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This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment.

The focus of the present paper is the development of a resilience framework suitable to be applied in assessing the safety of ship LNG (Liquefied Natural Gas) bunkering process. Ship propulsion considering LNG as a possible fuel (with dual fuel marine engines installed on board) has favored important discussions about the LNG supply chain and delivery on board to the ship power plant. Within this context, a resilience methodological approach is outlined, including a case study application, to demonstrate its actual effectiveness. With specific reference to the operative steps for LNG bunkering operations in the maritime field, a dynamic model based on Bayesian inference and MCMC simulations can be built, involving the probability of operational perturbations, together with their updates based on the hard (failures) and soft (process variables deviations) evidence emerging during LNG bunkering operations. The approach developed in this work, based on advanced Markov Models and variational fitting algorithms, has proven to be a useful and flexible tool to study, analyze and verify how much the perturbations of systems and subsystems can be absorbed without leading to failure.

This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while command-and-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.

An original methodology for the Water Footprint Assessment (WFA) of a Product for the wine-making industry sector is presented, with a particular focus on the evaluation procedure of the grey water. Results obtained with the proposed methodology are also presented for an Italian case study. The product was analyzed using a life-cycle approach, with the aim of studying the water volumes of each phase according to the newly-released ISO 14046 international standard. The functional unit chosen in this study is the common 0.75 liter wine bottle. An in-house software (V.I.V.A.) was implemented with the goal of accounting for all the contributions in a cradle-to-grave approach. At this stage, however, minor water volumes associated with some foreground and background processes are not assessed. The evaluation procedure was applied to a case study and green, blue, and grey water volumes were computed. Primary data were collected for a red wine produced by an Umbrian wine-making company. Results are in accordance with global average water footprint values from literature, showing a total WF of 632.2 L/bottle, with the major contribution (98.3%) given by green water, and minor contributions (1.2% and 0.5%) given by grey and blue water, respectively. A particular effort was dedicated to the definition of an improved methodology for the assessment of the virtual water volume required to dilute the load of pollutants on the environment below some reference level (Grey WF). The improved methodology was elaborated to assure the completeness of the water footprint assessment and to overcome some limitations of the reference approach. As a result, the overall WF can increase up to 3% in the most conservative hypotheses.

Current industrial production is driven by increasing globalization, which has led to a steady increase in production volumes and complexity of products aimed at the pursuit of meeting the needs of customers. In this context, one of the main tools in the management of customer value is Lean Manufacturing or Production, though it is considered primarily as a set of tools to reduce the total cost of the resources needed to achieve such needs. This philosophy has recently been enriched in the literature with case studies that link Lean Management (LM) with the improvement of environmental sustainability. The consequence is an expansion of the Computer Integrated Manufacturing (CIM); indeed, CIM, currently, combining and integrating the key business functions (e.g., business, engineering, manufacturing, and information management) with a view of the life cycle, does not highlight the strategic role of the environmental aspects. In order to deal with the increasingly rapid environmental degradation that is reflected in society, in terms of both economy and quality of life, Industrial Ecology (IE) introduced a new paradigm of principles and instruments of analysis and decision support (e.g., Life Cycle Assessment—LCA, Social Life Cycle Assessment -SLCA, Material Flow Account—MFA, etc.) that can be considered as the main basis for integrating the environmental aspects in each strategy, design, production, final product, and end of life management, through the re-engineering of processes and activities towards the development of an eco-industrial system. This paper presents the preliminary observations based on a analysis of both theories (LM-IE) and provides a possible assessment of the key factors relevant to their integration in a “lean environmental management”, highlighting both positives (lights) and possible barriers (shadows).

The lithium-ion battery (LIB) represents a useful lever for reducing material handling equipment’s (MHE) environmental impact. The exploitation of opportunity charging might improve LIB adoption, which is still prevented by the high investment cost. Since opportunity charging is affected by the system organization, the relationship between LIB and organizational variables is a meaningful work direction to reduce warehouses’ environmental impact, which is underrepresented by the current literature. The present paper aims at filling this gap by investigating the implications of organisational variables on LIB adoption in warehouses where handling activities are performed with forklift trucks. Based on an in-depth review of the literature and semi-structured interviews, the research presents an input-process-output model linking organisational variables and LIB forklift related costs with an application to a real case. This paper is original as it extends findings from the research fields of production and mobility to the warehouse arena, and it opens room for further research on warehouse sustainability. The paper also offers insights to warehouse managers making decisions about LIB adoption for their electric forklift fleets. This is particularly meaningful to reduce warehouse environmental impact, since MHE power source significantly contributes to greenhouse gases emissions.

The productive efficiency of a firm can be decomposed into two parts, one persistent and one transient. This distinction seems to be appealing for regulators. During the last decades, public utilities such as water and electricity have witnessed a wave of regulatory reforms aimed at improving efficiency through incentive regulation. Most of these regulation schemes use benchmarking, namely measuring companies' efficiency and rewarding them accordingly. Focusing on electricity distribution, we sketch a theoretical model to show that an imperfectly informed regulator may not disentangle the two parts of the cost efficiency. Therefore, the regulator may fail to set optimal efficiency targets, which also undermines quality. We then provide evidence on the presence of persistent and transient efficiency using data on 28 New Zealand electricity distribution companies between 2000 and 2011. First, we estimate a total cost function by means of traditional stochastic frontier models for panel data. These come up with an estimation of the persistent part or the transient part of the cost efficiency. Finally, we use the more recent generalized true random effects model that allows for the simultaneous estimation of both transient and persistent efficiency. We also find some evidence that persistent efficiency is associated to higher quality, and wrong efficiency targets are associated to lower quality compliance.