Argument in the Greenhouse: The International Economics of by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith PDF

By Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith

ISBN-10: 0203974182

ISBN-13: 9780203974186

ISBN-10: 0415149088

ISBN-13: 9780415149082

Masking either the constructing and constructed global, this booklet identifies very important new rules to foster powerful agreements in emissions and forestall worldwide warming: practical rules which may still obtain overseas and family help.

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Extra info for Argument in the Greenhouse: The International Economics of Controlling Global Warming

Sample text

Macroeconomic impacts are defined as the effects of reducing fossil energy use on gross economic output, or the productivity of other inputs, such as labour and capital. These macroeconomic impacts will vary depending on the distribu-tion of abatement costs between countries, which in turn are a function of which policy instruments are used to co-ordinate action. An internationally set, but domestically collected and recycled tax (with no side payments between countries) results in no fiscal loss to an economy.

As long as international obligations to reduce CO2 emissions are limited to a few countries the problems of carbon leakage through energy market responses and industrial relocation will remain an obstacle to successful environmental protection. The evolution of the FCCC into a globally inclusive treaty is therefore imperative, and must be coordinated with future increases in fuel use in currently uncommitted countries. EFFICIENCY The FCCC currently contains references to achieving its aims in a ‘cost effective’ manner, but this falls short of stipulating strict economic efficiency where the costs and benefits of mitigating anthropogenic climate change would be weighed against each other.

The inclusion of recycling benefits into the total cost calculations means that the initial distribution of permits may affect the total cost of reaching the emissions target, and thus the overall efficiency of the permit mechanism. This result is in contrast to that of the partial Argument in the greenhouse 30 equilibrium analysis, where allocation of permits only affects the distribution of costs and benefits, and not the overall efficiency of the agreement. Using public revenue to buy permits on the open market incurs extra costs, due to either the distortions that taxation places on the economy (lump sum taxes are not available) or the opportunity cost of not using the revenue raised from non-distortionary energy taxes to reduce other taxes in the economy.

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Argument in the Greenhouse: The International Economics of Controlling Global Warming by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith


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