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Essays on climate policy and agriculture

Aklilu, Abenezer Zeleke (2019). Essays on climate policy and agriculture. Diss. (sammanfattning/summary) Uppsala : Sveriges lantbruksuniv., Acta Universitatis Agriculturae Sueciae, 1652-6880 ; 2019:8
ISBN 978-91-7760-334-4
eISBN 978-91-7760-335-1
[Doctoral thesis]

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This thesis is a compilation of four papers that study energy demand, climate policy, production, and carbon sequestration within transport, agriculture and forestry. The four papers study separate topics, but have in common that they address issues that are relevant to Sustainable Development Goals. The first paper estimates the short-run and long-run price and income elasticities of gasoline and diesel demand in the EU-28 countries. The estimation method uses the ARDL bounds approach and tests the existence of a long-run relationship using data from 1978 to 2013. The study provides methodologically consistent elasticity estimates that are comparable across the EU-28 countries and allow the analysis and forecasting of the effect of a common fuel policy. Applying the estimated elasticities to an analysis of the EU’s 2030 emission and fuel consumption reduction targets shows that the current tax level does not guarantee that the target will be achieved. The second paper estimates the cost to car owners of achieving the EU’s 2050 transport sector emission reduction targets through passenger car switching from fossil fuel-driven to hybrid and electric-driven cars. Costs are calculated as decreases in consumer surplus using a dynamic optimization model. The results show that the total emission reduction cost amounts to 0.37% of the EU’s GDP, and that Germany, Italy, Spain, France, and the UK account for approximately two thirds of the total cost. Hybrid cars are cost-effective means of abatement, while electric cars are a viable means of abatement only when coupled with grid decarbonization. The third paper examines the effect of time spent collecting water for household consumption on rural agricultural production. A household-level fixed effects estimation approach is employed using three-round panel data from Ethiopia. The results show that time allocated for water collection negatively affects agricultural production by displacing productive labor. The fourth paper reviews studies in economics on the efficient design of policies for forest carbon sequestration and compares their findings with the design systems in practice. The paper shows that specific design problems are associated with the heterogeneity of landowners, uncertainty, additionality, and permanence in carbon projects. Discounting the value of the forest carbon sink, optimal contract design, and offset baseline management are recommended in the literature for the management of most design problems.

Authors/Creators:Aklilu, Abenezer Zeleke
Title:Essays on climate policy and agriculture
Series Name/Journal:Acta Universitatis Agriculturae Sueciae
Year of publishing :1 February 2019
Depositing date:1 February 2019
Number of Pages:22
IAklilu, A.Z. (2019). Gasoline and diesel demand in the EU: Implications for the 2030 emission goal. (Submitted to Renewable & Sustainable Energy Reviews)
IIAklilu, A.Z. (2019). Cost to car owners of the EU’s 2050 targets for CO2 emission reduction from the transport sector. (Manuscript)
IIIAklilu, A.Z. Does water collection for household consumption affect agricultural production? Evidence from Ethiopia. (Manuscript)
IVGren, I-M.*, & Aklilu, A. Z. (2016). Policy design for forest carbon sequestration: A review of the literature. Forest Policy and Economics, 70, 128-136.
Place of Publication:Uppsala
Publisher:Department of Economics, Swedish University of Agricultural Sciences
ISBN for printed version:978-91-7760-334-4
ISBN for electronic version:978-91-7760-335-1
Publication Type:Doctoral thesis
Full Text Status:Public
Agris subject categories.:E Economics, development, and rural sociology > E16 Production economics
P Natural resources > P05 Energy resources management
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
Keywords:gasoline and diesel demand, price and income elasticity, ARDL bounds, GHG emission reductions, EU 2050 targets, passenger cars, cost-effectiveness, water collection, agricultural production, policy design, forest carbon sequestration
Permanent URL:
ID Code:15880
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: Abenezer Zeleke Aklilu
Deposited On:01 Feb 2019 11:58
Metadata Last Modified:09 Sep 2020 14:17

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