Avoiding academic and decorative planning in GHG emissions abatement studies with MCDA:: The Peruvian case
Introduction
In 1992, the Rio summit produced the first international agreement on greenhouse gases (GHG) emissions, in the form of a Framework Convention on Climate Change (FCCC), which established the obligation for partner countries to present inventories of greenhouse gas emissions and removals (United Nations, 1992). The goals and principles of the FCCC were further strengthened under the Kyoto Protocol (United Nations, 1997), which specifies targets for GHG reductions of 5.2% between 2008 and 2012 below the base year 1990 by industrialised countries. It also created additional flexibility mechanisms with the goals of: (i) reaching the GHG reduction targets at the lowest possible cost for those countries committed to reductions; and (ii) voluntary participation of developing countries in climate change mitigation efforts. One such mechanism is the Clean Development Mechanism (CDM), which was designed for promoting the cooperation between developing and developed countries by allowing the latter to invest in GHG emissions abatement projects in the former.
The cost of GHG abatement is thus a central concept and is defined as the long-term cost to society of implementing a GHG abatement (abatement scenario) compared with a reference scenario (baseline) where no abatement is undertaken. Note that the existence of an abatement effort (cost) may not be enough to achieve a decrease in emissions (Fig. 1).1
Numerous national abatement costing studies were carried out, frequently supported by external assistance. While all these studies reflect genuine analysis efforts and the desire to influence GHG abatement strategies, traces of academic or decorative planning are sometimes apparent. For the sake of illustration, we consider that decorative planning occurs when an official produces a document on mitigation strategies based on general policy information only, without regard for technical constraints or implications. The document serves no purpose in practice, other than being acknowledged as existent. In the other extreme, academic planning occurs when a technical team is assigned the task of conducting a mitigation study, and the abatement options included in such study reflect neither the priorities of its government nor the real implementation difficulties. Decision makers see the study as an academic exercise and do not share its assumptions. The planning process must combine the stakeholders’ views and motivations with the essential rigour in technical evaluation of constraints, costs and impacts.
Although this paper often mentions so-called “developing countries”, the discussion does not apply exclusively to these countries (nor does it apply equally to all of them). Section 2 presents special circumstances that affect the planning activities in developing countries. Section 3 revisits an established analysis framework for estimating the cost of GHG abatement and leads to the suggestion (in Section 4) on how to achieve a structured, participative process, within the established analysis framework. Section 5 reports on a national study in Peru, where such a process was used, and whose results were incorporated into the Peruvian national communication to the FCCC.
Section snippets
Abatement studies in developing countries
There is no doubt that economic efficiency (cost per unit of GHG reduction) is not the sole criterion to determine public policy. Several attempts have been made to incorporate qualitative criteria in the selection and ranking of GHG abatement options. The suggested decision analysis models tend, however, to be applicable only under a restrictive set of assumptions (IPCC, 1996):
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there is a single decision maker,
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decision alternatives are limited,
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valuation of alternatives is consistent,
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choices are
An established analysis framework
This section briefly introduces UNEP’s analysis framework for emissions abatement costing analysis. It is intended to provide minimal background to those readers who are not familiar with the subject.
Early studies that tried to estimate the economic implications of abatement measures showed a surprisingly wide range of estimates. This was partially explained by the differences in aggregation philosophy. Top-down approaches use macroeconomic models to assess the economic impact of GHG reduction
Is there a role for multiple criteria decision aid?
In order to devise ways to mitigate the weaknesses identified in Section 2, one needs to realize that the complexity of mitigation studies derives from two different aspects. One is the intricacy of the social, economic and technological systems, with their interactions and uncertainties, which is mostly dealt with within the different models and scenario techniques. The other arises from the decision making and implementation framework, and the difficulties in apprehending the problems. The
The Peruvian study
In 1996 a group of countries initiated abatement costing studies under UNEP’s studies programme. Some other countries also launched similar studies with technical assistance from UNEP, that at the time was interested in investigating regional aggregates of individual national studies. One such study was the GHG abatement costing study of Peru.
Conclusions and a look ahead
UNEP’s analysis framework tries to address the need for comparability among national costing studies, in accordance with the principles of the FCCC. It recognises the relevance of multiple criteria assessment but does not operationalise the concept. This paper suggests a way to use multicriteria analysis, as a complement to the usual CBA. The goal is not the evaluation of non-monetary variables but the improvement of the coherence, transparency, and relevance of the studies. Since the scenario
Acknowledgments
The authors are thankful to Prof. R.V.V. Vidal (IMM, Tech. Univ. of Denmark), Dr. John Christensen (UNEP Center, Risø, Denmark), and Dr. Jaime Galvez and Rosa Morales (on behalf of CONAM, Peru), for their role, contribution, and insights in the process reported herein.
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