Carbon Markets and Beyond: The Limited Role of Prices and Taxes in Climate and Development Policy

The climate policy debate has advanced from science to economics, with a growing focus on creating carbon markets and getting the prices right. This is necessary but far from sufficient for an effective and equitable response to the climate challenge. While market-oriented forces such as the IMF and the World Bank have focused almost exclusively on carbon markets, others, such as the Human Development Report and the Stern Review, have emphasized the need for complementary, non-market climate initiatives to promote energy conservation and above all, to create and adopt new low-carbon technologies. The equity implications of market-based policies depend on the price elasticity of demand. When demand is elastic (i.e. the elasticity is large in absolute value), as in the case of industrial energy use, price incentives are quite effective and distributional impacts are minimized. On the other hand, when demand is inelastic (i.e. the price elasticity is close to zero), as in the case of transportation fuel use, price incentives are less effective, worsening income inequality but doing little to change in energy use and carbon emissions. Thus non-market policy instruments are particularly important in sectors with inelastic demand for energy, such as transportation. Price incentives alone cannot be relied on to spark the creation of new low-carbon technologies. Many technologies display “learning curve” effects, starting out with high unit costs and becoming cheaper as they are used more widely. Wind power, which is now commercially viable, only became affordable as a result of decades of government subsidies and research support. The same will be true of other low-carbon energy technologies, which will be needed for a sustainable solution to the climate problem. Policy debate has focused on the need for a globally harmonized price for carbon. This is not required by economic theory; in an unequal world, the logic of market economics implies that richer countries should, in effect, have a higher price for carbon. It appears likely, nonetheless, that a consistent global price will eventually be adopted. This will make the benefit of reducing carbon emissions loom larger in lower-income countries. As a result, a wider range of carbon-reducing technologies will be profitable in developing countries, creating opportunities for “leapfrogging” beyond the technologies in use in high-income countries – thereby helping to launch a new, green path to development.

China and East Asian Energy : Prospects and Issues

In October 2005, the Crawford School (then the Asia Pacific School of Economics and Government) within the Australian National University (ANU) initiated a major research project on China and East Asian Energy. The project is being undertaken under the schools East Asia Forum in conjunction with the China Economy and Business Program. The first conference in the series being organised under the auspices of the China and East Asian Energy Strategies Research Program was hosted in Beijing by the Energy Research Institute and the ANU on 1011 October 2005. It was the first of five annual conferences in the program. This book brings together the key papers presented at that conference.

Evolution of green shipping research: themes and methods

Over the past 30 years, there have been growing concerns on theenvironmental impacts of maritime transportation, which have attractedgreat attention from both academia and practitioners. Understandingdevelopments in this area can help guide future research. We conducteda comprehensive review of green shipping research, comprising 213papers published in transportation journals in SSCI of 2017 over theperiod 1988–2017. We find that research on green shipping hasincreased greatly since 2012, accounting for 77.5% of the reviewedpapers. The main focus today on green shipping was on air pollution,and the classification of green shipping practice, such as technical measures,operational options, market-based measures, and recycling andreusing, is becoming clear. According to the existing studies, futureresearch on green shipping must strengthen technology research tonot only solve practical problems, but also to establish a theoreticalgreen shipping system. Moreover, researchers from different countriescould cooperate with each other to give effective suggestions on settingstandards and laws of green shipping. Finally, we identify the futureresearch themes will focus on setting up green shipping system andlegislation and policy

Achieving a sustainable automotive sector in Asia and the Pacific: Challenges and opportunities for the reduction of vehicle CO2 emissions

This working paper analyses the contribution of the Asia-Pacific automotive sector to greenhouse gas (GHG) emissions, and the challenges and opportunities facing the sector in efforts to reduce those emissions, primarily carbon dioxide (CO2). The main purpose of this paper is to identify recommendations for appropriate policies and strategies as well as for regional cooperation, to ensure that future developments in the automotive sector contribute to mitigating and adapting to climate change.climate change, vehicle carbon emission, automotive sector development, economic development

Future Greener Seaports:A Review of New Infrastructure, Challenges, and Energy Efficiency Measures

Recently, the application of renewable energy sources (RESs) for power distribution systems is growing immensely. This advancement brings several advantages, such as energy sustainability and reliability, easier maintenance, cost-effective energy sources, and ecofriendly. The application of RESs in maritime systems such as port microgrids massively improves energy efficiency and reduces the utilization of fossil fuels, which is a serious threat to the environment. Accordingly, ports are receiving several initiatives to improve their energy efficiency by deploying different types of RESs based on the power electronic converters. This paper conducts a systematic review to provide cutting-edge state-of-the-art on the modern electrification and infrastructure of seaports taking into account some challenges such as the environmental aspects, energy efficiency enhancement, renewable energy integration, and legislative and regulatory requirements. Moreover, the technological methods, including electrifications, digitalization, onshore power supply applications, and energy storage systems of ports, are addressed. Furthermore, details of some operational strategies such as energy-aware operations and peak-shaving are delivered. Besides, the infrastructure scheme to enhance the energy efficiency of modern ports, including port microgrids and seaport smart microgrids are delivered. Finally, the applications of nascent technologies in seaports are presented

Asian Energy and Environmental Policy: Promoting Growth While Preserving the Environment

Asia has truly experienced spectacular economic growth over the past 15 years. However, this economic progress has come at a high cost. It has led to unprecedented environmental consequences. The ecological footprint shows that, despite the fact that one-fifth of the population in Asia still lives on less than US$ 1 per day (PPP-adjusted), the region is already living beyond its ecological carrying capacity. The region is facing a dilemma. On the one hand, continued economic growth is needed to alleviate the poverty of the two-thirds of the world’s poor living in this region. On the other hand, that economic growth will further place tremendous strains on the natural environment. In order to extricate itself from this difficult position, the region needs to shift the conventional pattern of “develop first and then treat the pollution” to a different trajectory of sustainable development. To that end, this paper examines a variety of policy responses at national, regional and international levels to deal with growing concerns about the environmental challenges in Asia in order to help to put the region on a more sustainable development path. In the context of national responses, special attention is paid to the following issues: coordination between the central and local governments, market-based environmental instruments and industrial policies, tougher emissions standards for mobile and stationary sources and for fuel quality, policies to promote energy efficiency and the use of clean energy and biofuels, the integration of environmental policies with economic and sectoral policies, and engagement of the private sector through e.g., ecolabelling, green government procurement, corporate ratings and disclosure programs, and drawing the support of financial institutions to promote improved corporate environmental performance. It is concluded that having the right policy mix, coupled with strengthened cooperation at national, local and regional levels, will ensure continuing economic growth in the region without compromising its limited ecological carrying capacity and environmental quality.Energy policy; Market-based environmental instruments; Asia

A review of regulatory instruments to control environmental externalities from the transport sector

This study reviews regulatory instruments designed to reduce environmental externalities from the transport sector. The study finds that the main regulatory instruments used in practice are fuel economy standards, vehicle emission standards, and fuel quality standards. Although industrialized countries have introduced all three standards with strong enforcement mechanisms, most developing countries have yet to introduce fuel economy standards. The emission standards introduced by many developing countries to control local air pollutants follow either the European Union or United States standards. Fuel quality standards, particularly for gasoline and diesel, have been introduced in many countries mandating 2 to 10 percent blending of biofuels, 10 to 50 times reduction of sulfur from 1996 levels, and banning lead contents. Although inspection and maintenance programs are in place in both industrialized and developing countries to enforce regulatory standards, these programs have faced several challenges in developing countries due to a lack of resources. The study also highlights several factors affecting the selection of regulatory instruments, such as countries'environmental priorities and institutional capacities.Transport Economics Policy&Planning,Transport and Environment,Energy Production and Transportation,Environmental Economics&Policies,Environment and Energy Efficiency

Low Carbon Freight Services Analysis: A Review Study

ABSTRACT_ The analysis of Low Carbon Freight Services is relatively recent. However, the topic has become one of the most popular in freight services research literature. A review of 80 Low Carbon Freight Services papers, published in the literature during the period 1995-2015, was undertaken to provide Freight Services researchers with a reference guide to the context, method and focus of previous studies. The outcome of these papers show there is some benefits to employ low carbon freight logistic include Economic benefits, Environmental benefits, Operational benefits and Intangible benefits. The study describes opportunities and contributions in relation to an increase in a competitiveness and flexibility of enterprise and all of participating supply chain segments