1. SIXTH FRAMEWORK PROGRAMME
[6.1]
[ Sustainable Energy Systems]
Green Accounting: Aggregation, Regional Distribution And Transferability of Monetary Values Milan Ščasný Charles University Environment Center, Prague CZ in collaboration with Jan Melichar, Miroslav Havránek, Vojtěch Máca (CUEC) Philipp Preiss (UStutt) Alistair Hunt (UniBath) Ståle Navrud (SWECO)

2. Motivation: Indicators
EU27 BE CZ DE UK PT
ROM SE SK
NH3
4 408 48
2 173
702 4
559
NMVOC
76 104
902
6 175
6 668
4 061
968
7 058
2 892
1 806
NOX
34 839
89 772
60 686
12 412
14 998
PMco
91 306
510
1 310
1 021
4 544
1 143
16 897
972
249
PM2.5
90 898
573
2 560
8 090
5 413
1 376
3 177
455
SO2
29 393
8 142
32 452 Cd
13.4
0.1
1.2
0.3
0.9
1.0
0.4
0.5 As
34.6
2.5
2.4
0.6
1.6
0.2
0.0 Ni
369.6
3.5
11.7
13.1
5.1
37.4
14.5
4.0 Pb
115.7
10.4
5.9
10.0
5.0
2.3 Hg
1.5
2.2
2.0
CO2, 1000t
24 624
55 505
21 174
46 269
8 436
8 219
GHG, 1000t
29 939
58 604
23 881
46 431
11 676
11 310
the high quality dispersion modelling at regional, i.e. a European scale makes it too expensive, and since the data is not available, often impossible, to perform calculations for each single source of emission.
parameterised results from an Eulerian dispersion and chemical transformation model from The Norwegian Meteorological Institute /Tarrasón, 2008/ have been derived based on source receptor matrices (SRM). These SRM allowed to attribute to each unit of emission in one whole region a concentration or deposition increment in each of the 50 x 50 km2 EMEP grid cells all over Europe. According to the IPA with the aid of CRF (concentration response functions) and the number of exposed population physical impacts are then calculated for each grid cell. Finally, the impacts are weighted and aggregated by means of monetary valuation of each physical impact in order to derive external costs per unit of emission. This “quasi marginal” external costs per unit of emission can be used to estimate the external cost of emissions caused by a sector or region. The costs are total external cost, i.e. occurring in the whole of Europe. Damage costs per unit of emission distinguished into inside the source country and outside the source country are currently not available
classical and GHG pollutants by Eurostat, 1A_1A Public Electricity and Heat Production for 2005
micro pollutants by EMEP 2005, Public power

3. Generalisation Method and Tool {as presented earlier by Philipp Preiss, Uni Stuttgart}
Impact Pathway Analysis updated
ExternE 2008 update (CRF/ERF/DRF, monetary values, dispersion and fate modelling)
average generic values per pollutant and source country
parametrization  Eulerian dispersion and chemical transformation model based on SR matrices (47 for the EU27, 14 for the rest of Europe, 5 for others)
cumulative concentration/deposition in each of 50x50 km2 EMEP grid cells
all impacts valued and aggregated
software tool update (EcoSenseWeb, WATSON & OMEGA)
Damage due to Climate Change (RS1b NEEDS & CASES)
MSC of Carbon by IAM FUND (Tol & Anthoff), MAC based on literature review (Kiuik et al.)
the high quality dispersion modelling at regional, i.e. a European scale makes it too expensive, and since the data is not available, often impossible, to perform calculations for each single source of emission.
parameterised results from an Eulerian dispersion and chemical transformation model from The Norwegian Meteorological Institute /Tarrasón, 2008/ have been derived based on source receptor matrices (SRM). These SRM allowed to attribute to each unit of emission in one whole region a concentration or deposition increment in each of the 50 x 50 km2 EMEP grid cells all over Europe. According to the IPA with the aid of CRF (concentration response functions) and the number of exposed population physical impacts are then calculated for each grid cell. Finally, the impacts are weighted and aggregated by means of monetary valuation of each physical impact in order to derive external costs per unit of emission. This “quasi marginal” external costs per unit of emission can be used to estimate the external cost of emissions caused by a sector or region. The costs are total external cost, i.e. occurring in the whole of Europe. Damage costs per unit of emission distinguished into inside the source country and outside the source country are currently not available

4. Generalisation Why and What For?
Easy-get values of external costs without running the EcoSense model
Uses
Impact Assessment
CBA
RIA
(S)EIA
Indicators
Genuine Savings
Macro Aggregates
Eco Rucksacks
the high quality dispersion modelling at regional, i.e. a European scale makes it too expensive, and since the data is not available, often impossible, to perform calculations for each single source of emission.
parameterised results from an Eulerian dispersion and chemical transformation model from The Norwegian Meteorological Institute /Tarrasón, 2008/ have been derived based on source receptor matrices (SRM). These SRM allowed to attribute to each unit of emission in one whole region a concentration or deposition increment in each of the 50 x 50 km2 EMEP grid cells all over Europe. According to the IPA with the aid of CRF (concentration response functions) and the number of exposed population physical impacts are then calculated for each grid cell. Finally, the impacts are weighted and aggregated by means of monetary valuation of each physical impact in order to derive external costs per unit of emission. This “quasi marginal” external costs per unit of emission can be used to estimate the external cost of emissions caused by a sector or region. The costs are total external cost, i.e. occurring in the whole of Europe. Damage costs per unit of emission distinguished into inside the source country and outside the source country are currently not available

5. Generalisation & Aggregation Damage per ton of pollutant
the recipient country j
Human health
Bio-diversity
Crops
Mate-rials
Climate change
Total
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs, VOC
GHGs
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.
i, j – the source and the recipient country resp.
imp – impact category (e.g. LLY, cough, cancer,…)

6. Damage: Classical Pollutants (billion €2000 in each Member State)
Damages vary
Scale of the country
Technology operating

7. Damage: Classical Pollutants (billion €2000 in each Member State)

8. Climate Change Marginal External Costs, Euro(2000) per t CO2
Mixture of positive methods (IAM, MAC estimations) and normative approaches (one’s choice on values of key parameters, i.e. discount rate and equity weighting)
(Tol & Anthoff 2007;
NEEDS RS1b WP6)

9. Climate Change Marginal External Costs, Euro(2000) per t CO2
Mixture of positive methods (IAM, MAC estimations) and normative approaches (one’s choice on values of key parameters, i.e. discount rate and equity weighting)
option €
(model FUND with 1% PRTR, without Eq.W., 1% trim mean)
option €
option €
option €

10. Damage: Climate Change (billion €2000 in each Member State)

12. External Costs> power sector % GDP(nominal Euro) in each Member State

13. External Costs> power sector % GDP (by purchasing power parity) in MS

14. External Costs> power sector €2000 per capita in each MS

15. External Costs> power sector % GDP (nominal Euros) per EU-region

16. External Costs> power sector % GDP (by purchasing power) per EU-region

17. External Costs> power sector €2000 per capita in region

18. External Costs> EU power sector 68 billion € p. a
External Costs> EU power sector 68 billion € p.a € per capita 0.7% GDP

19. External Costs> EU whole economy 311 billion € p. a
External Costs> EU whole economy billion € p.a € per capita 3.1% GDP

20. (Dis-)Aggregation of Health Effects of CZ power sector–
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions. 20

21. World Bank’s Genuine Savings
GS = [GNP – C – K] – n(R–g) – (Pemi – Passim) + edu
Net National Savings
+ education expenditures
energy and mineral depletion
net forest depletion
CO2 damage
PM10 damage
- damage due to other classical pollutants
Caveat:
Adjusted Net Savings is one-sided indicator, i.e. only the negative value indicates weak non sustainability

22. Adjusted (Genuine) Net Savings
by World Bank, in % GNI

23. Adjusted (Genuine) Net Savings
by World Bank and NEEDS, in % GNI

24. Emission abatement in Hungary 2000-06, % GNI
Adjusted Net Savings
Emission abatement in Hungary , % GNI

25. Regional Disaggregation Transferability of Values Among the Regions

26. (Dis-)Aggregation Total the recipient country j SO2 € €- Σ € NOx PM2.5
Human health
Bio-diversity
Crops
Mate-rials
Climate change
Total
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs, VOC
GHGs
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.
i – the source/emitting country (who deliver damage)
j – the recipient country (who bore damage)
imp – impact category (e.g. LLY, cough, cancer,…)

27. (Dis-)Aggregation – SVK CZ DE UK POL AT
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs CZ
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs DE
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs UK
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs
POL
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs AT
Human health
Biodivers
Crop
Mate-rials CC
Sum
SO2 € €-
Σ €
NOx
PM2.5
PM2.5-10
NH3
NMVOC
HMs…
GHGs –
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

28. (Dis-)Aggregation damage by country and impact
cough HA
YOLLs ….
Sum
country_1
{X1 * €}cough
{X1 * €}ha
{X1 * €}yoll …
Σ €country1
country_2
{X2 * €}cough
{X2 * €}ha
{X2 * €}yoll
Σ €country2
country_3
{X3 * €}cough
{X3 * €}ha
{X3 * €}yoll
Σ €country3
country_4
{X4 * €}cough
{X4 * €}ha
{X4 * €}yoll
Σ €country4
country_5
{X5 * €}cough
{X5 * €}ha
{X5 * €}yoll
Σ €country5
country_n
{Xn * €}cough
{Xn * €}ha
{Xn * €}yoll
Σ €countryn
Σ €cough
Σ €ha
Σ €yoll
Σ €
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.
i – the source/emitting country (who deliver damage)
j – the recipient country (who bore damage)
imp – impact category (e.g. LLY, cough, cancer,…)

29. (Dis-)Aggregation damage by country and impact
cough HA
YOLLs ….
Sum
country_1
{X1 * €EU}cough
{X1 * €EU}ha
{X1 * €EU}yoll …
Σ €country1
country_2
{X2 * €EU}cough
{X2 * €EU}ha
{X2 * €EU}yoll
Σ €country2
country_3
{X3 * €EU}cough
{X3 * €EU}ha
{X3 * €EU}yoll
Σ €country3
country_4
{X4 * €EU}cough
{X4 * €EU}ha
{X4 * €EU}yoll
Σ €country4
country_5
{X5 * €EU}cough
{X5 * €EU}ha
{X5 * €EU}yoll
Σ €country5
country_n
{Xn * €EU}cough
{Xn * €EU}ha
{Xn * €EU}yoll
Σ €countryn
Σ €cough
Σ €ha
Σ €yoll
Σ €
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.
i – the source/emitting country (who deliver damage)
j – the recipient country (who bore damage)
imp – impact category (e.g. LLY, cough, cancer,…)

30. Regional Distribution of Damage
Recipient country of damage due to classical pollutants born by the Czech power sector

31. (Dis-)Aggregation < domestic-wide perspective > e. g
(Dis-)Aggregation < domestic-wide perspective > e.g. monetize impacts by CZ values
cough HA
YOLLs ….
Sum
country_1
{X1 * €CZ}cough
{X1 * €CZ}ha
{X1 * €CZ}yoll …
Σ €country1
country_2
{X2 * €CZ}cough
{X2 * €CZ}ha
{X2 * €CZ}yoll
Σ €country2
country_3
{X3 * €CZ}cough
{X3 * €CZ}ha
{X3 * €CZ}yoll
Σ €country3
country_4
{X4 * €CZ}cough
{X4 * €CZ}ha
{X4 * €CZ}yoll
Σ €country4
country_5
{X5 * €CZ}cough
{X5 * €CZ}ha
{X5 * €CZ}yoll
Σ €country5
country_n
{Xn * €CZ}cough
{Xn * €CZ}ha
{Xn * €CZ}yoll
Σ €countryn
Σ €cough
Σ €ha
Σ €yoll
Σ €
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

32. (Dis-)Aggregation < domestic & selfish perspective >
cough HA
YOLLs ….
Sum
country_CZ
{X1 * €CZ}cough
{X1 * €CZ}ha
{X1 * €CZ}yoll …
Σ €CZ
country_2
country_3
country_4
country_5
country_n
Σ €Czcough
Σ €Czha
Σ €Czyoll
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

33. (Dis-)Aggregation < country-specific values >
cough HA
YOLLs ….
Sum
country_CZ
{X1 * €CZ}cough
{X1 * €CZ}ha
{X1 * €CZ}yoll …
Σ €CZ
country_DE
{X2 * €DE}cough
{X2 * €DE}ha
{X2 * €DE}yoll
Σ €DE
country_PL
{X3 * €PL}cough
{X3 * €PL}ha
{X3 * €PL}yoll
Σ €PL
country_BG
{X4 * €BG}cough
{X4 * €BG}ha
{X4 * €BG}yoll
Σ €BG
country_UK
{X5 * €K}cough
{X5 * €K}ha
{X5 * €K}yoll
Σ €UK
country_n
{Xn * €n}cough
{Xn * €n}ha
{Xn * €n}yoll
Σ €n
Σ €cough
Σ €ha
Σ €yoll
Σ €
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

34. (Dis-)Aggregation < country-specific values >
ExternE state-of-the-art: generic default value for each country
monetary values based on original study in each country
expensive
time-intensive
literature review within NEEDS
productivity loss based on GDP per employee for each country
medical treatment costs in CZ, POL, TUN, and literature review
welfare loss based on lit review
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions. 34

35. (Dis-)Aggregation < country-specific values >
naïve transfer --- one generic value, i.e. the EU-15 average
benefit transfer techniques
adjust the values by purchasing power
medical costs index for COI (WHO stata; as Pattanayak et al. 2002)
PPP-for-expenditures adjustment of WTP
country specific loss of productivity, i.e. GDPi/Li
adjust the values by relative changes in wealth
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

36. (Dis-)Aggregation < values adjustments > Damage due to health effects related to classical pollutants released by the CZ power sector
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions.

37. (Dis-)Aggregation < country-specific values > regional distribution
For many questions in research and policy we are not interested in the damages caused by one single process at a certain location but we are interested in the damages per functional unit (e.g. kWh) of a certain technology or even per economic sector in different regions, countries or sub-regions. 37

38. Concluding Remarks National Accounting vs. Impact Pathway
damage affects individuals outside the country
in very long time horizons considered
future prices used (MSC of carbon)
marketed goods (crops, materials, medical costs), non-marketed goods (disutility, disamenity) and potential income (loss in productivity and earnings)
Production vs. Consumption related damage
Social planner perspective and ethics
equity weighting vs. country-specific values
country-specific preferences

39. Conclusions
NEEDS
documents useful uses of the external costs calculations in green accounting and derivation of SD indicators
provides updated and geographically extended EcoSenseWeb tool that allows to disaggregate the impacts per country and impact
 using the country-specific monetary values is possible, but maybe problematic ethically
opens topics for further research and debate
 transferability issues & monetary valuation