Mitigating Climate Change by Planting Trees: The Transaction Costs Trap

2002 ◽  
Vol 78 (4) ◽  
pp. 559-572 ◽  
Author(s):  
G. Cornelis van Kooten ◽  
Sabina Lee Shaikh ◽  
Pavel Suchánek
2015 ◽  
Vol 1 (1) ◽  
pp. 19
Author(s):  
Jan-Erik Lane

When a decision-maker faces a choice between alternatives of action in a situation of uncertainty, one speaks of a “game against Nature” when he/she faces no interaction with another player or group. In the process of global warming, mankind is the one player facing two alternatives: resilience or precaution. Not knowing fully the consequences of the increase in the emission of greenhouse gases on climate change or the implications of climate change for biological and social system, what action to take? If there were a global benevolent rule, he/she may decide to avoid the worst outcome. But global ecological policy-making requires the coordination among a large number of players, which open up the possibility of reneging as well as carries heavy transaction costs.


2016 ◽  
Vol 6 (1) ◽  
pp. 21
Author(s):  
Jan-Erik Lane

Economist Stern (2016) asks now why so little is concretely done against global warming. But consider the huge countries in South Asia and their mighty neighbours. South Asia is poised to become the next set of Asian economic miracles. Yet they face a terrible threat from the environment, as global warming picks up speed together with more and more environmental degradation. Can these more than 2 billion people work and find food and water, if temperature rises more than 2-3 degrees? Can peasants work and survive? And how to generate enough electricity for housing, given increasing water shortages? Without massive financial assistance, there will occur widespread reneging on the COP21 objectives (Goal I-III). The system of UNFCCC with yearly big meetings does not offer an organization that is up to the coordination tasks involved in halting climate change—too much transaction costs. South Asia needs the promised Super Fund badly that Stern anticipated 2007.


2021 ◽  
pp. 284-302
Author(s):  
Marjatta Eilittä

Sahelian livestock systems, an indelible feature of its landscapes and significant contributor to its economies, are under significant pressures to change. Whereas high predicted demand increases for livestock products offer great prospects for income growth, expansion of croplands and settlements as well as climate change will likely negatively impact Sahelian producers. It is clear that for Sahel to respond to livestock market opportunities, changes in traditional trade and production practices are needed, in particular to improve reach of market signals to producers, reduce the high transaction costs, and improve productivity. The Sahelian markets have to date shown continued capacity to supply growing Sahelian and regional markets, and in fact the changes, are already evident. These include expansion and diversification of trader networks, changing procurement patterns, agricultural expansion, and increased use of supplemental feeds, among others. These changes are certain to further evolve.


2009 ◽  
Vol 85 (3) ◽  
pp. 372-376 ◽  
Author(s):  
G. Cornelis van Kooten

Activities that remove CO2 from the atmosphere and store it in forest and agricultural ecosystems can generate CO2-offset credits that can thus substitute for CO2 emissions reduction. Are biological CO2-uptake activities competitive with CO2 offsets from reduced fossil fuel use? In this paper, it is argued that transaction costs impose a formidable obstacle to direct substitution of carbon uptake offsets for emissions reduction in trading schemes, and that separate caps should be set for emissions reduction and sink-related activities. While a tax/subsidy scheme is preferred to emissions trading for incorporating biologically generated CO2 offsets, contracts that focus on the activity, and not the amount of carbon sequestered, are most likely to lead to the lowest transaction costs. Key words: carbon sequestration, transaction costs, climate change


2017 ◽  
Vol 14 (3) ◽  
pp. 557-578 ◽  
Author(s):  
MATTEO ROGGERO ◽  
ANDREAS THIEL

AbstractLocal administrations play a key role in delivering adaptation to climate change. To do so, they need to address collective action. Based on transaction costs economics, this paper explores the role of so-called integrative and segregative institutions in the way local administrations adapt – whether their different functional branches respond to climate change collectively rather than independently. Through a comparative analysis of 19 climate-sensitive local administrations in Germany, the paper shows that variation in the way local administrations structure their internal coordination determines the way they approach climate adaptation. Under integrative institutions, local administrations adjust prior coordination structures to accommodate adaptation. Under segregative institutions, administrations move towards integrative institutions in order to adapt, provided they already ‘feel’ climate change.


2017 ◽  
Vol 3 (1) ◽  
pp. 26
Author(s):  
Jan-Erik Lane

<p><em>The UNFCCC does not deliver policy implementation against climate change. This common pool regime has too many members, resulting in transaction costs skyrocketing. It confounds sustainable development with anti-global warming policy-making and implementation. He focus should be on the G20 countries plus Iran that are responsible for more than 2/3ds of CO2s. They must go first in global de-carbonisation, closing all coal plants, replacing them with solar and atomic power, and start using electrical vehicles instead of SUVs.</em><em></em></p>


2017 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Jan-Erik Lane

Economic outcomes tend to be best when there is no market failure, the standard textbook teaches us. Yet, the global economy in a broad sense, covering all consumers, firms and households is today plagued by externalities and free riding, as benefits from and costs for greenhouses gases are not tied together (Stern, 2007, 2015). Neither the UNFCCC nor the IPCC delivers real policy implementation against climate change (Conka, 2015; Vogler, 2016). This common pool regime (CPR) has too many members, resulting in transaction costs skyrocketing. It confounds sustainable development in general with specific anti-global warming policy-making and implementation of real results. The focus should be on the G20 countries plus Iran, as they are responsible for more than 2/3ds of all CO2s.


2015 ◽  
Vol 06 (01) ◽  
pp. 1550001 ◽  
Author(s):  
ALBERT N. HONLONKOU ◽  
RASHID M. HASSAN

Developing countries are struggling for finding resources to finance their adaptation to or mitigation of the effects of climate change. In that spirit, the Copenhagen summit, the fifteenth Conference of Parties (COP15) can be seen as a success since it ended with an important promise of creation of a common fund of $US 100 billions per year over the period 2013–2020 to help poor and emerging countries to support adoption of costly but eco-friendly technologies. However, implementation of former instruments shows mixed results. In this paper, we show that transaction costs effect dominates asymmetric information effect in impeding some developing countries to benefit from the clean development mechanism, one of the instruments of the implementation of the Kyoto Protocol. Thus environmental instruments may be useless if they are not supplemented by policies to reduce transaction costs in the host countries.


2019 ◽  
Vol 3 (6) ◽  
pp. 723-729
Author(s):  
Roslyn Gleadow ◽  
Jim Hanan ◽  
Alan Dorin

Food security and the sustainability of native ecosystems depends on plant-insect interactions in countless ways. Recently reported rapid and immense declines in insect numbers due to climate change, the use of pesticides and herbicides, the introduction of agricultural monocultures, and the destruction of insect native habitat, are all potential contributors to this grave situation. Some researchers are working towards a future where natural insect pollinators might be replaced with free-flying robotic bees, an ecologically problematic proposal. We argue instead that creating environments that are friendly to bees and exploring the use of other species for pollination and bio-control, particularly in non-European countries, are more ecologically sound approaches. The computer simulation of insect-plant interactions is a far more measured application of technology that may assist in managing, or averting, ‘Insect Armageddon' from both practical and ethical viewpoints.


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