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Coal --- Electric utilities --- Emissions trading --- Sulfur dioxide --- Prices --- Technological innovations --- United States --- Costs. --- Environmental aspects
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Contrary to what is still often believed, the climate and trade communities have a lot in common: a common problem (a global "public good"), common foes (vested interests using protection for slowing down climate change policies), and common friends (firms delivering goods, services, and equipment that are both cleaner and cheaper). They have thus many reasons to buttress each other. The climate community would enormously benefit from adopting the principle of "national treatment," which would legitimize and discipline the use of carbon border tax adjustment and the principle of "most-favored nation," which would ban carbon tariffs. The main effect of this would be to fuel a dual world economy of clean countries trading between themselves and dirty countries trading between themselves at a great cost for climate change. And the trade community would enormously benefit from a climate community capable of designing instruments that would support the adjustment efforts to be made by carbon-intensive firms much better than instruments such as antidumping or safeguards, which have proved to be ineffective and perverse. That said, implementing these principles will be difficult. The paper focuses on two key problems. First, the way carbon border taxes are defined has a huge impact on the joint outcome from climate change, trade, and development perspectives. Second, the multilateral climate change regime could easily become too complex to be manageable. Focusing on carbon-intensive sectors and building "clusters" of production processes considered as having "like carbon-intensity" are the two main ways for keeping the regime manageable. Developing them in a multilateral framework would make them more transparent and unbiased.
Aluminum --- Carbon --- Carbon emissions --- Carbon policies --- Carbon Policy and Trading --- Carbon tax --- Carbon taxes --- Chemicals --- Climate --- Climate change --- Climate Change Economics --- Climate Change Mitigation and Green House Gases --- Co2 --- Debt Markets --- Domestic carbon --- Emerging Markets --- Emission --- Emission cuts --- Environment --- Finance and Financial Sector Development --- Greenhouse --- Greenhouse gases --- Macroeconomics and Economic Growth --- Precautionary approach --- Private Sector Development --- Renewable energy --- Sulfur --- Sulfur dioxide --- Temperature
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Emission permit trading is a centerpiece of the Kyoto Protocol which allows participating nations to trade and bank greenhouse gas permits under the Framework Convention on Climate Change. When market conditions evolve stochastically, emission trading produces a dynamic problem, in which anticipation about the future economic environment affects current banking decisions. In this paper, the author explores the effect of increased uncertainty over future output prices and input costs on the temporal distribution of emissions. In a dynamic programming setting, a permit price is a convex function of stochastic prices of electricity and fuel. Increased uncertainty about future market conditions increases the expected permit price and causes a risk-neutral firm to reduce ex ante emissions so as to smooth out marginal abatement costs over time. The convexity results from the asymmetric impact of changes in counterfactual emissions on the change of marginal abatement costs. Empirical analysis corroborates the theoretical prediction. The author finds that a 1 percent increase in electricity price volatility measured by the annualized standard deviation of percentage price change is associated with an average decrease in the annual emission rate by 0.88 percent. Numerical simulation suggests that high uncertainty could induce substantially early abatements, as well as large compliance costs, therefore imposing a tradeoff between environmental benefits and economic efficiency. The author discusses policy implications for designing an effective and efficient global carbon market.
Abatement Costs --- Carbon Market --- Carbon Policy and Trading --- Clean Air --- Climate Change --- Climate Change Policy --- Demand For Energy --- Electricity --- Electricity Price --- Emerging Markets --- Emission --- Emission Cap --- Emissions --- Energy --- Energy and Environment --- Energy Production and Transportation --- Environment --- Environment and Energy Efficiency --- Environmental Economics and Policies --- Facilities --- Fuel --- Greenhouse Gas --- Investment --- Macroeconomics and Economic Growth --- Markets and Market Access --- Permit Trading --- Price --- Prices --- Private Sector Development --- Public Sector Development --- Sulfur --- Sulfur Dioxide
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Much of the world's built environment is found in urban areas, and cities are thought to be responsible for up to 70 percent of global greenhouse gas (GHG) emissions, and up to 80 percent of primary energy demand. Most of the energy consumed in the world fuels urban industry, powers urban homes and offices, and moves people within and between cities. This paper is about climate change mitigation in cities, and will primarily look at how local authorities can provide a higher quality of life for their citizens while at the same time achieving higher resource efficiency. It will also look at how climate change mitigation measures could help boost local employment and drive economic growth. The focus will be on buildings (residential, commercial, and office), public services infrastructure (water, sewage, solid waste management, and public lighting), and urban form. Other topics of interest in this respect, such as transport and industrial production will be discussed tangentially in relation to the other topics (e.g. urban form influences and is influenced by transport patterns and strategies).
Acid Rain --- Air Pollution --- Chemicals --- Climate --- Climate Change --- Climate Change Economics --- Climate Change Mitigation and Green House Gases --- Coal --- Electricity --- Emission Reductions --- Emissions --- Employment --- Energy --- Energy Consumption --- Energy Efficiency --- Energy Policy --- Energy Production and Transportation --- Environment --- Environmental Economics & Policies --- Fossil Fuels --- Fuels --- Hot Water --- Incentives --- Landfills --- Macroeconomics and Economic Growth --- Methane --- Natural Gas --- Pharmaceuticals --- Power Plants --- Renewable Energy --- Sulfur Dioxide Emissions --- Temperature --- Transport --- Vehicles --- Wastewater Treatment --- Water
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