The European Union (EU) is actively campaigning for the global regulation of carbon emissions generated by maritime bunker fuels because these emissions are presently barely regulated and are projected to increase significantly in the coming decades. However, since a global regulation has not...

In this paper, we analyze how much the shipping sector could contribute to global CO2 emission reductions from an efficiency point of view. To do this, a marginal abatement cost curve (MACC) for the shipping sector is generated that can be combined with a MACC for conventional CO2 abatement in...

Drawing upon climate change damage functions previously proposed in the literature that we have calibrated to a common level of damages at 2.5 C, we examine the effect upon the social cost of carbon (SCC) of varying the specification of damages in a DICE-like integrated assessment model. In the...

A new version of the PAGE integrated assessment model, PAGE09, is introduced. The most important scientific, impact, emission and adaptation inputs in the latest default version of the model, PAGE09 v1.7 are described. The scientific and economic impact results are presented for a business as...

In 2010, the U.S. government adopted its first consistent estimates of the social cost of carbon (SCC) for government-wide use in regulatory cost-benefit analysis. Here, we examine a number of the limitations of the estimates identified in the U.S. government report and elsewhere and review...

This paper investigates the technical inefficiency, shadow price and substitution elasticity of CO2 emissions of China based on a provincial panel for 2001-2010. Using linear programming to calculate a quadratic parameterized directional output distance function, we show that China’s technical...

A simple model is used to illustrate the effects of a reduction in (marginal) abatement cost in a two country setting. It can be shown that a the country experiencing a cost reduction can actually be worse off. This holds true for a variety of quantity and price based emission policies. The most...

This paper discusses the developments in the markets for CO2 emissions rights since the Kyoto Protocol has been signed. The different emission trading schemes dominated by the ETS of the European Union and the Clean Development mechanism are surveyed. These schemes will need to be incorporated...

Ocean iron fertilization is currently discussed as a potential measure to mitigate climate change by enhancing oceanic CO2 uptake. Its mitigation potential is not yet well explored, and carbon offsets generated through iron fertilization activities could currently not be traded on regulated...

The social cost of carbon - or marginal damage caused by an additional ton of carbon dioxide emissions - has been estimated by a U.S. government working group at $21 in 2010. That calculation, however, omits many of the biggest risks associated with climate change, and downplays the impact of...