|
on Resource Economics |
|
Issue of 2011‒02‒12
three papers chosen by |
| By: | Alex L. Marten; Stephen C. Newbold |
| Abstract: | Many estimates of the social cost of CO2 emissions (SCCO2) can be found in the climate economics literature. However, to date far fewer estimates of the social costs of other greenhouse gases have been published, and many of those that are available are not directly comparable to current estimates of the SCCO2. In this paper we use a simplified integrated assessment model that combines MAGICC and (elements of) DICE to estimate the social costs of the three most important greenhouse gases—CO2, CH4, and N2O—for the years 2010 through 2050. Insofar as possible, we base our model runs on the assumptions and input parameters of the recent U.S. government inter-agency SCC working group. We compare our estimates of the social costs of CH4 and N2O emissions to those that would be produced by using the SCCO2 to value the "CO2-equivalents" of each of these gases, as calculated using their global warming potentials (GWPs). We examine the estimation error induced by valuing non-CO2 greenhouse gas emission reductions using GWPs and the SCCO2 for single- and multi-gas abatement policies. In both cases the error can be large, so estimates of the social costs of these gases, rather than proxies based on GWPs, should be used whenever possible. However, if estimates of the social cost are not available the value of non-CO2 GHG reductions estimated using GWPs and the SCCO2 will typically have lower absolute errors than default estimates of zero. |
| Keywords: | social cost of carbon, global warming potential, integrated assessment |
| JEL: | Q54 Q58 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201101&r=res |
| By: | BRECHET, Thierry (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Eonomics and Management, B- 1348 Louvain-la-Neuve, Belgium); THENIE, Julien (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Eonomics and Management, B- 1348 Louvain-la-Neuve, Belgium; ORDECSYS Company, Chêne-Bougeries, Switzerland.); ZEIMES, Thibaut (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Eonomics and Management, B- 1348 Louvain-la-Neuve, Belgium); ZUBER, Stéphane (Université catholique de Louvain, CORE and Chair Lhoist Berghmans in Environmental Eonomics and Management, B- 1348 Louvain-la-Neuve, Belgium) |
| Abstract: | This article presents an analysis of the behavior of countries defining their climate policies in an uncertain context. The analysis is made using the S-CWS model, a stochastic version of an integrated assessment growth model. The model includes a stochastic definition of the climate sensitivity parameter. We show that the impact of uncertainty on policy design critically depends on the shape of the damage function. We also examine the benefits of cooperation in the context of uncertainty: we highlight the existence of an additional benefit of cooperation, namely risk reduction. |
| Keywords: | cooperation, uncertainty, climate change, integrated assessment model |
| JEL: | C71 C73 D9 D62 F42 Q2 |
| Date: | 2010–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2010062&r=res |
| By: | Konstantinos Angelopoulos; George Economides; Apostolis Philippopoulos |
| Abstract: | This paper uses a micro-founded DSGE model to compare second-best optimal environmental policy and the resulting allocation to first-best allocation. The focus is on the source and size of uncertainty, and how this affects optimal choices and the inferiority of second best vis-à-vis first best. |
| Keywords: | General equilibrium; uncertainty; environmental policy; second best |
| JEL: | C68 D81 H23 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2010_35&r=res |