Eonomic valuation of greenhouse gas emissions reduction

Abstract

Climate change due to greenhouse gas emissions has been at the forefront of current research efforts in the past decade. The aim of these efforts was defined at the earth summit in Rio de Janeiro as achieving “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climatic system”. With on‐going demographic and economic growth, stabilization of greenhouse gas emissions requires firm commitment from all countries to mitigate their emission increase often at the expense of economic growth. However, the economic and social costs of mitigating climate change are, for most countries, less than the costs of adverse impacts associated with the predicted change in climate patterns. This paper evaluates the current and future contribution of Lebanon to global greenhouse gas emissions. Mitigation options with positive or minor economic impacts are investigated. Attainable levels of emission reduction are first estimated. An economic valuation of mitigation measures associated with these levels is then performed. Reasonable emission reductions at negative costs are found to be feasible due to existing inefficiencies in the energy and industry sectors.