Carbon leakage revisited: unilateral climate policy with directed technical change

Maria, Corrado Di; Werf, Edwin van der

doi:10.1007/s10640-007-9091-x

Cited by 132 publications

(62 citation statements)

References 21 publications

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“…Ranging from 6% to 16%, our leakage rates are low compared to much of the GHG mitigation policy modeling literature (47). Two plausible explanations are (i) our approach estimated market-mediated avoided deforestation that was not accounted in previous investigations of direct local land use effects of LSPs and (ii) the large magnitude of GHG abatement relative to the price impacts of the policies helped to ensure that the leakage § was relatively small.…”

Section: Discussionmentioning

confidence: 90%

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cohn

Mosnier

Havlík

et al. 2014

Proc. Natl. Acad. Sci. U.S.A.

207

136

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This study examines whether policies to encourage cattle ranching intensification in Brazil can abate global greenhouse gas (GHG) emissions by sparing land from deforestation. We use an economic model of global land use to investigate, from 2010 to 2030, the global agricultural outcomes, land use changes, and GHG abatement resulting from two potential Brazilian policies: a tax on cattle from conventional pasture and a subsidy for cattle from semiintensive pasture. We find that under either policy, Brazil could achieve considerable sparing of forests and abatement of GHGs, in line with its national policy targets. The land spared, particularly under the tax, is far less than proportional to the productivity increased. However, the tax, despite prompting less adoption of semi-intensive ranching, delivers slightly more forest sparing and GHG abatement than the subsidy. This difference is explained by increased deforestation associated with increased beef consumption under the subsidy and reduced deforestation associated with reduced beef consumption under the tax. Complementary policies to directly limit deforestation could help limit these effects. GHG abatement from either the tax or subsidy appears inexpensive but, over time, the tax would become cheaper than the subsidy. A revenue-neutral combination of the policies could be an element of a sustainable development strategy for Brazil and other emerging economies seeking to balance agricultural development and forest protection.agricultural intensification | land sparing | climate policy

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Section: Discussionmentioning

confidence: 90%

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cohn

Mosnier

Havlík

et al. 2014

Proc. Natl. Acad. Sci. U.S.A.

207

136

View full text Add to dashboard Cite

show abstract

“…In particular, Acemoglu (2003) shows that a typical capital-labor economy exhibits purely labor-augmenting progress under directed technical change. In the field of environmental economics, models with DTC are analyzed by Di Maria and Smulders (2004), Di Maria and van der Werf (2008), and André and Smulders (2006). To our knowledge, however, the existence of purely resource-augmenting technical progress in a capital-resource economy has not been micro-founded so far.…”

Section: Y(t) = F (K (T) M(t)r(t))mentioning

confidence: 99%

Hicks meets Hotelling: the direction of technical change in capital–resource economies

Maria¹,

Valente²

2008

Envir. Dev. Econ.

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ABSTRACT. We analyze a two-sector growth model with directed technical change where man-made capital and exhaustible resources are essential for production. The relative profitability of factor-specific innovations endogenously determines whether technical progress will be capital-or resource-augmenting. We show that any balanced growth equilibrium features purely resource-augmenting technical change. This result is compatible with alternative specifications of preferences and innovation technologies, as it hinges on the interplay between productive efficiency in the final sector, and the Hotelling rule characterizing the efficient depletion path for the exhaustible resource. Our result provides sound micro-foundations for the broad class of models of exogenous/endogenous growth where resource-augmenting progress is required to sustain consumption in the long run, contradicting the view that these models are conceptually biased in favor of sustainability.

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“…It should be noted, however, that such a shift to production from developing countries may come along with a transfer of clean technologies, which in turn mitigates the potential size of a green paradox (Di Maria and Van der Werf, 2008). Similarly, increased demand for transport in developing countries due to lower fuel prices may be partially…”

Section: Demand Side Restrictions and Imperfect Climate Policymentioning

confidence: 99%

Going Full Circle: Demandside Constraints to the Green Paradox

Maria¹,

Lange²,

Werf³

2014

Climate Policy and Nonrenewable Resources

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our arguments lead to clear policy recommendations. Terms of use: Documents in EconStor mayJEL-Code: Q310, Q380, Q580.

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Carbon leakage revisited: unilateral climate policy with directed technical change

Cited by 132 publications

References 21 publications

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation

Hicks meets Hotelling: the direction of technical change in capital–resource economies

Going Full Circle: Demandside Constraints to the Green Paradox

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