CO2 Emissions Embodied in Austrian International Trade

This study quantifies the CO2 emissions embodied in Austrian exports and imports, using a two region-input output approach (Austria and the rest of the world). The approach considers differences in production technologies between Austria and the rest of the world, concerning the CO2 coefficients (per unit of output) and the input-output structure (both are taken from data for EU 27). The CO2 emissions embodied in Austrian imports are considerably higher than CO2 emissions embodied in exports, i.e., CO2 for Austrian demand is leaking to the rest of the world. From 1995 to 2005 this negative balance of CO2 in trade has diminished in absolute terms, from 11 million tons (1995) to 6.4 million tons (2005), as CO2 embodied in exports has grown more rapidly than CO2 embodied in imports, thereby creating a huge potential for future carbon leakage.trade-embodied CO2 emissions, input-output modelling, carbon leakage

Market-based instruments to reduce air emissions from household heating appliances: Analysis of scrappage policy scenarios

This document explores the potential for the use of a market based instrument to contribute to reducing the emissions of particulate matter of less than 10 micrometres from household heating appliances in the framework of the review of the Thematic Strategy on Air Pollution. The study is focused on the assessment of the economic and environmental impacts of possible scrappage policies for promoting the accelerated replacement of existing heating appliances by cleaner ones. Under these policy programmes, households replacing an old appliance by a cleaner one would receive a subsidy from the government. This subsidy would compensate households for the residual value of the appliance scrapped and the opportunity costs of the early investment in a new one. Two different scenarios are analysed: The scrappage and replacement of all the different types of conventional appliances that do not incorporate any emission control technology ("non-controlled"), and the scrappage and replacement of only "non-controlled" firewood and hard coal fired manual single house boilers. It is assumed that the scrappage programme is in force between 2018 and 2020. For each scenario, the study focuses on the effects of different levels of replacement of the "non-controlled" appliances and the size of subsidies relative to the investment costs.JRC.J.5-Sustainable Production and Consumptio

Technical Change, Investment and Energy Intensity

Abstract in HTML and technical report in PDF available on the Massachusetts Institute of Technology Joint Program on the Science and Policy of Global Change website (http://mit.edu/globalchange/www/).This paper analyzes the role of different components of technical change on energy intensity by applying a Translog variable cost function setting to the new EU KLEMS dataset for 3 selected EU countries (Italy, Finland and Spain). The framework applied represents an accounting of technical change components, comprising autonomous as well as embodied and induced technical change. The inducement of embodied technical change is introduced by an equation for the physical capital stock that is a fixed factor in the short-run. The dataset on capital services and user costs of capital in EUKLEMS enables explaining capital accumulation depending on factor prices. The model can be used for explaining and tracing back the long-run impact of prices and technical change on energy intensity.This paper is based on the EU KLEMS database, which has been funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, “Policy Support and Anticipating Scientific and Technological Needs” (project 502049)

FIDELIO 1: Fully Interregional Dynamic Econometric Long-term Input-Output Model for the EU27

In this report we present complete information about the Fully Interregional Dynamic Econometric Long-term Input-Output Model for the EU27 (FIDELIO 1). First, the macro overview of the model is discussed, which presents the main mechanisms of interactions between various blocks of FIDELIO. The second chapter explains the main economic theories underlying FIDELIO consumption, production and labour market blocks. Here, further econometric approaches for estimation of the parameters of all behavioural equations and their results are presented. Then, derivation of all the necessary base-year data (e.g., various commodity use structure and price structure matrices, trade matrix, base-year residuals, etc.) are discussed in detail. All FIDELIO equations are presented (with discussions) in Chapter 4. Finally, a full description of the data sources is given in the last chapter. It will become clear from this description document that FIDELIO is appropriate for the impact assessment purposes of diverse (economic and/or environmental) policy questions of our times.JRC.J.5-Sustainable Production and Consumptio

Sectoral economy: do sectors really matter?

En el presente artículo se realiza una revisión de las principales teorías y modelos recogidos en la literatura del análisis sectorial y se realiza una presentación de los distintos originales recogidos en la sección monográfica. Se han intentado recoger los aspectos más significativos del moderno análisis sectorial tratando de justificar el interés y la relevancia de estos estudios de tipo metzo-económico. Como principal conclusión estableceríamos que los análisis sectoriales tienen su máximo interés cuando de la agregación de los resultados individuales se pueden obtener conclusiones significativamente diferentes de la que se obtendrían del mero análisis macroeconómico agregado. En este sentido, los artículos recogidos en este monográfico representan un buen ejemplo de la validez de este tipo de análisis desagregados

Thematic report: Macroeconomic models including specifically social and environmental aspects

WWWforEurope Deliverable No. 8, 30 pages A significant reduction of the global environmental consequences of European consumption and production activities are the main objective of the policy simulations carried out in this paper. For this purpose three different modelling approaches have been chosen. Two macroeconomic models following the philosophy of consistent stock-flow accounting for the main institutional sectors (households, firms, banks, central bank and government) are used for quantifying the impact of several different policies. These policies comprise classical tax reforms (pricing of resources and emissions) as well as policies aiming at behavioural change in private and public consumption and at technological change (energy and resource efficiency and renewable sources). A Dynamic New Keynesian (DYNK) model is used for a comparison between classical green tax reform and taxing direct and indirect (footprint) energy and resource use of consumers. An important leading principle of the modelling work is the simultaneous treatment of economic (GDP, employment), social (income distribution, unemployment) and environmental issues. The paper shortly describes the different modelling approaches and highlights the most important features for the evaluation of the impacts of different policies. Then the different policy scenarios that are carried out with each model are described. The policy scenarios are not directly comparable between the different models, but show some similarities. The simulation results of the different policy scenarios are then analyzed and discussed. Two important conclusions can be drawn from the simulation results: (i) important trade-offs and synergies exist between the different economic, social and environmental goals (ii) simple policy scenarios mainly putting all the effort in one simple instrument (e.g. tax reform) are not likely to achieve an optimal result. A combination of instruments is most likely to achieve results satisfying the different economic, social and environmental goals

Sectoral economy: do sectors really matter?

En el presente artículo se realiza una revisión de las principales teorías y modelos recogidos en la literatura del análisis sectorial y se realiza una presentación de los distintos originales recogidos en la sección monográfica. Se han intentado recoger los aspectos más significativos del moderno análisis sectorial tratando de justificar el interés y la relevancia de estos estudios de tipo metzo-económico. Como principal conclusión estableceríamos que los análisis sectoriales tienen su máximo interés cuando de la agregación de los resultados individuales se pueden obtener conclusiones significativamente diferentes de la que se obtendrían del mero análisis macroeconómico agregado. En este sentido, los artículos recogidos en este monográfico representan un buen ejemplo de la validez de este tipo de análisis desagregados

From Ecological Footprint to Ecological Rent: An Economic Indicator for Resource Constraints

This paper takes as its starting point a combination of a (monetary) input-output model with a national Ecological Footprint account for Germany in the spirit of Wiedmann et al. (2006). Footprint as well as biocapacity are dealt with at the industry level. Gross output of each industry and final demand for each industry can then be split into a share that can be reconciled with biocapacity and another share that corresponds to biocapacity overshooting. The Ecological Footprint concept is extended in this study by introducing the additional biophysically productive land necessary for sustaining the given level of economic activity. It is assumed that each industry had to rent the corresponding areas and to apply a given technology in order to make this additional land biophysically productive. This results in a new technology for each industry leading to an increase in costs and prices. The new price level is directly linked to the share of output that corresponds to biocapacity overshooting. Economic indicators can be derived by measuring the income difference brought about by the price increase. This difference corresponds to a Ricardian rent which is due to resource constraints on output growth.input-output models, Ecological Footprint, Ricardian rent

Inter-Fuel Substitution, Energy Demand and Embodied Technical Change

Inter-Fuel Substitution, Energy Demand and Embodied Technical Change

Energy Scenarios up to 2020

On the basis of its model of energy demand and energy conversion in Austria (DAEDALUS III), WIFO simulated three scenarios to establish a long-term forecast of the development of energy consumption and CO2 emissions. The baseline scenario assumes a continuation of current developments, while the Kyoto scenario reflects the effects of the Austrian strategy to counteract climate change. The sustainability scenario is based on the adoption of international approaches to implement socially compatible measures aimed at minimising energy consumption and accelerating technological progress.Long-term Forecast, Energy Consumption, CO2 Emissions, Austria; Energy Scenarios up to 2020