the renewables transition) or an advanced fossil and nuclear transition (the conventional wisdom transition), can reduce accumulated CO2 emissions from the Australian economy for the period 2006-2051 by 50%. Adding a low growth economy where GDP averages less than 1% annually extends this to a 60% reduction. Extensive reforestation of more than 50 million hectares extends the total reduction to 70% over the 45 year period and provides at 2051 a per capita emissions level of one to two tonnes which will be necessary if developed and developing countries are to converge on equal atmospheric impacts with reasonable lifestyle opportunities. Central to both the renewables and conventional-wisdom scenarios are substantial reductions in the physical dimensions of personal consumption, and the transfer of these avoided consumption opportunities to an intergenerational sovereign wealth fund. This fund, held outside day-to-day domestic activities, can buffer Australian society and future generations against shocks, financial or physical, that might lie waiting and unanticipated in our future. This study did not explore phasing out Australia's extensive coal and natural gas exports although their impact on global atmospheric concentrations is significant. Domestic combustion and exported fuels will add 82 billion tonnes of CO2 to the atmosphere in the scenario period 2006-2051, equivalent to a 20 ppm rise in atmospheric concentrations. The low-growth renewables transition with unconstrained exports reduces this rise to 15 ppm. The continued expansion of fuel exports thus expands atmospheric risk in physical terms but also entrains policy and strategic risks should carbon-based industries become pariahs in international commerce and political relations.     

Spatial cost–benefit analysis of blue restoration and factors driving net benefits globally

Marine coastal ecosystems, commonly referred to as blue ecosystems, provide valuable services to society but are under increasing threat worldwide due to a variety of drivers, including eutrophication, development, land-use change, land reclamation, and climate change. Ecological restoration is sometimes necessary to facilitate recovery in coastal ecosystems. Blue restoration (i.e., in marine coastal systems) is a developing field, and projects to date have been small scale and expensive, leading to the perception that restoration may not be economically viable. We conducted a global cost–benefit analysis to determine the net benefits of restoring coral reef, mangrove, saltmarsh, and seagrass ecosystems, where the benefit is defined as the monetary value of ecosystem services. We estimated costs from published restoration case studies and used an adjusted-value-transfer method to assign benefit values to these case studies. Benefit values were estimated as the monetary value provided by ecosystem services of the restored habitats. Benefits outweighed costs (i.e., there were positive net benefits) for restoration of all blue ecosystems. Mean benefit:cost ratios for ecosystem restoration were eight to 10 times higher than prior studies of coral reef and seagrass restoration, most likely due to the more recent lower cost estimates we used. Among ecosystems, saltmarsh had the greatest net benefits followed by mangrove; coral reef and seagrass ecosystems had lower net benefits. In general, restoration in nations with middle incomes had higher (eight times higher in coral reefs and 40 times higher in mangroves) net benefits than those with high incomes. Within an ecosystem type, net benefit varied with restoration technique (coral reef and saltmarsh), ecosystem service produced (mangrove and saltmarsh), and project duration (seagrass). These results challenge the perceptions of the low economic viability of blue restoration and should encourage further targeted investment in this field.     

Introduction to the Issue

Welcome to the fifth issue of the Review of Environmental Economicsand Policy, which once again includes articles, a symposium,and a set of features. In the first of two articles in this issue, Geoffrey Heal reviewswhat we have learned about the economics of global climate changeand related public policy from the extensive literature thathas emerged in response to the controversial Stern Review ofthe Economics of Climate Change. Heal provides his own perspectiveon the Stern Review (which was the focus of a symposium in ourWinter 2008 issue) as well as his views on how the recent debateaffects the economic case for action on     

What Every Conservation Biologist Should Know about Economic Theory

Abstract: The last century has seen the ascendance of a core economic model, which we will refer to as Walrasian economics. This model is driven by the psychological assumptions that humans act only in a self‐referential and narrowly rational way and that production can be described as a self‐contained circular flow between firms and households. These assumptions have critical implications for the way economics is used to inform conservation biology. Yet the Walrasian model is inconsistent with a large body of empirical evidence about actual human behavior, and it violates a number of basic physical laws. Research in behavioral science and neuroscience shows that humans are uniquely social animals and not self‐centered rational economic beings. Economic production is subject to physical laws including the laws of thermodynamics and mass balance. In addition, some contemporary economic theory, spurred by exciting new research in human behavior and a wealth of data about the negative global impact of the human economy on natural systems, is moving toward a world view that places consumption and production squarely in its behavioral and biophysical context. We argue that abandoning the straightjacket of the Walrasian core is essential to further progress in understanding the complex, coupled interactions between the human economy and the natural world. We call for a new framework for economic theory and policy that is consistent with observed human behavior, recognizes the complex and frequently irreversible interaction between human and natural systems, and directly confronts the cumulative negative effects of the human economy on the Earth's life support systems. Biophysical economics and ecological economics are two emerging economic frameworks in this movement.     

Environmental policy and macroeconomic dynamics in a new Keynesian model

This paper studies the dynamic behavior of an economy under different environmental policy regimes in a New Keynesian model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price adjustment alters significantly the performance of the environmental policy regime put in place; (iii) the optimal environmental policy response to shocks is strongly influenced by the degree to which prices adjust and by the monetary policy reaction.     

Search for a natural scientific measure of economy

Through human history, wealth has been measured in grain, gold, and, now, dollars. Though counterfeiting of coins and notes goes back a long way, it is only with electronic financial accounting in a global economy tainted by toxic loans and imaginary funds that there is an urgency to search for a realistic objective way to monitor and regulate what we are doing to our Earth and ourselves. Various schemes using analysis of utility functions, oil equivalents, entropy, energy, and other units have been tried and, while helping to understand some basic processes and flows, have always been swamped by the machinations of financiers and the attention big sums of money attract. Now, the concept of exergy, pioneered in Eastern Europe in the 1950s, is being researched, developed, and applied, especially in China, driven by the desperation to measure the reality beyond the twin specters of global financial and environmental crises. A rough inventory of the matter in the biosphere at the coordinate details of an angstrom and an appreciation of how humans harness and manipulate electromagnetic forces can be enlightening as to what is and is not sustainable. Without that understanding, any financial estimate and proposed stimulus packages or IMF reform will be wildly wrong and may even be headed in the wrong direction.     

A review of the public health impacts of unconventional natural gas development

The public health impact of hydraulic fracturing remains a high profile and controversial issue. While there has been a recent surge of published papers, it remains an under-researched area despite being possibly the most substantive change in energy production since the advent of the fossil fuel economy. We review the evidence of effects in five public health domains with a particular focus on the UK: exposure, health, socio-economic, climate change and seismicity. While the latter would seem not to be of significance for the UK, we conclude that serious gaps in our understanding of the other potential impacts persist together with some concerning signals in the literature and legitimate uncertainties derived from first principles. There is a fundamental requirement for high-quality epidemiological research incorporating real exposure measures, improved understanding of methane leakage throughout the process, and a rigorous analysis of the UK social and economic impacts. In the absence of such intelligence, we consider it prudent to incentivise further research and delay any proposed developments in the UK. Recognising the political realities of the planning and permitting process, we make a series of recommendations to protect public health in the event of hydraulic fracturing being approved in the UK.     

The dynamic causal links between CO2 emissions from transport,real GDP,energy use and international tourism

This study examines the dynamic causality relationship between international tourism and carbon dioxide (CO₂) emissions from transport, real gross domestic product and energy use. The vector error correction model and Granger causality test approach have been used to investigate these relationships for the top ten international tourism destinations spanning the period 1995–2013. Results reveal a unidirectional causality running from CO₂ emissions to economic growth without feedback; a bidirectional causality between economic growth and energy use; a bidirectional causality between international tourism and economic growth; and a bidirectional causality between international tourism and energy use. They also suggest that energy use and international tourism both contribute to the decrease of emissions level coming from transport sector, while economic growth leads to the increase of CO₂ emissions. This study can be used in policy recommendations by encouraging countries to use clean energy and to stimulate tourism sector for combating global warming.     

Hartwick's rule and maximin paths when the exhaustible resource has an amenity value

This paper studies the maximin paths of the canonical Dasgupta–Heal–Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. Hartwick's rule then appears as an efficient tool to characterize solutions in a variety of settings. We start with the case without technical progress. We obtain an explicit solution of the maximin problem in the case where production and utility are Cobb–Douglas. When the utility function is CES with a low elasticity of substitution between consumption and natural capital, we show that it is optimal to preserve forever a critical level of natural capital, determined endogeneously. We then study how technical progress affects the optimal maximin paths, in the Cobb–Douglas utility case. On the long run path of the economy capital, production and consumption grow at a common constant rate, while the resource stock decreases at a constant rate and is therefore completely depleted in the very long run. A higher amenity value of the resource stock leads to faster economic growth, but to a lower long run rate of depletion. We then develop a complete analysis of the dynamics of the maximin problem when the sole source of well-being is consumption, and provide a numerical resolution of the model with resource amenity. The economy consumes, produces and invests less in the short run if the resource has an amenity value than if it does not, whereas it is the contrary in the medium and long runs. However, and without surprise, the resource stock remains for ever higher with resource amenity than without.     

Valuing Ecosystem Services in Terms of Ecological Risks and Returns

Abstract: The economic valuation of ecosystem services is a key policy tool in stemming losses of biological diversity. It is proposed that the loss of ecosystem function and the biological resources within ecosystems is due in part to the failure of markets to recognize the benefits humans derive from ecosystems. Placing monetary values on ecosystem services is often suggested as a necessary step in correcting such market failures. We consider the effects of valuing different types of ecosystem services within an economic framework. We argue that provisioning and regulating ecosystem services are generally produced and consumed in ways that make them amenable to economic valuation. The values associated with cultural ecosystem services lie outside the domain of economic valuation, but their worth may be expressed through noneconomic, deliberative forms of valuation. We argue that supporting ecosystem services are not of direct value and that the losses of such services can be expressed in terms of the effects of their loss on the risk to the provision of the directly valued ecosystem services they support. We propose a heuristic framework that considers the relations between ecological risks and returns in the provision of ecosystem services. The proposed ecosystem‐service valuation framework, which allows the expression of the value of all types of ecosystem services, calls for a shift from static, purely monetary valuation toward the consideration of trade‐offs between the current flow of benefits from ecosystems and the ability of those ecosystems to provide future flows.     

Infrastructure and Conservation Policy in Brazil

Abstract:  The development of transportation and energy infrastructure has been a major driver in the conversion of natural ecosystems in Brazil since the nineteenth century. Although this pattern is present in most countries, Brazil differs in the scale of opportunities that are still available to build its physical infrastructure while pursuing an ambitious conservation agenda. This advantage stems from the magnitude of intact ecosystems, a dynamic policy environment, and the increasing availability of biological and economic data needed to harmonize conservation with public works. Success depends on integrating conservation and infrastructure planning, rather than relying on the project based, largely ineffective environmental assessment process. Front-loading environmental mitigation and compensation will also help, as will improving public access to, and understanding of, information on the environmental and economic values at stake in major infrastructure decisions.     

Die externen Kosten der Stromerzeugung aus erneuerbaren Energien im Vergleich zur fossilen Stromerzeugung

Aim and Background

The supply and use of energy is related to environmental impacts, which cause significant economic damage. As these costs are not reflected in the price of energy, there is little incentive for the polluter to reduce the pressure on the environment. From an economic point of view, environmental resources and services are used beyond the optimal level. The quantification of external costs has been an area of intensive research, in particular within the series of ExternE projects funded by the European Commission. Although external cost estimates have been successfully used to support European environmental legislation, the assessment of external costs is still a matter of significant uncertainties — in particular in areas were potential large environmental impacts are expected. In spite of uncertainty and limited knowledge, policy needs to require guidelines for the evaluation of energy and environmental policy measures.

Main Features

Based on a critical review of the current literature, recommendations for the quantification of external costs from renewable electricity generation in comparison to fossil nuclear technologies are derived.

Results and Discussion

Current electricity market prices do not reflect the total costs of electricity generation. Quantifiable external costs from fossil electricity generation are in the same order as private generation costs. The internalisation of external costs will improve the competitiveness of renewable energy technologies. To avoid market distortion, policy shall implement framing conditions supporting the further internalisation of external costs.

Conclusions

Costs for supporting renewable energy via the German feed-in tariffs are compensated for by external costs avoided.

Perspectives

Fossil and nuclear energies are more expensive than is teflected by economical quantification. In contrast, the costs for renewable energies tell the truth even today. The sooner the external costs are integrated in the pricing, the sooner the relaunch of energy supply will attract interest, also from the economic point of view.     

陕西省淳化县农户生活垃圾处理方案的比选与分析

通过问卷调查和现场勘查对陕西省淳化县农村生活垃圾污染及处理现状进行分析,采用层次分析法对户用沼气池、户用堆肥池和小型焚烧炉3种主要处理方案进行经济效益、能源效益和资源环境效益的综合评价,结果表明户用沼气池的综合效益最高.选用成本效益分析、财务现金流分析和敏感度分析方法着重对户用沼气池推广的优势因素和限制因素进一步分析,结果表明,当农户有足够的资金、土地资本和垃圾产量时,应采用沼气池,同时应重视对沼气建设技术人员和维护管理沼气池农户的技术培训,以求保证建池质量;当农户资金、土地资本和垃圾产量有限时,也可以采用户用堆肥池,同时要注意堆肥池规格的设计,以求达到最高的综合效益.     

中国农业非点源污染控制的经济措施探讨--以北京密云水库为例

针对我国农业非点源污染特征,提出污染控制经济政策体系,包括基于限制和约束功能的税费政策,基于引导和鼓励功能的补贴、补偿等优惠政策,以及创建基于流域的使污染削减总成本最小化的排污权交易市场。选择北京市重要水源地———密云水库的2大汇水流域之一的潮河流域(密云县境内)为政策设计示范区,从经济、技术及制度方面分析了各经济政策的功能和适用情况,提出本区以鼓励扶持引导为主、收费惩罚为辅控制削减农业非点源污染的经济政策构想,并估算了对农民环保行为给予补贴和补偿的额度。