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Global Energy and CO2 to the Year 2050

Joe Edmonds and John Reilly

Year: 1983
Volume: Volume 4
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No3-3
View Abstract

Abstract:
One of the important by-products of the combustion of fossil fuelsis carbon dioxide (C02), a nontoxic, colorless gas with a faintly pungent odor and acid taste. Carbon dioxide is not commonly thought of as apollutant. Rather, COs plays an important role in the determination of the global climate. The presence of C02 in the atmosphere produces a "greenhouse effect," allowing incoming sunlight to penetrate but trapping heatradiated back from earth. Man's ability to significantly affect COs levels through use of fossil fuel gives rise to the possibility of climate change atunprecedented rates.



The Costs of Reducing U.S. CO2 Emissions - Further Sensitivity Analyses

Alan S. Mann and Richard G. Richels

Year: 1990
Volume: Volume 11
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No4-4
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Abstract:
In a previous paper, we used the Global 2100 model to explore the implications of a carbon constraint upon domestic energy costs and the resulting effects on the U.S. economy as a whole (Manne and Richels (1990). The impact of a CO2 limit will depend on the technologies and resources available for meeting demands as well as on the demands themselves. Given the enormous uncertainty surrounding these factors, losses were calculated under alternative assumptions about each.



The Cost of Slowing Climate Change: a Survey

William D. Nordhaus

Year: 1991
Volume: Volume 12
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No1-4
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Abstract:
Policies to deal effectively and efficiently with the threat of greenhouse warming must balance the costs of slowing climate change against the potential damages. This survey discusses one half of this question, the costs of slowing climate change by reducing greenhouse gas (GHG) emissions. The analysis provides estimates of the cost of reducing chlorofluorocarbon and CO2 emissions, and inquires into the costs of using forestry options to remove CO2 from the atmosphere. A promising new approach, the use ofgeoengineering, is discussed qualitatively.



Global CO2 Emission Reductions - the Impacts of Rising Energy Costs

Alan S. Manne and Richard G. Richels

Year: 1991
Volume: Volume 12
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No1-6
View Abstract

Abstract:
In this paper, we explore how the costs of a CO2 limit are likely to vary among regions. The analysis is based on Global 2100: an analytical framework for estimating the economy-wide impacts of rising energy costs. We investigate how emissions are likely to evolve in the absence of a carbon limit, and how the regional pattern is likely to shift during the nest century. We then examine alternative strategies to limit global emissions, calculate the impacts of higher energy costs upon conventionally measured GDP, and indicate the size of the carbon tax that would be required to induce individual consumers to reduce their dependence on carbon-intensive fuels.



The Greenhouse Effect: A View From Europe

David Pearce and Edward Barbier

Year: 1991
Volume: Volume 12
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No1-9
View Abstract

Abstract:
Various countries in Europe are considering tax schemes to combat the threat of global warming and Europeans have shown their concern by their growing support of the various Green parties. Unfortunately, policy-oriented research on climate warming lags behind North America and governments still seem to display a "wait and see" philosophy. Europe expects a leading role in any global climate convention and, because of its trade links and the uniqueness of the British Commonwealth, has a special role in regard to developing countries. These links are especially important since domestic policies must be coordinated and combined with international agreements in order to be effective.



Limits on the Economic Effectiveness of a Carbon Tax

Robert K Kaufmann

Year: 1991
Volume: Volume 12
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No4-9
View Abstract

Abstract:
Much of the discussion regarding policies to reduce the emission of carbon dioxide (CO2) and other greenhouse gases focuses on least-cost strategies. Policies that minimize costs are desirable because they are economically more efficient than policies that are based on a command and control strategy (Gasloms and Stram, 1990). Among the many least-cost policies now under consideration, a carbon tax has received the most attention. As currently envisioned, a carbon tax would be levied on users of fossil fuels according to the amount of carbon that is emitted when the fuel is burned. Because the combustion of coal emits more CO2 per heat unit than oil, which emits more CO2 per heat unit than natural gas, the tax on coal would be larger than the tax on oil, which would be larger than the tax on natural gas.The fuel specific charges that would be imposed by a carbon tax are a popular policy option because many believe that a carbon tax will reduce emissions of carbon dioxide in an economically efficient manner. That is, a carbon tax will reduce the use of fossil fuels by spurring technical change and by inducing the substitution of capital, labour, and non-energy materials. Furthermore, a carbon tax will reduce emissions of CO2 by inducing substitution of fuels that emit less CO2 per heat unit. The reduction in emissions that is achieved by interfuel substitution is caused by the differences in the size of the tax on coal, oil, and natural gas. Because the tax on coal is largest, the price of coal will rise relative to oil and natural gas and users will substitute oil or natural gas for coal.



Analysis of Unilateral CO2 Control in the European Community and OECD

John Pezzey

Year: 1992
Volume: Volume 13
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No3-8
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Abstract:
Whalley and Wigle (1991b) use a static, six-region, perfect competition, general equilibrium model to explore various global carbon tax policies designed to cut CO2 emissions. Their program is used here to model unilateral carbon taxes applied by large regions such as the EC or the OECD. Sample model results suggest that a 20% unilateral cut in EC carbon-based energy consumption achieves a 0.7% cut in world consumption in equilibrium; the ECs production of energy-intensive goods falls by 8.3%; but EC welfare is hardly changed, thanks to a shift in consumption towards nonenergy-intensive goods and to cheaper carbon-based energy imports. Unilateral action, even by large economies, therefore seems to be environmentally ineffective but economically neutral overall. However, international leadership effects or induced technical progress might change these conclusions. Also, Perroni and Rutherford (1991) find less extreme results for similar policies, probably because they model world energy markets very differently.



Growth and Welfare Losses from Carbon Emissions Restrictions: A General Equilibrium Analysis for Egypt

Charles Blitzer, Richard Eckaus, Supriya Lahiri, and Alexander Meeraus

Year: 1993
Volume: Volume 14
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No1-3
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Abstract:
This paper assesses the economic effects of carbon emission restrictions in Egypt.Like other studies, it is an exemplification of some of the economic possibilitiesunder various conditions. However, it extends the domain of possibilities andsuggests some issues that have not been considered in other studies.It is demonstrated clearly that, while annual emissions constraints have only a modest effect on long-run economic growth rates, they have substantial effect on the achieved levels of GDP and welfare. These results do not change much, even with backstop and unconventional technologies or change in discounting. However, postponing the imposition of constraints does have a significant effect, as does changing the form of the constraints to one based on accumulated emissions.



International Trade in Oil, Gas and Carbon Emission Rights: An Intertemporal General Equilibrium Model

Alan S. Manne and Thomas F. Rutherford

Year: 1994
Volume: Volume15
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No1-4
View Abstract

Abstract:
This paper employs a five-region intertemporal model to examine three issues related to carbon emission restrictions. First, we investigate the possible impact of such limits upon future oil prices. We show that carbon limits are likely to differ in their near- and long-term impact. Second, we analyze the problem of "leakage" which could arise if the OECD countries were to adopt unilateral limits upon carbon emissions. Third, we quantify some of the gainsfrom trade in carbon emission rights. Each of these issues have been studied before, but to our knowledge this is the first study based on a multi-regional, forward-looking model. We show that sequential joint maximization can be an effective way to compute equilibria for intertemporal general equilibrium models of international trade.



Who Pays Broad-Based Energy Taxes? Computing Lifetime and Regional Incidence

Nicholas Bull, Kevin A. Hassett, and Gilbert E. Metcalf

Year: 1994
Volume: Volume15
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-8
View Abstract

Abstract:
This paper measures the incidence of energy taxes using a lifetime framework to study both a Btu tax and a carbon tax. It takes into account two key facts. First, because energy taxes have different incidence effects across the life cycle, it is important to measure the burden of taxes in terms of lifetime incidence, not just their burden in a given year. To take account of lifetime incidence, we introduce an estimation methodology for lifetime-correction as well as showing current consumption measures. Second, energy taxes have a total effect that combines both direct and indirect effects: in addition to directly increasing the price of energy goods, energy taxes also indirectly increase the price of all other goods in proportion to the energy used to produce them. We provide incidence estimates by income group and by geographical region.




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