Dissertations / Theses on the topic 'Economic aspects of Carbon fibers'

The Canadian greenhouse gas offset system was proposed and developed with the objective of assisting Canada in achieving its Kyoto target by means of low cost emission reduction. This study estimates the potential of agricultural soils in Canada to provide carbon credits. Carbon sequestration practices such as moderate till, no-till and perennial crop activities were considered in the analysis. Crops under different tillage regimes, hay and alfalfa were also included in the study. Simulation analysis was undertaken using the Canadian Regional Agricultural Model (CRAM) for carbon prices ranging from $5 to $100/t of CO2e. Carbon credits generated as a result of the sequestration activities were estimated by endogenizing a carbon price for the sequestration activity into the CRAM model. The analysis was done regionally, provincially, and nationally. Two scenarios were investigated; one that included tillage practices and perennial crops (Policy All) and the other that only included tillage practices (Policy Till). Cropping pattern changes, carbon sequestration levels, carbon revenues, and adoption rates were estimated in the simulation. In addition, the role of transaction costs in the offset system was also examined.
The results of the simulation indicated that crop shifts towards hay and alfalfa occurred in the Policy All scenario, while practice shifts towards moderate and no-till occurred in the Policy Till scenario. Simulation analysis indicated that carbon sequestration levels vary by province and region. Among the provinces, the Prairie provinces had the highest carbon sequestration levels ranging from 50 percent under the Policy Till scenario, while under the Policy All scenario it was close to 97 percent. Nationally at a medium price of $15/t of CO2 approximately 1.08 Mt of CO2 and 0.11 Mt of CO2 were sequestered under Policy All and Policy Till scenario. When transaction costs were included in the analysis, approximately 30 to 40 percent less sequestration from the baseline was estimated. The results varied by province and region.

The study investigates farmers' decision to afforest marginal agricultural land to create carbon sinks in western Canada. A real option model, which incorporates price risks related to carbon and timber revenues as well as opportunity cost uncertainty, is used to assess the impact of a carbon market on farmers' afforestation decision. Irreversibility of the decision is also modeled by including sunk cost of forest establishment and the cost of reversing the afforestation process. In addition, the non-permanence impact on the profitability of afforestation was analyzed by assessing the effect of two non-permanence carbon accounting schemes.
Results indicate that both, actual non-permanence policies and the presence of real options, have a significant negative impact on afforestation incentives. However, the carbon market has a positive effect as it increases the expected revenues to afforestation and also represents a diversification opportunity. Yet, even in the presence of a carbon market the investment barrier remains considerable. Despite the positive effect of the carbon market, results show that unless carbon prices reach levels well above $100/tC a subsidization of afforestation cost is needed in order to generate substantial GHG abatement from marginal agricultural land afforestation in western Canada.

This research simulates the response of the Quebec cropping sector to the introduction of carbon credit revenue which could be made available through the implementation of a greenhouse gas emissions trading and offset system in Canada. Eligible carbon sequestering practices investigated in the simulations include adoption of moderate tillage and no-till as well as the conversion to a permanent cover crop. Monetary demand for greenhouse gas emissions offsets from the cropping sector is endogenized in the objective function of the Canadian Regional Agriculture Model (CRAM) which has been modified to account for the simulations and for the disaggregation of the single crop region of Quebec into eleven sub-regions. Changes in the cropping sector induced by the introduction of seven different carbon price levels, ranging from $1/t CO2 to $100/t CO2, are compared to a baseline. Variables covered in the simulation results include: relative profitability of carbon sequestering crops/technology; adoption rates of moderate tillage and no-till; carbon sequestration levels; carbon credit revenue; cropping pattern, crop production and livestock.
Results indicate that carbon sequestration in agricultural soils could only contribute a minor share of the total emission reduction in Quebec, even with very high carbon price levels. At a carbon price of $15/t CO2, it is estimated that changes in tillage practices and permanent cover would result in an additional 12,328 t CO2 per year sequestered by the cropping sector in Quebec. However, some regions display higher adoption rates of carbon sequestering practices than other regions and appear to be more responsive to the price incentive. The introduction of a monetary demand for GHGE offsets from the cropping sector induces some changes in terms of cropping pattern and crop production level, while it has almost no impact on the livestock sector.

Includes bibliographical references (leaves 246-280) and index. Deals with the domestication of the goat and the history of the cashmere industry; investigates fibre physiology and production in general; and gives a detailed account of skin histology and fibre production of goats with particular reference to the cashmere-bearing animal; followed by research related to cashmere fibre production

Australia is recognising that carbon capture and storage (CCS) may be a feasible pathway for addressing increasing levels of CO2 emissions. This thesis presents a preliminary economic assessment and comparison of the capture costs for different Australian CO2 emission sources. The capture technologies evaluated include solvent absorption, pressure swing adsorption (PSA), gas separation membranes and low temperature separation. The capture cost estimated for hydrogen production, IGCC power plants and natural gas processing is less than A$30/tonne CO2 avoided. CO2 capture cost for iron production ranges from A$30 to A$40 per tonne CO2 avoided. Higher costs of A$40 to over A$80 per tonne CO2 avoided were estimated for flue gas streams from pulverised coal and NGCC power plants, oil refineries and cement facilities, and IDGCC synthesis gas. Based on 2004 and 2005 EU ETS carbon prices (A$30 to A$45 per tonne CO2 avoided), the cost of capture using current commercially available absorption technology may deter wide-scale implementation of CCS, in particular for combustion processes. A sensitivity analysis was undertaken to explore the opportunities for reducing costs. The high cost for capture using solvent absorption is dependent on the energy needed for solvent regeneration and the high capital costs. Cost reductions can be achieved by using new low regeneration energy solvents coupled with recycling the waste heat from the absorption process back to the steam cycle, and using low cost ???fit-for-purpose??? equipment. For membrane and PSA technologies, the capture costs are dominated by the flue gas and post-capture compressors. Operating the permeate or desorption stream under vacuum conditions provides significant cost reductions. Improvements in membrane and adsorbent characteristics such as the adsorbent loading or membrane permeability, CO2 selectivity, and lower prices for the membrane or adsorbent material provide further cost benefits. For low partial pressure CO2 streams, capture using low temperature ???anti-sublimation??? separation can be an alternative option. Low costs could be achieved by operating under low pressures and integrating with external sources of waste heat. Applying the cost reductions achievable with technology and process improvements reduces the capture and CCS costs to a level less than current carbon prices, making CCS an attractive mitigation option.

This thesis examines the informational efficiency of the European carbon market based on the European Union Emissions Trading Scheme (EU ETS). The issue is approached from three different perspectives. I explore whether the volatility embedded in carbon options is a rational forecast of subsequently realized volatility. Then, I investigate if, and to what extent, new information about the structural and institutional set-up of the market impacts the carbon price dynamics. Lastly, I examine whether the European carbon market is relevant for the firm valuations of covered companies. First, perhaps because the market is new and derivatives’ trading on emission allowances has only started recently, carbon options have not yet been extensively studied. By using data on options traded on the European Climate Exchange, this thesis examines an aspect of market efficiency which has been previously overlooked. Market efficiency suggests that, conditional upon the accuracy of the option pricing model, implied volatility should be an unbiased and efficient forecast of future realized volatility (Campbell et al., 1997). Black (1976) implied volatility and implied volatility estimates directly surveyed from market participants are used in this thesis to study the information content of carbon options. Implied volatility is found to be highly informative and directionally accurate in forecasting future volatility. There is no evidence, however, that volatility embedded in carbon options is an unbiased and efficient forecast of future realized volatility. Instead, historical volatility-based forecasts are shown to contain incremental information to implied volatility, particularly for short-term forecasts. In addition, this thesis finds no evidence that directly surveyed implied volatility estimates perform better as a forecast of future volatility relative to Black’s (1976) estimates. Second, the market sensitivity to announcements about the organizational and institutional set-up of the EU ETS is re-examined. Despite their importance for the carbon price formation, demand-side announcements and announcements about the post-2012 framework have not yet been researched. By examining a very comprehensive and updated dataset of announcements, this thesis adds to the earlier works of Miclaus et al. (2008), Mansanet-Bataller and Pardo (2009) and Lepone et al. (2011). Market participants are found to rationally incorporate new information about the institutional and regulatory framework of the emissions trading scheme into the carbon price dynamics. However, they seem to be unable to accurately assess the implications of inter-temporal banking and borrowing on pricing futures contracts with different maturities. The impact of macroeconomic conditions on the market responsiveness is investigated by splitting the dataset into subsamples according to two alternative methods: 1) a simple split into pre-crisis and full-crisis time periods, and 2) according to a Bai-Perron structural break test. Evidence is found that in the context of economic slowdown and known allowances oversupply, the relationship between the carbon price and its fundamentals (institutional announcements, energy prices and extreme weather) breaks down. These findings are consistent with the arguments in Hintermann (2010), Keppler and Mansanet-Bataller (2010) and Koop and Tole (2011) that carbon price drivers change in response to the differing context of the individual trading periods. Third, the role of carbon performance in firm valuation is understudied. Since companies were not obliged to disclose their carbon emissions prior to the launch of the EU ETS, there exists little empirical evidence of the effect of carbon performance on market value. Earlier studies of the European carbon market have only focused on the impact of ETS compliance on the profitability and competitiveness of covered companies (e.g. Anger and Oberndorfer, 2008). There is also little research on how the newly available emissions data has altered the carbon performance of companies. This thesis addresses these gaps in the literature by examining the stock price reactions of British and German firms on the day of verified emissions release under the EU ETS over the period 2006 – 2011. An event study is conducted using a Seemingly Unrelated Regressions model to deal with the event clustering present in the dataset. Limited evidence is found that investors use information about the carbon performance of companies in their valuations. The information contained in the carbon emissions reports is shown to be somewhat more important for companies with high carbon-intensive operations. This thesis finds no conclusive evidence that the cap-and-trade programme has been able to provide regulated companies with enough incentives to de-carbonize their operations. The market does not punish companies which continue to emit carbon at increasing rates or reward companies which improve their carbon performance. In brief, the results of the thesis suggest that the market is not fully efficient yet. Inefficiently priced carbon options may allow for arbitrage trades in the market. The inability of investors to incorporate rules on inter-temporal banking and borrowing of allowances across the different trading periods leads to significant price reactions when there should be none. A recessionary economic environment and a known oversupply of emission allowances have led to a disconnect between the carbon price and its fundamental drivers. And, lastly, the signal embedded in the carbon price is not strong enough to invoke investor action and turn carbon performance into a standard component of investment analysis.

The demand for fossil fuels by Ontario's conventional steam power generation sector is examined. It is hypothesised that the enactment of a carbon fee policy will induce a change in the relative prices of the three fuels used in this sector (coal, natural gas and heavy fuel oil). This would lead to substantial interfuel substitution and greenhouse gas abatement. The demand share equations for the three fuels are derived from the translog functional form and set in a simulation model to estimate the value of a carbon fee necessary, to reduce carbon dioxide emissions in compliance with the Kyoto Protocol. Results suggest that a fuel specific carbon fee policy would be successful in achieving the desired emissions reduction at a negligible net cost to society.

Our study examines some design alternatives for a carbon market by exploring the fledgling Alberta carbon market. We attempt to evaluate the performance of these designs on the bases of trade volume, cost efficiency and stability. To achieve this we construct an empirically-calibrated but simple agent-based model, certain aspects of which we selectively modify to incorporate various design options. We make comparisons among these options based on data simulated from the ensuing family of models. We find strong evidence that in general, market design features such as source-of-credits, the scale of the market, and pricing-mechanism are very important considerations that influence the performance of the market. In addition, we find support for the notion that the level of the price cap relative to the average cost of abatement in the market matters, and beyond a threshold, higher price caps are associated with lower levels of performance.
vii, 155 leaves ; 29 cm

Afforestation projects in China have substantially contributed to national CO2 sequestration and play an important role in international climate change mitigation. However, these nation-wide afforestation projects are usually funded by the national government, with very large and unsustainable investments. It is important to find alternative sources of funding to finance afforestation, and convince poor farmers to become involved in afforestation projects. Carbon-subsidized afforestation could be the solution. The current study aims to find i) whether farmers need additional subsidies to reforest their marginal farmland; if so, ii) whether the value of carbon sequestration of afforestation can offset farmers' net costs. To do this, first I determine the amount of carbon sequestration though afforestation. Second, I assess the value of carbon sequestration, the costs and benefits of afforestation projects, and the costs and benefits of crop production. Third, I investigate the optimal rotation period of the plantations considering a joint production of timber and carbon, for different species. Results show that total carbon sequestration through tree biomass and soil carbon following afforestation differs among tree species and stand age as well as across regions. Economic trees sequester less carbon than ecological trees and bamboo. Among economic trees, nut trees with an inedible hard shell sequester more carbon than fruit trees. The regional context significantly influences the carbon sequestration potential, with more carbon sequestered in southern and eastern regions than in northern regions. Bamboo also shows a remarkable carbon sequestration potential, which is even greater than Chinese fir and Poplar in northern regions. Although afforestation programs have huge potential to store carbon, the voluntary acceptance by landowners crucially depends on their economic outcome. I found that usually carbon credits can compensate for the opportunity costs of alternative land uses, except i) when highly profitable croplands are afforested, in which case carbon credits are not sufficient, and ii) when croplands that generates low incomes are afforested, in which case carbon credits are not needed. Fruit trees are the most cost-effective option for afforestation. Bamboo afforestation is economically attractive if carbon revenues is included. The minimum price of carbon credit decreases with increasing project duration because more carbon is stored when time increases. This does not hold for fast-growing trees like Eucalyptus, for which the minimum price increases with extended project duration. Given the temporal variations of joint production of timber and carbon sequestration, the carbon accounting regimes (tCER, temporary Certified Emission Reductions and lCER, long-term Certified Emission Reductions) have a significant impact on the optimal rotation as well as on the revenue. Forest managers have an incentive to use tCER accounting to finance slow-growing plantations, and lCER for fast-growing ones. I perform a sensitivity analysis detects the changes of rotation period with different carbon prices and discount rates. While the optimal decision for slow-growing species (e.g. Chinese fir) is highly sensitive to changes in both variables under tCER accounting, the results concerning fast-growing species (e.g. Eucalyptus) are most sensitive under the lCER accounting regime. In contrast, carbon revenues have a minimal impact on the optimal rotation of Poplar plantations, no matter which regime is applied. I conclude that carbon-subsidized afforestation is a feasible way to offset the opportunity costs of retired farmland and support the livelihood of farmers. The findings can contribute to the efficient and sustainable management of forestry projects using carbon sequestration, while the methodology can also be applied to other regions in the world.

Saltwater marshes in the Bay of Fundy act as greenhouse gases sinks and reservoirs by fixing atmospheric carbon dioxide and storing it in carbon rich deposits. There are approximately 3,131.5 hectares of saltwater marsh in the Bay of Fundy, of which 958 ha are currently owned by the government or conservation organizations and 2,173.5 ha are owned by private landowners. A multiple bounded discrete choice contingent valuation survey was conducted to estimate landowners' willingness to accept compensation for selling their saltwater marshes to a conservation program. A multiple bounded model developed by Gregory Poe and Michael Welsh (1995) was used to analyze the responses. Mean willingness to accept compensation for one hectare of saltwater marsh was estimated to be $1,004.22, and aggregate willingness to accept compensation for the total of 2,173.5 ha of saltwater marsh owned by private landowners was approximately $2,180,000. Using these estimates and the rate of carbon dioxide-equivalent absorption of saltwater marshes, the opportunity cost of one tonne of carbon dioxide-equivalent sequestered by saltwater marshes in the Bay of Fundy was calculated to range between $16.70 and $19.95. Decision-makers can use this result for policy purposes concerning the achievement by Canada of its greenhouse gases emission reduction commitment under the Kyoto Protocol (1997).

This study is aimed at developing policies for energy efficiency by observing the past changes of energy use in Indonesia???s manufacturing sector over the period 1980???2000, and to investigate mitigation options for energy-related CO2 emissions in the sector. The first part of the study uses decomposition analysis to assess the effect of the changes in energy consumption and the level of CO2 emissions, while the second part investigates energy efficiency improvement strategies and the use of economic instruments to mitigate CO2 emissions in the manufacturing sector. Economic activity was the dominant factor in increasing energy consumption over the whole period of analysis, followed by the energy intensity effect and then the structural effect. The increase in aggregate energy intensity over the period 1980-2000 was mainly driven by the energy intensity effect. In turn, the technical effect was the dominant contributor to changes in energy intensity effect, with the fuel-mix effect being of lesser importance. Changes in CO2 emissions were dominated by economic activity and structural change. Sub-sectors that would benefit from fuel switching and energy efficiency improvements are the textile, paper, and non-metal sub-sectors. Three main options for reducing CO2 emissions from the manufacturing sector were considered: the imposition of a carbon tax, energy efficiency initiatives, and other mitigation measures. A carbon tax was found to reduce sectoral emissions from the direct use of oil, gas and coal, but increased the demand for electricity. At the practical level, energy efficiency improvements can be implemented by adopting energy efficient technologies that can reduce aggregate energy intensity up to 37.1 per cent from the base-year level, estimated after imposition of a carbon tax at $30 per tonne of carbon. A major priority for energy efficiency improvements was found to be in the textile and the paper and chemical sub-sectors. A mitigation measure such as the Clean Development Mechanisms could be encouraged in order to reduce projected emission levels. The preferred option would be the adoption of energy efficient technologies in the textile, chemical, paper and non-metal sub-sectors.

The Canadian agricultural sector was recognised as a potential seller of carbon offset credits in the domestic emission trading system. A number of beneficial management practices may reduce GHG emissions while increasing production efficiency and profitability of agricultural activities. A contingent valuation survey was used to estimate the carbon offset price at which feedlot operators in Ontario would adopt two management practices that reduce GHG emissions: adding roasted soybean seeds to a cattle diet and increasing the intensity of feedlot operations. The value elicitation questions to estimate the mean WTA compensation were designed using a multiple bounded discrete choice format developed by Welsh and Poe (1998).
It was estimated that at a carbon offset price of $ 25.14/t CO2 e provided enough incentive for feedlot operators to intensify their operations and a price of $ 109.51/t CO2e to change their feeding strategies. The mean willingness to accept a cost to change a conventional practice to a greenhouse gas emissions reducing practice was estimated to be 62% of the carbon revenue. The regression analysis demonstrated that producers' willingness to accept compensation was influenced by the individual's characteristics, farm structure variables, and practice attributes. Policy makers may use these results in the design of greenhouse gas reduction strategies for the beef sector.

Thesis (MScFor)--Stellenbosch University, 2013.
ENGLISH ABSTRACT: Kiaat trees in Namibia are threatened by unsustainable harvesting practice. This study’s aim was to estimate the total value of an average Kiaat tree selected for harvesting with a focus on current timber use value, value of an optimally utilised tree, carbon value, and alternative uses of Kiaat trees. To accomplish this aim, the following specific objectives were set: (1) to estimate the total tree volume and optimum utilisable timber volume of an average Kiaat tree; (2) to estimate the amount and value of carbon stored in the above-ground parts of an average Kiaat tree; (3) to determine timber utilisation levels; and (4) to identify alternative use options to reduce timber losses of Kiaat trees. Previous studies on Kiaat in Namibia and elsewhere focused on growth, development and socio-economical aspects of Kiaat trees. A combination of a socio-economic survey and tree volumes and biomass determination was used to collect data. The survey entailed Kiaat products assessment and face-to-face personal interviews with known key-informants in and around Rundu. Loggers with permits to harvest Kiaat trees were asked to harvest 40 Kiaat trees and data collected from each tree before and after felling included: lower-stem diameter, diameter at breast height (DBH), upper-stem diameter, stem length, stump height, recovered merchantable logs lengths and lower-and-upper diameters and lengths of branches greater than 10 cm in diameter. All canopy parts smaller than 10 cm in diameter were directly weighed, sampled and oven-dried at 105°C until constant weight. Volume of different tree parts was calculated and in combination with basic wood density used to calculate the biomass. It was established that a typically harvested Kiaat tree had an above-ground dry volume of 1.63 m3, of which 1.34 m3 (82%) was utilisable timber volume but that only 0.37 m3 (23%) was used and 0.97 m3 (59%) was left behind in the field. Merchantable logs were mainly cut into planks from which finished products - beds, chairs, doors and tables - were made. An average of 10.7 planks were cut per trunk and the local price of planks was N$45.26 at the time of the study. More income is generated from finished products compared to selling loose planks. Canopy parts were mainly cut into woodcrafts – bowls, music drums, and walking sticks. Current timber use value (N$484.73) surpasses carbon value (N$123.74). A further result of the study was that a significantly higher income could be earned for local livelihoods from Kiaat trees in the Kavango Region if trees were optimally used. Carbon trading is a noble conservation initiative, particularly when trees unsuitable for timber are considered. Use of timber trees exclusively for carbon trading is, however, not a viable option in respect of supporting local people’s livelihoods.
AFRIKAANSE OPSOMMING: Kiaatbome in Namibië word bedreig deur onvolhoubare ontginningspraktyke. Die doelwit van die studie was om die totale waarde van ‘n gemiddelde Kiaatboom, wat gekies is vir ontginning, te bepaal met die fokus op huidige houtwaarde, waarde van ‘n optimaal gebruikte boom, koolstofwaarde en alternatiewe gebruike vir Kiaatbome. Om hierdie doelwit te bereik is die volgende spesifieke sub-doelwitte gestel: (1) bepaal die totale boomvolume en optimale bruikbare houtvolume van ‘n gemiddelde Kiaatboom; (2) bepaal die hoeveelheid koolstof wat in die bogrondse dele van ‘n gemiddelde Kiaatboom gestoor word en bereken die monitêrewaarde daarvan; (3) bepaal die houtgebruiksvlakke en houtvermorsing van Kiaatbome; en (4) identifiseer alternatiewe gebruike om die vermorsing van Kiaatbome te verminder. Vorige studies oor Kiaat in Namibië en elders het gefokus op groei, ontwikkeling en sosio-ekonomiese aspekte van Kiaatbome. ‘n Kombinasie van ‘n sosio-ekonomiese opname en boomvolume en biomassa bepalings is gebruik vir die insameling van data. Die opname het ‘n Kiaat produkbepaling en gesig-tot-gesig persoonlike onderhoude met sleutel informante in en om Rundu behels. Boomkappers met permitte om kiaatbome te ontgin is gevra om 40 Kiaatbome te ontgin en data is versamel van elke boom voor en na ontginning. Die data het ingesluit: lae-stam deursnee, deursnee op borshoogte (DBH), bo-stam deursnee, stamlengte, stomphoogte, herwinde bruikbare stomplengte, bo- en onder- deursnee en lengtes van takke wat 10 cm of groter deursnee het. All kroondele 10 cm en kleiner in deursnee is geweeg en ‘n steekproef versamel wat oondroog gemaak is by 105ºC totdat konstante gewig bereik is. Die volume van verskillende boomdele is bereken en in kombinasie met houtdigtheid gebruik om biomassa te bereken. Dit is bereken dat ‘n tipiese geoeste Kiaatboom ‘n bogrondse droë volume van 1.63 m³ het, waarvan 1.34 m³ (82%) bruikbare houtvolume is. Net 0.37 m³ (23%) van die bruikbare houtvolume is egter gebruik en 0.97 m³ (59%) is agtergelaat in die veld. Bruikbare stompe is meestal opgesaag in planke waarvan finale produkte soos beddens, stoele, deure en tafels gemaak is. ‘n Gemiddeld van 10.7 planke is verkry per stomp en die plaaslike prys van planke was N$45.26 gedurende die studie tydperk. Meer inkomste is verkry van finale produkte as van die verkoop van los planke. Kroondele is meestal opgesaag in houtkunswerke soos bakke, musiekdromme en kieries. Die huidige houtwaarde van N$484.73 is meer as die koolstof waarde (N$123.74) van die bome. ‘n Belangrike resultaat van die studie is dat ‘n beduidende groter inkomste gegenereer kan word vir plaaslike lewensbestaan van Kiaatbome in die Kavangostreek as bome optimaal benut word. Koolstofhandel is ‘n edele bewaringskonsep, veral as bome ongeskik vir houtgebruik is soos in die geval van krom bome en jonger bome. Die eksklusiewe gebruik van houtbome vir koolstofhandel is nie ‘n lewensvatbare opsie om plaaslike mense se lewensbestaan te ondersteun nie.

In my thesis, I address two important issues: (i) the creation of a price signal through the use of carbon markets (or cap-and-trade schemes) and (ii) the necessity to reach a global agreement on greenhouse gas emission reduction policies. It consists of three separate papers. Chapters 2 and 3 of this thesis emphasize theoretically and empirically the fact that achieving international cooperation on climate change is very difficult. Chapter 3 suggests that the global nature of the climate change problem and the design of climate agreements (i.e. the means available to reduce CO2 emissions) may explain this failure. Chapter 2 shows theoretically that asymmetric information between countries may exacerbate the free-rider problem. These two chapters also provide some possible solutions to the lack of international cooperation. To address the issue of information asymmetry, chapter 2 proposes the creation of institutions in charge of gathering and certifying countries' private information before environmental negotiations. If achieving international cooperation is still not possible, chapter 3 suggests that regional cooperation may supplement global treaties. Chapter 1 presents an example of such a regional agreement to reduce CO2 emissions. The EU emissions trading system is a cornerstone of the European Union's policy to combat climate change. However, as it is highlighted in chapter 1, the design of such regional carbon markets really matters for their success in reducing carbon emissions. This chapter shows the interactions between intertemporal permit trading and the incentives of firms to undertake long-term investments in abatement technologies.
Doctorat en Sciences économiques et de gestion
info:eu-repo/semantics/nonPublished

According to the United States Department of Energy, fossil-fueled power plants account for 78% of stationary source CO2 emission in the United States and Canada. This has led electric utilities across the globe to research different alternatives for energy. Carbon sequestration has been identified as a bridge between fossil fuels and clean energy. This thesis will present research results regarding the transportation costs of CO2 and the suitability of geology in the Florida Pan-Handle for sequestration infrastructure. The thesis will utilize various evaluation tools including GIS, numerical models, and optimization models. Analysis performed for this thesis and review of published literature produced estimated carbon storage capacities for two areas in and near the Florida Pan-Handle. These areas were labeled Disposal Area 1 and Disposal Area 3. Disposal Area 1 was estimated to contain capacity for the storage of 5.58 gigatonnes of CO2. Disposal Area 3 was estimated to contain capacity for the storage of 2.02 gigatonnes of CO2. Transportation scenarios were analyzed over a 25 year period and the capacities above are sufficient to store the CO2 emissions from the Pan-Handle network of power plants for the study period. Four transportation routing scenarios were investigated using transportation costs from the Poiencot and Brown CO2 pipeline capital cost model. The scenarios (models) consisted of the Right-Of-Way, Solo-Funded, Piece-Wise, and Authority models. Each presents a different method for the overall funding of the Florida Pan-Handle CO2 network and produced different total levelized and mean unit costs. The cheapest network on a mean unit cost basis was the network for Disposal Area 1 in the Authority Model, producing a mean unit cost of $0.64 per tonne of CO2.

大量學術文獻指出氣候變化是毫不含糊地由持續增加的人為溫室氣體排放所造成。其中，二氧化碳排放（碳排放）是最為重要的溫室氣體排放。碳排放和經濟發展之間的密切關係亦受到廣泛肯定。碳排放和收入之間的關係引起了研究人員的極大興趣。學者們對該關係的環境庫茲涅茨曲線（一個倒U形曲線）的有效性持有不同的觀點，該曲線之有效性的討論可以分為兩部分，即時間和空間（國家）的尺度。
在這項研究中，首先以描述性統計研究碳排放量的變化，其中包括排放總量，人均排放量和碳強度三個指標。然後，透過雙對數和二次雙對數回歸模型進一步研究這三項指標和各經濟發展指標的關係（經濟發展指標包括總量和人均國內生產總值，貿易值和產業值）。結果指出國內生產總值可以很好地解釋碳排放之變化。根據1970年到2007年的數據，排放總量和國內生產總值總量在雙對數回歸模型中呈現顯著的線性關係。同樣在雙對數回歸模型中，人均排放量和人均國內生產總值之間的關係則從顯著線性變成顯著二次（倒U形曲線），從而支持環境庫茲涅茨曲線理論。碳強度和人均國內生產總值之間的關係是顯著的倒U形曲線。所有研究國家的回歸結果指出，發達國家在經濟增長的同時，已經減少排放總量及人均量，而發展中國家沒有減少。大多數發達國家在碳強度和人均國內生產總值的關係上呈現顯著的負相關，而發展中國家在碳強度和人均國內生產總值之間的關係上比例平均。在一般情況下，其他因素如貿易值和產業值解釋碳排放變化之能力較國內生產總值差。較特別的結果是由於製造、礦業和公用事業產業值屬於高碳密集性，該產業能很好地解釋碳排放的變化，所以為該產業的度身訂造之減排控制是必要的。
進一步說，發展中國家之間的差異仍然很大。透過層次聚類法，所有國家基於排放水平可分成11個類。其中，第11類主要包括發達國家，擁有極高的排放總量，非常高的人均排放量和中等的碳強度。與此同時，第4類主要包括發展中國家，亦有非常高的總排放量，中等的人均排放量和極高的碳強度。美國和中國，分別為第11類和第4類的案例研究，這兩國能有效地幫助了解碳排放和經濟發展之相互關係。其他集群則代表不同的經濟發展階段。聚類分析的結果可作為未來國際氣候變化政策建設的參考。
Wealth of scholarly reviewed literatures indicates that climate change is unequivocally caused by the continual increase in anthropogenic greenhouse gases (GHGs) emissions. Carbon dioxide emissions remain to be of upmost importance among all GHGs emissions. It is widely accepted that close relationship between carbon dioxide emissions and economic development exists. The relationship between carbon dioxide emissions and income, in particular, has aroused much research interests. Researchers have polarizing views on the validity of Environmental Kuznets Curve (EKC), an inverted U-shaped curve of that relationship. The ground of argumentation for the validity of EKC can be also divided into two parts, namely temporal and spatial (national) extents.
In this research, variations in three indicators of carbon dioxide emissions, including total emissions, per capita emissions and carbon intensity (CI), are firstly examined by descriptive statistics. Next, double-log and quadratic double-log regression models are employed to study the relationship between these three indicators and indicators of economic development (including the total and per capita GDP, trade values and sectoral values). Results show that GDP has high explanatory power for the large variation of emissions. By using the data from 1970 to 2007, the relationship between total emissions and total GDP is significantly linear in double-log regression models. The relationship between per capita emissions and per capita GDP has changed from linear to quadratic (inverted U-shaped), which supports the EKC. The relationship between CI and per capita GDP is significant in an inverted U-shaped curve. Regression results in each country indicate that developed countries have reduced total and per capita emissions in parallel with economic growth while developing countries have not. Majority of developed countries have negative relationship between CI and per capita GDP; whereas their counterparts have even proportion in the relationships. Other explanatory factors, like trade values and sectoral values, in general, have lower explanatory power than GDP. Surprisingly, results indicated that manufacturing, mining and utility (MMU) sector yields very high explanatory power for the variation of carbon dioxide emissions due to the sector’s high carbon-intensive nature. Tailor-made control on this sector is necessary for emissions abatement.
Furthermore, as the variation within developing countries is still large, countries are classified into clusters on the basis of their levels of emissions by Hierarchical Cluster Analysis. Eleven clusters are formed. Among all, cluster 11, comprised of mostly developed countries, yields extremely high total emissions, very high per capita emissions and medium CI. Meanwhile, cluster 4, made of mostly developing countries, have very high total emissions, medium per capita emissions and extremely high CI. The USA and China, case studies of clusters 11 and 4 respectively, have provided insight for the interactive relationship between emissions and economic development. Remaining clusters represent different stages of economic development. The results of the clustering can serve as a reference for the construction of future climate change policy.
Detailed summary in vernacular field only.
Detailed summary in vernacular field only.
Detailed summary in vernacular field only.
Wong, Wai Fung.
Thesis (M.Phil.)--Chinese University of Hong Kong, 2012.
Includes bibliographical references (leaves 273-280).
Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web.
Abstracts also in Chinese.
ABSTRACT --- p.i
摘錄 --- p.iii
ACKNOWLEDGEMENTS --- p.iv
TABLE OF CONTENTS --- p.v
LIST OF TABLES --- p.x
LIST OF FIGURES --- p.xix
LIST OF ABBREVIATIONS --- p.xxiv
Chapter CHAPTER ONE: --- INTRODUCTION --- p.1
Chapter 1.1 --- EFFECTS OF CARBON DIOXIDE EMISSIONS ON CLIMATE CHANGE --- p.1
Chapter 1.2 --- VARIATION IN CARBON DIOXIDE EMISSIONS AMONG COUNTRIES IN TERMS OF THREE INDICATORS: TOTAL AMOUNT, PER CAPITA AMOUNT AND CARBON INTENSITY (CI) --- p.3
Chapter 1.3 --- RELATIONSHIP BETWEEN CARBON DIOXIDE EMISSIONS AND ECONOMIC DEVELOPMENT --- p.6
Chapter 1.4 --- RESEARCH QUESTIONS --- p.8
Chapter 1.5 --- RESEARCH OBJECTIVES --- p.8
Chapter 1.6 --- SIGNIFICANCE OF THE STUDY --- p.9
Chapter 1.7 --- ORGANIZATION OF THE THESIS --- p.10
Chapter CHAPTER TWO: --- LITERATURE REVIEW --- p.12
Chapter 2.1 --- CARBON DIOXIDE EMISSIONS --- p.12
Chapter 2.1.1 --- Definitions of carbon dioxide emissions --- p.12
Chapter 2.1.2 --- Estimation of carbon dioxide emissions --- p.13
Chapter 2.1.3 --- Importance of carbon dioxide emissions in the context of climate change --- p.15
Chapter 2.2 --- ECONOMIC DEVELOPMENT --- p.19
Chapter 2.2.1 --- Concept and different stages of economic development --- p.19
Chapter 2.2.2 --- Indicators of economic development among all countries --- p.20
Chapter 2.2.3 --- Economic development since 1970 in major countries --- p.23
Chapter 2.3 --- PAST STUDIES ON THE RELATIONSHIP BETWEEN CARBON DIOXIDE EMISSIONS AND ECONOMIC DEVELOPMENT --- p.30
Chapter 2.3.1 --- Relationship between emissions and income expressed by GDP --- p.30
Chapter 2.3.2 --- Relationship between emissions and international trade expressed by export and import values --- p.38
Chapter 2.3.3 --- Relationship between emissions and sectoral composition expressed by sectoral values --- p.43
Chapter 2.4 --- RESEARCH GAPS IN THE RELATIONSHIP BETWEEN CARBON DIOXIDE EMISSIONS AND ECONOMIC DEVELOPMENT --- p.44
Chapter 2.4.1 --- Identification of relationship between emissions and economic development --- p.44
Chapter 2.4.2 --- Classification of countries based on the amount of carbon dioxide emissions --- p.46
Chapter 2.4.3 --- Research plan for this study --- p.47
Chapter 2.5 --- SUMMARY OF THE LITERATURE REVIEW --- p.48
Chapter CHAPTER THREE: --- CONCEPTUAL FRAMEWORK, DATA SOURCE AND METHODOLOGY --- p.49
Chapter 3.1 --- INTRODUCTION OF THE CONCEPTUAL FRAMEWORK --- p.49
Chapter 3.2 --- RELATIONSHIP BETWEEN ECONOMIC DEVELOPMENT AND CARBON DIOXIDE EMISSIONS UNDER THE CONCEPTUAL FRAMEWORK --- p.50
Chapter 3.3 --- INTRODUCTION TO THE INDICATORS OF THE CONCEPTUAL FRAMEWORK --- p.51
Chapter 3.4 --- RELATIONSHIPS AMONG THE COMPONENTS --- p.53
Chapter 3.4.1 --- Relationship between income and carbon dioxide emissions --- p.53
Chapter 3.4.2 --- Relationship between international trade and carbon dioxide emissions --- p.54
Chapter 3.4.3 --- Relationship between sectoral composition and carbon dioxide emissions --- p.54
Chapter 3.5 --- EXAMINATION OF THE RELATIONSHIP IN SPATIAL AND TEMPORAL EXTENT --- p.54
Chapter 3.6 --- DATA SOURCE --- p.57
Chapter 3.6.1 --- Data source for the indicators of economic development and population --- p.57
Chapter 3.6.2 --- Data source for the indicators of carbon dioxide emissions --- p.58
Chapter 3.7 --- METHODOLOGY --- p.59
Chapter 3.7.1 --- Variables used in the research --- p.59
Chapter 3.7.2 --- Methodology used in the research --- p.60
Chapter 3.8 --- SUMMURY OF THE CONCEPTUAL FRAMEWORK, DATA SOURCE AND METHODOLOGY --- p.63
Chapter CHAPTER FOUR: --- VARIATIONS IN THE LEVELS OF INDICATORS OF CARBON DIOXIDE EMISSIONS AND INDICATORS OF ECONOMIC DEVELOPMENT --- p.65
Chapter 4.1 --- VARIATIONS IN CARBON DIOXIDE EMISSIONS, POPULATION AND GDP --- p.65
Chapter 4.1.1 --- Variation in total carbon dioxide emissions --- p.65
Chapter 4.1.2 --- Variation in total population --- p.72
Chapter 4.1.3 --- Variation in total GDP --- p.75
Chapter 4.1.4 --- Variation in per capita carbon dioxide emissions --- p.79
Chapter 4.1.5 --- Variation in per capita GDP --- p.83
Chapter 4.1.6 --- Variation in CI --- p.87
Chapter 4.2 --- VARIATIONS IN INTERNATIONAL TRADE VALUES AND SECTORAL VALUES --- p.91
Chapter 4.2.1 --- Variation in total export values --- p.91
Chapter 4.2.2 --- Variation in total import values --- p.94
Chapter 4.2.3 --- Variation in per capita export values --- p.96
Chapter 4.2.4 --- Variation in per capita import values --- p.99
Chapter 4.2.5 --- Variation in trade balance --- p.102
Chapter 4.2.6 --- Variation in total sectoral values --- p.104
Chapter 4.2.7 --- Variation in per capita sectoral values --- p.106
Chapter 4.2.8 --- Variation in sectoral composition --- p.107
Chapter 4.3 --- SUMMARY ON THE VARIATIONS IN THE LEVELS OF INDICATORS OF CARBON DIOXIDE EMISSIONS AND INDICATORS OF ECONOMIC DEVELOPMENT --- p.109
Chapter CHAPTER FIVE: --- RELATIONSHIPS BETWEEN INDICATORS OF CARBON DIOXIDE EMISSIONS AND INDICATORS OF ECONOMIC DEVELOPMENT --- p.112
Chapter 5.1 --- RELATIONSHIPS BETWEEN CARBON DIOXIDE EMISSIONS AND INCOME IN TERMS OF TOTAL AMOUNT, PER CAPITA AMOUNT AND CARBON INTENSITY --- p.112
Chapter 5.1.1 --- Relationship between total carbon dioxide emissions and total GDP --- p.112
Chapter 5.1.2 --- Relationship between per capita carbon dioxide emissions and per capita GDP --- p.123
Chapter 5.1.3 --- Relationship between CI and per capita GDP --- p.133
Chapter 5.2 --- RELATIONSHIPS BETWEEN CARBON DIOXIDE EMISSIONS AND INTERNATIONAL TRADE IN TERMS OF TOTAL AMOUNT, PER CAPITA AMOUNT AND CARBON INTENSITY --- p.142
Chapter 5.2.1 --- Relationship between total carbon dioxide emissions and total values of exports and imports --- p.142
Chapter 5.2.2 --- Relationship between per capita carbon dioxide emissions and per capita values of exports and imports --- p.146
Chapter 5.2.3 --- Relationship between CI and per capita values of exports and imports . --- p.151
Chapter 5.3 --- RELATIONSHIP BETWEEN CARBON DIOXIDE EMISSIONS AND SECTORAL COMPOSITION IN TERMS OF TOTAL AMOUNT, PER CAPITA AMOUNT AND CARBON INTENSITY --- p.157
Chapter 5.3.1 --- Relationship between of total carbon dioxide emissions and total values of six sectors --- p.157
Chapter 5.3.2 --- Relationship between per capita carbon dioxide emissions and per capita values of six sectors --- p.160
Chapter 5.3.3 --- Relationship between CI and per capita values of six sectors --- p.163
Chapter 5.3.4 --- Relationship between indicators of carbon dioxide emissions and ratios of sectoral values to the sum of all sectors --- p.165
Chapter 5.4 --- SUMMARY ON THE RELATIONSHIPS BETWEEN INDICATORS OF CARBON DIOXIDE EMISSIONS AND INDICATORS OF ECONOMIC DEVELOPMENT --- p.168
Chapter CHAPTER SIX: --- CLASSIFICATION OF COUNTRIES BASED ON THE LEVELS OF TOTAL CARBON DIOXIDE EMISSIONS, PER CAPITA CARBON DIOXIDE EMISSIONS AND CARBON INTENSITY --- p.171
Chapter 6.1 --- CORRELATION ANALYSIS BETWEEN TOTAL EMISSIONS, PER CAPITA EMISSIONS AND CARBON INTENSITY --- p.171
Chapter 6.2 --- MEMBERSHIP OF COUNTRIES AND BASIC CHARACTERISTICS OF EACH CLUSTER --- p.173
Chapter 6.2.1 --- Result of Hierarchical Cluster Analysis and membership of countries --- p.173
Chapter 6.2.2 --- Characteristics of each cluster in terms of carbon dioxide emissions --- p.176
Chapter 6.2.3 --- Characteristics of each cluster in terms of GDP (indicator of economic development) --- p.180
Chapter 6.3 --- IN-DEPTH EXAMINATION OF THE CHARACTERISTICS OF EACH CLUSTER --- p.184
Chapter 6.3.1 --- Clusters with extremely high to very high total emissions: clusters 11 and 4 --- p.185
Chapter 6.3.2 --- Clusters with high total emissions: clusters 8, 10 and 3 --- p.211
Chapter 6.3.3 --- Clusters with medium to low total emissions: clusters 9, 2 and 1 --- p.230
Chapter 6.3.4 --- Clusters with very low to extremely low total emissions: clusters 5, 6 and 7 --- p.247
Chapter 6.4 --- SUMMARY OF THE RESULTS --- p.263
Chapter CHAPTER SEVEN: --- CONCLUSION --- p.267
Chapter 7.1 --- MAJOR FINDINGS OF THE RESEARCH --- p.267
Chapter 7.2 --- IMPLICATIONS OF THE RESEARCH --- p.270
Chapter 7.3 --- LIMITATIONS OF THE RESEACH --- p.271
Chapter 7.4 --- RECOMMENDATION FOR FUTURE RESEARCH --- p.272
REFERENCES --- p.273
APPENDICES --- p.281

This paper models the supply curve of carbon sequestration on Pacific Northwest rangelands. Rangeland managers have the ability to sequester carbon in agricultural soils by implementing alternative management practices on their farms. Their low adoption rate in practice suggests a high opportunity cost associated with their implementation. To increase their adoption, a payment for ecosystem services plan is proposed, where the public compensates farms for lost profits. The TOA-MD model is used to estimate the resulting sequestration incentivized by payments for soil carbon sequestration. Methodological questions of geographical stratification and estimating variation from available data are tested. Sensitivity analysis is also run on key assumptions in the study. Results show that while the economic potential of both systems is much lower than the technical potential, at reasonable CO��� payment levels rangeland sequestration could be a significant mitigation strategy for Pacific Northwest states.
Graduation date: 2012

A research report submitted to the Faculty of Science, University of the Witwatersrand, in partial fulfillment of the requirement for the degree of Master in Environmental Science Johannesburg, 2015
Quantifying ecosystem services of urban forests has become an important subject for the national and international ecological economics agenda. This is in the wake of offsetting anthropogenic emissions of CO2, while promoting urban habitability and sustainability. This study estimates above-ground tree biomass, carbon stored and the associated economic value and net economic value of carbon sequestrated by the tree planting project in Soweto, Johannesburg, South Africa. Measurements of diameter at breast height (1.3 m) and tree height were done on all the individual trees that were recently planted (estimated to be about seven years) and other trees estimated to be over 25 years old in Petrus Molefe Park and Thokoza Park. A general allometric equation by Tietema (1993) was used to estimate above-ground biomass which was converted to carbon stocks. The economic value of carbon sequestrated was calculated at an equivalent price of R440.40 per tonne of carbon. The total above-ground biomass, carbon stored and economic value, and net economic value of the trees in Petrus Molefe Park was 7.45 tonnes, 3.35 tonnes, R1,475 and R-495,325, while the trees in Thokoza Park had 205.76 tonnes, 92.59 tonnes, R40,777 and R-312,023, respectively. The results indicated that the older trees in Thokoza Park had larger amounts of above-ground tree biomass, greater carbon storage and net economic value than the younger trees in Petrus Molefe Park. The economic values of carbon sequestrated were less than the cost of planting the trees, therefore the net economic value of carbon sequestrated were negative. The project is at an early, but promising stage, since the Greening Soweto Project provided a number of ecosystem services (i.e. beautifying the landscape, filtering air, recreation and amenity etc.), the performance of the project was evaluated by the extent to which it integrates the environmental and social benefits into the economic benefits and opportunities. Key words: Above-ground biomass, allometric equation, carbon stored, diameter at breast height, net economic value.

Thesis (Ph. D. (Accounting)) -- University of Limpopo, 2017.
This research examined the effect of carbon emissions reduction on financial performance Johannesburg Stock Exchange’s SRI companies. Empirical results of corporate fossil energy-based dependence on environment and economic performance thus far have been ambiguous. The major objective of this research was to examine the effect of emissions and energy intensity on market and accounting based performance measures. This research adopted the positivist paradigm approach and therefore used a quantitative causal research approach. Archival data was collected from fourteen JSE’s SRI companies for seven years. The research applied a panel data analysis, a total of 98 observations were derived from panel data set. Multiple linear and causal econometric models were applied in the data analyses namely ordinary least squares (OLS), fixed effects and dynamic models. OLS results showed a significant effect of energy usage intensity (ENGINT) on return on assets (ROA), and return on sales (ROS), with carbon emissions intensity (EMSINT) exhibiting a significant effect on return on assets (ROA), and return on sales (ROS). When the study controlled for omitted variable bias and possible orthogonality condition, a significant negative effect of energy intensity (ENGINT) on equity returns (EQRTNS) was found. Impulse response analysis revealed that shocks in energy intensity on average tend to decrease firms’ financial value, while shocks in emissions intensity on average increase firms’ financial value within the sampled companies. Whilst testing for causality, the Panel Granger causal analysis showed unidirectional effect of EMSINT on EQRTNS, and bidirectional causal relationship between EMSINT and MVE/S at 1% significant level. This research made a contribution by extending the model used by previous researchers through the use of multiple market and accounting based performance measures which were analysed using advanced econometric models: Arellano-Bond DPD model, impulse response function in short PVARs and Bootstrap dynamic panel threshold model. In addition, this thesis suggested a model to advance future research on carbon emissions and firm performance and managerial decision propensity for carbon reduction.
Carbon Disclosure Project and School of Accountancy of the University of Limpopo

A project report submitted to the Faculty of Engineering, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Science in Engineering. Johannesburg, 1997.
Due to the extreme costs of establishing new shaft systems in Witwatersrand gold mines it is essential that the resource estimation is optimised, The result of poor Of sub-optimal estimation could be catastrophic even.to the largest of mining companies. This project examines the application of Compound Lognormal Distribution theory and shows the advantages of this distribution model over more traditional models, for the Carbon Leader Reef. The incorporation of information from mined out areas of a deposit in resource estimation is demonstrated. The critical role played by accurate geological modelling is highlighted. The process of Macro Co-Kriging in conjunction with Compound Lognormal Theory is discussed in detail and is shown to be a more accurate estimation technique than traditional techniques using Lognormal theory. Finally the use of the Macro Co-kriged limits are shown to be useful in the classification of Mineral Resources.
AC2017

Location is a critical component of business decisions. A firm's location decision may be influenced not only by market forces, such as the location of input suppliers, output processors and competitors, but also by government policies if such policies impact their expected profits and are applied non-uniformly across space. Likewise, a firm may adjust its business strategy, including opening and closing establishments and laying off employees as responses to changes in environmental regulations. In certain polluting industries, location decisions may include choosing potential storage sites for geologic carbon sequestration or finding landfills for industrial solid waste. There is extensive literature discussing the effects of environmental regulations or agglomeration economies on firm location decisions but few studies analyze the interactive effect of environmental regulations and agglomeration economies across regions in the United States. The potential consequences of changes in environmental regulations may include loss of polluting establishments, jobs, and income. Geological carbon sequestration offers long term storage opportunities to mitigate greenhouse gases (GHGs). Incorporating environmental risk into economic assessments of geological sequestration choices is crucial for finding optimal strategies in using alternative carbon storage sites with limited capacity. This dissertation consists of three essays that address the above issues. The first essay examines the interactive effects of air quality regulation and agglomeration economies on polluting firms' location decisions in the United States. Newly available annual (1989-2006) county-level manufacturing plant location data for the United States on seven pollution intensive manufacturing industries are applied in the analysis. Conditional Poisson and negative binomial models are estimated, an efficient GMM estimator is also employed to control for endogenous regulatory and agglomeration variables. Results indicate that births of pollution intensive manufacturers are deterred by stricter environmental regulation; and are attracted by local agglomeration economies. County attainment/nonattainment designations can impose heterogeneous impacts over space and across industries. The magnitude of the regulatory effect depends on the level of local agglomeration. Urbanization economies offset the negative impacts of environmental regulation, whereas localization economies can reinforce or offset the negative impacts of environmental regulation, depending on the industry. The second essay analyzes the effect of changes in regulatory environmental standards on the total stocks of establishments and local jobs and income Results indicate the effects vary across counties in the United States. When the standards were raised to 80 percent of the current level, from 2007 to 2009, the affected counties would lose a total of 326 establishments, 14,711 jobs with $705 million U.S. dollars of income each year. At the national economy level, the impacts of tightening environmental regulations are relatively small. The third essay constructs a dynamic optimization framework that deals with optimal utilization of alternative nonrenewable resource sites (geological formations) with possible negative externalities. We apply the model to an optimal usage problem of alternative long term CO₂ geologic storage sites for carbon. The storage sites are different in terms of capacity and potential leakage after CO₂ injection; the problem is determining the minimum cost for storing a fixed amount of CO₂ (sequestered) within a certain time period. Analytical solutions show the decision rule depends on the discount rate, storage capacities, marginal CO₂ storage costs, and environmental damage costs associated with CO₂ leakage from alternative sinks. The framework provides critical information about the optimal timing of switching from one resource sequestration site to another.
Graduation date: 2013
Access restricted to the OSU Community at author's request from Feb. 1, 2013 - Feb. 1, 2015

This dissertation consists of three essays on private landowners' response to incentives for carbon sequestration in forests. The first essay examines private landowner response to incentives for carbon sequestration through various combinations of intermediate management practices. The second essay focuses on agricultural landowners' willingness to participate in an incentive program for carbon sequestration through afforestation, and estimates the potential for carbon sequestration from afforestation, as well as its cost. The third study examines relative performances of incentive targeting strategies for forest carbon sequestration under asymmetric information given spatially heterogeneous land types. The first essay uses an econometric approach to analyze the factors affecting non-industrial private forest landowners' choice of forest management practices, and examines how these choices might change in response to the use of incentives for carbon sequestration. I use estimated parameters to simulate the carbon sequestration potential for different combinations of management practices, and compare the effectiveness and costs of performance-based and practice-based incentive payment schemes in the Western U.S. The results suggest that incentive payments can increase the probability that desirable combinations of management practices are adopted, and particularly that incentives targeting increased fertilization yield the highest carbon sequestration potential. I also find that a performance-based payment scheme produces higher carbon sequestration than a practice-based payments scheme. However, the annual sequestration potential of intermediate forest management in response to incentive payment is not as large as the sequestration potential of afforestation. The second essay uses a survey-based stated preference approach to predict landowners' willingness to participate in a tree planting program for carbon sequestration as a function of various factors affecting landowners' decision making and different levels of incentive payments. The estimation results show that the annual payment for carbon sequestration significantly and positively affects landowners' stated level of enrollment in a tree planting program. I use the estimated parameters to conduct regional level simulations of carbon sequestration in response to incentive payments. These simulations show that the carbon supply function in the Pacific Northwest region is steeper than in the Southeast region because of the lower adoption rate and less available lands. The national level carbon supply functions derived from this study are steeper than those obtained from bottom-up engineering approaches and optimization models, and are in the same range as those from revealed preference approach studies. The third essay uses both a conceptual analysis and a numerical analysis to examine the relative performances of incentive programs for carbon sequestration using alternative targeting criteria in the presence of asymmetric information and heterogeneity in costs and benefits. The results show that in the presence of asymmetric information, the combination of high cost-high benefit variability and negative correlation, which is the combination that achieves the greatest benefit gains under perfect information, can result in the greatest benefit losses. Additionally, a comparison of two targeting schemes shows that if cost variability is greater than benefit variability with negative correlation, the benefit achieved under benefit-cost ratio targeting can be lower than that under acreage targeting, so that an optimal targeting strategy under perfect information may no longer be optimal under asymmetric information.
Graduation date: 2013

In the literature, some studies argue that affluence and the financial sector encourages low-carbon investments which result in lower emissions while others find that they enhance emissions. Contemporary studies barely consider agriculture, employment generation and the degree of financial development as determinants of emissions. In view of these, the thesis investigates the impact of economic and financial development on CO2 emissions in sub-Saharan Africa (SSA). Applying the EKC and STIRPAT framework, the study modelled three functional forms which were estimated using an unbalanced panel data of 45 SSA countries by employing static and dynamic analytical methods. The models were re-estimated for 24 low (LIC), 13 lower-middle (LMIC), six upper-middle (UMIC) and two high-income countries (HIC). The study found evidence that empirical results differ in terms of the (sub-) sample of countries, estimation methods and functional forms. In detail, the study found different CO2 emissions-economic development relationships for the income groups. However, there is evidence of a linkage between later developments of the economies with lower emissions in LIC and UMIC while this linkage does not exist in LMIC and HIC. The study also found that financial development lowers CO2 in UMIC while it enhances emissions in LIC, LMIC and HIC. Despite this, there is evidence of a linkage between later developments of financial sectors with higher emissions in LIC and HIC and a linkage between later developments of financial sectors with lower CO2 in UMIC in SSA meanwhile no linkage was found for LMIC. The study concludes that not all economic development increases the level of CO2 emissions and not all financial development limits CO2 emissions in SSA during the study period. Generally, the main contributory variables to CO2 emissions are income, trade openness, energy consumption, population density and domestic credit to private sector to GDP. The main reducing factors of CO2 emissions are agriculture and official exchange rate. The thesis recommends that SSA needs to be more responsive to a cleaner CO2 environment by moving away from the conduct of unclean development strategy to intensified green investments.
Economics
D. Phil. (Economics)

Rapid, human-forced climate change as a result of greenhouse gases is threatening the fabric of human civilisation itself. It is clear that we need to alter our development and poorer countries will need to develop while limiting their emissions, but it is not clear what sustainable development would entail. Climate change policy solutions have pivoted on carbon trading, under the auspices of the Clean Development Mechanism (CDM), but this too has failed to limit growth in carbon emissions. This report looks at the operations of the CDM in South Africa as a source of climate finance meant to facilitate sustainable development. Though South Africa has emphasised its commitment towards a low-carbon transition, in practice its national planners seek to preserve energy-intensive mineral and industrial sectors. This research draws on both primary and secondary documents as well as interviews with carbon professionals to conclude that CDM projects have played a limited role in South Africa, but has tended to reproduce the existing minerals and energy complex within the country.

The pressing global demand to transform to a low-carbon business community, which is required by the urgency of mitigating climate change, significantly alters the operating procedures for carbon emitters and carbon revenue generators alike. Although agricultural activities are not considered as heavy carbon emission source, the increased public focus on climate change has catapulted the exploitation of sustainable agricultural land management mitigating strategies as intervention by the sector. Additionally, the focus on market-based mechanism to address climate change, which has led to the evolution of cap-and-trade schemes, makes the agricultural sector become a source of low-cost carbon offsets. However, the fact that cap-and-trade schemes in the agricultural sector are voluntary has resulted into not only very diverse farming practices but also diverse accounting practices. The consequences of the diversity practices are that, the impacts on financial performance and position are not comparable. Therefore, the overall objective of this study was to investigate the recognition, measurement and disclosure for cap-and-trade schemes in the agricultural sectors This study was conducted through literature reviews and empirical test. A qualitative research approach utilising constructivist methodology was employed. Primary data was collected in Kenya by administering three sets of semi-structured questionnaires to drafters of financial statements, loan officers and financial consultants. Secondary data involved content analysis of financial statements and reports of listed entities across the globe. It was established that proper accounting for cap-and-trade schemes adaptation activities is critical to the success of an entity’s environmental portfolio. Additionally, a model for valuing an organisation's carbon capture potential as suggested by this study enables entities to better report the impact of the adaptation activities on the financial performance and financial position. The outcome of this study enables entities to integrate the carbon capture potential on an entity sustainability reporting framework.
Colleges of Economic and Management Sciences
D. Phil. (Accounting Science)

The objective of this study was to investigate and compare the brokered transport costs of road and rail transport for the independent timber growers of NCT Forestry Co-operative Limited in Kwa-Zulu-Natal. Reliability, flexibility, visibility, rates and total transport time were evaluated for each mode of transport. The impact of the carbon emissions was also considered and the option of performance based standard vehicles investigated. During the period 2000 to 2003, rail was the dominant mode of transport. However from 2004 onwards, due to the diminishing service levels and the high tariff structures of rail transport, road became the preferred mode of transport. The results of the survey conducted for the purposes of this study showed that although road transport outperformed rail transport, rail transport scored significantly higher than road transport as a cost-effective mode of transportation. Rail transport was shown to be a far less carbon intensive mode of transport than road transport, while there were substantial cost savings and benefits from performance based standard vehicles.
Transport Economics, Logistics and Tourism
M. Com. (Logistics)

The objective of this PhD thesis is to create a Unit Commitment and Economic Dispatch (UCED) modelling tool that can used to simulate the deterministic performance of a power system with thermal and renewable generators and energy storage technologies. The model was formulated using mixed integer programing (MIP) on GAMS interface. A robust commercial solver by IBM (CPLEX) is used as solver. Emphasis on the development of the tool has been given on the following aspects. a) Technical impacts of Variable Renewable Energy (VRE) integration. The UCED model developed in this thesis is a high resolution short-term dispatch model. It captures the variability of VRE power on the intra-hour level. In addition the model considers a large number of important real world, system, unit and policy constraints. Detailed representation of a power system allows for a realistic estimation of maximum penetration levels of VRE and the related technical impacts like cycling of generators (part-loading and number of start-ups). b) CO2 emissions. High levels of VRE penetration can potentially increase consumption of fuel in thermal units per unit of electricity produced due to increased thermal cycling. The dispatch of units in the UCED model is based on minimizing system wide operational costs the most important of those being fuel, start-up costs and the cost of carbon. Fuel consumption is calculated using technical data from Input/Output curves of individual generators. The start-up cost is calculated based on times the generator units have been off and the energy requirement to bring the unit back to hot state. Thus dynamic changes on fuel consumption can be captured and reported. c) Technical solutions to facilitate VRE integration. VRE penetration can be facilitated if appropriate solutions are implemented. Energy storage is an effective way to reduce the impact of RE variability. The UCED model includes an integrated Mixed Integer Linear (MILP) compressed air energy storage (CAES) simulation sub-model. Unlike existing CAES models, the new “Thermo-Economic” (TE) CAES model developed in this thesis uses technical data from major CAES manufacturers to model the dynamic effect of cavern pressure on both the compression and expansion sides during CAES operation. More specifically the TE model takes into account that a) a compressor discharges at a pressure equal to the back-pressure developed in the cavern at each moment, b) the speed of charging can be regulated through inlet guide vanes; higher charging speed can take place at the expense of additional power consumption, c) the maximum power output during expansion can be limited by the levels of cavern pressure; there is a threshold pressure level below which the maximum output decreases linearly with pressure. Since it uses actual power curves to simulate CAES operation, the TE model can be assumed to be more accurate than conventional Fixed Parameter (FP) models that don’t model dynamic effects of cavern pressure on CAES operation. The TE model in this thesis is compared with conventional FP models using historical market prices from the Irish electricity market. The comparison was based on the ability of a CAES unit to arbitrage energy for making profit in the Irish electricity market. More specifically a “Base” scenario was created that included the operation of a 270MW CAES unit with technical characteristics obtained from a major CAES manufacturer and assumed discharge time of 13hr. Various sensitivities on discharge time, natural gas prices and system marginal prices (SMPs) were modeled. An additional scenario was created to show the benefit on CAES profitability if the unit participated in both the energy and ancillary services markets. All scenarios were modeled using both the TE and FP CAES models. The results showed that the most realistic TE model returns around 15% less profitability across more scenarios. The reduction in profitability grows to around 30% when the cavern volume (discharge time) is reduced to half (6 hours). The latter is related to the sensitivity of the TE model on cavern pressure that is being built faster when the volume is reduced. A CAES unit won’t get a positive net present value (NPV) in Ireland under any scenario unless SMPs are greatly increased. Thus, it was shown that that existing FP CAES models overestimate CAES profitability. More accurate models need to be used to estimate CAES profitability in deregulated markets. Additionally, it might deem necessary to create additional markets for energy storage units and increase the possible revenue sources and magnitude to facilitate an increase of storage capacity worldwide. The second step of analysis involved the integration of the CAES and UCED models. The UCED model developed in this thesis was validated and applied using data from the Irish grid, a power system with more than 50 thermal generators. A vast of existent data was used to create a mathematical model of the Irish system. Such data include technical specifications and variables of thermal generators, maintenance schedules and historical solar, wind and demand data. The validation exercise was deemed successful since the UCED model simulated utilization factors of 45 out of 52 generators with an absolute difference between modeled and actual results on utilization factors of less than 6% (the absolute differences are called Delta in this thesis). In addition the results of validation exercise were compared with the results of a similar exercise where PLEXOS was the modelling tool and it was found that the results of the two models were similar for the vast majority of generators. More specifically, the PLEXOS model results showed higher deltas for the coal-fired generators compared to the UCED model. On the other hand the UCED model, reported higher delta values for peat-fired generators. The results of the PLEXOS model were slightly better for the gas-fired generators while both models reported deltas nearly zero for all oil and distillate-fired generators. Finally the model was applied to study the benefits of energy storage in Ireland in 2020 when wind penetration is expected to reach 37% of total demand. The analysis involved the development of two groups of 3 scenarios each. In the first group the main scenario also called the “Reference” was used to simulate the short-term unit (30 min step) commitment within the Irish system without storage. The results of the reference scenario were compared with two additional scenarios that assumed the existence of one 270MW CAES unit in Northern Ireland by 2020 (again the first scenario involved the TE and the second the FP CAES model). The results showed –when using the TE model- that the inclusion of one 270MW CAES unit in AI can help reduce wind curtailment by 88GWh, CO2 emissions by 150,000 tonnes and system costs by € 6 million per year. If an FP model had been used instead the reductions would be: wind curtailment by 108GWh, CO2 emissions by 270,000 tonnes and annual system costs by €13 million. Two main conclusions can be obtained from the specific set of results. The first conclusion is that storage units have a financial benefit over the whole system. Thus, when a CAES unit operates to minimize the costs of the whole system can incur substantially more benefits compared to if the CAES unit operated to maximize the individual unit’s profits as in the case presented earlier. The benefits of storage over the whole system should be accounted to make policy decisions and create incentives for investors to increase energy storage capacity in national grids. The second important conclusion is that existing CAES FP models overestimate the ability of a CAES unit to facilitate VRE penetration. More accurate TE models should be used to assess a unit’s capability to increase system flexibility. A second group of scenarios was created to simulate the benefit of CAES at even higher VRE penetration levels. In the second group the “Reference” scenario again, assumed no storage however, wind production was increased by 25%. Again the “Reference” was compared with two additional scenarios that assumed integration of 3x270MW=810MW of storage capacity in AI (one scenario used the TE model and the other the FP). The results for the TE model show that each of the 3 CAES units reduces wind curtailment by 188,000MWh, total system costs by €29 million and CO2 emissions by 180,000 tonnes. The same reductions for the FP model are 217,000MWh of wind curtailment, €25.6 million on total system costs and 180,000 tonnes of CO2. Thus, the results of the second group of scenarios show that as the installed capacity of both CAES and wind increases in Ireland a) the system-wide benefits of CAES increase and b) the differences on results between the TE and FP models become much smaller.

The impact of climate change on the financial performance of companies is of concern to bank credit processes. The main objective of this research was to develop a South African contextualised credit process that incorporates environmental risk. The research methodology comprised of a mixed-method being content analysis – the qualitative portion and the Probability of Default prediction using a Merton Model and the Hoffmann and Busch (2008) carbon risk analysis model - the quantitative portion. A content analysis of the banks’ Annual Reports, Integrated Reports and Sustainability Reports showed that, while South African banks follow a qualitative approach to embedding environmental risk into their credit process, none of the four banks that formed part of the study divulged their quantitative approach to embedding environmental risk. The study used a proximity matrix method to examine the level of embedding. The second part of the study, which used prior studies as the benchmark, adopted the following: (1) a simulated carbon tax regime as a proxy for an environmental risk, and (2) the Hoffmann and Busch (2008) carbon risk analysis tool and the Merton Model (1974) as the bank credit process proxies. The second part of the study used a sample of 33 JSE-listed Carbon Disclosure Project reporting companies out of a population of 107. The carbon risk analysis showed that the companies in the materials and energy sector have a high carbon risk. However, the results from the Merton Model showed that the companies have enough profit to cushion the additional carbon tax liability, given the insignificant shift in probability of default between the three scenarios, where financial data had (1) no carbon tax, (2) was adjusted for a carbon tax with incentives, and (3) adjusted for carbon tax without incentives. Triangulation of the results from the content analysis, carbon risk analysis and the probability of default analysis confirms that South African banks do not fully integrate environmental risk across the credit value chain or process in the 2010 to 2017 period. However, the carbon risk analysis shows a heavy dependency on carbon sources for critical inputs into the South African companies’ production processes, which if not checked, will affect the credit portfolios of banks.
Finance, Risk Management and Banking
D. Phil (Management Studies)