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This chapter assesses the determinants of CO₂ emissions in different German and UK industrial sectors by adopting two approaches well established in the economic literature, i.e. the estimation of energy demand and of an environmental Kuznets curve. The first approach focuses on the effect of the energy price alongside economic activity. By estimating industrial energy demand, the effect of future energy taxes and price increases on the consumption can be assessed. In the second approach, the focus is more on economic activity and the shape of the relationship between economic activity and CO₂ emissions. The effect of a number of variables in this relationship is assessed, namely the energy price, the consumption of capital, materials, labour, and services, and the intensity of energy use.

This chapter analyses the implications for China of a new post-Kyoto climate change regime based on cumulative per-capita CO2 emissions. Nearly half of the global increase in carbon emissions over the last decade has come from China alone. Great importance must be attached to China's environmental and energy policies and its involvement in shaping the post-Kyoto climate change regime. The chapter describes several proposals for post-Kyoto regimes which have been discussed internationally, showing that all of them have drawbacks. For example, the biggest disadvantage of approaches taken so far is that they fail to make allowance for the fact that China is becoming increasingly responsible for future concentrations of CO2 which are now accumulating in the atmosphere. Nevertheless, those approaches employ a fair mechanism for allocating emissions rights in terms of per-capita allowances.

Chapter 1 begins by stressing the severity of climate change (CC) and showing how, contrary to popular belief, atomic energy is not a viable solution to CC. Many scientists and most market proponents agree that renewable energy and energy efficiencies are better options. The chapter also shows that government subsidies for oil and nuclear power are the result of flawed science, poor ethics, short-term thinking, and special-interest influence. The chapter has 7 sections, the first of which surveys four major components of the energy crisis. These are oil addiction, non-CC-related deaths from fossil-fuel pollution, nuclear-weapons proliferation, and catastrophic CC. The second section summarizes some of the powerful evidence for global CC. The third section uses historical, ahistorical, Rawlsian, and utilitarian ethical principles to show how developed nations, especially the US, are most responsible for human-caused CC. The fourth section shows why climate-change skeptics, such as “deniers” who doubt CC is real, and “delayers” who say that it should not yet be addressed, have no valid objections. Instead, they all err scientifically and ethically. The fifth section illustrates that all modern scientific methods—and scientific consensus since at least 1995—confirm the reality of global CC. Essentially all expert-scientific analyses published in refereed, scientific-professional journals confirm the reality of global CC. The sixth section of the chapter shows how fossil-fuel special interests have contributed to the continued CC debate largely by paying non-experts to deny or challenge CC. The seventh section of the chapter provides an outline of each chapter in the book, noting that this book makes use of both scientific and ethical analyses to show why nuclear proponents’ arguments err, why CC deniers are wrong, and how scientific-methodological understanding can advance sound energy policy—including conservation, renewable energy, and energy efficiencies.

Design of environmental taxes are picked up as an argument of whether or not environmental taxes should be practically introduced into the Japanese tax system, since it is still immature. It is necessary to investigate the background of environmental issues and protection in the past, and possible way of designing a desirable form of environmental taxes, such as a carbon/ energy tax.

This chapter analyses the results of the scenario simulations delivered by the GINFORS model regarding the economic and environmental impact of an ETR implemented in Europe on the rest of the world. We analyse the development of European trade relations with other world regions in order to investigate changes in competitiveness of different European industries on global markets. The economic consequences (in terms of economic growth, investment, international trade, etc.) of the implementation of an ETR in Europe for other world regions, divided into three country groups (other OECD countries; emerging/anchor countries; rest of the world) are described. The chapter also provides a quantitative analysis of changing global patterns in natural resource extraction, energy use, and CO₂ emissions in all world regions due to the implementation of a European ETR.

This chapter focuses on the science, economics, and engineering aspects of reducing CO₂ emissions. Carbon dioxide poses a different problem than other pollutants because it remains suspended in the atmosphere for very long periods of time and its effects are not limited to the emitting country's borders. Even if emissions were stabilized at current rates, CO₂ concentrations would continue to rise for a number of years. Increased economic development will only accelerate the rate of increase in CO₂ concentrations. The benefits from carbon abatement, although small today, are likely to increase significantly in the future as CO₂ concentrations reach much higher levels. Even though the benefit–cost paradigm gives a clear conceptual framework for finding the optimal combination of strategies, solving the problem mathematically is fraught with practical difficulties.

This chapter sets out the economic challenge of advancing a climate stabilization program that can succeed in reducing global CO₂ emissions by 40 percent within 20 years, while concurrently expanding job opportunities in all regions of the world. It also presents the overall plan for the book. This chapter makes the point that, despite wide differences in levels of development across the globe, there are still only two effective ways in which any country can control its CO₂ emissions while maintaining energy consumption sufficient to support rising living standards. These are: investments to both raise energy efficiency levels and expand capacity in clean renewable energy sources.

We investigate the relationship between spot and futures prices within the EU-ETS. We conduct an empirical study on price behavior, volatility term structure and correlations in EU Allowance (EUA) contracts during the pilot trading and the first Kyoto commitment period. For the pilot trading period, the market was initially in backwardation. After the news of sufficiently high allocations, both allowance prices and convenience yields approached zero, while futures contracts referring to the Kyoto commitment period were less affected by the price drop. During Phase II, we find that the market has changed from initial backwardation to contango with significant convenience yields in futures contracts. We attribute this deviation from the cost-of-carry relationship to three main factors: low interest rates in the Eurozone; market participants’ willingness to pay a premium for a hedge against rising prices in future periods, and, the increasing level of surplus allowances and banking during Phase II.

This concluding chapter summarizes some of the information presented for the twelve different energy technologies examined in the book. The first section explores current trends in energy and some of the driving forces affecting these trends. The second section examines the electric vehicle, the bridge that can connect the electric sector with the transportation sector. The third section examines the potential for reducing carbon dioxide (CO₂) emissions in the United States by the use of renewable fuels. Following this, a summary of proven and potential reserves is presented for both nonrenewable and renewable energy types. Finally, a summary is presented for the land and energy footprint of each technology.

This chapter examines the effects of high-rise buildings on the environment, and the construction of more sustainable buildings. As of mid-2014, 46 of the 50 tallest buildings are under construction in Asia, putting enormous strains on its energy infrastructure. The energy used in operating buildings—heating, cooling, and lighting—alone accounts for more than one third of global energy use and of total CO₂ emissions. Including the energy used to produce and transport the concrete, steel, and glass, buildings account for over 40 percent of total energy consumption globally. With China responsible for more than half of the floor space built annually in the world, more energy-efficient buildings are the most cost-effective way to address energy and environmental challenges; the same is true throughout developing Asia. The Natural Resources Defense Council calculates that in China, green buildings can cut electricity use by 25 to 50 percent, water use by 40 percent, and solid waste by 70 percent, when compared to a conventional building.

This introductory chapter provides an overview of how the year 2020 brought the planet not only the worst disaster in living memory, the COVID-19 pandemic, but also the threat of climate change. By mid-2020, the level of carbon dioxide (CO₂) emissions ratcheted up to 418 ppm, the highest level in human history and likely the highest since three million years ago. With more greenhouse gases piling up, the heating will increase, which will fuel greater weather extremes that will pummel every corner of the planet. Unfortunately, many people within government and business have never received any formal education about climate change, either in their professional lives or in school. Without that education, they tend to discount the growing threats. The chapter argues that mitigation alone will no longer keep people safe; people also need to adapt. To adapt to anticipated climate risks, governments, communities, businesses, and individuals need to embark on making widespread, foundational adjustments to how and where they live and conduct business.