The article examines the key features and functions of the proposed Finnish Climate Change Act (fcca). It also analyses the legal implications of the Act and the qualities and factors which may limit its effectiveness. The paper argues that, despite its weak legal implications, the fcca would provide the regulatory preconditions for higher-quality climate policy-making in Finland, and it has the capacity to play an important role in national climate policy. The fcca would deliver regulatory foundations for systematic and integrated climate policy-making, also enabling wide public scrutiny. The proposed model leaves room for manifold climate-policy choices in varying societal and economical contexts. The cost of dynamic features is the relalow predictability in terms of sectorial paths on emission reductions. Another relevant challenge relates to the intended preparation of overlapping mid-term energy and climate plans with instruments of the fcca.
Uncertainty surrounding if and when the U.S. government will implement a federal climate policy introduces risk into the decision to invest in capital used in conjunction with fossil fuels. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost.
Uncertainty surrounding if and when the U.S. government will implement a federal climate policy introduces risk into the decision to invest in capital used in conjunction with fossil fuels. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost.
Climate policy in an unequal world: Assessing the cost of risk on vulnerable households