nep-res New Economics Papers
on Resource Economics
Issue of 2020‒11‒02
four papers chosen by
Maximo Rossi
Universidad de la República

  1. Economic damages from on-going climate change imply deeper near-term emission cuts By Schultes, Anselm; Piontek, Franziska; Soergel, Bjoern; Rogelj, Joeri; Baumstark, Lavinia; Kriegler, Elmar; Edenhofer, Ottmar; Luderer, Gunnar
  2. Efficient spatial allocation of wind power plants given environmental externalities due to turbines and grids By Kristine Grimsrud; Cathrine Hagem; Arne Lind; Henrik Lindhjem
  3. Voluntary agreements By Richard S.J. Tol
  4. Environmental taxes By Richard S.J. Tol

  1. By: Schultes, Anselm; Piontek, Franziska; Soergel, Bjoern; Rogelj, Joeri; Baumstark, Lavinia; Kriegler, Elmar; Edenhofer, Ottmar; Luderer, Gunnar
    Abstract: Current analyses of pathways limiting global warming to well below 2°C, as called for in the Paris Agreement, do not consider the climate impacts already occurring below 2°C. Here we show that accounting for these damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the time that damages persist and in the climate sensitivity. We find that carbon prices in 2030 are higher compared to the case where only the 2°C is considered; the median value is $115 per tonne of CO2. The long-term persistence of damages, while highly uncertain, is a main driver of optimal near-term climate policy. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions for 2°C by two thirds, compared to pathways considering the 2°C limit only.
    Keywords: Climate change; Climate change mitigation; Climate change impacts; Climate policy; International climate policy; Paris Agreement; Transformation pathways;
    JEL: F53 O13 Q5 Q54 Q56
    Date: 2020–08–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:103655&r=all
  2. By: Kristine Grimsrud; Cathrine Hagem (Statistics Norway); Arne Lind; Henrik Lindhjem
    Abstract: Negative environmental externalities associated with wind power plants depend on the physical characteristics of turbine installations and associated power lines and the geographical siting. We derive analytically an environmental taxation scheme for achieving the efficient spatial distribution of new wind power production, taking account of both production and environmental costs. Further, we illustrate the analytical results by means of a detailed numerical energy system model for Norway. We show that a given target for wind power production can be achieved at a significantly lower social cost by implementing a tax scheme, compared to the current situation with no environmental taxes. We also show that the environmental costs associated with both turbines and power lines were crucial to the efficient spatial allocation of wind power plants.
    Keywords: Wind power; wind power plant; renewable energy; environmental externalities; environmental taxes; energy system model
    JEL: H23 Q42 Q48 Q51
    Date: 2020–08
    URL: http://d.repec.org/n?u=RePEc:ssb:dispap:938&r=all
  3. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of voluntary agreements for environmental policy
    Keywords: environmental economics, policy instruments, undergraduate, video
    JEL: Q50 Q58
    Date: 2020–08
    URL: http://d.repec.org/n?u=RePEc:sus:susvid:2042&r=all
  4. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of environmental taxes
    Keywords: environmental economics, policy instruments, undergraduate, video
    JEL: Q50 Q58
    Date: 2020–08
    URL: http://d.repec.org/n?u=RePEc:sus:susvid:2044&r=all

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