The Use of Economic Instruments


Book Description

The Working Group on Environment and Economy of the Nordic Council of Ministers publishes regular reports on the use of economic instruments in Nordic environmental policy. This report is part of that series and has two parts. Part 1 presents an overview of the use of economic instruments in Nordic environmental policy, with a focus on policy changes over the period 2010-2013. Part 2 develops a framework for assessing the political possibilities of reforming environmentally harmful subsidies, and applies this framework to three cases relevant in the Nordic context. The report was prepared by Copenhagen Economics, GreenStream Network and Environice. The authors of the report are Hrafnhildur Bragadóttir, Carl von Utfall Danielsson, Roland Magnusson, Sampo Seppänen, Amanda Stefansdotter and David Sundén.




Climate Intervention


Book Description

The signals are everywhere that our planet is experiencing significant climate change. It is clear that we need to reduce the emissions of carbon dioxide and other greenhouse gases from our atmosphere if we want to avoid greatly increased risk of damage from climate change. Aggressively pursuing a program of emissions abatement or mitigation will show results over a timescale of many decades. How do we actively remove carbon dioxide from the atmosphere to make a bigger difference more quickly? As one of a two-book report, this volume of Climate Intervention discusses CDR, the carbon dioxide removal of greenhouse gas emissions from the atmosphere and sequestration of it in perpetuity. Climate Intervention: Carbon Dioxide Removal and Reliable Sequestration introduces possible CDR approaches and then discusses them in depth. Land management practices, such as low-till agriculture, reforestation and afforestation, ocean iron fertilization, and land-and-ocean-based accelerated weathering, could amplify the rates of processes that are already occurring as part of the natural carbon cycle. Other CDR approaches, such as bioenergy with carbon capture and sequestration, direct air capture and sequestration, and traditional carbon capture and sequestration, seek to capture CO2 from the atmosphere and dispose of it by pumping it underground at high pressure. This book looks at the pros and cons of these options and estimates possible rates of removal and total amounts that might be removed via these methods. With whatever portfolio of technologies the transition is achieved, eliminating the carbon dioxide emissions from the global energy and transportation systems will pose an enormous technical, economic, and social challenge that will likely take decades of concerted effort to achieve. Climate Intervention: Carbon Dioxide Removal and Reliable Sequestration will help to better understand the potential cost and performance of CDR strategies to inform debate and decision making as we work to stabilize and reduce atmospheric concentrations of carbon dioxide.




Global Carbon Pricing


Book Description

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




Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature


Book Description

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.




Finance & Development, December 2019


Book Description

This issue of Finance & Development looks at the economic and financial impact of climate policy choices. It points to concrete solutions that offer growth opportunities, driven by technological innovation, sustainable investment, and a dynamic private sector. The private sector can stop supporting or subsidizing industries and activities that damage the planet and instead invest in sustainable development. Governments can roll out policies to fight climate change and the destruction of nature. The paper highlights that technological change and innovations are central to longer-term efforts to mitigate climate change by developing alternatives to fossil fuels. A new, sustainable financial system is under construction. It is funding the initiatives and innovations of the private sector and amplifying the effectiveness of governments’ climate policies—it could even accelerate the transition to a low-carbon economy. The Bank of England’s latest survey finds that almost three-quarters of banks are starting to treat the risks from climate change like other financial risks—rather than viewing them simply as a corporate social responsibility. Banks have begun to consider the most immediate physical risks to their business models—from the exposure of mortgage books to flood risk to the impact of extreme weather events on sovereign risk.




Economic Instruments for Environmental Management


Book Description

This volume presents the results of a three-year collaborative effort involving research institutions in Africa, Asia, Europe and Latin America. Case studies demonstrate the diversity of environmental problems to which a variety of economic instruments can be applied - air and water pollution, packaging, deforestation, over-grazing, wildlife. They also show what is needed for them to work successfully and the pitfalls to avoid in introducing them, providing guidance for future applications. Written to be accessible to non-economists, the book offers source material for students and academic economists, as well as for professionals working with economic instruments.







Carbon Management


Book Description

Considerable international concerns exist about global climate change and its relationship to the growing use of fossil fuels. Carbon dioxide is released by chemical reactions that are employed to extract energy from fuels, and any regulatory policy limiting the amount of CO2 that could be released from sequestered sources or from energy-generating reactions will require substantial involvement of the chemical sciences and technology R&D community. Much of the public debate has been focused on the question of whether global climate change is occurring and, if so, whether it is anthropogenic, but these questions were outside the scope of the workshop, which instead focused on the question of how to respond to a possible national policy of carbon management. Previous discussion of the latter topic has focused on technological, economic, and ecological aspects and on earth science challenges, but the fundamental science has received little attention. This workshop was designed to gather information that could inform the Chemical Sciences Roundtable in its discussions of possible roles that the chemical sciences community might play in identifying and addressing underlying chemical questions.




The Greenhouse Gas Protocol


Book Description

The GHG Protocol Corporate Accounting and Reporting Standard helps companies and other organizations to identify, calculate, and report GHG emissions. It is designed to set the standard for accurate, complete, consistent, relevant and transparent accounting and reporting of GHG emissions.