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228 documents from Basque Centre for Climate Change
Environmental Concerns in Water Pricing Policy: an Application of Data Envelopment Analysis (DEA)
The research evaluates irrigation water pricing policies in Puglia, Italy, using a two-step process: simulation via mathematical programming and efficiency analysis via Data Envelopment Analysis (DEA). The study compares technical efficiency with 'eco-efficiency,' which simultaneously considers economic outputs and environmental externalities. Results indicate that volumetric pricing methods are generally the most efficient, while inefficiency in other options is primarily driven by technical factors, specifically labour use, rather than environmental concerns like nitrate surplus or pesticide risk.
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Document type: Research paper
The Slow Search for Solutions: Lessons from Historical Energy Transitions by Sector and Service
The document analyzes fourteen historical energy substitutions in the UK, concluding that transitions are complex, sector-specific processes rather than single events. It finds that most transitions were driven by the promise of 'better' services (e.g., cleaner or more flexible) but only achieved broad diffusion once the cost of the service became competitive with incumbents. The author argues that a transition to a low carbon economy is likely to be very slow, as historical data since the Industrial Revolution suggests an average innovation chain of over 100 years and a diffusion phase of nearly 50 years.
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Document type: Research paper
Carbon leakage and the future of Old Industrial Regions after Copenhagen
The research investigates how asymmetric global climate policies can lead to carbon leakage, specifically the relocation of CO2-intensive industries like iron and steel. Using the Basque Country as a representative Old Industrial Region (OIR), the authors demonstrate that while relocation impacts may be negligible at a national level, they can significantly reduce regional GDP. The study finds that reducing emissions through industrial relocation is far more costly in terms of GDP loss than achieving the same reductions through cost-effective mitigation policies.
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Document type: Research paper
Divergences in the Long Run Trends in the Price of Energy and of Energy Services
The research demonstrates a historical divergence between the cost of energy commodities and the cost of the services they provide. While energy prices often rose due to taxes or shifts to higher-quality fuels, the prices of energy services generally declined since the Industrial Revolution due to technological efficiency gains. The author argues that using energy prices instead of service prices in economic models leads to incorrect estimates of consumer responsiveness and inaccurate forecasts of carbon dioxide emissions.
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Document type: Research paper
The Health Impacts of Climate Change: A Study of Cholera in Tanzania
The study establishes a significant positive correlation between temperature increases and cholera cases in Tanzania, predicting that a 1 degree Celsius rise in annual mean temperature increases the risk ratio for cholera by 23 to 51 percent. By 2030, the total economic cost of additional cholera cases and deaths—including treatment, productivity loss, and the value of statistical life—is projected to range from 1.4 to 7.8 percent of GDP. The authors argue that the costs of these climate-driven health impacts largely exceed the costs of preventive measures, such as household chlorination and improved water sanitation.
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Document type: Research paper
What happened during the climate change negotiations in Copenhagen 2009?
The document analyzes the COP 15 summit, detailing the emission commitments of major economies like the US, China, and the EU, and evaluating the resulting non-binding agreement. It highlights the establishment of the Copenhagen Green Climate Fund and the political consensus on a 2°C temperature limit, while criticizing the lack of specific mitigation targets and the opaque negotiation process.
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Document type: Policy brief
Which policy option can be more cost-effective in promoting the use of energy efficient appliances in Europe?
The document compares different policy instruments for increasing energy efficiency in appliances across several EU member states, finding that while subsidies often lead to greater CO2 reductions, energy taxes generally provide higher welfare gains and lower administrative costs. The effectiveness of these policies varies significantly by product type and country, with tax credits for boilers proving highly cost-effective in Italy and Denmark, and the ban of inefficient washing machines being preferable to manufacturer tax credits in Italy and Poland, despite high overall welfare costs.
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Document type: Policy brief
The costs of drought: the exceptional 2007-2008 case of Barcelona
The 2007-2008 drought in Barcelona was the most severe in the last century, resulting in total estimated losses of 1,661 million Euros for a one-year period, approximately 1% of the Catalonian GDP. The study categorizes costs into direct losses for economic agents (540.26 million Euros), indirect losses to the regional economy (358.47 million Euros), and non-market welfare losses (761.95 million Euros). To mitigate the crisis, the Government of Catalonia implemented demand-side restrictions and supply-side measures, including the shipping of water from France and Tarragona. The authors find that demand-side constraints were significantly more cost-efficient than water transport. Climate projections for the region suggest that the frequency of drought events may double, with increased duration and intensity.
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Document type: Research paper
The Costs of Ecosystem Adaptation: Methodology and Estimates for Indian Forests
The paper argues that current adaptation cost estimates are insufficient and often rely on a single measure, such as expanding protected areas. It proposes a five-step methodology: quantifying direct climate impacts, identifying vulnerable areas, selecting adaptation options based on effectiveness and feasibility, determining per-unit costs, and aggregating total costs. Applying this to Indian forests under a 2085 B2 climate scenario, the authors focus on shifts in forest distribution. Using Net Primary Productivity (NPP) to identify vulnerable areas where shifts are negative, they estimate annual adaptation costs between $239.78 million and $1,486.72 million, depending on whether a minimum or comprehensive set of adaptation measures is implemented.
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Document type: Research paper
Optimal Investment in Energy Efficiency Under Uncertainty
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.
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Document type: Research paper
Integrated Impact Assessment Models of Climate Change with an Emphasis on Damage Functions: a Literature Review
The document provides a comprehensive review of various Integrated Impact Assessment Models (IAMs), categorizing them into fully integrated, non-CGE, and CGE-type models. It specifically examines the 'damage functions' used to translate temperature increases into economic losses, noting a high degree of subjectivity and uncertainty in these calculations due to a lack of empirical data.
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Document type: Research paper
Modelling the Effect of Climate Change on Environmental Pollution Losses from Dairy Systems in the UK
The study uses the SIMSDAIRY and LEGGRAZE models to project the impact of climate change on UK dairy systems across four time-slices (baseline, 2020s, 2050s, and 2080s). Findings indicate a general decrease in nitrous oxide (N2O) and overall greenhouse gas (GHG) emissions per litre of milk, but an increase in ammonia (NH3) emissions and nitrate (NO3) concentrations in leachate. While farm profitability and soil quality are projected to improve due to increased land productivity and altered rainfall patterns, the study highlights a trade-off with increased acidifying gases and water pollution.
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Document type: Research paper
Climate Change and Its Socioeconomic Importance
The document examines climate change as a global challenge characterized by scientific uncertainty and long-term impacts. It frames the issue as a 'market failure' resulting from negative externalities, where the costs of greenhouse gas emissions are not internalized. The authors discuss the economic costs of mitigation versus inaction, the ethical implications of discount rates and inter-generational equity, and the potential for 'carbon leakage' in international trade. It emphasizes the necessity of combining mitigation and adaptation strategies, the critical role of R&D and technology transfer to developing nations, and the importance of international agreements like the Kyoto Protocol and the 2009 Copenhagen Summit (CoP 15).
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Document type: Research paper
Analysis and Use of Information and Communication Tools in the Economics of Climate Change
The research identifies five key areas for ICT application in climate change: observation and monitoring, modeling and simulation, socio-economic analysis, policy analysis and planning, and capacity building. Based on a survey of 18 environmental economists from European countries, the study finds that internet-based services and statistical software are the most widely used and highly valued tools across most research areas. While scientific relevance—specifically increasing exchange in the scientific community—is ranked as the highest priority for ICT, political relevance (interfacing with policy-makers) is ranked higher than economic relevance (reducing research costs). The paper highlights significant barriers to the use of specialized tools, including high costs, data shortages, and complex coding, and calls for increased data accessibility and international collaboration to support developing countries.
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Document type: Research paper
The Role of Regions in Climate Change Policy
The document examines the critical role of regional governments in implementing climate change mitigation and adaptation policies, noting that while national governments negotiate international targets, regions often hold the actual competencies for execution. It analyzes 23 regions, highlighting a variety of instruments such as carbon taxes, subsidies, and cap-and-trade systems. A detailed case study of the Basque Country's 'Basque Plan to Combat Climate Change 2008-2012' illustrates how a small, industrialised region can set specific targets for GHG emissions and carbon sinks while coordinating across multiple policy sectors.
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Document type: Research paper
Climate Change and Knowledge Communities
The paper argues that climate change is a global public bad requiring coordinated public-sector intervention. It posits that 'knowledge communities'—groups of experts who produce and share scientific information—are essential for driving the paradigm shifts and technological adoption needed for mitigation. The Intergovernmental Panel on Climate Change (IPCC) is highlighted as a primary catalyst for this global learning process. The authors also analyze economic instruments for emission reduction, such as the EU Emissions Trading System (ETS), taxes, and standards, while noting the difficulties of international cooperation under frameworks like the Kyoto Protocol.
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Document type: Research paper
Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation
The paper finds that integrating REDD into global carbon markets significantly reduces tropical deforestation emissions and lowers overall climate policy costs by 10-25%. While it slightly decreases investments in some renewable energy and nuclear R&D (by 1-10%), it may marginally increase investments in carbon capture and storage (CCS) and integrated gasification combined cycle (IGCC) technologies. The study highlights that 'banking' credits enhances these cost savings and provides policy flexibility for future more stringent targets.
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Document type: Research paper
Market Instruments and CO2 Mitigation: A General Equilibrium Analysis for Spain
The study compares different market instruments for CO2 mitigation in Spain, finding that cost-effectiveness depends heavily on the scope of the instrument and the specific sectors or fuels targeted. Using an AGE model, the author demonstrates that a 'complete market' for emission permits or a direct CO2 tax are the most cost-effective options. In contrast, narrow instruments—such as a tax on electricity or a permit market excluding energy-intensive industries—significantly increase the cost of achieving emission reductions in terms of GDP and utility loss. The results indicate that as CO2 reduction targets increase, the costs rise disproportionately, with some inefficient instruments costing up to 13 times more than the cost-effective benchmark.
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Document type: Research paper
Aprendizajes de un proceso de co-investigación con actores sociales del Mar Menor
The report details a co-research process with local stakeholders in the Mar Menor region, highlighting deep social tensions, distrust of public administrations, and conflicting interpretations of scientific data regarding lagoon degradation. It identifies a territorial fracture between the lagoon and the Campo de Cartagena, as well as internal tensions among locals who value the ecosystem but depend on economic activities—such as agriculture and fishing—that impact it. Key findings include the need for better management of the rising water table, the invisibility of traditional fishing practices, and the necessity of integrating socio-historical knowledge with biophysical sciences to address the roots of the crisis.
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Document type: Report
REPORT ACTIVITY 2009 / 2012
The Basque Centre for Climate Change (BC3) activity report for 2009-2012 details the centre's growth to a team of 31 researchers focused on the socio-economic aspects of climate change. The report outlines four primary research lines: adaptation and impacts, mitigation measures, international climate policy, and climate policy specifically for the Basque Country. Key achievements include the production of 226 articles and 18 books, the development of the ARIES modelling technology for ecosystem services, and the creation of the REMEDIA scientific network for agroforestry GHG mitigation in Spain. The centre also emphasizes knowledge transfer through policy briefings, the Klimagune workshops, and the 'Training Caravan' educational initiative for students in the Basque Country.
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Document type: Report