IDEAS home Printed from https://ideas.repec.org/p/ete/etewps/ete0405.html
   My bibliography  Save this paper

The Environmental Costing Model: a tool for more efficient environmental policymaking in Flanders

Author

Listed:
  • Johan Eyckmans

    (EHSAL - Europese hogeschool Brussel; K.U.Leuven-Center for Economic Studies)

  • Erika Meynaerts

    (VITO - Vlaamse Instelling voor Technologisch Onderzoek)

  • Sara Ochelen

    (Ministerie van de Vlaamse Gemeenschap AMINAL - Administratie Milieu-, Natuur-, Land- en Waterbeheer,)

Abstract

The environmental costing model (Milieu-Kosten-Model or MKM in Dutch) is a tool for assessing cost-efficiency of environmental policy. The present paper describes the modelling methodology and illustrates it by presenting numerical simulations for selected multi-sector and multi-pollutant emission control problems for Flanders. First, the paper situates the concept of cost-efficiency in the context of Flemish environmental policy and motivates the chosen approach. Secondly, the structure of the numerical simulation model is laid out. The basic model input is an extensive database of potential emission reduction measures for several pollutants and several sectors. Each measure is characterized by its specific emission reduction potential and average abatement cost. The MKM determines, by means of linear programming techniques, least-cost combinations of abatement measures as to satisfy, possibly multi-pollutant, emission standards. Emission reduction targets can be imposed for Flanders as a whole, per sector or even per installation. The measures can be constrained to satisfy “equal treatment” of sectors and several other political feasibility constraints. Thirdly, the features of the model are illustrated by means of a multi-sector (non-ferrous, chemical and ceramics industry) and multi-pollutant (SO2, NOx) example. Results show clearly that important cost savings are possible by allowing for more flexibility (emission standards for Flanders as a whole instead of per sector). Cost savings from taking into account explicitly the multi-pollutant nature of environmental regulation are modest for the current test version of the database.

Suggested Citation

  • Johan Eyckmans & Erika Meynaerts & Sara Ochelen, 2004. "The Environmental Costing Model: a tool for more efficient environmental policymaking in Flanders," Energy, Transport and Environment Working Papers Series ete0405, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    • Handle: RePEc:ete:etewps:ete0405
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/119343/1/ETE-WP-2004-06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dellink, Rob & Hofkes, Marjan & van Ierland, Ekko & Verbruggen, Harmen, 2004. "Dynamic modelling of pollution abatement in a CGE framework," Economic Modelling, Elsevier, vol. 21(6), pages 965-989, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wustenberghs, H. & Broekx, Steven & Van Hoof, K. & Claeys, Dakerlia & D'Heygere, T. & D'Hooghe, J. & Dessers, R. & Huysmans, T. & Lauwers, Ludwig H. & Meynaerts, E. & Vercaemst, P., 2008. "Cost-benefit analysis of abatement measures for nutrient emission from agriculture," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44245, European Association of Agricultural Economists.
    2. Vincent Linderhof & Stijn Reinhard, 2011. "Cost-effectiveness analysis of nutrients abatement measures for the EU Water Framework Directive: a regional model for the Beerze and Reusel river basin in the Netherlands (refereed paper)," ERSA conference papers ersa10p969, European Regional Science Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dellink, Rob & van Ierland, Ekko, 2006. "Pollution abatement in the Netherlands: A dynamic applied general equilibrium assessment," Journal of Policy Modeling, Elsevier, vol. 28(2), pages 207-221, February.
    2. Ralph Winkler, 2008. "Optimal compliance with emission constraints: dynamic characteristics and the choice of technique," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(4), pages 411-432, April.
    3. Ying Fan & Jian-Ling Jiao & Qiao-Mei Liang & Zhi-Yong Han & Yi-Ming Wei, 2007. "The impact of rising international crude oil price on China's economy: an empirical analysis with CGE model," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 27(4), pages 404-424.
    4. González-Eguino, Mikel, 2011. "The importance of the design of market-based instruments for CO2 mitigation: An AGE analysis for Spain," Ecological Economics, Elsevier, vol. 70(12), pages 2292-2302.
    5. Bourne, M. & Philippidis, G. & Quiroga, S. & Fernandez-Haddad, Z., 2013. "Kyoto and Mañana: A CGE analysis of Spanish Greenhouse Gas targets to 2020," Conference papers 332344, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Eriksson, Clas, 2018. "Phasing out a polluting input in a growth model with directed technological change," Economic Modelling, Elsevier, vol. 68(C), pages 461-474.
    7. Haoqi, Qian & Libo, Wu & Weiqi, Tang, 2017. "“Lock-in” effect of emission standard and its impact on the choice of market based instruments," Energy Economics, Elsevier, vol. 63(C), pages 41-50.
    8. Ignaciuk, Adriana M. & Dellink, Rob B., 2006. "Biomass and multi-product crops for agricultural and energy production--an AGE analysis," Energy Economics, Elsevier, vol. 28(3), pages 308-325, May.
    9. Hajime Takatsuka, 2020. "Uniform emission taxes, abatement, and spatial disparities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1133-1166, October.
    10. Halkos, George & Tzeremes, Nickolaos & Kourtzidis, Stavros, 2014. "Abating CO2 emissions in the Greek energy and industry sectors," MPRA Paper 60807, University Library of Munich, Germany.
    11. Johannes Bollen & Corjan Brink, 2012. "Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies," CPB Discussion Paper 220, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Verikios, George, 2017. "The Importance of Periodicity in Modelling Infectious Disease Outbreaks," Conference papers 332907, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Takatsuka, Hajime, 2020. "Uniform emission taxes, abatement, and spatial disparities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    14. Kiuila, O. & Rutherford, T.F., 2013. "The cost of reducing CO2 emissions: Integrating abatement technologies into economic modeling," Ecological Economics, Elsevier, vol. 87(C), pages 62-71.
    15. Bollen, Johannes & Brink, Corjan, 2014. "Air pollution policy in Europe: Quantifying the interaction with greenhouse gases and climate change policies," Energy Economics, Elsevier, vol. 46(C), pages 202-215.
    16. M. Gallastegui & M. González-Eguino & I. Galarraga, 2012. "Cost effectiveness of a combination of instruments for global warming: a quantitative approach for Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 3(1), pages 111-132, March.
    17. Rive, Nathan, 2010. "Climate policy in Western Europe and avoided costs of air pollution control," Economic Modelling, Elsevier, vol. 27(1), pages 103-115, January.
    18. Vicki Duscha & Everett B. Peterson & Joachim Schleich & Katja Schumacher, 2019. "Sectoral Targets To Address Competitiveness — A Cge Analysis With Focus On The Global Steel Sector," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-27, February.

    More about this item

    Keywords

    environmental economics; cost efficiency; multi-pollutant emission control problem; numerical simulation model; linear programming;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:etewps:ete0405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://edirc.repec.org/data/etkulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.