Browsing by master's degree program "Magisterprogrammet i lantbruks -, miljö- och naturresursekonomi"
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(2023)Vuoden 1945 maanhankintalailla perustettiin Suomeen noin 90 000 uutta tilaa tai tonttia, asuttamiseen käytettiin noin 2,5 miljoonaa hehtaaria maata. Sen tarkoituksena oli saada työtä ja asuntoja siirtoväelle sekä rintamamiehille. Maanhankintalain nojalla maatalous pientilavaltaistui ja sitä siirtyi heikkotuottoisimmille alueille, kuten Pohjois- ja Itä-Suomeen. Siirtoväestä valtaosa asutettiin Etelä-Suomeen, koska se vastasi siirtoväen entisen kotiseudun olosuhteita. Tutkielmassa verrataan Hämeen läänin maatalouden tunnusluvuissa vuosina 1945–1950 tapahtuneita muutoksia Uudenmaan, Vaasan, Mikkelin sekä Turun ja Porin lääneihin. Maisterintutkielman tavoitteena oli selvittää vuoden 1945 maanhankintalain vaikutuksia tuon ajan Hämeen läänin maatalouteen ja alueen maanluovuttajiin, näiden viljelyn jatkuvuuteen ja tilojen tuottavuuteen. Tutkielmassa tarkastellaan kirjallisuuden ja asiantuntijan haastattelun tuella Hämeen läänissä vuosien 1941 ja 1950 välillä maatalouden tunnusluvuissa tapahtuneita muutoksia, kuten teknologian määrää, tuotannon ja tilojen rakennetta. Tutkielmassa on tarkastelussa maanluovuttajia silloisen Hämeen läänin alueelta. Henkilökohtaisten haastattelujen ja arkistopohjaisen tiedon perusteella on pyritty selvittämään, miten maanluovutukset vaikuttivat viljelmien toimintaan ja tulevaisuuteen. Verrokkilääneistä viljelmien keskikoko laski eniten Hämeen läänissä maanhankintalain vaikutuksesta. Verrokkilääneistä Hämeen lääniin perustettiin eniten maanhankintalain mukaisia tiloja, josta on seurannut tilojen keskikoon huomattava lasku. Teknologinen kehitys on seurannut paljolti läänin viljelmien keskikokoa. Lypsykoneita on ollut sitä enemmän yhtä lehmää kohden, mitä korkeampi on läänin tilojen keskikoko. Vuoden 1941 perusteella traktoreidenkin yleisyys on perustunut läänin viljelmien keskikokoon. Sato- ja tuotostasot ovat nousseet tilakoon noustessa. Suuremmat tilat ovat pystyneet hyödyntämään paremmin tuotantopanoksia. Hämeessä myös navetoiden yksikkökoot laskivat ja maidontuotantoa siirtyi asutustiloille. Maanhankintalailla sovellettu ”kielipykälä” johti osittain siihen, että Hämeeseen muodostui asutustoimintaa enemmän kuin esimerkiksi Uudenmaan sekä Turun ja Porin lääniin. Kielipykälä rajoitti suomenkielisen väestön asuttamista ruotsinkielisille alueille. Maanhankintalain toimeenpanoon lunastettiin yksityisomisteista maata progressiivisen asteikon mukaan. Mitä suurempi tila oli, sitä enemmän sen piti asutuskäyttöön maata luovuttaa. Hämeen läänin maanluovuttajat joutuivat eriarvoiseen asemaan kielipykälän vuoksi. Monilla ruotsinkielisillä alueilla suuret tilat jäivät luovutusten ulkopuolelle, mutta Hämeen läänissä ei ruotsinkielisiä alueita ollut. Maanluovutuksista seurasi usein suoraan taloudellisia menetyksiä, kuten tuotannon ja tuottavuuden alentumista. Joissain tapauksissa tuotannon loppumista. Lisäksi osalle maanluovuttajista lunastetut alueet korvattiin valtion velkasitoumuksilla, joiden arvon inflaatio söi 10-vuodessa vain murto-osaan niiden todellisesta arvosta. Tämä oli lisäämään keskustelua valtion ”agraariryöstöstä”. Velkasitoumuksien arvon alenemisen riskit ovat maanhankintalakia valmistellessa tiedetty, koska aihe on ollut tuolloin poliittisessa keskustelussa. Suurempien maanluovuttajien kohdalla vaikutukset voivat olla edelleen nähtävissä, jos peltoala ei ole tänäkään päivänä noussut maanhankintalakia edeltävälle tasolle. Tällaisten tilojen kohdalla maanluovutukset johtivat elämäntavan muutokseen ja suuriin taloudellisiin menetyksiin. Valtaosa yksityisistä luovuttajista kuului 25–50 peltohehtaarin kokoluokkaan. Maanluovutusten aiheuttamat rakenteelliset vaikutukset ovat nähtävillä tämän kokoluokan tilojen kautta, vaikka yksittäisiä tapauksia tarkastellessa ovat vaikutukset olleet suurimmat yli 50 peltohehtaarin viljelmillä. Maanhankintalaki on vaikuttanut toimeenpanevasti moneen muutokseen, kuten 1950-luvulla ilmenneeseen maataloustuotteiden ylituotantoon, joka johti tuotannon tarkempaan sääntelyyn. Lain toimeenpanon myötä myös maataloutta siirtyi aiempaa enemmän Pohjois- ja Itä-Suomeen. Tilojen keskikoko laski ja maataloudesta tuli osa aluepolitiikkaa. Rakenteellisesti vaikutukset ovat edelleen nähtävillä, mutta yksittäisten tilojen kohdalla on tunnistettavuus usein hautautunut lukuisten maanhankintalain jälkeen tulleiden lakien, kiintiöiden, mietintöjen ja sopimusten taakse.
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(2024)Suuri osa maidon hiilijalanjäljestä syntyy alkutuotannossa märehtijöiden ruuansulatuksessa syntyvästä metaanista. Suomessa metaani muodostaa noin puolet maidontuotannon hiilijalanjäljestä. Alkutuotannon metaanipäästöjä voidaan vähentää tilatasolla muun muassa ruokinnallisin ja eläinten jalostukseen liittyvin keinoin. Jalostuksen kautta voidaan saavuttaa päästövähennyksiä, mutta jalostustyö on suhteellisen hidasta. Nopeampia päästövähennyskeinoja on etsitty lypsylehmien ruokinnan kautta, erityisesti rehun lisäaineista, kuten 3-nitroksipropanolista eli 3-NOPista. Tutkielman tavoitteena on tuottaa tietoa, millaisia taloudellisia vaikutuksia 3-NOP-lisäaineen käyttöönotosta seuraa maitotilalla, ja arvioida, mikä on saavutettavien päästövähennysten suhde kustannuksiin. Lisäksi pohditaan lisäaineen käytön soveltuvuutta erilaisia ruokintajärjestelmiä käyttäville tiloille. Tutkielmassa määritetään 3-NOPin käytöllä saavutettavien metaanipäästövähennysten taloudellinen arvo päästökaupan hintojen perusteella ja 3-NOPia sisältävän dieetin vaikutus tilan kokonaishiilijalanjälkeen, ja pohditaan eri tekijöitä, jotka vaikuttavat yrittäjien haluun sitoutua aineen käyttöön. Tehdyissä tutkimuksissa 3-NOPin metaaninvähennyspotentiaalin on todettu olevan suurempi seosrehuruokinnassa kuin erillisruokinnassa. Kun saavutettu päästövähennys arvotetaan ETS:n päästökaupan hintojen perusteella, lisäaineen käytön kustannuksen kattava päästövähennys on huomattavasti helpompi saavuttaa seosruokinnassa kuin erillisruokinnassa. Mikäli päästökaupan hiilidioksidin hinta nousee ennusteiden mukaan, seosrehuruokinnassa saavutetuilla päästövähennyksillä on suhteellisen helppoa päästä tilanteeseen, jossa vähennyksen arvo kattaa lisäaineen käytöstä syntyneet kustannukset. Erillisruokinnan tapauksessa vaaditaan kuitenkin Bovaerin markkinahinnan huomattava lasku, jotta päästään vastaavaan tilanteeseen. Nykytilanteessa Bovaerin, tai sitä vastaavan rehun lisäaineen, käytön yleistyminen kaikille maitotiloille voi olla haasteellista. Niille tiloille, joilla lisäaineen käyttöönotto kuitenkaan ei vaadi muutoksia käytössä oleviin tuotantojärjestelmiin, 3-NOPia sisältävä lisäaine soveltuu nyt jo yhdeksi päästövähennyskeinoksi, jolla maitotilan kokonaispäästöjä voidaan pienentää merkittävästi. Suurimman haasteen 3-NOP-lisäaineen ja muiden päästövähennyskeinojen käytölle luo niiden aiheuttamat kustannukset, jotka täytyy saada korvattua maatilayrityksille jonkin ansaintalogiikan tai kannustinjärjestelmän kautta.
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(2023)Following the Fukushima Daiichi nuclear accident in 2011, Germany swiftly decommissioned eight of its seventeen nuclear reactors, ultimately committing to a complete nuclear phase-out. Consequently, a substantial portion of nuclear power production was replaced by fossil fuels. Given the established link between fossil fuel use in electricity generation and localized air pollution, this transition likely adversely affected local air quality and associated respiratory health effects. This thesis examines the unintended health consequences of Germany's nuclear phase-out, focusing on premature mortality from non-communicable respiratory diseases, quantified through Potential Years of Life Lost. This thesis uses the synthetic control method to investigate the health outcomes of nuclear phase-outs, adding to the limited existing literature in this domain. Employing synthetic control techniques and utilizing mortality data from the World Health Organization, I am able to construct a counterfactual scenario representing a Germany that did not phase out nuclear energy. This allows me to assess the trajectories of potential years of life lost due to non-communicable respiratory diseases following the nuclear plant closures. I find an annual increase of 14 potential years of life lost per 100,000 residents after these closures, predominantly affecting individuals aged 50 to 64. The resulting economic costs due to this increased mortality range between five billion to 19 billion euros, depending on the chosen value of life year. Considering the exceedingly low probability of Fukushima scale nuclear accident, these figures surpass the expected damages of a such accident. In sum, this thesis underscores the importance of considering potential unintended consequences of policy changes. The German nuclear phase-out led to amplified mortality and economic expenditures. Despite its substantial local impact, local air pollution remains less recognized than greenhouse gas emissions. Policymakers should extend their considerations in the energy sector to encompass local air pollution alongside greenhouse gas emissions.
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(2024)Air pollution has many negative effects, for example on human health. It is important to reduce these effects with different policy measures. However, reduction measures can affect which groups of people suffer from pollution. Market-based methods, such as emission trading, are often cost-effective but raise concerns about environmental justice. When air pollutants are reduced from the cheapest places, there is a risk that pollutants will be unevenly distributed among socioeconomic groups. It is important to study whether such environmental injustice exists in Finland. Finland is an interesting research subject because it differs from other countries where similar studies have been conducted, for example, due to population density and relatively small income differences. In this thesis, it is analysed how air pollutants are distributed in Finland based on socioeconomic factors and whether the levels of air pollutants have developed evenly among different income groups during the 2010s. The air pollutants that are in the scope of this thesis are carbon monoxide, sulfur dioxide, and nitrogen dioxide. The air pollution data is produced by NASA and is mainly collected by satellites. The socioeconomic factors that are used in the study include household income, low-income households, households with children, one-parent households with children, and highly educated individuals. Socioeconomic data is obtained from Statistics Finland's Paavo database. To analyse the data, bivariate and multivariate ordinary least squares regressions are done for the variables. The main finding of this thesis is that air quality is somewhat unevenly distributed among different income groups in Finland. High-income households are more exposed to pollution than low-income households. High-income households are more exposed to pollution because there are higher pollution levels in urban areas where households have higher incomes. Additionally, highly educated individuals and one-parent households are exposed to more pollution than others. Air quality has developed differently for different pollutants during the 2010s. Not all air pollution concentrations have decreased in the 2010s. Air quality has improved, especially for carbon monoxide among low-income households, and for sulfur dioxide and nitrogen dioxide among high-income and highly educated individuals. This study contributes to the research on the distribution of air pollutants and can help the development of more effective air pollution policies.
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(2023)Policy makers must make decisions regarding budget allocation between policies and research. Only actions improve the state of the system, but knowledge increases the probability of effective action. The outcome of environmental policies is usually uncertain, and the question remains: should we invest more in research or use resources for additional policies? Under uncertain decision making, it is clear, that doing and knowing go hand in hand. Still, there is a lack of scientific analyses about the relationship between these features. This paper analyses how uncertainty in policy implementation outcome (i.e., Value- of- control, VoC) effects the need for additional knowledge, which is measured using value- of- information (VoI) analysis. Additionally, the paper analyses how the obtained results can help in the allocation of resources between policy and research. To answer these questions, I use a published Bayesian decision model by Helle et al. (2015) as a source for further analysis. It is an influence diagram model, consisting of two decision variables, 40 random variables and 13 utility variables which are described in euros, allowing the monetary summarisation of utility. I introduce levels of implementation uncertainty to the other decision by placing an additional random variable to influence the successor variables of the decision. I define the levels of uncertainty using two co-variation methods, first one being the proportional co-variation method, and the second one the order- preserving uniform method. By this way, I analyse and compare the effect of distinct levels of decreased controllability (VoC) to VoI analysis results. These two methods describe two alternative ways of modelling the uncertainty in implementation, which is always uncertain when we consider future actions that have yet to been implemented. I conduct the analysis separately for both co-variation approaches, and 10 alternative levels of implementation uncertainty, to enable systematic comparability between the chosen methods, and to learn alternative ways to consider the relationship of controllability and knowledge. First, I preform the VoI analysis only for the policy that is subjected to implementation uncertainty. Secondly, the analysis is done for both decision variables and the Single Policy Updating (SPU) algorithm of Hugin software is used for detecting optimal policies for different implementation uncertainty levels. In other words, I show how the various levels of controllability of the system impact the needs to carry out research. I argue, that this is a fundamental question for many environmental policy questions, such as climate change, eutrophication, loss of biodiversity and in my example, risks of oil spills. The results show a consistent, but interesting effect of decreased controllability to the VoI analysis results. Increase in implementation uncertainty raises the overall VoI and increases the number of variables presented with VoI, i.e., once the estimated uncertainty of controllability increases, the chance to achieve desired results increases only by knowing more. When only one decision variable is included, VoI increases to the point of no control, indicating that VoI is zero when controllability of the system is zero, indicating that there is no point of carrying out research, if the knowledge cannot be used to improve the effects of actions. When both decision variables are included in this case, VoI increases to a certain point and decreases after that. This study highlights the need for such analyses in decision problems, where uncertainty in policy implementation is often overlooked. This is the case with most deterministic, point estimate models. I argue, that this type of analysis would lead to more effective solving of environmental problems.
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(2024)The LULUCF (land use, land use change, and forestry) sector has been a net emission source for the past few years, which underscores the pressing need for effective measures to mitigate emissions and combat deforestation. Among these measures, the introduction of a land use change fee stands out as a promising policy instrument. The land use change fee, by the polluter pays principle, would impose a cost on deforestation activities, thereby internalising the negative externalities associated with land use changes. The prior studies of the land use change fee have focused on the climate effects, acceptability and legal feasibility of the fee and concentrated more on deforestation due to agriculture. Furthermore, prior studies consistently highlight significant uncertainty surrounding the implications and estimates of the land use change fee. Consequently, there exists a significant gap in the literature regarding the assessment of deforestation arising from construction activities. Thus, this thesis aims to address this gap by conducting an empirical market analysis of the unbuilt and built single-family lot transactions in the presence of a land use change fee. Additionally, the thesis compares two options for designing the land use change fee: hectare-based and emission-based fees. Different levels of these fees are analysed to understand their effects on deforestation, emissions reduction, and economic consequences. The thesis relies on three primary datasets for its data analyses: CORINE land cover change 2006-2012 and 2012-2018, Forest use declarations (FUDs) 2004-2018, and the Purchase Price Registry 2000-2020. Initially, the Corine land cover change and Forest use declarations were integrated using QGIS to determine the land use changes from forestland to other land use categories across Finland, incorporated with the analysis of local detailed plan areas. Subsequently, the market analysis was conducted by integrating the Purchase Price Registry, with a specific focus on transactions intersecting with both FUDs and the combined FUD+Corine dataset. The combined data from the Purchase Price Registry were utilised for conducting the market-level analysis, differences-in-differences analysis, and lastly, an analysis on the land use change fees, all performed using Stata. The results imply that the implementation of a land use change fee demonstrates a notable decrease in deforestation, and a proportional relationship is observed wherein a larger fee level corresponds to a higher reduction in deforestation. Moreover, emissions exhibit a corresponding decline with the introduction of the land use change fee as deforestation decreases. To effectively address the negative climate impact of deforestation, it is recommended that the fee level align with the climate harm. A uniform fee across Finland may lead to regional disparities in construction, as the fee would incentivise abandoning construction in areas where land prices are low. The emission-based fee system would effectively guide reductions in emissions where it is most cost-effective, but administrative costs may become prohibitively high. The proposed land use change fee of 5,000 euros per hectare results in an 8.5 % decrease in deforestation, as indicated by the market analysis, considering all zoning areas and lot sizes. This reduction is significantly lower than the estimate provided by the Ministry of Agriculture and Forestry, which projected a 20 % decrease, excluding local detailed plan areas and areas smaller than 0.5 hectares. Furthermore, the exclusion of local detailed plan areas and areas smaller than 0.5 hectares from the scope of the fee is discouraged based on the results, as this omission would negatively impact urban forests and biodiversity, as it would encourage deforestation activities in these areas. Further research could for instance focus on considering soil emissions and future carbon sequestration, focus on the construction of renewable energy sites and study the deforestation due to construction and agriculture simultaneously.
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(2024)Luonnonmukaisen maatalouden merkitys on kasvanut viimeisimmällä Euroopan unionin maatalouspolitiikan ohjelmakaudella. Luonnonmukaisen maatalouden on tarkoitus vastata myös Suomen pellolta pöytään -strategian vihreän kehityksen tavoitteisiin, joihin sisältyy muun muassa kemiallisten torjunta-aineiden käytön sekä ravinnehävikin merkittävä vähentäminen tuotannosta sekä biodiversiteetin ylläpito ja rikastaminen. Suomen kansalliseen Luomu 2.0 -ohjelmaan on kuluvalle ohjelmakaudelle kirjattu useita luomuketjua kehittäviä tavoitteita, joilla pyritään vahvistamaan luonnonmukaisen maatalouden jalansijaa, niin tuotantomuotona kuin markkinoiden toimijana. Tässä tutkimuksessa tarkastellaan Suomen kansallisen maatalouspolitiikan tavoitetta luonnonmukaisesti viljellyn peltopinta-alan kasvamisesta 25 %:in vuoteen 2030 mennessä. Tutkimuksessa kartoitetaan viime vuosien tilastoihin sekä asiantuntijahaastatteluihin perustuen, onko Suomen mahdollista saavuttaa tavoite sekä mitkä ovat suurimmat esteet tavoitteen saavuttamisen tiellä. Kasvaneen peltopinta-alan myötä luonnonmukainen maatalous pystyy jossain määrin vastaamaan sille asetettuihin ympäristö- sekä biodiversiteettitavoitteisiin, mutta viime vuosien luomusta poistuneiden tilojen määrän kasvu ja peltopinta-alan viestii lasku viestivät tarpeesta selvittää mistä muutos johtuu. Tutkimus toteutettiin laadullisena tutkimuksena asiantuntijahaastatteluin sekä tutkimuksessa hyödynnettiin kuluneen 10 vuoden ajalta tilastoja tilamäärien sekä peltopinta-alan kehityksestä Suomessa. Teoreettisessa viitekehyksessä tarkastelemme maatalouspolitiikan taustoja sekä luonnonmukaisen maatalouden osaa siinä, sekä pyrimme selvittämään miksi luonnonmukainen maatalous on merkityksellisessä osassa uusinta ohjelmakautta. Analysoinnissa hyödynnettiin niin sisällönanalyysiä kuin backcasting-menetelmää, jotta pystymme saamaan kokonaisvaltaisen kuvan siitä, millainen tilanne on nyt ja minkälaisia tekijöitä vaikuttaa tavoitteen saavuttamiseen nyt ja tulevaisuudessa, sekä ymmärtämään vaikuttavia tekijöitä. Tutkimustulokset osoittivat 25 % peltopinta-alan tavoitteen saavuttamisen tiellä olevan useita esteitä. Luonnonmukainen maatalous on viljelijöille kiinnostava ja ajankohtainen tuotantotapa, mutta maatalouspolitiikan kuluvan ohjelmakauden muuttuneet tukiehdot sekä tarkastusmaksut vaikuttivat tilojen halukkuuteen jatkaa luonnonmukaisessa tuotannossa. Myös markkinoiden kasvun hidastuminen sekä viennin pieni volyymi olivat asiantuntijoiden mukaan suuria tekijöitä alan kehittymisen hidasteena. Luomuketjun toimijoiden välinen yhteistyö vaatisivat kehittämistä. Asiantuntijoiden mielestä viljelijät ovat joustavia kokeilemaan uusia mahdollisuuksia, mutta markkina sekä kuluttajien valinnat ohjaavat päätöksentekoa ja suuria linjoja tilatasolla
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(2024)Maataloussektori on aikaisemmin ollut ainoastaan energian kuluttaja, mutta nykyään se on myös energian tuottaja. Viljelijät ovat viime aikoina investoineet energian tuotantoon ja energiatehokkuuden parantamiseen. Auringon tuottamaa energiaa olisi mahdollista hyödyntää Suomessa lämmön ja sähkön tuotannossa paljon nykyistä enemmän ja sillä voitaisiin täydentää monia energiatarpeita koko maatalous- ja elintarvikeketjussa. Vuoden 2021 jälkeen sähkön kokonaishinnan vaihtelu on ollut suurta, joten investointi aurinkopaneeleihin voi olla kiinnostava vaihtoehto uusiutuvana energian lähteenä maatiloilla. Tämän tutkielman tavoitteena oli arvioida tapaustutkimuksena aurinkopaneeli-investoinnin kannattavuutta eteläpohjalaisella kalkkunatilalla. Kannattavuuden arviointiin käytettiin nykyaikaisia investointimenetelmiä, minkä lisäksi kartoitettiin kannattavuuteen vaikuttavia tekijöitä herkkyysanalyysin avulla. Erityisesti tutkielmassa pyrittiin selvittämään, onko investointi kannattava, mitkä ovat investoinnin kannattavuuteen vaikuttavat tekijät, sekä miten investointituen määrä vaikuttaa investoinnin kannattavuuteen. Tutkielman tuloksissa investoinnin nettonykyarvoksi muodostui 12 240 €, sisäiseksi korkokannaksi 18,96 %, pääoman tuottoasteeksi 18,98 % ja takaisinmaksuajaksi 5,27 vuotta. Investointilaskelmien tuloksiin vaikutti positiivisesti investoinnin arvioitu pitkä käyttöikä. Aurinkopaneelijärjestelmällä pystyttäisiin tuottamaan osa tilan käyttösähköstä itse ja tuotettua sähköenergiaa päätyisi myös myyntiin ajoittain, kun sähkön tuotanto tilalla on suurempaa kuin tilan kulutus. Investoinnin kannattavuuteen vaikuttaviksi tekijöiksi tutkielmassa muodostuivat investointituen määrä, ostosähkön hinta ja aurinkopaneelijärjestelmän energiantuottomäärä. Investointituen määrällä oli tutkielmassa suuri vaikutus investoinnin kannattavuuteen. Investointituki kasvatti investoinnin nettonykyarvoa, sisäistä korkokantaa sekä pääomantuottoastetta ja lyhensi investoinnin takaisinmaksuaikaa merkittävästi. Tutkielman investointilaskelmien sekä herkkyysanalyysien mukaan investointia aurinkopaneelijärjestelmään voidaan pitää tilalle kannattavana. Investointi mahdollistaa energiaomavaraisuuden lisäämisen ja sähkön käytöstä aiheutuvien kustannuksien alenemisen.
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(2024)Lake ice is vital for functioning of the lake ecosystems and provides multiple key ecosystem services to the Arctic societies. Climate change changes lake ice conditions which affects these ecosystems and ecosystem services provided by the lake ice. To assess changes of the lake ice in the Northern hemisphere, a climate service providing information on the lake ice extent (LIE) has been set up. The LIE service generates also other types of benefits to for example sector of hydroelectricity and recreation. Potential of climate services has not been fully realised by stakeholders and decision-makers. Economic evaluation may support communicating their value especially in times when objectives of public economy are preferred. Moreover, impacts of small climate services can be difficult to perceive, and certain types of benefits can be challenging to observe. These benefits include avoided costs using climate services. In this thesis avoided costs of the LIE service are estimated both quantitatively and qualitatively using avoided-cost assessment. Used data includes interview results, statistical data, and previous literature. Avoided costs the service generates comprise mainly of avoided in-situ lake ice monitoring trips and travel expenses, avoided flood and infrastructure damages, and potentially avoided injuries and mortality through improved safety. Although quantitatively assessed avoided costs are quite low, level of avoided costs using the LIE service are considerable when quantitatively and qualitatively assessed avoided costs are combined. Moreover, the benefit-cost ratio (BCR) of the avoided costs is reasonable. Findings underline the importance of understanding benefits of climate services that are difficult to quantify. Understanding these benefits also supports justifying financing of climate services. Nonetheless, results are highly uncertain and prospective assessments are required.
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(2021)This thesis studies the economic benefits that the installation of nature-based solutions can have as a flood risk management tool. The effects of a changing climate often accumulate in urbanised areas and can translate into an increased likelihood and heightened damage potential of precipitation-induced flood events. One way to reduce the devastating flood impact is the use of nature-based solutions, which are management tools relying on natural processes and ecosystem services (EC, 2018). Green roofs are one example of nature-based solutions. To date, little research is available in the academic literature on the economic profitability and cost-efficiency of such alternative approaches (Palmer et al., 2015). The thesis aims to contribute to the scare literature on the topic by conducting a flood damage assessment for a case study site. It is devel-oped from a research contribution to the EU OPERANDUM project, which evaluates nature-based solutions as tool to alleviate hydro-meteorological risks as well as their cost-efficiency on a broader scale (OPERANDUM Project, 2018). The thesis conducts a flood dam-age assessment for green roofs hypothetically installed in Dublin, Ireland. It estimates the expected damage costs from flood scenarios with a recurrence period of 10, 100 and 1000 years. To this end it relies methodologically on a flood damage assessment, specifically the Joint Research Centre model developed by Huizinga, de Moel & Szewczyk (2017), as well as on value transfer. The assessment is re-stricted to the calculation of direct, tangible flood damages. To provide more robust results, the assessment also draws on the analytical insights from the cost-benefit analysis literature and incorporates aspects such as discounting and a partial sensitivity analysis. In terms of software, the majority of the research is carried out in QGIS and Excel. Comparing the flood impacts with and without the installation of nature-based solutions, it assesses the size of the avoided damage costs and finds a noticeable positive impact of green roofs. The green roofs cannot only reduce the size of the flooded areas by up to 19% as well as decrease the water depth in the still inundated parts, but also noteworthily curtails the height of the direct, tangible flood damage costs. The thesis cannot extract definite conclusions on the profitability of green roofs in the sense of providing a net present value, because it does not study costs nor other benefits of green roofs for reasons of scope. It does, however, show that the installation of green roofs can lower the flood damage costs in Dublin by up to 36%. As additional conclusion, this thesis calls for research into more nuanced flood damage assessment methods, since the selected model excluded many factors. A methodological refining could increase the precision of monetary damage estimates. Altogether, the thesis observes that green roofs can be a useful tool to reduce the devastating impact of urban floods. However, green roofs should be combined with other flood management tools, since they can be insufficient if applied on their own.
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(2024)The depletion of natural resources, and the continuous increase in waste volumes, and consumption have increased environmental concerns strongly in recent years. To solve these environmental challenges, the interest in circular economy and resource efficiency in companies' business operations has increased, and the EU has also set targets to accelerate the circular economy. One of the first steps in promoting a circular economy is to understand the drivers and barriers associated with circular economy business models. This thesis aims to investigate the barriers and drivers of implementing five key circular economy business models. The business models studied are 1) resource recovery, 2) sharing platforms, 3) product as a service, 4) product life extension, and 5) Circular supply, which refers to circulating raw materials and resources. The thesis was carried out by interviewing five different Finnish companies from different industries whose business operations corresponded to the studied business models. The case companies have already implemented circular economy business models and can be assumed to have a good understanding of the drivers and barriers. With the help of case studies, the study aims to identify the key barriers and drivers that touch each business model and to identify differences between business models in terms of barriers and drivers. The study provides up-to-date perspectives on circular economy business, business models, and impacts on the development of sustainable business. Based on the results, circular economy related barriers that affect almost every business model can be seen as regulatory uncertainty, high investment costs, and product development more specifically, the development of new materials and products. Drivers shared by business models were related to increasing market demand for sustainability, regulation, innovation, stakeholder pressure, and organizational culture towards sustainability. The identified barriers and drivers also varied depending on whether the company was either manufacturer-oriented or technology-driven. Manufacture-oriented companies faced barriers related to market competition, material development, and the supply chain, while technology driven companies faced barriers related to user acquisition and financing. The drivers, on the other hand, were related to low carbon footprint in manufacturing-oriented companies and technological development in technology-driven companies. The results show that regulation will play a key role in the future tackling the current circular economy related barriers in business models. The regulation must be as predictable as possible, securing long-term investments and product development. It's highly important that legislation encourages sustainable practices by offering financial incentives to companies and promoting cooperation and innovation.
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(2023)Among financial institutions, there is a growing concern about risks in their portfolios related to biodiversity, and its closely related affiliate, climate change. Investors are demanding greater transparency and biodiversity management in order to make informed investment decisions in listed equity and to act as responsible shareholders. The aim of this thesis is to explore, from the Nordic pension investor point of view, how the risk related to biodiversity loss is assessed and managed in the financial markets. Following qualitative approach, primary data was collected with 14 semi-structured in-depth interviews of two target groups: pension investors in the Nordic countries and ESG specialists which refers to specialists in sustainable finance or biodiversity related sustainability fields. The results were analyzed using template analysis. The results show that taking biodiversity into consideration in investment processes is constantly evolving and Nordic pension investors are paying close attention to the topic. Among drivers to incorporate biodiversity into investment decision-making, risk management was the most important. ESG specialists' experience of institutional investors' means to influence biodiversity loss mitigation differed from pension investors' perspective. Nordic pension investors are not fully aware of the existing methods for analyzing the risks and impacts of biodiversity loss in their own investment portfolio. However, they are highly motivated to find reliable ways to manage portfolio risks. Integrating biodiversity risks and impacts into the investment process can be challenging due to a lack of investment tools and best practices. Investors are preparing for increasing statutory and voluntary regulation. Both ESG specialists and Nordic pension investors see that lack of comparable, transparent, reliable data is an essential barrier when it comes to listed-equity investments and biodiversity loss mitigation. The data available lacks financial materiality and the impacts of biodiversity loss on the real-world return expectations, and return-risk-profiles are unknown. To solve problems regarding the lack of data in general and especially transparent and comparable data, companies are expected to disclose material nature-related dependencies and impacts, and report associated metrics and targets.
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(2023)Biokaasu on uusiutuva energianlähde, jolla pystytään korvaamaan fossiilisten polttoaineiden käyttöä teollisuudessa sekä liikenteessä. Tämän vuoksi Euroopan unionin ja Suomen tavoitteena on lisätä biokaasun tuotannon määrää. Suomessa on muihin Euroopan maihin kuten Saksaan ja Tanskaan verrattuna vähän biokaasulaitoksia, mikä johtuu osittain heikosta kannattavuudesta. Tämä tutkielma on tapaustutkimus, jonka tavoitteena on selvittää neljän eri biokaasulaitosvaihtoehdon kannattavuus ja vaikutus tilan energiaomavaraisuuteen loimaalaisella sikatilalla. Tilalla on noin 200 emakkopaikan yhdistelmäsikala sekä noin 160 hehtaaria peltoa viljelyssään. Pienissä biokaasulaitosvaihtoehdoissa syötteinä käytetään 6000 tonnia lietettä, 1000 tonnia kuivalantaa sekä 50 tonnia nurmea. Suurissa laitosvaihtoehdoissa nurmen määrä nostetaan 500 tonniin. Tutkielman teoriaosuudessa käydään yleisesti läpi biokaasuntuotantoa, eli syötteitä, tuotteita ja biokaasuprosesseja sekä maatilakohtaisia biokaasulaitoksia koskevia lakisääteisiä vaatimuksia ja biokaasulaitosinvestoinnille haettavia tukia. Kannattavuuslaskelmat suoritetaan Luken biokaasulaskurilla, joka on suunniteltu alle 35 000 tonnia syötteitä käyttävien biokaasulaitosten kannattavuuksien arviointiin. Biokaasulaskurin lähtötiedot asetetaan sopiviksi tilalta saatujen tietojen mukaan. Tutkimuksen tuloksissa todettiin, että vain suuri biometaania tuottava biokaasulaitosvaihtoehto oli käytetyillä lähtöarvoilla kannattava. Herkkyysanalyyseissä todettiin, että kaikki laitosvaihtoehdot olivat kannattavia, jos käytettävien syötteiden laatu oli lähtöarvoja korkeampi. Lämmön ja sähkön yhteistuotanto (CHP) oli kannattavaa pienessä sekä suuressa laitoksessa, jos ostosähkön hinta nostettiin 12 senttiin kilowattitunnilta. Biometaanin tuotanto oli pienessä laitosvaihtoehdossa kannattavaa, jos myytävän biometaanin hinta oli 1,1 €/kg. Suuressa laitosvaihtoehdossa se oli kannattavaa, kun hinta oli 0,85 €/kg. Lämpöenergian suhteen tila ei päässyt energiaomavaraisuuteen millään laitosvaihtoehdolla. Sähkön osalta suuri CHP:tä tuottava laitos tuotti kaiken tilan kuluttaman sähkön ja pieni CHP:tä tuottava laitos tuotti noin kolme neljäsosaa tilan vuosittaisesta sähkönkulutuksesta.
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(2022)Since the term blue carbon was first coined in 2009, the interest in the carbon stocks and annual carbon sequestration of mangrove forests, salt marshes and seagrass meadows has increased noticeably. However, in the past couple of years, the carbon capabilities of kelp forests have also started to garner more attention, leading to multiple published studies arguing for their inclusion as a blue carbon ecosystem. However, so far, few studies have actually compared the amount of carbon stored and sequestered by kelp forests to the three traditional blue carbon ecosystems. Thus, the aim of this thesis was to estimate and compare the amount of carbon currently stored and annually sequestered by the different blue carbon ecosystems. Furthermore, the effects and costs of blue carbon ecosystem degradation were also estimated. Based on the results of a thorough literature review regarding the global distribution and degradation rates of the ecosystems as well as the amount of carbon sequestered and stored per unit area, the total amount of carbon stored in blue carbon ecosystems is estimated to be between 5 and 25 Pg, with mangrove forests storing roughly half of that. Yet, whilst kelp forests are estimated to have a far larger global distribution than all of the other blue carbon ecosystems combined, they only store around 0.1–1.4 Pg of carbon, since all of the carbon is stored in their biomass, unlike the other blue carbon ecosystems, in which the vast majority of carbon is located in the soils. However, the total amount of carbon sequestered annually by all blue carbon ecosystems is estimated to be between 40 and 331 Tg, out of which 8–231 Tg is sequestered by kelp forests. Yet, due to the degradation of the ecosystems during 2022, a combined 30–294 Tg of the previously stored carbon is estimated to be released into the atmosphere, whilst the amount sequestered during the year is reduced by roughly 0.4–6 Tg. Out of the carbon released, the majority is from the carbon stocks of seagrass meadows, whilst the carbon sequestration of kelp forests is reduced the most. The total combined cost of the degradation equals €9–174 billion, when the costs of the previously stored carbon released is combined with the NPV of the reduced carbon sequestration. Out of this, the total cost for kelp forests is estimated at €1–59 billion. However, whilst the number of studies published on blue carbon has increased, the data available regarding the ecosystems is still limited. As such, there are considerable uncertainties regarding the values presented and the results of the thesis should thus be considered rough estimates. That being said, the results still underline the importance of blue carbon ecosystems as carbon sinks as well as the considerable costs caused by environmental degradation. Furthermore, the thesis provides further support for the notion that kelp forests should indeed be considered a blue carbon ecosystem.
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Challenges in Implementing Climate Smart Agricultural practices in Zambia to enhance food security (2024)This thesis delves into the challenges impeding the implementation of climate smart agricultural practices in Zambia, with a specific focus on enhancing food security amidst the escalating impacts of climate change on agriculture. Employing qualitative research design methodology and utilizing SWOT Analysis as an analytical tool, the study investigates the current best practices within the sector and formulates a strategic approach for future endeavours. Interviews with key stakeholders in the agricultural sector explore their experiences and perspectives, centring on identifying obstacles to the adoption of climate smart agricultural practices among Zambian smallholder farmers. The findings underscore several challenges, including limited access to essential inputs, high initial costs, and socio-economic factors influencing farmers' decision-making processes. The research reveals the intricate relationship between climatic changes and shifts in agricultural practices, emphasizing the need for tailored strategies and policies. Implications extend to policy formulation and enhancement, with recommendations emphasizing technology integration, community engagement, and policy improvements to overcome identified challenges. Finally, this research provides valuable insights into the complexities of implementing climate smart agriculture in Zambia, contributing to the foundation for future studies and guiding practical interventions to enhance food security in the face of climate change. The identified challenges and recommended strategies offer a comprehensive perspective for policymakers, researchers, and practitioners seeking sustainable solutions for agricultural development in Zambia.
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(2023)Discussion around climate crisis and companies’ role in its mitigation has been accelerating especially in the past few years. Companies are in a crucial role if the targets set in the Paris Agreement are wished to be fulfilled. Companies have also noted the importance of the topic. Corporate environmental responsibility and sustainability themes have gotten a firm foothold in corporate world and companies can control them by utilizing different corporate governance mechanisms. This thesis aims to examine the importance of corporate governance and sustainability management in companies. Purpose is to study whether there is a link between the level of companies’ climate maturity and different corporate governance mechanisms that are used to manage companies’ sustainability. In addition, this thesis examines if there are differences in the results depending on size, industry, or country where companies are headquartered. Scope of this thesis is corporate environmental responsibility and climate sustainability in the context of greenhouse gas emissions. Companies are divided into two groups based on their climate maturity which is determined by whether they have set science-based emission reduction targets validated by the Science Based Targets initiative. Analysis is conducted with statistical analysis, logistic regression and is carried out with Stata. Data is originally from a corporate study and consists of 46 medium and large-sized Nordic companies from various industries. Sustainability criteria in management’s incentive plans and in companies’ investment decisions had a positive and significant link to companies’ climate maturity. Chief Sustainability Officer and board-level sustainability committee were insignificant in the model. Larger companies were more connected to climate maturity most likely because they have more resources to develop their sustainability and corporate environmental responsibility. In addition, larger companies are often obligated to disclose their sustainability performance and face pressure from the public to decrease their negative effects which can encourage them to set more advanced targets. It seems that the most effective measures are mechanisms with concrete criteria, compared to the more symbolic measures with no direct effect. Companies should focus on creating actions with impactful measures that create change in their organizations whereas policy makers should aim to create regulation directing companies towards these measures. Scientific research can help by providing knowledge of the most impactful corporate governance mechanisms. Sample size was relatively small, which prevents from making highly generalized conclusions. With a larger dataset, companies’ maturity could have been determined on a wider scale, different analysis methods could have been used and sustainability could have been considered in a more comprehensive perspective.
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(2024)The current clothing industry has a major impact on the environment and there is an urgent need to change the current production habits to be more sustainable. One solution is to introduce circular fashion products that are more durable, more easily repairable and recyclable. The current linear production model, resulting in clothing either being incinerated or sent to landfills, could be substituted with a more cyclical approach to material usage. The recent literature findings on barriers to engaging in the circular economy suggest that consumers have a significant role in changing the current production systems. By exploring consumer willingness to pay for hypothetical products that incorporate sustainable attributes, the current culture of resistance to incorporating innovative materials and designs may become more favourable if demand for circular products is closely examined. This study uses the contingent valuation method and consumer theory to quantify the price premiums for three hypothetical clothing products (T- shirt, trousers, and winter jacket) with third-party verified claims for environmentally friendly production (environmental impact is minimised) and circular design (longer lifetime and recyclability of materials). The latent factor design and statistical analysis techniques such as exploratory factor analysis and principal component method (PCA) are used to develop theoretical indexes to capture consumer attitudes. These indexes, along with background questions, are treated as independent variables in the willingness to pay modelling using regression analysis. The objective is to comprehend the behavioural factors that increase the price premium for pro-circular and pro-environmental attributes in clothing. The study collected data through an online survey involving 700 participants from universities in Finland. The population comprises young customers, specifically from the Z generation. The majority of participants were women (79%) and based in the Helsinki-Uusimaa region (47%). The findings indicate that consumer group that actively seeks out and compares clothing durability is willing to pay higher prices for long-lasting circular fashion items. Furthermore, consumers who prioritize environmentally friendly clothing exhibit a preference for durability in the case of inexpensive items such as T-shirts and trousers, while expecting environmentally friendly materials and ethical production practices in expensive items such as winter jackets. This research provides valuable insights into consumer behaviour and preferences, which can inform the development of sustainability plans within the clothing industry. By understanding the behavioral factors that drive consumer demand for circular and environmentally friendly products, companies can adopt more conscious production and design processes.
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(2024)The European Union aims to be climate-neutral by 2050, and Finland targets to be carbon-neutral by 2030. There is progress towards the goal, but the current measures are inadequate. Therefore, a new technology is the need of the hour. Biochar has been considered one of the most affordable negative emission technologies. Biochar has a considerable potential to mitigate climate change by adding carbon to the soil. Additionally, it is a beneficial soil amendment that improves soil properties and controls nutrient runoff from agricultural land. Therefore, biochar is a promising carbon farming tool for achieving climate goals. Although the climate benefits of biochar are pretty well known, economic studies on biochar amendments in agriculture are lacking. The thesis aims to investigate the economic profitability of investing in biochar for private farmers. Additionally, this study focuses on determining whether biochar benefits society. The objective is to provide farmers with a cost-effective solution to earn a private profit from biochar, which benefits society when net greenhouse gas emissions and nutrient runoff are accounted for. This thesis performs a cost-benefit analysis as a method. Analytical and numerical models are developed to calculate the net present values of farmers' private profit and social welfare. Mathematica is used for simulations. As a case study, the thesis focuses on Finnish boreal agricultural soil cultivated with barley, with a 5 t/ha biochar application rate. The thesis finds that the net present value of profit with biochar becomes positive in ten years but never exceeds that of without biochar. However, the net present value of social welfare with biochar becomes positive and surpasses that of without biochar within 4 to 6 years. As biochar application is beneficial for society but not profitable for farmers, two policy instruments are studied: a fertilizer tax to lower the privately optimal fertilization to the socially optimal level and an investment subsidy to make biochar use profitable. Simulation shows that with 100% investment subsidies, both policies make the investment in biochar profitable for the farmers within 0 to 1 year. A 90% investment subsidy makes biochar profitable within 3 to 6 years, whereas an 80% investment subsidy generates profit with biochar within 6 to 11 years. There is minimal economic research on biochar. As the European Council is giving importance to carbon farming, carbon storage and carbon addition, there is an immense opportunity in future to work on this topic.
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Cost-effective biofouling management strategies in the shipping sector : a Bayesian network approach (2023)The accumulation of biological material, i.e., biofouling, on ship`s hulls is a significant issue both for the shipping companies and the environment. Biofouling on a ship`s hull increases friction, leading to increased fuel consumption and hence, an increase in the fuel costs and emissions from shipping. Furthermore, the EU maritime traffic will be included in the EU Emissions Trading System in 2024, meaning that shipping companies must pay for their carbon dioxide emissions. This creates an additional economic incentive for the companies to prevent biofouling. The main methods for preventing biofouling on a ship`s hull are different coatings and possible in-water cleaning of the coated surfaces. The coating types include biocidal coatings, fouling release coatings, and hard coatings. Despite the notable problems from biofouling, there is currently no international regulation concerning biofouling management of shipping companies. A holistic understanding of this complex issue is needed to develop more sustainable shipping in the future. In this thesis, I analyze this topic by further developing an existing Bayesian network model, which is a decision tool for examining the outcomes from different biofouling management strategies. My focus on the topic is the costs of shipping companies from biofouling and its management. The existing model concerns the costs of coating, in-water cleaning, and fuel consumption. In this thesis, I add emission allowance costs and uncertainty to the fuel prices in the model to study whether these additions would change the profitability of different biofouling management strategies. My hypothesis is that to minimize the costs of biofouling and its management, shipping companies should increase the in-water cleaning times when the emission allowance costs are included in the model. The study revealed that the most cost-effective coating type, for a general cargo ship and a tanker, is a fouling release coating. For a passenger ship, the cost-effectiveness depends on the age of the coating, but a biocidal coating is the most cost-effective option when the age of the coatings is two years. My additions to the existing model did not change the result concerning the cost-effectiveness of the coating types. The results also revealed that the future inclusion of maritime transport to the EU Emissions Trading System will increase the costs of shipping companies from biofouling. Despite this, my hypothesis got rejected since the inclusion of the emission allowance costs did not lead to increased in-water cleaning times. My changes in the fuel prices led to a decrease in the in-water cleaning times, for some ship types, compared to the original model. This is not due to the uncertainty itself but because the fuel price distributions, which I used, led to lower expected fuel costs than in the original model. The study highlights that fuel costs might be one of the most important factors in determining whether enhanced biofouling management will be profitable for shipping companies in the future.
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(2023)Lack of finance is a major constraint for the smallholder soybean farmers in northern Ghana. The area is affected by soil degradation, poverty, and food insecurity, while a majority of the people in the area get their livelihood from agriculture. As a possible solution for the three problems, a natural biofertilizer and biocontrol agent, rhizobium bacteria, can be introduced to the rhizospheres of the soybean. This is usually done by applying rhizobium bacteria to the seeds of a legume prior to planting. This rhizobial inoculation technology improves plant growth, nutrient availability and uptake, as well as yields, thereby increasing the income and food security of the smallholder farmers. A credit to be invested in rhizobium inoculation technology would provide smallholder farmers with the opportunity to improve soil fertility and increase farm productivity, improving their food security and enabling them to earn additional income. The private market for rhizobial inoculants is nascent, but many of the farmers report financial constraints. To create a functioning market and to realise the social and environmental benefits of soybean cultivation and rhizobium inoculation technology, it is important to understand the causes of credit constraints of smallholder farmers and how to reduce them. In this thesis, I study the prevalence and the determinants of credit constraints among smallholder soybean farmers by applying a logistic regression model to a sample of 133 smallholder farmers in northern Ghana. I first define credit constrained status of the farmers and conclude that the prevalence of observable credit constraints in the sample is 57.1%. I conclude that there are two broad categories of variables affecting a farmer’s status as credit constrained. The first of these is the type of guarantees that a farmer can offer to the lender. Such guarantees are represented by membership in a farmers' association (and hence access to possible joint guarantees), existing assets such as ownership of cows, and a farmer's experience in soybean production (reflecting knowledge of good investment decisions in the sector). The second category relates to the supply of credit and the factors affecting it. The factors affecting credit supply identified in this study are regional disparities and loans targeted to a certain group, such as women. By influencing the supply and conditions of credit, the financial constraints of smallholder farmers can be alleviated. Such policy interventions, combined with other leverage points such as social learning and access to information, contribute to the adoption of desirable farming practices. Because of the many benefits of rhizobial inoculation in soybean production, its adoption could be promoted by offering credit directed particularly for the adoption of this technology. This would benefit not only the farmers but have broader benefits in the form of climate change adaptation and mitigation
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