emissions (7.62%) to export. Besides construction, this fall mainly comes from industrial sectors, such as other manufacturing (OMF) and other machinery and equipment (OME), while most of the service sector drivers contribute more, except public service (OSG) and air transport (ATP). For imports, the embodied emissions are generally associated with construction (CNS), wearing apparel (WAP), chemical, rubber and plastic products (CRP), motor vehicles and parts (MVH), other ma- chinery and equipment (OME) and public service (OSG). Compared to 2011, total emissions embodied in imports increase signiﬁcantly (47.17%), and this can be attributed mainly to emerging demands for CRP in domestic markets. Demands for MVH, services and food pro- ducts also contribute to the growth. Construction is the most important sector in both export and imports. In the recession of emissions em- bodied in exports from 2011 to 2014, the amount of emissions related to construction also falls but the proportion rises, which means the driving force from construction is relatively stable; at the same time, during the extending process of emissions embodied in imports, emis- sions related to construction also experiences a considerable increase in both amount (2724.03 Kt to 3771.49 Kt) and proportion (14.10% –19.52%). On the one hand, construction itself is a sector which includes long value chains and has support from high carbon industries; on the other hand, construction is an essential force to promote economic development, especially for an emerging economy. Contributions from di ﬀerent trade partners vary sharply from 2011 to 2014. Fig. 5 (a) and (b) display the change in both exports and im- ports. In 2011, main overseas consumers of Kazakhstan's CO 2 emissions
Developing (non-Annex 1) countries, exempt from the Kyoto Protocol’s binding limits, are able to participate in the global emissions market by hosting projects under the Clean Development Mechanism (CDM). It enabled developing nations to participate in the treaty by selling carbon credits, termed ‘certified emissions reductions’ (CERs) and measured in tons of CO2-equivalent, to countries with emissions commitments. These CERs are subject to a process of verification and certification by a UN accrediting body before issuance and sale. Unlike allowance trading, the CDM is a project-based approach, with new credits continuously being created as new projects are verified. It was intended from the beginning that the CDM would create sustainable development benefits for developing nations. Indeed the first statement in the KyotoProtocol that defines the CDM says clearly, “the purpose of the Clean Development Mechanism shall be to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention…” (KP 12.2), an ordering which gives clear priority by the negotiators to sustainable development .
21 reduce GHGs directly target the reduction of rather than . In addition to standard variables, this study also considers a newly identified control variable in order to examine for the effects on conditional convergence: trade volume per capita. This variable is considered to be more closely related with emissions rather than . Both the trade volume and patterns of trade are expected to have a significant impact on (Liddle, 2018). The gap between embodied emissions in imports and exports might be due to the increasing gap between the trade volume of imports and exports as well as changing trade patterns. If a country experiences a huge trade deficit, where imports exceed their exports, it is more likely that this country will have a higher CBE than PBE. If, on the other hand, this country dominantly exports energy intensive products and imports less energy intensive products in their trade, it is possible to see that the country‟s CBE are lower than its PBE. According to „Pollution Heaven Hypothesis‟, for instance, pollution intensive industries will contract in countries with relatively strong environmental regulation and expand in those where there is no or relatively weak environmental regulations. (Copeland and Taylor, 2013). Such environmental policy differences may serve as an important source of comparative advantages for the latter group of countries. As earlier global climate agreements, particularly Rio Convention and the KyotoProtocol, did not include all countries in terms of GHG reduction pledges, the issue of carbon leakage has been seen a serious challenge to international climate mitigation programmes. Within this context, level and driving forces of “carbon leakage” issues have been extensively discussed in the literature (Barrett et al., 2013; Böhringer et al., 2017). Due to the concerns regarding carbon leakage may have undermine climate policies, studies focused on , as this approach practically identifies embodied emissions on traded products (Peters et al., 2016). We, therefore, believe that including as a control variable will provide us some useful insights to analyse the result of the findings.
Eggplant farmers/producers in the study areas (Pangasinan and Quezon provinces) used similar maturity indices. The first fruits of eggplant are harvested 45-60 days after transplanting. At this condition, the eggplant has already attained the size sufficient for marketing. Other maturity indices such as size, breakage in the calyx and glossy purple in color (for colored variety) are also considered by some farmers. Harvesting is done carefully by using hands or a sharp knife. Harvested fruits are placed in a bamboo baskets, crates or sacks. Harvesting is done as early as 5:00 a.m. to 10:00 a.m. in the morning, depending on the area of production. About eight to ten persons are needed to harvest one hectare of eggplant. Harvesting is done once or twice a week and usually lasts for three to six months. Most of the farmers harvest their eggplant 30 times.
are several. First, VARs are extremely useful when there is little or ambiguous theoretical information regarding the relationships among the variables to guide the specification of the model. Second, and more importantly, VARs are explicitly designed to address the endogeneity problem, which is one of the most serious challenges of the empirical research on energy consumption and economic growth. VARs help to alleviate the endogeneity problem by treating all variables as potentially endogenous and explicitly modeling the feedback effects across the variables. Third, impulse response functions based on VARs can account for any delayed effects on and of the variables under consideration and thus determine whether the effects between energy consumption and economic growth are short–run, long–run or both. Such dynamic effects would not have been captured by panel regressions. Fourth, panel VARs allow us to include country fixed effects that capture time-invariant components that may affect energy consumption and growth, and global time effects that affect all countries in the same period. Fifth, time fixed effects can also be added to account for any global (macroeconomic) shocks that may affect all countries in the same way. Last but not least, panel VARs can be effectively employed with relative short-time series due to the efficiency gained from the cross-sectional dimension.
On 28 October Kazakhstan's parliament gave Nazarbayev power to introduce a national currency. In a secret operation four hired cargo aircraft brought 60% o f the new currency from London.82 In a TV address on 12 November Nazarbayev announced introduction o f the national currency, the tenge, from 8 a m. on 15 November. The rouble zone collapsed, highlighting another stage in the process o f separation o f the CIS states. This event received contradictory interpretations in Kazakhstan and Russia. Recalling those dramatic days Nazarbayev said in a recent interview: " The Russian government’s economic egotism manifested itself in the first place in abolishing the common currency, common economic complex. This did irreparable damage first o f all to the integrative processes... I did everything possible and impossible to keep Kazakhstan in the common monetary and technological space with Russia and other CIS states. But alas, the vector o f Russian development was pointed in a different direction".83 Strangely, in his memoirs Nazarbayev gave a slightly different interpretation. He said that Shokhin had been “probably right at that moment” . “Building your statehood, it is impossible to do without your own currency. Sooner or later it should have been introduced” .84 A similar view is voiced by Mansurov, Kazakhstan's Ambassador to Moscow: "...W hen Kazakhstan and Russia - two independent states... are not united into a common form of statehood, be it federation or confederation, the single rouble could exist only for a certain transitional period with the objective o f mitigating the destructive consequences o f the collapse o f the overcentralised state which the Soviet Union was".85 Thus Mansurov recognised the objective nature o f the break-up o f the rouble zone in the absence of a common union statehood.
The purpose of this article was to prove the viability of transition towards sustainability both technically and economically. However, this research did not cover the case specific realities of every steel or chemical producer. In addition, the CO quantities produced by steel industry are so vast that a single solution does not solve the envi- ronmental challenges of the entire sector. Also, the reali- ties of chemical producers were not looked upon, e.g. market growth for chemicals and steel mill site locations in relation to markets. The future research could include, aside addressing the above described limitations, analys- ing the detailed differences of BOF and BF gases from the perspective of chemical production.
Secondly, a single indictor does not facilitate isolating the impact of technology switching from technical energy efficiency. The global push to diversify the fuel mix for passenger carss, including electric and hydrogen vehicles 12 strengthens the argument for raising the importance of quantifying the impacting of inter-fuel substitution. A full decomposition analysis with as much disaggregation as possible is required to determine the best policy levers to control the energy consumption and associated emission of a passenger car stock. This paper quantitatively confirms, at the level of national energy statistics, that vehicle fuel economy figures (obtained from the legislative requirement for vehicle manufacturers to provide the result of fuel economy tests in controlled laboratories for vehicle performance labels) are not a reliable indicator of efficiency improvement in passenger cars transport consumption. For the Irish test case, ex-postanalysis suggests that the diesel passenger-car fleet is just over 40% higher than the vehicle manufacturer labels suggest. Similarly, the on- road factor is 30% higher than vehicle manufacturer labels. This corroboration significantly diminishes the value of relying on a single indicator to monitor energy efficiency trends in passenger cars fleets and reinforces the conclusion that monitoring more factors is an imperative.
function of income, like inverted U-shape curve. Actually, technology effect goes with the structure effect. The upgrading of industrial structure needs the support from technology. Technical progress makes it possible to replace the heavily polluting technology with cleaner technology. It is the trade off between scale effect and technology effect that the environment deteriorates at the first industrial structural change and improves at the second industrial structural change. So the relationship between environment and economic growth looks like inversed-U curve. The downward sloping portion of the environment and economic growth may be facilitated by advanced economies exporting their pollution intensive production processes to less- developed countries (Suri and Chapman, 1998). These varied impacts of income on pollution are shown in Figure 2:
There is an implicit assumption in cointegration test and long-run equilibrium equation, that is, the estimated parameters are fixed. However, the estimated parameters of time series model may change over time, leading to defect of model reliability. Hence stability test is manda- tory. We in this paper use recursive cumulative sum of residual squares recommended by Pesaran to test the parameter stability of model structure. Results of CUSUMSQ test show over the time series span, residual sum has never been out of the boundary, which leads us to believe that the estimate equation of CO 2 emissions is
(2) The energy structure optimization (CEP sub-scenario) has the greatest potential as well as the TEC sub-scenario in regards of carbon reduction, so it is highly recommended to promote clean energy, such as natural gas, to replace high-carbon energy resources. However, according to the results, if the policies and measures are implemented completely, the natural gas consumption will reach 29.51 million tce in 2030, 4.93 times of that in 2011. Considering the limit of natural resources in Beijing, this is totally a huge challenge for the energy supply system. Thus to make the policies function well and the energy structure optimize successfully, the government should ensure the energy supply system, especially the natural gas supply. (3) The IEC and BEC sub-scenarios do not save as much energy as the TEC. Therefore, in the
In this study we examine the dynamic interrelationship in the output–energy– environment nexus by applying panel vector autoregression (PVAR) and impulse response function analyses to data on energy consumption (and its subcomponents), carbon dioxide emissions and real GDP in 106 countries classified by different income groups over the period 1971–2011. Our results reveal that the effects of the various types of energy consumption on economic growth and emissions are heterogeneous on the various groups of countries. Moreover, causality between total economic growth and energy consumption is bidirectional, thus making a case for the feed- back hypothesis. However, we cannot report any statistically significant evidence that renewable energy consumption, in particular, is conducive to economic growth, a fact that weakens the argument that renewable energy consumption is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an inverted U-shaped EKC, we find that the continued pro- cess of growth aggravates the greenhouse gas emissions phenomenon. In this regard, we cannot provide any evidence that developed countries may actually grow-out of environmental pollution. In the light of these findings, the efficacy of recent gov- ernment policies in various countries to promote renewable energy consumption as a means for sustainable growth is questioned. Put differently, there seems to be a moral dilemma, between high economic growth rates and unsustainable environment and low or zero economic growth and environmental sustainability.
In this study we examine the dynamic interrelationship in the output–energy– environment nexus by applying panel vector autoregression (PVAR) and impulse response function analyses to data on energy consumption (and its subcomponents), carbon dioxide emissions and real GDP in 106 countries classified by different income groups over the period 1971–2011. Our results reveal that the effects of the various types of energy consumption on economic growth and emissions are heterogeneous on the various groups of countries. Moreover, causality between total economic growth and energy consumption is bidirectional, thus making a case for the feed- back hypothesis. However, we cannot report any statistically significant evidence that renewable energy consumption, in particular, is conducive to economic growth, a fact that weakens the argument that renewable energy consumption is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an inverted U-shaped EKC, we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. In this regard, we cannot provide any evidence that developed countries may actually grow-out of envi- ronmental pollution. In the light of these findings, the efficacy of recent government policies in various countries to promote renewable energy consumption as a means for sustainable growth is questioned. Put differently, there seems to be an ethical dilemma, between high economic growth rates and unsustainable environment and low or zero economic growth and environmental sustainability.
The literature suggests that Russia and Ukraine may become large sellers of greenhouse gas emissions permits under the KyotoProtocol and might exploit their market power to maximize trading profits. The EU countries taken together will probably be net buyers of permits. For any given global target for emission, participation by developing countries with low-cost abatement options would benefit the net buyers of permits because the market price for carbon permits would go down. We explore how the EU could benefit from a broader participation through specific bilateral agreements with developing countries in the post-Kyoto period. The bilateral agreement involves a minimum permit sales requirement which is compensated by a financial transfer from EU to the developing country. Such bilateral agreement enables the EU to act strategically in the permit market on behalf of its member states, although firms in each member state are assumed to be price takers in the permit market. In a numerical simulation we show that an appropriately designed bilateral agreement between the EU and China can cut EU’s total compliance cost by one third.
The paper investigates the existence of dynamic causality between the energy consumption, environmental pollutions and economic growth using cointegration analysis for Bangladesh. First, we tested whether any long run relationship exist using Johansen bi-variate cointegration model which is complemented with auto-regressive distributed lag model introduced by Pesaron for the results robustness. Then, we tested for the short run and the long causality relationship by estimating bi-variate vector error correction modeling framework. The estimation results indicate that a unidirectional causality run from energy consumption to economic growth both in the short and the long run; a bi-directional causality from electricity consumption to economic growth in long run but no causal relationship exists in the short run. A uni-directional causality run from CO2emissions to energy consumption in the long run but it is opposite in the short run. CO2 granger cause to economic growth both in the short and in the long run, which is conflicting to the familiar environmental Kuznets curve hypothesis. Our results are different from existing analysis for electricity consumption and economic growth, however. The result of dynamic linkage between energy consumption and economic growth significantly reject the ‘neo-classical’ assumption that energy use is neutral to economic growth. Hence clearly an important policy implication, energy can be considered as a limiting factor to the economic growth in Bangladesh and conservation of energy may harm economic spurs. Therefore, it is a challenge for the policy makers to formulate sustainable energy consumption policy to support smooth energy supply for sustainable economic growth. 1. Introduction
and Yamamoto  procedure, investigate the energy consumption, output and carbon emission nexus for China, controlling for capital and urban population. They found unidirectional long-run causality running from GDP to energy consumption and from energy consump- tion to carbon emission. The study showed that neither carbon emission nor energy consumption leads economic growth. Sari and Soytas  investigate the relationship between carbon emissions, income, energy and total em- ployment in five OPEC countries by employing the autoregressive distributed lag (ARDL) model of cointe- gration. Cointegration among the variables has been es- tablished only in Saudi Arabia. The study established that none of these countries namely Algeria, Indonesia, Nige- ria, Saudi Arabia and Venezuela need to sacrifice eco- nomic growth in order to reduce CO 2 emissions. Hali-
theories focus on the link between urbanization and natural environment. Sadorsky (2014) explores three theories on the relationship between urbanization and natural environment. These are well known as ecological modernization, urban environmental transition and compact city theories. According to the theory of ecological modernization, urbanization is a very important process of social transformation. As societies move from low to middle stages of development, economic growth is the primary goal of economy and environmental problems may emerge. In higher stages of development, environmental pollution becomes more important. Urbanization may reduce the impact of economic growth on the environment. The theory of urban environmental transition investigates the relationship between environmental issues and urbanization at the city level. In this theory, cities often become wealthier by industrial manufacturing and can cause to industrial demage. On the other hand, environmental regulations and technological innovations may lessen industrial pollution. The compact city theory deals with the benefits of urbanization. Higher urbanization may facilitate economies of scale for public infrastructure and environmental pollution may lessen by these scale economies. These theories suggest that urbanization may have positive and negative effects on the natural environment. Empirical studies have generally investigated the relationship between urbanization, energy consumption, and CO 2 emissions. For example, Cole and Neumayer (2004) deal with the relation
butional dynamics of emissions and countries’ participation and position in multilateral agreements.
Furthermore, the focus on NDCs inherent in the Paris Agreement emphasizes the im- portance country-specific convergence dynamics. Country-specific convergence provides information about how far a country’s emissions are from their equilibrium (steady state) value. This information allows to assess emissions in relation to a country’s long-run eco- nomic growth and to determine its long-run national contribution. This information is also relevant to evaluate the costs of emission reduction targets. When a country is close to its equilibrium path of emissions and that path has revealed to be unsustainable, a large share of emission reduction will be associated with the equilibrium path. By contrast, when a country is far from its steady state, a larger share of emission reduction will be associated with the transition dynamics. In general, for a given level of emission reduction, the costs of abatement will be larger if countries are closer to their steady state level of emissions. Moreover, the hypothesis of convergence usually underlies projections of climate models that are used to evaluate the effects of climate policy (Romero- ´ Avila, 2008, Barassi et al., 2011). Empirical studies on the convergence of GHG emissions can provide evidence whether this assumption is justified.
It is not an easy matter to apply principles of equity to the choice amongst alternative climate architectures in any definitive manner. Such principles are designed to operate in a wide range of circumstances and often seem better suited to the analysis of abstract examples rather than concrete policy problems, such as climate change. Climate change architectures, by contrast, are neither abstract nor designed to address all problems of distribution. Nevertheless, it is important to locate alternative architectures in the broader context of equity both for intrinsically ethical reasons and because only a truly equitable regime will secure popular legitimacy and support. Within this context, I hoped to have outlined an ethical framework by which alternative climate architectures might be evaluated in terms of equity, and that there is some reason to think that Contraction and Convergence represents modest progress at the level of outcomes and procedures. It is important to note that one issue that has not been fully addressed is the true extent of the economic disruption of climate architectures that aim for significant cuts in global greenhouse emissions. Until reliable models of the costs and benefits of adaptation and mitigation measures are produced, constructing an ethical analysis of competing architectures remains a tentative undertaking.
Table 2 lists our institutional scenarios, which involve four cases. Scenario Emissions Trading denotes international emissions trading among industrialized regions on two levels. On the first level, it represents company-basedemissions trading within linked EU and non-EU emissions trading schemes, assuming the sectoral emissions allocation in 2020 as laid out in the previous section. Here, we approximate emissions trading at the company level by trading at the sectoral level. Moreover, all regions that have not (yet) set up an emissions trading scheme are assumed to comply with their emissions reduction target by cost-efficient domestic emissions regulation, imposing a uniform carbon tax on their entire economy. On its second level, scenario Emissions Trading represents parallel government trading under a post- KyotoProtocol, which for the sake of illustration only applies to the linked ETS regions. In such a setting of coexisting emissions trading regimes, a reasonable assumption is that no double regulation of energy-intensive industries covered by a national ETS takes place. As carbon trading among linked ETS is approximated by emissions trading among energy- intensive sectors (EIS), government trading only applies to the remaining, non-energy- intensive sectors (NEIS) of each region. These parallel government trading activities should be interpreted as national authorities representing their non-energy-intensive industries on the carbon market. 9