Unemployment effects of climate policy

This paper models the unemployment effects of restrictions on greenhouse gas emissions, embodying two of the most significant types of short-term economic imperfections that generate unemployment: sectoral rigidities in labor mobility and sectoral rigidities in wage adjustments. A labor policy is also analyzed that would reduce the direct negative economic effects of the emissions restrictions.The politics of limiting greenhouse gas emissions are often dominated by relatively short-term considerations. Yet the current economic modeling of emissions limitations does not embody economic features that are likely to be particularly important in the short term, in particular, the politically sensitive unemployment rate. Moreover, only a few of these studies also consider policies that would offset the negative direct economic effects of emissions restrictions. For plausible estimates of the parameters, the model shows that, with the labor market imperfections, if there were no offsetting policies, the reductions in GNP in the U.S. in the first 10 years after emissions restrictions were imposed would be as much as 4%. However, if there were two policies, instead of just one: a counteracting labor market policy, as well as the emissions restrictions, the negative direct economic effects could be completely eliminated.     

全球气候变化政策的多哈站

本次气候大会的有限进展和成果可归结为两个关键词:差距(Gap),是政治承诺和科学发现的差距,是当前承诺离实现两度温控目标的差距,是会议成果与公众和社会期待的差距;脱节(Disconnect),是美、日、加、俄、新等国家和京都二期的脱节,是现实绿色气候基金与兑现每年1000亿美元融资的脱节,是谈判进程缓慢与气候变化加剧所需的快速行动的脱节。     

The fiscal implications of climate change and policy responses

This paper is concerned with the implications of climate change, and government policies to address it, for countries’ fiscal systems at the national level. Given the uncertainties associated with climate change and countries’ responses to it, the article can do no more than review and suggest some of the major issues of likely importance for fiscal sustainability and how they might be addressed. First the paper defines fiscal sustainability and addresses some general issues related to countries’ attempts to adapt to or mitigate climate change. It then works through a number of more specific issues, discussing policies such as the implementation of environmental taxes or other instruments for the mitigation of climate change. The assessment of the impacts of such policies on fiscal sustainability requires the application of sophisticated economic models, and the paper briefly explores the relative advantages of different modeling approaches in relation to the assessment of fiscal sustainability under policies to mitigate climate change. The major research need identified by the paper is for the development of macroeconomic models that will enable countries identify the wider effects of environmental taxes and help them undertake multi-year budgeting processes.     

Adapting regional eutrophication targets for surface waters—influence of the EU Water Framework Directive, national policy and climate change

Large amounts of waterborne nutrients are major problems for society since they can cause harmful algal blooms in surface water bodies. Consequently, there are a variety of national and international guidelines, e.g. Swedish National Environmental Quality Objectives and the EU Water Framework Directive, which include targets to be achieved within a certain time frame. This paper uses the example of a large Swedish lake to show that national and international targets must be adapted to the local situations. Despite decreasing nutrient concentrations, cyanobacterial blooms in the lake have increased over recent years. We found that these blooms coincide with depleted nitrate–nitrogen concentrations and increased water temperatures. We propose a simple model with water temperature, nitrate–nitrogen and total phosphorus concentrations as input variables as a basis for formulation of regional eutrophication targets. Political decisions should be preceded by open discussion between policymakers and scientists to differentiate between real knowledge, assumptions or feelings. For optimal results, recommendations for reducing nutrient load should consider all sources, including urban stormwater and wastewater from rural houses, and should be founded on a balanced reduction in emissions of algae-available nutrients. In addition, climate change calls for more effective environmental policy to protect surface water resources.     

Testing emissions equivalency metrics against climate policy goals

The climate impacts of energy technologies are frequently assessed using equivalency metrics, which convert emissions of multiple greenhouse gases to a common scale. Numerous metrics have been proposed that incorporate, in different ways, information about the time-dependent impacts of gases. However, more focus has been placed on proposing metrics than on testing their performance in real-world use cases. Here we present a testing approach that simulates how metrics would affect the selection of energy technology portfolios that comply with a CO₂-equivalent emissions cap. Unintended radiative forcing outcomes can occur, emphasizing the need to test metrics in a practical context. We demonstrate the approach for policies designed to limit radiative forcing and discuss extensions to limits on temperature or economic impacts. Metric performance is evaluated by (i) how much actual radiative forcing overshoots the intended stabilization level and (ii) the level of energy consumption permitted. We use this testing approach to study a variety of metrics based on an estimated radiative forcing stabilization time under two climate policy goals. We find that these goal-inspired metrics, if chosen carefully, can exhibit performance improvements over the standard global warming potential (GWP) while maintaining its transparency and ease-of-use. These alternative metrics can significantly reduce the overshoot in radiative forcing observed with the GWP, at a small cost in energy consumption. Moreover, simple metrics can exhibit similar performance improvements to more complex ones.     

Defining response capacity to enhance climate change policy

Climate change adaptation and mitigation decisions made by governments are usually taken in different policy domains. At the individual level however, adaptation and mitigation activities are undertaken together as part of the management of risk and resources. We propose that a useful starting point to develop a national climate policy is to understand what societal response might mean in practice. First we frame the set of responses at the national policy level as a trade off between investment in the development and diffusion of new technology, and investment in encouraging and enabling society to change its behaviour and or adopt the new technology. We argue that these are the pertinent trade-offs, rather than those usually posited between climate change mitigation and adaptation. The preference for a policy response that focuses more on technological innovation rather than one that focuses on changing social behaviour will be influenced by the capacity of different societies to change their greenhouse gas emissions; by perceived vulnerability to climate impacts; and by capacity to modify social behaviour and physical environment. Starting with this complete vision of response options should enable policy makers to re-evaluate the risk environment and the set of response options available to them. From here, policy makers should consider who is responsible for making climate response decisions and when actions should be taken. Institutional arrangements dictate social and political acceptability of different policies, they structure worldviews, and they determine the provision of resources for investment in technological innovation and social change. The importance of focussing on the timing of the response is emphasised to maximise the potential for adjustments through social learning and institutional change at different policy scales. We argue that the ability to respond to climate change is both enabled and constrained by social and technological conditions. The ability of society to respond to climate change and the need for technological change for both decarbonisation and for dealing with surprise in general, are central to concepts of sustainable development.     

A framework on interactions of climate and energy policy instruments

In this paper we analyze the concept of interactions between policy instruments addressing environmental, energy and climate change issues. Although discussion on such policies has been taking place for almost two decades, their interactions are not so sufficiently explored. Initially, we refer to literature on various types of interactions and we classify them. Furthermore, we construct a qualitative method that can assist policymakers in selecting an optimal policy mix. This method breaks down into numerous components, the areas where different policies interact, and facilitates the unveiling of potential overlaps and complementarities. These areas consist of categories as measure identification, objectives, scope, market arrangements, market flexibility, financing, technological parameters, timing, compliance parameters and institutional setup. In addition, it renders the possibility of combining different options and design elements of policies. Furthermore, a list of various criteria serves as an assessment tool for interactions, where a weighing factor and uncertainty parameters have been added, in order to produce an aggregate indicator of the ex-ante analysis of the policy mix selected. Through this method, we present a complete framework of discernment of diverse forms of environmental policy instruments.     

regionalclimate Characteristics of regional climate change and pattern analysis on Ordos Plateau

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Land use change and forestry climate project regional baselines: a review

Climate change programs have largely used the project-specific approach for estimating baseline emissions of climate mitigation projects. This approach is subjective, lacks transparency, can generate inconsistent baselines for similar projects, and is likely to have high transaction costs. The use of regional baselines, which partially addresses these issues, has been reported in the literature on forestry and agriculture projects, and in greenhouse gas (GHG) mitigation program guidance for them (e.g., WRI/WBCSD GHG Project Protocol, USDOE’s 1605(b) registry, UNFCCC’s Clean Development Mechanism). This paper provides an assessment of project-specific and regional baselines approaches for key baseline tasks, using project and program examples. The regional experience to date is then synthesized into generic steps that are referred to as Stratified Regional Baselines (SRB). Regional approaches generally, and SRB in particular explicitly acknowledge the heterogeneity of carbon density, land use change, and other key baseline driver variables across a landscape. SRB focuses on providing guidance on how to stratify lands into parcels with relatively homogeneous characteristics to estimate conservative baselines within a GHG assessment boundary, by applying systematic methods to determine the boundary and time period for input data.

Transport policy and climate change: How to decide when experts disagree

Transport is the sector with the fastest growth of greenhouse gases emissions in many countries. Accumulation of these emissions may cause uncertain and irreversible adverse climate change impacts. In this context, we use the analytic hierarchy process (AHP) to face the question on how to select the best transport policy if the experts have different opinions and beliefs on the occurrence of these impacts. Thus, both the treatment of uncertainty and dissent are examined for the ranking of transport policies. The opinions of experts have been investigated by a means of a survey questionnaire. A sensitivity analysis of the experts’ weights and the criteria’ weights confirms the robustness of the results.     

Reconciling model results with user needs to improve climate policy

The aim of this study is to understand the ‘reconciliation process’ between model results and user needs in Participatory Integrated Assessments. This process is analyzed for the Delft Dialogue, a project in which scientists and UNFCCC delegates used the IMAGE model to assess the consequences of different climate policy proposals. The Delft Dialogue consisted of five iterations in which model results were presented and requests for new analyses were prioritized. These requests were diverse, changed over time and linked long-term model projections with short-term policy targets. We conclude that two factors played an essential role in the reconciliation process in the Delft Dialogue: (1) user requests were identified in iterative interactions and guided the selection of model analyses and (2) model analyses were co-produced by participants and modelers. This Dialogue shows that reconciliation processes can be facilitated through a transparent, interactive and iterative process where user needs are elicited to guide the choice for model analyses.     

Integrating mitigation and adaptation into climate and development policy: three research questions

The potential for developing synergies between climate change mitigation and adaptation has become a recent focus of both climate research and policy. Presumably the interest in synergies springs from the appeal of creating win–win situations by implementing a single climate policy option. However, institutional complexity, insufficient opportunities and uncertainty surrounding their efficiency and effectiveness present major challenges to the widespread development of synergies. There are also increasing calls for research to define the optimal mix of mitigation and adaptation. These calls are based on the misguided assumption that there is one single optimal mix of adaptation and mitigation options for all possible scenarios of climate and socio-economic change, notwithstanding uncertainty and irrespective of the diversity of values and preferences in society. In the face of current uncertainty, research is needed to provide guidance on how to develop a socially and economically justifiable mix of mitigation, adaptation and development policy, as well as on which elements would be part of such a mix. Moreover, research is needed to establish the conditions under which the process of mainstreaming can be most effective. Rather than actually developing and implementing specific mitigation and adaptation options, the objective of climate policy should be to facilitate such development and implementation as part of sectoral policies. Finally, analysis needs to focus on the optimal use and expected effectiveness of financial instruments, taking into account the mutual effects between these instruments on the one hand, and national and international sectoral investments and official development assistance on the other.     

Major challenges of integrating agriculture into climate change mitigation policy frameworks

Taking the European Union (EU) as a case study, we simulate the application of non-uniform national mitigation targets to achieve a sectoral reduction in agricultural non-carbon dioxide (CO₂) greenhouse gas (GHG) emissions. Scenario results show substantial impacts on EU agricultural production, in particular, the livestock sector. Significant increases in imports and decreases in exports result in rather moderate domestic consumption impacts but induce production increases in non-EU countries that are associated with considerable emission leakage effects. The results underline four major challenges for the general integration of agriculture into national and global climate change mitigation policy frameworks and strategies, as they strengthen requests for (1) a targeted but flexible implementation of mitigation obligations at national and global level and (2) the need for a wider consideration of technological mitigation options. The results also indicate that a globally effective reduction in agricultural emissions requires (3) multilateral commitments for agriculture to limit emission leakage and may have to (4) consider options that tackle the reduction in GHG emissions from the consumption side.     

Mainstreaming climate policy: the role of media coverage in Finland

Integration of climate change adaptation and mitigation measures into other policies is considered to be a precondition for effective climate policies. This paper explores the role of mass media coverage as a potential obstacle or enhancing factor in relation to this mainstreaming of climate policies. The paper presents a quantitative content analysis of the national-level press coverage of climate change from 1990 to 2010, focusing on Finland. The empirical results indicate four major phases of Finnish media coverage of climate change: a definition phase before the Kyoto meeting in 1997, a maturation phase after the Kyoto meeting, climate hype in 2006–2008, and a phase of levelling off that started in late 2008. The results suggest that climate issues have widely permeated various fields of newspaper coverage. This broad-based debate may create and sustain a public agenda potentially favourable to attempts to bring climate policies into the mainstream of other policy domains. However, it also may open doors for unexpected initiatives by various activists and lobbyists that employ climate concern as a tool to advance other interests. The role of mass media has received little attention in studies focusing on the mainstreaming of climate policies. This paper highlights the importance of taking media coverage into account as a key factor in the formulation and implementation of environmental policies aimed at broad-based actions.     

From federal to city mitigation and adaptation: climate change policy in Mexico City

Climate change is projected to affect Latin America and the Caribbean as a result of increased temperatures and changed rainfall patterns. The impacts of climate change are expected to be unevenly distributed throughout the region, due to differences in geographic location, demographic pressures, levels of poverty, and natural resource dependence. To date, few studies have explored these impacts and the governmental responses to cope with them at a city scale. This article examines the challenges faced by the Mexico City government as it translates the federal climate change policy into successful mitigation and adaptation. It analyzes climate change impacts on Mexico and Mexico City (also known as the Federal District), the federal and city’s mitigation and adaptation responses, and advances and contradictions in the implementation of these strategies at the national and city levels. Similar problems have limited the effectiveness of these actions at both the federal and city levels, including the overexploitation of natural resources, a lack of climate information and monitoring systems, and the subordination of climate change strategies to the objectives of economic growth and poverty reduction. These problems have resulted in poor coordination and collaboration among various levels of government to cope with climate change, in addition to avoiding local capacity building, particularly in regard to forest conservation.     

Pursuing an integrated development and climate policy framework in Africa: options for mainstreaming

Climate change presents a major threat to the prospects for sustained economic development in Africa. In spite of this, climate change concerns do not feature prominently in the implementation of national and regional development programmes. The present paper identifies the likely trade-offs and synergies that may emerge from an integrated ‘development-climate’ approach to policy making. Also, the paper presents the case for the formulation and evaluation of an integrated policy approach based on four principle criteria, including; long-term environmental effectiveness, equity considerations, cost-effectiveness and the institutional compatibility of the policy combinations. What is more? The paper suggests specific options for mainstreaming climate change adaptation and mitigation in various sectoral development agenda such as; agricultural intensification, poverty eradication, rural development, urban renewal, energy security of supply and trade. Given the wide divergence of socio-economic systems and the peculiar challenges faced by individual countries in the continent, further research is required on robust country-specific strategies for pursuing an integrated development-climate policy framework.     

Multilevel climate policy: the case of the European Union,Finland and Helsinki

Mitigation of climate change requires action at all the different levels, from the international to the national and the local levels. This contribution presents a case study of the city of Helsinki in Finland. An ex-post approach is used to follow the implementation of the EU directives to the national and further to the city level and to identify the relevant voluntary action taken in the city. We find that the coherence of national and city level policies is the highest in regulated areas, such as waste management and building regulation. Voluntary action is easily taken at local level in areas where co-benefits can be expected: e.g. energy conservation and biofuels for transportation. These voluntary actions can show the feasibility of certain measures which can later on be implemented at national or supranational level. We observe a clear contradiction between the EU and national renewable electricity targets and the nonaction at the city level: local conditions and private interests pose barriers to the implementation of a climate policy. We conclude that the coherence between policies at different levels develops over time and international requirements as well as local conditions can be drivers for it. Cities in particular play a role in mitigating climate change through removing barriers for the implementation of national and EU policies, and through moving forward with and promoting innovative voluntary measures, e.g. through international city networks.     

Forests in climate policy: technical,institutional and economic issues in measurement and monitoring

Despite the economic and environmental significance of the world’s forests, we have limited data about them. Estimates of deforestation in tropical countries and rates of reforestation or afforestation in boreal and temperate countries are inconsistent. Accordingly, estimates of emissions released in deforestation vary widely and range from 7% to 17% of all sources of greenhouse gas (GHG) emissions. The lack of good data severely hampers efforts to shape climate policy because it is difficult to model the role of forests both in the physical global carbon (C) cycle and in cost-effective regimes to abate GHG. Data limits strain the capacity of even the best models to estimate marginal cost functions for forest carbon (C) sequestration. It is technically possible to obtain better information, but for institutional and economic reasons these technologies have not yet been fully deployed. The emergence of carbon (C) trading or tax policy in which forest carbon (C) storage becomes valued would strengthen incentives to supply better data, as would nonmarket regulation if it elicited a shadow value of forest carbon (C) in substituting for reductions in greenhouse gas emissions. “Geo-wiki” may provide a short-term solution to at least part of the data problem. The ultimate solution is the development of a comprehensive forest monitoring system involving remote sensing and on-the-ground truthing. This paper briefly discusses the role of forests in climate policy and then describes data gaps, the capability of technology to fill them, the limits of institutions and budgets in realizing this capability, and possible near-term solutions.