{"title":"Let's Talk About the Weather: The Impact of Climate Change on Central Banks","authors":"S. Batten, R. Sowerbutts, Misa Tanaka","doi":"10.2139/ssrn.2783753","DOIUrl":"https://doi.org/10.2139/ssrn.2783753","url":null,"abstract":"This paper examines the channels via which climate change and policies to mitigate it could affect a central bank’s ability to meet its monetary and financial stability objectives. We argue that two types of risks are particularly relevant for central banks. First, a weather-related natural disaster could trigger financial and macroeconomic instability if it severely damages the balance sheets of households, corporates, banks, and insurers (physical risks). Second, a sudden, unexpected tightening of carbon emission policies could lead to a disorderly re-pricing of carbon-intensive assets and a negative supply shock (transition risks). Climate-related disclosure could facilitate an orderly transition to a low-carbon economy if it helps a wide range of investors better assess their financial risk exposures.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127204814","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Comparison of Alternative Pricing Scheme for Reducing Worldwide Carbon Emissions","authors":"Tarek Atalla, Simona Bigerna, C. Bollino","doi":"10.2139/ssrn.2765958","DOIUrl":"https://doi.org/10.2139/ssrn.2765958","url":null,"abstract":"In this paper, we derive several alternative pricing schemes to allocate worldwide taxation burden to reduce carbon emissions. We compare traditional allocation schemes with an optimal Ramsey pricing by applying the outcome of modeling heterogeneous consumer behavior across countries. Using empirical estimations of household behavior, we compute demand elasticity values for the 106 leading countries in the world, which constitute around 90% of total world energy consumption and carbon emissions for 2014. We calculate country-specific shares of the global cost of carbon emissions reduction, comparing alternative taxation options: a uniform tax scheme, an equitable tax scheme and a Ramsey pricing scheme, applied to the household sector of all countries worldwide. Our results show the relative welfare impact of different options, revealing that the optimal pricing scheme can improve world welfare and promote a reduction in total emissions.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131808547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Climate Policy with the Chequebook – An Economic Analysis of Climate Investment Support","authors":"K. Kempa, U. Moslener","doi":"10.2139/ssrn.2788077","DOIUrl":"https://doi.org/10.2139/ssrn.2788077","url":null,"abstract":"Across the globe climate policy is shifting away from a carbon price towards investment subsidies, such as grants, interest-subsidised loans or guarantees. This increases the risk of inefficient public spending. This paper shows how the main market imperfections related to the emission externality, knowledge spillovers and capital market imperfections negatively affect the risk-return-profile of a climate investment. To some extent these negative impacts can be compensated through different forms of investment subsidies. Minimising the risk of inefficient public spending is, however, challenging and requires detailed understanding of technologies and markets at the project level. The analysis provides guidance for the design of appropriate investment subsidy schemes. Carbon prices and investment subsidies are not perfect substitutes, and - at least for developed economies - a carbon price remains the single most efficient instrument. This price should, however, coexist with other instruments, e.g. investment support schemes, which can be tailored to address the non-emission market imperfections related to climate change.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"77 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129698990","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Solar PV Planning Toward Sustainable Development in Chile: Challenges and Recommendations","authors":"Shahriyar Nasirov, C. Silva, Claudio A. Agostini","doi":"10.2139/ssrn.2761591","DOIUrl":"https://doi.org/10.2139/ssrn.2761591","url":null,"abstract":"In the last decade, the importance of solar energy sources in Chile has increased significantly as energy dependence raises and concerns regarding climate change grow, posing an important threat to its economy. The Chilean government recognises that exploiting its abundant potential of solar energy could be an important opportunity to address stable economic growth, energy security, and fulfil environmental goals. Recent developments toward sustainable solar PV planning have accelerated the growth process and investment opportunities in the field. However, to date, numerous policy challenges still exist. This paper studies solar PV planning in Chile, pointing on recent developments and remaining challenges. It also gives important recommendations for effectively addressing these challenges.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"86 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116734411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Equity Implications of the COP21 Intended Nationally Determined Contributions to Reduce Greenhouse Gas Emissions","authors":"A. Rose, D. Wei, A. Bento","doi":"10.2139/ssrn.2736592","DOIUrl":"https://doi.org/10.2139/ssrn.2736592","url":null,"abstract":"This chapter examines the equity implications of the “bottom-up” approach to climate change negotiations by analyzing the individual country unconditional greenhouse gas reduction pledges specified in the COP21 Agreement of 2015. It compares the implications before and after emissions trading in terms of the standard equity metrics of the Gini coefficient and Atkinson index for three major countries/regions: the European Union, China, and California. The chapter adapts a nonlinear programming model well suited to this purpose that determines the equilibrium emissions allowance price, mitigation costs, and allowance purchases and sales from trading. It also tests the sensitivity of the results to macroeconomic conditions and technological change. The findings are that the pledges made at COP21 reflect substantial inequality in general and run counter to most equity principles. They are definitely a major departure from the Egalitarian, Vertical, and Rawlsian equity principles proposed for many years by developing countries.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"105 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124097962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Marginal Reductions in Vehicle Emissions Under a Dual-Blend Ethanol Mandate: Evidence from a Natural Experiment","authors":"M. Noel, T. Roach","doi":"10.2139/ssrn.3660012","DOIUrl":"https://doi.org/10.2139/ssrn.3660012","url":null,"abstract":"Among the many reasons policy makers across the world have sought to supplement fuel supplies with ethanol-blended fuels are the cited environmental benefits that come with replacing a fossil-fuel with a cleaner burning alternative. Dual-blend ethanol mandates, in which multiple ethanol blends are simultaneously available, are one way policy markers can move forward with more aggressive mandates more quickly. The recent ethanol mandate in the state of New South Wales, Australia offers a unique natural experiment to quantify the potential environmental benefits and costs of a dual blend ethanol policy. This paper estimates the impact on carbon dioxide (CO2) emissions from road-activity that are attributable to the implementation of the New South Wales ethanol requirements. We find that there was a decrease in emissions due to the policy, but that the decrease is relatively minor given the size of the market and that it comes at a high cost. The cost was over $1200 per ton of carbon to reduce gasoline emissions by just 1.2%.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121859642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Thomas R. Covert, M. Greenstone, Christopher R. Knittel
{"title":"Will We Ever Stop Using Fossil Fuels?","authors":"Thomas R. Covert, M. Greenstone, Christopher R. Knittel","doi":"10.2139/ssrn.2720633","DOIUrl":"https://doi.org/10.2139/ssrn.2720633","url":null,"abstract":"Scientists believe significant climate change is unavoidable without a drastic reduction in the emissions of greenhouse gases from the combustion of fossil fuels. However, few countries have implemented comprehensive policies that price this externality or devote serious resources to developing low-carbon energy sources. In many respects, the world is betting that we will greatly reduce the use of fossil fuels because we will run out of inexpensive fossil fuels (there will be decreases in supply) and/or technological advances will lead to the discovery of less-expensive low-carbon technologies (there will be decreases in demand). The historical record indicates that the supply of fossil fuels has consistently increased over time and that their relative price advantage over low-carbon energy sources has not declined substantially over time. Without robust efforts to correct the market failures around greenhouse gases, relying on supply and/or demand forces to limit greenhouse gas emissions is relying heavily on hope.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131172709","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Investigating the Carbon Leakage Effect on the Environmental Kuznets Curve Using Luminosity Data","authors":"Arne Steinkraus","doi":"10.2139/ssrn.2723070","DOIUrl":"https://doi.org/10.2139/ssrn.2723070","url":null,"abstract":"This paper studies the effect of carbon leakage on the environmental Kuznets curve (EKC) using satellite nighttime light data. I show that nighttime lighting is an important variable for estimating carbon dioxide emissions that is superior to other existing indicators and covers all countries in the world. I find evidence of an inverted-U shaped relationship between light and, thus, greenhouse gas emissions and income, with a turning point at approximately US $50,000. However, the relationship is primarily driven by changes in the structure of international trade, implying strong carbon leakage effects. Consequently, environmental regulations that become operative in only one part of the world may fail without global coordination.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123701793","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Investment Optimization Model for the Firms Pursuing Energy Saving and Carbon Emission Reduction Technology","authors":"Yang Liu, Wei‐han Liu, Yuan Zhou","doi":"10.2139/ssrn.2694542","DOIUrl":"https://doi.org/10.2139/ssrn.2694542","url":null,"abstract":"This paper employs real option analysis to evaluate the investment project to adopt energy saving and carbon emission reduction technology. Sensitivity analysis and simulation outcomes highlight the respective roles of carbon price level and government support in the investment decision. That is, government support lies in two major directions to encourage the adoption of carbon emission reduction technology: to increase the subsidy to lower the cost for the firm and encourage adoption of the green technology, and to increase the risk-free return rate. The candidate measures to lower the investment threshold lie three major directions: stabilizing energy price, lowering operation cost, and increasing risk-free return rate. In addition, market expectation and its interactions among the key variables play their significant roles in the optimization process.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124790782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Remaking Energy: The Critical Role of Energy Consumption Data","authors":"Alexandra B. Klass, E. Wilson","doi":"10.15779/Z38B55F","DOIUrl":"https://doi.org/10.15779/Z38B55F","url":null,"abstract":"This Article explores the public policy benefits associated with increased access to energy consumption data as well as the legal and institutional barriers that currently prevent such access. As state and local governments as well as electricity users attempt to improve the efficiency of their buildings, reduce greenhouse gas emissions, and realize the promises of improved demand side management of energy resources, the need for electricity and other energy-related data becomes even more pressing. But the current law that balances making energy consumption data available against any privacy or confidentiality interests in the data is underdeveloped. Thus, this Article draws on more sophisticated legal frameworks governing health care, education, and environmental emissions data that balances the public policy needs for data evaluation with countervailing interests. A review of the law in these fields shows that the privacy and confidentiality interests in energy consumption data may be overstated and, in any event, can be adequately addressed in most instances through aggregating the data, using historic rather than current data, or through contracts and other agreements to ensure security where access to individualize data is needed.","PeriodicalId":135089,"journal":{"name":"SRPN: Carbon Reduction (Topic)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126806667","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}