Search

Carbon costs impact both the input side of economic sectors, as fossil inputs are used as raw materials, and the output side, as CO2 emissions are paid for in the form of emission allowances. The effectiveness of climate policies depends heavily on the total cost of fossil inputs and emissions, but the input side has typically been ignored so far. The aim of this paper is to present a model that quantifies the total private costs associated with the carbon use of economic sectors. The model presented in this paper is based on an environmentally extended input-output analysis. Total private carbon costs include costs associated with fossil inputs, including both energy and non-energy use, as well as costs associated with carbon emissions. China provides an instructive example, as its economy is heavily dependent on fossil energy sources. The results of the presented model highlight the problem of conflicting energy and climate policies. Reductions in input-side costs may offset the rising costs of carbon emission costs enforced by the climate policy. This article represents a stride in that direction. [ABSTRACT FROM AUTHOR]

Copyright of Space & Society / Tér és Társadalom is the property of Centre for Economic & Regional Studies, Hungarian Academy of Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the trend and the influencing factors of greenhouse gas (carbon) emissions in Hungary with a special focus on the sectors under the European Emissions Trading Scheme (ETS). The authors find that changes in carbon intensity of primary energy use and efficiency of primary energy transformation have not been deep enough to ensure a substantial and lasting decoupling of carbon emissions from economic growth in Hungary. The only component they prove to have decreased the carbon emissions is the structural changes of the economy. The factor of structural changes has been reducing Hungarian emissions in the 90's but it has failed to offset the effects of the recent economic growth, which triggers net emissions to increase both in the ETS sectors and the rest of the economy. They find no evidence for emigration of regulated industries under ETS so far. Structural changes observed in the national economy seem to be independent of ETS, as economic activity has been growing in less carbon intensive sectors. [ABSTRACT FROM AUTHOR]