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Using the Market to Address Climate Change: Insights from Theory and Experience AgEcon
Aldy, Joseph E.; Stavins, Robert N..
Emissions of greenhouse gases linked with global climate change are affected by diverse aspects of economic activity, including individual consumption, business investment, and government spending. An effective climate policy will have to modify the decision calculus for these activities in the direction of more efficient generation and use of energy, lower carbon-intensity of energy, and – more broadly – a more carbon-lean economy. The only approach to doing this on a meaningful scale that would be technically feasible and cost-effective is carbon pricing, that is, market-based climate policies that place a shadow-price on carbon dioxide emissions. We examine alternative designs of three such instruments – carbon taxes, cap-and-trade, and clean energy...
Tipo: Working Paper Palavras-chave: Global Climate Change; Market-Based Instruments; Carbon Pricing; Carbon Taxes; Cap-And-Trade; Clean Energy Standards; Environmental Economics and Policy; Q540; Q580; Q400; Q480.
Ano: 2011 URL: http://purl.umn.edu/119095
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Renewable Energy Subsidies: Second-Best Policy or Fatal Aberration for Mitigation? AgEcon
Kalkuhl, Matthias; Edenhofer, Ottmar; Lessmann, Kai.
This paper evaluates the consequences of renewable energy policies on welfare, resource rents and energy costs in a world where carbon pricing is imperfect and the regulator seeks to limit emissions to a (cumulative) target. We use a global general equilibrium model with an intertemporal fossil resource sector. We calculate the optimal second-best renewable energy subsidy and compare the resulting welfare level with an efficient first-best carbon pricing policy. If carbon pricing is permanently missing, mitigation costs increase by a multiple (compared to the optimal carbon pricing policy) for a wide range of parameters describing extraction costs, renewable energy costs, substitution possibilities and normative attitudes. Furthermore, we show that small...
Tipo: Working or Discussion Paper Palavras-chave: Feed-in-Tariff; Carbon Trust; Carbon Pricing; Supply-Side Dynamics; Green Paradox; Climate Policy; Resource /Energy Economics and Policy; Q4; Q52; Q54; Q58; D58; H21.
Ano: 2011 URL: http://purl.umn.edu/108261
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Price Floors for Emissions Trading AgEcon
Wood, Peter John; Jotzo, Frank.
Price floors in greenhouse gas emissions trading schemes can have advantages for technological innovation, price volatility, and management of cost uncertainty, but implementation has potential pitfalls. We argue that the best mechanism for implementing a price floor is to have firms pay an extra fee or tax. This has budgetary advantages and is more compatible with international permit trading than alternative approaches that dominate the academic and policy debate. The fee approach can also be used to implement more general hybrid approaches to emissions pricing.
Tipo: Working or Discussion Paper Palavras-chave: Price Floor; Price Ceiling; Carbon Tax; Emissions Trading; Carbon Pricing; Price and Quantity Controls; Waxman-Markey Bill; Environmental Economics and Policy; Q58.
Ano: 2009 URL: http://purl.umn.edu/56211
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The Promise and Problems of Pricing Carbon: Theory and Experience AgEcon
Aldy, Joseph E.; Stavins, Robert N..
Because of the global commons nature of climate change, international cooperation among nations will likely be necessary for meaningful action at the global level. At the same time, it will inevitably be up to the actions of sovereign nations to put in place policies that bring about meaningful reductions in the emissions of greenhouse gases. Due to the ubiquity and diversity of emissions of greenhouse gases in most economies, as well as the variation in abatement costs among individual sources, conventional environmental policy approaches, such as uniform technology and performance standards, are unlikely to be sufficient to the task. Therefore, attention has increasingly turned to market-based instruments in the form of carbon-pricing mechanisms. We...
Tipo: Working Paper Palavras-chave: Global Climate Change; Market-Based Instruments; Carbon Pricing; Carbon Taxes; Cap-and-Trade; Emission Reduction Credits; Energy Subsidies; Clean Energy Standards; Environmental Economics and Policy; Q540; Q580; Q400; Q480.
Ano: 2011 URL: http://purl.umn.edu/119105
Registros recuperados: 4
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