Pollution is one of humanity's most pressing problems. Although there are many types of pollution, air pollution is one of the main causes of global warming. Therefore, simultaneously improving environmental quality and economic growth, and studying the variables that affect this relationship, has been one of the key issues for researchers and policymakers in recent years, especially in the wake of the United Nations 2030 Agenda for Sustainable Development.This paper aims to estimate the relationship between carbon emissions, GDP per capita, renewable energy and non-renewable energy sources as well environmental taxes in G10 industrialized countries over the period 1972-2020. Regression analysis and panel data were used to answer the questions. Previous studies of the Ecological Kuznets Curve (EKC) for CO2 emissions, with most samples based on G10 member countries, have had mixed results. The environmental Kuznets curve shows that economic development initially leads to environmental degradation, but once economic growth reaches a certain level, the relationship between society and the environment begins to improve and the degree of environmental degradation decreases. From a very simple perspective, this might suggest that economic growth is good for the environment. Critics, however, argue that economic growth is not guaranteed to lead to environmental improvements, which can often backfire. At the very least, it requires very targeted policies and attitudes to ensure that economic growth goes hand in hand with environmental improvement. / <p> Tre helt olika miljö-/BNP-kurvor</p><p>Studien undersöker etablerade teorier för att beskriva sambandet mellan miljöskador och ekonomisk aktivitet, inklusive Environmental Kuznets Curve (EKC), Brundtland Curve Hypothesis (BCH) och Environmental Daly Curve (EDC).</p>

The purpose of this thesis is see if national policies regarding aimed at combating climate change could work even if international ones, such as the Kyoto Protocol, are considered to fail. The question was if environmental policies could be included as an explanatory variable for the Environmental Kuznets Curve (EKC). The environmental polices of interest were the market-based instrument, environmental taxes.   First, the hypothesis whether or not Sweden fit the EKC theory is tested, and this proves to be the case when looking at the years 1800-1996. Second, a hypothesis was tested to see if environmental taxes can help decreasing carbon emission intensity further once a country has reached its turning point. Comparing Sweden to six other countries from the European Union show that this is the case, although environmental taxes must be one of many tools and cannot work alone.   The study shows that the role of taxes were significant, thus showing their importance for the work on climate change. It is also observed that national policies do work, while regional, or international, ones are harder to conduct. The importance of national policies is enhanced since they will be guiding countries when deciding whether or not to commit to international policies.

Sverige är idag beroende av en säker tillgång till energi och att detta sker till konkurrenskraftiga priser. Trots att det finns både ny teknik och styrmedel för energieffektivisering så har inte den kostnadseffektiva energieffektiviseringspotentialen realiserats fullt ut. Industrin påverkas av ett antal styrmedel inom klimat- och energiområdet, som har relevans för energieffektiviseringar. Det handlar t.ex. om energi- och koldioxidskatter, utsläppshandelssystemet, elcertifikatsystem samt Programmet för energieffektivisering (PFE). Det råder idag en oenighet om styrmedel ska utformas som en morot eller piska för energieffektiviseringsarbetet. Detta examensarbete har tillkommit i syftet att undersöka styrmedel för att genomföra energieffektiviseringar inom den svenska industrin. Syftet är också att identifiera tänkbara möjligheter och hinder samt ge förslag på åtgärder till förändringar för att förbättra energieffektiviseringsarbetet. Examensarbetet sker också som en del av Kungliga Ingenjörsvetenskapsakademins (IVA) projekt ”Ett energieffektivt samhälle”. Undersökningen bygger på intervjuer med företrädare för företag, intresseorganisationer, myndigheter och andra oberoende aktörer med koppling till industrin. En litteraturstudie över nuvarande styrmedel och dess påverkan på den svenska industrin samt en internationell utblick har gjorts. Programmet för energieffektivisering (PFE), Energikartläggningscheckar (EKC), Miljöbalken, Ekodesign direktivet (ErP), Energi- och koldioxidskatter, Utsläppshandelsystemet (ETS) och Elcertifikatsystemet påverkar energieffektiviseringsarbetet inom industrin. Studien har visat att inget styrmedel har en total genomslagskraft på industrins aktörer. Frivilliga PFE med tydliga ekonomiska incitament och den tvingande ErP med krav på produkt och märkning anses vara ett bra och väl fungerande styrmedel. EKC kan förbättras med större incitament för de deltagande företagen. Miljöbalken kritiseras för tolkningsproblem och utdragna tillståndsprocesser. Industrins konkurrenskraft påverkas negativt av ökade skatter och ETS medan styrmedel som PFE och EKC har en positiv marknadspåverkan. Endast PFE och Miljöbalken har krav på att ett kontinuerligt energiarbete. Inget av de studerade styrmedlen är långsiktigt utformade, då det sker en kontinuerlig förändring av dessa genom antingen tolkning eller tillämpning. Bristfällig kunskap om energieffektiviseringar och den potential som finns för företaget att genomföra arbetet är ett stort hinder. En viktig drivkraft är därför att det finns ett tydligt informationsincitament där det klart framgår vinster med åtgärden dvs. att målet styr medlet. Resursbrister i organisationen, både vad gäller humankapital och av finansiell art, utgör hinder. Den främsta finansiella drivkraften för energieffektiviseringsinvesteringar är att det ger en avkastning på investeringen, vilket i längden bidrar till ett bättre resultat för företaget. Problem med differentierade regler och osäkerheten i att medverka i företagsöverskridande samarbeten är ett hinder. Möjligheten till att erhålla konkurrensfördelar, är den främsta drivkraften till ett utökat effektiviseringsarbete. Snedvridningar av konkurrensen och kortsiktig planering är hinder. En viktig drivkraft till energieffektiviseringslösningar inom energimarknaden är om det ger kostnadseffektiva lösningar för företaget och samhället i stort. Vad som är samhällsekonomiskt lönsamt är dock inte automatiskt företagsekonomiskt lönsamt. Myndigheter och företag behöver tillhandahålla klara och tydliga riktlinjer för energieffektiviseringar och uppföljning av arbetets genomförande samt redovisa vilka samhällsekonomiska och företagsekonomiska vinster som kan erhållas. Myndigheter måste ge stöd till samhällsviktiga investeringar och tillse att dessa inte påverkar konkurrenssituationen på marknaden. Långsiktighet, kostnadseffektivitet, teknikneutralitet samt att legitima aktörer deltar i processen är andra viktiga faktorer. Företag bör se till att den finansiella strukturen anpassas till att prioritera energieffektiviseringsarbetet. Industrin bör eftersträva ett kontinuerligt och långsiktighet effektiviseringsarbete genom att t.ex. lyfta fram nya nyckeltal samt att uppmuntra anställda att vara delaktiga i utvecklingsprocessen. Samarbeten, i form av samproduktion mellan universitet och högskolor, olika forskningsinstitutet, intresseorganisation och de enskilda företagen ska premieras för ökat kunskapsutbyte och minskade kostnader vad gäller effektiviseringsarbetet. Den svenska industrin påverkas således av ett antal styrmedel inom energiområdet. Hinder och drivkrafter kan indikera kravnivåer utifrån vilka konkreta åtgärder kan vidtas, som behövs för ett framgångsrikt energieffektiviseringsarbete. Viktigt blir att identifiera möjligheter och hinder samt att föreslå konkreta åtgärder till förändringar inom olika sektorer. Den centrala frågan i denna studie är om styrmedel ska vara utformat som en piska eller morot? Forskningen vad gäller energieffektiviseringar visar på att en kombination av frivilliga, tvingande och ekonomiska styrmedel behövs för en gynnsam utveckling. Aktörer med skilda intressen och förutsättningar kräver en mångfald av åtgärder som både lockar och om nödvändigt pushar aktörerna till energieffektiviseringsarbete. Respondenterna delar denna uppfattning men tillägger att om inte heterogeniteten bland aktörerna uppmärksammas fullt ut finns en fara att energieffektiviseringsarbetet missgynnas när industrin kan komma att utlokalisera till andra delar av världen för att undgå tvingande regler eller pålagor. Således kan följande slutsats dras av det anförda nämligen att den initiala frågan om styrmedel som ”piska eller morot” måste omformuleras till ett konstaterande. För ett effektivt energieffektiviseringsarbete måste både styrmedel i form av piska och morot kombineras och en bredare syn på begreppet energieffektivisering ske.  Det viktiga är en anpassning och en väl avvägd kombination av styrmedel för att gynna både energieffektiviseringsarbetet, industrin och samhället i stort. / Our nation is dependent on secure energy supply at competitive prices. Even though energy efficiency tools are available Sweden hasn’t achieved its full potential. The Swedish industry and its energy efficiency is affected by a number of instruments concerning climate and energy, such as energy- and carbon taxes, the European emission trading system (EU ETS) and the Swedish program for energy efficiency (PFE).  Optional or obligatory, today there is a difference of opinion concerning the design of energy efficiency instruments. This paper focus on the research of energy efficiency instruments in the industry and to identify potential opportunities, obstacles and give recommendations of actions to improve the energy efficiency. This paper is a part of a project,”Ett energieffektivt samhälle”,   initiated by the Royal Swedish Academy of Engineering Sciences (IVA).  The research is based on interviews with industry related representatives of companies, associations, government agencies and other independent operators. PFE, EKC, the environmental code, ErP, energy- and carbon taxes, ETS and the Swedish system of electricity certificates, influences the energy efficiency work. None of these instruments have an overall impact on the industry. PFE and ErP are popular instruments but EKC has to improve to be an incentive for the industry.  The environmental code is criticized for its interpretation and enforcement. Competitiveness is adversely affected by taxes and ETS in contrary to PFE and EKC. Continuously energy work is only required by PFE and the environmental code. Both authorities and companies have to provide clear guidelines, follow-ups and the gains to be obtained of the energy efficiency work. Authorities have to support critical investments and to avoid interfering with the competition on the market. Long-term planning, cost-effectiveness, technology neutrality and being a legitimate stakeholder is of vital importance. Companies have to provide the financial structure suited for energy efficiency work. They also have to apply a continuous and long-term efficiency work, for example by highlighting new ratios and to encourage employees to participate in the development process. Collaboration in the form of co-production between different universities, institutes, lobby-associations and companies have to be encouraged to improve knowledge exchange and reduced costs. The question is if energy efficiency instruments should be based on “the stick or carrot approach”? Research about energy efficiency shows, that a combination of voluntary, mandatory and economical instruments is absolutely necessary for a favourable development.  Parts with different interests and qualifications demands a number of arrangements that both is a “stick and a carrot approach” to a necessary energy efficiency work.  Many of the participants in the study underline the importance to address the heterogeneity of the parts otherwise it will disfavour the energy efficiency work when the industry moves abroad. Actually the following conclusion could be made, that the initial question about the “stick or carrot approach” must be put in a different way. About an effective energy efficiency work it’s absolutely necessary to create a combination of both “the stick and the carrot” approach and the wider look on the concept energy efficiency. It’s most important to have a very well done combination and harmonization of the instruments to support the energy efficiency work, the industry and the society at large. / Ett energieffektivt samhälle - delprojekt Industri

This thesis has investigated the validity of the Environmental Kuznets Curve in the provinces of China which assumes the increase in GDP per capita (income per capita) would generate the raise of CO2 emissions (pollution) until a turning point in which CO2 emissions start decreasing. The study includes 30 provinces over a period spanning from 2000 to 2019 by applying OLS and Fixed-effects regression model with panel data. The findings demonstrate that the provinces of China conform to the EKC theory's projections by exhibiting an inverted-U shape. Apart from that, this study also confirmed the presence of differences in turning points between provinces with high income and those with low income, and the former exhibiting a significantly higher value. Our research findings suggest that policymakers should tailor their CO2 emission reduction policies to the specific circumstances of each region. In the absence of appropriate measures, a negative outcome may arise.

Transportation is one of the largest sectors contributing to CO2-emissions, and has doubled its emissions in 30 years. Despite this, studies of the environmental Kuznets curve (”EKC”) often focus on stationary industry emissions. Studies of the EKC have detected an N-shape, rather than an inverted U-curve, indicating that rich nation’s emissions, in fact, increase again after the downturn. Possibly, this could be explained by a trend for inhabitants of wealthy countries with high equality to purchase local products and potentially reverse a trend of dirty-industry emigration. Local production and movement of intermediate goods demand domestic goods transportation. To my knowledge, no previous research has studied how changes in GDP/capita, trade intensity and GINI-index are related to CO2-emissions from domestic goods transportation in wealthy countries with high equality. To study the relationship, mathematical tests using Panel data with Fixed Effects Regression were used. Five countries qualified for the tests, having both high equality (lowest GINI-index) and high GDP/capita, and were included in the study for the year interval 2000-2020. Test results showed a significant correlation between the following: (1) wealth coincides positively with CO2-emissions, (2) trade intensity coincides negatively with CO2-emissions and (3) GINI-index coincides positively with CO2-emissions. Methodologically, this study contributes with the estimator GDP/GINI-index, rather than GDP solely, which could be a better estimator for the richness of a country’s population. The mathematical test results indicate that domestic goods transportation could be a reason for the increased CO2-emissions from developed wealthy countries. This could be a development of the environmental Kuznets curve.

本研究包括3個研究議題。第1個議題旨為估算不同部門別（包括農業、工業、服務業與運輸業）的能源燃燒產生CO2排放之組成因素的貢獻量，係藉由拉氏指數法和算術平均迪氏指數法之加法型態，拆解5種不同的因素（包括：碳密集度、部門結構、能源密集度、人口及經濟規模等），觀察其對於CO2排放變動之影響。本文採用台灣1992-2008年的各部門別的資料作為分析的基礎，研究結果顯示，以上部門的經濟規模對於CO2排放的貢獻呈現巨幅的正向效果；人口因素則呈現微幅的正向或負向的影響；而碳密集度對於CO2排放減量有正面的影響，並發現此乃是構成改善能源結構並導致CO2排放減量的最重要因素；能源密集度因素的影響，除服務業以外，其餘部門均呈現負向影響，此一結果顯示，大部分部門要進一步改善其能源效率頗為困難，是以未來致力於減排的努力，應著重於使用乾淨能源，尤其是以再生能源作為替代能源 (Liaskas et al., 2000)；此外，值得注意的是，部門結構因素對於大部分的產業，如農業、工業和運輸業的CO2排放減量有正向的影響，據此可推論，我國的部門結構已漸趨向於低耗能產業（如服務業）發展。另外，本文採用近似不相關迴歸模型，探討各項政策工具（如環境稅、進口關稅）與經濟變數（如貿易條件及時間趨勢等）透過以上5種不同的組成因素，對於CO2排放變動的影響效果作一分析，其實證結果可供決策者制定減排政策的參考。 第2個議題係為建立節能減排的有效政策工具，須先詳實掌握各項政策工具對節能減排與經濟成長的影響，乃深入回顧相關文獻之理論與實證方法，據以建立適合台灣的3E聯立模型，並進行實證分析，藉以推估多項政策工具（如環境稅、關稅等及能源價格等）與經濟變數（如貿易條件、所得等）對於節能減排與GDP的影響。實證分析結果顯示，台灣之能源消費、CO2排放、及GDP對於各項政策工具與經濟變數之彈性不僅各異其趣，而且有些彈性並非固定不變，可隨時間經過動態調整。 第3個議題係利用台灣1992-2008年之農業、工業、服務業與運輸業等部門別的panel data，仿照Battese and Coelli (1995)提出之隨機邊界(Stochastic Frontier Analysis, SFA)模型，建構隨機生產邊界函數 (stochastic production frontier function)與隨機能源需求函數 (stochastic energy demand frontier function)，利用最大概似法估算出各部門的GDP與能源需求之隨機邊界與技術效率 (technical efficiency, TE)，並據此實證結果提出政策建議。 / The thesis includes 3 issues of research. The first research aims at identifying the factors that have influenced change in the level of various sectors (agriculture, industry, service and transport) CO2 emissions from energy use. By means of both Laspeyres index method and the arithmetic mean weight scheme expressed separately in the additive form, the observed changes are analyzed into five different factors: CO2 intensity, structural change, sectoral energy intensity, sectoral employing population and output level. The application study refer to 4 sectors of Taiwan between 1992 and 2008. The obtained decomposition results indicate that the examined sectors the value calculated for the output level effect present the highest value appearing positive contribution of CO2, and the contribution from population is slightly increased or decreased, while CO2 intensity has beneficially influenced the reduction of CO2 emissions, as well as the improvement of fuel mix found to be the most important factor that lead to the reduction of emissions. In most of the examined sectors for the energy intensity factor present positive effect on CO2 emissions, the only exception is service sector showing negative impact on CO2 emissions, which can be stated as Liaskas et al. (2000) that as further improvements in energy efficiency in most sectors become more difficult, efforts to reduce CO2 emissions will be predominantly directed towards the use of clean energy forms and especially towards the deployment of renewable energies. It also should be noted that structural change has positively influenced the abatement of CO2 emissions for the most sectors such as agriculture, industry and transport. We conclude it shifts towards less energy-intensive service sector, due to have negative influenced the observed decrease in CO2 emissions for higher energy use sectors (industry and transport) and agriculture,. In this article, we also use a seemingly unrelated regression to further investigate the policy tools how to change in CO2 emissions level by the five different factors. The results indicate that policymakers may reduce emissions considerably through various policy instruments. The second issue focuses on initiating effective policy to save energy and reduce emission, one needs to reasonably capture the potential impacts of various policy instruments on energy consumption, CO2 emission and economic growth, the second research, after extensively reviewing the literature, builds a locally ideal empirical model that facilitates the estimation of various policy elasticities. The empirical results indicate that policy elasticities may not only differ from one to the others, but also change dynamically, implying the 3E impacts of some policy instruments might be weakening over time. The main goal of the third article is to provide a detailed analysis of productivity and efficiency measurement for panel data on four different sectors from Taiwan over the period 1992-2008. We use a stochastic frontier model set by Battese and Coelli (1995) to build a stochastic production frontier function and a stochastic energy demand frontier function, which are estimated by maximum likelihood to obtain a stochastic frontier of GDP and energy demand, as well as technical efficiency. On this empirical results, we suggest that policymaker may simultaneously make top-down policies (green tax reform, increasing environmental tax etc.) and bottom-up policies (fuel price in line with prices of gas in global markets) to increase energy efficiency in different sectors.

In order to combat global warming and climate change issues and facilitate economic prosperity in the same time, it is important to understand the possible tradeoffs between economic growth and environmental degradation. In this thesis, we evaluate the hypothesis of an N-shaped environmental Kuznets curve (EKC). Using panel data analysis, we investigate the relationship between CO2 emissions, GDP per capita, renewable energy consumption, technological development, trade, and institutional quality for 74 countries over the period of 1994 to 2012. We find (i) evidence for the Nshaped EKC when using pooled OLS regressions for all income groups but upper-middleincome countries; (ii) heterogeneous results regarding the N-shaped EKC across income groups and quantiles when using quantile regressions; and (iii) a clear and consistent negative relationship between renewable energy and CO2 emissions, indicating the importance of promoting greener energy to combat climate change. / För att bekämpa klimatförändringar och samtidigt möjliggöra ekonomiskt välstånd är det viktigt att förstå de möjliga avvägningarna mellan ekonomisk tillväxt och miljöförstöring. I denna uppsats utvärderar vi hypotesen om en N-formad miljökuznetskurva (EKC). Med hjälp av paneldataanalys undersöker vi förhållandet mellan koldioxidutsläpp, BNP per capita, förnybar energi, teknologisk utveckling, internationell handel och institutionell kvalitet för 74 länder under perioden 1994 till 2012. Vi finner (i) bevis för en N-formad EKC för alla inkomstgrupper förutom övre medelinkomstländer när poolad OLS används som skattningsmetod; (ii) heterogena resultat gällande en N-formad EKC, både mellan och inom de olika inkomstgrupperna, när vi använder oss av kvantilregressioner; och (iii) ett tydligt och konsekvent negativt förhållande mellan förnybar energi och koldioxidutsläpp, vilket pekar på vikten av att främja grönare energi för att kunna bekämpa klimatförändringar.

China has been experiencing great economic development and fast urbanisation since its reforms and opening-up policy in 1978. However, these changes are reliant on consumption of primary energy, especially coal, characterised by high pollution and low efficiency. China’s greenhouse gas (GHG) emissions, with carbon dioxide (CO2) being the most significant contributor, have also been increasing rapidly in the past three decades. Responding to both domestic challenges and international pressure regarding energy, climate change and environment, the Chinese government has made a point of addressing climate change since the early 2000s. This thesis provides a comprehensive analysis of China’s CO2 emissions and policy instruments for mitigating climate change. In the analysis, China’s CO2 emissions in recent decades were reviewed and the Environmental Kuznets Curve (EKC) hypothesis examined. Using the mostly frequently studied macroeconomic factors and time-series data for the period of 1980-2008, the existence of an EKC relationship between CO2 per capita and GDP per capita was verified. However, China’s CO2 emissions will continue to grow over coming decades and the turning point in overall CO2 emissions will appear in 2078 according to a crude projection. More importantly, CO2 emissions will not spontaneously decrease if China continues to develop its economy without mitigating climate change. On the other hand, CO2 emissions could start to decrease if substantial efforts are made. China’s present mitigation target, i.e. to reduce CO2 emissions per unit of GDP by 40-45% by 2020 compared with the 2005 level, was then evaluated. Three business-as-usual (BAU) scenarios were developed and compared with the level of emissions according to the mitigation target. The calculations indicated that decreasing the CO2 intensity of GDP by 40-45% by 2020 is a challenging but hopeful target. To study the policy instruments for climate change mitigation in China, domestic measures and parts of international cooperation adopted by the Chinese government were reviewed and analysed. Domestic measures consist of administration, regulatory and economic instruments, while China’s participation in international agreements on mitigating climate change is mainly by supplying certified emission reductions (CERs) to industrialised countries under the Clean Development Mechanism (CDM). The most well-known instruments, i.e. taxes and emissions trading, are both at a critical stage of discussion before final implementation. Given the necessity for hybrid policies, it is important to optimise the combination of different policy instruments used in a given situation. The Durban Climate Change Conference in 2011 made a breakthrough decision that the second commitment period under the Kyoto Protocol would begin on 1 January 2013 and emissions limitation or reduction objectives for industrialised countries in the second period were quantified. China was also required to make more substantial commitments on limiting its emissions. The Chinese government announced at the Durban Conference that China will focus on the current mitigation target regarding CO2 intensity of GDP by 2020 and will conditionally accept a world-wide legal agreement on climate change thereafter. However, there will be no easy way ahead for China. / QC 20120424

The drivers of CO2 emissions are a widely studied subject of great importance to both individual countries and the global community. However, the inclusion of a quantitative measure of political uncertainty, national and global, has until now been largely overlooked. We investigate how geopolitical uncertainty (GPU) and income interact with CO2 emissions using a panel quantile regression approach for a set of 63 nations over the period 1985-2014. Our key findings are; (i) a consistent negative (positive) relation between global (local) uncertainty and the different CO2 emission distribution levels, (ii) the relation between uncertainty and emissions is heterogeneous across different income groups, (iii) clear and consistent evidence for the Environmental Kuztnet Curve hypothesis with respect to uncertainty, (iiii) when deciding on environmental policy, it is of great importance to consider political uncertainty and whether to use a local or global measure.

The study compares FIT (Feed-in tariff) and RPS (Renewable Portfolio Standard) as the two most commonly used support schemes for renewable energy sources (RES) in the EU. It examines a relationship of an Environmental Kuznets Curve (EKC) and by a practical experiment for public lighting in Prague the study proposes an ecological functioning of electricity grids in the EU with CO2 emissions reduction effect. The main contribution lies in the recency and originality of the econometric analysis and practical experiment. FIT and RPS analysis demonstrates that both schemes affect demand for electricity and increase its price. The econometric model was tested for 28 EU countries for 1990-2013. The results say that the EU is currently located on the downslope of the inverted U-shaped EKC with a turning point, after which the dependence begins to grow. Nevertheless, for the most of observations the turning point is too far to be a source of concern. Practical experiment has shown that installation of energy saving devices for electricity grids in the EU can bring satisfactory results in reducing CO2 emissions independently of state aid. More efficient use of existing energy sources, however, should rather serve as a complement to conventional support, phasing out with the development of RES technologies....