sectoral economic costs and benefits of ghg mitigation - IPCC

Terry Barker, Lenny Bernstein, Ken Gregory, Steve Lennon and Julio Torres Martinez
• While the direct costs associated with fuel switching will also include technology and
training, there may also be a substantial cost incurred to establish appropriate infrastructure.
The direct benefits associated with fuel switching depend on the relative price and quality of
the new type of energy input. With a change in energy markets (as demand for less carbon
intensive fuels increases) it is possible that the price of alternative fuels will increase.
• Less developed countries tend to have a small industrial base which is specific to the
resource base and which generally uses a dedicated source of energy. A threat to the energy
source could be a threat to the industry itself. More developed countries tend to have a larger
industrial base which utilises a greater diversity of resources and may have access to more
diverse energy sources as well.
6 Households and Services (including financial services): What are the ancillary
impacts of mitigation measures on households, the tertiary and informal sectors,
and on the service industries?
This session was chaired by Ken Gregory, which included overview presentations. After one
discussant presented his comments on the related issues at the meeting, there was extensive
discussion on this relative unknown area.
Overview presentation: Ancillary Costs and Benefits of Mitigation on Households and Other
Tertiary and Informal Sectors
The first presentation was made by Gina Roos, Technical Co-ordinator, Mitigation Component
of the South African Country Study, South Africa. Roos' paper focused on the mitigation of
GHG emissions related to the energy consumption in households, different services and other
activities in tertiary and informal sectors. In particular she referred to the economic and financial
costs associated with making electricity accessible to homes and people in various income levels,
as well as several possibilities of doing that with minimum impact to the environment, etc.
Discussion on Tourism in Small Island Countries and Other Related Issues
Oliver Headley of University of West Indies, Barbados in his capacity as discussant did not
directly address the points made in Roos' paper. His presentation made the following points:
• small island states could be seriously damaged by climate change because of hurricanes
intensification and/or sea level rise, and
• governments of the Caribbean small island states are taking steps to demonstrate that the
adoption of clean technologies at reasonable prices could avoid or diminish the bad effects
of those adverse circumstances.
He spoke as well about the benefits for activities such as tourism, one of the main economic
incomes in those Islands, which benefits when electricity is produced by clean technologies at
lower costs than those incurred with fossil fuel technologies.
Overview presentation: Insurance Industry and Greenhouse-Gas Mitigation
The second overview paper was presented by Oliver Zwirner, Rheinland Versicherungs AG,
Germany. Zwirner's presentation addressed three main aspects:
• Administration: CO 2 Emissions from Banks and Insurance Companies
Data from German and Swiss companies indicate that 75% of CO 2 emissions are from office
building operations, 25% from business travel. Emissions per employee range from about 1.5
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