An Introductory Note on the Environmental Economics of the Circular Economy

This paper provides an introduction to some of the fundamental principles and approaches in envi- ronmental economics which are of significance to achieving an integrated sustainability science The concept of a circular economy introduced by the late David Pearce in 1990 addresses the interlink ages of the four economic functions of the environment The environment not only provides amenity values in addition to being a resource base and a sink for eco- nomic activities it is also a fundamental life-support system Environmental economists have suggested that taking these four functions as an analytical start- ing point unpriced or underpriced services should be internalised in the economy In Europe significant ad- vances have been achieved in the pricing of externali- ties by means of truly interdisciplinary analysis which accounts in detail for the environmental consequences The monetary estimates reached as a result of such interdisciplinary research are gradually being applied to the economic analysis of environmental policy pri- orities Although such figures provide only a partial and incomplete picture of the environmental costs at stake they support and inform the analysis of the virtues of a circular economy for individual resources as well as for sustainability as a future trajector

Specification and Automated Verification of Real-Time Behaviour —A Case Study

In this paper we sketch a method for specification and automaticverification of real-time software properties. The method combinesthe IEC 848 norm and the recent specification techniques TCCS (TimedCalculus of Communicating Systems) and TML (Timed Modal Logic) - supported by an automatic verification tool, Epsilon. The methodis illustrated by modelling a small real-life steam generator example andsubsequent automated analysis of its properties.Keywords: Control system analysis; formal specification; formal verification; real-time systems; standards

Transport modelling in the context of the ‘predict and provide’ paradigm

The central concern of this paper is why the traffic-increasing effect of road capacity expansion (induced traffic) is still frequently ignored when preparing decision-support material for proposed infrastructure investments. Earlier research has pointed at ignorance or technical difficulties as likely reasons. This paper offers an additional explanation. Based on an investigation of the opinions of transport modellers, consultants, transport planners and politicians concerning the usefulness, shortcomings and application of forecasting models in transport planning, this paper suggests that transport model forecasts are used in project evaluations primarily to throw light on where and when to build a proposed road infrastructure, not for assessing whether to build it. Since induced traffic is usually not differing so much between the different ‘build’-alternatives, the errors caused by omitting induced traffic in the models are accepted. This way of framing the decision problem is often associated with what has been termed the ‘predict and provide’ paradigm

Europe’s experience with carbon-energy taxation

The COMETR project is a comprehensive attempt to account ex-post for the implications of carbon-energy taxation, taking into account differences in sectoral tax burdens and within a suitable macro-economic framework capable of providing an overall assessment, the E3ME model of Cambridge Econometrics. The results indicate reductions in greenhouse gas emissions for six member states as a result of carbon-energy taxation under revenue-neutral environmental tax reform (ETR). These effects are mirrored by reductions in total fuel consumption, with the largest reductions occurring in countries with the highest tax rates. Accordingly, the European environmental tax reforms had by 2004 caused reductions in greenhouse gas emissions of 3.1% on average for the six member countries examined, with the largest fall recorded for Finland (5.9%). E3ME-results also suggest that ETR-countries did not experience marked impacts on economic growth (GDP). There was a negative effect for energy-intensive industries but due to many exemptions the burden has remained modest and, where revenues have been recycled to lower employers’ costs for social security contributions, generally below 2% of gross operating surplus

Implications of Denmark\u27s Water Price Reform for Reverine and Coastal Surface Water Quality

Article 9 of the EU’s Water Framework Directive suggests that Member States should provide “adequate incentives” for efficient use of water resources. Although the Directive is mainly about protecting the ecological quality of water bodies, control of quantity serves as an “ancillary element” in delivering on the objectives. Despite their financial difficulties, Member States have been slow to bring their policies on water pricing up to the wording and 2010 deadline of the Directive’s article 9. This Article explores the significance of water pricing reform for the ecological quality objectives for surface waters and, as a stepping stone in this analysis, for water resource efficiency. It does so with a catchment-based analysis of implications from water pricing reform introduced in the early 1990s in Denmark. Household water use is found to have been 50% higher per capita before the reform, which introduced full-cost pricing and a water supply tax. Good data availability for the catchment allows the analysis to demonstrate estimates for the improvements in water flows as well as for a specific water quality parameter. Despite the significant reduction in water demand, the main river is affected only at the margin. For smaller streams and brooks, however, there are more notable impacts for water quality and with potential benefits for rare species dependent on clean waters. A small reduction in emission loadings to coastal waters has comparatively high economic value. The Article finds that water pricing has an important role to play for future management

30.000 ways to reach 55% decarbonization of the European electricity sector

Climate change mitigation is a global challenge that, however, needs to be resolved by national-level authorities, resembling a tragedy of the commons. This paradox is reflected at European scale, as climate commitments are made by the EU collectively, but implementation is the responsibility of individual Member States. Here, we investigate 30.000 near-optimal effort-sharing scenarios where the European electricity sector is decarbonized by at least 55% relative to 1990, in line with 2030 ambitions. Using a highly detailed brownfield electricity system optimization model, the optimal electricity system is simulated for a suite of effort-sharing scenarios. Results reveal large inequalities in the efforts required to decarbonize national electricity sectors, with some countries facing cost-optimal pathways to reach 55% emission reductions, while others are confronted with relatively high abatement costs. Specifically, we find that several countries with modest or low levels of GDP per capita will experience high abatement costs, and when passed over into electricity prices this may lead to increased energy poverty in certain parts of Europ