Climate change policies. Session 9 Macroeconomic Concepts and Issues MSc Economic Policy Studies Alan Matthews. Learning objectives. Valuing the threat of global warming and the social cost of carbon Implications of the EU’s climate change targets for the Irish economy
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Macroeconomic Concepts and Issues
MSc Economic Policy Studies
r = ρ + ηg
where ρ is the pure rate of time preference, ηis the negative of the elasticity of the marginal utility of consumption (the rate at which additional consumption provides smaller increases in welfare) and g is growth rate of per capita consumption
Note: SCC estimates can be converted into CO2e costs by dividing by 3.66
“Climate change is a moral problem. The main reason to reduce greenhouse gas emissions is a concern for faraway lands (Schelling 2000), distant futures (Nordhaus 1982), and remote probabilities (Weitzman 2009). The people who emit most are least affected by climate change, and the benefits of their abatement would be diffused. Carbon dioxide dwells in the atmosphere for decades and the effects on temperature and sea level play out over even longer periods. On central projections climate change and its impacts are a nuisance for rich countries and a problem for poor countries. But there is a chance that things will go horribly wrong. If you do not care about risk, the future, or other people, then you have little reason to care about climate change.”
Source: Anthoff and Tol, 2010.
Profits, costs of pollution,
Output of paper mill
Source: ESRI 2010
By 2020, Ireland will have achieved
Issues: Need to avoid double counting with successive measures
Considers technical but not behavioural changes (e.g. modal shift in transport)
Source: McKinsey 2009 for SEAI