scholarly journals How Much Should We Spend to Fight against Climate Change? The Value of Backstop Technologies in a Simplified Model

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7781
Author(s):  
Carlos Pretel ◽  
Pedro Linares
Keyword(s):  
Climate Change ◽  
Willingness To Pay ◽  
Integrated Assessment ◽  
Social Cost ◽  
Ghg Emissions ◽  
Baseline Scenario ◽  
Energy Technology ◽  
The Social ◽  
Realistic Representation ◽  
Change Problem

The estimation of the social cost of climate change is typically carried out with complex, difficult to interpret, integrated assessment models (IAMs). Instead, this paper presents a simple, tractable model with which to estimate the willingness to pay of societies against climate change. The model is based on an already comprehensive and intuitive one developed by Besley and Dixit, which has been modified by including a backstop technology (e.g., a renewable energy technology). This improved formulation allows for a more realistic representation of the climate change problem in that it is able to include the decoupling of economic growth and GHG emissions. The model allows us to understand the implications of different assumptions, such as the rate of growth of the economy, or the damages expected from climate change, on the willingness to pay against it. Our results show that, for a baseline scenario, the willingness to pay (WTP) is 0.52% of annual GDP, lower than that obtained by Besley and Dixit, which shows the significant benefits of developing competitive mitigation technologies. Our results also show the benefits of international collaboration, or of devoting more resources to R&D, as efficient ways to fight against climate change.

SOME RESEARCH CHALLENGES IN THE ECONOMICS OF CLIMATE CHANGE

2016 ◽  
Vol 07 (02) ◽  
pp. 1650002 ◽  
Author(s):  
MARSHALL BURKE ◽  
MELANIE CRAXTON ◽  
CHARLES D. KOLSTAD ◽  
CHIKARA ONDA
Keyword(s):  
Climate Change ◽  
Integrated Assessment ◽  
Social Cost ◽  
Emissions Reduction ◽  
Social Cost Of Carbon ◽  
Relevant Research ◽  
Climate Policies ◽  
The Social ◽  
The World ◽  
Research Questions

The paper reviews progress in understanding the economics of climate change with an emphasis on identifying promising advances that are both significant and nonmarginal, as well as areas in which there are key gaps in our knowledge. We highlight several important areas in which important policy-relevant research questions remain: improving estimates of climate damage used for determining the social cost of carbon, refining integrated assessment models, and designing better climate policies. As the world moves to understand and implement country emissions reduction pledges in the context of the UNFCCC, understanding the economics of the problem will become even more important. The hope is that the paper is not only informative for existing economists already working in climate change economics, but that it also serves as an inspiration for economists in other areas, or even those in other disciplines, on ways in which to contribute to solving the problem at hand.

Bridging Theory and Practice

2019 ◽  
pp. 93-116
Author(s):  
Alix Dietzel
Keyword(s):  
Climate Change ◽  
Global Climate Change ◽  
Global Climate ◽  
Theory And Practice ◽  
Methodological Framework ◽  
Transnational Governance ◽  
The Social ◽  
Governance Processes ◽  
Change Problem ◽  
Climate Change Governance

Chapter Four sets out the parameters for the cosmopolitan assessment of climate governance. The chapter first provides overview of the processes involved in global climate change governance: multilateral (United Nations Framework for the Convention on Climate Change, or UNFCCC) and transnational (cities, corporations, NGOs, sub-state authorities). Following this, Chapter Four outlines why actors in the UNFCCC and actors involved in transnational governance processes can be held responsible for bringing about a just response to the climate change problem. The chapter grounds the responsibility of these actors in their capability to enable the three demands of justice set out in Chapter Three by restructuring the social and political context. Finally, Chapter Four outlines a methodological framework to clarify how current practice will be assessed. This framework is based on a four-point hierarchy that can be used to investigate to what extent global governance actors enable each demand of justice.

scholarly journals Evaluating the Link between Low Carbon Reductions Strategies and Its Performance in the Context of Climate Change: A Carbon Footprint of a Wood-Frame Residential Building in Quebec, Canada

2018 ◽  
Vol 10 (8) ◽  
pp. 2715 ◽  
Author(s):  
Alejandro Padilla-Rivera ◽  
Ben Amor ◽  
Pierre Blanchet
Keyword(s):  
Climate Change ◽  
Carbon Footprint ◽  
Climate Change Mitigation ◽  
Ghg Emissions ◽  
Mitigation Strategies ◽  
Quebec City ◽  
Baseline Scenario ◽  
Low Carbon ◽  
Building Sector ◽  
Change Mitigation

The design and study of low carbon buildings is a major concern in a modern economy due to high carbon emissions produced by buildings and its effects on climate change. Studies have investigated (CFP) Carbon Footprint of buildings, but there remains a need for a strong analysis that measure and quantify the overall degree of GHG emissions reductions and its relationship with the effect on climate change mitigation. This study evaluates the potential of reducing greenhouse gas (GHG) emissions from the building sector by evaluating the (CFP) of four hotpots approaches defined in line with commonly carbon reduction strategies, also known as mitigation strategies. CFP framework is applied to compare the (CC) climate change impact of mitigation strategies. A multi-story timber residential construction in Quebec City (Canada) was chosen as a baseline scenario. This building has been designed with the idea of being a reference of sustainable development application in the building sector. In this scenario, the production of materials and construction (assembly, waste management and transportation) were evaluated. A CFP that covers eight actions divided in four low carbon strategies, including: low carbon materials, material minimization, reuse and recycle materials and adoption of local sources and use of biofuels were evaluated. The results of this study shows that the used of prefabricated technique in buildings is an alternative to reduce the CFP of buildings in the context of Quebec. The CC decreases per m2 floor area in baseline scenario is up to 25% than current buildings. If the benefits of low carbon strategies are included, the timber structures can generate 38% lower CC than the original baseline scenario. The investigation recommends that CO2eq emissions reduction in the design and implementation of residential constructions as climate change mitigation is perfectly feasible by following different working strategies. It is concluded that if the four strategies were implemented in current buildings they would have environmental benefits by reducing its CFP. The reuse wood wastes into production of particleboard has the greatest environmental benefit due to temporary carbon storage.

scholarly journals EMPIRICALLY CONSTRAINED CLIMATE SENSITIVITY AND THE SOCIAL COST OF CARBON

2017 ◽  
Vol 08 (02) ◽  
pp. 1750006 ◽  
Author(s):  
KEVIN DAYARATNA ◽  
ROSS McKITRICK ◽  
DAVID KREUTZER
Keyword(s):  
Climate Sensitivity ◽  
Integrated Assessment ◽  
Social Cost ◽  
Climate Model ◽  
Temperature Response ◽  
Social Cost Of Carbon ◽  
Ocean Heat Uptake ◽  
Monte Carlo Experiments ◽  
The Social ◽  
Dice Model

Integrated Assessment Models (IAMs) require parameterization of both economic and climatic processes. The latter includes Equilibrium Climate Sensitivity (ECS), or the temperature response to doubling CO2 levels, and Ocean Heat Uptake (OHU) efficiency. ECS distributions in IAMs have been drawn from climate model runs that lack an empirical basis, and in Monte Carlo experiments may not be constrained to consistent OHU values. Empirical ECS estimates are now available, but have not yet been applied in IAMs. We incorporate a new estimate of the ECS distribution conditioned on observed OHU efficiency into two widely used IAMs. The resulting Social Cost of Carbon (SCC) estimates are much lower than those from models based on simulated ECS parameters. In the DICE model, the average SCC falls by approximately 40–50% depending on the discount rate, while in the FUND model the average SCC falls by over 80%. The span of estimates across discount rates also shrinks substantially.

scholarly journals SOCIAL AND PRIVATE PROFITABILITY OF TREE-BASED ADAPTATION OPTIONS TO CLIMATE CHANGE IN A DRYLAND AREA OF TUNISIA

New Medit ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 89-104
Author(s):  
Hamed Daly-Hassen ◽  
Mohamed Annabi ◽  
Caroline King-Okumu
Keyword(s):  
Climate Change ◽  
Social Cost ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Olive Tree ◽  
Benefit Analysis ◽  
Tree Plantation ◽  
Agricultural Water Use ◽  
The Social ◽  
Olive Trees

Climate change exacerbates the effects of water scarcity on livelihoods. Governments can intervene by structuring incentives for agricultural adaptations so that farmers can choose the ones that create more benefits for the society as a whole. This requires consideration of a range of different benefits to different groups within the social cost-benefit analysis (CBA). We assess the social and private profitability of two alternative tree-based adaptation techniques that have received state support in the traditional barley cropping/rangeland systems in Central Tunisia: olive tree plantation, and intercropping with cactus. The results showed that society does not benefit from offering incentives for olive production. The production of irrigated olive trees without incentives is profitable for farmers and for society, while rainfed plantation is not profitable at all. However, it is possible for farmers to increase their incomes without increasing agricultural water use if they are encouraged to adopt intercropping with cactus to supplement livestock food and watering. The findings highlight scope for policies to balance between returns both for society, and for farmers, as revealed through the application of quantitative social CBA.

scholarly journals Estimates of the social cost of carbon have not changed over time

2021 ◽  
Author(s):  
Richard Tol
Keyword(s):  
Climate Change ◽  
Stationary Distribution ◽  
Social Cost ◽  
Meta Analysis ◽  
Kernel Density ◽  
Social Cost Of Carbon ◽  
Almost Everywhere ◽  
The Social ◽  
Carbon Prices ◽  
Over Time

Abstract Some claim that as knowledge about climate change accumulates, the social cost of carbon increases. A meta-analysis of published estimates shows that this is not the case. Correcting for inflation and emission year and controlling for the discount rate, kernel density decomposition reveals a stationary distribution. Actual carbon prices are almost everywhere below the estimated social cost of carbon.

scholarly journals Fat Tails and the Social Cost of Carbon

2014 ◽  
Vol 104 (5) ◽  
pp. 544-546 ◽  
Author(s):  
Martin L. Weitzman
Keyword(s):  
Climate Change ◽  
Relative Risk ◽  
Risk Aversion ◽  
Strong Influence ◽  
Social Cost ◽  
Relative Risk Aversion ◽  
Fat Tails ◽  
Social Cost Of Carbon ◽  
The Social ◽  
Climate Damages

At high enough greenhouse gas concentrations, climate change might conceivably cause catastrophic damages with small but non-negligible probabilities. If the bad tail of climate damages is sufficiently fat, and if the coefficient of relative risk aversion is greater than one, the catastrophe-reducing insurance aspect of mitigation investments could in theory have a strong influence on raising the social cost of carbon. In this paper I exposit the influence of fat tails on climate change economics in a simple stark formulation focused on the social cost of carbon. I then attempt to place the basic underlying issues within a balanced perspective.

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