DOCSLIB.ORG

Personal Carbon Trading As a Potential Policy Instrument to Reduce Swedish Greenhouse Gas Emissions

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Personal Carbon Trading As a Potential Policy Instrument to Reduce Swedish Greenhouse Gas Emissions SEI - Africa Institute of Resource Assessment University of Dar es Salaam P.O. Box 35097, Dar es Salaam Tanzania Tel: +255-(0)766079061 SEI - Asia 15th Floor, Witthyakit Building 254 Chulalongkorn University Chulalongkorn Soi 64 Phyathai Road, Pathumwan Bangkok 10330 Thailand Tel+(66) 22514415 Stockholm Environment Institute, Working Paper - 2010 SEI - Oxford Suite 193 266 Banbury Road, Oxford, OX2 7DL UK Tel+44 1865 426316 SEI - Stockholm Kräftriket 2B SE -106 91 Stockholm Sweden Tel+46 8 674 7070 SEI - Tallinn Lai 34, Box 160 EE-10502, Tallinn Estonia Tel+372 6 276 100 SEI - U.S. 11 Curtis Avenue Somerville, MA 02144 USA Tel+1 617 627-3786 SEI - York University of York Heslington York YO10 5DD UK Tel+44 1904 43 2897 The Stockholm Environment Institute Personal Carbon Trading as a Potential Policy Instrument SEI is an independent, international research institute. It has been to Reduce Swedish Greenhouse Gas Emissions engaged in environment and development issues at local, national, regional and global policy levels for more than a quarter of a century. SEI supports decision making for sustainable development by bridging science and policy. Annika Varnäs, Björn Nykvist, Åsa Persson and Vanessa Rauland sei-international.org Personal Carbon Trading as a Potential Policy Instrument to Reduce Swedish Greenhouse Gas Emissions Annika Varnäs, Björn Nykvist, Åsa Persson and Vanessa Rauland Stockholm Environment Institute Kräftriket 2B SE 106 91 Stockholm Sweden Tel: +46 8 674 7070 Fax: +46 8 674 7020 Web: www.sei-international.org Head of Communications: Robert Watt Publications Manager: Erik Willis Layout: Richard Clay Cover Photo: © Andreas Nilsson This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes, without special per- mission from the copyright holder(s) provided acknowledgement of the source is made. No use of this publication may be made for resale or other commercial purpose, without the written permission of the copyright holder(s). Copyright © October 2010 by Stockholm Environment Institute Contents List of abbreviations iv Acknowledgements iv Summary v 1 Introduction 1 2 A consumption perspective on GHG emissions 3 3 Introduction to PCT and review of PCT schemes 5 Downstream PCT schemes 6 Upstream and hybrid carbon trading schemes 8 Concluding remarks 9 4 Assessing the effectiveness, efficiency and equity of PCT 10 Effectiveness 11 Efficiency 13 Equity 14 Concluding remarks 15 5 Overview of Swedish GHG emissions 17 Trends in Swedish GHG emissions 18 Sweden’s emission targets 19 Swedish emissions from a consumption perspective 20 6 Review of Swedish climate policy instruments and their potential effects 21 Taxes 21 Trading systems 21 Subsidies 24 Regulatory instruments 24 Assessment of the current policy instrument mix 24 7 Discussion and conclusions 26 Targeting Swedish emissions from housing 26 PCT as a way to address emissions from transport in Sweden 26 Influencing indirect consumer emissions from food and consumables 27 Limiting fossil fuel intensive consumption 27 Concluding summary 27 References 29 List of AbbreviationS CO2 Carbon dioxide DTQ Domestic Tradable Quotas EU ETS European Union Emissions Trading Scheme GHG Greenhouse gas HFC Hydrofluorocarbon IPCC Intergovernmental Panel on Climate Change ISO International Organisation for Standardisation MWh Megawatt hour N2O Nitrous oxide OECD Organisation for Economic Cooperation and Development PCA Personal Carbon Allowances PCT Personal carbon trading PFC Perfluorocarbon RAPS Rate All Products and Services SF6 Sulfur hexafluoride TEQ Tradable Energy Quotas UK United Kingdom UNFCCC United Nations Framework Convention on Climate Change ACknowledgemEnts This working paper is published as part of an internal SEI project. The authors would like to thank Professor Katarina Eckerberg for reviewing the working paper and for providing valuable feedback throughout the work. iv Summary The importance of household consumption as a contributor to greenhouse gas (GHG) emissions has lately been emphasised in Sweden. It has for example been pointed out that emissions from Swedish consumption are around 25 per cent higher than those caused by production in the country. Linked to this debate, the interest for policies targeting consumption is also growing. Personal carbon trading (PCT) is one such proposed policy instrument, where GHG emissions from household consumption would be limited by an overall emissions cap. Citizens would achieve emissions allowances which could either be sold in the trading system or surrendered when purchasing fossil fuels or possibly other products, depending on the scope of the scheme. While PCT has been discussed and analysed in the United Kingdom (UK), it has been less investigated in the Swedish context. This working paper explores the idea of PCT and assesses its potential for reducing GHG emissions caused by household consumption, specifically in Sweden. The main PCT proposals to date are reviewed, and the effective- ness, efficiency and equity of PCT are assessed. To analyse the potential role for PCT in Sweden, the paper further reviews the sources of Swedish GHG emissions and the current policies to combat these emissions. The findings suggest that, given the expected costs linked to PCT, the existing set of Swed- ish policies, as well as the sources for heating and electricity supply in Sweden, a PCT scheme similar to those suggested in the UK would not be an efficient approach to reduce GHG emissions in Sweden. However, PCT-like suggestions as an attempt to address emissions embedded in supply chains or to distribute mitigation burdens between countries could be further explored. v vi Stockholm Environment Institute 1 IntroDuction Voices arguing for a stronger consumption perspective within international and national climate policy are increasingly heard in the policy debate. It has been suggested that, in the very long run, equal per capita carbon dioxide (CO2) emission rights within nations and across the globe is the only fair and justifiable alternative (e.g. Wicke et al. 2010). Not only does this reflect the call for equity between developed and developing countries, but also the need to shift the focus from emissions arising from production to emissions caused by individual consumption. Our lifestyles and individual choices are what ultimately drive the world economy and give rise to the emissions. The need for a consumption, rather than production, perspective in climate policy has also been emphasised by for example China, which is a large net exporter of CO2 emissions (Hallding et al. 2009). However, such a shift represents a significant paradigm shift in international, as well as national, climate politics and discussions have only just started. A concrete policy instrument that has been proposed to start translating the consumption perspec- tive into practice is personal carbon trading (PCT), which would target the emissions of CO2 caused by individuals. A PCT scheme would resemble production-oriented emission trading schemes, such as the European Union Emissions Trading Scheme (EU ETS), but apply to individuals instead of compa- nies. The basic idea of a PCT scheme is that an overall emissions cap would be set according to some principle for the relevant jurisdiction, and the rights, or allowances, to emit CO2 would be divided across the population. Emission allowances would be tradable, so that people who consume less than their allowance could sell their surplus to others and those who emit more would purchase emission allowances, at market prices. The overall emissions cap would be set by an independent body, and could be decreased gradually to meet the emission targets. To date, PCT schemes have mainly been debated and assessed in the United Kingdom (UK) and Ire- land. The concept has received attention as an instrument which offers several advantages compared to the existing repertoire of climate policy instruments. First, it potentially offers certainty in emission reductions, by specifying an overall emission cap, as compared with CO2 taxes with more uncertain effects on emissions. This means that international and national emission targets could theoretically be more easily complied with since annual carbon budgets could be calculated. Second, by targeting individuals directly in a very visible and tangible way, it could more easily lead to changes in personal consumption behaviour than with more indirect instruments. If near zero emission targets are to be fulfilled in the long term, not only increased efficiency and technological improvements are needed but also changes in personal behaviour. Third, it has been seen as an equitable instrument, at several levels. Within the jurisdiction where it applies, citizens would obtain equal allowances (unless some other principle applies) regardless of income and purchasing power. By allowing for trading, individu- als could also opt to increase their incomes by reducing emissions and selling surplus allowances. Globally, the adoption of a PCT in a country could mean that a consumption perspective on emissions is approached, if the allowances would not consider whether CO2 was emitted domestically or abroad in the production of the consumed good or service, in a scheme where also goods and services were included. This is considered more fair by many. However, at the same time, PCT schemes are associated with several critical disadvantages, which means that the political will and interest to adopt them is currently limited.
Load more

Recommended publications
  • Using Cap and Share to Control Emissions from the EU Transport Sector
    Using Cap and Share to control emissions from the EU transport sector Executive Summary. Cap and Share is a cap and trade system in which tradable rights to whatever is being capped are distributed on an equal-per-person basis to every adult in the general population rather than being auctioned or being grandfathered (given) to existing users. Because those receiving the rights under C&S sell them within a year of receipt, it automatically compensates the least-well- off in society for the price rises that the shortages brought about by the imposition of the cap inevitably generate. This fairness and built-in fiscal neutrality make it a more politically acceptable way to control emissions than other allocation methods. Carbon dioxide emissions from all forms of transport apart from rail are rising within the EU at a time when those from other sectors are falling. Within the transport sector, emissions from road vehicles are rising most rapidly in absolute terms. However, the EU emissions trading system is unsuited to controlling them because of the way it was designed. As only aviation and marine emissions can be taken into the ETS with reasonable ease, this is what the Commission is proposing to do. This paper argues that capping some transport emissions and not others would be a serious mistake because the various transport modes are in competition with each other. Not only would the Commission's proposals distort competition between the modes but, because of the short-term inelasticity of the demand for transport, they are unlikely to cause total transport emissions to fall.
    [Show full text]
  • Personal Carbon Allowances Revisited
    PERSPECTIVE https://doi.org/10.1038/s41893-021-00756-w Personal carbon allowances revisited Francesco Fuso Nerini 1 ✉ , Tina Fawcett2, Yael Parag 3 and Paul Ekins4 Here we discuss how personal carbon allowances (PCAs) could play a role in achieving ambitious climate mitigation targets. We argue that recent advances in AI for sustainable development, together with the need for a low-carbon recovery from the COVID-19 crisis, open a new window of opportunity for PCAs. Furthermore, we present design principles based on the Sustainable Development Goals for the future adoption of PCAs. We conclude that PCAs could be trialled in selected climate-conscious technologically advanced countries, mindful of potential issues around integration into the current policy mix, privacy concerns and distributional impacts. limate change could undermine the achievement of at were proposed to be sold by individuals via banks and post offices to least 72 Targets across the Sustainable Development Goals fossil fuel companies11. In California, household carbon trading was C(SDGs)1. The development of a just and equitable transition proposed for household energy, and managed by the utilities12. In to a net-zero society is vital to avoiding the worst impacts of climate France, centrally managed tradable transport carbon permits were change1. However, by May 2021, Climate Action Tracker2 estimated assessed related to private transport13. Scholars from the University that climate policies implemented across the world at present, of Groningen have proposed European Union (EU)-wide emis- including the effect of the pandemic, will lead to a temperature rise sions trading for households and transport, embedded in the EU of 2.9 °C by the end of the century.
    [Show full text]
  • FEASTA Submission to …
    Submission of Evidence to the ERFA Committee’s examination of international climate policy post-2012 Executive Summary ● There is an urgent need for climate action but the UNFCCC process is moving at a snail's pace. It has become a Gordian Knot of complexity. A simpler process could cut through the knot and lead to a climate treaty being achieved in a relatively short period. ● The overall goals of the process need to be established. If these can be kept simple, it is much easier for competing schemes to be compared and for existing schemes such as the EU ETS to be used to achieve them. ● Simple schemes are also the easiest to explain and communicate. So far, the public has been unable to follow the UNFCCC process because it is just too involved. ● Equitable schemes are the hardest to oppose and so have the greatest chance of success. ● The ideal climate proposal should therefore be simple and equitable. A simple and equitable scheme is proposed in this paper. This is Cap and Share, a development of the well-known Contraction and Convergence approach. 1.Introduction 1.1 FEASTA is the Foundation for the Economics of Sustainability. It is based in Dublin and has an international membership (see www.feasta.org). Our evidence here relates mainly to items 1, 3 and 7 in the EFRA Committee’s list of issues in its Call for Evidence. 2. Background 2.1 There is a clear consensus that there is an urgent need to take effective action to limit the extent of climate change.
    [Show full text]
  • Oriental Despotism. a Comparative Study of Total Power. New Haven: Yale University Press
    credo – economic beliefs in a world in crisis Wittfogel, K. A. (1957). Oriental Despotism. A Comparative Study of Total Power. New Haven: Yale University Press. Index Wkipedia. (2013, August). Kaldor-Hicks Efficiency. Retrieved December 29th, 2013, from Wkipedia: Abatement cost conceived of like an insurance premium, 381 Australian aboriginal people, 118, 129, 131 https://en.wikipedia.org/wiki/Kaldor%E2%80%93Hicks_efficiency Aborigines and land care, 118-131 Austrian economists, 64, 176, 296, 312, 314 Adaptation level, 53 Austrian school, 311 WorkingGroup1. (2013). IPCC Process. Retrieved January 3rd, 2014, from Inter-governmental Panel on Advertisers, 71, 75-76 Authenticity, 80, 83, 354 Climate Change: http://www.climatechange2013.org/ipcc-process/ Advertising, 73-77, 79-80, 88, 97, 237, 301, 351 Autistic economics, 54, 435 Xenophon, & Dakyns(Tr), H. H. (2013, January). The Economist. Retrieved December 31st, 2013, from Affluenza, 80, 83-84, 95, 420, 444 Autonomy, 12, 124, 234, 321, 437 Project Gutenberg: http://www.gutenberg.org/files/1173/1173-h/1173-h.htm Age of Commerce, 29-30, 122, 127, 152 Autopoiesis, 124 Agricultural policy, 157 ‘Bads’ and goods, 414 Yan, K. (2012, February 2nd). The Global CDM Hydro Hall of Shame. Retrieved January 3rd, 2014, from China, 15, 23, 79, 157-158, 195, 198, 226, 291, 297, 379, 440 Banks, 99, 173, 230, 289, 291, 293, 315, 325, 328, 331, 335-337, 339-340, 343-344, 346, 352-354, 356-360, 362-363, 366 International Rivers: http://www.internationalrivers.org/blogs/246/the-global-cdm-hydro-hall-of-shame Ming sheng, 157 Bank credit creation, 173, 335, 339 Mughal India, 157 Bank reform, 354-365 Young, R., Cowe, A., Nunan, C., Harvey, J., & Mason, L.
    [Show full text]
  • Climate Curriculum Learning Outcomes NOV19.Indd
    CLIMATE What should young people know about 1 13 ACTION The Big Ideas: Climate Action by the time they leave school? Climate Curriculum Learning Outcomes KEY IDEAS SCIENTIFIC BACKGROUND By the end of Year 2: By the end of Year 4: By the end of Year 6: By the end of Year 9: By the end of Year 11: → Pupils understand that → Pupils understand that → Pupils can clearly → Students can clearly explain → Students can name a range of some human activity burning coal, oil and articulate the link the scientific consensus that greenhouse gases and describe in causes pollution in the gas has an impact on between burning human burning of fossil fuels is detail the processes that lead to air which is affecting the the climate and have a fossil fuels and the main and original cause of their increasing concentrations in world’s climate / making basic understanding of climate change using today’s climate change the atmosphere the world hotter the scientific processes appropriate scientific Students can describe Students know where uncertainties involved vocabulary → → → Pupils understand the processes that undermine or remain in climate science, e.g. how distinction between → Pupils are familiar with → Pupils can name key boost carbon sinks atmospheric water vapour will ‘weather’ and ‘climate’ the terms ‘atmosphere’, carbon sinks such as change; when tipping points may Students are aware that in ‘Climate Change’ forests, peatlands, → be reached; climate inertia; how Pupils know that the the public arena there are → and ‘greenhouse gas oceans, algal blooms,
    [Show full text]
  • Personal Carbon Trading: a Review of Research Evidence and Real-World Experience of a Radical Idea
    Energy and Emission Control Technologies Dovepress open access to scientific and medical research Open Access Full Text Article REVIEW Personal carbon trading: a review of research evidence and real-world experience of a radical idea Yael Parag1 Abstract: Personal carbon trading (PCT) is a radical and innovative mitigation approach for Tina Fawcett2 the residential and personal transport sectors. PCT is an umbrella term for various downstream cap-and-trade policies, all of which aim to limit carbon emissions within a society by engag- 1School of Sustainability, The Interdisciplinary Center, Herzliya, ing individuals in the process, and could cover more than 40% of national carbon emissions. Israel; 2Environmental Change This policy idea is unique because it provides an overarching approach to personal emissions Institute, Oxford University Centre for the Environment, Oxford, UK from energy use and because it combines a number of mechanisms to drive behavior change: economic, psychological, and social. This paper presents a review of research evidence and real-world experience of PCT. Most of the political interest, research, and experimentation with PCT has taken place in the UK. During 2006–2008, the UK government commissioned a number of studies on PCT, following high-level political interest. It concluded that public acceptability and the cost of the scheme were serious barriers to its introduction. However, a variety of other research work has subsequently demonstrated that public acceptability may not be such a barrier as feared. Nevertheless, there are a number of other barriers, including costs and technical challenges, some adverse distributional effects, and the low carbon capa- bilities of citizens.
    [Show full text]
  • Climate Crisis: Social Science Crisis
    Climate Crisis: Social Science Crisis [a chapter for Der Klimawandel: Sozialwissenschaftliche Perspektiven , VS-Verlag, forthcoming] Larry Lohmann The Corner House Introduction “Billions wasted on UN climate programme” (Vidal 2008). “European Union’s efforts to tackle climate change a failure” (Snow 2007). “Effort to curtail emissions in turmoil” (Ball 2008a). “. may slow the changes needed to cope with global warming” (Kanter 2007). “It isn’t working” (Vencat 2007). “Not effective” (Wheelan 2007). “A charade” (Wall Street Journal 2007). “Will such systems ever work?” (Kanter 2008). “Time to ditch Kyoto” (Prins and Rayner 2007). “Beware the carbon cowboys” (Harvey 2007). Such headlines may seem alarming. But they are becoming more and more commonplace, and reflect rising concern – even among many supporters of the Kyoto Protocol, the European Union Emissions Trading Scheme (EU ETS), and other flagship programmes to curb climate change – that, after 10 grueling years of seemingly earnest global efforts, things are not going according to plan. Whether or not current international climate agreements turn out in the end to be fixable, it is obvious that they have not worked so far in alleviating what US President George W. Bush refers to as the “addiction to fossil fuels” that is chiefly responsible for global warming. The headlines also point to serious gaps in the explanations most often offered for the failures of global climate policy. These explanations tend to stress a number of factors. Shorter-term political issues are said to be taking precedence over climate change. Fossil fuel-using lobbies are strong. The international legal regime is weak. Distrustful Southern governments are unlikely to buy into global solutions that appear to perpetuate colonialist inequalities (Roberts and Parks 2007).
    [Show full text]
  • Quarterly Economic Commentary
    RESEARCH SERIES NUMBER 4 OCTOBER 2008 BUDGET PERSPECTIVES 2009 Tim Callan (ed.) Ray Barrell, Alan Barrett, Noel Casserly, Frank Convery, Jean Goggin, Ide Kearney, Simon Kirby, Pete Lunn, Martin O’Brien, Lisa Ryan Copies of this paper may be obtained from The Economic and Social Research Institute (Limited Company No. 18269). Registered Office: Whitaker Square, Sir John Rogerson’s Quay, Dublin 2. www.esri.ie Price €15.00 (Special rate for students, €7.50) Tim Callan is Research Professor, Alan Barrett is Senior Research Officer, Ide Kearney is Research Associate, Pete Lunn is Post Doctoral Fellow, Martin O’Brien and Jean Goggin are Research Assistants at the Economic and Social Research Institute (ESRI). Ray Barrell is Senior Research Fellow, Simon Kirby is Research Fellow at the National Institute of Economic and Social Research (NIESR), London. Noel Casserly is Director, Comhar, Lisa Ryan is Director of Research, Comhar - the Sustainable Development Council. Frank Convery is Professor of Environmental Studies at University College Dublin. These papers have been accepted for publication by the Institute, which does not itself take institutional policy positions. Accordingly, the authors are solely responsible for the content and the views expressed. RESEARCH SERIES NUMBER 4 OCTOBER 2008 BUDGET PERSPECTIVES 2009 Tim Callan (ed.) Ray Barrell, Alan Barrett, Noel Casserly, Frank Convery, Jean Goggin, Ide Kearney, Simon Kirby, Pete Lunn, Martin O’Brien, Lisa Ryan © THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE DUBLIN, 2008 ISBN 0 7070 0273 7 ACKNOWLEDGEMENTS Thanks are due to the referees and to research staff at the ESRI for comments which have helped to improve the papers included in this volume.
    [Show full text]
  • Feasta Annual Report 2016
    The Foundation for the Economics of Sustainability Annual Report 2016 " Feasta, the Foundation for the Economics ofSustainability, aims to identify the characteristics (economic, cultural and environmental) ofa truly sustainable so- ciety, articulate how the necessary transition can be effected, and promote the implementation ofthe measures required for this purpose. Cad a dhéanfaimid feasta gan adhmad? Tá deireadh na gcoillte ar lár What will we do in the future without wood? The end ofthe forests has come " Contents Introduction 1 Climate Group 2 Water/Water Commoning 4 Currency Group 5 Beyond GDP: New Approaches to Measuring Well-Being 6 Risk-Resilience 7 Fundraising 7 Networking 8 Training and Capacity Building 8 Events 9 Website 10 Submissions 12 Environmental Pillar 12 Staff and Management 13 " Introduction ur times require a fundamental change in the rela- An economy is a system nested within a human social system O tionship of humans to the earth and with each oth- and both in turn are nested within natural systems, on which er. We are all part of this planet and its health and our we depend completely for our well being. We need to have well being are inextricably linked. The pursuit of short- constantly evolving conversations in society about what the term, indiscriminate economic growth, pushed by the overall goals for our society are and how economy can serve needs of a capitalist, privatized money system, has them. The absolute reality is that we need to contain our eco- wrought huge damage on individuals, societies and the nomies and the kinds of work we do within them, within eco- ecosystems that provide the resources essential to life.
    [Show full text]
  • Frameworks & Proposals
    NO. 30⏐ JUNE 2007⏐ ENGLISH VERSION Frameworks & Proposals A Brief, Adequacy and Equity-Based Evaluation of Some Prominent Climate Policy Frameworks and Proposals By PAUL BAER & TOM ATHANASIOU (ECOEQUITY) Contents 1 Foreword 2 Introduction 3 A Normative Approach to Analyzing Adequacy & Equity 4 Contraction and Convergence 5 The Climate Action Network’s “Viable Framework for Preventing Dangerous Climate Change” 6 The South-North Dialogue’s “Equity in the Greenhouse” Proposal 7 Greenhouse Development Rights 8 The Vattenfall Proposal 9 The Global Climate Certificate System 10 By Way of Conclusion Paul Baer: [email protected] Tom Athanasiou: [email protected] EcoEquity – 1514 Beverly Place – Albany CA, 94705 USA – www.ecoequity.org Global Issue Papers, No. 30 Frameworks & Proposals A Brief, Adequacy and Equity-Based Evaluation of Some Prominent Climate Policy Frameworks and Proposals. By Paul Baer & Tom Athanasiou Commissioned by the Heinrich Boell Foundation © Heinrich Böll Foundation 2007 All Rights reserved Heinrich Böll Foundation – Rosenthalerstr. 40/41 – 10178 Berlin – www.boell.de 2 Table of contents 1 Foreword 5 2 Introduction 7 3 A Normative Approach to Analyzing Adequacy & Equity 10 4 Contraction and Convergence 14 4.1 Key Elements 14 4.2 Environmental Adequacy 14 4.3 Developmental Equity 15 4.3.1 Explicit equity principles 15 4.3.2 Protection of the “right to development” 15 4.3.3 Behavior under stringent targets 15 4.3.4 Other equity issues: The population question 16 4.4 Adaptation 16 4.5 Prospects for Modification 16 4.6 Evaluation
    [Show full text]
  • Feasta Cap and Share Report on South Africa
    Potential Impacts of a Global Cap and Share Scheme on South Africa JEREMY WAKEFORD RESEARCH DIRECTOR, SOUTH AFRICAN NEW ECONOMICS (SANE) NETWORK September 2008 Feasta, 14 St. Stephen’s Green, Dublin 2. Ireland Tel: +353 (0)1 6619572 • Email: [email protected] • Web: www.feasta.org SA FeastaReport.S_F.indd 1 3/12/08 18:11:44 Potential Impacts of a Global Cap and Share Scheme on South Africa CONTENTS 1 INTRODUCTION 1 1.1 Overview of the Cap & Share scheme 1 1.2 Aims of the study 1 1.3 Scope 2 1.4 Assumptions 2 1.5 Methodology 2 1.6 Data 2 2 South African Background 3 2.1 Energy supply and consumption 3 2.2 CO2 emissions 3 2.3 Socio-economic context 4 3 Impact on Prices 5 3.1 Energy prices 5 3.2 Direct impact on the consumer price index 6 3.3 Indirect price effects 6 3.4 Sensitivity of price effects to initial prices and assumptions 8 4 Impact on the Macroeconomy 8 4.1 Balance of payments 8 4.2 Aggregate expenditure on CO2 and PAP income 10 5 Impact on Households 11 5.1 Household expenditure 12 5.2 Household income 16 5.3 Net impact on households 17 6 Impact on Industry 18 6.1 Energy use, emissions and CO2 costs by major sector 18 6.2 Second order effects 19 6.3 Export industries and international competitiveness 20 7 Opportunities for Renewable Energy 21 8 Summary and Conclusions 21 9 References 22 Appendix A: Fossil Fuel Scarcity Rents 24 APPENDICES Appendix B: Comparative Energy Intensities of SA Industries 26 Figure 1: Shares of total primary energy supply in South Africa, 2005 3 FIGURES Figure 2: Carbon dioxide emissions from fossil fuel
    [Show full text]
  • ENVIRONMENTAL LIMITS and BOUNDARIES: a Research Paper
    ENVIRONMENTAL LIMITS AND BOUNDARIES: EVOLVING MEANINGS, HOW DIFFERENT SCHOOLS OF THOUGHT DRAW A ROADMAP AND WHAT WE LEARN FROM THAT A Research Paper presented by: ASMITA VAIDYA (India) in partial fulfilment of the requirements for obtaining the degree of MASTER OF ARTS IN DEVELOPMENT STUDIES Major: Agrarian Food and Environmental Studies AFES Specialization: ESD Environment and Sustainable Development Members of the Examining Committee: Murat Arsel (Supervisor) Arnim Scheidel (Reader) The Hague, The Netherlands December 2016 i ii Table of Contents List of Figures iv List of Appendices iv Acronyms v Abstract vii 1. ENVIRONMENTAL LIMITS AND BOUNDARIES: EVOLVING MEANINGS 1 1.1 Objective and Methodology 2 1.2 Origin of limits and boundaries 5 2. IDEAS, PEOPLE, PLACES AND TIME 7 2.1 Limits to growth 7 2.2 Planetary Boundaries 12 2.3 Degrowth 16 3. GROWTH, ENVIRONMENT AND PROSPERITY 21 3.1 Economic Growth 21 3.2 Accounting issues, environmental problems, and infeasibility of accumulation and profit 22 3.3 Beyond economy and ecology 27 3.4 The Bottom Line 28 4 VISION FOR CHANGE 29 4.1 Limits to Growth 29 4.2 Degrowth 30 4.3 Planetary Boundaries 32 5 IMPLICATIONS AND TAKEAWAYS 35 5.1 Co-production 35 5.2 Ideologies, worldviews and values 37 5.3 Environmental and social limits, yes, growth limits, not so much 40 6 IN CLOSING 42 References 44 iii List of Figures Figure 1: Scenario 6 from Limits to Growth 10 Figure 2: Real world data comparison from 1970-2000 11 Figure 3: The World Model 12 Figure 4: Planetary Boundaries 15 Figure 5: Francois Schneider’s
    [Show full text]