Search Results (34)

The untapped potential of wave energy offers another alternative to diversifying renewable energy sources and addressing climate change by reducing CO₂ emissions. However, development costs to mature the technology remain significant hurdles to adoption at scale and the technology often must compete against other marine energy renewables such as offshore wind. Here, we conduct a real option valuation that includes the uncertain market price of wholesale electricity and managerial flexibility expressed in determining future optimal decisions. We demonstrate the probability that the project’s embedded compound real option value can turn a negative net present value wave energy project to a positive expected value. This change in investment decision uses decision tree analysis, where real options are developed as decision nodes, and models the uncertainty as a risk-neutral stochastic process using chance nodes. We also show how our results are analogous to a financial out-of-the-money call option. Our results highlight the distribution of outcomes and the benefit of a staged long-term investment in wave energy systems to better understand and manage project risk, recognizing that these probabilistic results are subject to the ongoing evolution of wholesale electricity prices and the stochastic process models used here to capture their future dynamics. Lastly, we show that the near-term optimal decision is to continue to fund ongoing development of a reference architecture to a higher technology readiness level to maintain the long-term option to deploy such a renewable energy system through private investment or private–public partnerships. Full article

In the context of the Environmental Phillips Curve hypothesis, this study investigates the impact of unemployment on environmental quality in ten emerging economies with the highest carbon emissions, as identified in the International Monetary Fund’s 2015 World Economic Outlook. The primary aim of this study is to estimate the effects of income, natural gas usage, renewable energy usage, unemployment, and population size on carbon dioxide emissions in the selected countries. The study utilizes panel data from 1990 to 2019 and employs an Autoregressive Distributed Lag model (ARDL) to evaluate the short- and long-run relationships between these variables. Findings obtained using the Pooled Mean Group (PMG) estimator indicate that both income and population size have a significant positive impact on air pollution levels, whereas natural gas consumption and the use of renewable energy correlate with a decrease in emissions. The results support a negative correlation between unemployment and environmental degradation, aligning with the EPC. The error correction term suggests that the process returns to equilibrium in about 2.8 years. The findings are validated through robustness tests utilizing the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimators. This study offers important insights for environmental policymaking in these emerging economies, emphasizing the importance of sustainable development strategies and green energy adoption. Full article

The environmental problems caused by carbon emission have become the focus of worldwide attention. Effective control of carbon emissions cannot be achieved without the protection of the rule of law. Environment public interests litigation is a prominent innovation in the judicial system, and its role in supervising the government to perform its regulatory duties on carbon reduction and regulating the carbon emission behaviors of enterprises and the public deserves discussion. The paper selected the panel data from 274 prefecture-level cities from 2013 to 2021 and analyzed the impact of a procuratorial public interest litigation pilot policy on carbon emission control by using the double difference method. The research found that the procuratorial public interest litigation pilot policy can effectively curb carbon emissions. Heterogeneity analysis showed that in cities with relatively low level of green innovation, the negative correlation between procuratorial public interest litigation pilot policies and carbon emissions is more significant. Compared with the eastern region, in the central and western regions, especially in the central region, where the concept, policy, and funding of carbon emission governance are relatively weak, the implementation of the pilot policy of procuratorial public interest litigation had a more obvious effect on carbon emission governance. Mechanism tests showed that procuratorial public interest litigation policies reduce carbon emissions by reducing energy consumption and increasing public participation in environmental protection. The study will provide an empirical basis for the carbon emission reduction effect on pilot policy of procuratorial public interest litigation and will offer certain theoretical recommendations for improving the procuratorial public interest litigation system in the ecological environment field. Full article

The pursuit of sustainable development has received much attention recently as nations confront increasing environmental, social, and economic difficulties. In order to comprehend sustainable development’s many facets and provide a plan for achieving them, this study conducts a thorough analysis of the concept. The study’s dependent variable, environmental footprint, is based on a research model. On the other hand, financial inclusion, human capital development, green growth, technological innovation, and renewable energy are the independent factors. This study used secondary data collected between 1990 and 2022. To better capture the variable indicators, the index for green growth is constructed using the entropy-weighted technique. The panel dataset problem was resolved by using diagnostic tests, which include cointegration, correlation, cross-sectional dependence, variance inflation factor (VIF), and stationarity tests. The findings of the diagnostic test indicated that a fully modified ordinary least square would be the best approach to use with this panel. According to the findings, the long-term variance is 55%. Renewable energy, green growth, and technological innovation have a substantial negative link with financial risk, while greenhouse gas emissions, financial inclusion, and human capital development have a significant and positive relationship. Environmental sustainability may benefit from policies that the government creates and funds for sustainable development. The findings imply that the government should provide incentives in terms of financial resilience to technological innovations and natural resources so that they would switch to green sources and help to improve the quality of the environment that would be sustainable. Full article

Eskom’s power plants in South Africa face frequent breakdowns due to a lack of maintenance and increasing energy demand. The high dependence of South Africa on coal for power generation, which is a resource that significantly contributes to carbon dioxide (CO₂) emissions that impact the environment negatively, could be reduced by considering renewable energy sources. Renewable energy supply, dependent on private sector funding and economic growth, is seen as a solution to energy and environmental problems. The study aimed to examine if financial development and economic growth impact renewable energy supply in South Africa and to discover if co-integration exists between these variables, including the variables defined as the determinants of renewable energy supply, namely: CO₂ emission by coal power generation; secondly, coal electricity supply; thirdly, coal price changes; and lastly, load shedding levels. The research gap identified for the study is twofold. Firstly, there is a lack of research on the relationship between renewable energy supply, financial development, and economic growth, specifically in South Africa. Furthermore, the existing research on these variables in other countries has produced inconclusive results. Secondly, minimal research has been conducted on how economic growth impacts renewable energy supply in emerging markets. Thus, the present study sought to bridge the gap and contribute to the scientific body of knowledge related to the drivers of renewable energy supply. The autoregression distributed lag (ARDL) model was employed to test if economic growth and financial development have a statistically significant impact on renewable energy supply, as well as to test the direction of the relationship, for an observation period from 1990 to 2021. The results proved that financial development and economic growth were reported to have a statistically significant positive impact on renewable energy supply in the long run and the short run. A study on the relationship between financial development, economic growth, and renewable energy supply in South Africa can influence policy reforms and assist the National Energy Regulator of South Africa (NERSA) and the government in developing and implementing renewable energy policies that encourage the deployment of renewable energy infrastructure to increase renewable energy supply, particularly regarding factors associated with addressing challenges in financial development and economic growth. Full article

The primary aim of this study was to assess the investment activity of basic local government units in the development of renewable energy sources co-financed by EU funds depending on CO₂ emissions and other socio-economic conditions in terms of regions of Poland in the years 2007–2020. Empirical studies aimed at the verification of the research hypothesis that “the greatest investment activity in local projects co-financed from EU funds related to the development of renewable energy sources is observed for local government units in regions with highest CO₂ emissions”. Empirical studies were conducted based on data from the Ministry of Investment and Economic Development in Poland, the Local Data Bank, and the National Centre for Emissions Management. Thus, the conducted analyses provide both cognitive and applicatory values for the establishment of an appropriate energy transition policy in individual regions of Poland, which may be implemented by local government authorities within the current financial framework. Data concerning CO₂ emissions at the regional level were estimated by applying the original disaggregation method as modified by the authors, which made it possible to fill the research gap resulting from the lack of data on emissions at the regional level. In order to show the regional diversification in investment activity of local government units in terms of renewable energy sources, its multi-faceted analysis was conducted by applying the Ward method. Clusters of regions with similar investment activity of local government units were described based on characteristics included in the typological classification (so-called active characteristics) and selected indexes showing CO₂ emission levels, as well as selected socio-economic indexes (so-called passive characteristics). Based on the empirical studies, the research hypothesis presented in this paper was negatively verified. Considering both multiannual financial frameworks, the EU financial support for the development of renewable energy sources was used primarily by local government units of a predominantly agricultural character, and less advanced in terms of their development but exhibiting conditions conducive to renewable energy development. Full article

The development of new energy vehicles has become a common choice for countries worldwide to reduce greenhouse gas emissions and improve the global ecological environment, with China being no exception. However, challenges, such as finding charging stations, accessing residential areas, and highway charging, have hindered the green and high-quality growth of the new energy vehicle industry. This study, set against the backdrop of China’s 2018 policy to gradually redirect local purchase subsidy funds for new energy vehicles towards supporting the construction and operation of charging infrastructure, utilizes panel data from 282 prefecture-level cities from 2016 to 2021. A difference-in-differences model is constructed to compare the impact of infrastructure development on carbon emissions before and after the policy’s implementation. The study finds that policy has a negative effect on carbon emissions, especially in the second and third year after the policy’s implementation. Even after controlling for variables such as residents’ wealth levels, population size, environmental pollution, energy consumption, and government support, the results remain significant. Heterogeneity analysis reveals that the effect of the promotion of charging infrastructure on carbon emissions is greater in southern and central parts of China. Full article

Loss and damage from climate change have risen to a prominent position on the international agenda. At COP27 in 2022, the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC) ratified a decision to establish a loss and damage fund to compensate low- and middle-income countries that are suffering negative impacts from climate change. The fund is meant to address the Global Adaptation Gap, which describes the rising cost of adaptation needed to cope with climate change impacts due to delayed action to curb greenhouse gas emissions and remove greenhouse gases from the atmosphere. This essay highlights issues around loss and damage from climate change from a variety of natural and social science perspectives. From three months of discussions, an interdisciplinary perspective and research agenda on this topic have crystallised, which is outlined here. Given that the implementation of the loss and damage fund still needs negotiation and commitment from signatories to the UNFCCC, it is timely now to address some important knowledge gaps on how loss and damage can be measured, quantified, valued, understood, communicated, and adapted to. Hence, it is necessary to understand the complex interactions between people, politics, nature, and climate in this interdisciplinary context. Full article

The EU Emissions Trading System (ETS) is the largest cap-and-trade scheme for CO₂ emissions globally. This study evaluates the impact on CO₂-equivalents emission of the increased stringency of Phase 3, which marked a significant shift from the previous phases of the EU ETS and significantly reduced the number of emissions permits (EU Allowances—EUA) freely allocated. Our analysis reveals that the increase of purchased EUA had a statistically significant, substantial impact on emissions reduction from Phase 2 to Phase 3, with a decrease in emissions of approximately half a ton for each additional allowance bought. Our (conservative) estimate of the total reduction in emission is 422 MtCO₂-eq, 22.5% of the average yearly EU ETS emissions or 4.3–3.0% of emissions in Phases 2 and 3, respectively. Under Article 10c of the ETS directive, lower-income Member States have been allowed to continue the free allocation of EUA to electricity-generating installations during Phase 3 to provide more time and resources for modernization. We show that such derogation had a sizeable and significant detrimental impact on the achievement of emission reduction targets, leading to an increase in emissions of about half a ton for each additional allowance bought; a result that highlights the need for increased efforts on support measures (e.g., the Modernization Fund). We also investigate the impact of the EU ETS on output, capital productivity, and labour productivity. Our analysis indicates that the performances were not negatively impacted by the tightening in regulation that occurred between Phases 2 and 3. We also find no evidence that the derogation status impacted performances, which further ameliorates the concerns about the potential intra-EU competitive distortions induced by the regulation. Our results cast a favourable light on the reduction of the free allocation of EUA and the tightening of the regulation implemented in Phase 4 of the EU ETS. Full article

What would it take for aviation to become climate-neutral by 2050? We develop and model a trajectory for aviation to reduce its CO₂ emissions by 90% by 2050, down to a level where all residual emissions can be removed from the atmosphere without crowding out other sectors that also need negative emissions. To make emitters pay for the carbon removal, we propose and model a negative emissions fund for airlines (NEFA). We show that it can pay for the removal of all CO₂ emitted by aviation from 2030 onwards, for a contribution to the fund of USD 200–250 per ton CO₂ emitted. In our baseline simulation, USD 3.3 trillion is invested by the fund over 40 years in high-quality carbon removal projects designed for biodiversity and societal co-benefits. While we do propose a number of governance principles and concrete solutions, our main goal is to start a societal dialogue to ensure aviation becomes both responsible and broadly beneficial. Full article

With the continuous practice of the “Belt and Road” initiative, the countries along the “Belt and Road” have achieved rapid social and economic development. However, environmental problems have become increasingly prominent. Around the world, there are comments that China’s “Belt and Road” initiative is a result of resource plundering, transfer of backward production capacity, and environmental degradation of countries along the line. This study quantitatively evaluated the static, dynamic, linear, and non-linear effects of China’s foreign direct investment on the carbon emissions of countries along the line. The results showed that: (1) The direct effect of China’s foreign direct investment on the carbon emissions of countries along the route was significantly negative. (2) The economic scale and industrial structure effects of China’s foreign direct investment increased the carbon emissions of countries along the route. The production technology effect suppressed the carbon emissions of countries along the route and played a leading role. (3) The estimation results of the system generalized method of moments showed that the carbon emissions of countries along the route were significantly affected by the lag period, but the impact was small. (4) The results of the threshold regressive model showed that the GDP and proportion of industrial added value had significant threshold effects on the carbon emissions effect of China’s outward foreign direct investment. When the GDP of countries along the route exceeded 7.2696, China’s outward foreign direct investment carbon emissions reduction effect could not be realized; when the proportion of the industrial added value of countries along the route was lower than 4.0106, China’s outward foreign direct investment carbon emission reduction effect could not be realized. Based on the research conclusion, we concluded that China and countries along the “Belt and Road” should strengthen cooperation on carbon emissions reduction, jointly promote low-carbon construction of industrial parks, accelerate cooperation on green energy projects, and establish a green development fund to achieve sustainable development of the countries along the “Belt and Road”. Full article

This paper bridges the gap in the literature by employing the novel quantile-on-quantile (QQ) approach, the quantile regression approach, and the nonparametric Granger causality test in quantiles to assess the effect of international trade on consumption-based carbon emissions (CCO₂e) in Uruguay. Our study incorporates other drivers of CCO₂ emissions, such as financial development and renewable energy, into the model. We find that, in the majority of the quantiles, exports, financial development, and renewable energy exert a negative impact on CCO₂e, and the influence of imports on CCO₂e is positive in all quantiles. Moreover, the quantile regression approach is used as a robustness test for the quantile-on-quantile approach. The causal interaction from the regressors to CCO₂e is evaluated using the nonparametric Granger causality test in quantiles. The outcome of the nonparametric Granger causality test in quantiles suggests that imports, exports, renewable energy, and financial development can predict CCO₂e at different quantiles. Based on these outcomes, we recommend that the financial sector must strengthen its focus on giving funding to enterprises that embrace environmentally friendly technologies and incentivize them to employ other energy-efficient technologies for manufacturing reasons, thereby preventing environmental deterioration. Full article

Despite the dramatic increase in food production thanks to the Green Revolution, hunger is increasing among human populations around the world, affecting one in nine people. The negative environmental and social consequences of industrial monocrop agriculture is becoming evident, particularly in the contexts of greenhouse gas emissions and the increased frequency and impact of zoonotic disease emergence, including the ongoing COVID-19 pandemic. Human activity has altered 70–75% of the ice-free Earth’s surface, squeezing nature and wildlife into a corner. To prevent, halt, and reverse the degradation of ecosystems worldwide, the UN has launched a Decade of Ecosystem Restoration. In this context, this review describes the origin and diversity of cultivated species, the impact of modern agriculture and other human activities on plant genetic resources, and approaches to conserve and use them to increase food diversity and production with specific examples of the use of crop wild relatives for breeding climate-resilient cultivars that require less chemical and mechanical input. The need to better coordinate in situ conservation efforts with increased funding has been highlighted. We emphasise the need to strengthen the genebank infrastructure, enabling the use of modern biotechnological tools to help in genotyping and characterising accessions plus advanced ex situ conservation methods, identifying gaps in collections, developing core collections, and linking data with international databases. Crop and variety diversification and minimising tillage and other field practices through the development and introduction of herbaceous perennial crops is proposed as an alternative regenerative food system for higher carbon sequestration, sustaining economic benefits for growers, whilst also providing social and environmental benefits. Full article

Green energy is a crucial component in addressing expanding energy demands and combating climate change, but the possible negative repercussions of these technologies are frequently disregarded. Green energy’s deployment is tied to environmentally sustainable development goals (SDGs). It can only be achieved by scaling up the finance of investment that provides environmental benefits through new financial instruments and new policies, such as green banks, green bonds, community-based green funds, green central banking, etc. In an effort to address the issues with IPAT and ImPACT, this study employed the STIRPAT model approach, which is a proven framework for energy economics analysis. The author gathers yearly data spanning 2002–2018 for six ASEAN member countries with the aim of investigating the relationship between CO₂ emissions, green finance, energy efficiency, and the green energy index (GEX). After preliminary tests, the study employed the Westerlund test and Johansen Fisher test for long-term equilibrium and estimated the Granger causal links between variables using the generalized method of moments (GMM). The results indicate that green bonds are an effective technique for promoting green energy projects and considerably reducing CO₂ emissions. Therefore, governments should establish supporting policies with a long-term perspective to increase the investment of green energy projects related investment from private participants to ensure sustainable growth and address environmental challenges. This strategy may be appropriate during and after the COVID-19 period. Full article

The carbon emissions of the construction industry pose a significant challenge to implementing China’s carbon peaking and carbon neutrality goals. This study considered how to promote stable green building (GB) development. First, evolutionary game theory (EGT) was applied to examine the interaction mechanism of complex behaviors between governments and developers, constructing two scenarios of static and dynamic subsidies. Second, we proposed the ideal state where the government does not give funding subsidies and developers take the initiative to build GBs. On this basis, the simulation method was used to verify the game models and primary conclusions. Finally, a detailed sensitivity analysis of selected parameters was undertaken. The results demonstrated that subsidy policy phase-outs could help in the development of GBs; the probability of an ideal state was positively correlated with government supervision and punishment, and it was negatively correlated with government funding subsidies. The research results can be used as a reference for the government to improve incentive measures and decision support for stakeholders to adjust their strategies. Full article