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Global Climate Change DigestArchives of the
Global Climate Change Digest

A Guide to Information on Greenhouse Gases and Ozone Depletion
Published July 1988 through June 1999

FROM VOLUME 6, NUMBER 5, MAY 1993

REPORTS...
EMISSION CONTROL POLICIES & CONVENTIONS


Item #d93may42

Energy Policy in the Greenhouse, Vol. 2--Least-Cost Insurance Against Greenhouse Risks: The Cost of Cutting Carbon Emissions, F. Krause, J. Koomey et al., 700 pp., published in five parts beginning Apr. 1993 with Part 1. $350 for all five parts, or separately as listed below (+$10 shipping per order if overseas). Order from IPSEP (International Project for Sustainable Energy Paths), 7627 Leviston Ave., El Cerrito CA 94530 (tel/fax: 510-525-4446).

Further documents results of a multiyear, international research project supported by the Dutch Ministry of Environment. This report expands on an earlier version published last spring (GCCD, p. 56, Apr. 1992), and, according to IPSEP, represents the most comprehensive and detailed assessment to date of the economic cost of carbon reductions. (Volume 1 of Energy Policy in the Greenhouse, dealing with ecologically-based CO2 emission reduction targets, is available from Wiley & Sons in the U.S., Earthscan in the U.K., and in a German edition from C.F. Müller Verlag, Karlsruhe. It was listed in GCCD, Books, p. 115, July 1992.)

In contrast to past studies, which have been limited to certain high-tax options, this study concludes that there are much cheaper options than high energy or carbon taxes for reducing carbon emissions effectively. It offers a least-cost approach emphasizing strong programs for correcting a variety of market barriers to the efficient use of energy, complemented by modest energy taxes and targeted recycling of tax revenues into investments. This approach would avoid the negative economic impacts predicted in conventional macroeconomic studies and would enhance economic growth. Regions that are the first to act on these opportunities could gain leadership and competitive advantage in key technologies.

Part 1--Cutting Carbon Emissions: Burden or Benefit? The Economics of Energy-Tax and Non-Price Policies, approx. 150 pp., $50. Attempts to resolve the conflicting results of two alternative approaches to estimating the costs of reducing carbon emissions, a conflict underscored during the debate over international emission controls prior to the June 1992 Earth Summit. The "top-down" or macroeconomic approach generally predicts losses in economic output as a result of carbon reduction policies, while "bottom-up" or microeconomic analyses generally predict much lower costs or net savings. Twelve key studies from the U.S., Canada and Europe representing the two approaches are compared in a scholarly analysis covering the full range of relevant economic issues, including trade effects, industrial migration, technological competition, and prospects for Third World participation in climate stabilization. Among the conclusions: significant cuts in carbon emissions are feasible while saving nations and consumers money; emission reduction policies should emphasize instruments other than carbon taxes; conventional macroeconomic modeling assessments are ill-suited as the principal basis for assessing carbon reduction costs. Concludes with specific guidelines for policy makers.

Part 2--The Cost of Carbon Reductions in Western Europe, $50. This case study draws on the sector-specific studies described in the remaining parts, which also include supplementary material relating to the U.S. Develops specific policy scenarios for each sector, and reviews innovative policies that could harmonize the concern over global warming with other concerns, such as deregulation in the utility sector, urban air pollution, and road congestion. The economic impacts of such policies are then calculated.

Parts 3A, 3B, 3C, 3D--Sourcebooks: Electrical Efficiency, Fossil and Renewable Supplies, The Transport Sector, Nuclear Power, $100 for all four.

Part 4--The Transport Sector, $80.

Part 5--Efficiency in Industry and Buildings, $50.


Item #d93may43

Taxing Energy: Why and How, Intl. Energy Agency/Org. for Econ. Cooperation & Development, Mar. 1993, $39/£29/DM70. OECD Pubs.

Reviews the energy tax regimes of five OECD countries (Australia, Denmark, Germany, Japan, U.S.) and analyzes the reasons why governments tax energy. Explores whether energy taxes might be employed for uses other than raising revenues, and how effective they might be. Neither advocates nor opposes the use of energy taxes as a means to achieve goals other than revenue raising.


Item #d93may44

The Economic Costs of Reducing CO2 Emissions (OECD Economic Studies No. 19), 208 pp., Mar. 1993, $25/£15/DM47. OECD Pubs.

Contains six articles that: describe results from the GREEN global model for evaluating the impacts of emission control policies; compare GREEN with five other such models; examine the impacts of a "no-regrets" approach to an international agreement; and analyze the effects of superimposing carbon taxes on current energy taxes in OECD countries. One conclusion is that reductions by industrial countries will have only a limited effect on world-wide emissions; abatement policies should focus on developing countries.


Item #d93may45

The Economic Consequences of the Proposed Energy/Carbon Tax. Final Report, DRI European Energy Service and DRI European Economic Service for the Commission of the European Communities (CEC), 1993. Contact CEC, Project DGXI, 200 Rue de la Loi, B-1049 Brussels, Belg.

This report updates one produced for the CEC in 1991, using a more specific tax proposal and revised energy and economic projections through the year 2005. Results suggest that overall EC economic performance suffers slightly under the tax if the EC imposes it unilaterally and grants no exemptions for energy-intensive industries. (An extensive summary appears in Energy, Econ. & Clim. Change, pp. 9-11, Mar. 1993.)


Item #d93may46

International Burden Sharing in Greenhouse Gas Reduction, A. Grubler, N. Nakicenovic, 1992, no charge. Request from Environ. Dept., World Bank, 1818 H St. NW, Washington DC 20433 (202-473-2941).

A working paper providing an overview of current and historical greenhouse emissions, and examining alternatives for sharing efforts to lower greenhouse emissions among regions and countries.


Item #d93may47

Obtain the following from the Center for the New West, 600 World Trade Ctr., 1625 Broadway, Denver CO 80202 (303-592-5310). (A critical analysis of the second item appears in the monthly Energy, Econ. & Clim. Change, pp. 13-15, Feb. 1992.)

A Carbon Tax Undermines Economy, Environment, P.M. Burgess, A. Bane, M. Kelly, 15 pp., Feb. 1993, $3. This summary of the following, more detailed report concludes that carbon taxes are the worst form of energy tax, and would cost hundreds of thousands of jobs in the U.S., particularly in the coal-related industries.

The Costs and Implications of Controlling CO2 Emissions in the U.S., R.L. McMahan, G.P. Starry (Resour. Data Intl. Inc., Boulder, Colo.), 45 pp., 1993, $10. Criticizes the application of econometric models to the impacts of CO2 control strategies because they fail to effectively model the energy sector. Presents instead an empirical analysis of the electric utility sector involving three alternative scenarios.

Energy Policy and Coal: Perspectives on the West, 45 pp., 1993, $10.


Item #d93may48

The following were listed as further reading in the article "Criteria for International Offset Projects: A Look at the Issues," Global Environ. Change Rep., pp. 1-3, Jan. 1993.

The Framework Convention on Climate Change: Some Thoughts on Joint Implementation, H. Merkus, 1992. Clim. Change Div./640, Minist. Housing, Physical Planning & Environ., POB 30945, 2500 GX The Hague, Neth. (fax: +31-70-3391310).

The Climate Convention: Criteria and Guidelines for Joint Implementation, T. Hanish et al., CICERO, POB 1066, Blindern, N-0316 Oslo, Norway (fax: +47-2-856284).

Available from Environmental Defense Fund, 257 Park Ave. S, New York NY 10010 (212-505-2100): Joint Implementation and the Developing of an Emissions Trading System for Greenhouse Gases; Preserving Tropical Forests and Climate: The Role of Trees in Greenhouse Gas Emissions Trading; Proposal for a Forests for the Future Project in Russia.


Item #d93may49

The Climate is Right for Action: Voluntary Programs to Reduce Greenhouse Gas Emissions (EPA 400-K-92-005), 23 pp., Oct. 1992, no charge. Public Info. Ctr., U.S. Environ. Protection Agency, Washington DC 20460 (202-475-7751).

A booklet describing the programs developed by EPA to encourage reductions in greenhouse gas emissions by industry, state and local government and others, through changes in lighting, space heating, computers, corporate purchasing etc.


Item #d93may50

Abating Global Warming: Economic Instruments for CO2 Reductions--How to Harness Market Forces, C.M. Wolfrum, 72 pp., July 1992, DM16. Available from author, Lentersweg 2, D-2000 Hamburg 63, Ger.


Item #d93may51

Global Warming and Urban Smog: The Cost-Effectiveness of CAFE Standards and Alternative Fuels (ENR92-13), A.J. Krupnick, M.A. Walls, C.T. Collins, 1992, $5. Publications, Resources for the Future, 1616 P St. NW, Washington DC 20036 (202-328-5086).

This discussion paper evaluates alternative transportation policies in terms of cost per ton of greenhouse gases reduced, adjusted for the benefits of local ozone (smog) reduction. Finds compressed natural gas to be the most cost-effective alternative, followed by increased fuel economy standards, substitution of methanol for gasoline, and reformulated gasoline mixtures.


Item #d93may52

The three volumes (in German) of International Greenhouse Gas Verification, produced by Forschungszentrum Juelich G.m.b.H. for the Bundesministerium fuer Forschung und Technologie (Bonn), are available from NTIS:

1. Analysis of Databases on Climate-Relevant Emissions in the Federal Republic of Germany (JUEL-2614), U. Fritsche, F.C. Matthes, 103 pp., May 1992. NTIS: TIB/B93-00362; $50. Despite detailed official statistics on emissions, only data on CO2 emissions from energy conversion are currently verifiable.

2. Institutional Verification Problems in the Context of an International Climate Convention (JUEL-2641), S. Comes, 120 pp., July 1992. NTIS: TIB/B93-00361; $50. Discusses various aspects of verification: why it tends to be neglected in international agreements, organizational structure, the role of environmental monitoring networks, and a specific proposal for the international climate convention.

3. Theory and Practice of the Verification of a Global Climate Convention (JUEL-2642, M. Efinger, H. Breitmeier, 96 pp., July 1992. NTIS: TIB/B93-00360; $33. The authors apply their combined experience in verification and cooperation in disarmament, arms control, and international ecological cooperation.


Item #d93may53

Designing Markets for CO2 Emissions and Other Pollutants, J. Heister (Inst. Weltwirtschaft, Univ. Kiel, Ger.), P. Michaelis, 27 pp., Sep. 1991. NTIS: TIB/B92-03490; $33.

Presents specific details of a proposed coupon system for tradable emission permits, and evaluates its performance in the framework of the EC's future internal market.

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