October 27, 2008

Impacts of the European Emissions Trading Scheme on Aluminium.

by Julia Reinaud

- The implementation of the Kyoto Protocol -or other regimes that exclude major players in important industrial activities- creates competitiveness concerns for CO2-intensive products that are traded internationally and face uneven greenhouse gas constraints. This report explores the possible effect of climate policy on the competitiveness of the European primary aluminium sector, a first step towards a more robust method of quantification of this issue.

Reinaud, J. (2008). "Climate Policy and Carbon Leakage: Impacts of the European Emissions Trading Scheme on Aluminium." IEA Information Paper, Oct 2008.

Carbon, Trade Policy, and Carbon Free Trade Areas.

by Yan Dong and John Whalley

- This paper discusses both the potential contribution that trade policy initiatives can make towards the achievement of significant global carbon emissions reduction and the potential impacts of proposals now circulating for carbon reduction motivated geographical trade arrangements, including carbon free trade areas. The authors suggest that trade policy is likely to be a relatively minor consideration in climate change containment.

Dong, Y. and J. Whalley (2008). "Carbon, Trade Policy, and Carbon Free Trade Areas." NBER Working Paper No. 14431, Oct 2008.

Uncertainty, Climate Change and the Global Economy.

by David von Below and Torsten Persson

- The paper illustrates how one may assess our comprehensive uncertainty about the various relations in the entire chain from human activity to climate change. Using a modified version of the RICE model of the global economy and climate, the authors perform Monte Carlo simulations, where full sets of parameters in the model's most important equations are drawn randomly from pre-specified distributions, and present results in the forms of fan charts and histograms.

von Below, D. and T. Persson (2008). "Uncertainty, Climate Change and the Global Economy." NBER Working Paper No. 14426, Oct 2008.

Incomplete Environmental Regulation, Imperfect Competition, and Emissions Leakage.

by Meredith Fowlie

- This paper analyzes emissions leakage in an incompletely regulated and imperfectly competitive industry. When regulated producers are less polluting than their unregulated ounterparts, emissions under incomplete regulation can exceed the level of emissions that would have occurred in the absence of regulation. Converseley, when regulated firms are relatively more polluting, aggregate emissions under complete regulation can exceed aggregate emissions under incomplete regulation. In a straightforward application of the theory of the second best, it is shown that incomplete regulation can welfare dominate complete regulation of emissions from an asymmetric oligopoly.

Fowlie, M. (2008). "Incomplete Environmental Regulation, Imperfect Competition, and Emissions Leakage." NBER Working Paper No. 14421, Oct 2008.

How China's Farmers Adapt to Climate Change.

Jinxia Wang, Robert Mendelsohn, Ariel Dinar and Jikun Huangkun

- This paper uses a cross sectional method to analyze irrigation choice and crop choice across 8,405 farmers in 28 provinces in China. The analysis of how Chinese farmers have adapted to current climate, provides insight into how they will likely adapt when climate changes. Future climate scenarios will cause farmers in China to want to reduce irrigation and shift toward oil crops, wheat, and especially cotton. In turn, farmers will shift away from potatoes, rice, vegetables, and soybeans.

Wang, J., R. Mendelsohn, A. Dinar and J. Huangkun (2008). "How China's Farmers Adapt to Climate Change." World Bank WPS4758, Oct 2008.

Technology Diffusion, Abatement Cost and Transboundary Pollution.

by Geoffrey M. Heal and Nori Tarui

- This paper studies countries' incentives to develop pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. At that the Nash equilibrium of a simultaneous move game with R&D investment and emission abatement, whether the free rider effect prevails giving under-investment and excess emissions depends on the degree of spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash equilibrium investment in emission reduction exceeds the first-best case.

Keywords: International environmental agreements, pollution abatement costs, endogenous technological change

Heal, G.M. and N. Tarui (2008). "Technology Diffusion, Abatement Cost and Transboundary Pollution." Available at SSRN, Oct 2008.

Assessing the European Emissions Trading Scheme Effectiveness in Reaching the Kyoto Target: An Analysis of the Cap Stringency.

by Stefano Clò

- The purpose of this article is to contribute with new insight to the widespread debate aimed at assessing the Emissions Trading Scheme (ETS) effectiveness in promoting emissions reduction. A theoretical benchmark consistent with the Polluter Pays Principle is determined to assess the ETS cap stringency and to evaluate if emissions tradable permits have been over-allocated by national and European authorities. This assessment clarifies how the emissions reduction burden deriving from the Kyoto Protocol ratification has been divided between ETS and non-ETS sectors.

Clò, S. (2008). "Assessing the European Emissions Trading Scheme Effectiveness in Reaching the Kyoto Target: An Analysis of the Cap Stringency." Rotterdam Institute of Law and Economics (RILE) Working Paper Series No. 2008/14.

An Elaborated Proposal for Global Climate Policy Architecture: Specific Formulas and Emission Targets for All Countries in All Decades.

by Jeffrey Frenkel

- This paper offers a detailed plan to set quantitative national limits on emissions of greenhouse gases, building on the foundation of the Kyoto Protocol. It attempts to fill in the most serious gaps: the absence of targets extending as far as 2100, the absence of participation by the United States and developing countries, and the absence of reason to think that countries will abide by commitments. The plan elaborates on the idea of a framework of formulas that can assign quantitative limits across countries, one budget period at a time. Unlike other proposals for century-long paths of emission targets that are based purely on science (concentration goals) or economics (cost-benefit optimization), this plan is based partly on politics.

Frankel, Jeffrey. "An Elaborated Proposal for Global Climate Policy Architecture: Specific Formulas and Emission Targets for All Countries in All Decades." Discussion Paper 08-08, Cambridge, Mass.: Harvard Project on International Climate Agreements, October 2008.

Sharing the Burden of GHG Reductions.

by Henry D. Jacoby, Mustafa H. Babiker, Sergey Paltsev and John M. Reilly

- To help inform international negotiations of measures to achieve these goals the authors develop a technique for endogenously estimating the allowance allocations and associated financial transfers necessary to achieve predetermined distributional outcomes and apply it in the MIT Emissions Prediction and Policy Analysis (EPPA) model. Possible burden sharing agreements are represented by different allowance allocations (and resulting financial flows) in a global cap-and-trade system.

Jacoby, Henry D., Mustafa H. Babiker, Sergey Paltsev, and John M. Reilly. "Sharing the Burden of GHG Reductions." Discussion Paper 08-09, Cambridge, Mass.: Harvard Project on International Climate Agreements, Oct 2008.

The Likelihood of Holding Outdoor Skating Marathons in the Netherlands as a Policy-relevant Indicator of Climate Change.

by H Visser and A C Petersen

- While in 1950 the chances of realising an ‘Elfstedentocht’ (Frisian Eleven-City Ice-Skating Marathon) were once every 4 years, scientists expect an Elfstedentocht once every 18 years for the present. A seemingly odd indicator of climate change, the chance of organizing large-scale outdoor ice-skating marathons, can play a role in the public and political debate on climate change. Outdoor skating has a very strong public appeal in the Netherlands, and the diminishing chances of holding such events provide an additional Dutch motive for introducing climatepolicy measures.

Visser, H. and A.C. Petersen (2008). "The Likelihood of Holding Outdoor Skating Marathons in the Netherlands as a Policy-relevant Indicator of Climate Change." Netherlands Environmental Assessment Agency, Oct 2008.

Analysis of Climate-Induced Innovation in Rice Based Cropping System of Nepal.

by Netra B Chhetri

- Using Nepals district level time-series data (1991/92 and 2002/03), this research examines the extent to which technological innovations have provided farmers with options to substitute for climatic constraints in order to enhance rice productivity in climatically diverse regions of the country.

Chhetri, N.B. (2008). "Analysis of Climate-Induced Innovation in Rice Based Cropping System of Nepal." IIASA Interim Report IR-08-028, Oct 2008.

IMAGE and MESSAGE Scenarios Limiting GHG Concentration to Low Levels.

by Shilpa Rao et al

- This report discusses the attainability of low greenhouse gas concentrations levels based on an analysis using two integrated assessment models (MESSAGE and IMAGE). Model runs were preformed which explored the feasibility of reaching radiative forcing levels in 2100 between 2.6 to 2.9 W/m2 above pre-industrial levels. Such low targets are necessary to limit global mean temperature increase to below 2°C compared to pre-industrial levels with high probability.

Rao, S., K. Riahi, E. Stehfest, D. van Vuuren, C. Cho, M. den Elzen, M. Isaac and J. van Vliet (2008). "IMAGE and MESSAGE Scenarios Limiting GHG Concentration to Low Levels." IIASA Interim Report IR-08-020, Oct 2008.

The Direct Impact of Climate Change on Regional Labour Productivity.

by Tord Kjellstrom, Sari R. Kovats, Simon J. Lloyd, Tom Holt and Richard S.J. Tol

- Global climate change will increase outdoor and indoor heat loads, and may impair health and productivity for millions of working people. This study applies physiological evidence about effects of heat, climate guidelines for safe work environments, climate modelling and global distributions of working populations, to estimate the impact of two climate scenarios on future labour productivity. In most regions, climate change will decrease labour productivity, under the simple assumption of no specific adaptation.

Kjellstrom, T., S.E. Kovats, S.J. Lloyd, T. Holt and R.S.J. Tol (2008). "The Direct Impact of Climate Change on Regional Labour Productivity." ESRI Working Paper 260, Oct 2008.

Globalisation of Natural Gas Markets: Effects on Prices and Trade Patterns.

by Finn Roar Aune, Knut Einar Rosendahl and Eirik Lund Sagen

- This paper examines various scenarios for a future global gas market, particularly focusing on natural gas prices and trade patterns. We use a numerical model of the international energy markets, with detailed modelling of regional gas production and international gas transport. Scenarios with different assumptions about future demand and supply conditions are simulated. Results suggest that trade between continents will grow considerably over the next couple of decades, and that prices in the main import regions will remain around current levels.

Aune, F.R., K.E. Rosendahl and E.L. Sagen (2008). "Globalisation of Natural Gas Markets: Effects on Prices and Trade Patterns." Discussion Papers No. 559, Oct 2008.

October 20, 2008

Greenhouse Gas Emission Trends and Projections in Europe 2008.

by the European Environmental Agency

- This report presents an assessment of the current and projected progress of EU Member States, EU candidate countries and other EEA member countries towards their respective targets under the Kyoto Protocol and of progress towards the EU target for 2020. This is based on their past greenhouse gas emissions between 1990 and 2006, and the projected greenhouse gas emissions of these countries during the Kyoto commitment period 2008-2012 and for 2020, derived from data and related information they provided before 1 June 2008.

EEA (2008). "Greenhouse Gas Emission Trends and Projections in Europe 2008." EEA Report No 5/2008, Oct 2008.

World Economic Dynamics and Technological Change: Projecting Interactions Between Economic Output and CO2 Emissions.

by S. Serban Scrieciu, Terry Barker and L. Vanessa Smith

- This paper investigates historical dynamics of the world economic system, it projects likely long-term changes in the structure of economic output across economies, and assess co-movements between economic activities and greenhouse gas emissions, with an emphasis on the role of endogenous technological change. This is mostly a methodological paper with innovative large-scale econometric modelling techniques with dynamic structures being brought to the fore.

Scrieciu, S.S., T. Barker and L.V. Smith (2008). "World Economic Dynamics and Technological Change: Projecting Interactions Between Economic Output and CO2 Emissions." Tyndall Centre Working Paper 124, Oct 2008.

Governing Climate Change Post-2012: The Role of Global Cities - London.

by Harriet Bulkeley and Heike Schroeder

- This working paper contributes to the research of the Tyndall Centre programme by focusing on a group of non nation-state actors - global cities - and their role in climate governance. Cities are a critical source of man-made carbon dioxide emissions - accounting for as much as 78% by some accounts (Stern 2006) - and places where vulnerability to climate change may be acute. The project includes four case-studies: London, Los Angeles, Mexico City and Melbourne. This working paper documents the experience of London.

Bulkeley, H. and H. Schroeder (2008). "Governing Climate Change Post-2012: The Role of Global Cities - London." Tyndall Centre Working Paper 123, Oct 2008.

Consumption, Happiness, and Climate Change.

by Mark A. Cohen and Michael P. Vandenbergh

- This article explores the implications of this literature for understanding the relationship between climate change policies and consumption. The authors identify a number of ways in which accounting for the implications of the new happiness literature could lead to laws and policies that influence consumption in ways that increase the prospects for reducing greenhouse gas emissions in developed and developing countries.

Cohen, M.A. and M.P. Vandenbergh (2008). "Consumption, Happiness, and Climate Change." RFF Discussion Paper 08-39, Oct 2008.

Setting Priorities in Energy Innovation Policy: Lessons for the UK.

by Jim Watson

- This paper analyses the role of governments in supporting the development and deployment of a range of new and existing energy technologies and draws on experience from Europe, the USA and Japan. The paper's starting point is the common assertion that governments should avoid providing targeted support to particular technologies. Instead, they should set general frameworks to encourage more sustainable innovation, for example by creating carbon markets. The paper challenges this argument on a number of grounds.

Watson, J. (2008). "Setting Priorities in Energy Innovation Policy: Lessons for the UK." Discussion Paper, Energy Technology Innovation Policy research group, Belfer Center for Science and International Affairs, Oct 2008.

Disentangling Specific Subsets of Innovations: A Micro-Econometric Analysis of their Determinants.

by Andreas Ziegler

- Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities, certified management systems, and specific management activities referring to environmentally friendly products when the implementation of all innovation types is to be supported.

Ziegler, A. (2008). "Disentangling Specific Subsets of Innovations: A Micro-Econometric Analysis of their Determinants." Swiss Federal Institute of Technology (ETH), Working Paper 08/100, Oct 2008.

Do High Oil Prices Matter? - Evidence on the Mobility Behavior of German Households.

by Manuel Frondel and Colin Vance

- Focusing on travel survey data from Germany, this paper investigates the determinants of automobile travel, with the specific aim of quantifying the effects of fuel prices and fuel economy. Estimates indicate a significant positive association between increased fuel economy and increased driving, and a significantly negative fuel-price elasticity, which ranges between -35% and -41%. Taken together, these results suggest that fuel taxes are likely to be a more effective policy measure in reducing emissions than fuel- efficiency standards.

Frondel, M. and C. Vance (2008). "Do High Oil Prices Matter? - Evidence on the Mobility Behavior of German Households." Ruhr Economic Papers #72, Oct 2008.

Linking the EU Emissions Trading Scheme to JI, CDM and post-2012 International Offsets.

by Joëlle de Sépibus

- The so-called ‘Linking’-Directive adopted in 2004 does not impose any limit on the import of JI/CDM credits under the European Union Emissions Trading Scheme (EU ETS). Fearing a second price collapse of the European Union Allowance, the Commission decided, however, in 2006 to impose strict limits on the use of JI/CDM credits during the second trading period. This paper examines the legal basis of the Commission’s decision and explores further the international and European legal framework within which the current debate on the use of JI/CDM credits and post-2012 international offsets takes place.

de Sépibus, J. (2008). "Linking the EU Emissions Trading Scheme to JI, CDM and post-2012 International Offsets. A legal Analysis and Critique of the EU ETS and the Proposals for its Third Trading Period." NCCR Trade Regulation Working Paper No 2008/18, Oct 2008.

Collusion in Auctions for Emission Permits: An Experimental Analysis.

by Dallas Burtraw, Jacob Goeree, Charles Holt, Erica Myers, Karen L. Palmer and William Shobe

- Environmental markets have several institutional features that provide a new context for the use of auctions and which have not been studied previously. This paper reports on laboratory experiments testing three auction forms: uniform and discriminatory price sealed bid auctions and an ascending clock auction. The authors test the ability of subjects to tacitly or explicitly collude in order to maximize profits.

Burtraw, D., J. Goeree, C. Holt, E. Myers, K.L. Palmer and W. Shobe (2008). "Collusion in Auctions for Emission Permits: An Experimental Analysis." RFF Discussion Paper RFF DP 08-36, Sept 2008.

October 14, 2008

Is Sugar Sweeter at the Pump? The Macroeconomic Impact of Brazil's Alternative Energy Program.

by Marc D. Weidenmier, Joseph H. Davis, Roger Aliaga-Diaz

- Brazil has reduced its share of imported oil more than any other major economy in the world in the last 30 years, from 70 percent in the 1970s to only 10 percent today. Brazil has largely achieved this goal by: (1) increasing domestic oil production and (2) developing one of the world's largest and most competitive sources of renewable energy -- sugarcane ethanol -- that now accounts for 50 percent of Brazil's total gasoline consumption. A counterfactual analysis of economic growth in Brazil from 1980-2008 suggests that GDP is almost 35 percent higher today because of increased domestic oil production and the development of sugarcane ethanol.

Weidenmier, M.D., J.H. Davis and R. Aliaga-Diaz (2008). "Is Sugar Sweeter at the Pump? The Macroeconomic Impact of Brazil's Alternative Energy Program." NBER Working Paper No. 14362, Oct 2008.

Modern Management: Good for the Environment or just Hot Air?

by Nicholas Bloom, Christos Genakos, Ralf Martin and Raffaella Sadun

- In this paper an innovative methodology is used to measure management practices in over 300 manufacturing firms in the UK. This management data is then matched to production and energy usage information for establishments owned by these firms. The authors find that establishments in better managed firms are significantly less energy intensive. They use less energy per unit of output, and also in relation to other factor inputs. This suggests that improving the management practices of manufacturing firms may help to reduce greenhouse gas emissions.

Bloom, N., C. Genakos, R. Martin and R. Sadun (2008). "Modern Management: Good for the Environment or just Hot Air?" NBER Working Paper No. 14394, Oct 2008.

A Quantitative and Comparative Assessment of Architectures for Agreement.

by Valentina Bosetti, Carlo Carraro, Alessandra Sgobbi and Massimo Tavoni

- This paper provides a quantitative comparison of the main architectures for an agreement on climate policy. Possible successors to the Kyoto protocol are assessed according to four criteria: economic efficiency; environmental effectiveness; distributional implications; and their political acceptability which is measured in terms of feasibility and enforceability. The ultimate aim is to derive useful information for designing a future agreement on climate change control.


Bosetti, V., C. Carraro, A. Sgobbi and M. Tavoni (2008). "Modelling Economic Impacts of Alternative International Climate Policy Architectures. A Quantitative and Comparative Assessment of Architectures for Agreement." Feem Working Paper 85.08, Oct 2008.

Auctioning of CO2 Emission Allowances in Phase 3 of the EU Emissions Trading Scheme.

by Eva Benz, Andreas Löschel and Bodo Sturm

- This paper emphasizes the importance of a properly chosen auction design as the significantly higher auction share, compared to the past and current trading phase, is expected to yield a thin secondary market for CO2 allowances. The authors elaborate main criteria that a viable auction design is supposed to fulfil and propose a specific auction design for the third trading phase. The recommended auction is a simultaneous dynamic uniform double auction.

Benz, E., A. Löschel and B. Sturm (2008). "Auctioning of CO2 Emission Allowances in Phase 3 of the EU Emissions Trading Scheme." ZEW Discussion Paper No. 08-081, Oct 2008.

Temperature Increase of 21st Century Mitigation Scenarios.

by D. P. Van Vuuren et al

- Even the most stringent of climate policies will not be able to prevent global warming entirely, according to a new analysis. In addition to efforts to reduce anthropogenic greenhouse gas emissions, D.P. van Vuuren (Netherlands Environmental Assessment Agency) and colleagues assert that societies should also consider strategies for adapting to higher global temperatures.

Van Vuuren, D.P, M. Meinshausen, G.K. Plattner, F. Joos, K.M. Strassmann, S.J. Smith, T.M.L. Wigley, S.C.B. Raper, K. Riahi, F. de la Chesnaye, et al (2008). "Temperature Increase of 21st Century Mitigation Scenarios." Proceeding of the National Academy of Sciences (PNAS), Oct 2008.

Damage Costs of Climate Change through Intensification of Tropical Cyclone Activities: An Application of FUND.

by Daiju Narita, Richard S.J. Tol and David Anthoff

- This paper simulates the direct economic impact of tropical cyclones enhanced by climate change with the integrated assessment model FUND 3.4. The results show that in the base case, the direct economic damage of tropical cyclones ascribed to the effect of climate change amounts to $19 billion globally (almost the same level as the baseline (current) global damage of tropical cyclones) in the year 2100, while the ratio to world GDP is 0.006%. The US and China account for much of the absolute damage, whereas small island states incur the largest damage if evaluated as the share to GDP.

Daiju Narita, Richard S.J. Tol and David Anthoff (2008). "Damage Costs of Climate Change through Intensification of Tropical Cyclone Activities: An Application of FUND." ESRI Working Paper 259, Oct 2008.

A Resource and Technology Assessment of Coal Utilization in India.

by Ananth P. Chikkatur

- This paper reviews coal utilization in India and examines current and emerging coal power technologies with near- and long-term potential for reducing greenhouse gas emissions from coal power generation.

Chikkatur, A.P. (2008). "A Resource and Technology Assessment of Coal Utilization in India." The Pew Center on Global Climate Change, Oct 2008.

Impacts of Europe's Changing Climate - 2008 Indicator-based Assessment.

by the European Environmental Agency

- The report presents past and projected climate change and impacts in Europe by means of about 40 indicators and identifies sectors and regions most vulnerable with a high need for adaptation. The report covers the following indicator categories: atmosphere and climate, cryosphere, marine biodiversity and ecosystems, water quantity (including river floods and droughts), freshwater quality and biodiversity, terrestrial ecosystems and biodiversity, soil, agriculture and forestry, human health. Furthermore the report shows the need for adaptation actions at EU, national and regional level and the need for enhanced monitoring, data collection and exchange and reducing uncertainties in projections.

European Environmental Agency (2008). "Impacts of Europe's Changing Climate - 2008 Indicator-based Assessment." EEA Report No 4/2008, Oct 2008.

A Clean Development Mechanism (CDM) with Atmospheric Benefits for a Post-2012 Climate Regime.

by Lambert Schneider

- This paper analyses one possible reform to the CDM for a post-2012 climate regime: the introduction of a CDM with "atmospheric benefits", meaning that fewer Certified Emission Reduction Units (CERs) would be issued or used compared to the level of emission reductions achieved through a CDM project. In this way, the CDM would be moved away from a pure offsetting mechanism where one ton of emission reduction achieved through the CDM in a developing country enables an industrialised country to increase its emissions by one ton. If fewer emission reductions are credited than are achieved through the CDM project, the CDM could directly contribute to lowering global GHG emissions, thereby providing additional benefits to the atmosphere.

Schneider, L. (2008). "A Clean Development Mechanism (CDM) with Atmospheric Benefits for a Post-2012 Climate Regime." Öko-Institut Discussion Paper, Sept 2008.

Linkage of Tradable Permit Systems in International Climate Policy Architecture.

by Judson Jaffe and Robert N. Stavins

- Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. This paper examines the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy architecture.

Jaffe, J. and R.N. Stavins (2008). "Linkage of Tradable Permit Systems in International Climate Policy Architecture." Discussion Paper 08-07, Harvard Project on International Climate Agreements, Sept 2008.

October 6, 2008

Designing A Carbon Tax to Reduce U.S. Greenhouse Gas Emissions.

by Gilbert E. Metcalf

- This article describes a revenue and distributionally neutral approach to reducing U.S. greenhouse gas emissions that uses a carbon tax. The revenue from the carbon tax is used to finance an environmental earned income tax credit designed to be distributionally neutral. The credit is linked to earned income and helps offset the regressivity of the carbon tax. The carbon tax reform proposal is also revenue neutral and avoids conflating carbon policy with debates over the appropriate size of the federal budget.

Metcalf, G.E. (2008). "Designing A Carbon Tax to Reduce U.S. Greenhouse Gas Emissions." NBER Working Paper No. 14375, Oct 2008.

International Emission Permit Markets with Refunding.

by Hans Gersbach and Ralph Winkler

- This paper proposes a blueprint for an international emission permit market such as the EU trading scheme. Each country decides on the amount of permits it wants to offer. A fraction of these permits is grandfathered, the remainder is auctioned. Revenues from the auction are collected in a global fund and reimbursed to member countries in fixed proportions. If the share of grandfathered permits is sufficiently small, this mechanism induces approximately socially optimal emission reductions.

Gersbach, H. and R. Winkler (2008). "International Emission Permit Markets with Refunding." Center of Economic Research at ETH Zurich Working Paper 08/97, Oct 2008.

Garnaut Climate Change Review - Final Report.

by Ross Garnaut

The Garnaut Climate Change Review released its Final Report on 30 September 2008. It follows the release of the Draft and Supplementary Draft Reports in June and September 2008, and provides recommendations on the policy options for Australia to most effectively respond to climate change.

To download the full Draft Report [15.5MB] or to download single chapters follow the link to the Garnaut Climate Change Review Web Site.

Towards an Understanding of Tradeoffs between Regional Wealth, Tightness of a Common Environmental Constraint and the Sharing Rules.

by Raouf Boucekkine, Jacek B. Krawczyk and Thomas Vallee

- Consider a country with two regions that have developed differently so that their current levels of energy efficiency differ. Each region's production involves the emission of pollutants, on which a regulator might impose restrictions. This paper proposes a game theoretic model with a coupled constraints equilibrium as a solution to the regulator's problem of avoiding excessive pollution. The regulator can direct the regions to implement the solution by using a political pressure, or compel them to employ it by using the coupled constraints' Lagrange multipliers as taxation coefficients.

Boucekkine, R., J.B. Krawczyk and T. Vallee (2008). "Towards an Understanding of Tradeoffs between Regional Wealth, Tightness of a Common Environmental Constraint and the Sharing Rules." Core Discussion Paper 2008/55, Oct 2008.

Development of a Policy Framework for CO2 Carbon Capture and Storage in the States.

by L. Stephen Melzer

- This paper presents the background and policy issues surrounding development of a commercial market for captured carbon dioxide (CO2), and seeks to foster among policymakers a deeper understanding of 1) both the generation and carbon capture and storage (CCS) technologies involved, as well as their costs; 2) the technical and regulatory barriers to deployment of those technologies, and 3) the opportunities CCS may offer for increased employment and income.

Melzer, L.S. (2008). "Development of a Policy Framework for CO2 Carbon Capture and Storage in the States." The Pew Center on Global Climate Change, Sept 2008.

The Role of CO2 Enhanced Oil Recovery in Ohio's Economy and Energy Future.

by Jack Kleinhenz

- This report analyzes the Ohio-based industries and employment that might play a role in an Ohio market for exhaust-stream CO2 due to their participation in the development and construction of CO2 pipelines and/or in injection of CO2 into producing oil wells or into underground geologic formations.

Kleinhenz, J. (2008). "The Role of CO2 Enhanced Oil Recovery in Ohio's Economy and Energy Future." The Pew Center on Global Climate Change, Sept 2008.

Technologies as Agents of Change: A Simulation Model of the Evolving Complexity of the Global Energy System.

by Tieju Ma, Arnulf Grubler, Nebojsa Nakicenovic and W. Brian Arthur

- By technological complexity the authors understand a system that is characterized by a large number of constituent components that portray a high degree of interdependence. This paper presents an agent-based simulation model that emulates the evolution of technological complexification in a stylized model of the global energy system.

Tieju Ma, Arnulf Grubler, Nebojsa Nakicenovic and W. Brian Arthur (2008). "Technologies as Agents of Change: A Simulation Model of the Evolving Complexity of the Global Energy System." IIASA Interim Report IR-08-021, Sept 2008.

Adaptation to Climate Change in the European Union: Efficiency vs. Equity Considerations.

by Stine Aakre and Dirk T.G. Rübbelke

- The European Commission recently stated in its Green Paper on adaptation in Europe that there is still a need to develop an overall EU adaptation strategy. Such a strategy should take into consideration both efficiency and equity concerns. In this article the authors propose a framework for EU adaptation policy that addresses both concerns and which enables a transparent decision-making process.

Aakre, S. and D.T.G. Rübbelke (2008). "Adaptation to Climate Change in the European Union: Efficiency vs. Equity Considerations." CEPS Working Documents no 301, Sept 2008.

Industrialized-Country Mitigation Policy and Resource Transfers to Developing Countries: Improving and Expanding Greenhouse Gas Offsets.

by Andrew G. Keeler and Alexander Thompson

- The role of developing country commitments and actions to mitigate greenhouse gas emissions is central to worldwide progress in reducing the risks of anthropogenic climate change. Industrialized-country governments and publics are increasingly concerned that their emissions reduction commitments are unrequited by action in some of the world's largest emitters, especially India and China. Developing countries respond by pointing to the historical responsibility of the global North and stressing their desire to avoid measures that could undermine economic development. This paper offers a proposal for partially resolving this impasse by enhancing existing mechanisms for greenhouse gas offsets, which allow rich countries to finance developing country actions and thereby transfer resources to poorer ones.

Keeler, A.G. and A. Thompson (2008). "Industrialized-Country Mitigation Policy and Resource Transfers to Developing Countries: Improving and Expanding Greenhouse Gas Offsets." Discussion Paper 08-05, Harvard Project on International Climate Agreements, Sept 2008.

Financial Impacts of Climate Change: An Overview of Climate Change-related Actions in the European Commission’s Development Cooperation.

by Arno Behrens

- This paper analyses the variety of different external aid initiatives and financing mechanisms of the European Commission addressing climate change and development objectives, such as those stemming from the 2004 EU Action Plan on Climate Change and Development, from the Global Climate Change Alliance (GCCA) and those under the Thematic Programme for Environment and Sustainable Management of Natural Resources (ENRTP).

Behrens, A. (2008). "Financial Impacts of Climate Change: An Overview of Climate Change-related Actions in the European Commission’s Development Cooperation." CEPS Working Documents no 305, Sept 2008.

Governing Climate Change Post-2012: The Role of Global Cities Case-Study: Los Angeles.

by Heike Schroeder and Harriet Bulkeley

- In May 2007 Los Angeles adopted an Action Plan to Lead the Nation In Fighting Global Warming. The plan includes a CO2 emissions reduction target of 35 percent by 2030 of 1990 levels. The approach Los Angeles is taking is one of simultaneously addressing future energy and water security by investing in decentralised renewable energy and decreasing per-capita water use. Additional areas include waste management, greening of buildings and open space and addressing emissions from the transport sector.

Schroeder, H. and H. Bulkeley (2008). "Governing Climate Change Post-2012: The Role of Global Cities Case-Study: Los Angeles." Tyndall Centre Working Paper 122, Sept 2008.

The Growth of Transport Sector CO2 Emissions and Underlying Factors in Latin America and the Caribbean.

by Govinda R. Timilsina and Ashish Shrestha

- This study examines the factors responsible for the growth of transport sector carbon dioxide emissions in 20 Latin American and Caribbean countries during 1980-2005 by decomposing the emissions growth into components associated with changes in fuel mix, modal shift, and economic growth, as well as changes in emission coefficients and transportation energy intensity.

Timilsina, G.R. and A. Shrestha (2008). "The Growth of Transport Sector CO2 Emissions and Underlying Factors in Latin America and the Caribbean." World Bank Policy Research Working Paper no. WPS 4734, Sept 2008.

Preventing Climate Change: Second in a Series of Hearings.

by Dallas Burtraw

- These comments highlight three important features in the design of a cap-and-trade policy to regulate greenhouse gas emissions in the United States including the initial distribution of allowance value created under the program, management of costs and the protection of domestic industry from unfair international competition.

Burtraw, D. (2008). "Preventing Climate Change: Second in a Series of Hearings." Resources for the Future, Sept 2008.