scholarly journals Green Procurement Decisions with Carbon Leakage by Global Suppliers and Order Quantities under Different Carbon Tax

2019 ◽  
Vol 11 (13) ◽  
pp. 3710 ◽  
Author(s):  
Rena Kondo ◽  
Yuki Kinoshita ◽  
Tetsuo Yamada

Manufactures have been pressed to reduce greenhouse gas (GHG) emissions by environmental regulations and policies. Towards to reduction of GHG emissions, a carbon tax has been already introduced in 40 countries. Owing to different carbon prices among countries, there are potential risks of carbon leakage, where manufacturers transfer production operations to the countries with lower taxes to pursue lower costs. Moreover, procurement costs and GHG emissions vary by country because of economic conditions and electric energy mixes. Therefore, total GHG emissions could be globally reduced if manufactures relocate their production bases or switch suppliers in the country with lower GHG emission levels. This study proposes a green procurement decision for the supplier selection and the order quantity for minimizing GHG emission and costs considering the different carbon taxes in different countries. First, a bill of materials for each part is constructed through the life cycle inventory database with the Asian international input/output tables for a case study. Second, a green procurement decision considering the different carbon prices is formulated using integer programming. Finally, the results, including carbon leakage, are analyzed from the viewpoint of manufacturers, governments, and global perspectives.

2021 ◽  
Vol 226 ◽  
pp. 00047
Author(s):  
Washington Purba ◽  
Erkata Yandri ◽  
Roy Hendroko Setyobudi ◽  
Hery Susanto ◽  
Satriyo Krido Wahono ◽  
...  

Sheet Glass Industry is one industry that uses 75 % natural gas energy and 25 % electricity. Using the Intergovernmental Panel on Climate Change, IPCC-2006 emission calculation method, the average greenhouses gas (GHG) emissions obtained from the calcination process obtained 112 211 t CO2 yr–1 per plant and an average emission factor (EFkl) of 0.18 CO2 t–1 yr–1 of pull. With the technology of converting heat into electrical energy, residual combustion as flue gases has the potential to be used to produce electrical energy. Referring to the analysis and calculation; one of factories has potential to generate 0.8 MW to 3 MW electric energy. It’s efficiency of 10 % to 40 % so that it can be calculated as a component of GHG emission reductions whose value is 4.6 t CO2 yr–1 to 18.7 t CO2 yr–1 per plant. With this reduction, each of the GHG emission and emission factors per plant dropped to 93 442 t CO2 yr–1 and 0.16 CO2 t-pull–1.


Author(s):  
Makoto Sugino

Abstract The 2 °C target of the Paris Agreement has stimulated the implementation of carbon reducing policies such as carbon taxes and emission trading schemes, which explicitly applies a price on carbon emitting fuels. However, OECD (2016) reports that the effective carbon rate must be at least 30 Euros per ton of CO2. The effective carbon rate includes the implicit carbon price, e.g. energy taxes, along with the explicit carbon price. Previous studies have focused on the effects of explicit carbon prices. In this chapter, we will focus on the effective carbon rate and estimate the effects of carbon policies that increase the effective carbon rate to the 30 Euro threshold. We find that the short-term effect of a carbon tax that raises the effective carbon rate for all industries above 30 Euros will not only effect energy intensive industries, but also downstream industries that already have high effective carbon rates. Furthermore, we find that the carbon tax implemented in 2012 increase the average effective carbon rate, but increases the difference between taxed emitters and non-taxed emitters. Thus, tax exemption for energy intensive industries sacrifices economic efficiency.


2021 ◽  
Vol 13 (16) ◽  
pp. 9026
Author(s):  
Augusto Mussi Alvim ◽  
Eduardo Rodrigues Sanguinet

This study analyzes the impacts of reducing greenhouse gas (GHG) emissions on the meat and dairy industries. To achieve this goal, the Global Trade Analysis Project (GTAP) database was used in a Computable General Equilibrium (CGE) setting, which allows for the inclusion of carbon taxes and the definition of four alternative environmental policies scenarios using both Global Warming Potential (GWP) and Global Temperature Potential (GTP) as GHG emissions measures. All scenarios analyze the main effects of carbon-based tax economic instruments on the industry and national production, trade, and emissions, comparing the results for different measures of GHG, GWP, and GTP from the Greenhouse Gas Emissions Estimation System (SEEG) sectoral Brazilian emissions database. In contrast with other industries, relatively lower taxes on the meat and dairy industries seem to be the most adequate in terms of cost distribution in the Brazilian economic structure when only the GWP measure is considered. Urban activities and less-methane-intensive industries benefit from climate change policies designed using GWP-based rather than GTP-based carbon taxes. The article also highlights the importance of a gradual introduction of carbon taxes, allowing the most vulnerable industries a transition moment to adopt clean technologies and/or redirect economic activity to less-GHG-emitting segments.


Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1986
Author(s):  
Katsuyuki Nakano ◽  
Ken Yamagishi

The introduction or strengthening of a carbon tax is being considered in many countries as an economic policy instrument to reduce greenhouse gas (GHG) emissions. However, there is no study analyzing the impact of a carbon tax increase in a uniform method for various products, reflecting the energy taxes and exemptions. Therefore, this study analyzes the price changes of products associated with the introduction of a stronger carbon tax, using Japan as an example. A process-based life cycle assessment database was used to enable a detailed product-level analysis. Five scenarios with different taxation amounts and methods were analyzed. The results show that price changes vary greatly by industry sector and product, even within the same industry sector. For example, seasonal vegetables and recycled plastics are less affected by carbon tax increases. Imported products, such as primary aluminum, are not affected by the Japanese carbon tax change, indicating a risk of carbon leakage. If GHGs other than CO2 are also taxed, the price of CH4 and N2O emitting products, such as rice and beef, would rise significantly. The method presented in this paper enables companies to assume price changes in procured products due to carbon taxes and policymakers to analyze the impact of such taxes on products.


Author(s):  
Jack Williams ◽  
Reza Alizadeh ◽  
Janet K. Allen ◽  
Farrokh Mistree

Abstract In supply chain network design, a retailer may determine the number and locations of facilities based on the cost of opening the facility, a customer driving to the facility, and a replenishment truck driving to the facility from a warehouse. However, this does not include the system’s greenhouse gas (GHG) emissions. Given the existential threat posed by global warming, it is pertinent to consider how the design of the system affects its GHG emissions. We model the supply chain as a network of customers and store locations, with customers driving in cars to and from stores and the retailer resupplying the stores from a central warehouse. The number and location of stores is determined while minimizing the GHG emission. Our contributions are (1) to remove the assumption of uniform demand, and instead build a model of a GSC based on population data; (2) to model the GSC as a two-echelon k-median problem. We conduct a sensitivity analysis to study the effect of a carbon tax in encouraging a greener system considering various scenarios under which emissions might increase or decrease. Specific scenarios lead to a lower overall GHG emission. For example, doubling the fuel efficiency of cars decreases emissions by 46% compared to the baseline scenario. The proposed design approach is not limited to GSC design and can be extended to many design problems, including manufacturing, material design, and healthcare.


Author(s):  
Whitney G. Colella ◽  
Stephen H. Schneider ◽  
Daniel M. Kammen ◽  
Aditya Jhunjhunwala ◽  
Nigel Teo

The Maximizing Emission Reductions and Economic Savings Simulator (MERESS) is an optimization tool that allows users to evaluate avant-garde strategies for installing and operating combined heat and power (CHP) fuel cell systems (FCSs) in buildings. This article discusses the deployment of MERESS to show illustrative results for a California campus town, and, based on these results, makes recommendations for further installations of FCSs to reduce greenhouse gas (GHG) emissions. MERESS is used to evaluate one of the most challenging FCS types to use for GHG reductions, the Phosphoric Acid Fuel Cell (PAFC) system. These PAFC FCSs are tested against a base case of a CHP combined cycle gas turbine (CCGT). Model results show that three competing goals (GHG emission reductions, cost savings to building owners, and FCS manufacturer sales revenue) are best achieved with different strategies, but that all three goals can be met reasonably with a single approach. According to MERESS, relative to a base case of only a CHP CCGT providing heat and electricity with no FCSs, the town achieves the highest 1) GHG emission reductions, 2) cost savings to building owners, and 3) FCS manufacturer sales revenue each with three different operating strategies, under a scenario of full incentives and a $100/tonne carbon dioxide (CO2) tax (Scenario D). The town achieves its maximum CO2 emission reduction, 37% relative to the base case, with operating Strategy V: stand alone operation (SA), no load following (NLF), and a fixed heat-to-power ratio (FHP) [SA, NLF, FHP] (Scenario E). The town’s building owners gain the highest cost savings, 25%, with Strategy I: electrically and thermally networked (NW), electricity power load following (ELF), and a variable heat-to-power ratio (VHP) [NW, ELF, VHP] (Scenario D). FCS manufacturers generally have the highest sales revenue with Strategy III: NW, NLF, with a fixed heat-to-power ratio (FHP) [NW, NLF, FHP] (Scenarios B, C, and D). Strategies III and V are partly consistent with the way that FCS manufacturers design their systems today, primarily as NLF with a FHP. By contrast, Strategy I is avant-garde for the fuel cell industry, in particular, in its use of a VHP and thermal networking. Model results further demonstrate that FCS installations can be economical for building owners without any carbon tax or government incentives. Without any carbon tax or state and federal incentives (Scenario A), Strategy I is marginally economical, with 3% energy cost savings, but with a 29% reduction in CO2 emissions. Strategy I is the most economical strategy for building owners in all scenarios (Scenarios A, B, C, and D) and, at the same time, reasonably achieves other goals of large GHG emission reductions and high FCS manufacturer sales revenue. Although no particular building type stands out as consistently achieving the highest emission reductions and cost savings (Scenarios B-2 and E-2), certain building load curves are clear winners. For example, buildings with load curves similar to Stanford’s Mudd Chemistry building (a wet laboratory) achieve maximal cost savings (1.5% with full federal and state incentives but no carbon tax) and maximal CO2 emission reductions (32%) (Scenarios B-2 and E-2). Finally, based on these results, this work makes recommendations for reducing GHG further through FCS deployment. (Part I of II articles discusses the motivation and key assumptions behind the MERESS model development (Colella 2008).)


2021 ◽  
Author(s):  
Saltanat Koishymanova ◽  
Danil Kayashev ◽  
Brian Schwanitz ◽  
Tolegen Sadvakassov ◽  
Yury Ponomarenko

Abstract The transition to a climate-neutral society is both an urgent technical challenge and yet long-term CAPEX heavy requiring huge investments from industry and governments. Major oil and gas (O&G) operators around the globe have already established their decarbonization targets and even though upstream accounts for two-thirds of total emissions in the petroleum industry, both new well construction designs, and improved workover operations are proving to be effective measures in minimizing greenhouse gas (GHG) emissions while being economically viable. A novel completion technology has been installed in 114 wells in Russia since 2018 to eliminate sustained annular casing pressure (SAP) throughout the lives of wells and combat the associated release of carbon dioxide (CO2) and methane into the atmosphere. Since methane is much more powerful and has a 28-34 times more global warming potential compared to CO2 over the hundreds of years, and 84-86 times more potent over a 20-year timeframe respectively, these types of simple, yet efficient solutions represents enormous benefits to operators in reducing their carbon taxes while tackling climate change. Moreover, the installation of this technology resulted in reliable downhole well integrity of traditionally problematic wells, without the need for subsequent squeeze cementing operations. These types of completion solutions set both in an open and cased hole, allow operators not just to customize their cementing program and meet regulatory approvals, but also greatly reduce their reported carbon emissions. A summary of the results and efficiencies achieved with these installations will be presented and will be compared to conventional technologies. In addition, more than 15,000 lightweight e-line intervention operations have been performed both in Russia and Kazakhstan since 2011 which contributed to fewer emissions of hazardous greenhouse gases into the air versus conventional coiled tubing operations. These types of light interventions use less diesel to operate and with fewer people and equipment, leave a smaller carbon footprint on each well location which in turn makes a difference when it comes to GHG emission reduction. A comparison breakdown of coiled tubing versus e-line mechanical interventions will be statistically analyzed. This paper will illustrate how these newer technologies contributed to GHG emission reduction and how simultaneously economical efficiencies were achieved during well completion and intervention activities through reduced rig time and faster job execution compared to conventional methods. It will also review case histories from fields across the region using these installations and analyze each method. The field data will present the development, installation, and operational sequence and explain how each setup was tailored to meet both specific operational needs and to reduce greenhouse emissions, mainly by minimizing gas flaring. Widespread implementation of such technologies would help operators meet their emission targets and contribute to the reduction of the earth's climate change.


2020 ◽  
Vol 12 (18) ◽  
pp. 7667
Author(s):  
Alberto Gianoli ◽  
Felipe Bravo

A higher price of CO2 emissions is required to enhance the industrial transition and investment in low-carbon technology. However, the specific mechanisms to tackle the risk of carbon leakage and create an attractive environment for green investment are highly contested in the academic literature. Opposing perspectives regarding the appropriateness and desirability of government intervention in the economy result in different approaches to the decarbonisation of industrial processes. This research builds on existing academic knowledge in the fields of carbon leakage, induced innovation and government intervention to assess the effects of a carbon tax in the industrial cluster of the Port of Rotterdam within the context of a carbon tax on industrial GHG emissions proposed in the Dutch National Climate Agreement. The main finding of this study shows that investment leakage constitutes the main threat instead of carbon leakage in the face of a higher carbon price. Regarding the theory of induced innovation, limited abatement options are available for the industrial cluster and there is the need to scale up existing technologies. Lastly, to both tackle the risk of investment leakage and enhance the scaling up of low-carbon technologies, government intervention in the form of regulations, subsidies and enabling conditions is vital.


2014 ◽  
pp. 70-91 ◽  
Author(s):  
I. Bashmakov ◽  
A. Myshak

This paper investigates costs and benefits associated with low-carbon economic development pathways realization to the mid XXI century. 30 scenarios covering practically all “visions of the future” were developed by several research groups based on scenario assumptions agreed upon in advance. It is shown that with a very high probability Russian energy-related GHG emissions will reach the peak before 2050, which will be at least 11% below the 1990 emission level. The height of the peak depends on portfolio of GHG emissions mitigation measures. Efforts to keep 2050 GHG emissions 25-30% below the 1990 level bring no GDP losses. GDP impact of deep GHG emission reduction - by 50% of the 1990 level - varies from plus 4% to minus 9%. Finally, very deep GHG emission reduction - by 80% - may bring GDP losses of over 10%.


Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 749
Author(s):  
John H. Scofield ◽  
Susannah Brodnitz ◽  
Jakob Cornell ◽  
Tian Liang ◽  
Thomas Scofield

In this work, we present results from the largest study of measured, whole-building energy performance for commercial LEED-certified buildings, using 2016 energy use data that were obtained for 4417 commercial office buildings (114 million m2) from municipal energy benchmarking disclosures for 10 major U.S. cities. The properties included 551 buildings (31 million m2) that we identified as LEED-certified. Annual energy use and greenhouse gas (GHG) emission were compared between LEED and non-LEED offices on a city-by-city basis and in aggregate. In aggregate, LEED offices demonstrated 11% site energy savings but only 7% savings in source energy and GHG emission. LEED offices saved 26% in non-electric energy but demonstrated no significant savings in electric energy. LEED savings in GHG and source energy increased to 10% when compared with newer, non-LEED offices. We also compared the measured energy savings for individual buildings with their projected savings, as determined by LEED points awarded for energy optimization. This analysis uncovered minimal correlation, i.e., an R2 < 1% for New Construction (NC) and Core and Shell (CS), and 8% for Existing Euildings (EB). The total measured site energy savings for LEED-NC and LEED-CS was 11% lower than projected while the total measured source energy savings for LEED-EB was 81% lower than projected. Only LEED offices certified at the gold level demonstrated statistically significant savings in source energy and greenhouse gas emissions as compared with non-LEED offices.


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