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ID: 125662

Equity assessment of introducing uncertain forest carbon seques / Vass, Miriam Munnich; Elofsson, Katarina; Gren, Ing-Marie

Vass, Miriam Munnich	Journal Article
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2013.

Summary/Abstract

Large emissions of greenhouse gases are expected to cause major environmental problems in the future. European policy makers have therefore declared that they aim to implement cost-efficient and fair policies to reduce carbon emissions. The purpose of this paper is to assess whether the cost of the EU policies for 2020 can be reduced through the inclusion of carbon sequestration as an abatement option while equity is also improved. The assessment is done by numerical calculations using a chance-constrained partial equilibrium model of the EU Emissions Trading Scheme and national effort-sharing targets, where forest sequestration is introduced as an uncertain abatement option. Fairness is evaluated by calculation of Gini-coefficients for six equity criteria to policy outcomes. The estimated Gini-coefficients range between 0.11 and 0.32 for the current policy, between 0.16 and 0.66 if sequestration is included and treated as certain, and between 0.19 and 0.38 when uncertainty about sequestration is taken into account and policy-makers wish to meet targets with at least 90 per cent probability. The results show that fairness is reduced when sequestration is included and that the impact is larger when sequestration is treated as certain.

Key Words

Equity ; Carbon Sequestration ; EU Climate Policy

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ID: 176833

Road fuel demand and regional effects of carbon taxes in Sweden / Tirkaso, Wondmagegn Tafesse; Gren, Ing-Marie

Gren, Ing-Marie	Journal Article
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Summary/Abstract

This study estimated national and regional-level gasoline and diesel demand elasticities in Sweden using county-level panel data from 2001 to 2018. The estimated elasticities were used to calculate county cost effect of the Swedish CO2 emission reduction policy in the transport sector. The national-level elasticities were estimated by employing general method of moments (GMM) estimators, while county-level elasticities were calculated by considering the weight of each fuel type share at county and national levels. Own prices, per capita income, and per capita vehicle stocks were statistically significant at national level in determining gasoline and diesel demand. The calculated regional price elasticities showed variation between counties, with the highest being almost 4 times higher than the lowest in absolute terms. A simulation of fuel taxes to achieve the Swedish 2030 emission target for the transport sector under the national and regional price elasticities indicated minor differences at the national level with respect to CO2 taxes, costs and regressivity in the taxes. The results showed considerable differences at the regional level where costs and carbon tax payments can be considerably higher for some counties with the use of national price elasticities and the opposite is the case for other counties.

Key Words

Sweden ; Region ; Elasticity ; Fuel Demand ; Carbon Tax ; Dynamic Panel Data

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