Download Argument in the Greenhouse: The International Economics of by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith PDF

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By Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith

Masking either the constructing and constructed international, this publication identifies vital new rules to foster powerful agreements in emissions and stop international warming: reasonable rules which may still obtain overseas and family aid.

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Additional info for Argument in the Greenhouse: The International Economics of Controlling Global Warming

Sample text

Under this criterion only tradable permit systems and JI between committed countries can be considered efficient policy instruments; while international flat taxes and targets are inefficient or, in the terminology of the FCCC, not the most cost effective policy instruments. Uniform emission targets As currently defined, the FCCC sets out a co-operative agreement with uniform emissions limits for each Annex I country; these are expressed as a per centage of 1990 emissions. 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).

This result is in contrast to that of the partial Argument in the greenhouse 30 equilibrium analysis, where allocation of permits only affects the distribution of costs and benefits, and not the overall efficiency of the agreement. Using public revenue to buy permits on the open market incurs extra costs, due to either the distortions that taxation places on the economy (lump sum taxes are not available) or the opportunity cost of not using the revenue raised from non-distortionary energy taxes to reduce other taxes in the economy.

Same as IS92a. CFCs Same as IS92a, Global compliance plus many with OECD scheduled countries stabilise/reduce phase out CO2 emissions. of Montreal Protocol. 8000 EJ Same as IS92a. Same as Conventional IS92a. oil. 7300 EJ Natural gas. 4 per cent annually. Oil and gas Emission CFC same as controls production IS92c. 065/kWh. 272 EJ of biofuels available at $50/ barrel. CO, NOx, SOx for and NMVOC. industrial Halt countries, deforestation. Phase out Capture of HCFCs. emissions from coal mining and gas production.

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