The levelized cost of carbon: a practical,if imperfect,method to compare CO2 abatement projects*

Calculating the cost effectiveness of projects and policies with respect to reducing carbon emissions provides a simple way for local government agencies to consider the climate impacts of their actions. Yet, defining a metric for cost-effectiveness in relation to climate change is not straightforward for several reasons. In this paper, we focus primarily on dynamics, reflecting the time value of money and how the benefits of reducing carbon emissions may change over time. We define a cost-effectiveness metric called Levelized Cost of Carbon (LCC) that carefully accounts for these dynamics. We also investigate the theoretical and practical implications and limitations of using a cost-effectiveness metric as an approach to rank projects. We apply our metric to a set of transportation projects to illustrate the insights that can be gained by such a process.

Key policy insights:

• Levelized Cost of Carbon (LCC) provides a simple way for local governments to consider climate change mitigation in decision making.

• LCC is a cost-effectiveness metric that carefully accounts for the time value of money and possible changes in the value of reducing emissions through time, thus helping local governments to make better decisions.

• LCC can be used to rank projects, with some caveats, even in the absence of a specific value for the benefits of reducing GHG emissions, thus providing flexibility in the face of uncertainty and political constraints.

     

The role of carbon plantations in mitigating climate change: potentials and costs

A methodology is presented to construct supply curves and cost–supply curves for carbon plantations based on land-use scenarios from the Integrated Model to Assess the Global Environment (IMAGE 2). A sensitivity analysis for assessing which factors are most important in shaping these curves is also presented. In the IPCC SRES B2 Scenario, the carbon sequestration potential on abandoned agricultural land increases from 60 MtC/year in 2010 to 2,700 MtC/year in 2100 for prices up to 1,000 $/tC, assuming harvest when the mean annual increment decreases and assuming no environmental, economical or political barriers in the implementation-phase. Taking these barriers into consideration would reduce the potential by at least 60%. On the other hand, the potential will increase 55 to 75% if plantations on harvested timberland are considered. Taking into account land and establishment costs, the largest part of the potential up to 2025 can be supplied below 100 $/tC (In this article all dollar values are in US dollars of 1995, unless indicated otherwise.). Beyond 2050, more than 50% of the costs come to over 200 $/tC. Compared to other mitigation options, this is relative cheap. So a large part of the potential will likely be used in an overall mitigation strategy. However, since huge emission reductions are probably needed, the relative contribution of plantations will be low (around 3%). The largest source of uncertainty with respect to both potentials and costs is the growth rate of plantations compared to the natural vegetation.     

The political economy of technology support: Making decisions about carbon capture and storage and low carbon energy technologies

This article reviews the political economy of government choice around technology support for the development and deployment of low carbon emission energy technologies, such as Carbon Capture and Storage (CCS). It is concerned with how governments should allocate limited economic resources across abatement alternatives. In particular, it explores two inter-related questions. First, should government support focus on a narrow range of options or be distributed across many potential alternatives? Second, what criteria should be considered when determining which specific technologies to support? It presents a simple economic model with experience curves for CCS and renewable energy technologies to explore the lowest cost alternatives for meeting an emission abatement objective. It then explores a variety of economic and political factors that must be considered when governments make decisions about technology support.     

Victim pressure, institutional inertia and climate change adaptation: The case of flood risk

Interviews were conducted with risk managers in a case-study area in England to determine the factors influencing the choice between more traditional, engineering based, adaptation to flood risk and those focussing on vulnerability reduction. The findings of in-depth analysis of these interviews have implications for climate change adaptation as a whole. They suggest that government policies to implement a broader range of adaptation measures might be hampered by institutional cultures formed when structural, engineered approaches were the norm. Political decentralisation and the fashion for public consultation exacerbate this effect, leaving decision-makers more responsive to the influence of those directly affected by natural hazards than they are to the needs of the wider population or to policy pronouncements by government.     

Stabilizing greenhouse gas concentrations at low levels: an assessment of reduction strategies and costs

On the basis of the IPCC B2, A1b and B1 baseline scenarios, mitigation scenarios were developed that stabilize greenhouse gas concentrations at 650, 550 and 450 and – subject to specific assumptions – 400 ppm CO₂-eq. The analysis takes into account a large number of reduction options, such as reductions of non-CO₂ gases, carbon plantations and measures in the energy system. The study shows stabilization as low as 450 ppm CO₂-eq. to be technically feasible, even given relatively high baseline scenarios. To achieve these lower concentration levels, global emissions need to peak within the first two decades. The net present value of abatement costs for the B2 baseline scenario (a medium scenario) increases from 0.2% of cumulative GDP to 1.1% as the shift is made from 650 to 450 ppm. On the other hand, the probability of meeting a two-degree target increases from 0%–10% to 20%–70%. The mitigation scenarios lead to lower emissions of regional air pollutants but also to increased land use. The uncertainty in the cost estimates is at least in the order of 50%, with the most important uncertainties including land-use emissions, the potential for bio-energy and the contribution of energy efficiency. Furthermore, creating the right socio-economic and political conditions for mitigation is more important than any of the technical constraints.     

Nationally Determined Contributions under the Paris Agreement and the costs of delayed action

Current country-level commitments under the Paris Agreement fall short of putting the world on a required trajectory to stay below a 2°C temperature increase compared to pre-industrial levels by the end of the century. Therefore, the timing of increased ambition is hugely important and as such this paper analyses the impact of both the short and long-term goals of the Paris Agreement on global emissions and economic growth. Using the hybrid TIAM-UCL-MSA model we consider the achievement of a 2°C target against a baseline of the Nationally Determined Contributions (NDCs) while also considering the timing of increased ambition of the NDCs by 2030 and the impacts of cost reductions of key low-carbon technologies. We find that the rate of emissions reduction ambition required between 2030 and 2050 is almost double when the NDCs are achieved but not ratcheted up until 2030, and leads to lower levels of economic growth throughout the rest of the century. However, if action is taken immediately and is accompanied by increasingly rapid low-carbon technology cost reductions, then there is almost no difference in GDP compared to the path suggested by the current NDC commitments.

Key policy insights

• Delaying the additional action needed to achieve the 2°C target until 2030 is shown to require twice the rate of emissions reductions between 2030 and 2050.

• Total cumulative GDP over the century is lower when additional action is delayed to 2030 and therefore has an overall negative impact on the economy, even without including climate change damages.

• Increased ratcheting of the NDC commitments should therefore be undertaken sooner rather than later, starting in conjunction with the 2023 Global Stocktake.

• Early action combined with cost reductions in key renewable energy technologies can reduce GDP losses to minimal levels (<1%).

• A 2°C future with technological advancements is clearly possible for a similar cost as a 3.3°C world without these advances, but with lower damages and losses from climate change.

     

The value of technology and of its evolution towards a low carbon economy

This paper assesses the economic value associated with the development of various low-carbon technologies in the context of climate stabilization. We analyze the impact of restrictions on the development of specific mitigation technologies, comparing three integrated assessment models used in the RECIPE comparison exercise. Our results indicate that the diversification of the carbon mitigation portfolio is an important determinant of the feasibility of climate policy. Foregoing specific low carbon technologies raises the cost of achieving the climate policy, though at different rates. CCS and renewables are shown to have the highest value, given their flexibility and wide coverage. The costs associated with technology failure are shown to be related to the role that each technology plays in the stabilization scenario, but also to the expectations about their technological progress. In particular, the costs of restriction of mature technologies can be partly compensated by more innovation and technological advancement.     

On viability: Climate change and the science of possible futures

Growing attention to the impacts of climate change around the world has been accompanied by the profusion of discourses about the lives, livelihoods, and geographies that are “viable” and those that are not in the time of climate change. These discourses of viability often invoke concrete physical limits and tipping points suggesting a transcendent natural order. Conversely, I demonstrate how viability is co-produced through political economic structures that exercise power at multiple scales in shaping the environment and understandings of how it is changing. I describe three dialectics of this co-production: epistemic/material (between ideas about viability and their biophysical and political economic conditions), epistemic/normative (between how the world is understood to be and ideas about how we should live in it), and inter-scalar (between geographic scales, where action at one scale shapes both ecologies and understandings of possible action at another). Each of these dialectics shapes the knowledge regimes that govern the ambiguous social and biophysical process of disappearance and foreclosure of livelihood possibilities in the time of climate change. I examine these discourses of viability through narratives of unviable agrarian livelihoods in coastal Bangladesh, as a lens through which to examine the dialectics of viability more broadly. I situate these discourses concretely in relation to an analysis of interdisciplinary social and natural scientific research on ecological and agrarian viability in coastal Bangladesh now and in the future. Across a broad interdisciplinary spectrum, I find that scientific attention to political economy shapes the politics of possibility. Finally, I demonstrate how discourses of viability limit alternative possible economic and ecological futures. I do this through a concrete examination of the co-production of viable agrarian futures within communities in coastal Bangladesh. These alternative visions indicate that the viability of agriculture is shaped by historical and ongoing decisions in the present about cultivation, water management, and development intervention.     

The Kettles Hill Project: Field observations,wind-tunnel simulations and numerical model predictions for flow over a low hill

Field observations of the influence of topography on steady, neutrally-stratified boundary-layer flow were carried out in February 1981 and March 1984 on Kettles Hill near Pincher Creek, Alberta, Canada. The primary measurements were of wind speed at 3,6, and 10 m levels at stations in linear arrays along and across the major axis of this gentle, 1 km long and 100 m high, elliptical hill. Wind profile measurements up to heights of 200 m were made with TALA kites and tethersondes on the hilltop and at a reference site located about 3.7 km west of the hilltop. In addition, AIRsondes were flown and tracked from the reference site to provide additional data. The field observations provided the basic data for a comparison with wind-tunnel and numerical model simulations of the same flow. The wind-tunnel investigation was carried out in the Atmospheric Environment Service Boundary-Layer Wind Tunnel while the numerical model used was MS3DJH. For horizontal profiles of normalized mean wind speed at given heights above the prototype terrain, model results agree reasonably well with the field data. The wind-tunnel predictions are slightly high in most cases. For vertical profiles of wind speed up to 200 m above the hilltop, the numerical and wind-tunnel values are higher than were observed. The sensitivity of the normalized wind speed at the hilltop to deviations from non-logarithmic upwind profiles is demonstrated with data from the March 1984 experiment. A comparison of prototype with numerical-model mean-wind-direction perturbations at the 10 m level shows reasonable agreement except near the summit of the hill.Contractor: 24 Heslop Drive, Toronto.     

Intellectual property rights and low carbon technology transfer: Conflicting discourses of diffusion and development

Intellectual property rights (IPRs) and the transfer of low carbon technologies to developing countries have been the focus of sustained disagreement between many developed and developing country Parties to the United Nations Framework Convention on Climate Change (UNFCCC). We argue that this disagreement stems from two conflicting political discourses of economic development and low carbon technology diffusion which tend to underpin developing and developed countries’ respective motivations for becoming party to the Convention. We illustrate the policy implications of these discourses by examining empirical evidence on IPRs and low carbon technology transfer and highlight how the two discourses are based on an incomplete understanding of the role of technological capacity in either economic development or technology diffusion. This has important implication for the success of post-2012 international climate agreements.     

Addressing climate change under preferential trade agreements: Towards alignment of carbon standards under the Transatlantic Trade and Investment Partnership

With its wide coverage of economic spheres and the variety of trade and investment measures currently under negotiation, the Transatlantic Trade and Investment Partnership opens windows of opportunity for advancing action on climate change. We examine possible avenues and international trade law implications for an alignment of carbon-related standards between the EU and the US. We compare EU and US carbon emissions standards for cars and argue that negotiators should strive for a mutual recognition of their equivalence for a transitional period, while pursuing the goal of full harmonization at the level of the highest standards of two parties at some date in the future. This could be a way to balance between economic and environmental interests and harness economic incentives for the benefit of climate.     

The influence of topography on single-tower-based carbon flux measurements under unstable conditions: a modeling perspective

Based on high-resolution numerical simulations, the influence of topography on the one-dimensional (1-D) tower-based measurements of the net ecosystem–atmosphere exchange rate (NEE) of CO₂ was analyzed under unstable conditions. Airflow and transport of a passive scalar were simulated over undulating surfaces covered by tall trees. Compared to their flat surface counterparts, the wind and scalar mixing ratio fields are more disturbed over a steeper surface and/or under a weaker background wind condition, resulting in larger errors in the 1-D NEE estimation. The magnitude of the error is generally larger on the windward side than on the lee side when topography-induced circulation (TIC) does not occur. Applying the ensemble streamline coordinate system to estimating NEE could result in larger errors than applying the local earth coordinate system or terrain coordinate system when the atmospheric flow is significantly distorted. This is especially true when TIC occurs. NEE estimated from the 1-D framework under convective conditions with calm or weak background winds may incur significant errors even over gentle topography. Preference in the selection of a flux tower location is given to the crest area.     

增暖背景下新疆冷冬与极端低温事件的联系

为了客观准确地描述新疆冬季偏冷的特征,基于新疆99个国家气象观测站1981－2020年逐日最低气温、日平均气温和欧洲数值预报中心再分析资料（ERA5）逐日最低气温再分析资料,对于冬季气温异常偏低年、冷冬年、强冷冬年以及单站极端低温事件、区域性持续极端低温事件进行了识别。结果表明：1981—2020年,新疆区域冬季平均气温异常偏低年与冷冬年有差异。新疆冬季单站极端低温事件总体呈减少趋势;12月和2月的出现频次高于1月,但12月减少速率大于2月,1月总体呈增加趋势。新疆共出现53次冬季区域性持续极端低温事件,其中,全疆型出现频次最高,北疆型次之,南疆型第三,山区型最少;出现频次最多的是持续10～15 d的事件;新疆冬季区域性持续极端低温事件发生频次减少,但单站事件持续时间并没有明显减少,而且影响范围在扩大。当冬季极端低温事件出现频次高、持续时间长时,50%以上的测站出现冷冬（强冷冬）时,区域内冬季平均气温一致偏低的概率较大;当冬季极端低温事件出现频次低、持续时间在10d以内时,出现冷冬的测站很少或没有,冬季平均气温一致偏低的概率较小。     

地面无低气压条件的地形对流降水天气

受松花江中游特殊地形的影响,在夏季和初秋季节里,常因地形热力环流和动力环流的作用,在无地面低气压的条件下生成雷雨降水。本文对这种降水天气进行了总结和分型,并根据大气动力学[1]和中尺度天气动力学[2]原理,选出判断这种降水天气的预报因子。     

The dependence of the concentration of OH on its precursors under moderately polluted conditions: A model study

Oxidation of trace gases emitted into the atmosphere is frequently promoted by free radicals. During daytime, the most important radical is the hydroxyl radical, since it reacts with almost all pollutants thereby initializing their ultimate removal from the atmosphere. Since the reaction with OH is in many cases the rate-determining step, the ambient OH concentration is a measure for the atmosphere's oxidation capacity. This paper investigates the influence of the chemical precursors and the photolysis frequencies on the atmospheric OH abundance under moderately polluted and rural conditions. The dominant controlling parameter are the photolysis of ozone and the concentrations of the nitrogen oxides.