A cost–benefit analysis of the environmental taxation policy in China: A frontier analysis‐based environmentally extended input–output optimization method

China's high‐speed economic development and reliance on overconsumption of natural resources have led to serious environmental pollution. Environmental taxation is seen as an effective economic tool to help mitigate air pollution. In order to assess the effects of different scenarios of environmental taxation policies, we propose a frontier‐based environmentally extended input–output optimization model with explicit emission abatement sectors to reflect the inputs and benefits of abatement. Frontier analysis ensures policy scenarios are assessed under the same technical efficiency benchmark, while input–output analysis depicts the wide range of economic transactions among sectors of an economy. Four scenarios are considered in this study, which are increasing specific tax rates of SO₂, NO_x, and soot and dust separately and increasing all three tax rates simultaneously. Our estimation results show that: raising tax rates of SO₂, NO_x, and soot and dust simultaneously would have the highest emission reduction effects, with the SO₂ tax rate making the greatest contribution to emission reduction. Raising the soot and dust tax rate is the most environmentally friendly strategy due to its highest abatement to welfare through avoided health costs. The combination of frontier analysis and input–output analysis provides policy makers a comprehensive and sectoral approach to assess costs and benefits of environmental taxation.     

Climate change impacts on asphalt road pavement construction and maintenance: An economic life cycle assessment of adaptation measures in the State of Virginia,United States

Pavement design and management practices must be adapted in response to future climate change. While many studies have attempted to identify different methods to adapt pavements to future climate conditions, the potential economic impacts of the adaptations still remain largely unquantified. This study presents the results of a comprehensive life‐cycle cost analysis (LCCA) aimed at quantifying the potential economic impacts of a climate adaptation method, in which an upgraded asphalt binder (Performance Grade PG 76‐22) is used in the construction and maintenance of flexible pavement sections in lieu of the original binder (PG 70‐22) for improved resistance against high temperatures. For each of three major Virginia Department of Transportation (VDOT) districts with different climates, three case studies consisting of typical interstate, primary, and secondary pavement sections were considered. The LCCA accounted for the costs incurred during the mixture's production, maintenance, and use phases of the pavement life cycle by explicitly considering future climate projections, pavement life‐cycle performance, maintenance effects, and work zone user delays. The study concludes that pavements using the upgraded binder not only perform better over time but are also economically advantageous compared to those with the original binder under the conditions of the anticipated future climate conditions (2020–2039).     

Supply versus use designs of environmental extensions in input–output analysis: Conceptual and empirical implications for the case of energy

Input–output analysis is one of the central methodological pillars of industrial ecology. However, the literature that discusses different structures of environmental extensions (EEs), that is, the scope of physical flows and their attribution to sectors in the monetary input–output table (MIOT), remains fragmented. This article investigates the conceptual and empirical implications of applying two different but frequently used designs of EEs, using the case of energy accounting, where one represents energy supply while the other energy use in the economy. We derive both extensions from an official energy supply–use dataset and apply them to the same single‐region input–output (SRIO) model of Austria, thereby isolating the effect that stems from the decision for the extension design. We also crosscheck the SRIO results with energy footprints from the global multi‐regional input–output (GMRIO) dataset EXIOBASE. Our results show that the ranking of footprints of final demand categories (e.g., household and export) is sensitive to the extension design and that product‐level results can vary by several orders of magnitude. The GMRIO‐based comparison further reveals that for a few countries the supply‐extension result can be twice the size of the use‐extension footprint (e.g., Australia and Norway). We propose a graph approach to provide a generalized framework to disclosing the design of EEs. We discuss the conceptual differences between the two extension designs by applying analogies to hybrid life‐cycle assessment and conclude that our findings are relevant for monitoring of energy efficiency and emission reduction targets and corporate footprint accounting.