Topic Climate Policy

The Economic Costs of Climate Change

International experts agree that the emission of greenhouse gases by mankind is rising further and further, and causing climate change. This can clearly be seen in the rise in the average global temperature and sea level. It is also evident in the increase in extreme weather events and natural catastrophes, which are causing enormous economic damage. If the global temperature changes by 1 degree Celsius ...

Induced Technological Change in a Multi-Regional, Multi-Sectoral, Integrated Asessment Model (WIAGEM): Impact Assessment of Climate Policy Strategies

This paper illustrates the representation of induced technological change in the multi-regional, multi-sectoral integrated assessment model WIAGEM. The main aim of the paper is to investigate quantitatively the economic impacts of climate policy measures due to the induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that ...

Economic Impact Assessment of Climate Change: A Multi-Gas Investigation with WIAGEM-GTAPEL-ICM

Climate change is a long-term issue due to the long lifespan of greenhouse gases and the delayed response of the climate system. This paper investigates the long-term economic consequences of both climate change impacts and mitigation efforts by applying the multi-regional, multi-sectoral integrated assessment model WIAGEM based on GTAP-EL coupled with the reduced-form multi-gas climate model ICM. ...

Incentives to Adopt New Abatement Technology and US-European Regulatory Cultures

Climate Protection Policy with China and the USA after 2012: Cost Reduction through Emissions Trading and Technological Cooperation

Greenhouse gas emissions should be stabilized to today's level to prevent harmful climate damage.The countries that have signed the Kyoto Protocol committed themselves to reduce their greenhouse gas emissions over the period 2008 to 2012, but only to a very limited extent. The USA decided not to ratify the Kyoto Protocol for various reasons. Furthermore, fast-growing economies like China are about ...

Innovative Energy Technologies and Climate Policy in Germany

Due to the size and structure of its economy, Germany is one of the largest carbon emitters in the European Union. However, Germany is facing a major renewal and restructuring process in electricity generation. Within the next two decades, up to 50% of current electricity generation capacity may retire because of end-of-plant lifetime and the nuclear phase-out pact of 1998. Substantial opportunities ...

The Environmental and Economic Effects of European Emissions Trading

In 2005, the EU introduced an emissions trading system in order to pursue its Kyoto obligations. This instrument gives emitters the flexibility to undertake reduction measures in the most cost-efficient way and mobilizes market forces for the protection of the earth's climate. In this paper, we analyse the effects of emissions trading in Europe, with some special reference to the case of Germany. We ...

A Flexible Global Warming Index for Use in an Integrated Approach to Climate Change Assessment

Global Warming Potential (GWP) is an index used to measure the relative accumulated radiative effect of a tonne of greenhouse gas (GHG) compared to that of a 'reference' gas (CO2). Due to the different lifetimes of the GHGs, the GWPs are often measured over a fixed and long period of time (usually 20, 100, or 500 years). The disadvantage of this time-approach is that the index may give a good indication ...

Impact Assessment of Emissions Stabilization Scenarios with and without Induced Technological Change

The main aim of this paper is to investigate quantitatively the economic impacts of emissions stabilization scenarios with and without the inclusion of induced technological change (ITC). Improved technological innovations are triggered by increased R&D expenditures that advance energy efficiencies. Model results show that induced technological changes due to increased investment in R&D reduce compliance ...

Modeling the Impacts of International Climate Change Policies in a CGE Context: The Use of the GTAP-E Model

The anticipated implications of international environmental policy strategies are critical for the success or failure of international negotiations on climate change policies. In this paper, we discuss the complex modeling issues related to the incorporation of international environmental policy measures in one of the popular applied general equilibrium models for international trade, the so-called ...