Putting a Price on Carbon in South Africa and Other Developing Countries

Putting a Price on Carbon in South Africa and Other Developing Countries
Author: Harald Winkler
Publisher: Routledge
Total Pages: 204
Release: 2020-12-15
Genre: Business & Economics
ISBN: 113653718X

How should we be putting a price on carbon, particularly in developing countries? This volume takes up this contested issue and examines how different economic instruments might apply in developing countries, with a special focus on South Africa. The papers included address a variety of themes in this area: Emissions trading, carbon taxes, fiscal and non-fiscal instruments, policy and institutional dimensions, and lessons from the Clean Development Mechanism. Presenting the very latest research, the volume will be of interest to academics and policymakers in economics, policy and development.

The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications

The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications
Author: Baoping Shang
Publisher: International Monetary Fund
Total Pages: 32
Release: 2021-06-25
Genre: Business & Economics
ISBN: 151357339X

Addressing the poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious actions in the fight against climate change. This paper uses a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality. It finds that the channels differ in important ways along several dimensions. The paper also identifies several key gaps in the current literature and discusses some considerations on how policy designs could take into account the attributes of the channels in mitigating the impacts of carbon pricing reforms on households.

Global Carbon Pricing

Global Carbon Pricing
Author: Peter Cramton
Publisher: MIT Press
Total Pages: 270
Release: 2017-06-16
Genre: Business & Economics
ISBN: 0262340399

Why the traditional “pledge and review” climate agreements have failed, and how carbon pricing, based on trust and reciprocity, could succeed. After twenty-five years of failure, climate negotiations continue to use a “pledge and review” approach: countries pledge (almost anything), subject to (unenforced) review. This approach ignores everything we know about human cooperation. In this book, leading economists describe an alternate model for climate agreements, drawing on the work of the late Nobel laureate Elinor Ostrom and others. They show that a “common commitment” scheme is more effective than an “individual commitment” scheme; the latter depends on altruism while the former involves reciprocity (“we will if you will”). The contributors propose that global carbon pricing is the best candidate for a reciprocal common commitment in climate negotiations. Each country would commit to placing charges on carbon emissions sufficient to match an agreed global price formula. The contributors show that carbon pricing would facilitate negotiations and enforcement, improve efficiency and flexibility, and make other climate policies more effective. Additionally, they analyze the failings of the 2015 Paris climate conference. Contributors Richard N. Cooper, Peter Cramton, Ottmar Edenhofer, Christian Gollier, Éloi Laurent, David JC MacKay, William Nordhaus, Axel Ockenfels, Joseph E. Stiglitz, Steven Stoft, Jean Tirole, Martin L. Weitzman

Governing the Climate-Energy Nexus

Governing the Climate-Energy Nexus
Author: Fariborz Zelli
Publisher: Cambridge University Press
Total Pages: 293
Release: 2020-07-16
Genre: Business & Economics
ISBN: 1108484816

Analysing the interactions between institutions in the climate change and energy nexus, including the consequences for their legitimacy and effectiveness. Prominent researchers from political science and international relations compare three policy domains: renewable energy, fossil fuel subsidy reform, and carbon pricing. This title is also available as Open Access on Cambridge Core.

Fiscal Policies for Paris Climate Strategies—from Principle to Practice

Fiscal Policies for Paris Climate Strategies—from Principle to Practice
Author: International Monetary Fund. Fiscal Affairs Dept.
Publisher: International Monetary Fund
Total Pages: 109
Release: 2019-05-01
Genre: Business & Economics
ISBN: 1498311717

This paper discusses the role of, and provides practical country-level guidance on, fiscal policies for implementing climate strategies using a unique and transparent tool laying out trade-offs among policy options.

Decarbonizing Development

Decarbonizing Development
Author: Marianne Fay
Publisher: World Bank Publications
Total Pages: 185
Release: 2015-06-09
Genre: Business & Economics
ISBN: 1464806063

The science is unequivocal: stabilizing climate change implies bringing net carbon emissions to zero. This must be done by 2100 if we are to keep climate change anywhere near the 2oC warming that world leaders have set as the maximum acceptable limit. Decarbonizing Development: Three Steps to a Zero-Carbon Future looks at what it would take to decarbonize the world economy by 2100 in a way that is compatible with countries' broader development goals. Here is what needs to be done: -Act early with an eye on the end-goal. To best achieve a given reduction in emissions in 2030 depends on whether this is the final target or a step towards zero net emissions. -Go beyond prices with a policy package that triggers changes in investment patterns, technologies and behaviors. Carbon pricing is necessary for an efficient transition toward decarbonization. It is an efficient way to raise revenue, which can be used to support poverty reduction or reduce other taxes. Policymakers need to adopt measures that trigger the required changes in investment patterns, behaviors, and technologies - and if carbon pricing is temporarily impossible, use these measures as a substitute. -Mind the political economy and smooth the transition for those who stand to be most affected. Reforms live or die based on the political economy. A climate policy package must be attractive to a majority of voters and avoid impacts that appear unfair or are concentrated on a region, sector or community. Reforms have to smooth the transition for those who stand to be affected, by protecting vulnerable people but also sometimes compensating powerful lobbies.

Carbon Pricing: What Role for Border Carbon Adjustments?

Carbon Pricing: What Role for Border Carbon Adjustments?
Author: Ian W.H. Parry
Publisher: International Monetary Fund
Total Pages: 22
Release: 2021-09-27
Genre: Business & Economics
ISBN: 1513594540

This Climate Note discusses the rationale, design, and impacts of border carbon adjustments (BCAs), charges on embodied carbon in imports potentially matched by rebates for embodied carbon in exports. Large disparities in carbon pricing between countries is raising concerns about competitiveness and emissions leakage, and BCAs are a potentially effective instrument for addressing such concerns. Design details are critical, however. For example, limiting coverage of the BCA to energy-intensive, trade-exposed industries facilitates administration, and initially benchmarking BCAs on domestic emissions intensities would help ease the transition for emissions-intensive trading partners. It is also important to consider how to apply BCAs across countries with different approaches to emissions mitigation. BCAs are challenging because they pose legal risks and may be at odds with the differentiated responsibilities of developing countries. Furthermore, BCAs provide only modest incentives for other large emitting countries to scale carbon pricing—an international carbon price floor would be far more effective in this regard.

Sustainability Transitions in South Africa

Sustainability Transitions in South Africa
Author: Najma Mohamed
Publisher: Routledge
Total Pages: 355
Release: 2018-07-11
Genre: Business & Economics
ISBN: 1351749625

South Africa’s transition to a greener economy features prominently in the long-term development vision of the country, and is an integral part of the country’s national climate change response strategy. Despite significant gains in socio-economic development since its transition to democracy, the country continues to face the triple challenges of rising unemployment, income inequality and poverty – amid a slowdown in economic growth. Sustainability transitions offer new ways of shifting the trajectory of South Africa’s resource-intensive economy towards low-carbon pathways linked to the country’s transformative development agenda. Calls for inclusive approaches to greening the South African economy, which addresses the most vulnerable in society and ensures that the benefits of sustainability innovations reach all South Africans, are becoming more pronounced as sustainable development policy reforms are being implemented. The question that should be placed centre stage in South Africa’s sustainability discourse is whether notions of justice and inclusivity are being sufficiently addressed in the design and implementation of policy and programme interventions. This book explores South Africa’s sustainability transition through reflections on critical policy, economic, technological, social and environmental drivers. It provides a synthesis of theoretical insights, including new models and concepts, and praxis through illustrations from South Africa’s growing landscape of sustainable development policies and programmes. Finally, it assesses whether these transition pathways are beginning to reconfigure the system-level structures hindering the country’s goal of ‘ensuring environmental sustainability and an equitable transition to a low-carbon economy’.

Preparing for Peak Oil in South Africa

Preparing for Peak Oil in South Africa
Author: Jeremy J. Wakeford
Publisher: Springer Science & Business Media
Total Pages: 136
Release: 2013-11-29
Genre: Business & Economics
ISBN: 1461495180

Oil is the lifeblood of modern industrial economies. Petroleum powers virtually all motorized transport, which in turn enables most economic activities and provides mobility for citizens. But oil is a finite resource that is steadily depleting. In the past decade, the phenomenon of global peak oil – the fact that annual world oil production must at some point reach a maximum and then decline – has emerged as one of the twenty-first century’s greatest challenges. South Africa imports over two-thirds of its petroleum fuels, and history has shown that oil price shocks generally translate into a weakening currency, rising consumer prices, increasing joblessness and a slow-down in economic activity. This book examines the implications of peak oil for socioeconomic welfare in South Africa and proposes a wide range of strategies and policies for mitigating and adapting to the likely impacts. It contains a wealth of data in tables and figures that illustrate South Africa’s oil dependencies and vulnerabilities to oil shocks. The material is presented from a systems perspective and is organized in key thematic areas including energy, transport, agriculture, macro-economy and society. The study highlights the risks, uncertainties and difficult choices South Africa faces if it is to tackle its oil addiction, and thereby serves as an example for researchers, planners and policy-makers in the developing world who will sooner or later confront similar challenges. This case study brings a fresh southern perspective to an issue of global importance, and shows how the era of flattening and then declining global oil supplies may be a pivotal period in which either the project of industrialization progressively runs out of steam, or societies are able to undertake a proactive transition to a more sustainable future.

Valuing Climate Damages

Valuing Climate Damages
Author: National Academies of Sciences, Engineering, and Medicine
Publisher: National Academies Press
Total Pages: 281
Release: 2017-06-23
Genre: Science
ISBN: 0309454204

The social cost of carbon (SC-CO2) is an economic metric intended to provide a comprehensive estimate of the net damages - that is, the monetized value of the net impacts, both negative and positive - from the global climate change that results from a small (1-metric ton) increase in carbon-dioxide (CO2) emissions. Under Executive Orders regarding regulatory impact analysis and as required by a court ruling, the U.S. government has since 2008 used estimates of the SC-CO2 in federal rulemakings to value the costs and benefits associated with changes in CO2 emissions. In 2010, the Interagency Working Group on the Social Cost of Greenhouse Gases (IWG) developed a methodology for estimating the SC-CO2 across a range of assumptions about future socioeconomic and physical earth systems. Valuing Climate Changes examines potential approaches, along with their relative merits and challenges, for a comprehensive update to the current methodology. This publication also recommends near- and longer-term research priorities to ensure that the SC- CO2 estimates reflect the best available science.