Jyrki Luukkanen

The European Union balancing between CO2 reduction commitments and growth policies: decomposition analyses

Abstract This article is an empirical study of the whole energy system development in the European Union. The analysis covers the years 1960–1998. The decomposition analysis of energy and CO 2 intensities of the different EU countries and Norway reveal large differences between the individual countries. The reasons for the differences in energy intensity changes are explained by the structural changes of the economies. The changes in CO 2 intensities are explained by the energy intensity changes and by the changes is fuel switching. The study verifies the conclusion that there are still big challenges in the harmonisation of energy and climate policy in the EU.

Environmental taxes on fuels and electricity — some experiences from the Nordic countries

In economic theory, environment-based energy taxation provides a direct financial incentive for environmentally sound economic behaviour in the energy field. In practice, only a few countries have implemented such taxes unilaterally in the 1990s. To be effective, environment-based energy taxes seem to need international implementation. The EU Commission has made three proposals in 1992, 1995 and 1997, but so far none of them has proceeded in the negotiations. In this article, we focus on implemented environmental taxes on fuels and electricity in the Nordic countries. Firstly, the idea of environment-based taxes as a part of sustainable energy policy is presented. Secondly, we review the impacts of this kind of taxes on the environment, energy production and consumption, income distribution, and competitiveness via estimates presented in the literal sources. Thirdly, we review comparative studies of environmental taxes on energy from a methodological perspective. And finally, we analyse the use of energy tax comparisons in political decision-making. A recent energy tax reform in Finland is used as an example.

ASEAN tigers and sustainability of energy use--decomposition analysis of energy and CO2 efficiency dynamics

Abstract This study is a comparative analysis of the development of energy intensity and CO2 emission intensity in the ASEAN countries in the years 1971–97. The reasons and driving forces behind the changes are studied in the article using a complete decomposition methodology. The decomposition analysis explains energy use or CO2 emissions with three different factors: activity effect, structural effect and intensity effect. The authors provide an analysis of dynamic changes of energy consumption and CO2 emission flows. Intensity effects on energy use and CO2 emissions revealed large differences in the performance of ASEAN countries. An interesting finding of the study is that in the 1990s the intensity effects on CO2 emissions in ASEAN countries have started to increase indicating decreasing CO2 efficiencies of the economies. The general observation on the basis of decomposition analyses is that the phase of industrialization is increasing the energy intensity of the nations and, when the increased energy demand is fulfilled with fossil fuels, the CO2 emissions will inevitable grow. However, it has to be recognized that the CO2 emissions per capita in ASEAN countries are very low (except in Singapore) compared with many OECD countries.

Green paper with green electricity? Greening strategies of nordic pulp and paper industry

The article studies the opinions of paper producers in Finland and Norway and Finnish power producers about the eco-labelling of electricity and its possible effects on pulp and paper industry. The point of departure in the study is how large industrial consumers mediate concerns of environmental issues to the producers. Based on interviews of environmental, energy/power and marketing sector representatives of the companies the article analyses different views related to the criteria of green labelling, green electricity and papermaking, energy sources as image sources, environmental image of papermaking and the threats and opportunities the companies face in the changing international context. The analysis of the interviews is contextualised in the endogenous market based regulation framework of electricity market regulation.

Sustainability Evaluation Frameworks and Alternative Analytical Scenarios of National Economies

In this article a macro-oriented conceptual framework of the conditions necessary for the advancement of sustainability within an economy and society is formulated and analysed. The theoretical framework presented is a set of logical identities, which define relationships between the total environmental stress (TES) and the basic indicators of economic, technological and social development. The framework, called the Total Environmental Stress Approach, provides necessary but not sufficient conditions for advancing sustainability. Scenario alternatives utilizing the TES approach with data from Finland are presented to evaluate the theoretical framework.

Relationships of the dimensions of sustainability as measured by the sustainable society index framework

This article presents a study of the interrelationships between the different dimensions of sustainability as measured by the sustainable society index framework. We examine the statistical relationships between the four indices making up the sustainable society index framework. The analysis uses the complete existing data set provided by Sustainable Society Foundation for the years 2006, 2008, 2010 and 2012 and for 151 countries. While the time period where data are available is quite short, we can make some preliminary observations about the apparent trends in the interrelationships of the different dimensions of sustainability. This study shows that the three dimensions of sustainability are far from all being synergic and positively correlated. There is a strong negative correlation between human well-being and environmental well-being. This is problematic from the point of view of the Brundtland Commission’s three-pillar definition of sustainability. However, the trade-off relationship between economic and environmental development measured by the economic well-being index and environmental well-being index is decreasing and the dimensions are becoming more de-linked. This trend is promising from the sustainability perspective.

A comparison of Nordic energy and CO2 intensity dynamics in the years 1960–1997

This study is a comparative analysis of energy consumption and CO2 emission flows in the Nordic countries of Finland, Denmark, Norway and Sweden from the years 1960–1997. The comparative analyses are based on complete decomposition methodology, from which the authors provide an analysis of the dynamic changes of energy consumption and CO2 emission flows in those Nordic economies. The comparative analysis reveals that:1.The economic activity effects of the different Nordic countries were quite similar.2.The structural effects varied considerably indicating differences in the relative economic activities in the analysed countries.3.The intensity effects on energy use suggest that there were no significant changes in Finland and Sweden during that period. In Denmark and Norway, although intensity effects first increased in the 1960s, they had a downward sloping trend after 1970. The intensity effects of CO2 emissions increased until the year 1970 and thereafter decreased until the year 1990. In the 1990s, only Norways intensity effect continued to decrease. In contrast to the other Nordic countries, Finlands CO2 emission intensity effect differs greatly. It continued to increase until the year 1980, then decreased sharply at the beginning of the 1980s and experienced considerable fluctuations after that.

Energy and CO 2 efficiency dynamics in world regions

Climate change has been described by scientists, environmentalists and politicians as a threat unprecedented in human experience. Emissions of greenhouse gases from human activities constitute the proximate cause. Greenhouse gas emissions are related to the efficiency developments of spatial energy systems. The study analyses the efficiency development in the global world economy. This study is a comparative analysis of energy and CO 2 emission intensity effects in world regions from the years 1971-1999. The analysed regions are Latin America, USA, Africa, the Middle East, China, the rest of Asia and Europe. The comparative analyses are based on the complete decomposition methodology, from which the authors provide the analysis of dynamic changes of energy consumption and CO 2 emission flows compared with economic performance in the larger regional economies of the world. In this article, the authors report the activity effects, the structural effects and the intensity effects in these different world regions.

G-7 countries on the way to sustainable energy systems?

This study is a comparative analysis of energy production and CO2 emission flows in the G-7 countries in the years 1960-1999. The comparative analyses are based on the complete decomposition methodology. The authors provide an analysis of dynamic changes of energy and CO2 emission flows in the G7-economies. The comparative analyses reveal that: (1) activity effects of the different G-7 countries were quite similar. The largest increase in the activity effect has been in the US economy, due to its large size. (2) Structural effects varied considerably indicating differences in economic activities in the analysed countries. (3) Intensity effects on energy use and CO2 emissions revealed large differences between the countries. The energy intensity effects have decreased after 1970 in all the G-7 countries except France. All the G-7 countries have showed decreasing CO2 emission intensities after the year 1970.

Poverty–Environment Nexus in the Lao PDR: Analysis of Household Survey Data

The results of the household survey (n=1602) analysis suggest that a poverty–environment nexus exists in the Lao PDR but the nexus depends on the environmental problem. The most explicit relations were those between poverty and using fuelwood for cooking, and poverty and access to safe drinking water, whereas recent negative changes regarding deforestation and land erosion exhibited only a weak connection. Outdoor air pollution was the most common problem experienced, although no connection to poverty was found. The two most common recent improvements were related to indoor air quality and sanitation, and they had been more prevalent for wealthier households.