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Making Climate Change Policies Fit their Own Domain

A new framework acts as a sound guide for policy formation.There is a widely held narrative for climate policy that runs something like this: The costs of damage due to greenhouse gas emissions are not reflected in economic decisions.  This...

Posted November 3, 2014    

Costing Damages from Climate Change Offers Only a Partial Guide to Choice of Policy

Estimates of the cost of damages from greenhouse gas emissions are more use for ruling in policy measures than ruling them out.Estimates of the cost of the damages caused by greenhouse gas emissions are widely used to assess the cost effectiveness...

Posted October 15, 2014    

Carbon Regulation Becomes the Norm

Regulation of greenhouse gas emissions, including caps and prices, is spreading around the world. Jurisdictions without something in place are becoming the exception.Back in January I noted that carbon pricing is in place or legislated in...

Posted October 2, 2014    

Transmission Links to Enable Wind Energy

The availability of long distance transmission systems can help smooth out variations in availability of wind power, but helps solar less. Policy needs to enable long-distance links to allow continuing increases in wind generation.One of the...

Posted September 17, 2014    

Could Rising Aviation Emissions be Good for the Environment?

International aviation sector is likely to require a substantial number of offsets to meet its goal of achieving carbon neutrality above a 2020 baseline.  If these offsets are forestry related there is the possibility of generating substantial...

Posted July 14, 2014    

The Need for a Trend Break in the Carbon Intensity of Energy Use

Looking at past changes in each driver of total emissions emphasises the necessity of deploying very low carbon technologies. There has been some recent discussion about the Kaya identity, which breaks down emissions from energy use into...

Posted June 30, 2014    

Types of Carbon Pricing, Part 3 of 3

This is the last of three posts summarising the differing features of carbon pricing instruments – emissions trading (cap-and-trade), carbon taxes, and hybrids – and commenting on some of the implications for existing carbon pricing schemes.  ...

Posted May 15, 2014    

Types of Carbon Pricing, Part 2 of 3

This post is the second of three summarising the differing features of carbon pricing instruments – emissions trading (cap-and-trade), carbon taxes, and hybrids – and commenting on some of the implications for existing carbon pricing schemes.  ...

Posted May 7, 2014    

Types of Carbon Pricing: Part 1 of 3

This post is the first of three summarising the differing features of carbon pricing instruments – emissions trading (cap-and-trade), carbon taxes, and hybrids – and commenting on some of the implications for existing carbon pricing schemes.  ...

Posted April 30, 2014    

Failings of Market Failure as a Guide to Policy

The orthodox economic framework for analysing climate policy in terms of correcting market failures contains important insights, but is too narrow to identify a complete set of policies. This post is a little more abstract than usual, with no...

Posted April 7, 2014    

The Case for the EUETS Market Stability Reserve Looks in Need of Further Evidence

The market stability reserve proposed for the EUETS would be a significant change to the world’s largest carbon market. It also raises wider question about attitudes to the efficiency of carbon markets over time.In response to the continuing...

Posted March 24, 2014    

Making a Low Carbon Future Better as Well as Cheaper

Framing of decarbonisation pathways needs to take the value in use of low carbon technologies into account.  This can provide a fuller and more positive guide to policy than analysis of marginal abatement costs alone.  Much analysis of...

Posted March 5, 2014