Estimation of Environmental Damage Costs from CO₂e Emissions in Libya and the Revenue from Carbon Tax Implementation

Abstract

This paper addresses the GHG emissions from oil and gas extraction, production and combustion and other emissions sources in Libya. In general, this research deals with the primary energy tracing from well to wheel leading to inventor of pollutants emitted through this path. This study presents the first work conducted in the estimation of costs of the environmental damages caused by GHG emissions from Libyans activities, we involved not only the energy or industrial facilities but also the waste and livestock in this process. For Libyan market, we adopted a cost of CO 2 e is 44 LD/ton CO 2 e (which equivalents to 32 US$ or 29 €), the present study reveals that the prices of all fusel fuel must be increased by 79%, 138%, 19% and 80% for Gasoline, Diesel, Air-jet fuel and LPG respectively, and by 8%, 143%, 6%, 3% and 14% for air trav e ling tickets, MWh of electricity, ton of steel, ton of cement, kg of red meat and ton of garbage, respectively. The total revenue as a result of the implementation of carbon tax is 4.4 billion LD which equivalent to 10% of the Libyan GDP in 2015. The followed procedure enables to investigate the effect of each type of energy, production or service on the environment individually. This research paved the road for more intensive researches to account all pollutants in the social-economical-environmental system.