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On market-mediated emissions and regulations on life cycle emissions

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  • Rajagopal, Deepak
  • Zilberman, David

Abstract

We analyze the use of life cycle assessment (LCA) as a regulatory tool using biofuel regulations as an illustrative example. A regulatory context calls for a consequential LCA (CLCA) of a policy as opposed to an attributional LCA (ALCA) of a product. In performing CLCA, issues of scale, price effects, technology and policy in the counterfactual state of the world, strategic behavior, policy horizon etc. need consideration. This appears to increase both uncertainty in estimates and the cost of performing LCA. We suggest heuristics for determining vulnerability to harmful indirect effects at an early stage in the policy process and discuss alternative policies to limit harmful indirect effects without engaging in the full effort of computation and selection of a central estimate for uncertain outcomes.

Suggested Citation

  • Rajagopal, Deepak & Zilberman, David, 2013. "On market-mediated emissions and regulations on life cycle emissions," Ecological Economics, Elsevier, vol. 90(C), pages 77-84.
    • Handle: RePEc:eee:ecolec:v:90:y:2013:i:c:p:77-84
    DOI: 10.1016/j.ecolecon.2013.03.006
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    3. D. Rajagopal, 2017. "A synthesis of unilateral approaches to mitigating emissions leakage under incomplete policies," Climate Policy, Taylor & Francis Journals, vol. 17(5), pages 573-590, July.
    4. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Angela Zinnai & Alberto Pardossi, 2018. "A Reflection of the Use of the Life Cycle Assessment Tool for Agri-Food Sustainability," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    5. Sinéad M. Madden & Alan Ryan & Patrick Walsh, 2022. "A Systems Thinking Approach Investigating the Estimated Environmental and Economic Benefits and Limitations of Industrial Hemp Cultivation in Ireland from 2017–2021," Sustainability, MDPI, vol. 14(7), pages 1-21, March.
    6. Klotz, Richard & Bento, Antonio M. & Landry, Joel R., 2013. "Economic Insights Required for Using Lifecycle Analysis for Policy Decisions," 2014 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA 161654, Agricultural and Applied Economics Association.

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