Revenue-Neutral Tax-Subsidy Policy for Carbon Emission Reduction

One of the benefits of biofuel use is a reduction in greenhouse gas emissions relative to fossil fuels, but no policy directly targets carbon emissions across the full spectrum of renewable and nonrenewable fuels. In light of the political unpopularity of carbon taxes in the United States, we develop a model for a revenue neutral price instrument that maximizes social welfare subject to an exogenously determined net tax revenue target. This approach may be more palatable because it has the potential to change the relative price of the low-carbon and highcarbon components of blended fuel while limiting increases in taxes and motor fuel prices. Our model shows that the targeted tax revenue level and share of output to total gross domestic product in all fuel sectors are important factors determining the revenue-neutral tax levels for each fuel type. Interestingly, we also find that the marginal damages of pollution are not the primary determinants of the revenue neutral price instrument, but instead it is the relative marginal damages per unit price of each fuel type. This implies the counterintuitive possibility that with a revenue neutrality constraint, higher net carbon emitting fuels such as gasoline or diesel may implicitly be subsidized using revenues from carbon taxes on lower emitting fuels.Non-renewable resources, carbon tax, carbon dioxide emissions, revenue recycling, revenue neutral

Optimizing Urban Distribution Routes for Perishable Foods Considering Carbon Emission Reduction

The increasing demand for urban distribution increases the number of transportation vehicles which intensifies the congestion of urban traffic and leads to a lot of carbon emissions. This paper focuses on carbon emission reduction in urban distribution, taking perishable foods as the object. It carries out optimization analysis of urban distribution routes to explore the impact of low carbon policy on urban distribution routes planning. On the base of analysis of the cost components and corresponding constraints of urban distribution, two optimization models of urban distribution route with and without carbon emissions cost are constructed, and fuel quantity related to cost and carbon emissions in the model is calculated based on traffic speed, vehicle fuel quantity and passable time period of distribution. Then an improved algorithm which combines genetic algorithm and tabu search algorithm is designed to solve models. Moreover, an analysis of the influence of carbon tax price is also carried out. It is concluded that in the process of urban distribution based on the actual network information, the path optimization considering the low carbon factor can effectively reduce the distribution process of CO2, and reduce the total cost of the enterprise and society, thus achieving greater social benefits at a lower cost. In addition, the government can encourage low-carbon distribution by rationally adjusting the price of carbon tax to achieve a higher social benefit

System Dynamics (SD) Modelling for Carbon Emission Reduction in Building through Building Information Models (BIM) of Different Roof Insulation Systems

The demand for carbon emission reduction in building design, construction and operations sector with negligible environmental impact is expanding. Increasing energy expenses and awareness of ecological issues are the impetuses for such high concern. The advantages of ecological and human wellbeing from sustainable approaches or green technology such as green buildings have been broadly perceived. Thus, through this study, the author has investigated the effectiveness of the application of the cool roof insulation systems in reducing the carbon-emission in building. In achieving these goals, the author has utilized the application of Building Information Models (BIM) to analyse the energy-usage and carbon-emission reduction in building. In addition, the System Dynamics (SD) Modelling is incorporated to develop the simulation model for carbon-emission reduction in building with different roof insulation systems design

Carbon emission reduction targeting through process integration and fuel switching with mathematical modeling

Carbon emission reduction targeting is an important and effective effort for industry to contribute in controlling greenhouse gases concentration in atmosphere. Graphical approach has been proposed for CO2 emissions reduction targeting via HEN retrofit and fuel switching. However, it involves potentially time consuming manual procedures and the quality of solutions produced greatly depends on designer's experience and judgment. Besides, graphical approach hardly account for the cost factor during the design phase, thus potentially generate complex design. This paper introduces an MINLP model for simultaneous CO2 emissions reduction targeting via fuel switching and HEN retrofit. A sequential model execution was proposed along with the proposed model. The application of the model on a crude preheat train case study has demonstrated its workability to generate optimal solution for targeted CO2 emissions reduction at minimum payback period

A Comparative Study on Carbon Emission Reduction Systems

The overwhelming majority of scientists have concluded that global warming is unequivocal. The Intergovernmental Panel on Climate Change (IPCC) fifth report in 2013 concluded that the challenge of climate disruption to human beings is even more imperative than the previous report claimed, and that anthropogenic greenhouse gases (GHGs) emissions have extremely likely been the dominant causes of the observed global warming since the mid-20th century. Anthropogenic GHGs emissions have many implications, including more intensive, extreme meteorological events, spreading of diseases, and threatening human health and life. Climate change also causes injustice in human society because of the dislocation of the consequences from it in time and space for the affected people. As a response, a variety of policies and laws have been initiated from regions and nations. Among them, economic incentive instruments are employed to combat global warming, including a carbon emission trading system (ETS) and a carbon tax. Carbon emission trading as a market means has its advantages, such as political feasibility and certainty for environmental benefits. Its volatility of carbon price could be avoided by a proper design, for instance, a price containment mechanism. In contrast, a carbon tax is less politically feasible and also may have an effect on trade and market distortion, such as border and tariff adjustments (BATS). Allowing parties to buy CERs from CDM and Reduced Emissions from Deforestation and forest Degradation (REDD+) projects will be conducive to carbon emissions reduction. The European Union Emission Trading System (EU ETS) is the largest and most successful market based system in the world. The lessons learned in its development, detailed in the body of this thesis, set invaluable examples from which other market based systems can greatly benefit. The Regional GHG Initiative (RGGI), the first mandated cap-and-trade program for GHGs, is another pioneer cap and trade program herein discussed in depth. It is a regional program of Northeastern U.S. states. RGGI is regarded as an effective and efficient system. It successfully decoupled economic growth and the reduction of carbon emissions. RGGI states surpassed other states in economic growth and the decline of carbon emissions simultaneously. RGGI‘s challenges and shortcomings are also documented. Thus RGGI encountered carbon leakages through importing electricity from non-RGGI states. The Cost Containment Reserve also needed improvement. When reserve allowances were sold, additional emissions tended to inflate the original cap. To avoid this scenario, some portion of allowances needed to be held back in the allowance reserve. Another pioneer U.S. cap and trade initiative, The Western Climate Action Initiative, is a unique multi-jurisdictional program among western U.S. states and Canadian provinces. In one element of it, California and Quebec have created the first international cap-and-trade system of sub-national jurisdictions. It is the most ambitious program in North America, but it encountered difficulties from the dramatic change in the political landscape accompanying the 2008 economic crisis and the change in U.S. administrations. The emission trading systems of a number of other nations that are experimenting with emission trading systems are also covered in depth, including the Korea Emission Trading System begun in South Korea in 2015 and the Tokyo Metropolitan Government cap-and-trade program which was the first mandatory ETS in Japan, begun in 2010. The China approaches to these issues and their prospects are a major focus of this study. China officially launched seven state pilot ETS programs starting in 2013 and plans to initiate a national ETS this year in 2017. The many accumulated experiences from the pilot programs include such findings as the importance of setting realistic targets balancing the needs for carbon reductions with those of economic growth and pollution control and the need for legislation specifying the actions to be taken, provisions for disclosure, allowance allocations, offsets, infrastructure building, monitoring reporting and verification, and adoption of a compliance mechanism. Deficiencies in the pilot programs are evaluated, such as those derived from lack of a national legal basis and unified rules for the carbon market, an excess of free allocation of allowances, a lack of liquidity of the market, lenient punishment for non-compliance, and absence of a sound monitoring and regulatory mechanism. The requisites for sound market based programs are described, with particular emphasis on the need for a comprehensive legal basis on which programs can be built. The pluses and minuses of cap and trade market based programs versus carbon taxes are explored in depth, including the possibilities of combining the two systems. Various bottom up and top down approaches are explored and the key elements of success and failure. From the perspective of international cooperation under the Paris Agreement in the long run, it is concluded that it is necessary to identify a formula to link the domestic carbon markets to those in other jurisdictions. A multi-lateral club approach is suggested. The role of the judicial branch in carbon emission reduction is explored with several recent relevant cases described. Conclusions of the study seek to identify what alternative systems of carbon emission controls are being applied throughout the world, what lessons can be learned from them, and what are the important elements needed for successful programs

Community-based Carbon Emission Reduction Program in Protection Forest

Protection forests have the potential to contribute to reducing emission. Management of a protection forest would be effective when local community gets involved in decision-making process. This paper aims to investigate roles of the local community in forest emission reduction program. The analysis includes community's perception to REDD+, institutional preparedness in site level, potentials and impediments in utilising environmental services, as well as schemes for community-based REDD+. The study shows that the community's perception to REDD+ is varied from high to moderate. The perception categorized “high” is stimulated by support from NGOs. Meanwhile, preparedness of the community to implement REDD+ has been well developed since they have developed a particular institution including a strategic plan to manage the forest. Nevertheless, the implementation has not been optimum due to complexity of institutional challenges. For instance, carbon, ecotourism and water are potential to be developed but funding has become a major handicap so that it is necessary to find an incentive scheme to support their development. Considering such condition, Plan Vivo scheme is likely to be appropriate in the Customary Forests of Rumbio and Yapase, while Verified Carbon Standard is appropriate to support the Katimpun Village Forest in developing incentive for REDD+

Carbon Fee Fail-Safe and Safeguard

The fail-safe makes sure the fee is high enough to meet carbon emission reduction targets. The safeguard keeps the fee from getting any higher than needed. One of the ways that we could account for the unpredictability of the price elasticity of demand for carbon would be to provide a fail-safe mechanism to ensure that we definitely stay on the carbon reduction schedule. If we keep Energy Innovation Act (HR 763) essentially as it is and scale up the annual carbon fee increase by Number-of-Years-Behind-Schedule * 0.15