By Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith
Overlaying either the constructing and built global, this ebook identifies vital new regulations to foster powerful agreements in emissions and stop worldwide warming: practical guidelines which may still obtain overseas and household aid.
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Additional info for Argument in the Greenhouse: The International Economics of Controlling Global Warming
This type of agreement will only be economically efficient if all countries have identical abatement costs; heterogeneous abatement costs mean that some countries’ marginal abatement costs at equilibrium will be higher than others, which is Pareto inefficient (Hoel 1992, 1993). As is detailed in Chapter 4, econometric estimates of long run energy elasticities in the main developed countries (the G8) have shown that large differences do exist in the price sensitivity of fossil fuel consumption, and thus the implied marginal cost of emission.
A mixed macroeconometric and microeconomic model is constructed for India, and the costs of several future abatment commitments assessed. This type of modelling, based as it is on observable data, allows investigation of many interesting effects governing the potential for climate change agreement. The policy analysis in Part III aims to outline the theoretical questions involved in each issue, and then to pinpoint the particular quantitative measurements that are vital in deciding which effect will dominate in practice.
It should also be pointed out that any international co-ordination of enhancing carbon sink activity is fraught with difficulty, because of the counterfactual baselines involved. The easiest way to ensure achievement of a specific target is to use a quantity based scheme such as tradable emission permits, as these avoid the complexities of predicting the price reactions of countries; though of course they still do not solve the problem of carbon leakage if the treaty is incomplete. As long as international obligations to reduce CO2 emissions are limited to a few countries the problems of carbon leakage through energy market responses and industrial relocation will remain an obstacle to successful environmental protection.
Argument in the Greenhouse: The International Economics of Controlling Global Warming by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith