Search Climate Insights Directory

The report analyzes data from 4,293 surveys to determine the economic viability of LDAR programs. It finds that while many individual facilities may face a net cost for a survey, the aggregate effect across a group of facilities is positive due to the high value of repairing major leaks. The study concludes that LDAR using IR cameras is a low-cost abatement method for methane and VOCs, with the most economic strategy being to repair almost all identified leaks.

The analysis finds that CCS without EOR is currently unprofitable due to low carbon prices, while CCS combined with EOR and DSF storage can be profitable if oil prices remain above a specific threshold. The study highlights that high investment costs and energy efficiency losses at power plants create significant financial barriers, necessitating either high commodity prices or substantial government subsidies to incentivize early adoption.

The report evaluates three water storage options for Manitoba to address flooding and eutrophication. Using benefits transfer and expert analysis, it finds that back-flooded dams offer the highest cost-benefit ratio (371%) due to low capital costs and significant ecological benefits, followed by re-graded ditches (194%) and filter fields and ponds (128%).

The research paper assesses the economic viability of CCS technologies in the UK, specifically comparing CO2-EOR paired with DSF storage against standalone DSF storage. Using a stochastic model calibrated with UK futures market data for electricity, oil, and carbon allowances, the authors find that only the EOR-paired option is potentially profitable, provided long-term oil prices remain high. The study highlights that current carbon prices are insufficient to incentivize standalone CCS and that the option to delay investment increases the required 'trigger price' for oil to make immediate investment optimal.

The study finds that potential BCAs by the US and EU would capture only a small fraction of China's total exported emissions, though certain energy-intensive sectors like iron and steel would face significant charges. The impact varies greatly depending on whether charges are based on direct or embodied emissions, with embodied emissions resulting in significantly higher costs. Overall, the authors conclude that such measures would have limited impact on incentivizing total carbon reductions as exporters might divert production to other regions.

The paper evaluates the EU ETS allocation method—specifically the New Entrants Reserve (NER) and grandfathering—against output-based allocation (OBA), full auctioning, and border adjustments in the cement industry. It finds that while the EU ETS method effectively tackles carbon leakage, it creates economic distortions between new and existing plants, leading to lower overall welfare compared to border adjustments or OBA. The analysis suggests that the EU ETS method's primary advantage is its lower distributional impact on consumers and producers.

The analysis finds that while Boulder has achieved significant energy savings, current programs are insufficient to meet its 2012 Kyoto-based emissions targets. Residential lighting programs and audits are the most cost-effective, while renewable energy systems show below-average returns. The report recommends transitioning to a longer-term, integrated approach focusing on deep retrofits and exploring municipalization of the energy supply to close the emissions gap.

The paper examines the 'double dividend' hypothesis in Spain, arguing that shifting the tax burden from labour to carbon can improve both environmental and economic outcomes. By incorporating the shadow economy into its model, the authors find that reducing labour taxes increases the demand for formal labour, encouraging workers to move from the informal sector to the formal economy. This transition increases official GDP and overall welfare. The study concludes that the potential welfare gains from such reforms are higher in countries with larger initial shadow economies and higher unemployment rates.

The authors develop a hybrid "EZ-DICE" model that replaces the standard constant relative risk aversion (CRRA) utility with Epstein-Zin utility, allowing for the independent calibration of risk aversion and time preference. Using a five-state model of uncertainty regarding climate sensitivity, the study finds that EZ-DICE results in a significantly higher social cost of carbon and more rapid carbon emission abatement compared to the standard DICE model. However, the results are remarkably insensitive to the level of risk aversion, which the authors attribute to DICE's optimistic assumptions that allow for the certain and low-cost prevention of the worst climate outcomes through immediate 100-percent abatement.

The authors test the sensitivity of the DICE-2007 model to various inputs, creating a 'DICE-Adjusted' version that incorporates updated population projections, a lower discount rate from the Stern Review, and endogenized non-CO2 greenhouse gas effects. They find that when climate sensitivity is increased to 6C and the damage function exponent is raised to 3, the model recommends achieving a completely emission-free world economy within approximately 60 years to maximize human welfare. The study also demonstrates that the cost of 100-percent abatement significantly influences the timing of full emissions control and peak temperature outcomes.

The authors challenge the U.S. government's 2010 estimate of a $21 Social Cost of Carbon (SCC), arguing it underestimates climate risks. By adjusting the DICE model to include higher climate sensitivity, more severe damage estimates at both low and high temperatures, and a lower discount rate, the authors find the SCC could reach $893 in 2010 and $1,500 by 2050. They conclude that if these higher risks are plausible, the SCC exceeds the cost of maximum feasible abatement, making a precautionary approach to rapid emission elimination the most cost-effective strategy.

The paper challenges the finding that warming is robustly linked to civil war in Sub-Saharan Africa by replicating and testing the model used by Burke et al. (2009). Through influence diagnostics, alternative operationalizations of civil war, and expanded sample periods, the authors find that the reported positive effect of temperature is tenuous and often disappears. The analysis suggests that the original results were driven by a few influential observations involving foreign intervention and that climate variables provide negligible predictive power compared to country-specific fixed effects and time trends.

The study investigates the optimal abandonment of coal-fired power plants in the EU, considering uncertainties in coal, gas, and CO2 emission allowance prices. Using a three-dimensional binomial lattice, the authors find that abandonment is unlikely unless CO2 prices reach very high levels, particularly because plants can operate as peaking units. The decision is heavily influenced by the plant's remaining lifetime, thermal efficiency, and the volatility of carbon prices.

The research employs a three-dimensional binomial lattice and real options analysis to determine the trigger investment cost for energy efficiency projects. It finds that the 'energy efficiency paradox'—where worthwhile projects are not undertaken—can be explained by the value of the option to wait, particularly when the remaining useful life of a facility is short.

The paper analyzes the DICE model's tendency to recommend minimal climate action, finding that the discount rate, assumed benefits of moderate warming, and the integration of climate science drive this 'timidity'. Modifying these assumptions leads to a higher marginal carbon price, though the authors argue that cost-effectiveness analysis may be more useful than economic optimization modelling due to long-run uncertainties.

The document describes an extension to the 'Embedded Carbon Emissions Indicator' project, specifically focusing on the uncertainty analysis of a UK-MRIO model. The study employs a Monte-Carlo analysis to determine error margins for direct and indirect carbon dioxide emissions associated with UK economic activities and trade. The process involved reviewing standard deviations of constraints, estimating input-output (IO) table uncertainties from constraints and matrix balancing, and calculating error propagation for embedded emissions. The report notes that such a thorough uncertainty analysis is rare in environmental MRIO studies.

The document concludes that CFLs are significantly more environmentally friendly than incandescent bulbs over their life cycle. Despite more energy-intensive manufacturing and the presence of mercury, CFLs reduce greenhouse gas emissions by 75% over 10,000 hours of use. The analysis shows that mercury emissions from coal-fired power plants used to power incandescents exceed the mercury released by a CFL's operation and disposal. While frequent on-off cycling reduces a CFL's lifespan and increases its relative assembly emissions, they remain a net win for the environment and typically pay for themselves through energy savings.

The study finds that CFLs provide significant environmental benefits over incandescents, primarily through reduced greenhouse-gas emissions during the operation phase. Despite concerns over their complex manufacturing and mercury content, the analysis shows that the energy efficiency of CFLs outweighs these factors. Even under short operating cycles that reduce lamp life, CFLs remain a net environmental win, though their economic payback period increases. The report also notes that while CFLs release more lead and arsenic than incandescents, they result in lower overall mercury emissions when accounting for the mercury released by coal-fired power plants required to power incandescent bulbs.

The paper argues that the EU cement sector is more exposed to carbon leakage than generally assumed, particularly in coastal regions. Using two models with a CO2 price of 30 €/t, the author finds that short-term import levels in coastal regions would rise from 13% to 25%, with an overall EU leakage rate of 65%. In the long term, EU cement capacity is projected to decline by 13% as imports become more attractive during peak demand. The author concludes that while output-based allocation might mitigate financial pressure, a severe world recession would likely induce a similar industrial restructuring to that of a full auctioning scheme.

The case study evaluates the PRECIS Regional Climate Model (RCM) and Tropical Storm Model (TSM) to project wind climate trends in Barbados. While the RCM showed some biases in baseline simulations, projections from the aenwh-driven model suggest small increases in mean wind speed and a higher frequency of days exceeding 8 ms-1 by the 2080s. The TSM 'what if' scenarios indicated that Hurricane Katrina would cause the most damage due to the longest persistence of maximum wind speeds. These findings highlight risks to coastal infrastructure, utility plants, and port operations, suggesting a need for updated building codes, extended setback limits, and the restoration of natural buffers like reefs and mangroves.