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Absolute Abundance and Relative Scarcity: Announced Policy, Resource Extraction, and Carbon Emissions AgEcon
Di Maria, Corrado; Smulders, Sjak; van der Werf, Edwin.
We study the effectiveness of climate change policy in a model with multiple non-renewable resources that differ in their carbon content. We find that, when allowing some time between announcement and implementation of a cap on carbon dioxide emissions, emissions from non-renewable energy sources increase at the time of announcement. There are two channels behind this effect. First, since a binding constraint on emissions restricts energy use during some period of time, more must be extracted during other periods. Second, since low carbon energy sources are relatively more valuable when the policy is implemented, it is optimal to conserve them ahead of enforcement. This might induce a switch to high-carbon resources before the policy is implemented.
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Non-renewable Resources; Announcement Effects; Scarcity; Order of Extraction; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/46626
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Climate Policy and the Optimal Extraction of High- and Low-Carbon Fossil Fuels AgEcon
van der Werf, Edwin; Smulders, Sjak.
We study how restricting CO2 emissions affects resource prices and depletion over time. We use a Hotelling-style model with two non-renewable fossil fuels that differ in their carbon content (e.g. coal and natural gas) and in addition are imperfect substitutes in final good production. We show that an economy facing a CO2 flow-constraint may substitute towards the relatively dirty input. As the economy tries to maximise output per unit of emissions it is not only carbon content that matters: productivity matters as well. With an announced constraint the economy first substitutes towards the less productive input such that more of the productive input is available when constrained. Preliminary empirical results suggest that it is cost-effective to...
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Non-Renewable Resources; Input Substitution; Environmental Economics and Policy; Resource /Energy Economics and Policy; O13; Q31; Q43.
Ano: 2007 URL: http://purl.umn.edu/8218
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Pollution and the Efficiency of Urban Growth AgEcon
Quaas, Martin F.; Smulders, Sjak.
We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in equilibrium, compared to the efficient urbanization path, if economic growth implies increasing aggregate emissions. If, on the other hand, production becomes cleaner over time (`quality growth') the urbanization path approximates the efficient outcome after finite time.
Tipo: Working or Discussion Paper Palavras-chave: Cities; Urbanisation; Pollution; Growth; Migration; Sustainable Development; Environmental Economics and Policy; Community/Rural/Urban Development; Q56; R12; O18.
Ano: 2008 URL: http://purl.umn.edu/44225
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Uncertain Climate Policy and the Green Paradox AgEcon
Smulders, Sjak; Tsur, Yacov; Zemel, Amos.
Unintended consequences of announcing a climate policy well in advance of its implementation have been studied in a variety of situations. We show that a phenomenon akin to the so-called “Green- Paradox” holds also when the policy implementation date is uncertain. Governments are compelled, by international and domestic pressure, to demonstrate an intention to reduce greenhouse gas emissions. Taking actual steps, such as imposing a carbon tax on fossil energy, is a different matter altogether and depends on a host of political considerations. As a result, economic agents often consider the policy implementation date to be uncertain. We show that in the interim period between the policy announcement and its actual implementation the emission of green-house...
Tipo: Working or Discussion Paper Palavras-chave: Climate policy; Carbon tax; Uncertainty; Green paradox; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/93129
Registros recuperados: 4
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