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Oil and gas are important natural resources and have propelled economic growth and increased the global competitiveness between producing nations in global trade and resulted in the associated advantages to domestic economies. This chapter examines the future of the oil and gas industry in emerging and developing countries. It discusses the exploration of oil and gas and how the environment is being impacted by the activities. The chapter looks at the role of market players along the value chain of the oil and gas sector. It then examines how the world is being transitioned to renewable energy use through an analysis of demand trends and challenges confronting the oil and gas industry. It makes the case that despite the immeasurable contributions of the oil and gas sector to the development of the global economy, there have been systemic shifts in their demand in recent times. High cost of capital requirements in oil and gas production, climate change effects and global warming, deprivations and community conflicts, and technological advancements account for these shifts in the demand trends of oil and gas.

The world, since the industrial revolution, has relied significantly on oil and gas (O&G) resources to fuel, especially for its industrial and transportation activities. The major consuming block for oil before 2012 was always the Organization for Economic Cooperation and Development (OECD) countries, which are more industrialised relative to countries in the non-OECD block. In most emerging and developing countries (EDCs), when O&G resources are discovered, they are often quick to extract these resources with the aim of rapidly growing the economy, reducing poverty, and gaining some political capital without a careful management plan. Despite the transition to low carbon economy being underway along with the associated increased interest in renewable energy sources globally, especially among policymakers and investors in developed countries, demand for O&G resources will continue to surge due to growing demand from EDCs such as China, India, South Africa, and Brazil.

The oil and gas industry is a complex sector with significant reach in terms of providing the energy needs of the global economy and the security, environmental and development consequences thereof. In particular, the sector is extremely important for the economic growth of emerging markets and developing countries. Furthermore, the life span of oil and gas resources is finite, with high health and safety risks and substantial environmental costs that require careful management and sustainability practices to ensure optimal extraction and utilisation of these resources. This book examines the challenges and opportunities in the oil and gas industry, in the context of emerging markets and developing economies. It provides comprehensive coverage of the management and sustainability practices of the sector, the environmental impact and sustainability of resources as well as the businesses that operate in the sector across the entire value chain. It addresses the current discourse on topics such as the Sustainable Development Goals, the Green Economy, the Paris Agreement and Glasgow Climate Pact and concludes with a chapter on the future of the oil and gas industry. The discussions around energy and energy transitions in particular continue to gain momentum and the book provides a wide-reaching and up-to-date overview of the industry. The book introduces readers to the concepts and formal models of analysis in the oil and gas sector and will serve as a useful resource for students, scholars and researchers in operations, marketing, procurement and supply chain management, project management, health and safety management, environmental economics, natural resource economics, development finance, and development studies. Researchers and practitioners working in these areas will also find the book a useful reference material.

This study uses reconstructions of historical Environmental Protection Expenditure Accounts (EPEA) in Sweden from 1970–2020 to present a time series approach that analyses the demand for environmental services. The paper’s aim is to analyse environmental adaptation as a historical, economic and environmental process and to explore structural shifts suggestive of an overall periodisation of environmental demand. The article contributes to a deeper understanding of demand-side factors in environmental adaptation as part of contemporary economic history. The investigation also provides evidence that the income elasticity of environmental demand was slightly higher than 1.0 and largely stable over time, and even though we were able to detect trend breaks, there is insufficient evidence for major structural breaks suggesting sharp shifts in societal environmental preferences. Policies requiring sharply rising environmental expenditures should consider this level of historical stability.

There is a rich empirical literature testing whether per capita carbon dioxide emissions tend to converge over time and across countries. This article provides a meta-analysis of the results from this research, and discusses how carbon emissions convergence may be understood in, for instance, the presence of international knowledge spillovers and policy convergence. The results display evidence of either divergence or persistent gaps at the global level, but convergence of per capita carbon dioxide emissions between richer industrialized countries. However, the results appear sensitive to the choice of data sample and choice of convergence concept, e.g. stochastic convergence versus β-convergence. Moreover, peer-reviewed studies have a higher likelihood of reporting convergence in carbon dioxide emissions compared to non-refereed work.

Population growth, quest for value addition via industrialisation, and increasing demand for personal vehicles in emerging and developing regions such as Africa are leading to growth in demand for refined oil products and creating revenue generation potentials for the refining industry, despite the increasing environmental concerns. This chapter discusses key factors that determine the siting of a refinery, the input-output of a refinery, the refining margins, health and safety issues of the industry, and the trends in the refining business. It thus highlights the constraints and opportunities in Africa’s oil refining industry.

I use a two-state (energy efficient/inefficient) Markov-switching dynamic model to study energy efficiency in Cameroon in a novel manner, employing yearly data covering 1971 to 2012. I find that the duration of an energy inefficient state is about twice as long as an energy efficient state, mainly due to fuel subsidies, low income, high corruption, regulatory inefficiencies, poorly developed infrastructure and undeveloped markets. To escape from an energy inefficient state a broad policy overhaul is needed. Trade liberalization and related growth policies together with the removal of fuel subsidies are useful, but insufficient policy measures; the results suggest that they should be combined with structural policies, aiming at institutional structure and investment in infrastructure. (C) 2015 Elsevier B.V. All rights reserved.

Sustainability management in the oil and gas industry in emerging and developing countries has become essential to the sustainable development discourse because of the growing interest regarding the compatibility of the industry to a sustainable future. This chapter examines the management of environmental and sustainability issues in oil and gas industry in developing countries. The chapter comprises five sections. The first section presents the introduction and overview of the oil and gas industry in Africa. The second section presents sustainability challenges of the industry. The third section discusses environmental governance, ethics, and management of environmental impacts. The fourth section discusses how environmental impacts of the oil and gas industry are being managed and the regulatory framework for pollution prevention. The fifth section highlights corporate environmentalism in industry, the efforts to reduce pollution, and the greening of the sector. The chapter reveals that although the oil and gas sector has improved the economies of most developing countries over the years, the oil and gas sector activities have had significant environmental impacts. The chapter notes that several pressures from regulators and individuals force firms to behave ethically. What has helped mitigate the effect of the activities of the industry is the sense of duty towards the environment.

The aim of this paper was to investigate whether the environment and employment compete with each other in Swedish manufacturing industry. The effect of a marginal increase in environmental expenditure and environmental investment costs on sector-level demand for labor (employment) was studied using a detailed firm-level panel dataset for the period 2001–2008. The results showed that the sign and magnitude of the net employment effects ultimately depend on the aggregate sector-level output demand elasticity. If the output demand is inelastic, these costs induce small net improvements in employment, while a more elastic output demand suggests negative, but in most sectors relatively small, net effects on demand for labor. Hence, the results did not generally indicate a substantial trade-off between jobs and the environment. The general policy recommendation that can be drawn from this study is that, in the absence of empirically estimated output demand elasticities, a careful attitude regarding national environmental initiatives for sectors exposed to world market competition should be adopted.

Energy inefficiency in production implies that the same level of goods and services could be produced using less energy. The potential energy inefficiency of a firm may be linked to long-term structural rigidities in the production process and/or systematic shortcomings in management (persistent inefficiency), or associated with temporary issues like misallocation of resources (transient inefficiency). Eliminating or mitigating different inefficiencies may require different policy measures. Studies measuring industrial energy inefficiency have mostly focused on overall inefficiencies and have paid little attention to distinctions between the types. The aim of this study was to assess whether energy inefficiency is transient and/or persistent in the Swedish manufacturing industry. I used a firm-level panel dataset covering fourteen industrial sectors from 1997 to 2008 and estimated a stochastic energy demand frontier model. The model included a four-component error term separating persistent and transient inefficiency from unobserved heterogeneity and random noise. I found that both transient and persistent energy inefficiencies exist in most sectors of the Swedish manufacturing industry. Overall, persistent energy inefficiency was larger than transient, but varied considerably in different manufacturing sectors. The results suggest that, generally, energy inefficiencies in the Swedish manufacturing industry were related to structural rigidities connected to technology and/or management practices.

Energy efficiency improvement (EEI) benefits the climate and matters for energy security. The potential emission and energy savings due to EEI may however not fully materialize due to the rebound effect. In this study, we measure the size of the rebound effect for fuel and electricity within the four most energy intensive sectors in Sweden: pulp and paper, basic iron and steel, chemical, and mining. We use a detailed firm-level panel data set for 2000–2008 and apply Stochastic Frontier Analysis (SFA) for measuring the rebound effect. We find that neither fuel nor electricity rebound effects fully offset the potential energy and emission savings. Among the determinants, we find CO2 intensity and fuel/electricity share to be useful indicators for identifying firms with higher or lower rebound effect within each sector.

Energy efficiency improvement (EEI) benefits the climate and matters for energy security. The potential emission and energy savings due to EEI may however not fully materialize due to the rebound effect. In this study, we measure the size of rebound effect for the two energy types fuel and electricity within the four most energy intensive sectors in Sweden – pulp and paper, basic iron and steel, chemical, and mining. We use a detailed firm-level panel data set for the period 2000-2008 and apply Stochastic Frontier Analysis (SFA) for measuring the rebound effect. We find that both fuel and electricity rebound effects do not fully offset the potential for energy and emission savings. Furthermore, we find CO2 intensity and fuel and electricity share as the two main determinants of rebound effect in Swedish heavy industry. Our results seems to imply that it matters both to what extent and where to promote EEI, as the rebound effect varies between sectors as well as between firms within sectors. 

Energy efficiency improvement (EEI) is generally known to be a cost-effective measure for meeting energy, climate, and sustainable growth targets. Unfortunately, behavioral responses to such improvements (called energy rebound effects) may reduce the expected savings in energy and emissions from EEI. Hence, the size of this effect should be considered to help design efficient energy and climate targets. Currently, there are significant differences in approaches for measuring the rebound effect. Here, we used a two-step procedure to measure both short- and long-term energy rebound effects in the Swedish manufacturing industry. In the first step, we used data envelopment analysis (DEA) to measure energy efficiency. In the second step, we use the efficiency scores and estimated a derived energy demand equation including rebound effects using a dynamic panel regression model. This approach was applied to a firm-level panel dataset covering 14 sectors in Swedish manufacturing over the period 1997–2008. We showed that, in the short run, partial and statistically significant rebound effects exist within all manufacturing sectors, meaning that the rebound effect decreased the energy and emission savings expected from EEI. The long-term rebound effect was in general smaller than the short-term effect, implying that within each sector, energy and emission savings due to EEI are larger in the long run compared to the short run. Using our estimates of energy efficiency and rebound effect, we further performed a post-estimation analysis to provide a guide to policy makers by identifying sectors where EEI have the most potential to promote sustainable economic growth with the lowest environmental impact.

Energy inefficiency in production implies that the same level of goods and services could be produced using less energy. The potential energy inefficiency of a firm may be linked to long-term structural rigidities in the production process and/or systematic shortcomings in management (persistent inefficiency), or associated with temporary issues like misallocation of resources (transient inefficiency). Eliminating or mitigating different inefficiencies may require different policy measures. Studies measuring industrial energy inefficiency have mostly focused on overall inefficiencies and have paid little attention to distinctions between the types. The aim of this study was to assess whether energy inefficiency is transient and/or persistent in the Swedish manufacturing industry. I used a firm-level panel dataset covering fourteen industrial sectors from 1997–2008 and estimated a stochastic energy demand frontier model. The model included a four-component error term separating persistent and transient inefficiency from unobserved heterogeneity and random noise. I found that both transient and persistent energy inefficiencies exist in most sectors of the Swedish manufacturing industry. Overall, persistent energy inefficiency was larger than transient, but varied considerably in different manufacturing sectors. The results suggest that, generally, energy inefficiencies in the Swedish manufacturing industry were related to structural rigidities connected to technology and/or management practices.

Energy efficiency improvement (EEI) is generally known to be a cost-effective measure for meeting energy, climate and sustainable growth targets. Unfortunately, behavioral responses to such improvements (called energy rebound effects) may reduce the expected savings in energy and emissions from EEI. Hence, the size of this effect should be considered to help set realistic energy and climate targets. Currently there are significant differences in approaches for measuring rebound effect. Here, we used a two-step procedure to measure both short- and long-term energy rebound effects in the Swedish manufacturing industry. In the first step, we used data envelopment analysis (DEA) to obtain energy efficiency scores. In the second step, we estimated energy rebound effects using a dynamic panel regression model. This approach was applied to a firmlevel panel dataset covering all 14 sectors in the Swedish manufacturing industry over the period 1997–2008. We showed that, in the short run, partial rebound effects exist within most of manufacturing sectors, meaning that the rebound effect decreased, but did not totally offset, the energy and emission savings expected from EEI. The long-term rebound effect was smaller than the shortterm effect, implying that within each sector, energy and emission savings due to EEI are larger in the long run compared to the short run.

Nitrogen use efficiency (NUE) is often used to evaluate an agricultural system's relative ability to process nitrogen (N) inputs. However, no universal indicator has simultaneously considered both economic and environmental objectives. We develop Luenberger indicators of NUE that incorporate both economic and environmental objectives to examine spatio-temporal changes in NUE, which we apply to the Upper Mississippi River Basin (UMRB) for the period 2002-2012. We find considerable spatial-temporal variation in NUE, which could be used to inform future agri-environmental policy and conservation targeting decisions in the UMRB. Using this approach could lead to more cost-effective targeting of areas for N reduction in the UMRB.

We investigate the extraction plan of present-biased decision makers managing a renew-able resource stock whose growth is uncertain and which could undergo a rapid and sig-nificant change when stock falls below a threshold. We show that the Markov-Nash equi-librium extraction policy is unique, time consistent, and increasing in resource stock. An increase in the threshold leads to increased resource extraction, rather than the precau-tionary reduction in extraction often observed with exponential discounting. An increase in the degree of present bias also leads to an increase in resource extraction. Our analy-sis suggests that accounting for and appropriately dealing with resource managers' present bias may be important to understand resource use sustainability.

Discrete-time stochastic models of management of groundwater resources have been extensively used for understanding a number of issues in groundwater management. Most models used suffer from two drawbacks: relatively simplistic treatment of the cost of water extraction, and a lack of important structural results (such as monotonicity of extraction in stock and concavity of the value function), even in simple models. Lack of structural properties impede both practical policy simulation and clarity of understanding of the resulting models and the underlying economics. This paper provides a unifying framework for these models in two directions; first, the usual cost function is extended to encompass cases where marginal cost of pumping depends on the stock and second, the analysis dispenses with assumptions of concavity of the objective function and compactness of the state space, using instead lattice-theoretic methods. With these modifications, a comprehensive investigation of which structural properties can be proved in each of the resulting cases is carried out. It is shown that for some of the richer models more structural properties may be proved than for the simpler model used in the literature. This paper also introduces to the resource economics literature an important method of proving convergence to a stationary distribution which does not require monotonicity in stock of resource. This method is of interest in a variety of renewable resource model settings.

We provide consistent, cross-country estimates of price and income elasticity for households in 11 OECD countries. Using survey data from 2011 on annual consumption of electricity and sample-derived average electricity price, we provide country-specific price elasticity estimates and average income elasticity estimates. For most countries in our sample, we find strong price responsiveness, with elasticities varying (in absolute value) between 0.27 for South Korea and 1.4 for Australia, and higher than 0.5 for most countries. Exploiting the presence of many attitudinal indicators in the dataset, we provide evidence that non-price related factors to affect energy demand; in particular, households' self-reported energy savings behaviour reduces demand between 2 and 4%. In contrast, we find very weak income responsiveness, with income elasticities varying from 0.07 to 0.16 and no evidence for heterogeneity across the countries in our sample. Our results regarding price elasticity are in contrast with those of many existing studies which find low-to-moderate price responsiveness, and adds to a few recent studies indicating more policy space for demand reduction than previously thought.

Using data from a survey of households in 11 OECD countries, this paper investigates the determinants of preferences for a completely green residential electricity system. Three important questions are addressed: (i) how much are households willing to pay to use only renewable energy? (ii) does willingness-to-pay (WTP) vary significantly across household groups and countries? and (iii) what drives the decision to enter the (hypothetical) market for green energy and, given entry, what drives the level of WTP? The analysis here differs from previous studies on green energy in two ways: first, data and analyses are comparable across countries and second, a comprehensive attempt is made to understand 0 WTP, and to accommodate-using a censored quantile regression (CQR) framework-unobserved heterogeneity. The survey data indicate a low WTP, at 11-12 % of current electric bill. This study also addresses a key question: how important is income for understanding WTP, relative to more "attitudinal" determinants? The effect of income overall appears ambiguous, with Tobit-like models indicating that income is not significant while the CQR indicates that income exerts a significant effect near the center of the distribution of WTP. Across all frameworks used, a key determinant of WTP appears to be environmental attitudes, particularly membership in an environmental organization.

California and Sweden are both leaders in green regulations and actions. In both there is a substantial political base for environmental regulation, yet the path to regulation in these two political entities is quite different. California emphasizes command and control regulations while Sweden makes heavy use of taxes. We show that both underlying economic factors and the constraints of the larger systems in which these economies are embedded contribute to their choice of control methods.

This chapter represents a comparative study of the emergence of environmental policies in the Chilean and Swedish copper industry. The chapter identifies a number of key factors which helps to explain dissimilar characteristics of actions to protect the environment in both countries as well as the timing for these actions. One key difference identified—besides obvious factors such as income levels, political systems and dependency of foreign direct investments—concerns the very drivers behind the greening of the industry. While governmental regulation developing from the 1960s represented the primary driver behind the green transformation of Swedish copper industry, it took until the 1990s before the Chilean copper companies started to adopt their first environmental policies ahead of regulation, and called for the Chilean government to act. We suggest that this happened as globalisation took hold from the early 1990s, and foreign companies operating in Chile demanded environmental standards that harmonised with those in the Western world, at the same time as the Chilean industry needed to enhance an environmental reputation in the global market. Thus, while the Swedish industry was much driven by national regulation to invest in cleaner technologies, it was the pressure from globalisation that drove the Chilean industry to clean up their acts.

Fisk är en gemensam resurs som bidrar med värden till samhället både genom sin roll i ekosystemen och i form av livsmedel och rekreationsmöjligheter via yrkes- och fritidsfisket. Utan kontroll och regleringar finns risk att nyttjandet inte blir hållbart från ett samhälleligt och ekologiskt perspektiv. Inom fiskförvaltningen, och då yrkes- och fritidsfisket konkurrerar om samma resurs, krävs ofta att myndigheter gör avväganden vad gäller hur fiskresursen ska fördelas. Olika typer av samhällsekonomiska analyser och indikatorer kan spela en viktig roll som besluts- och faktaunderlag i sådana överväganden.

Samtidigt är yrkes- och fritidsfiske till sina naturer olika verksamheter; yrkesfiske är en bransch som är tydligt definierad i den ekonomiska statistiken, medan fritidsfiske är en aktivitet som människor utövar på sin fritid. Denna skillnad i hur de olika fiskena ser ut och utövas gör att ekonomiska jämförelser blir komplicerade, och när olika samhällsekonomiska indikatorer används i jämförelser mellan fiskena är det nödvändigt att säkerställa att dessa indikatorer faktiskt är jämförbara.

I denna rapport diskuteras några av de viktigaste indikatorerna som används i jämförelser mellan olika fisken. Dessa indikatorer låter sig sorteras i två olika grupper, dels indikatorer som syftar till att mäta olika aspekter av ekonomisk aktivitet och dels indikatorer som syftar till att mäta olika aspekter av samhällsekonomiska värden. Aktivitetsindikatorerna bygger på nationalräkenskapssystemet och hit hör indikatorer som förädlingsvärde, sysselsättning, vinst, omsättning och multiplikatoreffekter. Värdeindikatorerna bygger på nationalekonomisk välfärdsteori och hit hör indikatorer som samhällsekonomiskt nettobidrag, producentöverskott och konsumentöverskott. I rapporten diskuteras dels vilka av dessa indikatorer som alls är meningsfulla att jämföra med motsvarande indikatorer i andra fisken, dels vad som krävs för att åstadkomma jämförbara indikatorer för olika fisken. Det finns en rad aktivitetsbaserade indikatorer som kan vara av intresse, beroende på vilket eller vilka mål som fiskepolitiken har på en viss plats, medan det däremot egentligen bara finns en värdeindikator, nämligen det samhällsekonomiska nettobidraget, som är intressant på egen hand.

En viktig slutsats i rapporten är att det bör utvecklas satelliträkenskaper för fritidsfiske som är konsistenta med dagens satelliträkenskaper för turism mer allmänt, och att fritidsfiskebaserat företagande bör definieras och mätas på samma sätt som turismbaserat företagande mäts i satelliträkenskaper för turism och inkludera all försäljning av varor och tjänster som används för fritidsfiske. Detta skulle innebära en bredare definition av fritidsfiskebaserat företagande än dagens, som fokuserar på företag som huvudsakligen säljer till just fritidsfiske, men skulle säkerställa att aktivitetsbaserade indikatorer – både för yrkesfiske och för fritidsfiske – skulle mätas på jämförbara sätt och i enlighet med internationella nationalräkenskapsstandarder.

En annan viktig slutsats i rapporten är att när indikatorer för olika fisken används i jämförelser mellan dessa är det angeläget att indikatorerna mäts på samma geografiska skala. De flesta aktivitetsbaserade indikatorer blir mycket olika beroende på vilken skala de mäts på, och att exempelvis jämföra en indikator som mätts på kommunal nivå för ett fiske med en i övrigt likvärdig indikator som mätts på nationell nivå för ett annat fiske kommer att leda tanken fel.

I många situationer där det är önskvärt att jämföra olika fisken kommer det att behövas mer detaljerad datainsamling eller mer detaljerad analys än vad som idag görs systematiskt. I rapporten diskuteras några utvecklingsmöjligheter för framtida datainsamling och framtida analysarbete inom fiskeområdet.

Slutligen är det viktigt att betona att även om det går att peka ut några indikatorer som mer informativa än andra, går det inte att entydigt peka ut en enda indikator som alltid är att föredra. Vilka indikatorer som beslutsfattare fokuserar på när fisken på en viss plats och av en viss art ska jämföras måste knytas till vilka fördelnings- och regionalpolitiska mål som ses som angelägna på den platsen. Samhällsekonomiska indikatorer bör ses som beslutsunderlag i dessa överväganden och om de är korrekt utformade och mätta kan de vara mycket användbara beslutsunderlag, men vilka fördelnings- och regionalpolitiska mål som är angelägna att nå för ett visst fiske måste beslutas utifrån andra kriterier.

This paper is based on two national contingent valuation studies dealing with the extent and economic values of hunting in Sweden. The first valuation study was conducted in 1987 and the second in 2006. Both the game resource and the hunter community have undergone changes in the two decades covered by the surveys. An important purpose of the latter survey was to repeat relevant parts of the former one, which created a rare opportunity to compare valuations covering a very long time span. Moose hunting value and its determinants were compared between the two studies, showing that significant changes have taken place. Our analysis suggests caution in using results from old contingent valuation studies for e.g. benefits transfer exercises.

Temporary no-take zones (NTZs) are increasingly introduced in Sweden as a fisheries management tool to restore populations of specific target species. This paper presents a cost-benefit analysis of two real case temporary NTZs closed during a 5–6 year period in the coastal zone of the Baltic Sea, using scenario analysis to account for uncertainty in both the biological and economic effects. A sensitivity analysis was added for certain key parameters. The results of the cost-benefit analyses for the two NTZs are positive in all scenarios relating to the most realistic case of no opportunity costs, i.e., assuming that all fishing activity could be relocated to adjacent areas without cost during the closed period. As an extreme case comparison, full opportunity costs were included, assuming that no fishing activity could be relocated to other areas during the closed period. One of the NTZs then exhibited a negative net result for most scenarios. For the other area the net result was positive even when the maximum opportunity costs of temporary lost fishing opportunities were included, largely depending on the strong positive change in the value of commercial fishing. By demonstrating potential costs and benefits of using temporary no-take zones in fisheries management this study may contribute to policy making, as well as to creating acceptance from stakeholder groups that incur short-term costs from closing areas to fishing.