Countries around the world face social, economic, and ecological damage from escalating natural disasters caused by climate change. In an effort to curtail climate change impacts, local and regional governments are beginning to employ green house gas (GHG) mitigation strategies to reduce their carbon footprint. These strategies work to eliminate a range of GHG emissions from entering the atmosphere. Apart from carbon dioxide (CO₂), the most prevalent GHG is methane. In terms of global warming, methane is approximately 21 times more harmful to the atmosphere than CO₂. Natural gas systems, coal mining, manure management, rice cultivation, wastewater treatment, and landfills all contribute to methane generation. According to the US Environmental Protection Agency's 2011 US GHG inventory, landfills generate 1.5% of total GHG emissions in carbon dioxide equivalents. Recognizing the global impacts of its policies and operations, municipalities are working to reduce their GHG emissions. Coalitions like the C40 Cities Climate Leadership Group were created to specifically address GHG reductions, which will result in a 248 million MT reduction in GHGs released to the atmosphere by 2020. Guided by existing literature, this Master's Report calculates methane generation and transport to determine the effectiveness of applying two methane mitigation alternatives--passive methane oxidation biocovers (PMOBs) and landfill gas to energy technologies (LFGTE)--at an inactive landfill site to reduce GHG emissions. LFGTE generates energy for direct use such as space heating or industrial processes or for electricity generation. Cost-saving strategies abound for landfills which utilize LFGTE. PMOBs optimize the landfill surface soil cover environment to promote microbial growth of bacteria, called methanotrophs, which convert methane into carbon dioxide. When employed, these mitigation alternatives are designed to significantly reduce methane emissions from landfills. The EPA has developed a computer modeling program (LANDGEM) to aid in the calculation of landfill gas generation. A hypothetical case study of a one million ton landfill was created and modeled for methane generation over a 35 year period. With methane generation rates calculated, assessment of potential LFGTE was performed and methane oxidation rate calculations were made to determine the impact of a PMOB and LFGTE on net GHG emissions at the landfill. The overall GHG reductions with these engineering controls were two-thirds of the level a landfill without controls would emit. These results indicate that implementing methane mitigation steps at closed landfills throughout the world would yield significant reductions in GHG emissions. / text

As the public and policy makers continue to become more concerned with climate change, researchers continue to seek to understand and explain energy and greenhouse gas (GHG) emissions trends and their drivers. Living and existing in different areas is associated with different impacts, so growth in different areas, as well as the movement of people to and from those areas will affect energy use and emissions over US, individual states, and counties. First the emissions implications of state to state mobility on household energy and GHG emissions are explored. 3 million households move across state lines annually, and generally move from the North East to the South and West. Migrating households often move to states with different climates, and thus heating and cooling and needs, different fuel mixes, and different regional electricity grids which leads them to experience changes in household emissions as a result of their move. Under current migration trends, the emissions increases of households moving from the Northeast to the South and Southwest are balanced by the emissions decreases of households moving to California and the Pacific Northwest. The net sum of emissions changes for migrating households is slightly positive but near zero; however, that net zero sum represents the balance of many emission changes. Summing emissions changes over individual states and regions show the regional differences in household emissions. Next, a similar analysis is conducted for the 120,000 households that annually move between counties in Pennsylvania. From 2006–2010, the emissions changes experienced by those households balanced to near zero values, similar to the state analysis. The emissions increases from households moving to metropolitan fringe and suburban counties were countered by the emissions decreases from households moving to low emission urban centers, even though urban centers experienced net negative migration. While emission changes experienced by households were dominated by differences in emissions from residential energy use, emission changes for household moving within Pennsylvania were dominated by differences from transportation emissions. Finally, this thesis explores the long term effects of growth and decline at the metropolitan level by estimating fossil based CO2 emissions from1900−2000 for Allegheny County, Pennsylvania. From 1970 to 2000, Allegheny County experienced a 30% decrease in total emissions and energy use from peak values, primarily because of a decline in industrial activity! (40% decrease in value added) and the loss of a quarter of its population. Allegheny County’s history suggests that the scale of change needed to achieve local emissions reductions may be significant; given years of major technological, economic, and demographic changes, per capita emissions in 1940 were nearly the same in 2000. Most local governments are planning emissions reductions rates that exceed 1% per year, which deviate significantly from historical trends. These results suggest additional resources and improved planning paradigms are likely necessary to achieve significant emissions reductions, especially for areas where emissions are still increasing. This work shows that overtime, growth and decline within a! region drives its evolving GHG footprint. Population decline within region may lead to emission reductions, as seen in the Allegheny County, but those reductions are more accurately described as displaced emissions due to population redistribution. From 2005-2010, the mobility of the US population between states, regions and counties was responsible for many household emissions changes that balance annually over the entire US. The near zero sum represents the v precarious emissions balance of two kinds of household moves. First, moves resulting in moderate emissions increases either as a result of households moving to higher carbon regions, like the South or South West, or as a result of households moving higher carbon suburban counties within states. Second, moves resulting in significant emissions decreases! As a result of households moving to low carbon regions or low carbon urban centers. Planning for continued low carbon growth in low carbon regions or cities experiencing high growth rates driven by migration, like California or Philadelphia, is essential in order to offset the moderate emissions increases experienced by households moving to high carbon regions or suburban areas.

Stickstoffdüngung und Bodenbewirtschaftung sind die Hauptquellen für Treibhausgase aus Anbausystemen. Dennoch sind diese Maßnahmen in Ackerbaubetrieben unerlässlich. In Anbetracht der Notwendigkeit, rasch Maßnahmen gegen den Klimawandel zu ergreifen, ist es notwendig Minderungspotentiale und Kosten in diesen Betrieben zu ermitteln und vergleichen. Es wurden Fallstudien in den USA, in Brasilien und in Deutschland durchgeführt, wobei jeweils eine Kultur in jeder Region untersucht wurde. Wissenschaftliche Literatur und Fokusgruppen mit lokalen Experten wurden genutzt, um realistische Ergebnisse zu generieren, die den lokalen Kontext abbilden. Diese Arbeit zeigt, dass die Wirtschaftlichkeit der Minderungsstrategien von dem betrachteten Zeithorizont abhängt, der sich aus der Kohlenstoffdynamik im Boden ergibt. Kurzfristig bieten Strategien, die die Kohlenstoffbindung fördern, ein größeres Minderungspotenzial, was jedoch langfristig nicht zutrifft. Kurzfristig wurden in Brasilien und den USA die geringsten Minderungskosten durch die Optimierung der Stickstoffdüngung erreicht. Diese Kosten sind negativ, was bedeutet, dass die Anwendung dieser Strategien, nicht nur ihre Emissionen, sondern auch ihre Kosten senken würden. Weitere kosteneffiziente Strategien waren die Verringerung der Bodenbearbeitungsintensität und Zwischenfrüchte, die in allen Fällen mit vergleichbaren Minderungskosten durchführbar waren und die Kohlenstoffbindung fördern. Der Einsatz von Hemmstoffen schließlich, der in den USA und in Brasilien möglich war, hatte die höchsten Minderungskosten. Langfristig betrachtet stiegen die Minderungskosten von Strategien mit Kohlenstoffbindung an und waren ähnlich hoch oder höher als bei Strategien ohne Kohlenstoffbindung. Da in allen Fällen dieselbe Methodik angewandt wurde, sind die Ergebnisse vergleichbar. Darüber hinaus sind die Ergebnisse zwar spezifisch für den Kontext, in dem sie berechnet wurden, sie liefern jedoch Erkenntnisse für ähnliche Regionen. / Nitrogen fertilization and soil management are the main sources of greenhouse gases from cropping systems. Yet these operations are essential on arable farms. Considering the need to take quick action against climate change, it is necessary to understand which mitigation potentials and cost can be attained in these farms and how they compare. Case studies in the USA, Brazil and in Germany were conducted, assessing one crop in each region. Scientific literature and focus groups with local experts were used to generate realistic results which depict the local context. This thesis identified that the economics of the mitigation strategies depended on the time horizon considered, which results from the carbon dynamics in the soil. In the short term, strategies promoting carbon sequestration offer a larger mitigation potential, yet this is not valid in the long term. In the short term, the lowest mitigation costs were attained by optimizing the nitrogen rate, feasible in the USA and Brazil. These costs are indicated to be negative, implying that adopting the strategy would not only lower emissions, but also reduce their costs. The next most cost efficient strategies were the reduction of the tillage intensity and cover crops, which were feasible in all cases with comparable mitigation costs and promote carbon sequestration. Lastly, the adoption of inhibitors, feasible in the USA and in Brazil, had among the highest mitigation costs. Assuming the long term, the mitigation costs of strategies with carbon sequestration increased, becoming similar to or higher than strategies without carbon sequestration. By applying the same methodology in each case, the results are comparable. Moreover, while the findings are specific to the context in which they were calculated, they provide insights for similar regions.

Agriculture causes large parts of global Greenhouse gas emissions (GHGE), with livestock contributing the greatest share. Livestock-based foods are thus associated to higher GHGE than plant-based foods. Additionally, they are harmful to health when consumed in excess. The focus of this work lies on determining the potential to reduce agricultural GHGE when healthy diets and lower meat intakes were adopted in the EU. lt is also examined how much feed crops and pastures would become available for the production of biofuels. An emission tax and an emission trading system are also examined. To assess the complex interactions in the agricultural sector, a modified version of the European Forest and Agricultural Sector Optimization Model (EUFASOM) is used. The results show that a halved meat intake could reduce agricultural GHGE by a quarter and biofuel production could increase eightfold. The political instruments lack effectiveness though. The GHG tax has a low impact on nutrition and roughly 50% emission leakage. Emission trading has only a moderate effect on nutrition and over 100% emission leakage.:1 Introduction 2 Goal and scope definition 3 Methodology 3.1 Overview 3.2 Spatial resolution 3.3 Products under consideration 3.4 Base data 3.4.1 Base quantities 3.4.2 Base prices 3.4.3 Base areas 3.4.4 Demand elasticities 3.5 Production processes 3.5.1 Crop production 3.5.2 Pasture production 3.5.3 Plant oil production 3.5.4 Biofuel production 3.5.5 Sugar production 3.5.6 Livestock production 3.6 EUFASOM – Theoretical foundation 3.7 EUFASOM – Demand and supply functions 3.8 EUFASOM – Model description 3.8.1 Objective function 3.8.2 Identity and convexity constraints 3.8.3 Product balance 3.8.4 Land use restrictions 3.8.5 Nitrogen balance 3.8.6 Further accounting equations 3.9 Calibration 3.10 Integration of scenarios 4 Scenarios and results 4.1 Scenario 1: Technical potential of healthy diets 4.1.1 What are healthy diets? 4.1.2 Implementation of healthy diets 4.1.3 Scenario 1.1: Healthy diets with constant calorie intake 4.1.4 Scenario 1.2: Healthy diets with restricted calorie intake 4.1.5 Scenario 1.3: Healthy diets with restricted ruminant meat intake 4.1.6 Discussion on the potentials of healthy diets 4.2 Scenario 2: Greenhouse gas emission taxes 4.3 Scenario 3: Redistribution of emissions taxes as biofuel subsidy 4.4 Scenario 4: Emissions trading scheme for agriculture 4.4.1 Scenario 4.1: GHGE-cap on agricultural production 4.4.2 Scenario 4.2: Combined GHGE-cap on agricultural production and net-imports 4.4.3 Scenario 4.3: GHGE-cap on agricultural production and generation of allowances through producing biofuels 4.4.4 Scenario 4.4: GHGE-cap on agricultural production and imports and generation of allowances through producing biofuels 4.4.5 Discussion on ETS 5 Summary and conclusion References List of Figures List of Tables List of Abbreviations Annex 1 Base Solution Annex 2 Process parameters and associated information Annex 3 Lists of model variables, process parameters, equations and sets Annex 4 Demand elasticities Annex 5 Derivation of specific energy and protein demand of livestock Annex 6 Further assumptions for the livestock sectors

Um das 1,5°C Ziel zu verhindern, müssen bis 2020 die globalen anthropogenen CO2 Emissionen Sektor-übergreifend ihren Spitzenwert erreichen und bis 2050 auf Netto-Null-Emissionen sinken. Der AFOLU Sektor hat einen Anteil von 23% an den globalen Treibhausgasemissionen (THGE). Neben der Möglichkeit THGE zu vermeiden, bietet die Implementierung von Klimaschutzmitigation auch Synergien um die Ernährungssicherheit, Nährstoff- und Wassereffizienz zu verbessern sowie Landdegradation umzukehren. Eine kritische Bedeutung hat die Abholzung von tropischen Waldflächen durch die mehr als ein Drittel der Emissionen im Bereich des AFOLU entsteht. Vor diesem Hintergrund werden vorliegend, mit Fokus auf die Abholzung in der tropischen Zone, die indirekten Auslöser der THGE innerhalb des AFOLU untersucht. Diese Auslöser werden zunächst auf einer globalen Skala analysiert, wobei die Rolle der Variabilität von Preisveränderungen international gehandelter Waren und weiterer sozio-ökonomischer Indikatoren auf regionale Waldumwandlungsprozesse betrachtet wird. Anschließend analysiert diese Arbeit den Aspekt des Waldverlustes im Zusammenhang mit politischer Instabilität und bewaffneten Konflikten. Zudem werden regionale Lösungen zur Mitigation in weiteren Sektoren adressiert. Insbesondere wird die Möglichkeit zur THGE-Einsparung in silvopastoralen Systemen untersucht um das Zusammenspiel zwischen intensiver Viehbewirtschaftung und der Kohlenstofffixierung besser zu verstehen. Darüber hinaus werden regionale Lösungen mit Hilfe von Basisorganisationen bzw. gemeindebasierten Initiativen (CBI) zur THGE-Einsparung in den Bereichen Energie, Nahrungsmittel, Transport und Abfall erforscht. Diese Arbeit liefert vielfältige Beiträge zum Verständnis der indirekten Auslöser von Abholzung und den damit verbundenen THGE innerhalb der tropischen Zone, sowie zur Förderung lokaler Lösungen für die sektorübergreifende THG-Minderung. / Global anthropogenic CO2 emissions from different sectors must peak in 2020 and reach net zero by 2050 in order to reach the 1.5°C target. The AFOLU sector represents 23% of global greenhouse gas (GHG) emissions. In addition to its mitigation potential, the implementation of solutions in this sector also holds the synergistic potential of enhancing climate change adaptation, improving food security, nutrient and water efficiency, and reverting land degradation. Tropical deforestation is of particular importance within the AFOLU sector, representing over a third of its emissions. Against this backdrop, this thesis examines the underlying drivers of GHG emissions in the AFOLU sector, with a particular emphasis on tropical deforestation. These drivers are explored, firstly, at a global scale by addressing the role that changes in price of internationally-traded commodity products and other socio-economic variables exert on regional forest conversion. Secondly, this work examines the relationship between tree cover loss and a very under-researched driver of tropical deforestation, namely extreme political instability and armed conflict. Motivated by the urgency of climate change impacts, this thesis also explores local solutions for climate change mitigation across different sectors. In particular, the GHG mitigation role of silvopastoral systems, a type of agroforestry system, is examined to further understand the interplay between livestock intensification and carbon sequestration. In addition, more broad, local-scale solutions are examined across the energy, food, transport, and waste sectors by addressing the GHG mitigation potential of grassroots organizations, also known as community-based initiatives (CBIs). This thesis provides manifold contributions, not only to further understand some of the underlying drivers of deforestation and associated GHG emissions in the tropics, but also towards the advancement of local solutions for GHG mitigation across sectors.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.

Thesis Abstract: Chapter I: Regional burden sharing of GHG mitigation policies – A Canadian perspective. The distribution of the burden of cost arising from the reduction of greenhouse gas (GHG) emissions is a contentious issue in policy discussions; more so among regional jurisdictions in the federalist countries with decentralized authorities over environmental regulations. In this setting, often the policy discussions are focused on the distribution of regional emission reduction targets that, in turn, entails negotiations over the distribution of the scarcity rents and the regional transfers of wealth. The allocation of regional emission entitlements is thus a key factor that could hinder the political feasibility of a national GHG mitigation policy. In this paper, we build a multi-region computable general equilibrium (CGE) model of the Canadian economy to assess the implications of different burden sharing rules governing the national GHG abatement policy with a cap-and-trade system of emission permits. In addition to assessing the impacts of traditional regional emissions allocation rules that involve intra-regional transfers of wealth, we consider a particular emission allocation that avoids such transfers, which may be a more palatable option given the context of likely fierce negotiations over the issue. Our results indicate to differing outcomes depending on the allocation policy in use. The CGE framework is also able to shed light on the transmission mechanisms that drive the results underlying the policy options. Chapter II: Endogenous technological change and emission allowances. Given the imminent threat of global warming due to GHG emissions, a number of emission mitigation policies have been proposed in the literature. However, they generally suffer from the classical equity-efficiency trade-off. High costs from equity concerns often render environmental policies politically unattractive and thus hard to implement. Recent advancement in the climate policy modeling literature that incorporates endogenous technological change (ETC) into the framework can potentially bring new insights into this debate. Using an inter-temporal, multi-sector CGE approach with ETC incorporated into the framework, this paper builds a model that focuses on the equity-efficiency debate for the policymakers. Canada is chosen as the country of investigation for this purpose. The paper provides a new welfare ranking of four permit allocation policies that address the equity-efficiency trade-off. In a second-best setting with pre-existing distortions, output-based allocation (OBA) of emission permits is compared to three other policy options: (i) an emissions trading system with grandfathered allocation (GFA), (ii) an auction permit trading system where permit revenue is recycled to lower payroll taxes (RPT), and (iii) a hybrid of OBA and R&D subsidy (O-R&D). We find that adapting OBA, as well as O-R&D, is welfare improving over GFA. The implicit output subsidy, entailed in the OBA policy, mitigates against the rising cost effect in the GFA policy. This is reinforced through added investment incentive in R&D when ETC in incorporated into the framework. With O-R&D, since the R&D subsidy corrects for market imperfections in the knowledge accumulation process, the effect is further bolstered, culminating into mitigation of uneven distributional outcome for energy-intensive industries as a whole. Contrary to previous results, we also find that, in terms of the welfare metric, OBA unequivocally improves the distributional outcome across sectors as compared to the RPT policy. Inclusion of ETC also unequivocally generates a higher welfare ranking for all permit policy schemes. Chapter III: Emission permit banking and induced technological change. This paper attempts to undertake an exploratory research by integrating two themes in the emission mitigation policy literature, which include: the inter-temporal emission permit banking and borrowing and the role of induced technological change in emission mitigation. Using a simple optimal control approach, we construct a unified framework that evaluates the optimal path of emissions and the optimal trajectory of permit price when both inter-temporal banking and borrowing of permits and the effects of induced technological change (ITC) are present. We find that ITC leads to a declining emission trajectory over time. The effect of ITC on the optimal permit price path, however, is ambiguous and critically depends on the extent of marginal cost saving that emanates from emission-saving technological innovation.

Im Laborversuch konnte der positive Einfluss einer thermobarischen Vorbehandlung auf die Hydrolysier- und Vergärbarkeit von Rinderfestmist und Rindergülle nachgewiesen werden. Die Laborergebnisse wurden innerhalb eines theoretischen Modells in den Praxismaßstab übertragen, um den Einfluss auf Treibhausgasemissionen, Energiebilanz und Ökonomie zu bewerten. Die Vorbehandlungstemperaturen im Labor lagen zwischen 140 und 220°C in Schritten von 20 K und einer Vorbehandlungszeit von jeweils 5 Minuten. Die höchste Methanmehr¬ausbeute von 58 % konnte bei einer Temperatur von 180°C ermittelt werden. Das Auftreten von Inhibitoren und nicht vergärbaren Bestandteilen führte bei einer Aufbereitungstemperatur von 220°C zu Methanausbeuten, die geringer waren als die des unaufbereiteten Einsatzstoffes. In einer erweiterten Analyse konnte ein funktioneller Zusammenhang zwischen der Methanausbeute nach 30 Tagen und der Methanbildungsrate und -ausbeute während der Beschleunigungsphase gezeigt werden. Mittels einer Regressionsanalyse der so ermittelten Werte wurde nachgewiesen, dass die optimale Aufbereitungstemperatur 164°C ist und die minimale größer als 115°C zu sein hat. Treibhausgasemissionen und Energiebilanz wurden im Rahmen einer Ökobilanz nach ISO 14044 (2006) ermittelt, sowie eine Kosten-Nutzen-Analyse durchgeführt. Dazu wurde eine Anlage zur thermobarischen Vorbehandlung entwickelt und innerhalb eines Modells in eine Biogasanlage integriert. Weiterhin wurde in diesem Modell Maissilage durch Rinderfestmist und / oder Rindergülle als Einsatzstoff ersetzt. Rinderfestmist, ein Einsatzstoff mit hohem organischen Trockenmassegehalt, der ohne Vorbehandlung nicht einsetzbar wäre, erreichte eine energetische Amortisationszeit von 9 Monaten, eine Vermeidung in Höhe der während der Herstellung emittierten Treibhausgase innerhalb von 3 Monaten und eine ökonomische Amortisationszeit von 3 Jahren 3 Monaten, wohingegen Rindergülle keine positiven Effekte zeigte. / Hydrolysis and digestibility of cattle waste as feedstock for anaerobic digestion were improved by thermobarical treatment in lab-scale experiments. The effects of this improvement on greenhouse gas emissions, energy balance and economic benefit was assessed in a full-scale model application. Thermobarical treatment temperatures in lab-scale experiments were 140 to 220°C in 20 K steps for a 5-minute duration. Methane yields could be increased by up to 58 % at a treatment temperature of 180°C. At 220°C, the abundance of inhibitors and other non-digestible substances led to lower methane yields than those obtained from untreated material. In an extended analysis, it could be demonstrated that there is a functional correlation between the methane yields after 30 days and the formation rate and methane yield in the acceleration phase. It could be proved in a regression of these correlation values that the optimum treatment temperature is 164°C and that the minimum treatment temperature should be above 115°C. The theoretical application of a full-scale model was used for assessing energy balance and greenhouse gas emissions following an LCA approach according to ISO 14044 (2006) as well as economy. A model device for thermobarical treatment has been suggested for and theoretically integrated in a biogas plant. The assessment considered the replacement of maize silage as feedstock with liquid and / or solid cattle waste. The integration of thermobarical pretreatment is beneficial for raw material with high organic dry matter content that needs pretreatment to be suitable for anaerobic digestion: Solid cattle waste revealed very short payback times, e.g. 9 months for energy, 3 months for greenhouse gases, and 3 years 3 months for economic amortization, whereas, in contrast, liquid cattle waste did not perform positive replacement effects in this analysis.