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GTAP Resource #3521

"Analyzing environmental impacts in GTAP studies according to the life cycle assessment methodology"
by Dandres, Thomas, Caroline Gaudreault, Pablo Tirado Seco and Réjean Samson

In order to compare environmental impacts of 2 European energy policies, GTAP model have been combined with the life cycle assessment (LCA) methodology. Using LCA methodology allows an evaluation of environmental impacts caused by extractions of natural resources and emissions of substances that occur at each life cycle stage of products and services included in economic sectors. Regarding policies, the first one assumes current policies are maintained in the future from 2005 to 2025 while the second involves more significant increases in energy generation from renewable sources. Evolution of economy has been modeled through changes in macro-economic variables (skilled and unskilled labor, capital, gross domestic product and population) according to real values for the past period (2005-2010) and forecasted values for the future (2010-2025). Innovation of technologies has been modeled according to past tendencies observed in productivity growth. Results reveal that, at world scale, human health, climate change and natural resources would be less affected by the bioenergy policy, but damages on ecosystems would be more important. As expected, coal and wood sectors are significantly affected by EU bioenergy policy. The main reason is that EU bioenergy is mostly produced from wood biomass and used to substitute coal in electricity generation. At world scale, during 2005-2010, benefits of the EU bioenergy policy are balanced by rebound effects, especially in coal extraction sector. The use of LCA method with GTAP model provides two important benefits. First, it allows to assess the environmental impacts in GTAP studies according to damages caused by emissions/extractions of substances which is one step further than using emission/extraction factor that does not take into account damages made to the environment. Secondly, GTAP model provide a robust economic framework in LCA studies where economy is expected to be responsible of important indirect environmental impacts.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Dandres, T. (4/11/2011)
Updated: Dandres, T. (4/11/2011)
Visits: 2,455
- Economic growth
- Technological change
- Climate change policy
- Renewable energy
- European Union

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