Low-carbon Strategies Research Articles

Game theoretical analysis of firms’ operational low-carbon strategy under various cap-and-trade mechanisms

Abstract Governments commonly utilize various carbon emission regulations to ensure the sustainable energy consumption of firms and consequently improve the total social welfare. In this study, we apply a game theoretical model to analyze how a manufacturer's operational decisions on sustainable energy consumption and low-carbon production will be changed with the variation in official cap-and-trade policies. Results will provide the government with analytical supplements in making real-world decisions. Our findings show that the manufacturer can obtain increased incentives to upgrade its purification technology in a high low-carbon preference market compared with that in a low low-carbon preference market. Furthermore, the government should constrain the cap-and-trade policy and encourage the manufacturer to upgrade its purification technology when the consumers' low-carbon preference is relatively high. These research findings reveal that when consumers show a high low-carbon preference level, the manufacturer should make socially optimal decisions for its operations. When consumers show a moderate low-carbon preference level, a significant conflict occurs between social welfare optimization and purification technology upgrade. Thus, if a technology upgrade is necessary, then policy-based promotion to increase the consumers' low-carbon preference level is an essential factor to maximize the total social welfare.

A dynamic assessment of instrument interaction and timing alternatives in the EU low-carbon policy mix design

The European Union low-carbon strategy includes a range of complementary policies. Potential interactions between instruments and different timing of their implementation can influence the cost and likelihood of achieving the targets. We test the interactions between the three main pillars of the European Union strategy through a dynamic Computable General Equilibrium model (GDynEP) with a time horizon of 2050. Main results are: i) going for the unilateral European Union carbon mitigation target without any complementary technological policy will produce large economic losses; ii) by investing in clean energy technologies (energy efficiency and renewable energy) with a carbon tax revenue recycling mechanism, these losses will decrease substantially; iii) when complementary clean energy technology policies are implemented, the optimal timing of binding targets changes; iv) the higher the public support to clean energy technologies, the larger the economic gains in early adoption of challenging abatement targets.

Sustainable Management of Oleaginous Trees as a Source for Renewable Energy Supply and Climate Change Mitigation: A Case Study in China

Forests provide a range of ecosystem services, including bioenergy supply and carbon sequestration, both contributing to significant climate change mitigation. Oleaginous trees have potential to provide bioenergy supplies through biodiesel-producing seed yield as well as contributing to carbon sequestration. This paper aims to show the provisions of bioenergy and carbon savings through forest rotation management and it will investigate the potential of oleaginous forest management in China. We use the land expectation value (LEV) model to calculate the optimal joint values of timber, seed and total carbon savings, including carbon sequestration from forest and carbon reductions through energy substitutions. The results indicate that combining both values of seeds and carbon savings increase the LEV and rotation age (167,611 Yuan/ha, 78 years) compared to sole timber value (26,053 Yuan/ha, 55 years). The optimization of the LEVs and the resulting optimal rotation ages are significantly sensitive to the discounting rate. Annual biodiesel potential production from Pistacia chinensis can take up 1.7% of the national diesel consumption in China. We conclude that China can use improved forest rotation management as an effective means for achieving goals in its low-carbon energy strategy.

The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents

How to select subsidy strategy for government in low-carbon diffusion is discussed in this paper, considering heterogeneous agents’ behavior. Firstly, four government subsidy strategies are given, and the evolutionary game models are constructed including enterprises and consumers. Then seven diffusion scenarios are analyzed according to different initial states, and discussed in two situations, that is, when there is no fluctuation and when there is fluctuation. And then the related simulation analysis is carried out through a case of new energy vehicles diffusion, and the result shows: (1) when the percents of enterprises and consumers with low-carbon strategy and low-carbon consumption are small, the measure only using government subsidy cannot lead to the success of low-carbon diffusion, only if combined with other measures. (2) when the percents of enterprises and consumers with low-carbon strategy and low-carbon consumption both increase to a certain degree, low-carbon diffusion can be realized successfully even without government subsidy, which is true even when there is periodic fluctuation. (3) as for low-carbon diffusion, it may be better to pull the low-carbon market through the demand side than to push the low-carbon market through the supplier side. Finally, the related policy recommendations are given.

THE ROLE OF TAX INCENTIVES IN THE DEVELOPMENT OF THE GREEN ECONOMY IN MOROCCO –ANALYTICAL STUDY

With the increasing pressures on the environment as a result of the various commitments and activities that serve the economy, especially in the major industrial countries ... The concept of the green economy is beginning to emerge, and if we look at Morocco as a model for its poor and developing countries, it faces a large number of huge challenges. Poverty reduction, additional job creation, resource efficiency and energy security, low-carbon strategies for industrial development. The study aimed to highlight the role of taxes (because of its incentives both positive and negative) in the development of the green manufacturing and renewable energy sector in Morocco. The researcher used the analytical descriptive method and the appropriate statistical tests to test the validity of hypotheses and to answer the study questions The results are as follows: Taxes on goods and services in the local monetary unit and taxes on goods and services (% of value added for industry and services) affect the emissions of CO2 from the manufacturing and construction industries (% of total fuel combustion) by 79.4%. Taxes on goods and services (% of value added for industry and services) affect the share of industry in total final consumption of energy (%) by 70.7%. Tax revenues in the local monetary unit affect the total production of renewable energy sources - million tons of oil equivalent (Mtoe) by 94.2%. In light of this, the study concluded several recommendations, the most important of which are: the inclusion of environmental and social costs within the price of the product or service by tax, fee or fine or through cheaper negotiable schemes.

The Philippines energy future and low-carbon development strategies

This paper presents an assessment of alternative, long-term energy supply and low-carbon strategies for the Philippine power sector from 2014 to 2040 using TIMES model. It examines the potential contribution of renewable energy to diversify the Philippine energy supply-mix to meet future electricity demands. The reference scenario compares the impact of four alternative policy goals: (1) carbon tax, (2) targeted renewable-based power generation, (3) limited coal share in supply-mix, and (4) renewables subsidy. The reference scenario shows a significant increase of the share of coal-based power generation and import dependency of fossil-fuel increases from 227 PJ in 2016 to 1073 PJ in 2040. The model results for the alternative policy scenarios show a large potential for renewable energy-based power generation. The alternative policy options show a significant decrease of import dependency in the energy supply-mix for power generation. Most alternative policy scenarios project a higher total system cost, with the exception of the subsidy scenario. System cost increases only 2.6% in the renewables target scenario relative to the reference scenario. However, long-term benefits from investing in the alternative policy options would need to be considered, including diversification of energy supply-mix, improved energy security, and progress toward a low-carbon society.

Managing Risk Aversion for Low-Carbon Supply Chains with Emission Abatement Outsourcing.

Reducing carbon emissions, including emission abatement outsourcing at the supply-chain level, is becoming a significant but challenging problem in practice. Confronting this challenge, we therefore break down the practice to focus on a low-carbon supply chain consisting of one supplier, one manufacturer and one third-party emission-reducing contractor. The contractor offers a carbon reduction service to the manufacturer. In view of the increasing proportion of Greenhouse Gases (GHG) emissions and absence of carbon reduction policies in developing countries, we adopt the prospect of consumers’ low-carbon preferences to capture the demand sensitivity on carbon emission. By exploiting the Mean-Variance (MV) model, we develop a supply chain game model considering risk aversion. Comparing the supply chain performances of the cases under risk neutrality and risk aversion, we investigate the impact of the risk aversion of the supplier and the manufacturer on the low-carbon supply chain performances, respectively. We show that the risk aversion of chain members will not influence the relationship underlain by the profit-sharing contract between the manufacturer and contractor, whereas they may extend the supplier’s concerning range. Although the manufacturer’s risk aversion has a positive impact on the wholesale price, interestingly, the supplier’s impact on the wholesale price is negative. Furthermore, we propose a contract to coordinate the risk-averse low-carbon supply chain by tuning the aversion levels of the supplier and the manufacturer, respectively. Through numerical study, we draw on managerial insights for industrial practitioners to adopt a low carbon strategy potentially by managing the risk attitudes along the supply chain channel.

From Paris to Katowice: The EU Needs to Step Up its Game on Climate Change and Set its Own Just Transition Framework

This Policy Brief examines implications of the EU’s targets for reductions in greenhouse gas (GHG) emissions for labour markets. The brief argues that, given the enormous challenges, an equitable transition to a zero-carbon economy should be given higher priority and a clear allotment of EU financial resources. In order to fulfil the COP21 targets the EU needs to aim for 100% emission cuts by 2050 and present a credible roadmap of how to reach this. The clock is ticking: from 2020 to 2050, three times more cuts in GHG emissions are needed than was achieved in the 30 years to 2020. With a significantly greater climate policy ambition to fulfil the Paris targets, the social and employment effects of decarbonisation will be more intense in the future, affecting jobs, livelihoods, working conditions, skills and job prospects on a large scale. These labour market challenges need to be addressed by a targeted yet comprehensive policy framework, but the colossal task of decarbonising the entire economy within the next 32 years is only achievable if it happens in a balanced and fair way, leaving nobody behind. The briefing emphasises that any just transition should be an integral part of any low-carbon strategy and suggests that the EU should set out its own just transition framework and roadmap, based on the ILO guidelines but adapted to the specific challenges that exist in the European context.

Research on low-carbon strategies in supply chain with environmental regulations based on differential game

Abstract With increasing carbon emissions and relatively unfavorable climate changes, all circles of society, including consumers, governments and enterprises, are paying more attention to low-carbon production. In this study, we consider a two-echelon supply chain consisting of one manufacturer and one supplier that try to increase sustainable profits by making efforts on CO2 emission reduction in three progressive environment regulation situations using a Stackelberg differential game: (1) the market-based situation in which consumers' environmental awareness is mainly considered, (2) the government-based situation in which government intervention effect is mainly considered, and (3) the supply chain based situation in which the channel coordination effect is mainly considered. Dynamic expressions of the optimal sales price, emission reduction efforts and cost subsidy are derived from three situations with the goal of profit maximization. The results show that the emission reduction is largest with the highest efforts of the manufacturer and supplier in the supply chain based situation. The manufacturer makes increasing emission reduction efforts when consumers' environmental awareness, government intervention and channel coordination are introduced in sequence, and charges more money for low-carbon products according to the amount of emission reduction. The supplier makes more efforts only when channel coordination is introduced. Governmental regulation aimed at the final products and downstream enterprises cannot function effectively; a cost-sharing contract in the supply chain is needed to motivate the supplier to make greater emission reduction efforts. The simulations and sensitivity analyses are given to verify the effectiveness of the conclusions. Our study provides theoretical support for dynamic low-carbon production in the supply chain with environmental regulations from the market, government and operation.

Using deliberative foresight to envision a neo-carbon energy innovation ecosystem – a case study of Kenya

Foresight is a pragmatic futures studies approach as structured debate about future-related topics. Deliberative foresight addresses stakeholders affected by specific futures. This paper goes beyond a low-carbon strategy to present the potential of futures based on renewable energy. In the neo-carbon energy system, high shares of solar, wind, and other renewables are used, and carbon dioxide from the air is used as a source for synthetic products such as plastics, chemicals and medicine. As transitions are about technological and social change, a neo-carbon energy innovation ecosystem, consisting of actors at multiple levels, is envisioned. To represent the present ‘direction’ of Kenya's energy transition, four renewable energy approaches and projects are examined. A conceptual model, which consists of deliberative foresight, innovation ecosystems thinking, transformative potential and sustainability, is then introduced. To study emerging energy transformations, historical assumptions and conventional approaches to development and scenario-making need to be challenged. This paper claims that deliberative foresight and a systemic approach to innovation can enable African countries to examine how their economies and energy systems can be transformed into emissions-free, efficient, low-cost, and sustainable. Our approach emphasizes inclusive innovation, broad-based socio-economic benefits, and minimizing environmental harm.

Low-carbon strategies towards 2050: Comparing ex-ante policy evaluation studies and national planning processes in Europe

The European Union (EU) is committed to reducing its greenhouse gas (GHG) emission levels by 80%–95% in 2050 compared to 1990 levels. Various approaches have been developed to secure and evaluate the progress made towards this objective. To gain insights into how EU Member States are aligning to this collective long-term objective, we systematically compare the planning and ex-ante evaluation processes for five EU countries (respectively Denmark, France, Germany, the Netherlands and the United Kingdom). The comparative analysis consists of a qualitative comparison of (1) the governance of long-term policy planning and evaluation processes, (2) the national arrangement for quantitative (model-based) ex-ante policy evaluation and (3) the national arrangement for qualitative ex-ante policy evaluation (stakeholder participation). In a second step we conduct a quantitative comparison of national model-based ex-ante evaluation studies to assess the relative differences between the considered routes and the differences across the various countries. Although the five Member States plan policies along the same EU objective, we find a high diversity in how long-term commitments are established, governed and evaluated on the national level. Model-based scenario analyses are commonly used to explore and evaluate the possible national routes towards the EU 2050 objective. However, as these processes mostly concentrate on domestic action, they pay little attention to how domestic policies are affected by, or affecting, other international activities throughout Europe. Hence, current findings suggest that cross-border collaboration and stakeholder participation could further strengthen the analytical understanding of required transformative change in Europe and subsequently lead to a more durable long-term solution over time.

CO2 emission data for Chinese cities

Greenhouse gas (GHG) emission inventories and basic data sources for energy consumption in cities are important for the mitigation of carbon emissions and the development of low-carbon strategies. However, recent IPCC reports and other studies have highlighted significant data gaps in the place-based literature for cities’ carbon emissions and their drivers. In the last few years, literature related to cities’ carbon emissions in China has grown rapidly. This study reviews the literature on city-level carbon emissions in China and examines the emission estimates. A detailed literature search, a regression analysis, and an inductive analysis of city carbon emission data were conducted. Our findings showed that approximately 45% of prefecture-level cities have emission estimates with different levels. The CO2 emission data available for prefecture-level cities are scarce. The methodologies, sectoral coverage, and other aspects of the estimates are limited. The energy-related carbon emissions of the cities differ significantly across city typologies in China. The values of Intensity of Concern (IC) and Clustering Intensity (CI) are spatially aggregated, with the highest values in eastern China, middle values in the central area, and lowest values in western China. There are significant differences and gaps in the carbon emissions inventories and capabilities of low-carbon development in Chinese cities. A number of advanced cities could act as model cities for data collection, and reliable basic data sources could be provided for low-carbon development by perfecting the nation’s carbon emissions accounting system, the statistical system, and shared mechanisms.

Low Carbon Strategy Analysis of Competing Supply Chains with Different Power Structures

This paper investigates the emission reduction performance for supply chain members in both single-channel and exclusive dual-channel cases. Two game scenarios (Manufacturer Stackelberg and Retailer Stackelberg) are examined under different channel structures. Furthermore, we introduce government subsidies as an impact factor of low-carbon strategy adoption. In the single-channel (Case 1), we mainly examine the influence of consumers’ price-sensitivity on channel members’ optimal decisions. In the dual-channel (Case 2), we focus on the joint impact of product substitutability and different channel power structures on the optimal decisions under asymmetric related channel status. The analysis suggests that the Stackelberg leaders always perform better than their corresponding followers before emission reduction, while they may not necessarily yield more benefits after emission reduction. The implementation of low-carbon strategy depends on parameters like product substitutability and channel base demand. Finally, all the supply chain members will encounter a Prisoner’s Dilemma when the product substitutability is relatively high.

Low-carbon development strategy for the West African electricity system: preliminary assessment using System dynamics approach

BackgroundPolicy makers seek to understand the trade-offs needed between economic growth and climate change. This provides the context to explore low-carbon development (LCD) pathways for the West African electricity system.MethodsThe study relied on both primary and secondary sources to elicit required information. These data were elicited from relevant authorities in the West African electricity system, namely, West African Power Pool and ECOWAS Regional Electricity Regulatory Authority. The objectives were to evaluate the planning processes in the West African Power Pool electricity system vis-a-vis low-carbon development strategy (LCDS), develop a System dynamics (SD) model, and assess the relevance of the developed model to examine the nonlinear relationship between generation adequacy and greenhouse gas emission (GHG) reduction. The SD model examined the tension between providing adequate supply capacity against reducing emission from the generation technologies in the West Africa electricity system. This model arranged the complexities in the system and established the basic interconnecting structure to conduct the analysis. High leverage points were identified.ResultsFour high leverage points were identified: capacity factor (CF), emission factor (EF), time to adjust capacity, and expectation formation. CF and EF improvement increased efficiency in the system. The expectation formation periods were determined at 7.5 years for the base case scenario and 7 years for the low-carbon development option scenario. Time to adjust capacity was located at 21 and 20 years respectively; deduced from the average time, it will take to construct a combined cycle gas power plant (3 years) and an allowance of 2 years for delays and its decommissioning time. Between 2011 and 2012, in LCD option scenario, emission of GHG to the atmosphere dropped as generation did but began a steady rise for the simulation period to a value of 6.154 billion tCO2 in 2060.ConclusionsElectricity Planning-Low-Carbon Development (EP-LCD) model—with three modules, was developed for assessing WAPP in low carbon economy. High leverage points identified in the model simulation situate three policy options for overcoming poverty and mitigation targets as regards resource mix, investment cost recovery, and technical factors to reduce system’s environmental footprint.

Japan’s Low Carbon Strategy for Nuclear Energy in Climate Change Negotiation : Focusing on Regime Complex Theory

Japan’s Low Carbon Strategy for Nuclear Energy in Climate Change Negotiation : Focusing on Regime Complex Theory

Energy consumption and low carbon development strategies of three global cities in Asian developing countries

With the rise of Asia in the global economy, it is important for developing countries in Asia to break away from energy and resource intensive growth models and explore low carbon pathways. In this process, urban energy policies are crucial and pioneering cities should play a leading role. The change in energy consumption patterns in three cities, i.e., Beijing, Shanghai, and Bangkok, was studied, and these cities' low carbon development strategies were reviewed. It was found that total energy consumption in the three cities has shown a tendency towards being stable or even started to decrease. The energy consumption by industry has started to decrease or stopped increasing. Service sectors became the most important energy consumers in all three cities, particularly the transport sector in Bangkok. Household energy consumption gradually increased in Beijing and Shanghai. Electricity use at home and energy for vehicles are becoming more important with urbanization and changes in lifestyles. All three cities have adopted a variety of low carbon development strategies, such as transition towards a lower carbon economy, developing a low carbon transportation system, and adopting cleaner and renewable substitutes for electricity to disengage from the dependency on coal and petroleum products. However, most low carbon strategies have focused on industrial and service sectors. Those cities should also explore and lead more sustainable lifestyles, which are important for system-wide energy savings.

Integrated Territorial Investments in the Formula of Cohesion Policy 2014 - 2020

Abstract Subject and purpose of work: EU regional policy aims to increase the economic and social cohesion of the Member States. For the programming period of 2014 - 2020 a new tool has been planned, which will contribute to the effective implementation of the cohesion policy - Integrated Territorial Investment (ITI). The aim of this article is to determine whether the direction of measures arising from the assumptions of the cohesion policy 2014 - 2020, implemented in the ITI strategy, addresses actual problems in the area covered by the ITI strategy (on the example of Kalisz-Ostrów Agglomeration - KOA). Materials and methods: The study was based on the analysis and synthesis of EU and Polish regulatory provisions on the cohesion policy 2014 - 2020, data on financial allocation for the implementation of the ITI and literature on the subject of EU regional policy. Results: The direction of measures arising from the assumptions of the cohesion policy 2014 - 2020 in the ITI strategy addresses real problems in the development of the area covered by the KOA strategy. EU funds have been planned for: promoting entrepreneurship; promoting low-carbon strategies; the development of an educated society and investments in modern infrastructure. Conclusions: Solving the problems of the areas covered by the ITI strategy will depend on the realization of the development goals. Therefore, the synergy of conditions associated with the transformation of the postulated stage into the executive stage of the cohesion policy under ITI is necessary. This synergy is associated with both the quality of human capital and the amount of financial resources as well as the competences of those involved in the implementation of the ITI concept.

Engaging with environmental stakeholders: Routes to building environmental capabilities in the context of the low carbon economy

AbstractThe transition to a low carbon economy demands new strategies to enable organizations to take advantage of the potential for “green” growth. An organization's environmental stakeholders can provide opportunities for growth and support the success of its low carbon strategies, as well as potentially acting as a constraint on new initiatives. Building environmental capabilities through engagement with environmental stakeholders is conceptualized as an important aspect for the success of organizational low carbon strategies. We examine capability building across a range of sectors affected by the sustainability agenda, including construction, rail, water, and health care. We identify a number of emergent environmental stakeholders and explore their engagement with the development of environmental capabilities in the context of the transition toward a low carbon economy. Our conceptual framework offers a categorization of environmental stakeholders based on their position in relation to a focal organization and the potential for the development of environmental capabilities.

Exploring an integrated urban carbon dioxide (CO2) emission model and mitigation plan for new cities

Mitigating carbon emission efforts in urban planning and design phase have become increasingly popular due to climate change. However, it is difficult to verify whether the carbon mitigation target could be achieved for a new city in the absence of quantitative analysis methods. About 100 new cities have emerged every year in the past decades, yet few of them employed low carbon strategies within proper prediction methods. In response, this paper offers an integrated analysis method of assessment and mitigation for urban carbon dioxide (CO2) of new cities. Building sector, transportation sector, and green land sector are considered as urban CO2 sources and sink. Life cycle analysis was employed in building sector to estimate its emissions. Based on the current and predicted emission data, a mitigation goal was then set and allocated efficiently through different sectors. To elaborate on this process, a case study of Shanghai Lingang New City was presented. The urban low carbon roadmap was planned and a variety of recommendations concerning policy were offered to assist the local government and policy makers in order to achieve the low carbon development goal as well.

The Secondary Battery Product and Enterprise’s Carbon Footprint Under the Low Carbon Strategy

In recent years, more and more secondary battery are used in industry and daily life, nevertheless, extensive use of secondary battery will bring some impact to the environment such as greenhouse effects, soil pollution and water pollution. Only seeing the integral situation of secondary battery in China and implementing the low carbon strategy by the secondary battery enterprises as soon as possible, can we improve the secondary battery’s environmental impact and better realize the sustainable development. In this paper, we research the carbon footprint of lithium ion secondary battery based on PAS2050 ‘Specification for the assessment of the life cycle greenhouse gas emissions of goods and services’ and select a lithium ion battery project with the annual output of 30 million in company A, calculate carbon emissions of every phase, we conclude that main phase of carbon emissions is still production phase and the proportion is extremely large. In the same time, we also describe the production of the lithium ion battery of our country on a macro level and evaluate the enterprise's carbon footprint to improve the environment effectively. In the end, the paper analyzes the existing low carbon policies in our country and put forward some relevant countermeasures for energy conservation and emissions reduction.