Measuring comprehensive carbon prices of national climate policies

Abstract Individual countries are in the process of legislating responses to the challenges posed by climate change. The prospect of rising carbon prices raises concerns in these nations about the effects on the competitiveness of their own energy-intensive industries and the potential for carbon leakage, particularly leakage to emerging economies that lack comparable regulation. In response, certain developed countries are proposing controversial trade-related measures and allowance allocation designs to complement their climate policies. Missing from much of the debate on trade-related measures is a broader understanding of how climate policies implemented unilaterally (or subglobally) affect all countries in the global trading system. Arguably, the largest impacts are from the targeted carbon pricing itself, which generates macroeconomic effects, terms-of-trade changes, and shifts in global energy demand and prices; it also changes the relative prices of certain energy-intensive goods. This paper studies how climate policies implemented in certain major economies (the European Union and the United States) affect the global distribution of economic and environmental outcomes and how these outcomes may be altered by complementary policies aimed at addressing carbon leakage.

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Death and Environmental Taxes: Why Market Environmentalism Fails in Liberal Market Economies

Global Environmental Politics ◽

10.1162/glep_a_00336 ◽

2016 ◽

Vol 16 (1) ◽

pp. 21-37 ◽

Cited By ~ 1

Author(s):

Robert MacNeil

Keyword(s):

Climate Policy ◽

National Level ◽

The United States ◽

Environmental Taxes ◽

Market Economies ◽

Climate Policies ◽

Political Traditions ◽

Liberal Market Economies ◽

Market Environmentalism ◽

Carbon Prices

This article aims to explain why market-based climate policies (carbon levies and emissions trading) have had limited success at the national level in “liberal-market economies” like Australia, Canada, and the United States. This situation is paradoxical to the extent that market environmentalism is often thought to be a concept tailored to the political traditions and policy paradigms in these states. I argue this occurs because precisely in such economies, workers have been the least protected from the market and the effects of globalization, leading to a squeeze on incomes and public services, and providing fertile ground for a virulently antitax politics. When coupled with the disproportionately carbon-intensive lifestyles in these states and the strength of fossil fuel interests, it becomes extremely easy and effective for opponents of climate policy to frame carbon prices as an onerous tax on workers and families. The article explores how this strategy has functioned at a discursive level and considers what this situation implies for climate policy advocates in carbon-intensive, neoliberal polities.

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Optimal Emission Prices Over the Business Cycles

Environmental and Resource Economics ◽

10.1007/s10640-021-00581-x ◽

2021 ◽

Author(s):

Jussi Lintunen ◽

Lauri Vilmi

Keyword(s):

Business Cycles ◽

Marginal Utility ◽

Optimal Growth ◽

Carbon Price ◽

Environmental Damage ◽

Growth Path ◽

Price Fluctuations ◽

Climate Policies ◽

Optimal Growth Path ◽

Carbon Prices

AbstractWe prove that under the most typical circumstances optimal emission prices are procyclical, i.e., prices should be lower during recessions. The procyclicality is more likely when emissions propagate very slowly into environmental damage. A prime example of such process is $$\hbox {CO}_2$$ CO 2 emissions. We show that carbon prices should be closely linked to the fluctuations of the marginal utility of consumption, which implies relatively modest magnitude of carbon price fluctuations. Our findings imply that climate policies should focus on setting the carbon price to the optimal growth path level and give carbon price fluctuations only a secondary role. Opposite to the carbon price, the cyclicality of optimal emissions depends on the production technology in the energy sector, and may become countercyclical in future if the technology mix becomes less fossil dependent.

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Energy and Climate Policies in China and India

10.1017/9781108333498 ◽

2018 ◽

Cited By ~ 1

Author(s):

Fuzuo Wu

Keyword(s):

China And India ◽

Climate Policies

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Impacts of Paris Agreement on Russian economy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-4-76-94 ◽

2018 ◽

pp. 76-94 ◽

Cited By ~ 1

Author(s):

I. A. Makarov ◽

C. Henry ◽

V. P. Sergey

Keyword(s):

Climate Change ◽

Economic Policy ◽

Growth Rates ◽

Paris Agreement ◽

Gdp Growth ◽

Russian Economy ◽

Climate Policies

The paper applies multiregional CGE Economic Policy Projection and Analysis (EPPA) model to analyze major risks the Paris Agreement on climate change adopted in 2015 brings to Russia. The authors come to the conclusion that if parties of the Agreement meet their targets that were set for 2030 it may lead to the decrease of average annual GDP growth rates by 0.2-0.3 p. p. Stricter climate policies beyond this year would bring GDP growth rates reduction in2035-2050 by additional 0.5 p. p. If Russia doesn’t ratify Paris Agreement, these losses may increase. In order to mitigate these risks, diversification of Russian economy is required.

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