The Institutional Economics of Market-Based Climate Policy

The Institutional Economics of Market-Based Climate Policy

Author: E. Woerdman

Publisher: Elsevier

Published: 2004-08-10

Total Pages: 341

ISBN-13: 0080473067

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The objective of this book is to analyze the institutional barriers to implementing market-based climate policy, as well as to provide some opportunities to overcome them. The approach is that of institutional economics, with special emphasis on political transaction costs and path dependence. Instead of rejecting the neoclassical approach, this book uses it where fruitful and shows when and why it is necessary to employ a new or neo-institutionalist approach. The result is that equity is considered next to efficiency, that the evolution and possible lock-in of both formal and informal climate institutions are studied, and that attention is paid to the politics and law of economic instruments for climate policy, including some new empirical analyses. The research topics of this book include the set-up costs of a permit trading system, the risk that credit trading becomes locked-in, the potential legal problem of grandfathering in terms of actional subsidies under WTO law or state aid under EC law, and the changing attitudes of various European officials towards restricting the use of the Kyoto Mechanisms.


Book Synopsis The Institutional Economics of Market-Based Climate Policy by : E. Woerdman

Download or read book The Institutional Economics of Market-Based Climate Policy written by E. Woerdman and published by Elsevier. This book was released on 2004-08-10 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this book is to analyze the institutional barriers to implementing market-based climate policy, as well as to provide some opportunities to overcome them. The approach is that of institutional economics, with special emphasis on political transaction costs and path dependence. Instead of rejecting the neoclassical approach, this book uses it where fruitful and shows when and why it is necessary to employ a new or neo-institutionalist approach. The result is that equity is considered next to efficiency, that the evolution and possible lock-in of both formal and informal climate institutions are studied, and that attention is paid to the politics and law of economic instruments for climate policy, including some new empirical analyses. The research topics of this book include the set-up costs of a permit trading system, the risk that credit trading becomes locked-in, the potential legal problem of grandfathering in terms of actional subsidies under WTO law or state aid under EC law, and the changing attitudes of various European officials towards restricting the use of the Kyoto Mechanisms.

Environmental Commodities Markets and Emissions Trading

Environmental Commodities Markets and Emissions Trading

Author: Blas Luis Pérez Henríquez

Publisher: Routledge

Published: 2013

Total Pages: 298

ISBN-13: 1617260940

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Market-based solutions to environmental problems offer great promise, but require complex public policies that take into account the many institutional factors necessary for the market to work and that guard against the social forces that can derail good public policies. Using insights about markets from the new institutional economics, this book sheds light on the institutional history of the emissions trading concept as it has evolved across different contexts. It makes accessible the policy design and practical implementation aspects of a key tool for fighting climate change: emissions trading systems (ETS) for environmental control. Blas Luis Pérez Henríquez analyzes past market-based environmental programs to extract lessons for the future of ETS. He follows the development of the emissions trading concept as it evolved in the United States and was later applied in the multinational European Emissions Trading System and in sub-national programs in the United States such as the Regional Greenhouse Gas Initiative (RGGI) and California's ETS. This ex-post evaluation of an ETS as it evolves in real time in the real world provides a valuable supplement to what is already known from theoretical arguments and simulation studies about the advantages and disadvantages of the market strategy. Political cycles and political debate over the use of markets for environmental control make any form of climate policy extremely contentious. Pérez Henríquez argues that, despite ideological disagreements, the ETS approach, or, more popularly, 'cap-and-trade' policy design, remains the best hope for a cost-effective policy to reduce GHG emissions around the world.


Book Synopsis Environmental Commodities Markets and Emissions Trading by : Blas Luis Pérez Henríquez

Download or read book Environmental Commodities Markets and Emissions Trading written by Blas Luis Pérez Henríquez and published by Routledge. This book was released on 2013 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: Market-based solutions to environmental problems offer great promise, but require complex public policies that take into account the many institutional factors necessary for the market to work and that guard against the social forces that can derail good public policies. Using insights about markets from the new institutional economics, this book sheds light on the institutional history of the emissions trading concept as it has evolved across different contexts. It makes accessible the policy design and practical implementation aspects of a key tool for fighting climate change: emissions trading systems (ETS) for environmental control. Blas Luis Pérez Henríquez analyzes past market-based environmental programs to extract lessons for the future of ETS. He follows the development of the emissions trading concept as it evolved in the United States and was later applied in the multinational European Emissions Trading System and in sub-national programs in the United States such as the Regional Greenhouse Gas Initiative (RGGI) and California's ETS. This ex-post evaluation of an ETS as it evolves in real time in the real world provides a valuable supplement to what is already known from theoretical arguments and simulation studies about the advantages and disadvantages of the market strategy. Political cycles and political debate over the use of markets for environmental control make any form of climate policy extremely contentious. Pérez Henríquez argues that, despite ideological disagreements, the ETS approach, or, more popularly, 'cap-and-trade' policy design, remains the best hope for a cost-effective policy to reduce GHG emissions around the world.

Creating a Sustainable Economy

Creating a Sustainable Economy

Author: Gerardo Marletto

Publisher: Routledge

Published: 2013-06-19

Total Pages: 290

ISBN-13: 1136307044

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This book is designed for those scholars, students, policy-makers – or just curious readers– who are looking for heterodox thinking on the issue of environmental economics and policy. Contributions to this book draw on multiple streams of institutional and evolutionary economics and help build an approach to environmental policy that radically diverges from mainstream prescriptions. No 'silver bullet' solutions emerge from the analyses. Even market-based tools – such as green taxes or tradable pollution permits – are bound to fail if they are not incorporated into an integrated, multi-dimensional and multi-actor policy for structural change.


Book Synopsis Creating a Sustainable Economy by : Gerardo Marletto

Download or read book Creating a Sustainable Economy written by Gerardo Marletto and published by Routledge. This book was released on 2013-06-19 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is designed for those scholars, students, policy-makers – or just curious readers– who are looking for heterodox thinking on the issue of environmental economics and policy. Contributions to this book draw on multiple streams of institutional and evolutionary economics and help build an approach to environmental policy that radically diverges from mainstream prescriptions. No 'silver bullet' solutions emerge from the analyses. Even market-based tools – such as green taxes or tradable pollution permits – are bound to fail if they are not incorporated into an integrated, multi-dimensional and multi-actor policy for structural change.

The Cultures of Markets

The Cultures of Markets

Author: Janelle Kallie Knox

Publisher: Oxford University Press

Published: 2016

Total Pages: 344

ISBN-13: 0198718454

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Climate change is one of the biggest challenges of the 21st century. Countries around the globe are developing emissions markets as a response to it. This book examines the cultures of these markets, arguing policy makers must include more flexibility in climate policy to allow emissions markets to be translated and transferred across regions.


Book Synopsis The Cultures of Markets by : Janelle Kallie Knox

Download or read book The Cultures of Markets written by Janelle Kallie Knox and published by Oxford University Press. This book was released on 2016 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: Climate change is one of the biggest challenges of the 21st century. Countries around the globe are developing emissions markets as a response to it. This book examines the cultures of these markets, arguing policy makers must include more flexibility in climate policy to allow emissions markets to be translated and transferred across regions.

The Politics of Carbon Markets

The Politics of Carbon Markets

Author: Benjamin Stephan

Publisher: Routledge

Published: 2014-08-27

Total Pages: 439

ISBN-13: 1134590121

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The carbon markets are in the middle of a fundamental crisis - a crisis marked by collapsing prices, fleeing actors, and ever increasing greenhouse gas levels. Yet carbon trading remains at the heart of global attempts to respond to climate change. Not only this, but markets continue to proliferate - particularly in the Global South. The Politics of Carbon Markets helps to make sense of this paradox and brings two urgently needed insights to the analysis of carbon markets. First, the markets must be understood in relation to the politics involved in their development, maintenance and opposition. Second, this politics is multiform and pervasive. Implementation of new techniques and measuring tools, policy development and contestation, and the structuring context of institutional settings and macro-social forces all involve a variety of political actors and create new forms of political agency. The contributions study the total extent of the carbon markets, from their prehistory to their contemporary expansion and wider impacts. This wide-ranging political perspective on the carbon markets is invaluable to those studying and interested in ecological markets, climate change governance and environmental politics.


Book Synopsis The Politics of Carbon Markets by : Benjamin Stephan

Download or read book The Politics of Carbon Markets written by Benjamin Stephan and published by Routledge. This book was released on 2014-08-27 with total page 439 pages. Available in PDF, EPUB and Kindle. Book excerpt: The carbon markets are in the middle of a fundamental crisis - a crisis marked by collapsing prices, fleeing actors, and ever increasing greenhouse gas levels. Yet carbon trading remains at the heart of global attempts to respond to climate change. Not only this, but markets continue to proliferate - particularly in the Global South. The Politics of Carbon Markets helps to make sense of this paradox and brings two urgently needed insights to the analysis of carbon markets. First, the markets must be understood in relation to the politics involved in their development, maintenance and opposition. Second, this politics is multiform and pervasive. Implementation of new techniques and measuring tools, policy development and contestation, and the structuring context of institutional settings and macro-social forces all involve a variety of political actors and create new forms of political agency. The contributions study the total extent of the carbon markets, from their prehistory to their contemporary expansion and wider impacts. This wide-ranging political perspective on the carbon markets is invaluable to those studying and interested in ecological markets, climate change governance and environmental politics.

The Economics and Politics of Climate Change

The Economics and Politics of Climate Change

Author: Dieter Helm

Publisher: OUP Oxford

Published: 2009-10-29

Total Pages: 576

ISBN-13: 0191610232

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The international framework for a climate change agreement is up for review as the initial Kyoto period to 2012 comes to an end. Though there has been much enthusiasm from political and environmental groups, the underlying economics and politics remain highly controversial. This book takes a cool headed look at the critical roadblocks to agreement, examining the economics of climate change, the incentives of the main players (the US, EU, China) and examines the policies governments can put in place to reduce greenhouse gas emissions, and ultimately shift our economies onto a low-carbon path. The volume brings together leading climate change policy experts to set out the economic analysis and the nature of the negotiations at Copenhagen and beyond. In addition to reviewing the main issues discussed above, a number of the articles question the basis of much of the climate change consensus, and debate the Stern Report's main findings. The book is in four parts. Following an overview of the main issues, the first part is a reassessment of the economics of climate change. This is fundamental to the rest of the volume, and it contains new material which goes well beyond what might be called the new conventional wisdom. The second part looks at the geography of the costs and benefits of climate change - the very different perspectives of Africa, China, the US and Europe. These chapters provide a building block to considering the prospects for a new global agreement - the very different interests that will have to be reconciled at Copenhagen and beyond. The third part looks at policy instruments at the global level (whereas much of the literature to date is nationally and regionally based). Trading and R&D feature in the chapters, but so too do more radical unilateral options, including geo-engineering. Part four turns to the institutional architecture - drawing on evidence from previous attempts in other areas, as well as proposals for new bodies.


Book Synopsis The Economics and Politics of Climate Change by : Dieter Helm

Download or read book The Economics and Politics of Climate Change written by Dieter Helm and published by OUP Oxford. This book was released on 2009-10-29 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt: The international framework for a climate change agreement is up for review as the initial Kyoto period to 2012 comes to an end. Though there has been much enthusiasm from political and environmental groups, the underlying economics and politics remain highly controversial. This book takes a cool headed look at the critical roadblocks to agreement, examining the economics of climate change, the incentives of the main players (the US, EU, China) and examines the policies governments can put in place to reduce greenhouse gas emissions, and ultimately shift our economies onto a low-carbon path. The volume brings together leading climate change policy experts to set out the economic analysis and the nature of the negotiations at Copenhagen and beyond. In addition to reviewing the main issues discussed above, a number of the articles question the basis of much of the climate change consensus, and debate the Stern Report's main findings. The book is in four parts. Following an overview of the main issues, the first part is a reassessment of the economics of climate change. This is fundamental to the rest of the volume, and it contains new material which goes well beyond what might be called the new conventional wisdom. The second part looks at the geography of the costs and benefits of climate change - the very different perspectives of Africa, China, the US and Europe. These chapters provide a building block to considering the prospects for a new global agreement - the very different interests that will have to be reconciled at Copenhagen and beyond. The third part looks at policy instruments at the global level (whereas much of the literature to date is nationally and regionally based). Trading and R&D feature in the chapters, but so too do more radical unilateral options, including geo-engineering. Part four turns to the institutional architecture - drawing on evidence from previous attempts in other areas, as well as proposals for new bodies.

The Evolving Relationship between Economy and Environment

The Evolving Relationship between Economy and Environment

Author: Kazuhiro Okuma

Publisher: Springer

Published: 2017-03-29

Total Pages: 143

ISBN-13: 9811041008

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This book sheds new light on the relationship between economy and the environment by approaching the issue from evolutionary and institutional economics. Building a framework of theory and empirical analysis, it provides an in-depth perspective on how economic growth and environmental policy interact and historically evolve. Orthodox environmental economics usually understands environmental issues under the rules of market economy, while environmental sciences subordinate economy to physical constraints of the environment. Instead of these hierarchical visions, this book recognizes economy and the environment as co-evolving systems. The theoretical framework is elaborated based on the régulation and post-Keynesian theories combined. An idea of three-dimensional factors—capital, labor, and the environment—leads to conceptual and mathematical models, which will be applicable to wider analyses. Using this framework, Japanese history is analyzed as a typical example of environmental policy development. Historical transformations of environmental policies and growth regimes are explained using indices and econometric analysis. Experiences of strict regulations with positive economic impacts are also identified. These works lead to some interesting implications, which include mechanisms, the possibility, and conditions of "green growth''. This book proposes a new approach by bridging the gap between evolutionary–institutional economics and environmental economics, which should be stimulating to them both and possibly open the door for a new research avenue.


Book Synopsis The Evolving Relationship between Economy and Environment by : Kazuhiro Okuma

Download or read book The Evolving Relationship between Economy and Environment written by Kazuhiro Okuma and published by Springer. This book was released on 2017-03-29 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book sheds new light on the relationship between economy and the environment by approaching the issue from evolutionary and institutional economics. Building a framework of theory and empirical analysis, it provides an in-depth perspective on how economic growth and environmental policy interact and historically evolve. Orthodox environmental economics usually understands environmental issues under the rules of market economy, while environmental sciences subordinate economy to physical constraints of the environment. Instead of these hierarchical visions, this book recognizes economy and the environment as co-evolving systems. The theoretical framework is elaborated based on the régulation and post-Keynesian theories combined. An idea of three-dimensional factors—capital, labor, and the environment—leads to conceptual and mathematical models, which will be applicable to wider analyses. Using this framework, Japanese history is analyzed as a typical example of environmental policy development. Historical transformations of environmental policies and growth regimes are explained using indices and econometric analysis. Experiences of strict regulations with positive economic impacts are also identified. These works lead to some interesting implications, which include mechanisms, the possibility, and conditions of "green growth''. This book proposes a new approach by bridging the gap between evolutionary–institutional economics and environmental economics, which should be stimulating to them both and possibly open the door for a new research avenue.

Finance & Development, December 2019

Finance & Development, December 2019

Author: International Monetary Fund. Communications Department

Publisher: International Monetary Fund

Published: 2019-12-06

Total Pages: 68

ISBN-13: 1513513176

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This issue of Finance & Development looks at the economic and financial impact of climate policy choices. It points to concrete solutions that offer growth opportunities, driven by technological innovation, sustainable investment, and a dynamic private sector. The private sector can stop supporting or subsidizing industries and activities that damage the planet and instead invest in sustainable development. Governments can roll out policies to fight climate change and the destruction of nature. The paper highlights that technological change and innovations are central to longer-term efforts to mitigate climate change by developing alternatives to fossil fuels. A new, sustainable financial system is under construction. It is funding the initiatives and innovations of the private sector and amplifying the effectiveness of governments’ climate policies—it could even accelerate the transition to a low-carbon economy. The Bank of England’s latest survey finds that almost three-quarters of banks are starting to treat the risks from climate change like other financial risks—rather than viewing them simply as a corporate social responsibility. Banks have begun to consider the most immediate physical risks to their business models—from the exposure of mortgage books to flood risk to the impact of extreme weather events on sovereign risk.


Book Synopsis Finance & Development, December 2019 by : International Monetary Fund. Communications Department

Download or read book Finance & Development, December 2019 written by International Monetary Fund. Communications Department and published by International Monetary Fund. This book was released on 2019-12-06 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This issue of Finance & Development looks at the economic and financial impact of climate policy choices. It points to concrete solutions that offer growth opportunities, driven by technological innovation, sustainable investment, and a dynamic private sector. The private sector can stop supporting or subsidizing industries and activities that damage the planet and instead invest in sustainable development. Governments can roll out policies to fight climate change and the destruction of nature. The paper highlights that technological change and innovations are central to longer-term efforts to mitigate climate change by developing alternatives to fossil fuels. A new, sustainable financial system is under construction. It is funding the initiatives and innovations of the private sector and amplifying the effectiveness of governments’ climate policies—it could even accelerate the transition to a low-carbon economy. The Bank of England’s latest survey finds that almost three-quarters of banks are starting to treat the risks from climate change like other financial risks—rather than viewing them simply as a corporate social responsibility. Banks have begun to consider the most immediate physical risks to their business models—from the exposure of mortgage books to flood risk to the impact of extreme weather events on sovereign risk.

Using the Market to Address Climate Change

Using the Market to Address Climate Change

Author: Joseph E. Aldy

Publisher:

Published: 2011

Total Pages: 0

ISBN-13:

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Emissions of greenhouse gases linked with global climate change are affected by diverse aspects of economic activity, including individual consumption, business investment, and government spending. An effective climate policy will have to modify the decision calculus for these activities in the direction of more efficient generation and use of energy, lower carbon intensity of energy, and - more broadly - a more carbon-lean economy. The only approach to doing this on a meaningful scale that would be technically feasible and cost-effective is carbon pricing, that is, market-based climate policies that place a shadow-price on carbon dioxide emissions. We examine alternative designs of three such instruments - carbon taxes, cap-and-trade, and clean energy standards. We note that the U.S. political response to possible market-based approaches to climate policy has been and will continue to be largely a function of issues and structural factors that transcend the scope of environmental and climate policy.


Book Synopsis Using the Market to Address Climate Change by : Joseph E. Aldy

Download or read book Using the Market to Address Climate Change written by Joseph E. Aldy and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Emissions of greenhouse gases linked with global climate change are affected by diverse aspects of economic activity, including individual consumption, business investment, and government spending. An effective climate policy will have to modify the decision calculus for these activities in the direction of more efficient generation and use of energy, lower carbon intensity of energy, and - more broadly - a more carbon-lean economy. The only approach to doing this on a meaningful scale that would be technically feasible and cost-effective is carbon pricing, that is, market-based climate policies that place a shadow-price on carbon dioxide emissions. We examine alternative designs of three such instruments - carbon taxes, cap-and-trade, and clean energy standards. We note that the U.S. political response to possible market-based approaches to climate policy has been and will continue to be largely a function of issues and structural factors that transcend the scope of environmental and climate policy.

Markets and the Environment

Markets and the Environment

Author: Nathaniel O. Keohane

Publisher:

Published: 2007

Total Pages: 296

ISBN-13:

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Markets and the Environment is a concise yet comprehensive introduction to a topic of central importance in understanding a wide range of environmental issues and policy approaches. It offers a clear overview of the fundamentals of environmental economics that will enable students and professionals to quickly grasp important concepts and to apply those concepts to real-world environmental problems. In addition, the book integrates normative, policy, and institutional issues at a principles level. Chapters examine: the benefits and costs of environmental protection, markets and market failure, natural resources as capital assets, and sustainability and economic development. Markets and the Environment is the second volume in the Foundations of Contemporary Environmental Studies Series, edited by James Gustave Speth. The series presents concise guides to essential subjects in the environmental curriculum, incorporating a problem-based approach to teaching and learning.


Book Synopsis Markets and the Environment by : Nathaniel O. Keohane

Download or read book Markets and the Environment written by Nathaniel O. Keohane and published by . This book was released on 2007 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: Markets and the Environment is a concise yet comprehensive introduction to a topic of central importance in understanding a wide range of environmental issues and policy approaches. It offers a clear overview of the fundamentals of environmental economics that will enable students and professionals to quickly grasp important concepts and to apply those concepts to real-world environmental problems. In addition, the book integrates normative, policy, and institutional issues at a principles level. Chapters examine: the benefits and costs of environmental protection, markets and market failure, natural resources as capital assets, and sustainability and economic development. Markets and the Environment is the second volume in the Foundations of Contemporary Environmental Studies Series, edited by James Gustave Speth. The series presents concise guides to essential subjects in the environmental curriculum, incorporating a problem-based approach to teaching and learning.