Downloads / Carbon tax

Carbon Taxation if Liquefied Coal will (not) Substitute Oil and Gas

Mr Florian Habermacher, Inst. of Intl. and Applied Econ. Research, Uni. of St.Gallen Current and conceivable near-term climate protection measures are regionally constrained. We analyse leakage effects of unilateral climate policies, separately for major fossil fuels. In a business-as-usual scenario without future technological changes, unilateral oil (or gas) consumption reductions through climate protection measures are subject to very large leakage effects over the long run: because these fuels are strongly exhaustible, our dynamic fuel-market model shows that demand in the part of the world without stringent climate policies will offset a large fraction of domestic emission reductions in the medium-run notably because the lower domestic consumption reduces the fuel prices on the global markets. This is different for coal, which is much more abundant even in the medium-term future. Because coal reserves are so large, simulations show that medium-term leakage rates are low for domestic coal reductions, as these reductions have a comparatively small effect on the coal prices in other parts of the world. In this scenario, a unilateral carbon tax on coal emissions should correspond approximately to the Read more…

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Carbon-Taxation-if-Liquefied-Coal-will-not-Substitute-Oil.pdf 473.99 KBHabermacher_Carbon-Taxation-if-Liquefied-Coal-will-not-Substitute-Oil.pdf 851.95 KB
20th
Sep
2012

Shipping Emissions Report CCC 2011

Neil Golborne, Committee on Climate Change The review has a number of key messages, including a recognition that current UK international shipping emissions are highly uncertain, but are likely to be in the range 12-16 MtCO2. It is suggested that there is scope for significant emissions reduction in shipping, beyond that targeted by the EEDI, but that this will require new policies. By 2050 UK international shipping emissions could account for up to 11% of allowed emissions, as such, international shipping emissions should ideally be included in the 2050 target. To enable this, the CCC propose three options for their inclusion: 1) In the 2050 target and carbon budgets now; 2) In the 2050 target and carbon budgets when progress has been made developing internationally agreed methodologies; and 3) In the 2050 target now, but in carbon budgets at a later date. The CCC is due to make a recommendation on which option should be pursued in spring 2012.

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Shipping Emissions Report CCC 2011.pdf 1.15 MB
17th
Nov
2011

How can Transport Change Enough?

Abigail Bristow, Loughborough University A range of issues for encouraging a shift towards low carbon transport are discussed. Recent trends show that many indicators are moving in the right direction in terms of passengers, freight and vehicles, but there is a need to reinforce and encourage these positive developments to continue. In part, this will require more effort to encourage behaviour change, which is necessary, but currently underplayed in policy, with a preference tending to be shown towards technology solutions. Possible costs of different measures are shown, based on a MAC curve from the Impact Assessment of the Carbon Reduction Strategy for Transport. Ultimately, it is suggested that an overarching framework is needed, whilst the public tend to support ‘pull’ measures, these tend to be less effective and instead there is a need for ‘push’ measures that provide a consistent framework for change, possibly through building support for framing measures if they are perceived to be both fair and effective. To help facilitate change there should also be support for local innovation, as well as support to help develop niche Read more…

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How can transport change enough 2009.pdf 458.45 KB
21st
Sep
2009

American Developments and Transatlantic Linking: advancing climate policies in the face of a global recession

Cameron Hepburn, Oxford University An overview of US climate bills, in context of EPA Regulations, the Waxman-Markely Bill and the Boxer-Kerry Bill is set out. Although action is happening fast, it is suggested that any progress prior to the Copenhagen climate talks is not anticipated. Comparing and linking analysis on carbon trading and global carbon markets between the US and the EU, suggests that, with fair political winds and careful steering, multilateral linking could occur over time. Linking different carbon trading schemes would bring the benefit of reducing costs and creating economic surplus.

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American developments and transatlantic linking 2009.pdf 1.53 MB
21st
Sep
2009

Personal Carbon Trading

Stephen Elderkin, DEFRA The role of personal carbon trading (PCT) is discussed in relation to emissions from leisure, aviation, personal car use, electricity, and domestic primary fuel. The case for PCT links to the relationships between emissions and energy demand, with demand being a function of the energy used across a range of energy services. Despite energy efficiency policy delivering savings, energy service demand is growing by around 0.5% per annum and PCT is seen as a possible route to help reduce this. The types of PCT vary, but generally: they require individuals to surrender allowances when purchasing energy; the total allowances are allocated free on a per capita basis; and they are tradable between individuals. It is suggested that the visibility and price signal provided by PCT would begin to influence behaviour, but in terms of cost-effectiveness, linking to marginal abatement options, international credits and resource costs of additional abatement, analysis suggests that the costs of PCT could be 15 times the benefit. A number of PCT myths are also discussed.

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Personal Carbon Trading 2008.pdf 131.89 KB
23rd
Apr
2008

Towards a Sustainable Transport System 2008

Adrian Gault, Department for Transport The context for sustainable transport is set out in respect to UK CO2 emissions and the literature that that has examined climate change and transport, including the Stern Review, the 2005 Eddington Study and the Climate Change Bill. Towards a Sustainable Transport System is the transport department’s response to these reports and policies, and it describes: the role of the transport sector in meeting the challenge of climate change and delivering economic growth; the policy and investment plans through to 2014; and a new approach to strategic transport planning for 2014-19 and beyond. This takes account of Stern’s point on the costs of action or inaction, and considers the different pathways for carbon reduction. Options examined include: carbon pricing; technology and innovation; and removing barriers to change. An overview of transport policies that are helping to reduce emissions is provided, along with details on the sources of evidence for tracking emissions. Several underlying challenges are set out in respect to the links between income and distances travelled, the ‘long tail’ associated with transport infrastructure and Read more…

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Towards a Sustainable Transport System 2008.pdf 2.22 MB
23rd
Jan
2008

Valuing Carbon: From theory to practice and back (again)

Professor Michael Grubb, The Carbon Trust  There are two main discourses around carbon, the first relating to what the cost of carbon should be. It is suggested that setting a legally-defined long term 2050 target is consistent with the literature on the economics of the problem. Secondly, what instrument is best to put a price on carbon is discussed, with a recognition that a rational approach needs to be international, but has to take account of additionality and political economy. It is suggested that basing a UK carbon price instrument on the EUETS makes sense, if the limitations of the EUETS are acknowledged and can be addressed over time. It is recognised that climate change creates some fundamental dilemmas in terms of how to enable investment in low carbon, with current theories not being adequate for the needs of policy; also it is suggested that neither the EWP nor the UK Climate Change Bill really solve the problem of low carbon investment security.

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Valuing Carbon 2007.pdf 331.3 KB
25th
Sep
2007

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