Air Pollution: Economic Modelling and Control Policies

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The aim of this paper is to develop a first analysis of the relationships between the productive structure of the Spanish economy and CO2 emissions, the most important of the greenhouse gases sent to the atmosphere. After presenting the methodology of interest, which allows a joint ex-post analysis of demand and supply multipliers, we arrive at some relevant findings that in turn permit a detailed study of the above mentioned relationships. Finally, the determinant sectors in the emission of this gas are established.

Bringing balance among social, economic and environmental goals has remained hot issue for high income countries’ planning policies since last four decades. Doubtlessly, Turkey has also not remained behind in joining the hands in bringing clean and green environment in the world along with other nations of the world. Turkey has ratified Kyoto Protocol is 2009 and Turkey has not been given any reduction target of GHGs emissions but if Turkey morally reduces GHGs emissions by 10 or 5 percent subject to the level of 2009 GHGs emissions by the year 2012; by how much such reductions will cause decrease in final demand, employees’ compensation and total output of sectors is the central investigation of this study. Using input-output techniques, this study has estimated GHGs emissions for the year 2012 from fossil fuel consumption and results suggest that all GHGs emissions have increased by 22.5 percent from 2009 levels. This study has developed a new technique that uses GHGs emissions target as exogenous variable and solves for final demand which is endogenous variable. The opportunity cost of reducing GHGs emissions by 10 and 5 percent in 2012 is the giving up of 8.12 and 4.08 percent of final demand, employees’ compensation and total output of sectors respectively. Substitution of natural gas completely for other fossil fuel types reduces GHGs emissions so significantly in 2012 that Turkey can pursue her sustainable development goals.

The objective of this paper is to integrate Spanish atmospheric pollution and macro-economic data in order to identify the main drivers of atmospheric pollution in Spain. This paper uses data from the Satellite Atmospheric Emissions Accounts as well as the 2002 input-output tables both published by the Spanish National Statistics Institute. The identification and analysis of the input paths of air pollution in the Spanish production system is performed using Structural Path Analysis (SPA) in a generalised input-output framework. This methodology allows for the detection of “hidden” sectors in the generation of pollution. Our results rank the energetic sectors, food processing industries, other manufacturing industries and transportation as the sectors with the highest emission intensities. Our results also show the production layers contribution in each pollutant, identifying fluorocarbons and ammonia as the substances with higher up-stream sources.

In this paper we set out to examine the energy generated emissions from a different viewpoint, focusing on final energy consumption and trying to ascertain which demands are the most costly to satisfy in terms of emissions of pollutants to the atmosphere. To do this, we apply an additive multiplier decomposition methodology to the Spanish Social Accounting Matrix for the year 2000 that we have developed. This way, we can disaggregate the Spanish energy sector’s revenue-generating process into different effects depending on the source of the demand. To gain a better understanding of the behaviours of the different branches of the economy, we divide Spanish productive activities into two groups, which we call subsystems (energy subsystem and complementary subsystem). We then apply the multiplier decomposition methodology to each one separately. This way, we can identify the influence that the final demand of each of these groups has on income generation and energy sector emissions in the Spanish economy. The results confirm that some branches of the services sector are the most costly in terms of CO2 emissions.

Since the late 1980s, global climate change issues gained an ever-growing attention. The seriousness of the greenhouse effect is now widely recognized as one of the hottest topics in the world agenda. This poses important challenges. For one, global warming is a serious threat, pushing a shift of our mindset from economic growth to more eclectic approaches towards the sustainability of the resources base. Second, we lack effective mechanisms for decision making and policy implementation that encompass the complex interactions between environmental and economic activities.

The Leontief input-output model has been applied for macro environmental analysis since the 1970s. Using data for the Portuguese economy, this paper explores an extended environmental input–output model to study environment and economy interactions in order to support strategies that respect and promote a balanced management of the dynamics between energy supply, environmental protection and economic growth.

Thus, from the empirical analysis of primary energy flows, sets of energy intensity coefficients by industry, as well as the energy requirements attributable to given vectors of final demand, are estimated. Then, sources of anthropogenic CO2 Portuguese emissions and the share of sectors in total emissions are identified, relating this pollution with the use of fossil fuels. Besides, ‘CO2 responsibility’, which takes into account the CO2 content of imports, is estimated. The sectoral CO2 emissions and CO2 responsibilities are compared and these two notions are linked to foreign trade. Accordingly, a summary of the key lessons learned and a discussion of their policy relevance will be offered.

The aim of this paper is to compile and examine regional NAMEA tables for the Greek economy and for the year 2005. The five main regions of Greece have been determined in accordance with the National Strategic Reference Framework (NSRF) approved by the European Commission for the period 2007-2013.The present work utilizes basic data on air emissions derived from the Greek Ministry of the Environment, Physical Planning and Public Works. The economic data are from the 2005 Input-Output regional tables for the Greek economy produced by the National Statistical Service of Greece, the Greek Academy and the single NAMEA Table for 2005. The derived regional NAMEA tables are a valuable tool for examining regional variations by using a series of environmental-economic indices such as the direct emission intensity coefficient, the direct and indirect emission intensity coefficients and each emission factor intensity on each component of final demand of the Greek economy. The paper also aims to establish in which regions there is an accumulation of emissions (particularly CO2) so that an anti-pollution policy can be formulated along with possible policies for substituting polluting production methods.

Primary energy use in economic activities and emission of contaminants caused by physicochemical reactions in the use of energy goods go hand in hand. Using Spanish data for 1995, 2000, and 2004 we have implemented a version of the Structural Decomposition Analysis to compute the contributions coming from changes in efficiency gains, in final demand, direct and indirect input/output requirements in energy use and emissions. Additionally, we have also analysed the combined effect of these contributions over the multiplier effects. According to our findings, in both pairs of years, large contributions coming from energy efficiency gains occurred among the most energy intensive sectors. This is due not only to the observed decline in their effective consumption of primary energy use but also because of their role as “key forward sectors” that made these energy efficiency gains more effective. However, the remarkable final demand growth that has taken place during these years has increased the strength of their push effects, offsetting the contribution of these energy efficiency improvements. Finally, we show that the contribution of indirect requirements dominates the contribution of direct requirements in the majority of Energy sectors but for energy intensive sectors the opposite is found. Our findings could be useful as the basis for designing recommendations that may make energy efficiency policies more effective in themselves as well as promoting fewer emissions in relative terms.

In recent decades, travel and tourism have come to represent a major economic growth sector. To better understand the impact of tourism activity, research on tourism development is undertaken in various fields, involving both theoretical and applied models. The aim of this chapter is to establish a method for analysing the impact of regional tourism development and the associated environmental consequences. The method employed here uses an input-output model with income generated by the tourism sector and emissions released into the atmosphere. The model is applied to the Italian region of Campania, an area with high cultural value, and is used to calculate the emission multipliers of regional activities and to simulate changes in tourist demand and its subsequent effects on regional income and regional emissions.

This paper presents the construction method of the 2000 Input-Output Table for Environmental Analysis of Japan and its application study. The first half of the paper describes the construction of energy inputs and CO2 emissions tables corresponding to the official Input-Output Table by the Ministry of Internal Affairs and Communications, using economic and energy statistics. The second half quantifies the CO2 emission of new power generation technology; Solar Power Satellites (SPS) as one of the application study.

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