Cutting CO2 Emissions: The Effects of Alternative Policy Approaches*

Whalley, John; Wigle, Randall

doi:10.5547/issn0195-6574-ej-vol12-no1-7

Cited by 91 publications

(24 citation statements)

References 1 publication

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“…For example, if the only alternative to regulation at the point of extraction was regulation farther downstream (e.g., carbon-linked tariffs) (http://krugman.blogs.nytimes.com/ 2009/06/29/climate-trade-obama/), extracting countries might lose not just the value of their fossil resources but also the revenues that could be generated from taxes collected or permits sold (17). Indeed, at least one study has concluded that substantial reductions in emissions could be realized with near term gains in the GDP of oil-producing countries in the Middle East (18). Emissions instead regulated at the point of import, combustion, or consumption of goods would generate revenues in the country where the fuels are burned or goods are consumed.…”

Section: Discussionmentioning

confidence: 99%

The supply chain of CO₂emissions

Davis

Peters

Caldeira

2011

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

410

221

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CO 2 emissions from the burning of fossil fuels are conventionally attributed to the country where the emissions are produced (i.e., where the fuels are burned). However, these production-based accounts represent a single point in the value chain of fossil fuels, which may have been extracted elsewhere and may be used to provide goods or services to consumers elsewhere. We present a consistent set of carbon inventories that spans the full supply chain of global CO 2 emissions, finding that 10.2 billion tons CO 2 or 37% of global emissions are from fossil fuels traded internationally and an additional 6.4 billion tons CO 2 or 23% of global emissions are embodied in traded goods. Our results reveal vulnerabilities and benefits related to current patterns of energy use that are relevant to climate and energy policy. In particular, if a consistent and unavoidable price were imposed on CO 2 emissions somewhere along the supply chain, then all of the parties along the supply chain would seek to impose that price to generate revenue from taxes collected or permits sold. The geographical concentration of carbon-based fuels and relatively small number of parties involved in extracting and refining those fuels suggest that regulation at the wellhead, mine mouth, or refinery might minimize transaction costs as well as opportunities for leakage.carbon intensity of economy | emissions embodied in trade | emissions from traded fuels | international incidence of carbon price A nthropogenic climate change is driven by CO 2 emissions from the burning of fossil fuels (1, 2), which are generally attributed to the country where the emissions are produced (i.e., where the fuels are burned) (3). However, these productionbased accounts differ substantially and increasingly from consumption-based accounts of where goods associated with emissions are ultimately consumed, primarily because of exports from China and other emerging markets to consumers in developed countries (4-8). In addition, fossil fuel resources are more geographically concentrated than energy demand, and therefore, fuels burned to generate energy have, in many cases, been extracted far from the point of combustion and resulting CO 2 emissions (9). As a result, goods and services consumed in one country are commonly produced in another country using fossil fuels extracted in a third country. Understanding the distribution of interests along this supply chain may facilitate international efforts to limit CO 2 emissions from the burning of fossil fuels. The distribution of emissions along the supply chain also has important implications for the international incidence of the economic burden of a given climate policy. Given these implications, we present results from a model that tracks global CO 2 emissions from the source of extracted fossil fuels through the production of emissions during combustion of those fuels to the consumption of goods and services related to those emissions to generate a consistent set of accounts that span the global supply chain of CO 2 emissi...

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Section: Discussionmentioning

confidence: 99%

The supply chain of CO₂emissions

Davis

Peters

Caldeira

2011

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

410

221

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“…5 Also, the possible advantages of the adoption of extraction-based accounting 2 and policies 68 have been explored. In the short term, however, international agreement on a switch in the target base appears unlikely.…”

Section: Switching the Internationally Agreed Target Basementioning

confidence: 99%

Multiple carbon accounting to support just and effective climate policies

et al. 2015

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Negotiating greenhouse gas (GHG) emission reduction involves the allocation of emissions and of emission reductions to specific agents, and notably, within the current UN framework, to associated countries. As production takes place in supply chains, increasingly extending over several countries, there are various options available in which emissions originating from one and the same activity may be attributed to different agents along the supply chain and thus to different countries. In this way, several distinct types of national carbon accounts can be constructed. We argue that these accounts will typically differ as regards the information they provide to individual countries on the effects their actions have on global emissions; and they may also, to varying degrees, prove useful in supporting the pursuit of an effective and just climate policy. However, none of the accounting systems proves "best" in achieving these aims under real world circumstances; we thus suggest compiling reliable data to facilitate the consistent calculation of multiple carbon accounts on a global level.

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“…In the early 1990s, several studies used these models to assess the effects of policies which reduce CO 2 emissions. The work of Wigle (1991a and1991b) and Pezzey (1992) in this direction should be noted. These models are dynamic and focus Despite the recognized advantages of all these models, they can be criticized in several regards.…”

Section: Cge Applications For Analysis Of Environmental Policiesmentioning

confidence: 99%

The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey

Boccanfuso

Estache

Savard

2011

Journal of Development Studies

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In this paper we present a survey of distributional impact analysis of environmental policies envisaged or implemented to reduce greenhouse gaz emissions. The implementation of these policies usually aim at reducing greenhouse gases directly or indirectly. However, these policies can also produce important changes in factor allocation, relative prices in specific countries as well as on world markets when these policies are adopted by a large number of countries. The changes in welfare can be important for vulnerable groups of population in developing countries. This survey reviews the evidence on the incidence of these policies. In the process, it shows that the computable general equilibrium (CGE) microsimulation approach has not been fully exploited in the context of distributional impact analysis of CC policies..

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Cutting CO2 Emissions: The Effects of Alternative Policy Approaches*

Cited by 91 publications

References 1 publication

The supply chain of CO₂emissions

The supply chain of CO₂emissions

Multiple carbon accounting to support just and effective climate policies

The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey

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Cutting CO2 Emissions: The Effects of Alternative Policy Approaches*

Cited by 91 publications

References 1 publication

The supply chain of CO2emissions

The supply chain of CO2emissions

Multiple carbon accounting to support just and effective climate policies

The Intra-country Distributional Impact of Policies to Fight Climate Change: A Survey

Contact Info

Product

Resources

About

The supply chain of CO₂emissions

The supply chain of CO₂emissions