This paper discusses structure, impact, costs, and efficiency of renewable energy supply in the eight largest advanced economies (the G-7 plus Spain), with focus on Germany. Renewables production costs are compared to benefits, defined as reductions in net carbon emissions; technological...

This paper explores the role of trade instruments in globally efficient climate policies, focusing on the central issue of whether some form of border tax adjustment (BTA) is warranted when carbon prices differ internationally. It shows that tariff policy has a role in easing cross-country...

Purpose – The purpose of this paper is to examine the potential for emissions control policy using the example of the power generation sector in China. Design/methodology/approach – The analytical model is developed using a joint production function, where carbon emissions and electricity...

In 2005, the European Union instituted the first phase of the Kyoto Protocol by implementing a carbon allocation scheme (cap and trade) to reduce greenhouse gas (GHG) emissions. Prior to 2005, the Scandinavian countries had imposed a carbon tax to reduce carbon emissions. In this study, the EU...

This paper presents an overview of recent U.S. fiscal developments and discusses possible implications of the sharp turn around in the government’s fiscal position. Against this back ground, it also reviews key policy challenges that will need to be addressed to cope with the mounting...

This paper examines the relative merits of two dominant economic instruments for reducing pollution—”green” taxes and tradable permits. Theoretically, the two instruments share many similarities, and on balance, neither seems preferable to the other. In practice, however, most countries...

We introduce a computable general equilibrium model for Ireland to investigate the impact of climate policy on the Irish economy, taking special notice of interactions with the existing tax structure. To this end, we extend the model with a detailed representation of the tax system using...

The report is prepared with three main objectives: i/ Review of general information and scientific literature to be shared with members of the scientific committee and with other contributors to the seminar. ii/ Analysis of energy trends and carbon emission patterns, and identification of major...

In a two-period general equilibrium model, I study the effects of intertemporal emission permit trading in a cap-and-trade scheme when firms' investments in abatement have long-term effects. To meet their caps, firms optimally choose levels of trading and investment in each period by equalizing...