Download or read book Climate change Methods to internalize externalities written by Nina Elbers and published by GRIN Verlag. This book was released on 2021-08-04 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2021 in the subject Economy - Environment economics, grade: 1,5, University of Applied Sciences Dortmund, language: English, abstract: The dissertation is motivated to identify possible reasons for insufficient efforts to mitigate climate change. In addition, economic instruments to address the global problem are examined to find the most cost-effective and efficient solution. This thesis also aims to determine and address arising challenges related to the global implementation of climate policies. Based on empirical research, the main barriers to mitigation efforts include intangible results of the measures combined with high costs of affected sectors and potential benefits from free riders. Anthropocene – this is what many scientists call the new geological era which has already begun. The name is derived from anthropogenic, which describes that something was created by the impact of humans. Precisely, this is what scientists want to portray, as there is ample empirical evidence that the earth is affected by human activities. In fact, previous research has documented that there is a strong rise in the global carbon dioxide concentration since the mid-20th century. In recent years, several publications appeared documenting that many anthropogenic activities are altering climate. Hsiang and Kopp define climate "as the joint probability distribution describing the state of the atmosphere, ocean, and freshwater systems (including ice)". Although this is a simplification, it includes key factors related to the change of climate like modifications in temperature, humidity, precipitation, sea level and extreme weather events like storms.
Download or read book Internalizing the Carbon Externality written by James Terence Woodward and published by . This book was released on 2010 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Social, political, and economic trends suggest that the United States may soon join other United Nations Framework Convention on Climate Change (UNFCCC) countries in drafting substantive, national climate change policy. After providing a brief overview of past and present climate action taken both nationally and internationally, this paper explores different economic solutions to address the externalities of fossil fuel emissions. Alternatives include command-and-control regulation, a carbon tax, and a cap-and-trade program. Several factors, including domestic political anti-tax sentiment, suggest that a cap-and-trade framework is the most promising market-based alternative to reduce carbon emissions within the United States's electricity sector. Case studies focus on the power generation components of four Texas utilities: Austin Energy, CPS Energy of San Antonio, NRG Energy, and Luminant and assess cap-and-trade's ramifications on electricity prices. Utilities would seek to pass through to customers in the form of higher electricity prices up to 100 percent of expenses incurred from mitigating greenhouse gas (GHG) emissions. Three primary factors will determine how a given carbon dioxide cap-and-trade allowance price will affect the electricity price charged by utilities: the carbon intensity of the generation fuel mix, whether the wholesale electricity market is regulated or competitive, and whether greenhouse gas allowances are auctioned or grandfathered to covered entities. Consumer elasticity would determine resulting demand for the higher priced energy. Relatively inelastic electricity consumption could cause electricity sector customers to incur financial losses approximately eight times larger than producers by the year 2020 under a mature cap-and-trade framework. Furthermore, evidence suggests market-based GHG reduction tools such as a cap-and-trade schema alone are not sufficient to decarbonize the electricity generation sector. Without complementary regulatory policies that mandate transition to clean energy sources, cap-and-trade will only succeed in redistributing the opportunity cost associated with the carbon externality.
Download or read book How a Minimum Carbon Price Commitment Might Help to Internalize the Global Warming Externality written by Martin L. Weitzman and published by . This book was released on 2016 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is difficult to resolve the global warming free-rider externality problem by negotiating many different quantity targets. By contrast, negotiating a single internationally-binding minimum carbon price (the proceeds from which are domestically retained) counters self-interest by incentivizing countries to internalize the externality. In this contribution I attempt to sketch out, mostly with verbal arguments, the sense in which each country's extra cost from a higher emissions price is counter-balanced by that country's extra benefit from inducing all other countries to simultaneously lower their emissions in response to the higher price. Some implications are discussed. While the paper could be centered on a more formal model, here the tone of the discussion resembles more that of an exploratory think piece directed to policymakers and the general public.
Download or read book Carbon Markets in a Climate Changing Capitalism written by Gareth Bryant and published by Cambridge University Press. This book was released on 2019-02-21 with total page 195 pages. Available in PDF, EPUB and Kindle. Book excerpt: The promise of harnessing market forces to combat climate change has been unsettled by low carbon prices, financial losses, and ongoing controversies in global carbon markets. And yet governments around the world remain committed to market-based solutions to bring down greenhouse gas emissions. This book discusses what went wrong with the marketisation of climate change and what this means for the future of action on climate change. The book explores the co-production of capitalism and climate change by developing new understandings of relationships between the appropriation, commodification and capitalisation of nature. The book reveals contradictions in carbon markets for addressing climate change as a socio-ecological, economic and political crisis, and points towards more targeted and democratic policies to combat climate change. This book will appeal to students, researchers, policy makers and campaigners who are interested in climate change and climate policy, and the political economy of capitalism and the environment.
Download or read book Can Negotiating a Uniform Carbon Price Help to Internalize the Global Warming Externality written by Martin L. Weitzman and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Thus far, most approaches to resolving the global warming externality have been quantity based. With n different national entities, a meaningful comprehensive treaty involves negotiating n different binding emissions quotas (whether tradeable or not). In post-Kyoto practice this n-dimensional coordination problem has proven intractable and has essentially devolved into sporadic regional volunteerism. By contrast, on the price side there is a natural one-dimensional focus on negotiating a single binding carbon price, the proceeds from which are domestically retained. Significantly (and unlike negotiated quantities) the negotiated uniform price on carbon emissions embodies an automatic "countervailing force" against free-riding self interest by incentivizing agents to internalize the externality. The model of this paper indicates an exact sense in which each agent's extra cost from a higher emissions price is counter-balanced by that agent's extra benefit from inducing (via the higher emissions price) all other agents to simultaneously lower their emissions. With some further restrictions, the theoretical model shows that population-weighted majority rule for a uniform price on carbon emissions can come as close to global efficiency as the median marginal benefit (per capita) is close to the mean marginal benefit (per capita).
Download or read book Global Carbon Pricing written by Peter Cramton and published by MIT Press. This book was released on 2017-06-16 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why the traditional “pledge and review” climate agreements have failed, and how carbon pricing, based on trust and reciprocity, could succeed. After twenty-five years of failure, climate negotiations continue to use a “pledge and review” approach: countries pledge (almost anything), subject to (unenforced) review. This approach ignores everything we know about human cooperation. In this book, leading economists describe an alternate model for climate agreements, drawing on the work of the late Nobel laureate Elinor Ostrom and others. They show that a “common commitment” scheme is more effective than an “individual commitment” scheme; the latter depends on altruism while the former involves reciprocity (“we will if you will”). The contributors propose that global carbon pricing is the best candidate for a reciprocal common commitment in climate negotiations. Each country would commit to placing charges on carbon emissions sufficient to match an agreed global price formula. The contributors show that carbon pricing would facilitate negotiations and enforcement, improve efficiency and flexibility, and make other climate policies more effective. Additionally, they analyze the failings of the 2015 Paris climate conference. Contributors Richard N. Cooper, Peter Cramton, Ottmar Edenhofer, Christian Gollier, Éloi Laurent, David JC MacKay, William Nordhaus, Axel Ockenfels, Joseph E. Stiglitz, Steven Stoft, Jean Tirole, Martin L. Weitzman
Download or read book Can Negotiating a Uniform Carbon Price Help to Internalize the Global Warming Externality written by Martin L. Weitzman and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Thus far, most approaches to resolving the global warming externality have been quantity based. With n different national entities, a meaningful comprehensive treaty involves negotiating n different binding emissions quotas (whether tradeable or not). In post-Kyoto practice this n-dimensional coordination problem has proven intractable and has essentially devolved into sporadic regional volunteerism. By contrast, on the price side there is a natural one-dimensional focus on negotiating a single binding carbon price, the proceeds from which are domestically retained. Significantly (and unlike negotiated quantities) the negotiated uniform price on carbon emissions embodies an automatic "countervailing force" against free-riding self interest by incentivizing agents to internalize the externality. The model of this paper indicates an exact sense in which each agent's extra cost from a higher emissions price is counter-balanced by that agent's extra benefit from inducing (via the higher emissions price) all other agents to simultaneously lower their emissions. With some further restrictions, the theoretical model shows that population-weighted majority rule for a uniform price on carbon emissions can come as close to global efficiency as the median marginal benefit (per capita) is close to the mean marginal benefit (per capita).
Download or read book Can Harmonized National Carbon Taxes Internalize the Global Warming Externality written by Martin L. Weitzman and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Thus far, most approaches to resolving the global warming externality have been quantity based. With n different national entities, a meaningful comprehensive treaty involves negotiating n different binding emissions quotas (whether tradeable or not). In post-Kyoto practice this n-dimensional coordination problem has proven intractable and has essentially devolved into sporadic regional volunteerism. By contrast, on the price side there is a natural one-dimensional focus on negotiating a single binding carbon price, the proceeds from which are domestically retained. Significantly (and unlike negotiated quantities) the negotiated uniform price on carbon emissions embodies an automatic "countervailing force" against free-riding self interest by incentivizing agents to internalize the externality. The model of this paper indicates an exact sense in which each agent's extra cost from a higher emissions price is counter-balanced by that agent's extra benefit from inducing (via the higher emissions price) all other agents to simultaneously lower their emissions. With some further restrictions, the theoretical model shows that population-weighted majority rule for a uniform price on carbon emissions can come as close to global efficiency as the median marginal benefit (per capita) is close to the mean marginal benefit (per capita).
Download or read book How Much Carbon Pricing is in Countries Own Interests The Critical Role of Co Benefits written by Ian W.H. Parry and published by International Monetary Fund. This book was released on 2014-09-17 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper calculates, for the top twenty emitting countries, how much pricing of carbon dioxide (CO2) emissions is in their own national interests due to domestic co-benefits (leaving aside the global climate benefits). On average, nationally efficient prices are substantial, $57.5 per ton of CO2 (for year 2010), reflecting primarily health co-benefits from reduced air pollution at coal plants and, in some cases, reductions in automobile externalities (net of fuel taxes/subsidies). Pricing co-benefits reduces CO2 emissions from the top twenty emitters by 13.5 percent (a 10.8 percent reduction in global emissions). However, co-benefits vary dramatically across countries (e.g., with population exposure to pollution) and differentiated pricing of CO2 emissions therefore yields higher net benefits (by 23 percent) than uniform pricing. Importantly, the efficiency case for pricing carbon’s co-benefits hinges critically on (i) weak prospects for internalizing other externalities through other pricing instruments and (ii) productive use of carbon pricing revenues.
Download or read book Carbon Pricing written by David Adamson and published by Edward Elgar Publishing. This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2012, Australia took the major step of introducing a carbon price, involving the creation of a system of emissions permits initially issued at a fixed price. Carbon Pricing brings together experts instrumental in the development, and operation, of Australia's carbon policy who have played a significant role in the broader debate over climate change policy. Together they have achieved an in-depth analysis of Australia s policy stance on pricing carbon and its implications for the wider economy. While the future of carbon pricing is itself unclear in Australia, the experiences, insights and conclusions outlined herein will prove invaluable to a global audience. The assessment of the initial operation of the carbon price provides a wide range of insights into the problems of mitigating climate change, and the prospects for the future. The critical analysis will provide a valuable resource to inform wider international debates concerning alternative mechanisms for internalizing the carbon externality, tax reform, climate skepticism and carbon farming initiatives. With its interdisciplinary approach, Carbon Pricing, will appeal to scholars and researchers of economics in general and climate change, natural resources and energy policy in particular. Those organizations and policymakers involved in similar experiments and processes in other countries will find the experiences and analysis invaluable. Contributors include D. Adamson, M. Battaglia, W.P. Bell, D. Besley, J. Cook, C. Downie, J. Foster, J. Freebairn, R. Garnaut, S. Grant, M. Harris, S. Kennedy, M. Keogh, T. Mallawaarachchi, R. Nelson, D. Quiggin, J. Quiggin, P. Wild, S. Writer
Download or read book Macroeconomic and Financial Policies for Climate Change Mitigation A Review of the Literature written by Signe Krogstrup and published by International Monetary Fund. This book was released on 2019-09-04 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.
Download or read book Understanding Risks and Uncertainties in Energy and Climate Policy written by Haris Doukas and published by Springer. This book was released on 2018-12-10 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access book analyzes and seeks to consolidate the use of robust quantitative tools and qualitative methods for the design and assessment of energy and climate policies. In particular, it examines energy and climate policy performance and associated risks, as well as public acceptance and portfolio analysis in climate policy, and presents methods for evaluating the costs and benefits of flexible policy implementation as well as new framings for business and market actors. In turn, it discusses the development of alternative policy pathways and the identification of optimal switching points, drawing on concrete examples to do so. Lastly, it discusses climate change mitigation policies’ implications for the agricultural, food, building, transportation, service and manufacturing sectors.
Download or read book The Spirit of Green written by William D. Nordhaus and published by Princeton University Press. This book was released on 2021-05-18 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: From a Nobel Prize–winning pioneer in environmental economics, an innovative account of how and why “green thinking” could cure many of the world’s most serious problems—from global warming to pandemics Solving the world’s biggest problems—from climate catastrophe and pandemics to wildfires and corporate malfeasance—requires, more than anything else, coming up with new ways to manage the powerful interactions that surround us. For carbon emissions and other environmental damage, this means ensuring that those responsible pay their full costs rather than continuing to pass them along to others, including future generations. In The Spirit of Green, Nobel Prize–winning economist William Nordhaus describes a new way of green thinking that would help us overcome our biggest challenges without sacrificing economic prosperity, in large part by accounting for the spillover costs of economic collisions. In a discussion that ranges from the history of the environmental movement to the Green New Deal, Nordhaus explains how the spirit of green thinking provides a compelling and hopeful new perspective on modern life. At the heart of green thinking is a recognition that the globalized world is shaped not by isolated individuals but rather by innumerable interactions inside and outside the economy. He shows how rethinking economic efficiency, sustainability, politics, profits, taxes, individual ethics, corporate social responsibility, finance, and more would improve the effectiveness and equity of our society. And he offers specific solutions—on how to price carbon, how to pursue low-carbon technologies, how to design an efficient tax system, and how to foster international cooperation through climate clubs. The result is a groundbreaking new vision of how we can have our environment and our economy too.
Download or read book Governing the Climate Energy Nexus written by Fariborz Zelli and published by Cambridge University Press. This book was released on 2020-07-16 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analysing the interactions between institutions in the climate change and energy nexus, including the consequences for their legitimacy and effectiveness. Prominent researchers from political science and international relations compare three policy domains: renewable energy, fossil fuel subsidy reform, and carbon pricing. This title is also available as Open Access on Cambridge Core.
Download or read book The Economics of Welfare written by Arthur Cecil Pigou and published by . This book was released on 1920 with total page 1024 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economic Models of Climate Change written by S. DeCanio and published by Springer. This book was released on 2003-08-19 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: The climate policy debate has been dominated by economic estimates of the costs of policies to reduce greenhouse gas emissions. Yet the models used to derive those estimates are based on assumptions that have largely gone untested. The conventional approach embodies structural features that rule out alternative market outcomes. In addition, the distribution of 'climate rights' is crucial to determining the economic affects of various policies. Bringing these considerations to the forefront shows how domestic and international policy solutions might be found.
Download or read book Architectures for Agreement written by Joseph E. Aldy and published by Cambridge University Press. This book was released on 2007-09-10 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Architectures for Agreement offers a uniquely wide-ranging menu of options for post-Kyoto climate policy.
