What are the potential adverse impacts of climate change? How can society determine the amount of protection against climate change that is warranted, given the benefits and costs of various policies? In concise, informative chapters, Climate Economics and Policy considers the key issues involved in one of the most important policy debates of our time. Beginning with an overview and policy history, it explores the potential impact of climate change on a variety of domains, including water resources, agriculture, and forests. The contributors then provide assessments of policies that will affect greenhouse gas emissions, including electricity restructuring, carbon sequestration in forests, and early reduction programs. In considering both domestic and international policy options, the authors examine command and control strategies, energy efficiency opportunities, taxes, emissions trading, subsidy reform, and inducements for technological progress. Both policymakers and the general public will find this volume to be a convenient and authoritative guide to climate change risk and policy. It is a useful resource for professional education programs, and an important addition for college courses in environmental economics and environmental studies. Climate Economics and Policy is a collection of Issue Briefs, prepared by the staff of Resources for the Future (RFF) and outside experts. Many are adapted from pieces originally disseminated on Weathervane, RFF‘s acclaimed web site on global climate change.
Table of Contents
Preface Michael A. Toman 1. Climate Change Economics and Policies: An Overview Michael A. Toman Part One: Introduction 2. How the Kyoto Protocol Developed: A Brief History J. W. Anderson 3. The Energy-CO2 Connection: A Review of Trends and Challenges Joel Darmstadter 4. How Much Climate Change Is Too Much? An Economics Perspective Jason F. Shogren and Michael A. Toman Appendix A: The Costs of the Kyoto Protocol Sarah A. Cline Part Two: Impacts of Greenhouse Gas Emissions 5. Agriculture and Climate Change Pierre Crosson 6. Water Resources and Climate Change Kenneth D. Frederick 7. Forests and Climate Change Roger A. Sedjo and Brent Sohngen 8. 'Ancillary Benefits' of Greenhouse Gas Mitigation Policies Dallas Burtraw and Michael A. Toman Appendix B: Climate Change, Health Risks, and Economics Alan J. Krupnick Part Three: Policy Design and Implementation Issues 9. Choosing Price or Quantity Controls for Greenhouse Gases William A. Pizer 10. Using Emissions Trading to Regulate National Greenhouse Gas Emissions Carolyn Fischer, Suzi Kerr, and Michael A. Toman 11. Revenue Recycling and the Costs of Reducing Carbon Emissions Ian W.H. Parry 12. Confronting the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost? Lawrence H. Goulder 13. Carbon Sinks in the Post-Kyoto World Roger A. Sedjo, Brent Sohngen, and Pamela Jagger 14. Environmentally and Economically Damaging Subsidies: Concepts and Illustrations Carolyn Fischer and Michael A. Toman 15. Electricity Restructuring: Shortcut or Detour on the Road to Achieving Greenhouse Gas Reductions? Karen L. Palmer 16. The Role of Renewable Resources in U.S. Electricity Generation: Experience and Prospects Joel Darmstadter 17. Energy-Efficient Technologies and Climate Change Policies: Issues and Evidence Adam B. Jaffe, Richard G. Newell, and Robert N. Stavins 18. Climate Change Policy Choices and Technical Innovation Carolyn Fischer 19. Greenhous Gas 'Early Reduction' Programs: A Critical Appraisal Ian W.H. Parry and Michael A. Toman Appendix C: Climate Policy and the Economics of Technical Advance: Drawing on Inventive Activity Raymond J. Kopp Part Four: International Considerations 20. Policy Design for International Greenhouse Gas Control Jonathan Baert Wiener 21. Establishing and Operating the Clean Development Mechanism Michael A. Toman 22. Allocating Liability in International Greenhouse Gas Emissions Trading and the Clean Development Mechnism Suzi Kerr 23. International Equity and Climate Change Policy Marina V. Cazorla and Michael A. Toman 24. The Economics of Climate-Friendly Technology Diffusion in Developing Countries Allen Blackman 25. Including Developing Countries in Global Efforts for Greenhouse Gas Reduction Ram�n L�pez Conclusion 26. Moving Ahead with Climate Policy Michael A. Toman Glossary Index
Michael A. Toman is a senior fellow and the director of the Energy and Natural Resources division at Resources for the Future. He is the coauthor, coeditor, and editor of several books, including Pollution Abatement Strategies in Central and Eastern Europe, Assessing Surprises and Nonlinearities in Greenhouse Warming, and Technology Options for Electricity Generation.