THE SHARE OF AGRICULTURE IN GREENHOUSE GAS EMISSIONS IN EUROPEAN UNION COUNTRIES – VALUATION

Abstract

Reducing greenhouse gases emissions is one of the major environmental challenges of the modern world. The European Union (EU) has set itself ambitious reduction targets. Proper monitoring of emissions and its valuation is necessary to achieve this goal. In addition, valuation (in monetary terms) will help to raise awareness of the climate change costs among society.
The aim of this article is to present international comparisons within the EU covering the monitoring and valuation of aggregate emissions of selected greenhouse gases in general and in agriculture. The study uses Eurostat data for the years 2007-2015. The evaluation was based on the average annual price of carbon dioxide allowances under the European Union Emissions Trading System. Leipzig stock market data were used to determine the price.
The study compares the total greenhouse gas emissions and its value in different EU countries. These results show that the largest emitters in the EU are Germany, United Kingdom, France. A comparison of per capita and per GDP emissions results in an almost reversal of this order. The share of agriculture in greenhouse gas emissions was 11% in 2015 and ranged between countries from 3% (Malta) do 32% (Ireland). The results show also that the decline in value is greater than the decrease in emissions. This is due to the dramatic change in the price of allowances. The decrease in quantity of agricultural emission was 0,5%, whilst the decrease in value was 55,5% between years 2008 and 2015.

Keywords: agriculture, country comparison, European Union, externalities, greenhouse gases emission valuation

Article DOI: http://doi.org/10.15544/RD.2017.255