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AIM/Material Model Application to India and Japan Ashish RANA National Institute for Environmental Studies Session 7: Asia-Pacific Integrated Model (AIM): Applications / Case Studies APEIS Capacity Building Workshop on Integrated Environment Assessment in the Asia Pacific Region October 24-26, 2002 Hotel Grand Inter-Continental, New Delhi, India Coverage in this workshop • Summary (Session 4) For understanding AIM/Material model – What is AIM/Material model? – Model formulation – Necessary data for simulation – Future scenario • Training (Session 5) – Operation of AIM/Material model • Application (This session) – Application of AIM/Material model to India and Japan Application of AIM/Material model • Model – Basic economic structure is the same as the training model – The differences are as follows; • Disaggregate the environmental industry • More detailed solid waste type • Three types of waste treatment: direct final disposal, direct reuse, and intermediate treatment. Overview of complex model Government Tax, subsidy, public service, and public investment Household Final consumption Investment Market Production sector Waste Solid waste management Resource input Reuse Intermediate treatment Disposal Final disposal site Env. industry CO2 Capital Labor Energy Other inter- Pollution mediate input Resource input Environmental Investment Application of AIM/Material model • Application to India – simulation of toxic waste reduction – simulation of mitigation of economic impact by introducing countermeasures • Application to Japan – simulation of CO2 reduction (Kyoto target) – simulation of final disposal of solid waste – simulation of mitigation of economic impact by introducing countermeasures - Application of AIM/Material to India - Sectors of AIM/Material [India] ID Sector/Commodity Sector/Commodity AGR Agriculture, forestry, fishing WTR Water supply MIN Mining SRV Services FOD Food MWM Municipal waste management TEX Textiles IWM Industrial waste management PLP Paper and pulp EMC Environment industry CHM Chemicals GOV Government service NMM Non-metallic mineral products COL Coal BMT Basic metals OIL Oil FMT Fabricated metals GAS Gas MCH Machinery HYD+ Hydro power generation ELM Electrical machinery THE+ Thermal power generation TRE Transport equipment NUC+ Nuclear power generation OTH Other manufacturing ELE* Electricity CNS Construction * Only Commodity + ID Only Sector - Application of AIM/Material to India - Waste categories of AIM/Material [India] Ash Waste plastic Sludge Waste paper Waste oil Waste textile Waste wood Animal and plant waste Slag Scrap metal Construction waste Waste glass Dust Other waste Toxic waste Left column represents industrial waste classification. Right column represents both industrial and municipal waste classification. - Application of AIM/Material to India - Waste to goods in AIM/Material [India] AGR ASH SLD WOL WPL WPP WWD WTX WAP SCM WGC SLG WCT DST WZZ WWT TEX PLP CHM BMT OTH NMM FMT - Application of AIM/Material to India - Scenarios for policy analysis using AIM/Material [India] • Scenario 1 – Reference scenario – no interventions • Scenario 2 – Toxic Constraint Scenario – limit the discharge of toxic wastes. • Scenario 3 – Countermeasures – environmental investment with waste management efficiency improvement - Application of AIM/Material to India - GDP change of reference case 250 Rs. trillion (Constant 1993-94 prices) Historical 200 Simulated (Scenario 1) 150 100 50 0 1970 1980 1990 Year 2000 2010 - Application of AIM/Material to India - Trajectory of final disposal waste 1.8 Index (1994 = 1) 1.6 1.4 1.2 1.0 Non-toxic (reference case) Non-toxic (toxic waste constraint case) Toxic (reference case) Toxic (toxic waste constraint case) 0.8 0.6 0.4 1994 1998 2002 Year 2006 2010 - Application of AIM/Material to India - GDP change due to toxic waste constraint and GDP mitigation by introduction of policy Year Rs. billion (Constant 1993-94 prices) 2009 0 -1 -2 -3 -4 toxic waste constraint without policy -5 toxic waste constraint with policy -6 2010 - Application of AIM/Material to India - Output changes in each sector in 2010 over reference case 1.20 1.15 1.10 Toxic waste constraint without policy Toxic waste constraint with policy 1.00 0.95 0.90 0.85 0.80 AGR MIN FOD TEX PLP CHM NMM BMT FMT MCH ELM TRE OTH CNS WTR SRV GOV MW IWM COL OIL GAS THE HYD NUC Index 1.05 Example of AIM/Material Model • Application to India – simulation of toxic waste reduction – simulation of mitigation of economic impact by introducing countermeasures • Application to Japan – simulation of CO2 reduction (Kyoto target) – simulation of final disposal of solid waste – simulation of mitigation of economic impact by introducing countermeasures - Application of AIM/Material to Japan - Sectors and commodities of AIM/Material [Japan] sector commodity Agriculture, forestry & fisheries Mining except energy Coking coal Coal mining Coal for general use, lignite, anthracite Crude oil mining Natural gas mining food textile mill products lumber, wood products, pulp, paper & paper products chemical & allied products plastic ceramic, stone, & clay products iron, steel, non-ferrous metals & products non-ferrous metals & products fabricated metal products general machinery electrical machinery, equipment & supplies transportation equipment precision instruments & machinery Miscellaneous manufacturing industries Construction Steam & hot water supply Water supply Wholesale & retail trade Finance & insurance Real estate sector commodity Transportation & communications Education, research, medical service, health & hygiene, & social welfare Goods renting & leasing Car & machine repairing Other service Government service Environmental industry Sewage service Municipal solid waste treatment service Industrial solid waste treatment service Coke Manufacture of coal products Other coal products Paving materials Gasoline Jet fuel oil Kerosene Light oil Manufacture of petroleum Heavy oil Naphtha LPG Other petroleum products Manufacture of gas Town gas Thermal power generation Electricity Hydro power generation Nuclear power generation - Application of AIM/Material to Japan - Classification of solid waste in AIM/Material [Japan] ash sludge slush, waste oil waste acid waste alkali waste plastics waste paper waste wood waste fiber and textile animal and plants wastes waste rubber metal trash, scrap metal waste glass slag construction and demolition waste dust, soot animal excrement animal carcass Yellow cells represent both industrial waste and municipal waste classification. White cells represent industrial waste classification. - Application of AIM/Material to Japan - Trillion yen at 1995 prices GDP change of Japan in reference case 600 580 560 540 520 500 480 460 440 1995 2000 2005 Year Actual values Calculated values 2010 - Application of AIM/Material to Japan - GDP loss due to CO2 reduction & final disposal reduction of wastes 2000 Year 2005 2010 -0.2 -0.4 -0.6 -0.8 -1.0 -1.2 -1.4 0.2% of GDP GDP loss GDP change [tri. Yen at 1995 price] 0.0 - Application of AIM/Material to Japan - Mitigation of GDP loss by various countermeasures GDP change [tri. Yen at 1995 price] 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 -1.2 -1.4 Mitigation by green consumption Mitigation by subsidy to waste treatment Mitigation by technology improvement Mitigation by env. industry & investment 2010 GDP loss 2000 Year 2005 Future activities • Application of AIM/Material to other countries • Simulation of other countermeasures • Linkage to AIM/Emission and AIM/CGE • Including other environments such as natural assets