Abatement Technologies Research Articles

Improve the Sustainability of Supply Chain: the Role of Carbon Abatement and Blockchain Technology

This paper constructs a sustainable supply chain consisting of a manufacturer and a retail platform. This paper explores the manufacturer’s decision of whether to develop green technology to reduce carbon emission and the platform’s option of whether to adopt blockchain technology to disclose information. According to the selling format in the supply chain (i.e., reselling or agency selling format), this study divides the research into two scenarios: Scenarios R and A. Through analyses, the paper first finds that two parameters play decisive roles in the manufacturer’s and the platform’s decisions: the consumer’s acceptance of product and the consumer’s environmental sensitivity. As the consumer’s acceptance of product increases, the supply chain members’ mode preferences change from Mode RT (Mode AT) to Mode RB (Mode AB). And the increase of the consumer’s environmental sensitivity leads the supply chain members less likely to take actions (reducing carbon emission or disclosing information). Specifically, this paper discovers that the manufacturer’s and the platform’s mode preferences are always analogous with each other. Next, this paper finds that the two decisive parameters’ (i.e., the consumer’s acceptance of product and the consumer’s environmental sensitivity) joint impact on the platform’s optimal decision is more drastic than on the manufacturer’s. Finally, the selling format in the supply chain interacts with the consumer’s acceptance of product exerting influence on the supply chain members’ optimal decisions.

Novel application of Ru-based catalysts on MgAl oxides alkaline adsorbents for cyclic CO2 methanation

This study explores the performances of Ru-based catalysts with a low metal content (2 wt%) supported on MgO and Mg-Al Oxides (MgAl) for cyclic CO2 adsorption and methanation at atmospheric pressure. Adsorption and desorption tests demonstrated that MgAl-based catalysts are more promising for CO2 capture due to their larger surface area and better distribution of active sites (Mg2+–O2-). Moreover, doping the MgAl support with K2CO3 further improves surface alkalinity and, consequently, capture performance. During cyclic operations, all the catalysts proved effective and selective for methane production. To simulate realistic conditions, both dry and wet CO2 adsorptions were conducted before the methanation stage. The presence of moisture positively influenced gas carbonation for all catalysts, increasing the overall amount of CO2 captured. Specifically, Ru/MgAl exhibited the best performance in terms of adsorption and conversion to methane (approximately 85 % after dry adsorption and 79 % after wet adsorption), with a maximum methane production of 183 and 220 μmolCH4 g−1, respectively. The reaction yield was further enhanced with Ru-K/MgAl, achieving 327 μmolCH4 g−1 after dry adsorption and 333 μmolCH4 g−1 after wet adsorption. However, this catalyst displays different conversion kinetics, attributed to slowed carbonate migration, low Ru dispersion, limited specific surface area, and excessive carbonation strength. Operando FTIR tests revealed differences in reaction intermediates between Ru/MgAl and Ru-K/MgAl, by going deeper into the kinetic differences observed. The study concludes that Ru/MgAl materials are highly promising catalysts for CO2 adsorption and methane production, supporting the development of technologies for CO2 abatement and renewable energy utilisation.

Cap-and-trade under a dual-channel setting in the presence of information asymmetry

Cap-and-trade, a widely used carbon regulation policy, encourages firms to adopt carbon abatement technologies to reduce emissions. Traditional supply-chain literature on this policy assumes symmetrical information, overlooking the fact that carbon abatement efforts and costs are often private and vary significantly across geographies, industries, and pollutants. In this paper we explore a dual-channel setting involving a manufacturer and a retailer, where the manufacturer, subject to cap-and-trade regulations, has undisclosed information about its carbon abatement costs. Our findings reveal that high abatement costs can paradoxically benefit the manufacturer, the environment, consumers, and overall social welfare. Our result also cautions that a higher carbon trading price (e.g., due to more ambitious emission reduction targets) can disincentivize the manufacturer from investing in carbon abatement. Moreover, a higher production cost, while resulting in lower market output, can increase pollution generation. We contribute the following to the practitioner debate about the impact of carbon policies: for an industry with a large market size, our findings lend support to governments to implement a cap-and-trade policy, because the manufacturer, customers and social welfare can be better off under a cap-and-trade policy than under a tax policy or no carbon policy. Additionally, we suggest that in such industries, governments need not enforce information transparency within the supply chain.

The simple analytics of the environmental Kuznets curve: a reformulation

PurposeThis paper aims to review the relationship between per capita income and aggregate emission in an economy populated by rational agents. According to the environmental Kuznets curve (EKC) hypothesis, pollution–income relationship is an inverted U-shaped curve. This paper aims to derive that relationship in an endogenous way and extends the relevant literature in an important way.Design/methodology/approachThis paper formulated a general equilibrium model of homogenous population with identical tastes and preferences. Production side is modelled with firms operating in a monopolistically competitive environment. The approach is modelling the economy in an analytical way so that closed form solutions can be achieved. Model simulations have also been performed to get a clear view of results.FindingsThis study shows that increasing returns to scale in abatement technology ceases to be a sufficient condition for the generation of the EKC hypothesis. The general equilibrium structure of the model allows studying the endogenous evolution of income, emissions and prices of the abatement goods in a unified setting.Originality/valueThe paper is novel and original in nature. The results are new in the literature. These results extend and generalise the previous research work in this area in an important way. The sufficient condition that is obtained in this study limits the applicability of EKC in an otherwise identical economy as used in previous literature. Therefore, this paper adds value to the ongoing research related to EKC.

Mitigating China's process-related greenhouse gas emissions via supply chain management

As the world's largest industrial producer, China's deep decarbonization of industrial process-related greenhouse gas (GHG) emissions is essential in fulfilling the goal of reaching net zero emissions. Previous studies focused more on emission inventories and abatement technologies, however, final demand also plays a significant role in driving China's industrial process-related GHG emissions. Based on the environmentally extended input-output analysis and structural path analysis, this study explores detailed industrial process-related GHG emissions inventory and investigates critical supply chain paths of 17 products and 16 types of GHG emissions. The results show that industrial process-related GHG emissions reached 1887.1 Mt CO2-eq in 2018, of which more than three-fifths was induced by fixed capital formation. The entirety of the Construction sector amounted to 54.6% of the total embodied industrial process-related GHG emissions. After examining the embodied industrial process-related GHG emissions paths, critical economic sectors such as Construction, Nonmetallic Mineral, Chemical, and the paths of “Nonmetallic Mineral → Construction → Fixed capital formation and Nonmetallic Mineral → Nonmetallic Mineral → Construction → Fixed capital formation” were identified as the main contributor. In considering of the enormous challenges during mitigating GHG emissions from process-related industries, it is essential to identify and optimize critical supply chains, which provides new insights into China's industrial process transition towards a low-carbon economy.

The green bonus of tax incentives: Evidence from China

Using a novel dataset covering over one million firm-level energy consumption entries from 2007-2016, we employ a difference-in-differences approach to estimate the causal effect of tax incentives on carbon emission intensity by exploiting China’s staggered implementation of accelerated depreciation policies for fixed assets in 2014 and 2015. We find that the accelerated depreciation policy leads to a significant 9.19% reduction in carbon emission intensity, equivalent to 0.11 tons of carbon emissions per 10,000 RMB of industrial value added. The policy effect is more pronounced for large firms, those with medium-term assets, and in regions with greater market integration and industrial agglomeration. Our firm-level analysis reveals that the policy reduces energy consumption, promotes a shift towards a cleaner energy portfolio and increases R&D investments in abatement technologies, as well as climate-friendly innovations. The above results show high consistency with verification at the aggregation level using satellite-based observations. Our findings highlight the potential of well-designed fiscal policies to contribute to global climate action efforts in developing economies.

The impact of abatement technology difference on optimal allowance trading scheme under the stability of international environmental agreement

The impact of abatement technology difference on optimal allowance trading scheme under the stability of international environmental agreement

The persistence of environmental and social strategies under emission permits

In this paper, we analyse the long-run industry configuration of an oligopoly where profit-seeking (PS) and environmentally socially responsible (ECSR) firms compete in quantities. We adopt an evolutionary setting to determine the firms’ endogenous choice of statute (PS or ECSR). Pollution is regulated through an Emission Trading System (ETS) scheme that allocates emissions rights to firms. Firms may also invest in emission abatement technology to reduce the cost of emission rights. Our findings show that the introduction of an ETS favours the persistence of the ECSR strategy by reducing the share of PS firms in the industry. In contrast, an increase in the stringency of the ETS policy makes the PS strategy more competitive.

Environmental Policies and Countermeasures for the Phase-Out of Ozone-Depleting Substances (ODSs) over the Last 30 Years: A Case Study in Taiwan

It is well established that the reaction cycles involving some halogenated alkanes (so-called ozone-depleting substances—ODSs) contribute to the depletion of ozone in the stratosphere, prompting the Montreal Protocol (initially signed in 1987), and later amendments. The Protocol called for the scheduled phase-out of ODSs, including chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), carbon tetrachloride (CCl4), halon, methyl chloroform (CH3CCl3), methyl chloride (CH3Cl), and even hydrofluorocarbons (HFCs). In view of the urgent importance of ozone layer protection to the global ecological environment, the Taiwanese government has taken regulatory actions to reduce ODS consumption since 1993, through the joint venture of the central competent authorities. Under the government’s regulatory requirements, and the industry’s efforts to adopt both alternatives to ODSs and abatement technologies, the phase-out of some ODSs (i.e., CFCs, CCl4, halon, and CH3CCl3) was achieved prior to 2010. The consumption of HCFCs and methyl chloride has significantly declined over the past three decades (1993–2022). However, HFC emissions indicated a V-type variation during this period. Due to local production and extensive use of HFCs in Taiwan, the country’s emissions increased from 663 kilotons of carbon dioxide equivalents (CO2eq) in 1993 to 2330 kilotons of CO2eq in 2001, and then decreased to 373 kilotons of CO2eq in 2011. Since then, the emissions of HFCs largely used as the alternatives to ODSs showed an upward trend, increasing to 1555 kilotons of CO2eq in 2022. To be in compliance with the Kigali Amendment (KA-2015) to the Montreal Protocol for mitigating global warming, the Taiwanese government has taken regulatory actions to reduce the consumption of some HFC substances with high global warming potential (GWP) under the authorization of the Climate Change Response Act in 2023, aiming at an 80% reduction by 2045 of the baseline consumption in 2024.

Strategies for Managing Perfluorinated Compounds (PFCs) in Semiconductor Manufacturing: A Supply Chain and Public Management Approach

The semiconductor industry stands as a pillar of modern technological progression, yet it grapples with significant environmental challenges, predominantly due to the emissions of perfluorinated compounds (PFCs). PFCs, critical in semiconductor manufacturing processes like dry etching and chemical vapor deposition (CVD) chamber cleaning, present a dire environmental concern given their high Global Warming Potential (GWP) and persistent nature. This treatise delves into a comprehensive analysis of how supply chain management and astute public policy can mitigate the deleterious impact of PFCs. It methodically scrutinizes the current challenges in curbing these emissions, assesses the efficacy of prevailing strategies, and champions the inception of trailblazing abatement technologies alongside forward-thinking regulatory frameworks. The research presents a critical evaluation of the interplay between stringent environmental requirements and the semiconductor industry's economic and innovation imperatives. It underscores the intricacies of aligning the sector's operations with sustainable practices while maintaining its economic vitality and capacity for innovation. Through a meticulous exploration of advanced material alternatives, state-of-the-art emissions control technologies, and progressive policy initiatives, this paper endeavors to steer the semiconductor industry towards a future where environmental sustainability becomes a cornerstone of its developmental ethos without stifling its technological evolution or economic robustness.

Implications of the Global Race to Net-Zero by 2050 for the Strategic Fleet of Coal-Fired Power Plants in SADC

This paper discusses the coal-fired power plants (CFPPs) in the Southern African Development Community (SADC), in the context of the net-zero by 2050 initiative. It describes recent global climate change responses impacting the operation of CFPPs, and the medium-to-long term prospects for coal power. The paper then discusses the motivators and strategies for sustaining the operations of CFPPs in SADC, and why the international community has to let countries in the region and other small developing nations, transition to renewable energies at a more measured pace. It also offers actionable insights on sustainable financing options for upgrading the region’s CFPPs and just energy transitions. Following a balanced assessment of the facts and broad issues discussed herein including the United Nations Sustainable Development Goals 7, 10, 13, and 17; the paper concludes that most of the CFPPs in SADC are likely to remain operational way beyond the phase out deadlines despite lacking emissions abatement technologies. The pressing and burgeoning need for electricity and the huge coal reserves in the region are the determinants, rather than international norms or political correctness. However, no development institution or major country will finance any new CFPP projects in SADC, but renewable energy projects instead. Thus, national energy policymakers and power utilities in the region are recommended to revise the current energy policies to include renewable energy expansion and obliterate any mentions of proposed or planned CFPPs. SADC governments need to engage in public dissemination campaigns about the impending energy transition implications for all citizens and map out pragmatic cushioning strategies. Concurrently, they need to support innovations and entrepreneurship in renewable energies and work on improving national creditworthiness scores, to attract climate finance.

A flexible policy instrument to encourage externality abatement technologies in salmon aquaculture

Aquaculture has been identified as a food sector with potential to provide protein and essential micronutrients to a growing global population, with salmon aquaculture often viewed as a leader in innovation and adoption of new technologies. Despite a broad range of negative externalities in salmon aquaculture, sea lice infestations remain the most harmful of environmental issues within the industry. In response to these challenges and driven by the need for a higher degree of control over the production conditions, salmon producers in Norway have been investing in new technologies that are often perceived as the last resort for sea lice abatement. The challenge is to design a regulatory regime that encourages innovation toward a sustainable mix of production technologies in the future. In this paper, we propose to use feed-in tariffs (FITs), a dynamic Pigouvian subsidy, as a regulatory instrument that can promote investments in abatement technologies by the salmon farming industry. We ground our discussion of FITs for aquaculture in experiences from the renewable energy sector in Spain and Germany.

Corporate debt value under transition scenario uncertainty

AbstractWe develop a structural model for pricing a defaultable bond issued by a company subject to climate transition risk. We assume that the magnitude of the transition risk impacts depends on a transition scenario, which is initially unknown but is progressively revealed through the observation of the carbon tax trajectory. The bond price, credit spread, and optimal default/restructuring thresholds are then expressed as function of the firm's revenue level and the carbon tax. Numerical implementation of the resulting formulas is discussed and illustrated using real data. Our results show that under transition scenario uncertainty, carbon tax adjustments are more likely to trigger a default than when the true scenario is known because after each adjustment, the more environmentally stringent scenario becomes more likely. We also find that faster discovery of scenario information leads to higher credit spreads since better information allows the shareholders to optimize the timing of default, increasing the value of default option and decreasing the bond price. As an extension, we consider the situation where the company may invest into abatement technology, increasing the value of both the share price and the bond price.

Assessment of transient hydrogen sulfide peak emissions caused by biogas plant operation

Odor nuisance is a major impediment for public acceptance and wider implementation of biogas plants. Knowledge on composition and dynamics of emissions from these plants is highly needed for development of robust mitigation solutions. In this study, odorant emissions were investigated from two biogas plants of different sizes and capacities. Measurements using proton-transfer-reaction mass spectrometer (PTR-MS) revealed that hydrogen sulfide was the main odorant and constituted 82% and 71% of the odor activity sums (SOAV) at the two studied plants, respectively. Long-term time-resolved measurements furthermore revealed that emissions were highly dynamic with distinct short-term emission peaks. By deploying an array of electrochemical sensors, the main sources of hydrogen sulfide emission were subsequently identified and correlated with operational data to identify the major causes for the highly fluctuating emissions. Addition of biomasses in the form of animal slurry to pre-tanks, were shown to be the major cause of periodic hydrogen sulfide emission within the range of 50–1200 ppm. Such hydrogen sulfide peak emissions could challenge odor abatement from biogas plants and should be taken into account when designing odor abatement technologies for biogas plants.

Initial Payment and Refunding Scheme for Climate Change Mitigation and Technological Development Among Heterogeneous Countries

Abstract We examine international environmental agreements (IEAs) in which heterogeneous countries work together to not only participate in the abatement of greenhouse gas emissions but also develop breakthrough technologies. In this paper, the country with the most advanced technology (i.e. the technological leader) develops a new abatement technology and distributes it to other countries (i.e. technological laggards) through licensing. We design a new mechanism to achieve cooperation among heterogeneous countries through an initial payment and refunding (IPR) scheme and licensing involving third-party organizations (TPOs). Under our new IPR scheme with licensing, the cost incurred by a technology leader in developing new technology is covered by licensing fees using a portion of the initial payments collected from technological laggards by a TPO. As a result, TPOs sustain IEAs by flexibly adjusting technological laggards’ share of costs for licensing, comprising initial payments and refunds, and the amount of the licensing payment made to the technological leader.

To Abate, or Not to Abate? The Arising of the Win–Win Solution Under Time Consistent Emission Taxation

We analyse a model of environmental regulation where two firms can optimally decide to invest in an emission abatement technology and the regulator taxes firms’ emissions in a time-consistent manner. Depending on the values of the parameters measuring the extent of emission abatement that firms may achieve and the degree of product differentiation, we characterize the subgame perfect equilibria, developing all admissible scenarios where either both firms invest in abatement technologies, none of them do, or just one does, and show the conditions under which a win-win solution emerges, validating a strong form of Porter hypothesis. We also extend the main result to the oligopoly game with a generic number of firms.

Who will Spend more Pollution Abatement Costs: does Size Matter?

This paper looks at the relationship between enterprise size and pollution abatement costs using firm-level datasets in China, where size-dependent distortions may exist in the distribution of enterprises of different sizes. We find that the pollution abatement costs decrease with enterprise size. Compared to the smallest size, the magnitudes of marginal decreases in pollution abatement costs per 1000 CNY of industrial output in the largest size are 3.29 CNY, 0.54 CNY and 2.60 CNY for gas, SO2 and dust, respectively. Moreover, we further explore the potential mechanisms for the decrease of pollution abatement costs from three perspectives: environmental protection-related investment, regulation intensity, and technological capability. Our findings suggest that the decrease in the intensity of environmental protection-related investment for large enterprises may be directly reduce the intensity of pollution abatement costs. Although large enterprises have low intensity of pollution abatement costs, this does not mean that they are subject to weaker environmental regulation. More importantly, we find that large enterprises may have more adoption of abatement technologies. For SO2 and dust, the pollutant removal efficiency of the largest enterprises is 4.92% and 1.82% higher than that of the smallest enterprises, respectively. Our results are robust to different specifications. These findings help us enact appropriate policies for enterprises based on their size, thereby improving the efficacy of pollution abatement and achieving the optimal level of pollution abatement for the entire society.

Integrated management of abatement technology investment and resource extraction

As the need for increased renewable energy generation to meet climate goals grows, so does the demand for critical minerals in the industrial sector. This raises concerns about the availability of supply and the reliability of investment in critical minerals. Based on this, the study proposes an analytical framework for the integrated management of mineral extraction and renewable energy investments. Different from the previous strategy of separate management, this study has established an integrated model that utilizes new energy technology as the downstream application of emission reduction technology. It also utilizes copper, zinc, aluminum, rare earth elements, and other materials as the upstream raw material supply. In terms of minimizing costs, the entire supply chain process is optimized to achieve an empirical case. In addition, considering the significant uncertainty in the process of reducing emissions from new energy technologies, this study also incorporated a forward control stochastic programming method to model and solve it. We obtained confidence intervals for optimal technological investment paths and metal mining paths under various scenarios. Our findings indicate that: (1) Biomass, as a renewable energy technology with the lowest resource demand, should be prioritized for development. However, there is significant uncertainty surrounding the installed capacity of photovoltaics. (2) Copper ore reserves have little impact on the development of renewable energy technologies, while zinc ore and aluminum ore have a greater impact on wind energy and photovoltaics, respectively. (3) By optimizing the cut-off ratio of raw ore under a specific amount of ore storage, we can ensure the availability of materials needed for downstream energy technology.

Odor emission measurements: The role of n-butanol as a reference material and origins of large inter-laboratory variability

Malodors negatively impact the quality of life of people who are exposed to them. In order to enforce legal emission limit values that aim to reduce these adverse effects, reliable methods for the quantification of odor emissions are needed. The standard EN 13725 describes a method to quantify odor concentration, which is based on the use of human assessors as sensors. Previously published work that studied the performance characteristics of this method indicates that the variability of results between different laboratories is higher than expected and that the uncertainty associated with this method may be underestimated. We analyze here a unique data set, which contains the response of 368 assessors that participated in 21 odor proficiency tests performed in 2016–2022. By investigating the response of the smallest unit of an odor measurement by EN 13725, namely the individual assessor, as opposed to the panel, we gain unprecedented insight into the sources of inter-laboratory variations in odor measurements. Our results indicate that the assessor sensitivity to n-butanol is not transferable to other odorants and odor mixtures, which is contrary to the assumption made in EN 13725. By Monte-Carlo simulation coupled with our data set, we investigate how the responses of individual assessors transfer to panel responses, focusing on the influence of panel size, panel selection strategy and number of rounds. We find that for the laboratories investigated, larger panels only modestly reduce the inter-laboratory variability and we attribute this effect to non-random selection of assessors for the panels of these laboratories. The present work provides new insight into the sources of inter-laboratory variability in odor emission monitoring and is expected to be useful in the further development of reliable methods for odor concentration measurements and odor abatement technology.

Green quality choice in a duopoly

AbstractThis article considers a quantity‐setting duopoly (Cournot rivalry) in which firms adopt an abatement technology as a device to improve the quality of products. Consumer preferences capture vertical product differentiation (quality) towards “green” products. This introduces a trade‐off on the production side, as firms that do not abate, in turn, do not sustain any abatement cost but the demand for their product is low. On the contrary, firms that choose to abate incur abatement costs, but the demand for their product is high. The article aims to study and understand whether this kind of preference may lead firms to strategically invest in green technology and introduces a new, private‐based (that contrasts the well‐known public‐based) mechanism through which pollution abatement can emerge as a sub‐game perfect Nash equilibrium (SPNE) of a non‐cooperative abatement decision game with product quality and complete information. The model is developed in a parsimonious way to pinpoint the main determinants of the endogenous market outcomes ranging from an anti‐prisoner's dilemma in which self‐interest and mutual benefit of non‐abatement do not conflict to an anti‐prisoner's dilemma in which self‐interest and mutual benefit of abatement do not conflict, passing through to an anti‐coordination scenario. Additionally, the welfare analysis reveals the existence of a win‐win solution from a societal perspective. The article shows that the results obtained in the Cournot setting also hold considering a Bertrand duopoly.