Climate Change Economics

LOWERING CARBON INTENSITIES, NOT STANDARDS OF LIVING

 
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Climate Change Library

Limits of Markets and Competition

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A Taxonomy of Instruments to Reduce Greenhouse Gas Emissions and their Interactions

From the abstract: "This paper reviews alternative (national and international) climate change mitigation policy instruments and interactions across them. Carbon taxes, cap-and-trade schemes, standards and technology-support policies (R&D and clean technology deployment) in particular are assessed according to three broad cost-effectiveness criteri ...
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Romain Duval
Organisation for Economic Co-operation and Development Economics Department Working Paper No. 636, September 2008
Objectives: Theoretical Modeling,Policies & Legislation,Evaluating Programs
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For the Public

Carbon Trading How it works and Why It Fails

Carbon trading is a complex system with a simple goal:  to make it cheaper for companies and governments to meet emissions reduction targets – although, this trading is actually designed in such a way that the targets can generally be met without any real reductions taking place.  Carbon trading takes two main forms: ‘cap and trade’ and ‘off set ...
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Tamra Gilbertson and Oscar Reyes
The Dag Hammarskjöld Foundation, Upsalla, Sweden, 2009
Objectives: Forecasting Impacts,Policies & Legislation
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For Specialized Analysts

Certification Strategies, Industrial Development and a Global Market for Biofuels

With both the US and the EU in the process of designing policies that will meet the recently enacted standards for the sale of biofuels, policemakers must do their best to reach a balance between protecting the environment while encouraging economic growth.  This is particularly true for the world's poorest countries.  This paper provides such a ...
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Ricardo Hausmann and Rodrigo Wagner
Discussion Paper 2009-15, Belfer Center for Science and International Affairs, Cambridge, MA., October 2009.
Objectives: Forecasting Impacts,Policies & Legislation,Evaluating Programs
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For Specialized Analysts

Climate Capitalism

From the Cambridge University Press Website:  "Confronting climate change is now understood as a problem of ‘decarbonising' the global economy: ending our dependence on carbon-based fossil fuels. This book explores whether such a transformation is underway, how it might be accelerated, and the complex politics of this process. Given the domi ...
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Peter Newell and Matthew Paterson
Cambridge University Press, Cambridge, UK, May 2010
Objectives: Forecasting Impacts,Policies & Legislation,Evaluating Programs,Evaluating Proposals,Analyzing Opinions & Attitudes
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor Nations,Asia and Oceania,Africa,Latin AmericaFor Economists|For Specialized Analysts

Climate Economics in Four Easy Pieces

"As the climate science debate is reaching closure, the climate economics debate is heating up. The controversial issue now is the fear that overly ambitious climate initiatives could hurt the economy. Mainstream economists emphasizing that fear have, in effect, replaced the climate skeptics as the intellectual enablers of ina ...
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Frank Ackerman
Dollars & Sense. Nov-Dec, 2008. pp. 22-26.
Objectives: Forecasting Impacts,Policies & Legislation,Evaluating Proposals
Geographic Focus: US and Other Countries,Rich and Poor NationsFor the Public

Climate Economics Taskforce Policy Briefs

A set of 15 brief (2 page) papers on aspects of the economic analysis of climate change policy options. From the Introduction: “E3 is a new network of economists who are developing and applying economic arguments for active protection of human health and the natural environment. E3 emerged from a series of conversations between economists, repre ...
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Climate Economics Taskforce
Economics for Equity and the Environment: E3 Network: June 21, 2007
Objectives: Evaluating Programs,Evaluating Proposals
Geographic Focus: US and Other Countries,Rich and Poor NationsFor the Public

Economic Thought and U.S. Climate Change Policy

From the MIT Press Website: "The United States, once a world leader in addressing international environmental challenges, became a vigorous opponent of action on climate change over the past two decades, repudiating regulation and promoting only ineffectual voluntary actions to meet a growing global threat. Why has the United States ...
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David M. Driesen (Ed.)
MIT Press, Cambridge, MA, USA, 2010
Objectives: Policies & Legislation
Geographic Focus: US OnlyFor Economists

Environmental Taxes

This paper provides an overview of key economic issues in the use of taxation as an instrument of environmental policy in the UK. It first reviews economic arguments for using taxes and other market mechanisms in environmental policy, discusses the choice of tax base, and considers the value of the revenue from environmental taxes. It is argued tha ...
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Fullerton, Don, Andrew Leicester Stephen Smith
Cambridge, MA: National Bureau of Economic Research. Working Paper 14197: July 2008
Objectives: Theoretical Modeling,Forecasting Impacts,Evaluating ProposalsFor Economists|For Specialized Analysts|For the Public

Is There Really a Green Paradox?

This paper uses modeling to determine which economic scenarios generate a "green paradox", in which green technology leads to increased fossil fuel use.Abstract:"The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become ...
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Frederck van der Ploeg, Cees Withagen
CESIFO Working Paper No. 2936, Munich, Germany: February 2010.
Objectives: Theoretical Modeling
Geographic Focus: US and Other Countries,Rich and Poor NationsFor Economists

Political Institutions and Greenhouse Gas Controls

Research and insights taken from the field of political economy seen through the eyes of conservatives in the American Enterprise Institute. They suggest that institutions limit the extent to which efficient policies to reduce greenhouse gas emissions are likely to be adopted. High transaction costs among nations, as well as domestic constraints li ...
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Lane, Lee and David Montgomery
Washington, DC: American Enterprise Institute, AEI Center for Regulatory and Market Studies. Related Publication 08-09: November 2008
Objectives: Forecasting Impacts,Evaluating Proposals
Geographic Focus: US and Other CountriesFor the Public

Preventing Market Disruptions in Cap-and-Trade Programs

By definition, implementation of a cap-and-trade program requires creating new markets for emission allowances.  This kind of activity is vulnerable to manipulative behaviors, which, if not regulated, could impair price signals, raise costs and endanger the reputation of the program.   This paper discusses system design elements that could h ...
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William Whitesell and Stacey Davis
The Center for Clean Air Policy, Washington, DC, October 2008
Objectives: Policies & Legislation,Evaluating Programs
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For Specialized Analysts

REDD from an Integrated Perspective: Considering Overall Climate Change Mitigation, Biodiversity Con...

From the executive summary: This discussion paper assesses selected options currently “on the table” in the international  debate and the United Nations Framework Convention on Climate Change (UNFCCC)  negotiations on Reducing Emissions from Deforestation and Forest Degradation in  Developing Countries (REDD). REDD design options are analyzed with ...
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Lars Schmidt
German Development Institute Discussion Paper 4/2009, June 2009
Objectives: Policies & Legislation,Evaluating Programs
Geographic Focus: Rich and Poor NationsFor Economists|For Specialized Analysts

Rising Tigers Sleeping Giant: Asian Nations Set to Dominate the Clean Energy Race by Outinvesting th...

From the Overview: "This report provides the first comprehensive comparison of public investments by the United States and four key Asian competitors (China, Japan, South Korea) in core clean energy technologies, including solar, wind, and nuclear power, carbon capture and storage, advanced vehicles and batteries, and high-speed rail." "Core ...
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Rob Atkinson, Ph.D, Michael Shellenberger, Ted Nordhaus, Devon Swezey, Teryn Norris, Jesse Jenkins, Leigh Ewbank, Johanna Peace and Yael Borofsky
Information Technology and Innovation Foundation and the Breakthrough Institute, Washington DC., November 2009
Objectives: Forecasting Impacts,Policies & Legislation,Evaluating Programs,Evaluating Proposals,Analyzing Opinions & Attitudes
Geographic Focus: US and Other Countries,Asia and OceaniaFor Economists|For Specialized Analysts|For the Public

Subsidising carbon capture Effects on energy prices and market shares in the power market

From the Abstract:  "This paper examines how ambitious climate policies and subsidies to carbon capture may affect international energy prices and market shares in the power market. A detailed numerical model of the international energy markets is used. We first conclude that an ambitious climate policy alone will have substantial effects in the po ...
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Finn Roar Aune, Gang Liu, Knut Einar Rosendahl and Eirik Lund Sagen
Statistics Norway, Research Department, October 2009
Objectives: Forecasting Impacts,Policies & Legislation
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For Specialized Analysts

Subsidising Carbon Capture: Effects on Energy Prices and Market Shares in the Power Market

From the Abstract:  "This paper examines how ambitious climate policies and subsidies to carbon capture may affect international energy prices and market shares in the power market. A detailed numerical model of the international energy markets is used. We first conclude that an ambitious climate policy alone will have substantial effects in the po ...
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Objectives: Forecasting Impacts,Policies & Legislation
Geographic Focus: US and Other Countries,EU and Member StatesFor Economists|For Specialized Analysts

Sustainable Energy Security: Strategic Risks and Opportunities for Business

The key findings of this white paper should "give all risk managers pause" as well as an urgency to "find a new energy paradigm" according to Dr. Richard Ward, CEO of Lloyds, who jointed published this with Chatham House.  The key findings are: Businesses which prepare for and take advantage of the new energy reality will prosper - failu ...
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Antony Froggatt and Glada Lahn
Chatham House, London, UK, 2010
Objectives: Forecasting Impacts,Policies & Legislation,Analyzing Opinions & Attitudes
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor Nations,Asia and Oceania,Africa,Latin AmericaFor Economists|For Specialized Analysts

Tackling Carbon: How To Price Carbon For Climate Policy (Version 1.1)

from introductory matter: "Carbon emissions from energy production and industrial processes are deeply entrenched in our economies. To mitigate the risk of catastrophic climate change they need to be reduced to a fraction of today’s level. The challenge for climate policy is to deliver these emissions reductions. "Carbon prices play an ...
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Karsten Neuhoff
Cambridge, UK: Cambridge University Faculty of Economics. 29 Sept, 2008
Objectives: Theoretical Modeling,Forecasting Impacts
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor NationsFor Economists|For Specialized Analysts

The European Union’s Potential for Strategic Emissions Trading through Minimal Permit Sale Contracts

From the Abstract: “Strategic market behavior by permit sellers will harm the European Union as the EU as a whole is expected to become a large net buyer of permits in a follow-up agreement to the Kyoto Protocol. In this paper we explore how the EU could benefit from making permit trade agreements with non-EU countries. These trade agreements invo ...
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Johan Eyckmans and Cathrine Hagem
Oslo, Norway: Center for Economic Studies (CES), the Ifo Institute for Economic Research, September 2009.
Objectives: Theoretical Modeling
Geographic Focus: EU and Member States,Asia and OceaniaFor Economists

The Reformed Financial Mechanism of the UNFCCC Part II. The Question of Oversight Post Copenhagen S...

From the Intro: "The success of the current international climate change negotiations crucially depends on how much finance is going to be made available to support developing country climate change activities, and it is unlikely that adequate financing will be forthcoming in the absence of an acceptable governance framework. The over ...
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Benito Müller
Oxford Institute for Energy Studies, Oxford, UK, April 2010
Objectives: Theoretical Modeling,Policies & Legislation,Evaluating Programs
Geographic Focus: US and Other Countries,EU and Member States,Rich and Poor Nations,Asia and Oceania,Africa,Latin AmericaFor Economists|For Specialized Analysts

Too Much Oil

This paper discusses the "green paradox", in which emerging green technologies stimulate an increase in oil supplies.Abstract:"Fear for oil exhaustion and its consequences on economic growth has been a driver of a rich literature on exhaustible resources from the 1970s onwards. But our view on oil has remarkably changed and we now worry how we shou ...
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Reyer Gerlagh
Fondazione Eni Enrico Mattei, Nota di Lavoro, Tilburg, Netherlands: 13 November 2009.
Objectives: Theoretical Modeling,Forecasting Impacts
Geographic Focus: US and Other Countries,Rich and Poor NationsFor Economists

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