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Registros recuperados: 37
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A Numerical Analysis of Optimal Extraction and Trade of Oil under Climate Policy AgEcon
Massetti, Emanuele; Sferra, Fabio.
We introduce endogenous investments for increasing conventional and non-conventional oil extraction capacity in the integrated assessment model WITCH. The international price of oil emerges as the Nash equilibrium of a non-cooperative game. When carbon emissions are not constrained, oil is used throughout the century, with unconventional oil taking over conventional oil from mid-century onward. When carbon emissions are constrained, oil consumption drops dramatically and the oil price is lower than in the BaU. Unconventional oil is not extracted. Regional imbalances in the distribution of stabilisation costs are magnified and the oil-exporting countries bear, on average, costs three times larger than in previous estimates.
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Integrated Assessment; Oil Production; Oil Revenues; Oil Trade; Resource /Energy Economics and Policy; E17; F17; Q32; Q43; Q54.
Ano: 2010 URL: http://purl.umn.edu/96495
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Abatement and Allocation in the Pilot Phase of the EU ETS AgEcon
Anderson, Barry; Di Maria, Corrado; Convery, Frank J..
We use historical industrial emissions data to assess the level of abatement and overallocation that took place across European countries during the pilot phase (2005-2007)of the European Union Emission Trading Scheme. Using a dynamic panel data model, we estimate the counterfactual (business-as-usual) emissions scenario for EU member states. Comparing this baseline to allocated and verified emissions, we conclude that both overallocation and abatement occurred, along with under-allocation and emissions inflation. Over the three trading years of the pilot phase we find over-allocation of approximately 376 million EUAs (6%) and total abatement at the member state level of 107 Mt CO2 (1.8%). However, due to over-allocation and possible uncertainty about...
Tipo: Working or Discussion Paper Palavras-chave: Emissions Trading Scheme; Climate Policy; Dynamic Panel Data Analysis; Environmental Economics and Policy; C23; O13; Q54; Q58.
Ano: 2009 URL: http://purl.umn.edu/55831
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Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders AgEcon
Cacho, Oscar J.; Lipper, Leslie.
Agroforestry projects have the potential to help mitigate global warming by acting as sinks for greenhouse gasses. However, participation in carbon-sink projects may be constrained by high costs. This problem may be particularly severe for projects involving smallholders in developing countries. Of particular concern are the transaction costs incurred in developing projects, measuring, certifying and selling the carbon-sequestration services generated by such projects. This paper addresses these issues by analysing the implications of transaction and abatement costs in carbon-sequestration projects. A model of project participation is developed, which accounts for the conditions under which both buyers and sellers would be willing to engage in a carbon...
Tipo: Working or Discussion Paper Palavras-chave: Agroforestry; Climate Policy; Carbon Sequestration Costs; Environmental Economics and Policy; Q23; Q57; O1; O13.
Ano: 2007 URL: http://purl.umn.edu/9324
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Abatement Cost Uncertainty and Policy Instrument Selection under a Stringent Climate Policy. A Dynamic Analysis AgEcon
Bosetti, Valentina; Golub, Alexander; Markandya, Anil; Massetti, Emanuele; Tavoni, Massimo.
This paper investigates the relative economic and environmental outcomes of price versus quantity mechanisms to control GHG emissions when abatement costs are uncertain. In particular, we evaluate the impacts on policy costs, CO2 emissions and energy R&D for a stringent mitigation target of 550 ppmv CO2 equivalent (i.e. 450 for CO2 only) concentrations. The analysis is performed in an optimal growth framework via Monte Carlo simulations of the integrated assessment model WITCH (World Induced Technical Change Hybrid). Results indicate that the price instrument stochastically dominates the quantity instrument when a stringent stabilization policy is in place.
Tipo: Conference Paper or Presentation Palavras-chave: Abatement Costs; Climate Policy; Environmental Economics and Policy; H2; C6; Q5.
Ano: 2008 URL: http://purl.umn.edu/6383
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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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Alternative Paths toward a Low Carbon World AgEcon
Bosetti, Valentina; Carraro, Carlo; Tavoni, Massimo.
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Stabilization Costs; Environmental Economics and Policy; C72; H23; Q25; Q28.
Ano: 2010 URL: http://purl.umn.edu/90948
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Beyond Copenhagen: A Realistic Climate Policy in a Fragmented World AgEcon
Carraro, Carlo; Massetti, Emanuele.
We propose a realistic approach to climate policy based on the Copenhagen Agreement to reduce Greenhouse Gases (GHGs) emissions. We assess by how much the non-binding, although official, commitments to reduce emissions made in Copenhagen will affect the level of world GHGs emissions in 2020. Our estimates are based on official communications to the UNFCCC, on historic data and on the Business-as-Usual scenario of the WITCH model. We are not interested in estimating the gap between the expected level of emissions and what would be needed to achieve the 2°C target. Nor do we attempt to calculate the 2100 temperature level implied by the Copenhagen pledges. We believe these two exercises are subject to high uncertainty and would not improve the current state...
Tipo: Working or Discussion Paper Palavras-chave: Kyoto Protocol; International Climate Agreements; Climate Policy; Clean Development Mechanism; Environmental Economics and Policy; F5; Q01; Q54; Q58.
Ano: 2010 URL: http://purl.umn.edu/98094
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Carbon Leakage with International Technology Spillovers AgEcon
Gerlagh, Reyer; Kuik, Onno.
In this paper we study the effect of international technology spillovers on carbon leakage. We first develop and analyse two simple competing models for carbon leakage. The first model represents the pollution haven hypothesis. It focuses on the international competition between firms that produce energy-intensive goods. The second model highlights the role of a globally integrated carbon-energy market. We calculate formulas for the leakage rates in both models and, through meta-analysis, show that the second model captures best the major mechanisms reported in the CGE literature on carbon leakage. We extend this model with endogenous energy-saving technology and international technology spillovers. This feature is shown to decrease carbon leakage. We...
Tipo: Working or Discussion Paper Palavras-chave: Carbon-Leakage; Climate Policy; Induced Technological Change; Trade and Environment; Environmental Economics and Policy; F18; O39; Q25; Q4.
Ano: 2007 URL: http://purl.umn.edu/9328
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Carbon markets, transaction costs and bioenergy AgEcon
Cacho, Oscar J..
Payment for carbon sequestration by agriculture and forestry can provide incentives for adoption of sustainable agricultural practices. However, a project involving contracts with farmers may face high transaction costs in showing that net emission reductions are real and attributable to the project. This paper presents a model of project participation that includes transaction and abatement costs. A project feasibility frontier (PFF) is derived, which shows the minimum project size that is feasible for any given market price of carbon. The PFF is used to analyse how the design of a climate mitigation program may affect the feasibility of actual projects.
Tipo: Conference Paper or Presentation Palavras-chave: Climate Policy; Greenhouse Effect; Carbon Sequestration; Agroforestry; Transaction Costs; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6007
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Changing the Allocation Rules in the EU ETS: Impact on Competitiveness and Economic Efficiency AgEcon
Demailly, Damien; Quirion, Philippe.
We assess five proposals for the future of the EU greenhouse gas Emission Trading Scheme (ETS): pure grandfathering allocation of emission allowances (GF), output-based allocation (OB), auctioning (AU), auctioning with border adjustments (AU-BA), and finally output-based allocation in sectors exposed to international competition combined with auctioning in electricity generation (OB-AU). We look at the impact on production, trade, CO2 leakage and welfare. We use a partial equilibrium model of the EU 27 featuring three sectors covered by the EU ETS – cement, steel and electricity – plus the aluminium sector, which is indirectly impacted through a rise in electricity price. The leakage ratio, i.e. the increase in emissions abroad over the decrease in EU...
Tipo: Working or Discussion Paper Palavras-chave: Emission Trading; Allowance Allocation; Leakage; Spillover; Climate Policy; Kyoto Protocol; Border Adjustment; Environmental Economics and Policy; Q5.
Ano: 2008 URL: http://purl.umn.edu/46623
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Climate Change Mitigation Strategies in Fast-Growing Countries: The Benefits of Early Action AgEcon
Bosetti, Valentina; Tavoni, Massimo; Carraro, Carlo.
This paper builds on the assumption that OECD countries are (or will soon be) taking actions to reduce their greenhouse gas emissions. These actions, however, will not be sufficient to control global warming, unless developing countries also get involved in the cooperative effort to reduce GHG emissions. This paper investigates the best short-term strategies that emerging economies can adopt in reacting to OECD countries’ mitigation effort, given the common long-term goal to prevent excessive warming without hampering economic growth. Results indicate that developing countries would incur substantial economic losses by following a myopic strategy that disregards climate in the short-run, and that their optimal investment behaviour is to anticipate the...
Tipo: Working or Discussion Paper Palavras-chave: Energy-economy Modeling; Climate Policy; Developing Countries; Environmental Economics and Policy; Q54; Q55; Q43.
Ano: 2009 URL: http://purl.umn.edu/52541
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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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Coalition Formation and the Ancillary Benefits of Climate Policy AgEcon
Finus, Michael; Rubbelke, Dirk T.G..
Several studies found ancillary benefits of environmental policy to be of considerable size. These additional private benefits imply not only higher cooperative but also noncooperative abatement targets. However, beyond these largely undisputed important quantitative effects, there are qualitative and strategic implications associated with ancillary benefits: climate policy is no longer a pure but an impure public good. In this paper, we investigate these implications in a setting of non-cooperative coalition formation. In particular, we address the following questions. 1) Do ancillary benefits increase participation in international environmental agreements? 2) Do ancillary benefits raise the success of these treaties in welfare terms?
Tipo: Working or Discussion Paper Palavras-chave: Ancillary Benefits; Climate Policy; Coalition Formation; Game Theory; Impure Public Goods; C72; H87; Q54.
Ano: 2008 URL: http://purl.umn.edu/42902
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Combining Climate and Energy Policies: Synergies or Antagonism? Modeling interactions with energy efficiency instruments AgEcon
Lecuyer, Oskar; Bibas, Ruben.
In addition to the already present Climate and Energy package, the European Union (EU) plans to include a binding target to reduce energy consumption. We analyze the rationales the EU invokes to justify such an overlapping and develop a minimal common framework to study interactions arising from the combination of instruments reducing emissions, promoting renewable energy (RE) production and reducing energy demand through energy efficiency (EE) investments. We find that although all instruments tend to reduce emissions and a price on carbon tends to give the right incentives for RE and EE too, the combination of more than one instrument leads to significant antagonisms regarding major objectives of the policy package. The model allows to show in a single...
Tipo: Working Paper Palavras-chave: Renewable Energy; Energy Efficiency; Energy Policy; Climate Policy; Policy Interaction; Resource /Energy Economics and Policy; Q28; Q41; Q48; Q58.
Ano: 2011 URL: http://purl.umn.edu/120049
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Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost? AgEcon
Bosetti, Valentina; Carraro, Carlo; Sgobbi, Alessandra; Tavoni, Massimo.
Despite the growing concern about actual on-going climate change, there is little consensus about the scale and timing of actions needed to stabilise the concentrations of greenhouse gases. Many countries are unwilling to implement effective mitigation strategies, at least in the short-term, and no agreement on an ambitious global stabilisation target has yet been reached. It is thus likely that some, if not all countries, will delay the adoption of effective climate policies. This delay will affect the cost of future policy measures that will be required to abate an even larger amount of emissions. What additional economic cost of mitigation measures will this delay imply? At the same time, the uncertainty surrounding the global stabilisation target to be...
Tipo: Working or Discussion Paper Palavras-chave: Uncertainty; Climate Policy; Stabilisation Costs; Delayed Action; Environmental Economics and Policy; C72; H23; Q25; Q28.
Ano: 2008 URL: http://purl.umn.edu/44219
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Delayed Participation of Developing Countries to Climate Agreements: Should Action in the EU and US be Postponed? AgEcon
Bosetti, Valentina; Carraro, Carlo; Tavoni, Massimo.
This paper analyses the cost implications for climate policy in developed countries if developing countries are unwilling to adopt measures to reduce their own GHG emissions. First, we assume that a 450 CO2 (550 CO2e) ppmv stabilisation target is to be achieved and that Non Annex1 (NA1) countries decide to delay their GHG emission reductions by 30 years. What would be the cost difference between this scenario and a case in which both developed and developing countries start reducing their emissions at the same time? Then, we look at a scenario in which the timing of developing countries’ participation is uncertain and again we compute the costs of climate policy in developed and developing countries. We find that delayed participation of NA1 countries has...
Tipo: Working or Discussion Paper Palavras-chave: Delayed Action; Climate Policy; Stabilisation Costs; Uncertain Participation; Environmental Economics and Policy; C72; H23; Q25; Q28.
Ano: 2008 URL: http://purl.umn.edu/44220
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Effects of the CDM on Poverty Eradication and Global Climate Protection AgEcon
Rubbelke, Dirk T.G.; Rive, Nathan.
In an impure public good model we analyze the effects of CDM transfers on poverty as well as on the global climate protection level. We construct an analytical model of a developing and an industrialized region, both of which independently seek to maximize their utility – a function of private consumption, domestic air quality, and global climate protection. They do so by distributing their finite expenditures across (1) the aggregate consumption good, (2) end-of-pipe pollution control technologies, and (3) greenhouse gas abatement. Based on our analytical findings, we develop two sets of simulations for China in which we vary the rate of the CDM transfer. The simulations differ by the assumption of China’s domestic air quality policy – the first assumes a...
Tipo: Working or Discussion Paper Palavras-chave: Ancillary Benefits; CDM; Climate Policy; Impure Public Goods; Transfers; Abatement Technology; Environmental Economics and Policy; Food Security and Poverty; Q54; H23; H41; O33.
Ano: 2008 URL: http://purl.umn.edu/46650
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Estimated Impacts of New Zealand Agriculture Climate Policy: A Tale of Two Catchments AgEcon
Daigneault, Adam J.; Greenhalgh, Suzie; Samarasinghe, Oshadhi.
Agricultural and forestry greenhouse gas (GHG) emissions are a key feature of New Zealand’s emissions profile, and New Zealand is the only country, to date, to have indicated that agricultural and forestry emissions will be covered under their domestic climate policy – the New Zealand Emissions Trading Scheme (NZETS). Forestry entered the NZETS in 2008 while agricultural emissions are expected to enter in 2015. Coupled with climate policy development is the increasing scrutiny of agricultural impacts on water in New Zealand. Given the multiple forms of environmental regulation facing the agricultural and forestry industries we explore, at the catchment level, the impacts of climate policy on the agricultural and forestry industries, including those on farm...
Tipo: Conference Paper or Presentation Palavras-chave: Agriculture and Forestry Modelling; Land Use; Climate Policy; Greenhouse Gas Emissions; Nutrient Loadings; Environmental Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/115352
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Estimating Co-benefits of Agricultural Climate Policy in New Zealand: A Catchment-Level Analysis AgEcon
Daigneault, Adam J.; Greenhalgh, Suzie; Samarasinghe, Oshadhi; Sinclair, Robyn.
This paper uses an economic catchment model to assess changes in land use, enterprise distribution, greenhouse gas emissions and nutrient loading levels from a series of policies that introduce carbon prices or nutrient reduction caps on land-based production in the Hurunui Catchment in Canterbury, New Zealand. At $20/tCO2e, net revenue for the catchment is reduced by 7% from baseline levels while GHGs are reduced by 3%. At $40/ tCO2e, net revenue is reduced by 15% while GHGs are reduced by 21%. Nitrogen and phosphorous loading levels within the catchment were also reduced when landowners face a carbon price, thus providing other benefits to the environment. Additional scenarios in this paper assess the impacts from developing a large-scale irrigation...
Tipo: Conference Paper or Presentation Palavras-chave: Agriculture and Forestry Modeling; Land Use; Climate Policy; Greenhouse Gas Emissions; Water Quantity; Water Quality; Agricultural and Food Policy; Environmental Economics and Policy; Q23; Q24; Q25; Q54.
Ano: 2011 URL: http://purl.umn.edu/103855
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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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