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Climate Change: National and Local Policy Opportunities in China AgEcon
Teng, Fei; Gu, Alun.
Climate Change poses a wide range of potentially very severe threats in China. This aggravates the existing vulnerability of China and is one of the big challenges faced by the Chinese government. Adaptation programmes and projects are being developed and implemented at national and local level. As China is engaged in heavy investment in infrastructure development as a consequence of the rapid process of development and urbanization, mainstreaming adaptation into such development process is a priority for China. China has also made positive contributions to reducing greenhouse gas emissions through participations in the CDM under the Kyoto Protocol framework. Although mitigation is not a priority at national or local level, it has been integrated into...
Tipo: Working or Discussion Paper Palavras-chave: Climate Change; Local Policy; National Policy; Mitigation; Local Pollution; Environmental Economics and Policy; H7; Q54; Q56; O53.
Ano: 2007 URL: http://purl.umn.edu/9091
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Reinforcing the EU Dialogue with Developing Countries on Climate Change Mitigation AgEcon
Vohringer, Frank; Haurie, Alain; Guan, Dabo; Labriet, Maryse; Loulou, Richard; Bosetti, Valentina; Shukla, Pryadarshi R.; Thalmann, Philippe.
The FP6 TOCSIN project has evaluated climate change mitigation options in China and India and the conditions for strategic cooperation on research, development and demonstration (RD&D) and technology transfer with the European Union. In particular, the project investigated the strategic dimensions of RD&D cooperation and the challenge of creating incentives to encourage the participation of developing countries in post-2012 GHG emissions reduction strategies and technological cooperation. This paper summarizes the main policy-relevant results of the project, including the requests for: (I) almost immediate decisions on ambitious mitigation; (II) a strong increase in Annex I support regarding R&D spending and technology transfer; (III) a...
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Technology Transfers; Environmental Economics and Policy; Q54; Q55.
Ano: 2010 URL: http://purl.umn.edu/60746
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The Case for Intensity Targets AgEcon
Pizer, William A..
While the rest of the world has pursued absolute emissions limits for greenhouse gases, the Bush administration has proposed an alternative policy formulation based, among other things, on reducing emissions intensity-that is, emissions per dollar of real gross domestic product. Critics of this formulation have denounced the general idea of an intensity-based emissions target, along with its voluntary nature and weak targets. This raises the question of whether intensity-based emissions limits, distinct from the other features of the Bush initiative, offer a useful alternative to absolute emissions limits. This paper makes the case that they do, based on how emissions targets are framed. The argument draws on four key observations: greenhouse gas emissions...
Tipo: Working or Discussion Paper Palavras-chave: Carbon; Climate; Policy; Intensity; Global warming; Environmental Economics and Policy; Q54; Q58; Q56.
Ano: 2005 URL: http://purl.umn.edu/10917
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An Experimental Economic Analysis of Carbon Trading Options for Australia AgEcon
Tisdell, John G.; Grainger, Corinne.
Australia is currently developing a carbon emissions trading program. The Garnaut report recommendations include options for the allocation of carbon credits, trading schemes, banking and borrowing, and self reporting mechanisms. This paper reports the results of a series of economic experiments in which we explored spot and future markets given high and low levels of carbon credit reductions. The results provide important insights to the current debate in Australia and highlight the importance of well crafted market design.
Tipo: Conference Paper or Presentation Palavras-chave: Climate change; Emissions trading; Compliance; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q53; Q54.
Ano: 2009 URL: http://purl.umn.edu/51044
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Are Agricultural Values a Reliable Guide in Determining Landowners’ Decisions to Create Carbon Forest Sinks? AgEcon
Shaikh, Sabina L.; Sun, Lili; van Kooten, G. Cornelis.
This research examines the effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social and carbon-uptake purposes, and potential costs of sequestering carbon through afforestation in western Canada. Using data from a survey of landowners, a discrete choice random utility model is used to determine the probability of landowners’ participation and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative benefits to landowners from planting trees, benefits not captured by foregone returns from agricultural activities on marginal land. Estimates of WTA are less than foregone returns, but even so average costs of creating carbon credits...
Tipo: Working or Discussion Paper Palavras-chave: Willingness to accept compensation for tree planting; Afforestation; Climate change; Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy; Q15; Q23; Q54.
Ano: 2005 URL: http://purl.umn.edu/37017
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Impure Public Technologies and Environmental Policy AgEcon
Markandya, Anil; Rubbelke, Dirk T.G..
Analyses of public goods regularly address the case of pure public goods. However, a large number of (international) public goods exhibit characteristics of different degrees of publicness, i.e. they are impure public goods. In our analysis of transfers helping to overcome the inefficient provision of such goods, we therefore apply the Lancastrian characteristics approach. In contrast to the existing literature, we consider the case of a continuum of impure public goods. We employ the example of international conditional transfers targeting to overcome suboptimal low climate protection efforts by influencing the abatement technology choice of countries.
Tipo: Working or Discussion Paper Palavras-chave: Impure Public Goods; Lancastrian Characteristics Approach; Conditional Transfers; Ancillary Benefits of Climate Policy; Environmental Economics and Policy; H87; Q54.
Ano: 2008 URL: http://purl.umn.edu/44226
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The U.S. Proposed Carbon Tariffs, WTO Scrutiny and China’s Responses AgEcon
Zhang, ZhongXiang.
With countries from around the world set to meet in Copenhagen to try to hammer out a post-2012 climate change agreement, no one would disagree that a U.S. commitment to cut greenhouse gas emissions is essential to such a global pact. However, despite U.S. president Obama’s recent announcement to push for a commitment to cut U.S. greenhouse gas emissions by 17% by 2020, in reality it is questionable whether U.S. Congress will agree to specific emissions cuts, although they are not ambitious at all from the perspectives of both the EU and developing countries, without the imposition of carbon tariffs on Chinese products to the U.S. market, even given China’s own recent announcement to voluntarily seek to reduce its carbon intensity by 40-45% over the same...
Tipo: Working or Discussion Paper Palavras-chave: Post-2012 Climate Negotiations; Border Carbon Adjustments; Carbon Tariffs; Emissions Allowance Requirements; Cap-And-Trade Regime; Lieberman-Warner Bill; Waxman-Markey Bill; World Trade Organization; Kyoto Protocol; China; United States; Environmental Economics and Policy; F18; Q48; Q54; Q56; Q58.
Ano: 2010 URL: http://purl.umn.edu/60682
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Endogenous Discounting and Climate Policy AgEcon
Tsur, Yacov; Zemel, Amos.
Under risk of abrupt climate change, the occurrence hazard is added to the social discount rate. As a result, the social discount rate (i) increases and (ii) turns endogenous to the global warming policy. The second effect bears profound policy implications that are magnified by economic growth. In particular, we find that greenhouse gases (GHG) emission should be terminated at a finite time so that the ensuing occurrence risk will vanish in the long run. Due to the public bad nature of the catastrophic risk, the second effect is ignored in a competitive allocation and unregulated economic growth will give rise to excessive emissions. In fact, the GHG emission paths under the optimal and competitive growth regimes lie at the extreme ends of the range of...
Tipo: Working or Discussion Paper Palavras-chave: Abrupt climate change; Hazard rate; Discounting; Economic growth; Emission policy; H23; H41; O13; O40; Q54; Q58.
Ano: 2008 URL: http://purl.umn.edu/37944
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DISCOUNTING AND CLIMATE CHANGE POLICY AgEcon
Karp, Larry S.; Tsur, Yacov.
A constant social discount rate cannot reflect both a reasonable opportunity cost of public funds and an ethically defensible concern for generations in the distant future. We use a model of hyperbolic discounting that achieves both goals. We imbed this discounting model in a simple climate change model to calculate constant equivalent discount rates" and plausible levels of expenditure to control climate change. We compare these results to discounting assumptions and policy recommendations in the Stern Review on Climate Change.
Tipo: Working or Discussion Paper Palavras-chave: Discounting; Climate change modeling; Stern Review; Markov Perfect Equilibria; Environmental Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2007 URL: http://purl.umn.edu/7149
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Fossil Fuel Extraction and Climate Policy: A Review of the Green Paradox with Endogenous Resource Exploration AgEcon
Osterle, Ines.
Policies aimed at reducing emissions from fossil fuels may increase climate damages. This “Green Paradox” emerges if resource owners increase near-term extraction in fear of stricter future policy measures. Hans-Werner Sinn (2008) showed that the paradox occurs when increasing resource taxes are applied within a basic exhaustible resource model. This article highlights that the emergence of the Green Paradox within this framework relies on the non-existence of a backstop technology and fixed fossil fuel resources. In doing this, it initially presents a basic exhaustible resource model which includes a backstop technology and shows that the implementation of a specific sales tax path is effective in mitigating global warming. Secondly, it considers the case...
Tipo: Working Paper Palavras-chave: Green Paradox; Supply-side dynamics; Climate Policy; Exhaustible Resources; Fossil Fuels; Exploration; Environmental Economics and Policy; Q31; Q54; Q58; H23; H32.
Ano: 2012 URL: http://purl.umn.edu/122010
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Preparing for catastrophic climate change AgEcon
Tsur, Yacov; Withagen, Cees.
We study optimal adaptation to climate change when the harmful consequences of global warming are associated with stochastic occurrence of abrupt changes. The adaptation policy entails the accumulation of a particular sort of capital that will eliminate or reduce the catastrophic damage of an abrupt climate change when (and if) it occurs. The occurrence date is uncertain. The policy problem involves balancing the tradeoffs between the (certain) investment cost prior to occurrence and the benefit (in reduced damage) that will be realized after the (uncertain) occurrence date. For stationary economies the optimal adaptation capital converges to a steady state. For growing economies the optimal adaptation capital stock approaches the maximal economic level...
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Adaptation; Hazard; Environmental Economics and Policy; O13; Q54.
Ano: 2011 URL: http://purl.umn.edu/117652
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Afforestation and Timber Management Compliance Strategies in Climate Policy. A Computable General Equilibrium Analysis AgEcon
Michetti, Melania; Nunes Rosa, Renato.
This paper analyzes the role of afforestation-reforestation and timber management activities, and their major and secondary economic effects in stabilizing climate during the first commitment period of the Kyoto Protocol. In particular, with a Computable General Equilibrium framework, the ICES model, it is inferred how forest carbon sequestration fits within the European domestic portfolio of a 2020-20 and 2020-30 climate stabilization policy. Afforestation and land use are accounted for by introducing their effects in the model. This is done by relying on carbon sequestration curves provided by Sohngen (2005), which describe the average annual cost of sequestration for selected world regions. Results show that afforestation and timber management could...
Tipo: Working or Discussion Paper Palavras-chave: Climate Change; General Equilibrium Modelling; Forestry; Afforestation; Environmental Economics and Policy; D58; Q23; Q24; Q52; Q54.
Ano: 2011 URL: http://purl.umn.edu/99641
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Time perspective and climate change policy AgEcon
Karp, Larry S.; Tsur, Yacov.
The tendency to foreshorten time units as we peer further into the future provides an explanation for hyperbolic discounting at an intergenerational time scale. We study implications of hyperbolic discounting for climate change policy, when the probability of a climate-induced catastrophe depends on the stock of greenhouse gasses. We provide a positive analysis by characterizing the set of Markov perfect equilibria (MPE) of the intergenerational game amongst a succession of policymakers. Each policymaker reflects her generation’s preferences, including its hyperbolic discounting. For a binary action game, we compare the MPE set to a “restricted commitment” benchmark. We compare the associated “constant equivalent discount rates” and the willingness to pay...
Tipo: Working or Discussion Paper Palavras-chave: Hyperbolic discounting; Markov Perfect Equilibria; Catastrophic climate change; Uncertainty; Environmental Economics and Policy; Resource /Energy Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2008 URL: http://purl.umn.edu/42848
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CLIMATE POLICY WHEN THE DISTANT FUTURE MATTERS: CATASTROPHIC EVENTS WITH HYPERBOLIC DISCOUNTING AgEcon
Karp, Larry S.; Tsur, Yacov.
Low probability catastrophic climate change can have a signifcant influence on policy under hyperbolic discounting. We compare the set of Markov Perfect Equilibria (MPE) to the optimal policy under time-consistent commitment. For some initial levels of risk there are multiple MPE; these may involve either excessive or insufficient stabilization effort. These results imply that even if the free-rider problem amongst contemporaneous decision-makers were solved, there may remain a coordination problem amongst successive generations of decision-makers. A numerical example shows that under plausible conditions society should respond vigorously to the threat of climate change.
Tipo: Working or Discussion Paper Palavras-chave: Abrupt climate change; Event uncertainty; Catastrophic risk; Hyperbolic discounting; Markov Perfect Equilibria; Environmental Economics and Policy; C61; C73; D63; D99; Q54.
Ano: 2007 URL: http://purl.umn.edu/7181
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Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation AgEcon
Bosetti, Valentina; Lubowski, Ruben N.; Golub, Alexander; Markandya, Anil.
Discussions over tropical deforestation are currently at the forefront of climate change policy negotiations at national, regional, and international levels. This paper analyzes the effects of linking Reduced Emissions from Deforestation and Forest Degradation (REDD) to a global market for greenhouse gas emission reductions. We supplement a global climate-energy-economy model with alternative cost estimates for reducing deforestation emissions in order to examine a global program for stabilizing greenhouse gas concentrations at 550 ppmv of CO2 equivalent. Introducing REDD reduces global forestry emissions through 2050 by 20-22% in the Brazil-only case and by 64-88% in the global REDD scenarios. At the same time, REDD lowers the total costs of the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon market; Climate change; Innovation; Mitigation; Policy costs; Offsets; Reduced Emissions from Deforestation and Degradation (REDD); Technological change; Tropical deforestation; Environmental Economics and Policy; Q23; Q24; Q42; Q52; Q54; Q55.
Ano: 2009 URL: http://purl.umn.edu/52544
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How a National Carbon Policy Could Affect Grain Variety Selection: The Case of Rice in Arkansas AgEcon
McFadden, Brandon R.; Nalley, Lawton Lanier; Popp, Michael P..
This study conducts a life cycle assessment (LCA) of carbon emissions and estimates the carbon sequestered in 14 commonly sown rice varieties across the Arkansas Delta. Given the uncertainty regarding future carbon legislation, and increased consumer and industry demand for “greener” products, this study estimates how potential carbon policies would affect rice cultivar selection Hybrid rice varieties, given their higher yield and higher yield per unit of green house gas (GHG) emission, are better positioned to take advantage of any increase in consumer demand for “greener” products and/or absorb any government policy better than conventional rice cultivars.
Tipo: Conference Paper or Presentation Palavras-chave: Rice; Carbon Policy; Cap and Trade; Carbon Offset; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Q52; Q54; Q58.
Ano: 2010 URL: http://purl.umn.edu/97827
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Will Buying Tropical Forest Carbon Benefit The Poor? Evidence from Costa Rica AgEcon
Kerr, Suzi; Lipper, Leslie; Pfaff, Alexander S.P.; Cavatassi, Romina; Davis, Benjamin; Hendy, Joanna; Sanchez, Arturo.
We review claims about the potential for carbon markets that link both payments for carbon services and poverty levels to ongoing rates of tropical deforestation. We then examine these effects empirically for Costa Rica during the 20th century using an econometric approach that addresses the irreversibilities in deforestation. We find significant effects of the relative returns to forest on deforestation rates. Thus, carbon payments would induce conservation and also carbon sequestration, and if land users were poor could conserve forest while addressing rural poverty. However, we find poorer areas are less responsive to returns. This and transaction costs could lead carbon payments policies not to be focused upon the poor. Other practical considerations...
Tipo: Working or Discussion Paper Palavras-chave: Land Use; Deforestation; Poverty; Climate Change; Development; Costa Rica.; Resource /Energy Economics and Policy; I32; O13; Q51; Q54; Q56; Q31.
Ano: 2004 URL: http://purl.umn.edu/23807
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Are there Carbon Savings from US Biofuel Policies? Accounting for Leakage in Land and Fuel Markets AgEcon
Bento, Antonio M.; Klotz, Richard; Landry, Joel R..
This paper applies the insights of the carbon leakage literature to study the emissions consequences of biofuel policies. We develop a simple analytic framework to decompose the intended emissions impacts of biofuel policy from four sources of carbon leakage: domestic fuel markets, domestic land markets, world land markets and world crude oil markets. A numerical simulation model illustrates the magnitude of each source of leakage for combinations of two current US biofuel policies: the Volumetric Ethanol Excise Tax Credit (VEETC) and the Renewable Fuel Standard (RFS). In the presence of both land and fuel market leakage, current US biofuel policies are unlikely to reduce greenhouse gases. Four of the five policy scenarios we consider lead to increases in...
Tipo: Conference Paper or Presentation Palavras-chave: Multi-market; Carbon leakage; Biofuels; Greenhouse gases; Agricultural and Food Policy; Land Economics/Use; Resource /Energy Economics and Policy; Q42; Q54; Q58.
Ano: 2011 URL: http://purl.umn.edu/104008
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Are Compact Cities Environmentally (and Socially) Desirable? AgEcon
Gaigne, Carl; Riou, Stephane; Thisse, Jacques-Francois.
There is a wide consensus among international institutions and national governments in favor of compact (i.e. densely populated) cities as a way to improve the ecological performance of the transport system. Indeed, when both the intercity and intra-urban distributions of activities are given, a higher population density makes cities more environmentally friendly as the average commuting length is reduced. However, when we account for the possible relocation of activities within and between cities in response to a higher population density, the latter may cease to hold. Because changes in population density affect land rents and wages, firms and workers re-optimize and choose new locations. We show that this may reshape the urban system in a way that...
Tipo: Working Paper Palavras-chave: Greenhouse gas; Commuting costs; Transport costs; Cities; Environmental Economics and Policy; D61; F12; Q54; Q58; R12.
Ano: 2012 URL: http://purl.umn.edu/121692
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Identification of stochastic processes for an estimated icewine temperature hedging variable AgEcon
Cyr, Don; Kusy, Martin.
Weather derivatives are a relatively new form of financial security that can provide firms with the ability to hedge against the impact of weather related risks to their activities. Participants in the energy industry have employed standardized weather contracts trading on organized exchanges since 1999 and the interest in non-standardized contracts for specialized weather related risks is growing at an increasing rate. The purpose of this paper is to examine the potential use of weather derivatives to hedge against temperature related risks in Canadian ice wine production. Specifically we examine historical data for the Niagara region of the province of Ontario, Canada, the largest icewine producing region of the world, to determine an appropriate...
Tipo: Working or Discussion Paper Palavras-chave: Wine market; Weather derivatives; Weather hedging; Agribusiness; Agricultural Finance; Crop Production/Industries; Environmental Economics and Policy; G13; G32; Q14; Q51; Q54.
Ano: 2007 URL: http://purl.umn.edu/37298
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