Download Economic incentivnes for solving problems of pollutions

Introduction
Emerging problem of global warming (GW) as a
serious world problem has a relatively short history first notion - (Arrhenius (1896)
Global warming could be perceived both as global threat caused by
human activity as same as the natural consequence of geological
history of our planet.
1.global warming is not the serious problem, if any, it is natural
oscillation of climate history. This good news for economists is
supported by Bjorn Lomborg (2001);
2. On the opposite site labeled as ecological or environmentalist
we can find recently All Gore (2006) with his document
An Inconvenient Truth.
WORLD Summits, conferences – history of international activities
1827 Fournier green house effet
1890 Sweden chemic Svante Arhenius – C02 in atmosphere could
change the climate
1979 first climate conference in GENEVE
1992 Convenction of climate change in UN ( RIo de Janeiro)
1997 Kyoto Protocol decreasing of emission 2008-2012
2000 – conference in Haag –preparation of ratification Kyoto
2005 Ratification of Kyoto - coming into reality Montrealconference after ratification of Kyoto
2009 Copenhagen international summit
2010 Cancún (Mexico) climate change conference
History of international activities
2001- USA does not agree with Kyoto
2001- conference v Marakes - transfer technology and funds for
supporting development states
1.1.2005 EU – market with trading permitions C02
2005 November – Montreal- conference after ratification of Kyoto
X delegace USA –refuse
Konflikt mezi vládou USA a míněním občanů ( Bill Clinton v
Montrealu se musel zaregistrovat jako nevládní organizace)
Global warming
Global challenge with several dimensions
Ecological– monitoring of changes and warning
Legal – agreements , protocols
Ethical- equal rights of population
Economic-solving instruments
Eological dimension
Alarming facts
•Growing speed of CO2 production – 2000 -2005 3,2% annualy x
1990 only 0,8% annualy
•Melting of Glaciers - melting speed is 170 km 3 per year
• Encreasing level of oceans - 1,5 až 2 mm annualy
AOSIS – asociation of small islands states –
2005 approval of evacuation from Carter Islands – first official
climate deserteres
Ethic dimension
The Collaborative Program on the Ethical
Dimensions of Climate Change
http://www.globalecointegrity.net/pdf/samos/Brown_Don.pdf
Major Climate Change Ethical
Issues
Ethical issue one, the atmospheric stabilization question.
Otázka života a smrti – právo na život- nutnost snížit emise
Issue two, the national equity question:
všechny národy musí snížit emise stejně bez vyjímek a ne o 80% ale 90%
Issue three, who will pay for damages?
Malé ostrovy,oběti záplav a hurikánů, sucha,
What does ethics have to say about the excuse that we can
wait to new technologies will be invented
What does ethics have to say about the excuse that no nation
need to reduce its emissions until other nations reduce their
emissions
Collaborative Program on the Ethical
Dimensions of Climate Change
• Launching in Buenos Aires in 2004
• Development of draft white paper
(now 80 pages)
• Meeting on draft white paper in
Montreal in 2005
• Meeting with collaborators from global
south in August 2006 in Rio de
Janeiro
• Workshop in Nairobi at Cop-12 in
November 2006
• International conference in 2007/2008
Economic instruments - Trading permitions
Pollution as costs
EXTERNALITY
EXTERNAL costs
Positive externality
Negative externality
Economic and physical pollution are there
differences??????
Optimal pollution from economic point of view
What is the role of economy???
The role of economy is to say how to make the
changes with the low costs for society
In other words with the
most effective way
Economic efficiency = low cost = cheapest solution
Example
Steam train could be most ECONOMIC effective than electricity
train
If coal for steam production is cheaper ( lower price) than electricity
for traffic
Command and Control
Economic instruments
•Green Taxis
•Trading permitions for C02
•Subsidies ecological agriculture
•Green energy support
•Voluntary agreements
Different solution for decreasing pollution level
pollution (C02t ) costs of cleaning (for one ton
Cars - C
20 000
5 EUR
Households -H 30 000
10
Industry - I
40 000
20
Total pollution is 90 000
GOAL = decreasing of pollution from 90 000t to
60 000t CO2
30 ton decreasing of pollution C02
Command and Control system
1.Each polluter can produce just 20t of C02
2. Each polluter decreases pollution in amount of 10 000 tons
1) Each producer is permitted to produce just 20 t of pollution
Reality is
Cars…20t
households…..30t
For decresing pollution
Cars - C =
Households H =
Industry - I
industry…40t
0t
10t
20t Total decreasing is 30t CO2
What are the costs?
Cars - C
Households -H
Industry - I
5 EUR per 1t of CO2
10 EUR
20 EUR
C=
0 EUR
H= 10 000 x 10 = 100 000 EUR
I= 20 000 x 20 =400 000 EUR
Total costs 500 000 EUR
2. Each polluter decreases pollution in amount of 10 000 tons
Cars
10 000 x 5 = 50 000
Households 10 000 x 10 = 100 000
Industry
10 000 x 20 = 200 000
Total costs 350 000
Trading permitions of CO2
Two companies emission
A emissions are 5 tCO2
B emissions are 5 tCO2
TOTAL 10 tons of CO2 pollution
A cost for removing 1t of pollution 20EUR
B cost for removing 1t of pollution 30EUR
We need JUST 8 t C02
Costs A 20 + B 30= 50EUR
10-2=8t
2t
Trading permition
A and B recive permition for 4 t CO2 pollution = 8t total pollution
Trade with permitions market price for 1t pollution is 24EUR
Trading permition
A and B recive permition for 4 t CO2 pollution = 8t total
pollution
Trade with permitions market price for 1t pollution is 24EUR
A costs = 20EUR per 1 ton C02
B costs =30 EUR per 1ton C02
A could reduce 2 t of C02 and B could buy 1t of C02 instead of
reduction
Real costs
A costs = 20 EUR per 1 ton C02
Trade costs
24
B costs =30 EUR per 1ton C02
Eur per 1 ton
A costs for elimination of C02 is 20EUR < price for 1tCO2 is 24 EUR
B costs for elimination of C02 is 30EUR > price for 1tCO2 is 24 EUR
¨
A decreases 2 tons - costs are 40 EUR BUT SELL one permition for price 24EUR
toB
A costs 40-24 = 16EUR total costs will be 16 ( instead of 20 for 1ton decreasing)
B will buy 1 permition from A for 24 EUR
Costs without trade A costs 20
Total costs for society
50
Costs with trade
A costs 16
B costs 24
Total costs for society
B costs 30
40 total costs
Traing permition A costs =
20EUR per 1
ton C02
B costs =30 EUR per
1ton C02
A costs for elimination of C02 is 20EUR X price for 1tCO2 is 24 EUR
A decreases 2 tons - costs are 40 EUR X SELL one permition for price 24EUR to
A costs 40-24 = 16EUR
B will buy 1 permition from A for 24 EUR
Costs without trade A costs
Total costs for society
Costs with trade
Total costs for society
A saves 4EUR
20
50
B costs 30
total costs
A costs 16
B costs 24
40 total costs
B saves 6EUR
Perception of Global Warming International Comparative Study from
CR, USA and New Zealand
Climate change – Global phenomenon
Countries differ in the three main dimensions „CCR“
a) Contribution of country to climate change ( Carbon footprint)
b) Consequences of climate change for the country ( drinking water, see level etc.)
c) Responsibility o country-(How will the Kyoto Protocol coming into force affect
by Country?
OUR QUESTION
The important fact is “picture of perception” of
global warming by society
Hypothesis : Solution of the global problems like
global warming require some elements of Global
consciousness –Global knowledge
Global
consciousness
is
open
thinking
phenomenon
relatively
independent
on
geographic as well as social and political
conditions.
DOES IT EXIST IN OUR GLOBAL WORLD
OR NOT ?
Case study :
three groups of students from three countries - Czech Republic (CZ), New Zealand
(NZ) and the United State of America (USA).
These countries could serve as representatives of three regions according IPCC (1997).
Europe
Asia
America
Ad a) with all consideration to the simplification we used footprint indicator to
compare our regions (see Table 1).
Footprint
Tab. 1: Footprints
Portion
of
footprint
CO2
in
CZ
4,9gha
2,56 gha
NZ
5,9 gha
1,6 gha
USA
9,8 gha
5,68 gha
Source: http://www.carbonfootprint.com
Sociological sample
The number of respondent was approximately 200 of students in each country.
The age of students was within the interval of twenty and thirty years.
Age ratio of gender was balanced
As same as the representation of subjects of study especially the rate between
social and natural sciences.
Logical division of our questionnaire into three parts.
Fear - Responsibility and Information.
1. Fear of population in terms of GW impact - Consequences
Order Czech Students
Place
Score
Students NZ
Changes
1. Decreasing drinking water resources
4,16
Students USA
Place Changes Score
(water)
1. (water)
Place Changes Score
3,95
1. (water)
3,71
3,53
2. Increasing risk of sunbathing (sunbathing)
3,79
2. Increased economic costs (costs)
3,71
2.costs
3.Changing of drought and flood season (flood)
3,58
3. Appearance of new diseases (disease)
3,16
3. (disease)
3,51
4. Accelerated species extinction (extinction) 3,39
4. (flood)
3,13
4. (flood)
5. Total change of scenery and landscape (landscape)
3,36
5. (landscape)
3,04
5. (season)
6. Delay in changing of year’s seasons
3,30
6. Regulated limits on business activities (limits)
3,03
6. Total change of scenery and
landscape (landscape)
2,96
7. Appearance of new diseases (disease) 3,28
7. Delay in changing of year’s seasons (seasons)
3,03
7. (limits)
2,95
8. Migration from endangered areas (migration)
2,86
8. (extinction)
2,91
8. (extinction)
2,81
9. Increased economic costs (costs)
2,76
9. (tax)
2,90
9.(sunbathing)
2,62
10. Implementing of a climate tax (tax)
2,67
10.(sunbathing)
2,86
10.(migration)
2,59
11. Regulated limits on business activities (limits)
2,52
11. (migration)
11.(tax)
2,56
(season)
2,74
3,23
3,05
Consequence
s (Order of
importance 05)
The Earth is round. Elvis is dead.
Climate change is happening
The number of views and spectrum of dimensions connected
with climate changes and their consequences are apparent
also among countries.
a) How does the country contribute to climate change?
b) How does climate change affect the country?
c) How will the Kyoto Protocol coming into force affect by
Country?
In our case study we choose three groups of students from three
countries - Czech Republic (CZ), New Zealand (NZ) and the
United State of America (USA).
These countries could serve as representatives of three
representative regions according IPCC (1997).
New Zealand (NZ)
Czech Republic (CZ),
United State of America
Ad a) with all consideration to the simplification we used footprint indicator to compare our regions (see Table 1).
Tab. 1: Footprints
Portion
of
CO2
in
Footprint
footprint
CZ
4,9gha
2,56 gha
NZ
5,9 gha
1,6 gha
USA
9,8 gha
5,68 gha
Source: http://www.carbonfootprint.com
Design of our hypotheses
The important fact is “picture of
perception” of global changes by
society
Hypothesis : the global problems
like global warming requires some
elements of global consciousness.
Global consciousness is open
thinking phenomenon relatively
independent on geographic as
well as social and political
conditions.
Sociological sample
The number of respondent was approximately 200 of students in
each country.
The age of students was within the interval of twenty and thirty
years.
Age ratio of gender was balanced
As same as the representation of subjects of study especially the
rate between social and natural sciences.
Studenti ČR
Soubory - charakteristika
GENDER
male
45%
female
55%
Studenti NZ
Studenti USA
GENDER
GENDER
male
47%
f emale
53%
male
46%
female
54%
Studenti ČR
51-60
0%
31-50
2%
VĚK
nad 61
3%
do 20
24%
21-30
71%
Studenti USA
Studenti NZ
31-50
3%
AGE
51-60
0%
AGE
61and more
1%
21-30
27%
21-30
23%
under 20
73%
31-50
1%
under 20
72%
Studenti ČR
LOCATION WHERE YOU SPENT MOST OF YOUR
YEARS BEFORE GOING TO COLLEGE?
less than 1000
persons
15%
over 100000
39%
1000-4999
persons
5%
50000-99999
persons
8%
10000-49999
persons
28%
5000-9999
pesrsons
5%
Studenti USA
Studenti NZ
LOCATION WHERE YOU SPENT MOST OF YOUR
100000 andYEARS BEFORE GOING TO COLLEGE?
LOCATION WHERE YOU SPENT MOST OF YOUR
YEARS BEFORE GOING TO COLLEGE?
100000 and
more
8%
50000-99999
persons
27%
more
14%
50000-99999
persons
1000-4999
14%
less than 1000
persons
29%
persons
5%
10000-49999
persons
24%
5000-9999
persons
7%
10000-49999
persons
5000-9999
19%
persons
8%
less than 1000
persons
31%
1000-4999
persons
14%
STUDENTI CZ
Agroekologie
Biologie
Ekologie
Ekologie a ochrana prostředí
Ekologie lesa
Ekonomika
Ekonomika a management
Fyziologie lesa
Humanitní environmentalistika
Krajinná a aplikovaná ekologie
Krajinné inženýrství
Kulturologie
Lesnictví
Management ochrany přírody
Obchodní podnikání
Péče o ŽP
Půdní biologie
Romistika
Sociální a kulturní ekologie
Strukturální politika EU
Účetnictví a finanční řízení podniku
Učitelství
Zahradní a krajinná tvorba
Zoologie-ekologie živočichů
STUDENTI US
Business, accounting, finance
Education
Engineering
General liberal arts
Humanities and Arts
Law, journalism
Medical professions
Physical, biological an natural sciences
Social Sciences
STUDENTI NZ
Accountancy
Agribusiness
Agricultural Science, Economics
Animal Science
Anthropology, Museum Studies/Art
Applied Economy
Applied Science
Aviation
Biochemistry&Genetics
Biochemistry,Physiological & Molecular Plant
Biology, Economics
Biotechnology
Business - Information Systems, Economics
Business Studies
Computer Science
Decision Science
Earth Science
Economics
English
STUDENTI NZ
Environmental Science,
Financial Economics
Food Technology
Geography
History
Horticulture
Chemistry
Japanese
Management
Marketing
Mathemathics
Media Studies
Natural Resource And Environmental Economics
Natural Resource Management
Nurse
Photography
Politics
Property Valuation & Economics
Psychology
Resource And Environmental Planning
Science
Social Anthropology
Sport And Exercise Science
Vet Nursing
Zoology
Logical division of our questionnaire into three parts.
Fear
Responsibility
Information.
1. Fear of population in terms of CC impact
Tab.
Interest
GW
2:
in
How would you rate your level of interest in global climate
change?
Very
only a little
undecided
moderately
Tab. 3:
Likely
change
of
temperature within
next 50 years
Tab. 4: Appearance
of catastrophes as a
result
of
climate
change
not
interested
CZ
81%
6%
11%
2%
NZ
71%
12%
11%
6%
USA
61%
18%
15%
6%
The likely increase or decease in overall global temperature over next 50 years
CZ
NZ
USA
0,1- 2°C
39%
21%
39%
2 - 4 °C
36%
23%
22%
4 - 6 °C
15%
23%
10%
Don t know
4%
20%
22%
Decrease
1%
3%
1%
No change
1%
2%
3%
Increase
When we will see catastrophes as a result of global climate
changes
Don t know
have already appeared/within
the next 5 yrs
CZ
2%
51%
NZ
19%
45%
USA
21%
31%
Source: Czech Carbo, 2006,
n=571
Remark: selected data
Studenti
NZ
Studenti
USA
Studenti
ČR
Tab. 5:. GW
consequences (Order
of importance 0-5)
Order Czech Students
Order NZ
Order USA
Group 1
Group 1
Place Changes
Score
Place Changes
Score
1. Decreasing drinking water resources
(water)
4,16
1. (water)
3,95
1. (water)
3,71
2. Increasing risk of sunbathing (sunbathing)
3,79
2. (costs)
3,71
2.costs
3,53
3.Changing of drought and flood season
(flood)
3,58
3. (disease)
3,16
3. (flood)
3,23
4. Accelerated species extinction (extinction)
3,39
4. (flood)
3,13
4. (disease)
3,51
Group 1
Place
Score
Changes
Group 2
Group 2
5. Total change of scenery and landscape
(landscape)
3,36
5. (landscape)
3,04
5. (season)
3,05
6. Delay in changing of year’s seasons
(season)
6. (limits)
3,03
6. (landscape)
2,96
7. (seasons)
3,03
7. (limits)
2,95
3,30
7. Appearance of new diseases (disease) 3,28
Group 3
Group 3
Group 2
Group 3
8. Migration from endangered areas (migration)
2,86
8. (extinction)
2,91
8. (extinction)
2,81
9. Increased economic costs (costs)
2,76
9. (tax)
2,90
9.(sunbathing)
2,62
10. Implementing of a climate tax (tax)
2,67
10.(sunbathing)
2,86
10.(migration)
2,59
11. Regulated limits on business activities
(limits)
2,52
11. (migration)
2,74
11.(tax)
2,56
Legend:
Black
background/white
letters: all are in
accordance with
placing importance
of change in group
and place
Grey
background/black
letters: all are in
accordance with
placing importance
of change in group
not place
Grey
background/white
letters: just two
students groups are
in accordance with
location of change
in a group
Without
color:
there
is
no
accordance with
place or group
among all these
three groups of
students
2. Responsibility
The second part of our questionnaire labeled “responsibility”
could be described in frame of following questions:
Tab. 6: Influence of state on GW
Do you agree that your country reduction of CO2 has impact on
global warming?
yes
do not agree
CR
67%
27%
6%
NZ
38%
41%
20%
USA
10%
14%
Do you agree that you personally could influence global
75%
warming?
Tab. 7: Personal influence on
global warming
yes
Tab. 8: The proper societal
group to be addressed in case of
do not know
do not agree
do not know
CR
56%
29%
15%
NZ
52%
21%
26%
USA
47%
27%
25%
Which societal group do you believe could do the most to
reduce CO2 emissions?
businessmen
decreasing global warming
local authority
citizens
CZ
59%
13%
27%
NZ
59%
29%
8%
USA
57%
12%
20%
What would be the best approach to decreasing CO2
emissions?
Tab. 9: The best approach to
decreasing CO2 emissions
CZ
law
economics
citizens
personal
duty
CZ
38%
50%
1%
7%
NZ
44%
39%
12%
0%
USA
45%
34%
4%
16%
Source: Czech Carbo, 2006,
n=571
Remark: The rest of % to fit
the total of 100% are
missing answers
3. Information
Q11. Is the amount of public information on CO2 emissions and their
impacts sufficient?
Tab. 10: Public information
Level of agreement
(%)
Strongly agree
CZ
NZ
USA
3
3
6
17
13
13
8
20
26
Somewhat disagree
39
39
39
Strongly disagree
33
21
15
Somewhat agree
Undecided
Results
About half of our addressed respondents suppose that future
increase of temperature within the period of 50ty will be about 4
degree of Celsius
Future anticipated changes are perceived mostly as negative
(40%-60%), about 30% of our respondents could not make a
decision.
All respondents within our whole sample agree that businessmen
are the most influenced social group as to the responsibility of
GW. In spite of this fact there is a high ratio of personal
responsibility our cases considered to have.
Czech students evidently differs from NZ and US students. On
the second place following threat of drinking water appears the
threat of environmental disaster, afterwards personal fitness and at
the last place are the economic disadvantages.
Conclusions
Results show global consciousness like some waking-up phenomenon:
1 hungry for the new and relevant information concerns global climate changes
2. taking responsibility for the anthropogenic background of global climate changes
4. understanding of the ethical role of individual in this process of CC
5. witness of practical economic worries follows CC.
Thank you for your attention