March 29, 2009

Burden Sharing Emissions and Climate Change: A Theoretic Welfare Approach

by Dritan Osmani

- The approximated cost-benefit function of pollution abatement from two integrated assessment models are employed in constructing social welfare functions (SWF). Following a normative approach and evaluating equally the environmental goods in rich and poor countries, furthermore using distributional weights, a relation between elasticity of marginal utility and inequality aversion parameter is established.

Osmani, D. (2009). "Burden Sharing Emissions and Climate Change: A Theoretic Welfare Approach." FNU Working Paper 172, March 2009.

Towards a Genuine Sustainability Standard for Biofuel Production

by Harry de Gorter and Yacov Tsur

- Sustainability standards for biofuel production calculated via life cycle accounting (LCA) require a certain reduction in greenhouse gas (GHG) emissions relative to gasoline. Recently it has been shown that LCA gives biased results and should be extended to incorporate indirect land use change (iLUC). We show that even including iLUCs, LCA is still biased and distorted. We offer a sustainability standard free of these restrictions, expressed in terms of a range of SDRs and a maximal GHG payback period. Applying our methodology to Brazilian and U.S. data, we find that in Brazil conversion to biofuel production of two land types is genuinely sustainable whereas in the United States no land type satisfies our criterion.

de Gorter, H. and Y. Tsur (2009). "Towards a Genuine Sustainability Standard for Biofuel Production." Department of Applied Economics and Management, WP 2009-12, March 2009

Environmental Negotiations as Dynamic Games: Why so Selfish?

by Raouf Boucekkine, Jacek B. Krawczyk and Thomas Vallee

- We study a trade-off between economic and environmental indicators using a two-stage optimal control setting where the player can switch to a cleaner technology, that is environmentally "efficient", but economically less productive. We provide an analytical characterization of the solution paths for the case where the considered utility functions are increasing and strictly concave with respect to consumption and decreasing linearly with respect to the pollution stock.

Boucekkine, R. J.B. Krawczyk and T. Vallee (2009). "Environmental Negotiations as Dynamic Games: Why so Selfish?" CORE Discussion Paper 2009/10, February 2009.

Promoting Clean Technologies under Imperfect Competition

by Théophile T. Azomahou, Raouf Boucekkine and Phu Nguyen-Van

- We develop a general equilibrium multi-sector vintage capital model with energy-saving technological progress and an explicit energy market to study the impact of investment subsidies on investment and output. Energy and capital are assumed to be complementary in the production process. New machines are less energy consuming and scrapping is endogenous. Two polar market structures are considered for the energy market, free entry and natural monopoly. We identify an original paradox: adoption subsidies may induce a larger investment into cleaner technologies either under free entry or natural monopoly.

Azomahou, T.T., R. Boucekkine and P. Nguyen-Van (2009). "Promoting Clean Technologies under Imperfect Competition." Core Discussion Paper 2009/11, March 2009.

Prices Versus Quantities in a Vintage Capital Model

by Thierry Brechet, Tsvetomir Tsachev and Vladimir M. Veliov

- The heterogeneity of the available physical capital with respect to productivity and emission intensity is an important factor for policy design, especially in the presence of emission restrictions. In a vintage capital model, reducing pollution requires to change the capital structure through investment in cleaner machines and to scrap the more polluting ones. In such a setting we show that emission tax and auctioned emission permits may yield contrasting outcomes.

Brechet, T., T. Tsachev and V.M. Veliov (2009). "Prices Versus Wuantities in a Vintage Capital Model." Core Discussion Paper 2009/15, March 2009.

Carbon Labelling: Moral, Economic and Legal Implications in a World Trade Environment

by Olga Nartova

- Carbon labelling is a noble concept aimed at reducing carbon emissions through more efficient methods of manufacture and more responsible consumer habits. Unfortunately no widely accepted system of labelling exists, and creating one raises a number of questions on the global political and economic levels.

Nartova, O. (2009). "Carbon Labelling: Moral, Economic and Legal Implications in a World Trade Environment." NCCR Trade Working Paper No 2009/5, March 2009.

The Feasibility of Low Concentration Targets: An Application of FUND

by Richard S J Tol

- I study the feasibility of stringent targets for stabilizing ambient greenhouse gas concentrations. Climate policy has diminishing returns, and there is therefore a maximum to what can be achieved. The EU target of 2ºC warming above pre-industrial is infeasible under almost all assumptions. A cost-benefit analysis would endorse a target of 4.5 Wm-2 (but not much stricter than that) if all major emitters engage in abatement. Under the same condition, the median US voter would support a 3.7 Wm-2 target (but not much stricter than that).

Tol, R.S.J. (2009). "The Feasibility of Low Concentration Targets: An Application of FUND." ESRI Working Paper 285, March 2009.

China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution

by Hengyun Ma, Les Oxley, John Gibson and Bongguen Kim

- With its rapid economic growth, China's primary energy consumption has exceeded domestic energy production since 1994, leading to a substantial expansion in energy imports, particularly of oil. China's energy demand has an increasingly significant impact on global energy markets. In this paper Allen partial elasticities of factor and energy substitution, and price elasticities of energy demand, are calculated for China using a two-stage translog cost function approach.

Ma, H., L. Oxley, J. Gibson and B. Kim (2009). "China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution." Motu Working Paper 09-02, March 2009.

Implementing the EU Renewables Directive

by Karsten Neuhoff

- The European Renewables Directive requires Member States to deliver on average 20% of their final energy consumption by 2020 using renewable energy sources. To deliver this target, Member States have to adjust planning procedures, evaluate energy market design, provide grid and supply infrastructure, and implement support schemes that limit regulatory risk for finance. The paper discusses how quantitative policy indicators can allow governments to measure and manage the successful implementation of the necessary policies to deliver the renewable targets.

Neuhoff, K. (2009). "Implementing the EU Renewables Directive." EPRG Working Paper: EPRG0908, March 2009.

International Support for Domestic Climate Policies

by Karsten Neuhoff

- Six case studies explore the domestic drivers and barriers for policies with climate (co-)benefits in developing countries. International support can help to overcome these constraints by providing additional resources for incremental policy costs, technical assistance, and technology cooperation to build local capacity.

Neuhoff, K. (2009). "International Support for Domestic Climate Policies." Working Paper: EPRG0907, March 2009.

Electric Driving - Evaluating Transitions Based on System Options

by D. Nagelhout and J.P.M. Ros

- Large-scale use of electric vehicles could drastically reduce CO2 emissions, especially if more electricity would be generated by sustainable energy. Obstacles currently consist of the high priced batteries, their relatively long rercharging times, the maximum range of electric vehicles and the lack of charging facilities. This report shows the challenges facing the government and the business community of utilising the benefits of electric driving and of overcoming the obstacles.

Nagelhout, D., J.P.M. Ros (2009). "Electric Driving - Evaluating Transitions Based on System Options." Report no. 500083010, February 2009.

Welfare Effects of Biofuels Trade Policy in the Presence of Environmental Externalities

by Christine Lasco and Madhu Khanna

- We develop a stylized model of fuel markets in an open economy and derive the optimal mix of trade and environmental policy instruments for biofuels and gasoline that maximizes social surplus and internalizes externalities from miles and greenhouse gas (GHG) emissions. We use this optimal scenario as a benchmark to compare existing and alternative biofuel policies including the import tariff and the tax credit for ethanol.

Lasco, C. and M. Khanna (2009). "Welfare Effects of Biofuels Trade Policy in the Presence of Environmental Externalities." Available at SSRN.

Opportunities for Forestry under the CPRS: An Examination of Some Key Factors

by Kevin Burns, Jahnvi Vedi, Edwina Heyhoe and Helal Ahammad

- ABARE analysis for the Australian Government Treasury report Australia’s low pollution future suggested that by 2050, depending on the price of carbon, the area of agricultural land which potentially could be used for timber plantations may increase up to 4.5 million hectares and the area of environmental plantings could increase up to 21.8 million hectares.

Burns, K., J. Vedi, E. Heyhoe and H. Ahammad (2009). "Opportunities for Forestry under the CPRS: An Examination of Some Key Factors." ABARE Issues Insights 09.01, March 2009.

Agriculture and the Carbon Pollution Reduction Scheme (CPRS): Economic Issues and Implications

by Melanie Ford, Andrew Gurney, Catherine Tulloh, Todd McInnis, Raymond Mi and Helal Ahammad

- The Australian Government’s Carbon Pollution Reduction Scheme (CPRS) will commence in 2010. Agricultural emissions are likely to be included in the scheme from 2015. A key focus of this paper is to examine the potential economic effects of the CPRS on agricultural production costs and output in the short and long term, using both partial and general equilibrium analytical frameworks. In this regard a range of relevant issues are discussed.

Ford, M., A. Gurney, C. Tulloh, T. McInnis, R. Mi and H. Ahammad (2009). Agriculture and the Carbon Pollution Reduction Scheme (CPRS): Economic Issues and Implications."" ABARE Issues Insights 09.02, March 2009.

Regional Regulatory Initiatives Addressing GHG Leakage in the USA

by Erik B. Bluemel

- This chapter describes some of the major regional GHG cap-and-trade initiatives in the United States, defines the problem of emissions leakage in the context of regional GHG regulation, identifies the various approaches employed by the regional GHG cap-and-trade regimes in the United States to address leakage, and provides some suggestions about the design of regional GHG regimes outside the United States, including in the European Union.

Bluemel, E.B. (2008). mel"Regional Regulatory Initiatives Addressing GHG Leakage in the USA." In Climate Change and European Emissions Trading: Lessons for Theory and Practice, Michael Faure and Marjan Peeters, eds.; Available at SSRN.

March 23, 2009

Effects of Low-cost Offsets on Energy Investment -New Perspectives on REDD-

by Sabine Fuss, Alexander Golub, Jana Szolgayova and Michael Obersteiner

- This paper developes a real options model to finance reduction of emissions from deforestation and degradation (REDD). There is an option to invest in less carbon-intensive energy technology and an option to purchase credits on REDD, which you will exercise or not depending on the future evolution of CO2 prices. In this way, unresolved questions can still be addressed at a later stage, while producers and investors hold REDD options to maintain flexibility for later decisions. We find that investment in cleaner technology is not significantly affected if REDD options are priced as a derivative of CO2 permits.

Fuss, S., A. Golub, J. Szolgayova and M. Obersteiner (2009). "Effects of Low-cost Offsets on Energy Investment -New Perspectives on REDD-", FEEM Nota di Lavoro 17.09, March 2009.

Wind Power Development: Economics and Policies

by G. Cornelis van Kooten, Govinda R. Timilsina

- This study reviews the prospects of wind power at the global level. Existing studies indicate that the earth's wind energy supply potential significantly exceeds global energy demand. Yet, only 1 percent of the global electricity demand is currently derived from wind power despite 40 percent annual growth in wind generating capacity over the past 25 years. It has been estimated that wind power could supply 7 to 34 percent of global electricity needs by 2050. However, wind power faces a large number of technical, economic, financial, institutional, market, and other barriers.

van Kooten, G.C. and G.R. Timilsina (2009). "Wind Power Development: Economics and Policies." World Bank Policy Research Working Paper WPS 4868, March 2009.

Energy Demand Models for Policy Formulation: a Comparative Study of Energy Demand Models

by Subhes C. Bhattacharyya and Govinda R. Timilsina

- This paper critically reviews existing energy demand forecasting methodologies highlighting the methodological diversities and developments over the past four decades in order to investigate whether the existing energy demand models are appropriate for capturing the specific features of developing countries.

Bhattacharyya, S.C. and G.R. Timilsina (2009). "Energy Demand Models for Policy Formulation: a Comparative Study of Energy Demand Models." World Bank Policy Research Working Paper no. WPS 4866, March 2009.

Total Factor Productivity Growth when Factors of Production Generate Environmental Externalities

by Anastasios Xepapadeas and Dimitra Vouvaki

- Total factor productivity growth (TFPG) has been traditionally associated with technological change. We show that when a factor of production, such as energy, generates an environmental externality in the form of CO2 emissions which is not internalized because of lack of environmental policy, then TFPG estimates could be biased. This is because the contribution of environment as a factor of production is not accounted for in the growth accounting framework. Empirical estimates confirm this hypothesis and suggest that part of what is regarded as technology’s contribution to growth could be attributed to the use of environment in output production.

Xepapadeas A. and D. Vouvaki (2009). "Total Factor Productivity Growth when Factors of Production Generate Environmental Externalities." FEEM Nota di Lavoro 20.09, March 2009.

EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes

by Thomas Eichner and Rudiger Pethig

- The European Union fulfills its emissions reductions commitments by means of an emissions trading scheme covering some part of each member state’s economy and by national emissions control in the rest of their economies. The member states also levy energy/emissions taxes overlapping with the trading scheme. Restricting our focus on cost-effective policies, this paper investigates the distributive consequences of increasing the overlapping emissions tax that is uniform across countries.

Eichner, T. and R. Pethig (2009). "EU-Type Carbon Emissions Trade and the Distributional Impact of Overlapping Emissions Taxes." CESifo Working Paper No. 2579, March 2009.

A Review of Regulatory Instruments to Control Environmental Externalities from the Transport Sector

by Govinda R. Timilsina, Hari B. Dulal

- This study reviews regulatory instruments designed to reduce environmental externalities from the transport sector. The study finds that the main regulatory instruments used in practice are fuel economy standards, vehicle emission standards, and fuel quality standards. Although industrialized countries have introduced all three standards with strong enforcement mechanisms, most developing countries have yet to introduce fuel economy standards.

Timilsina, G.R. and H.B. Dulal (2009). "A Review of Regulatory Instruments to Control Environmental Externalities from the Transport Sector." World Bank Policy Research Working Paper no. WPS 4867, March 2009.

March 10, 2009

Understanding Farmers' Perceptions and Adaptations to Climate Change and Variability The Case of the Limpopo Basin, South Africa

by Glwadys Aymone Gbetibouo

- Climate change is expected to have serious environmental, economic, and social impacts on South Africa, in particular for rural farmers. The extent to which these impacts are felt depends in large part on the extent of adaptation in response to climate change. This research uses a "bottom-up" approach, which seeks to gain insights from the farmers themselves based on a farm household survey. Farm-level data were collected from 794 households in the Limpopo River Basin of South Africa for the farming season 2004-2005. The study examines how farmer perceptions correspond with climate data recorded at meteorological stations in the Limpopo River Basin and analyzes farmers’ adaptation responses to climate change and variability.

Gbetibouo, G.A. (2009). "Understanding Farmers' Perceptions and Adaptations to Climate Change and Variability The Case of the Limpopo Basin, South Africa." IFPRI Discussion Paper No. 849

Does Geography Matter for the Clean Development Mechanism?

by Yongfu Huang and Terry Barker

- This research suggests that CDM credit flows in a country are positively affected by those in its neighbouring countries. Countries with higher absolute latitudes and elevations tend to initiate more CDM projects, whereas countries having richer natural resources do not seem to undertake more CDM projects. This finding sheds light on the geographic determinants of uneven CDM development across countries.

Huang, Y. and T. Barker (2009). "Does Geography Matter for the Clean Development Mechanism?" Tyndall Centre Working Paper 131, Mar 2009.

Tax Policy and CO2 Emissions: An Econometric Analysis of the German Automobile Market

by Colin Vance and Markus Mehlin

- Using panel data on new-car registrations in Germany, Europe’s largest car market, the present paper addresses this issue with an econometric analysis of the impact of fuel costs and circulation taxes on car market shares. Results suggest that circulation taxes and fuel costs significantly determine car market shares, and hence may serve as effective instruments in influencing the composition of the car fleet and associated CO2 emissions.

Vance, C. and M. Mehlin (2009). "Tax Policy and CO2 Emissions: An Econometric Analysis of the German Automobile Market." Ruhr Economic Papers #89, March 2009.

The Impact of Trade and Economic Growth on the Environment: Revisiting the Cross-Country Evidence

by Awudu Abdulai and Linda Ramcke

- This paper explores the interrelations between economic growth, international trade and environmental degradation both theoretically and empirically. Panel data from developed and developing countries for the period of 1980 to 2003 is used and previous critique, especially on the econometric specification, is embedded. In particular, it is not assumed that there is a single link for all countries. Several environmental factors and one sustainability indicator are analyzed for the full sample, regions and income groups. The results indicate that there is an Environmental Kuznets Curve (EKC) for most pollutants, but with several reservations.


Abdulai, A. and L. Ramcke (2009). "The Impact of Trade and Economic Growth on the Environment: Revisiting the Cross-Country Evidence." Kiel Institute Working Paper No. 1491, March 2009.

March 3, 2009

What if Energy Decoupling of Emerging Economies Were not so Spontaneous? An illustrative example on India

by Sandrine Mathy and Céline Guivarch

- Reference GHG emissions scenarios are critical for estimates of the costs of stabilization and for climate policy recommendations. Existing reference scenarios, notably the SRES, have been the target of criticisms that question their optimistic views on spontaneous energy decoupling of emerging countries economies. This article focuses on an illustrative example on India. It proposes an alternative reference scenario built with a modeling framework representing as realistically as possible the processes driving energy intensity and carbon intensity changes, in particular accounting for the interactions between energy systems and economic constraints and capturing the sub-optimalities of the energy sector.

Mathy, S. and C. Guivarch (2009). "What if Energy Decoupling of Emerging Economies Were not so Spontaneous? An illustrative example on India." CIRED Working Papers No 13-2009, February.

The Clean Development Mechanism and Sustainable Development: A Panel Data Analysis

by Yongfu Huang and Terry Barker

- This research empirically investigates the long-run impacts of CDM projects on CO2 emissions for 34 CDM host countries over 1990-2007. By allowing for considerable heterogeneity across countries, this research provides strong evidence in support of a significant effect of CDM projects on CO2 emission reductions in the host countries. It offers ample recommendation for improving CDM development and serves to encourage the developing countries to strengthen their national capacity to effectively access the CDM for their sustainable development objectives.

Huang, Y. and T. Barker (2009). "The Clean Development Mechanism and Sustainable Development: A Panel Data Analysis." Tyndall Centre Working Paper 130, February.

A Blueprint for the Integrated Assessment of Climate Change in Cities

by R.J. Dawson, J.W. Hall, S.L. Barr, M. Batty, A.L. Bristow, S. Carney, A. Dagoumas, S. Evans, A. Ford, H. Harwatt, J. Köhler, M.R. Tight, C.L. Walsh, and A.M. Zanni

- This paper reviews the potential impacts of climate change on cities and the challenges faced by city planners to manage these risks. An integrated assessment system for analysing climate change in cities is being developed by the Tyndall Centre for Climate Change Research. The principles of this system are introduced before identifying remaining research questions.

Dawson, R.J., J.W. Hall, S.L. Barr, M. Batty, A.L. Bristow, S. Carney, A. Dagoumas, S. Evans, A. Ford, H. Harwatt, J. Köhler, M.R. Tight, C.L. Walsh, and A.M. Zanni (2009). "A Blueprint for the Integrated Assessment of Climate Change in Cities." Tyndall Centre Working Paper 129, February.

A Symmetric Safety Valve

by Dallas Burtraw, Karen L. Palmer and Daniel B. Kahn

- In a cap-and-trade program for carbon dioxide, a "safety valve" that would mitigate against spikes in the cost of emission reductions by introducing additional emission allowances into the market when marginal costs rise above the specified allowance price level. We find two significant problems, both stemming from the asymmetry of an instrument that mitigates only against a price increase. One is that most important examples of price volatility in cap-and-trade programs have occurred not when prices spiked, but instead when allowance prices collapsed. Second, a single-sided safety valve may have unintended consequences for investment. We illustrate that a symmetric safety valve provides environmental and welfare improvements relative to the conventional one-sided approach.

Burtraw, D., K.L. Palmer and D.B. Kahn (2009). "A Symmetric Safety Valve." RFF Discussion Paper 09-06, February.

Trends of U.S. Emissions of Nitrogen Oxides and Volatile Organic Compounds

by Nina S. Jones and Eric Zivot

- Using recently developed structural break tests that are valid for difference-stationary and trend-stationary data and efficient unit root tests that allow for breaks we examine the trend behavior of two air pollutants, Nitrogen Oxides (NOX) and Volatile Organic Compounds (VOC). We find that there was a break in the trend of both air pollutants at the time the Clean Air Act Amendments of 1970 were passed. The unit root tests show that NOX are difference-stationary whereas VOC emissions are trend-stationary.

Jones, N.S. and E.W. Zivot (2009). "Trends of U.S. Emissions of Nitrogen Oxides and Volatile Organic Compounds." Available at SSRN, February.

Options to Enhance and Improve the Clean Development Mechanism (CDM)

by Lambert Schneider

- The report first explores how the effective functioning of the CDM can be improved by improving the governance arrangements of the CDM Executive Board and ensuring an effective validation and verification by Designated Operational Entities. It analyses (i) how the demonstration of additionality can be improved and be based on more objective criteria, and (ii) the contribution of the CDM to sustainable development and identifies options how the sustainable development benefits of CDM projects can be enhanced. Furthermore, it looks into sectors that are currently underrepresented in the CDM.

Schneider, L. (2009). "Options to Enhance and Improve the Clean Development Mechanism (CDM)." ETC/ACC Technical Paper 2008/15, January.

The Resilience of the Indian Economy to Rising Oil Prices as a Validation Test for a Global Energy-Environment-Economy CGE Model

by Céline Guivarch, Stéphane Hallegatte, Renaud Crassous

- This paper proposes to test the global hybrid computable general equilibrium model IMACLIM-R against macroeconomic data. To do so, it compares the modeled and observed responses of the Indian economy to the rise of oil price during the 2003-2006 period. The objective is twofold: first, to disentangle the various mechanisms and policies at play in India’s economy response to rising oil prices and, second, to validate our model as a tool capable of reproducing short-run statistical data.

Guivarch, C., S. Hallegatte, R. Crassous (2009). "The Resilience of the Indian Economy to Rising Oil Prices as a Validation Test for a Global Energy-Environment-Economy CGE Model." CIRED Working Papers No 11-2008.

March 1, 2009

Endogenous Growth, Backstop Technology Adoption and Optimal Jumps

by Simone Valente

- We study a two-phase endogenous growth model in which the adoption of a backstop technology (e.g. solar) yields a sustained supply of essential energy inputs previously obtained from exhaustible resources (e.g. oil). Growth is knowledge-driven and the optimal timing of technology switching is determined by welfare maximization. The optimal path exhibits discrete jumps in endogenous variables: technology switching implies sudden reductions in consumption and output, an increase in the growth rate, and instantaneous adjustments in saving rates.

Valente, S. (2009). "Endogenous Growth, Backstop Technology Adoption and Optimal Jumps." Center of Economic Research, ETH Zurich, Economics Working Paper Series, February.

Corporate Responses to Climate Change and Financial Performance: The Impact of Climate Policy

by Andreas Ziegler, Timo Busch and Volker H. Hoffmann

- This paper examines the relationship between corporate activities to address climate change and stock performance. By separately analyzing the US and European stock markets for different sub-periods, we highlight the impact of the underlying climate policy regime. Methodologically, we compare risk-adjusted returns of stock portfolios comprising corporations that differ in their responses to climate change.

Ziegler, A., T. Busch and V.H. Hoffmann (2009). "Corporate Responses to Climate Change and Financial Performance: The Impact of Climate Policy." Center of Economic Research, ETH Zurich, Economics Working Paper Series, February.

The Welfare Effects of Environmental Taxation

by William K. Jaeger

- Recent literature has investigated whether the welfare gains from environmental taxation are larger or smaller in a second-best setting than in a first-best setting. This question has mainly been addressed indirectly, by asking whether the second-best optimal environmental tax is higher or lower than the first-best Pigouvian rate. The current analysis reevaluates the central welfare question both directly and indirectly and finds that when compared directly to its first-best Pigouvian value, the second-best optimal environmental tax generally rises with increased revenue requirements.

K. Jaeger, W.D. (2009). "The Welfare Effects of Environmental Taxation." FEEM Nota di Lavoro 09.2009, February.

The impact of Weather Variability and Climate Change on Pesticide Applications in the US - An Empirical Investigation

by Nikolinka G. Koleva, Uwe A. Schneider and Richard S.J. Tol

- Weather variability and climate change affect the application of pesticides in agriculture, in turn impacting the environment. Using panel data regression for the US, we find that weather and climate differences significantly influence the application rates of most pesticides. Subsequently, the regression results are linked to downscaled climate change scenario the Canadian and Hadley climate change models. We find that the application of most pesticides increase under both scenarios. The projection results vary by crop, region, and pesticide.

Koleva, N.G., U.A. Schneider and R.S.J. Tol (2009). "The impact of Weather Variability and Climate Change on Pesticide Applications in the US - An Empirical Investigation." Working Paper FNU-171, February.

The Economics of Climate Change Impacts and Policy Benefits at City Scale: A Conceptual Framework

by Stéphane Hallegatte, Fanny Henriet and Jan Corfee-Morlot

- Today the OECD is actively working with governments to highlight the role of cities to deliver cost-effective policy responses to climate change. A number of projects at the OECD are advancing the understanding of the roles that cities can play to respond to efficiently and effectively to climate change. This report is one in a series under the OECD Environment Directorate’s project on Cities and Climate Change. The project aims to explore the city-scale risks of climate change and the local benefits of both adaptation policies and (global) mitigation strategies.

Hallegatte, S., F. Henriet and J. Corfee-Morlot (2008). "The Economics of Climate Change Impacts and Policy Benefits at City Scale: A Conceptual Framework." OECD Environment Working Papers No. 4, December.

Ranking Port Cities with High Exposure and Vulnerability to Climate Extremes Exposure Estimates

by R. J. Nicholls, S. Hanson, C. Herweijer, N. Patmore, S. Hallegatte, J. Corfee-Morlot, Jean Château and R. Muir-Wood

- This global screening study makes a first estimate of the exposure of the world's large port cities to coastal flooding due to storm surge and damage due to high winds. This assessment also investigates how climate change is likely to impact each port city's exposure to coastal flooding by the 2070s, alongside subsidence and population growth and urbanisation. The study provides a much more comprehensive analysis than earlier assessments, focusing on the 136 port cities around the world that have more than one million inhabitants in 2005.

Nicholls, R.J., S. Hanson, C. Herweijer, N. Patmore, S. Hallegatte, J. Corfee-Morlot, Jean Château and R. Muir-Wood (2008). "Ranking Port Cities with High Exposure and Vulnerability to Climate Extremes Exposure Estimates." OECD Environment Working Papers No. 1, 19/11/2008, November.

Assessing Climate Change Impacts, Sea Level Rise and Storm Surge Risk in Port Cities A Case Study on Copenhagen

by Stéphane Hallegatte, Nicola Patmore, Olivier Mestre, Patrice Dumas, J. Corfee-Morlot, Celine Herweijer and Robert Muir Wood

- This study illustrates a methodology to assess economic impacts of climate change at city scale, focusing on sea level rise and storm surge. It is based on a statistical analysis of past storm surges in the studied city, matched to a geographical-information analysis of the population and asset exposure in the city, for various sea levels and storm surge characteristics. This methodology is applied in the city of Copenhagen, capital of Denmark, which is potentially vulnerable to the effects of variability in sea level.

Hallegatte, S., N. Patmore, O. Mestre, P. Dumas, J. Corfee-Morlot, C. Herweijer and R. Muir Wood (2008). "Assessing Climate Change Impacts, Sea Level Rise and Storm Surge Risk in Port Cities A Case Study on Copenhagen." OECD Environment Working Papers, No. 3, October.