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Emission Targets and Coalition Options for a Small, Ambitious Country : An Analysis of Welfare Costs and Distributional Impacts for Norway

Yonezawa, Hidemichi; Fæhn, Taran - 2021

domestic income groups. Our example is the EU 2030 policies and Norway’s linking to it. In spite of theoretical ambiguity, the … findings suggest that the tighter the links with the EU, the lower the abatement costs for Norway. The distributional profile … cap-and-trade system without linking to the EU is the least cost-effective option for Norway but also the most progressive …

Persistent link: https://www.econbiz.de/10013246915

Steering the Climate System : An Extended Comment

Mattauch, Linus - 2019

Lemoine and Rudik (2017) argue that it is efficient to delay reducing carbon emissions, because there is substantial inertia in the climate system. However, this conclusion rests upon misunderstanding the relevant climate physics: there is no substantial lag between CO2 emissions and warming,...

Persistent link: https://www.econbiz.de/10012892116

Advancing Global Carbon Abatement with a Two-Tier Climate Club

Iverson, Terrence - 2022

A two-tier climate club exploits the comparative advantage of large countries to mete out punishments through trade, while taking their capacity to resist punishment as a constraint. Countries outside the coalition price carbon at a fixed fraction of the average carbon price adopted within the...

Persistent link: https://www.econbiz.de/10014081042

The Social Cost of Carbon with Intragenerational Inequality Under Economic Uncertainty

Ploeg, Frederick van der; Emmerling, Johannes; Groom, … - 2022

A formula is derived for the social cost of carbon (SCC) that takes account of intragenerational income inequality and its evolution with economic growth. The social discount rate (SDR) should be adjusted to account for intragenerational and intergenerational inequality aversion and for risk...

Persistent link: https://www.econbiz.de/10014082790

Opimal Unilateral Climate Policy with Carbon Leakage at the Extensive and the Intensive Margin

Kjær Kruse-Andersen, Peter; Birch Sørensen, Peter - 2021

We analyse the optimal design of unilateral climate policy in an open economy where the government is committed to a target for reduction of domestic CO2 emissions but where it is also concerned about carbon leakage. We highlight the importance of distinguishing between leakage at the extensive...

Persistent link: https://www.econbiz.de/10013219063

The Reverse Waterbed Effect of Sector Coupling — Unilateral Climate Policies and Multilateral Emissions Trading

Böhringer, Christoph; Helm, Carsten - 2023

It is widely acknowledged that the transition towards a zero-emissions economy requires electrification of energy-related processes across all sectors of the economy — so-called sector coupling. In our analysis we consider countries whose electricity sectors are regulated by a multilateral...

Persistent link: https://www.econbiz.de/10014358108

The Transition to Carbon Capture and Storage Technologies

Golombek, Rolf; Kverndokk, Snorre; Greaker, Mads; Ma, Lin - 2021

We model the value chain of Carbon Capture, transport and Storage (CCS) by focusing on the decisions taking by actors involved in either capture, transport or storage of CO2. Plants emitting CO2 are located along a Salop circle. If these invest in carbon capture facilities, the captured CO2 is...

Persistent link: https://www.econbiz.de/10013229700

On Differentiated Carbon Prices and Discount Rates

Anthoff, David; Dennig, Francis; Emmerling, Johannes - 2021

The consensus view amongst economists is that carbon prices, in order to be effcient, must be the same across the globe. But when there are inefficiencies in the allocation of capital so that consumers in different countries face different discount rates, we show that efficient carbon prices...

Persistent link: https://www.econbiz.de/10013215895

Asset Pricing and the Carbon Beta of Externalities

Edenhofer, Ottmar; Lessmann, Kai; Tahri, Ibrahim - 2021

Climate policy needs to set incentives for actors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives...

Persistent link: https://www.econbiz.de/10013214337

Endogenous Emission Caps Always Induce a Green Paradox

Gerlagh, Reyer - 2019

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...

Persistent link: https://www.econbiz.de/10012861409